(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 16. The European Investment Bank (EIB) is providing a 50 million euros loan to Lithuania's largest water utility, Vilniaus vandenys, to strengthen and modernize water and wastewater infrastructure in Vilnius, Trend reports.

The financing will support the company's plans to upgrade, digitize, and expand its water management systems, ensuring greater efficiency and resilience for residents and businesses.

The project includes upgrades to the Viršuliškės water station, expansion of infrastructure in the Gulbinai area, and reconstruction of the Šalčininkai water supply station and treatment facilities. In addition, improvements to the wastewater network will involve the construction of new pressure pipelines from Baravyko Street to Sietyno Street and the installation of a balancing reservoir, measures expected to enhance water services and bolster environmental protection across the Vilnius region.

The initiative, aligned with the urban-resilience goals of both Vilniaus vandenys and the European Union, is scheduled for completion 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. All these initiatives are being implemented while maintaining one of the lowest service tariffs in the country,” said Vilniaus vandenys Chief Executive Officer Saulius Savickas.

The EIB financing is supported by an InvestEU guarantee, which promotes sustainable investment across the European Union.

“Modern water infrastructure is essential for public health, environmental protection, and climate resilience. 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 modernize services and help build a greener, more resilient future,” said EIB Vice-President Karl Nehammer.

The EIB loan aligns with key InvestEU policy objectives, advancing EU priorities and supporting the implementation of water and environmental legislation.

With a 20-year maturity, the financing will represent a substantial part of Vilniaus vandenys' overall investment portfolio, complemented by the company's own funds and additional EU program support.

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

The EIB's investment marks another step in Lithuania's broader effort to enhance sustainable infrastructure and strengthen climate resilience through modern, digitalized water management systems.

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