Lithuanian Public Investment Development Agency (VIPA) is currently developing a repayable assistance model for financing renovation of central government buildings. In general repayable assistance should be applied where the market fails – where the interest of private investors (ESCO’s) in renovation is low. This might be the case with renovation of cultural heritage buildings or buildings with specific security restrictions that require more funds than usually. In 2007-2013 Lithuania did not apply repayable assistance, renovation of public buildings were financed through grants.
Two pilot projects (renovation of the Office of the Government and National Drama Theatre) have been launched in order to assess and, if needed, to adjust the repayable assistance model.
The model is based on the idea that after implementing a project a beneficiary in a fixed period of time shall repay the funds in size of annual energy savings. Accordingly, the amount of funds to be repaid directly depends on project results. The repaid amounts will be used for the same purpose or in accordance with the Operational Programme.
Repayable assistance with its repayable character has some similarities with financial instruments, yet its administration is similar to grants. This form of financing should help to move one step further from traditional form of intervention - grant financing to some more innovative solutions providing support to renovation of public buildings.
VIPA has been selected as the implementing agency for administering measures of energy efficiency financed via repayable assistance.