ANNOUNCEMENT 07 Dec 2016

On 07 December 2016, the EIB provided financing worth EUR 190 million (USD 200 million).

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 07 Dec 2016 | Removal date: open ended

Loan guarantee

The EIBs EUR 190 million (approx. USD 200 million) loan with Lietuvos Energija Uab signed on 07 December 2016 was backed by a guarantee from the European Fund for Strategic Investments (EFSI).

The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe, acting as the main pillar of the Investment Plan for Europe. It provides first-loss guarantees enabling the EIB to invest in more and often riskier projects. The loan described above was issued under the EFSI and thus benefits from a full guarantee through the EU budget.

EFSI support does not fall under EU State Aid rules as it is meant as a tool to address 'market failures or sub-optimal investment situations'. However, the investment support does include favourable conditions in the form of public assumption of risk.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 07 Dec 2016 | Removal date: open ended

State loan

On 07 December 2016, the European Investment Bank (EIB) and Lietuvos Energija Uab signed an agreement worth EUR 190 million (approx. USD 200 million) for the project Lietuvos Energija Vilnius Chp Project from Lithuania.

According to the project description issued by the EIB, Construction of two biomass-fired and waste-to-energy-fired CHP plants with total capacity of 88 MWe and 227 MWth supplying electricity to the national grid and heat to the district heating system in Vilnius..

The objective of the project is defined as following: The project will ensure a reliable heat supply to the district heating network, improve the security of supply in electricity in Lithuania, increase the competition on the Lithuanian electricity market and, thanks to the use of renewable fuel and waste, increase the diversification of the power sector. The project is eligible under Article 309 point (a) projects for developing less-developed regions, since Lithuania meets the criteria; and point (c) common interest of the Treaty on the Functioning of the European Union..

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

 
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