Loans to public buildings of central government

Potential applicants

These are entities managing the public building(s) owned by the state by the right of ownership, except state enterprises and/or the manager of centrally managed state assets by the right of trust or loan for use.

Type and rate of interest

Loans are subject to a variable rate of up to 2% + 6 months EURIBOR (at least 0%), but a total interest rate of no more than 2%.

Loan term

The term is up to 20 years.

Subsidy for technical documentation

Preparation of technical documentation directly related to the renovation of the central government building by implementing the measures referred to in points 1–13 of Annex 2 to the Programme for Improving the Energy Efficiency of Public Buildings. This includes an energy consumption audit, technical design preparation and technical design expert examination costs, which in total may not exceed EUR 14 per square metre of the building area managed by the applicant. The funds under the agreement shall be disbursed only in cases where they have been incurred but not paid. Costs shall be paid only on a contractual basis to the service providers (salary costs are not eligible).

Eligible costs

Energy efficiency improvement actions/measures for the renovation of public buildings specified in Annex 2 of the Programme for improving the energy efficiency of public buildings. (This includes remedial and other contractual works which are necessary to be carried out in accordance with the applicable technical building regulations and other legislation for the implementation of these measures.) It includes restoring or improving the physical and energy performance of the building and/or its engineering systems and/or improving energy efficiency and achieving an energy performance class C or better for the building. VAT is an eligible cost if, in accordance with the laws of the Republic of Lithuania or other legislation applicable to the borrower’s activities, the Borrower is not entitled to deduct VAT. Costs shall be paid only under contracts to the service providers (salary costs are not eligible).

Project implementation period

Up to 24 months from the date of signing the loan agreement (where justified, the period of implementation of the project may be extended by 12 months).

Loan amount

This is up to 100% of the amount of eligible costs when the Borrower is not an ESCO; up to 80% of the amount of eligible costs when the Borrower is an ESCO.

Requirements for projects

The project must comply with the provisions of the National Energy Independence Strategy and the provisions of the Programme for Improving the Energy Efficiency of Public Buildings:

– The energy performance class of the building must be D or lower.

– The energy performance class of the building is not less than C.

– The building is intended to be used for its intended purpose for at least 10 years, as well as for the entire project payback period, but not less than 10 years to plan and allocate the necessary amount of funds for the heating and/or cooling of the building, operation, ensuring the maintenance of the building and paying for the project investments.

– The aim is to reduce energy consumption in the building by at least 30%. Under certain circumstances, funding shall not be granted for a public building of the central government for which the application for funding is submitted after 18 May 2018. This applies if a conclusion on the socio-economic benefits of a project implemented using the ESCO model by the Public Institution Central Project Management Agency (CPMA) has not been submitted and/or the conclusion is negative (documents submitted to the CPMA by VIPA).

Administration fees

There are no fees for signing the agreement, disbursing the loan, repaying the loan early or any other fees related to the administration of the loan.

Deferment of loan repayment

Repayment of the loan and interest may be deferred for the duration of the project, up to a maximum of 24 months.

Loan repayment

The borrower repays the loan and pays interest to the Financier. The loan or part thereof can be repaid early without additional fees.

Default interest

This is 0.02% of the overdue instalment for each day of delay.

Mortgage of property

There is no mortgage on immovable property. Other security measures may be used/provided for (e.g. surety and/or guarantees and/or account pledge/minimum account balance guarantee/insurance).