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Experience of Lithuania in housing refurbishment Švitrigailos str. 7 / A. Vivulskio str. 16, LT-03110 Vilnius Telephone +370 5 262 98 53

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Presentation on theme: "Experience of Lithuania in housing refurbishment Švitrigailos str. 7 / A. Vivulskio str. 16, LT-03110 Vilnius Telephone +370 5 262 98 53"— Presentation transcript:

1 Experience of Lithuania in housing refurbishment Švitrigailos str. 7 / A. Vivulskio str. 16, LT Vilnius Telephone Simona Iržikevičiūtė Housing and Urban Development Agency March, 2012

2 population <3,19 mln.; > 66 % of population lives in multi-apartment buildings built ; 97 % private ownership, 3% social housing; Urban inhabitantsRural inhabitantsYear 14,5%85,50% %77% %85% ,7%33,3%2007 © Department of Statistics to the Government of the Republic of Lithuania (Statistics Lithuania), Background

3 Period (years) (%) before before 1940 – multi-apartment building – multi-apartment buildings – multi-apartment buildings In total: before 1993 there were built multi-apartment buildings Between 1951 to 1991 there were 69% of the total available floor space built. PeriodYearsDescription I1900 – 1918In the first two periods houses were built in bricks and wooden beams. II1918 – 1940 III1941 – 1960In the third period there were only brick houses. IV1961 – 1990The fourth period is characterised by mass industrial production of multi-apartment buildings homes with panel elements. The period marks the time when there was particularly rapid urbanisation process, urban growth industry, increase in urban population. V1991 – 2001The last period – multi-apartment building construction numbness, economic stagnation, a significant decrease in volumes.

4 Eil. Nr. Name of the construction materialsTrukmė metais 1Concrete and reinforced concrete foundations125 2Prefabricated concrete walls125 3Prefabricated reinforced concrete floor/ceiling125 4Windows and doors in wooden frames40 5Indoor wooden doors50 6Wooden flooring40 7Linoleum flooring20 8Ceramic tile flooring80 9Roof covering with 2-3 layer ruberoid10 The joint sealing8 11Façade paint finish6 12Façade plaster50 13Cold water galvanized piping30 14Hot water galvanized piping15 Service pipelines20 Background

5 Typical project Vilnius, Kaunas, /66Tauragė, Panevėžys, Jonava, Kaunas, Typical project 1-117

6 Typical project Kaunas, 1-464LI-51/1Tauragė, 1-464LI-A53Druskininkai, 1-464A Š -17LT Typical project 120 Vilnius, B-06/1Vilnius, B-14/1Vilnius, B-13/1

7 Lithuanian housing strategy Main goals are: Expand housing options for all social groups Strengthen the capacity of the housing sector in the housing market Ensure effective use of existing housing, maintenance, upgrading and modernization, including the rational use of energy resources Approved in 2004 by Lithuanian Government English version available on the internet site

8 Housing and Urban Development Agency Apartment owners Housing administration companies European Investment Bank (EIB) Municipalities Commercial banks (3 selected banks) Engineering consultant companies Contractors Etc. Participants

9 Attempts to launch modernisation of apartment blocks in early 90s were rejected World Bank Project in Subsidised renovation programme launched in 2006, Programme ran out of money in late 2007 Decision to launch a win-win scheme using JESSICA in early 2009 Attempts to modernise Multi-apartment buildings

10 Modernisation of Multi-apartment buildings is funded: State budget support (via Programme for Modernisation of Multi-Apartment Houses, via Climate Change Special Programme); JESSICA instrument (Joint European Support for Sustainable Investment in City Areas) (via Programme for Modernisation of Multi- Apartment Houses); EU Structural Funds support (several OP).

11 Results of the subsidised renovation programme launched in 2005 > 450 finished projects < 40 ongoing projects

12 JESSICA holding fund The contribution invested into the JESSICA Holding Fund is EUR 227 mln. (784 mln. Lt) and it consists of: - European Regional Development fund (EUR 127 mln.) - National funding (EUR 100 mln.) EIB has to date distributed to UDFs: ,00 to Šiauliu bankas (2010); ,00 to Swed bank (2011); ,00 to SEB bank (2012); ,00 to Šiauliai bank II JESSICA Call 2011; ,00 undergoing III JESSICA Call 2012.

13 Vilnius – – 13 Process. Approved legal acts The Law on the State support for the acquisition or rent of housing and for the modernization of multi family buildings of the Republic of Lithuania (latest amendment January, 2012 ); Resolution No of the Government of the Republic of Lithuania regarding the Approval of the Program for the refurbishment (modernisation) of multi- apartment buildings (latest amendment December, 2011); The Rules of State support for the refurbishment (modernization) of multi- apartment buildings, approved by the Government of the Republic of Lithuania (latest amendment December, 2011) The Description of the procedure for the preparation of modernisation projects for multi family buildings, approved by Minister of Environment of the Republic of Lithuania (latest amendment November, 2011) The description of the procedure for payment of credit and interest taken for the renovation (modernization) of multi family buildings for low income families, approved by the Minister of Environment and the Minister of Social security and Labor of the Republic of Lithuania (February, 2012)

14 Financing scheme. Investments for the modernisation -100%

15 Fixed interest rate at 3% p.a. Maturity up to 20 years 2 years grace period (during construction) No collateral or guarantees required; 15% JESSICA loan write-off if certain energy efficiency level achieved (upon completion) kWh/m 2 (Class D) 100% grant for preparation of renovation documentation reimbursed (paid from national funds) 100% of reimbursement of installments to low income families; 15 % additional support from Climate Change Special programme for energy efficiency measures implementation JESSICA loan write-off if not less than 40 % energy savings are achieved; Process. JESSICA financing scheme

16 Process

17 Approved 95 IP; Total planned investments – ,25 Lt ( ,57 Eur); 58 applications for credits; 43 approved applications: – JESSICA I: 14 Credit value – ,74 Lt ( ,48 Eur) – JESSICA II: 29 Credit value – ,82 ( ,29 Eur) Process. State of play - March, 2012


19 Comparison of State support intensity 50 % (old Program)JESSICA Investments for 1 m LtInvestments for 1 m Lt State support50 %State support15 % +15 % State support boundaries 140 Lt/m 2 (~33% in total State support for the particular case) (15%+15%)*480 Lt=144 Lt/m 2 Home owner investment for insolvent inhabitants 20 Lt/m Lt – Project preparation costs; Lt – project administration costs; Lt- technical supervision ; ( )/2,5=34,8 Lt/m 2 (140 – 20)/420=28,5% (State support intensity for m 2 of investments) ,8=179 Lt/m 2 179/480=38%(State support intensity for m 2 of investments)

20 20 The communication is being planned and implemented taking into account key influential aspects, such as: 1)Season; 2)Political, social and economic events in the country; 3)Course of the processes; 4)Real action plan Activities. Promotion planning

21 Activities. Promotion Housing and Urban Development Agency implemented more than > consultations, organised > 200 seminars and training activities, is preparing typical technical project for housing refurbishment in order to lower the preparation costs of such documents, several studies were made (including the opportunity study on the usage of renewable energy sources within housing refurbishment, monitoring of the implemented projects, recommendation plan for the buildings to be modernised in the first place, etc.)


23 Vaišvilos g. 9, Plungė 5 floors, 50 apartments. Built in Total heated area – 2 590,16 m² Implemented measures: Heating and hot water system upgrading; replacement of windows and exterior doors; roof insulation; wall insulation; basement ceiling insulation; insulation of base; drinking water pipelines and equipment replacement; repair works of sewage system; floor insulation on the ground; electrical wiring repair works; stairwell repair works Investments – ,16 EUR Results

24 Completion date – September 20, 2011 Energy efficiency class (according to Energy Performance Certification classification) before refurbishment (modernisation) – E, planned value – C, Achieved value – B; Energy consumption before modernisation - 293,94 kWh/kv.m Energy consumption after modernisation - 121,01 kWh/kv.m Energy savings - 58,83 (%)

25 Housing and Urban Development Agency Švitrigailos str. 7 / A. Vivulskio str. 16, LT Vilnius Telephone Thank you for your attention!

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