UN Division for Sustainable Development

Case Study Detail Record

Organization type:	Government

Name of Ministry/Agency:

Country:	Lithuania

Initiative Title:	Energy Efficiency/Housing pilot project

Internet links:

Scope:

Status:	Ongoing

Timeframe:	Start: End:

Lead Institution:	Public Institution Housing Agency

Stakeholders/Partners:	Ministry of Economy Engineering-consultancy companies Ministry of Environment Association of Municipalities Central Project Management Agency Municipalities

Relevent issues:

Objectives/Challenges:

1) To develop and implement measures which have been provided for in the Lithuanian Housing Strategy and its implementation documents;
2) To take part in development and introduction of a housing monitoring system;
3) To develop and implement programmes on provision of information to the public on housing issues;
4) To promote efficient energy use in buildings;
5) To encourage homeowners to carry out housing maintenance in an organized manner;
6) To promote development of the market of housing maintenance services;
7) To improve the housing maintenance system;
8) To carry out analytical activities; and
9) To cooperate with municipalities in formation and implementation of the housing policy.

Policy Options:

The Energy Efficiency/Housing pilot project was implemented with the loan funds of the International Bank for Reconstruction and Development (IBRD) and the State funds. The Danish and Dutch Governments also provided financial assistance. Multi-apartment building owners’ associations and owners of individual houses, which take part in the project, may receive soft loans for the financing of energy efficiency measures. Project implementation and other project-related activities have been delegated to the Central Project Management Agency (former Housing and Urban Development Fund).

Any multi-apartment building owners’ association may participate in the project and receive a loan. The loan is issued for a period of 3-10 years with the annual interest rate of 11%. The loan and the interest rate are fixed for the entire loan period and may not be changed. The interest is calculated from the remaining amount of the loan. The payback of the loan may be postponed for 8 months; it may also be repaid before its expiry. To be able to receive a loan an association must have an initial installment of 10% from the value of the investment project. After the completion of the entire work, the association is granted a VAT incentive (VAT tariff of 9 % applied to services of building construction, renovation and insulation) as well as a grant up to 30%. Also, incentives for payment of the loan are offered to low-income households.

Summary:

Approximately 450 associations of owners of multi-apartment buildings made use of the opportunities provided by the project and renovated their multi-apartment buildings. The total value of the work done totalled to more than 17.4 mill. €. Project funds were used to renovate 53 educational institutions in 12 municipalities, which are attended by more than 27 thousand schoolchildren and kindergartners.

Homeowners have built new substations, windows, insulated walls and roofs of their buildings. Introduction of energy efficiency measures result in average reduction of heat by 20-30 % (in individual cases up to 50 %) as well as longer durability of houses and better living conditions.