EIB Provides €50 Million Loan to Modernise Vilnius Water Infrastructure

The European Investment Bank (EIB) has approved a €50 million loan to Lithuania's largest water utility, Vilniaus vandenys, to modernise and expand water and wastewater infrastructure across Vilnius and its surrounding region. The investment, supported by an InvestEU guarantee, will help strengthen the city's resilience to climate change, improve service quality, and advance Lithuania's transition to a sustainable and digital urban infrastructure model.

Supporting Urban Sustainability and Climate Resilience

The EIB loan will finance a wide-ranging investment programme focused on digitising, reinforcing, and expanding the capital's water supply and wastewater management systems. The initiative supports both EU environmental policy objectives and the Lithuanian government's national strategy for sustainable urban development.

Among the planned projects are:

• Upgrading the Viršuliškės water station to improve reliability and water quality.

• Expanding the network in the Gulbinai area, enabling new residential zones to connect to the central water and sewer systems.

• Reconstructing the Šalčininkai water supply station and modernising treatment facilities to ensure compliance with EU water standards.

• Constructing new wastewater pressure pipelines linking Baravyko Street to Sietyno Street, as well as a balancing reservoir, to enhance wastewater flow management and reduce overflow risks.

These upgrades are expected to boost service quality, reduce leakage and energy consumption, and minimise the environmental impact of urban wastewater discharge.

"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 Saulius Savickas, Chief Executive Officer of Vilniaus vandenys. "All these initiatives are being implemented while maintaining one of the lowest service tariffs in the country."

A Partnership for Green and Digital Transformation

The project represents a continuation of the EIB's strong partnership with Lithuania, focusing on key sectors such as clean water, sustainable transport, and digital infrastructure. With a loan maturity of 20 years, the EIB's support will serve as a cornerstone of the company's 2025–2028 investment plan, complementing Vilniaus vandenys's internal funds and additional EU programme financing.

"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 financing aligns with InvestEU policy priorities, focusing on green transition, digital innovation, and sustainable public services. It also contributes to the implementation of EU directives on water quality, wastewater treatment, and environmental protection.

Smart City Solutions and Digitalisation

A significant share of the loan — around half of the total funding — will be dedicated to smart city technologies and digital infrastructure. These investments will include advanced monitoring systems, automated leak detection, and data-driven network management, improving operational efficiency and transparency.

"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," explained Simonas Klimavičius, Head of Finance at Vilniaus vandenys. "Around half of the loan will be allocated to smart city solutions, allowing us to enhance both service reliability and environmental performance."

Through digitalisation, Vilniaus vandenys aims to transform how water systems are managed — enabling real-time performance tracking, reducing maintenance costs, and cutting carbon emissions linked to energy use in pumping and treatment.

Advancing Lithuania's Green Future

The EIB's investment aligns with Lithuania's National Energy and Climate Plan (NECP), which prioritises sustainable infrastructure and the green transition. By upgrading water management systems, Vilnius will be better equipped to respond to climate-induced risks, including extreme weather events, droughts, and water contamination.

The financing also supports Lithuania's efforts to meet the goals of the EU Green Deal, particularly those related to clean water access, pollution prevention, and resource efficiency. The project will contribute to reducing greenhouse gas emissions in urban operations and promoting renewable energy use in treatment processes.

"Investments like these demonstrate how local utilities can become drivers of climate action and digital innovation," said Nehammer. "They help bridge the gap between EU sustainability goals and local implementation."

EIB and InvestEU: Empowering European Regions

The European Investment Bank plays a pivotal role as the EU's climate and development bank, channelling financial resources into sustainable infrastructure projects across Europe. Through the InvestEU programme, the EIB provides guarantees that mobilise private and public investment for projects with long-term social and environmental benefits.

In recent years, EIB-supported initiatives in Lithuania have included financing for renewable energy, urban transport, and digital connectivity, demonstrating a strong focus on sustainability and innovation.

This latest loan to Vilniaus vandenys reinforces the EIB's commitment to strengthening essential services while fostering environmental responsibility and technological transformation.

Looking Ahead

The modernisation programme is expected to be completed by 2028, marking a major step forward in Vilnius's transformation into a resilient, sustainable, and smart city. By combining EIB financing with local and EU resources, Vilniaus vandenys aims to ensure that water and wastewater systems remain efficient, environmentally friendly, and accessible for generations to come.

As climate pressures grow, such strategic investments not only protect critical infrastructure but also serve as models for integrated, forward-looking urban development across Europe.