Lithuania. UAB LTG Link
| Date of agreement: | 19 Apr 2024 |
|---|---|
| Country: | Lithuania |
| Customer: | UAB LTG Link |
| Amount in EUR: | EUR 100 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Transport via railways |
This loan contributes to climate change mitigation: 100%
Project
The loan has been provided to finance the acquisition of nine electric and six battery-powered trains to replace the old diesel-fuelled trains.
The estimated total project costs are EUR 226.5 million, and the new trains are scheduled to be delivered by the end of 2026.
The new trains will operate on the popular Vilnius–Klaipėda, Vilnius–Varėna and Kaunas–Šiauliai routes.
This is already NIB’s sixth railway transport loan in Lithuania. Previously, NIB has financed several infrastructure projects with LTG Group, implemented by the group’s infrastructure company LTG Infra.
LTG Link is the passenger transport company of the stated-owned LTG Group (Lithuanian Railways). LTG Link operates on 22 domestic and five international transport routes. In 2023, the company transported around 5 million passengers.
Fulfilment of NIB's mandate
The 15 new trains will replace one-third of current passenger fleet. The new units will be more efficient and will comply will requirements of modern service provision and international regulations.
The new trains will reduce journey times due to better traction characteristics and faster acceleration. The low floor will allow easier boarding, especially for people with baby strollers or those with impaired mobility.
Moreover, the new trains will be more comfortable and have lower noise and vibration levels than the old fleet, significantly improving the quality of service. Better rail transport quality is expected to increase its attractiveness in Lithuania, where passenger rail traffic has been relatively low compared to other NIB member or European countries.
Productivity impact indicators in relation to the investments:
- Number of passengers on the routes served by the new trains
- Energy savings compared to diesel trains, %
- Achieved reduction in travel times, minutes
Environment:
The fleet renewal from diesel trains to electric and battery-electric units will reduce greenhouse gas emissions and pollutants from fossil fuels. All the electric trains will be powered by electricity generated from renewable energy sources.
It is estimated that the project will reduce LTG Link operations’ CO2 emissions by approximately 6,500 tonnes per year. Moreover, by reducing diesel use, the company will decrease NOx pollutants by an estimated 39 tonnes annually.
Environmental impact indicators in relation to the investments:
- The number of new electric units and battery-electric units
- Change in GHG emission (t/a)
- Change in NOx emission (t/a)
Sustainability summary
No sustainability risks have been identified in relation to the project. All the acquired trains will have zero tailpipe emissions. The project is in line with the EU Taxonomy.
