NIB and EBRD finance greener public transport in Vilnius

NIB and the European Bank for Reconstruction and Development (EBRD) are supporting the roll-out of greener public transport in the city of Vilnius by lending EUR 40 million each to Vilniaus Viešasis Transportas (VVT), the city’s urban transport company.

The co-investment will enable VVT to purchase up to 73 additional electric trolleybuses and up to 85 battery electric buses, supporting further expansion of the city’s modern electric fleet with zero-tailpipe-emissions, and enhancing the quality, reliability and accessibility of public transport services in Lithuania’s capital.

The new trolleybuses will be purchased in 2025. They will have lower noise levels and will be equipped with climate control systems. Unlike their predecessors, the new fleet will have low floors, which will substantially increase accessibility for people with mobility restrictions and passengers with children.

“Securing this financing is an important step in implementing the planned strategy for renewing the company-managed vehicle fleet,” says Ignas Degutis, Director General of VVT. “We plan to have a fully renewed trolleybus fleet by the end of 2026. So in two years’ time, we will be able to provide comfortable, convenient and safe trolleybus journeys for citizens and visitors of the capital.”

As the next step, the company plans to continue the procedures required for the acquisition of new buses. By replacing the ageing diesel buses with a new electric fleet, VVT expects to reduce the associated greenhouse gas emissions by 6,000 tonnes of CO2e annually.

“Transport remains one of the main emitters in Lithuania, and it is important to accelerate its green transition,” said Vilnius Girkontas, Senior Banker and Country Lead for Lithuania at NIB. “The investments will not only support VVT’s shift to renewable energy and reduce their maintenance costs but will also make the journeys of Vilnius commuters much more comfortable.”

“We’re pleased to deepen our partnership with the city of Vilnius, the first EBRD Green City in the Baltic States, as it leads the way in sustainable urban development. This is our second investment with VVT, and it plays a key role in helping the city achieve its climate and sustainability goals outlined in its Green City Action Plan. By expanding its green public transport network, the city will reduce emissions, and create a cleaner, more liveable urban environment for its residents,” says Sue Barrett, Director, Head of Infrastructure for EMEA at EBRD.

VVT plans to phase out the operation of diesel buses and transition to zero emissions buses by 2030. By that time, the company aims to eliminate CO2 emissions from its fleet entirely and solely rely on renewable energy.

VVT is a Vilnius-city-owned public transport service provider. It was established in 2011 by merging the bus operator and trolleybus operator into a single entity. The company carries approximately 500,000 passengers daily.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has been operating in Lithuania since 1994, providing approximately EUR 1.8 billion in financing to more than 115 projects in the country. Read more about NIB in Lithuania.

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well governed, green, resilient and integrated. The EBRD is a leading institutional investor in Lithuania, with EUR 1.7 billion invested in 136 projects there to date.

For further information, please contact:

NIB:
Vytautas Brazaitis, at +358 10 618 0235, Vytautas.Brazaitis@nib.int

EBRD:
Nigina Mirbabaeva, mirbaban@ebrd.com