Vilniaus vandenys Secures EIB Loan to Modernize Water and Wastewater Networks Across the Vilnius Region

Vilniaus vandenys Secures EIB Loan to Modernize Water and Wastewater Networks Across the Vilnius Region

(IN BRIEF) The European Investment Bank (EIB) is providing a €50 million loan to Vilniaus vandenys, Lithuania’s largest water utility, to upgrade and expand water and wastewater infrastructure in the Vilnius region. The project includes station upgrades, network extensions, and smart digital technologies to enhance service quality, sustainability, and climate resilience. Supported by an InvestEU guarantee, the financing aligns with EU environmental goals and water legislation. EIB Vice-President Karl Nehammer and Vilniaus vandenys CEO Saulius Savickas both highlighted the project’s importance in delivering reliable, sustainable water services while maintaining low tariffs. Completion is scheduled for 2028.

(PRESS RELEASE) LUXEMBOURG, 16-Oct-2025 — /EuropaWire/ — The European Investment Bank (EIB) has announced a €50 million loan to Lithuanian utility company Vilniaus vandenys to enhance water and wastewater systems across the Vilnius region. This investment aims to modernize the capital’s essential infrastructure through digital transformation, expansion, and improved efficiency, reinforcing the city’s long-term resilience and environmental sustainability.

The funds will be used to upgrade the Viršuliškės water station, expand the network in the Gulbinai area, and reconstruct the Šalčininkai water supply and treatment facilities. Additionally, the wastewater network will benefit from new pressure pipelines between Baravyko Street and Sietyno Street, alongside a new balancing reservoir, to improve operational reliability and environmental protection. The project is expected to be completed by 2028.

Vilniaus vandenys Chief Executive Officer Saulius Savickas emphasized that these upgrades are crucial to maintaining reliable, high-quality services while addressing challenges like climate change and increasing demand. “We continue to invest in infrastructure that not only ensures consistent service but also prepares us for the future — all while maintaining some of the lowest tariffs in Lithuania,” he noted. The EIB financing is backed by an InvestEU guarantee, designed to promote sustainable investments throughout the European Union.

EIB Vice-President Karl Nehammer underlined the broader significance of the project, highlighting that modern water infrastructure is vital for public health, environmental protection, and climate adaptation. “This partnership strengthens our commitment to Lithuania’s sustainable development, supporting strategic investments in clean water, digital infrastructure, and renewable energy,” he said. “By helping Vilniaus vandenys modernize its operations with smart technologies, we’re contributing to a greener, more resilient Lithuania.”

The 20-year loan complements Vilniaus vandenys’s own capital and additional support from EU programs. According to Simonas Klimavičius, the company’s head of finance, about half of the loan will fund smart city solutions, supporting digital monitoring systems and reducing water losses. These investments are expected to improve water quality, expand access for new neighborhoods, and further align with EU water and environmental objectives.

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. We finance investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. The EIB Group’s financing in Lithuania last year amounted to €449 million, spurring business investments and accelerating the country’s green transition.

All projects financed by the EIB Group are aligned with the Paris Climate Agreement, as set out in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects that contribute directly to climate change mitigation, adaptation, and a healthier environment.

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About Vilniaus vandenys

Vilniaus vandenys supplies drinking water and treats wastewater for over 600,000 residents in Vilnius and the Vilnius, Švenčionys, and Šalčininkai districts. The company’s shareholders are the municipalities of Vilnius City (87,05%), Vilnius District (5.10%), Švenčionys District (5.98%), and Šalčininkai District (1.87%). Every day, 99,000 cubic meters of drinking water are supplied – about a quarter of Lithuania’s total drinking water consumption – and 116,000 cubic meters of wastewater are treated, accounting for almost one-third of all wastewater treated in the country.

Over the past two years, Vilniaus vandenys has invested over €76 million in improving service quality, supply reliability, and environmental protection. The largest portion of these investments was allocated to the reconstruction of the Vilnius wastewater treatment plant and the smart water supply project.

Media contact:
Kristiina Randmaa
k.randmaa@ext.eib.org
+352 4379 – 72894

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank