EBRD considers financing Vilnius street lighting PPP project
- Den Norske Bank
- European Bank for Reconstruction and Development (EBRD)
- Nordic Investment Bank (NIB)
The EBRD is considering extending a loan of up to €8.0 million to the Vilnius street lighting renovation PPP project in Lithuania.
The principal investment will comprise the replacement of existing street, pedestrian crossing and tunnel light fixtures with new light emitting diodes (LED) and the implementation of a new remote control and adjustment system.
In early April, the consortium formed by Gemmo SpA (Italy) and VSLS UAB (Estonia) was selected as the preferred bidder and in early May the team and the Vilnius City Municipality Council signed the project. The consortium was the only final bidder. France's Citelum and Austria's Strabag AG were the two other companies that initially bid for the project.
The total project investment will be €26.52 million (US$34.8 million) and is intended to be co-financed with an equity contribution from the sponsor consortium and co-financing from the Nordic Investment Bank and Den Norske Bank. Potential technical co-operation support is not included in this estimate.
The contract is for a period of 18 years plus 2 years to renovate the lighting network. The project will be developed on a design, build, finance, operate, and transfer (DBFOT) basis.
- Renovate Vilnius city lighting in a most economically effective way
- Improve Vilnius illumination
- Reduce energy consumption (by up to 50 per cent)
- Save budgetary expenses for the street lighting
- Improve lighting management to enable distant real-time controls
- Reduce number of crimes committed at night
- Reduce CO2 emissions
- Ensure quality and prompt maintenance of the lighting system
- Ensure quality lighting of Vilnius streets and public spaces
Economic LED lamps will replace the current sodium lamps across the city, over an installation period of two years. There are up to 44,000 lights in Vilnius, which were last upgraded in 1997-2000 and are reaching the end of their life.