Guarantees for street lighting
What are the benefits?
By granting a guarantee, INVEGA undertakes to reimburse the creditor and/or the financier for the borrower’s outstanding obligations under the loan agreement granted to finance the urban street lighting modernisation project.
Who can apply?
The financial instrument is open to municipalities, municipal companies or other legal entities controlled by the municipality implementing projects for the modernisation of the urban street lighting system. These projects must achieve power savings of at least 40%.
- There is a description of the procedure for providing guarantees for the modernisation of urban street lighting systems.
- The Order on amending the Description of the procedure for providing guarantees for the modernisation of urban street lighting systems (replaces point 37 on the payback period for investments).
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Before submitting an application, the applicant must have correctly prepared an inventory of the property and details of an investment project. The approval of the responsible management body (municipal council) is mandatory for the investment project and the method of implementation of the project. |
The correctly completed application form along with all the required documents, together with a cover letter and an electronic version on a storage medium, must be submitted to INVEGA.
Documentation to be submitted:
- application form for the granting of a guarantee for a project for the modernisation of the urban street lighting system (completed by the applicant);
- application form for a guarantee from UAB Viešųjų investicijų plėtros agentūra financed by the Energy Efficiency Fund (completed by the creditor);
- a guarantee agreement for the granting of a guarantee for a project for the modernisation of the urban street lighting system (guarantee agreement when municipalities borrow directly);
- a guarantee agreement for the granting of a guarantee for a project for the modernisation of the urban street lighting system (guarantee agreement with a private partner);
- table of data and expected results of the project.
- National Energy Independence Strategy approved by Resolution No XI-2133 of the Seimas of the Republic of Lithuania of 26 June 2012 ‘On the Approval of the National Energy Independence Strategy’;
- National Progress Programme 2014–2020, approved by Resolution No 1482 of the Government of the Republic of Lithuania of 28 November 2012 ‘On the Adoption of the National Progress Programme 2014–2020’;
- Energy Efficiency Action Plan, approved by Order No 1-149 of the Minister of Energy of the Republic of Lithuania of 30 May 2014 ‘On the Adoption of the Energy Efficiency Action Plan’;
- Rules for the Administration of the Operational Programme for the Investment of European Union Funds 2014–2020, approved by Resolution No 1090 of the Government of the Republic of Lithuania of 3 October 2014 ‘On the Rules for the Administration of the Operational Programme for the Investment of European Union Funds 2014–2020’;
- Rules for the implementation of financial instruments, approved by Order No 1K-326 of the Minister of Finance of the Republic of Lithuania of 16 October 2014 ‘On the Adoption of the Rules for the Implementation of Financial Instruments’;
- Description of the Calculation of the Indicators for the Monitoring of the Operational Programme for the Investment of European Union Funds 2014–2020, Approved by Order No 1K-499 of the Minister of Finance of the Republic of Lithuania of 30 December 2014 ‘On the Adoption of the Description of the Calculation of the Monitoring Indicators for the Operational Programme for the Investment of European Union Funds 2014–2020’;
- Law of the Republic of Lithuania on Energy Efficiency Improvement.
| Date of submission of the application | Status | Project under implementation (city name) | Applicant |
| 12 August 2020 | Guarantee proposed | Kalvarija | Kalvarija Municipal Administration |
| 5 August 2020 | Signed A | Šiauliai | UAB Šiaulių gatvių apšvietimas |
| 15 January 2020 | Signed A | Širvintos | Širvintos District Municipal Administration |
| 30 November 2016 | Commitment expired | Telšiai | Telšiai District Municipal Administration |
| 20 October 2015 | Signed A | Jonava | Jonava District Municipality Administration |
How does it work?
A tripartite agreement of 18 February 2015 between the Ministries of Finance, Energy and VIPA established the Energy Efficiency Fund (ENEF), financed by the European Regional Development Fund, with VIPA acting as the fund manager.
On 26 July 2018, a new Description of the Procedure for the Provision of Guarantees for the Modernisation of Urban Street Lighting Systems (hereafter ‘the Description’) was approved, which regulates the conditions for the provision of guarantees and requirements for projects for the modernisation of urban street lighting systems.
Municipalities wishing to benefit from the guarantee can implement the projects themselves as well as through electricity system commercial operators (ESCOs). By granting a guarantee, VIPA undertakes to reimburse the creditor and/or the financier for the borrower’s outstanding obligations under the loan agreement granted to finance the urban street lighting modernisation project.
