Brussels, 16/06/2009 (Agence Europe) - The European Investment Bank (EIB), the Ministry of Finance and the Ministry of Environment of the Republic of Lithuania have signed an agreement enhancing co-operation in financing sustainable urban development.
The agreement is under the joint European Commission and EIB initiative, supported by the Council of Europe Development Bank, Joint European Support for Sustainable Investment in City Areas (JESSICA). The agreement provides for the establishment of a special JESSICA Holding Fund. The initial capital of the fund will amount to €227 million. This consists of an allocation from the European Regional Development Fund (ERDF) and a budgetary contribution from Lithuania, financed through an EIB loan. This is the largest JESSICA Holding Fund set up so far and the first one focused on energy efficiency for urban areas investments.
The fund will provide financing for energy efficiency projects in the housing sector through the Lithuanian banks. Promoters, and owners, of multi-apartment buildings will receive soft loans with promotional interest rates and long maturities. The fund will therefore contribute to reduce energy consumption and achieve other associated goals, such as reduction of emissions and improvement of quality of life.
JESSICA seeks to promote sustainable investment and growth in urban areas. It enables EU member states and their regions to use some of their EU Structural Fund allocations to make repayable investments in projects which are part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds. In Lithuania, it will be via the funds established in the participating banks. (O.L./transl.rt)