Early Warning System

Regions

Europe and Central Asia

Geographic location where the impacts of the investment may be experienced.

Countries

Lithuania

Geographic location where the impacts of the investment may be experienced.

Specific Location

Vilnius

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Mar 22, 2023

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Vilniaus Viesasis Transportas

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Transport

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Loan Amount (USD)

$ 52.33 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 97.62 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 90
Converted using 2023-01-13 exchange rate.

Primary Source

Original disclosure @ EBRD website

Updated in EWS Jan 14, 2023

Disclosed by Bank Jan 13, 2023

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The project includes the provision of a secured loan of up to EUR 38.23 million to Vilniaus Viesasis Transportas ("VVT"), the municipally-owned transport company of the City of Vilnius. The proceeds of the loan will be used to finance the purchase of battery / electricity powered trolleybuses to renew part of VVT's ageing fleet of 159 trolleybuses. With the Project serving as the City's "trigger" investment to become a Green City as part of the Green Cities Framework 2 - Extension 2, EBRD will support the City to develop a Green City Action Plan ("GCAP"), through which the City will identify and prioritise its most pressing environmental challenges, and develop targeted investment and policy actions to address them.

PROJECT OBJECTIVES

By improving the quality and reliability of trolleybuses, the Project is expected to improve the attractiveness and increase the ridership of Vilnius' public transport, and therefore to encourage a modal shift towards low-emission, electric transport modes. The Project is expected to result in reduced emissions and enhanced energy efficiency.

The Project is part of a broader City programme to achieve sustainable mobility in Vilnius, which aims to make public transport the backbone of transport in Vilnius by ensuring quick and safe transport within the city and by increasing connectivity between the city and peripheral areas through public transport service.

TRANSITION IMPACT

ETI score: 70

The Project is in line with the Green Cities Framework 2 ("GrCF2" or "Framework"), a strategic and multi-project approach framework targeting environmental issues in selected large cities in the Bank's countries of operation. The Transition Impact of the Project will therefore be derived from:

1) Green quality

The Project will enable VVT to purchase new battery / electricity-powered trolleybuses (with zero tailpipe emissions), replacing its ageing fleet. Modernization of VVT's fleet will improve the attractiveness of public transport, and promote a modal shift towards cleaner transportation and away from personal vehicles. The Project will also entail the development of a GCAP for the City of Vilnius, which will identify and address priority environmental challenges for the City.

CLIENT INFORMATION

VILNIAUS VIESASIS TRANSPORTAS JSC

Vilniaus Viesasis Transportas ("VVT") is the public transport operator of the City of Vilnius, 100% owned by the City.

EBRD FINANCE SUMMARY

EUR 48,250,000.00

A secured senior loan of up to EUR 38.23 million lent to VVT. EBRD will seek to mobilise a concessional loan from Taiwan ICDF to finance up to 20% of the loan amount.

TOTAL PROJECT COST

EUR 90,000,000.00

Total project cost is EUR 90 million. On top of EBRD financing, VVT will benefit from a EUR 10 million national grant.

ADDITIONALITY

Financing structure: EBRD offers longer term financing that is not available in the market from commercial sources on reasonable terms and conditions while also funding the gap (without crowding out other sources or by complementing them).

ENVIRONMENTAL AND SOCIAL SUMMARY

Categorised B (2019 ESP) and Low-Medium risk. The Borrower is a new Client of the Bank. The Project aims to achieve sustainable mobility in Vilnius and the E&S impacts, which will be associated with the purchase of battery / electricity-powered trolleybuses to renew the Borrower's ageing fleet of 159 trolleybuses are expected to be limited and mainly positive. Key E&S impacts/risks to consider include electric and traffic safety; labour and GBVH; fleet management; management of COVID-19 related risks for staff and passengers. Environmental and social due diligence ("ESDD") will be undertaken by ESD initially and depending on the findings an independent consultant may be required. ESDD will focus on the key E&S impacts/risks and the Company's capacity to implement the project in line with the EBRD's Performance Requirements (PRs), with specific attention to labour practices, road safety and driver training.

Opportunities to enhance gender and inclusion, safety of vulnerable groups and also prevention of GBVH concerns, along with stakeholder engagement and current grievance mechanisms will be investigated. ESDD will also assess the Company's capacity to manage supply chain risks associated with the use of nickel /cobalt-based technologies in battery / electricity powered trolleybuses and charging stations. Post-signing Technical Cooperation (TC) support may be necessary for the Environmental and Social Action Plan (ESAP) implementation and capacity support.

TECHNICAL COOPERATION AND GRANT FINANCING

Green City Action Plan: support to the City for the development of a GCAP to prioritise the City's most pressing environmental challenges and to define the investments and policy actions to address them.

COMPANY CONTACT INFORMATION

Rymvydas Totoraitisrimvydas.totoraitis@vilniausvt.lt+370 (85) 2394 783www.vilniausviesasistransportas.ltUAB "Vilniaus viesasis transportas"
Zolyno g. 15, 10209 Vilnius

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Rymvydas Totoraitis
rimvydas.totoraitis@vilniausvt.lt
+370 (85) 2394 783
www.vilniausviesasistransportas.lt
UAB "Vilniaus viesasis transportas" Zolyno g. 15, 10209 Vilnius

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html