Lithuania: Vilnius to upgrade water services and boost climate resilience with €50 million EIB loan to utility Vilniaus vandenys

This article is published in association with European Investment Bank.

• EIB lends Lithuanian utility Vilniaus vandenys €50 million to upgrade water and wastewater networks in Vilnius region.
• Smart meters and digital tools to improve services and reduce water losses.
• EU-backed project aligned with European climate and environmental goals.

The European Investment Bank (EIB) is lending Lithuanian water utility Vilniaus vandenys €50 million to bolster infrastructure in the capital Vilnius. The company will use the EIB loan to upgrade water and wastewater operations by digitising, reinforcing and expanding them.

Planned works include an upgrade of the Viršuliškės water station, the expansion of infrastructure in the Gulbinai area and the reconstruction of the Šalčininkai water supply station and treatment facilities. The wastewater network will be enhanced through the construction of pressure pipelines from Baravyko Street to Sietyno Street and a balancing reservoir, improving services and environmental protection across the Vilnius region.

The project, which advances the urban-resilience goals of Vilniaus vandenys and of the European Union, is due to be completed by 2028.

“We continue to invest in reliable infrastructure that ensures a consistently high level of service both in the capital and in the regions while preparing for future challenges – from climate change to rising water demand,” said Vilniaus vandenysChief Executive Officer Saulius Savickas. “All these initiatives are being implemented while maintaining one of the lowest service tariffs in the country.” The EIB financing is backed by an InvestEU guarantee, which supports sustainable investment across the EU.

“Modern water infrastructure is essential for public health, environmental protection and climate resilience,” said EIB Vice-President Karl Nehammer. “This loan builds on the EIB’s longstanding partnership with Lithuania, where we continue to support strategic investments in clean water, sustainable transport and digital infrastructure. We are proud to back Vilniaus vandenys as it invests in smart technologies and renewable energy to modernise water and wastewater services – delivering tangible benefits to communities and helping Lithuania build a greener, more resilient future.”  

The EIB loan aligns with key InvestEU policy objectives, advancing EU priorities and directing funds where they are most needed. The project also facilitates the implementation of EU water and environmental legislation.

The EIB loan, which has a maturity of 20 years, will form a significant part of Vilniaus vandenys’s financing mix, alongside its own funds, support from EU programmes.

“The planned investments require significant funding and will allow new neighbourhoods to connect, ensure reliable supply of high-quality water, improve wastewater management, and reduce environmental impact,” said Simonas Klimavičius, head of finance at Vilniaus vandenys. “Around half of the loan will be allocated to smart city solutions.”

Background information

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. We finance investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. The EIB Group’s financing in Lithuania last year amounted to €449 million, spurring business investments and accelerating the country’s green transition.

All projects financed by the EIB Group are aligned with the Paris Climate Agreement, as set out in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects that contribute directly to climate change mitigation, adaptation, and a healthier environment.   

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About Vilniaus vandenys

Vilniaus vandenys supplies drinking water and treats wastewater for over 600,000 residents in Vilnius and the Vilnius, Švenčionys, and Šalčininkai districts. The company’s shareholders are the municipalities of Vilnius City (87,05%), Vilnius District (5.10%), Švenčionys District (5.98%), and Šalčininkai District (1.87%). Every day, 99,000 cubic meters of drinking water are supplied – about a quarter of Lithuania’s total drinking water consumption – and 116,000 cubic meters of wastewater are treated, accounting for almost one-third of all wastewater treated in the country.

Over the past two years, Vilniaus vandenys has invested over €76 million in improving service quality, supply reliability, and environmental protection. The largest portion of these investments was allocated to the reconstruction of the Vilnius wastewater treatment plant and the smart water supply project.