Repayable assistance.
State owned public buildings renovation
2016 12 06
Repayable assistance.
State owned public buildings renovation
The Ministry of Energy is the institution which sets the rules which projects should be
financed; who are the final beneficiaries, what are the main criteria for the selection of
projects and etc.
VIPA is the national financial institution, which acts as the implementing body.
Support is provided to renovate state owned public buildings, which have D or a
lower energy efficiency class and which are managed by budgetary institutions or
other public bodies. These institutions and bodies will implement energy efficiency
projects aimed at energy savings and at least energy efficiency class C.
The reason of choosing this form of financing- according to national law of Lithuania,
budgetary institutions cannot borrow, so, subsequently, they cannot use any of the
financial instruments and repayable assistance is an option for them.
REPAYABLE ASSISTANCE. SCHEME
At least 30 %
of allocated
funds
PRELIMINARY
PRELIMINARY
The source for the repayments would be the energy savings. (Allocated funds should
be partially payed back)
After submission of the final payment claim the intermediary body and the beneficiary
agree on a schedule for the repayments.
The size of the repayments
=
energy savings (kwh)
x
annual average price of heating/electricity/ hot water
Energy savings (generated from the operation) could be treated as net revenues> we are following CPR 61.1->reducing annual budget appropriations for utilities
for the operators after project implementation by the amount of energy savings.
The payback period of the investment for renovation of a building is 20 years.
After project implementation VIPA will control and assure individually for
each project that annual operating subsidies that each manager of a
renovated building gets are reduced by the size of annual operating cost
savings generated by the operation (Article 61 (1) CPR „Operating costsavings generated by the operation shall be treated as net revenue unless
they are offset by an equal reduction in operating subsidies“).
The investments repaid by the beneficiary become the ownership of
Lithuania provided the amounts repaid are going to be reused for the
same purposes.
Q&A
???
THANK YOU FOR ATENTTION!