Slide 2 REFURBISHMENT PROCESS IN LITHUANIA Assoc. Prof. Dr.
Natalija Lepkova, Department of Construction Economics and Property
Management, Faculty of Civil Engineering, Vilnius Gediminas
Technical University, Vilnius, Lithuania E-mail:
[email protected],
[email protected]@[email protected]
IP Project RenoPassCoDe Austria, 2014 Slide 3 The presentation
based on: Vice-Minister of Ministry of Environment Daiva Matonien
presentation Promotion of energy efficiency through the housing
modernisation in Lithuania; Statistics Lithuania; The Lithuanian
Housing Strategy, 2004; Other information. NOTE: some slides
contain audio record with explanations Assoc. Prof. Dr. Natalija
Lepkova Vilnius Gediminas Technical University, Lithuania Slide 4
MAIN ECONOMICAL INDICATORS IN LITHUIANIA Slide 5 Main indicators of
economic and social development (annual) in Lithuania
Indicators20032006200720112013 Annual average population number,
thous. 3454,23394,13366,23187,7 (2012) 2971,9 Unemployment rate, by
labour force survey data, % 12,45,94,313,913,4 (2012) Inflation
(December compared to December of previous year), %
-1,34,58,13,42,8 (2012) Average monthly gross earnings of employees
in the whole economy, LTL 1072,6 (310 ) 1500,22052,02045,9 (592 )
2123,8 (2012) (615 ) Source: Statistics Lithuania, 2012, 2013 Slide
6 Numbers of completed buildings in Lithuania New dwellings
(residential buildings) completed Indicators2008201020112013 Useful
floor area of dwellings completed, thous. m 1 164.0512.4699.4713.96
Number of residential buildings completed 4 0272 8993 7333467 New
non-residential building construction Indicators2008201020112013
Total floor area of non-residential buildings completed, thous. m 1
870.4644.8685.2731.437 Number of non-residential buildings
completed 5 3543 5363 330889 Source: Statistics Lithuania, 2012,
2013 Slide 7 Energy Efficiency in Residential Buildings in
Lithuania Population 2,97 mln. 66% of population lives in multi
family buildings built before 1993 (> 38,000 multi family
buildings and > 800,000 apartments) 97% privately owned, only 3%
municipal rental stock 65% of buildings supplied by district
heating system Problems: poor Soviet construction standards and
little maintenance inefficient heating systems and engineering
equipment bad quality windows, roofs, seals between panels huge
energy losses most buildings in poor condition, lack of proper
management Most of Lithuanian households are not satisfied with
their homes Slide 8 LEGAL SYSTEM The Lithuanian housing sector is
mainly regulated by 6 laws: The Civil Code of the Republic of
Lithuania; The Law On Construction of the Republic of Lithuania;
The Law On Multi-family Apartment Home Owners' Associations; The
Law On State Support to Acquire or Renting an Apartment and for
Modernising Multi-family Apartment Houses; The Law on Real Property
Register; The Law on Heating Sector. Slide 9 HOUSING SECTOR
MANAGEMENT Ministry of Environment - technical and physical
management of the housing stock Ministry of Finance - funding of
the housing programs Ministry of Social Security and Labour - is
authorised to provide heating, hot and cold water subsidies to
low-income families Ministry of Economy - issues related to energy
use Ministry of Agriculture - manages land matters Ministry of
Justice - is responsible for the real estate register Ministry of
the Interior - formulates and implements regional development
policy, ensures coordination of the state and local government
interests, and establishes legal and economic provisions for the
functioning of the local communities Slide 10 THE LITHUANIAN
HOUSING STRATEGY Housing Strategy approved at January 21, 2004 by
the Lithuanian Government English version available on the internet
site www.am.ltwww.am.lt Program for modernisation of multifamily
buildings approved in 2004 Program for social housing development
(approved in 2004 Main goals are: To expand the housing choices to
all social groups of the population. To ensure efficient use,
maintenance, renovation and modernization of existing housing, as
well as efficient energy use. To strengthen capacity of the housing
sector parties to participate in the housing market, aiming for the
establishment of a sustainable housing sector management system on
the national, local government and community levels, their
interaction mechanisms, to ensure protection of the consumer
rights, also to facilitate public communication, continuous
training and education of the housing sector stakeholders. Source:
The Lithuanian Housing Strategy, 2004 Slide 11 ENERGY SAVING
POSSIBILITIES Experience from energy efficiency upgrading projects
Lithuania shows that a combination of measures: o replacement of
windows and external doors o insulation of external surfaces: roofs
and walls o retrofit of heating substations and balancing of heat
distribution around the building reduce energy consumption by
around 50%. Verdict Good for home-owners: greater comfort, lower
bills, added value Good for Lithuania: reduced gas consumption,
better security of supply Good for the Planet: lower carbon
emissions, resource conservation Slide 12 PROGRAM FOR REFURBISHMENT
OF MULTIFAMILY BUILDINGS Supported implementation of energy
efficiency measures After refurbishment possibility to reduce
energy consumption up to 70 % By implementing the Programme also
solved environmental protection issues (reduction CO emission,
urban environment, cities regeneration plans, etc.) Slide 13
Source: Housing Energy Saving Agency, Internet access:
http://www.betalt.lt/lt/apie-programahttp://www.betalt.lt/lt/apie-programa
Slide 14 EXAMPLE OF REFURBISHMENT PROJECTS IN LITHUANIA Adress:
Didlaukio 44, Vilnius Data: 9 floors, 108 flats. House built in
1978. General heated area: 5673 sq.m. Completed works: - wall
insulation, - replacement of windows, - balconies glazing, -
Replacement of roof coating installing thermal insulation layer, -
Replacing radiators in common premises, - balancing valve
installation, - pipe insulation. The total investment value - 1,95
mln. Litas (~564759 Euros) Energy savings - 44 %. Home renovation
and modernization works completed in 2010. Source: Housing and
Urban Development Agency, 2013, Internet access:
http://www.atnaujinkbusta.lt/index.php/lt/g/atnaujink-busta/pavyzdziu-galerija/?m=1&pid=8
Slide 15 JESSICA HOLDING FUND JESSICA (Joint European Support for
Sustainable Investment in City Areas) is an initiative of the
European Commission in cooperation with the European Investment
Bank (EIB) and the Council of Europe Development Bank (CEB) in
order to promote sustainable investment and growth of jobs in
Europes urban areas. Lithuania - one of the first countries in the
European Union which uses the initiative of JESSICA for the
improvement of energy efficiency in multifamily buildings. Slide 16
FUNDING CONDITIONS FOR RENOVATION OF MULTI-APARTMENT BUILDINGS
Maturity 20 years Interest rate fixed for the entire loan period at
3% p.a. Self-financing bank may require a down payment (not more
than 5%) Maximum monthly instalment determined for each
multi-apartment building Insurance no loan insurance requirements
Guarantees no third party guarantee requirement Slide 17 PROGRAMME
IMPLEMENTATION MODELS (1) There are two possible implementation
models for housing refurbishment in Lithuania: 1. Home-owners their
own initiative prepare investment projects, take loans and
implement modernization The main problems of this model: lack of
home-owners initiative psychological fear to take a loan mistrust
of the quality of the upgrading At the end of May 2013, amount
signed by UDFs with final beneficiaries about EUR 15m. This
corresponds to almost 100 projects signed/renovations of
multi-apartment buildings financed. Slide 18 PROGRAMME
IMPLEMENTATION MODELS (2) 2. Investment projects are implemented
based on the Energy Efficiency Programmes approved by the
municipalities: Investment projects initiated by the municipalities
Projects are implemented by the Programme appointed by the
municipality Administrator Loan is taken by the Programme
Administrator Programme Administrator is organising procurement as
well taking all the responsibilities with respect of implementation
and financial management of the project The energy savings (Fig. 1,
Slide 12) are used for repayment of upgrading costs by the owners
Slide 19 New Programme participants National: Ministry of
Environment / Ministry of Finance / JESSICA Holding Fund, managed
by EIB Housing Energy Saving Agency (HESA) Financial institutions
administering JESSICA funds (selected by JESSICA Holding Fund
managed by EIB) Central Procurement Office (CPO) Local:
Municipalities (Programme preparation, approval, appointment of
Programme Administrator, supervision of implementation) Programme
administrators (Housing Maintenance company or other responsible
company) Engineering consultant companies (Investment Project
preparation, supervision of works) Contractors Home-owners Slide 20
New Programme model implementation (based on Municipalities
programmes) started in 2013 two municipalities already started with
upgrading of 85 (44 + 41) buildings Slide 21 EXPECTATIONS OF THE
NEW MODEL, 2013 56 Municipalities (out of 60 in Lithuania) started
with participation in the new model. In February, 2013 was created
a New Model; In May, 2013 were signed 56 agreements on renovation
of 839 buildings; In June, a new legislation regarding
modernisation of multi apartment houses came into force; 50
multifamily buildings are currently being renovated Slide 22 THANK
YOU FOR YOUR ATTENTION ! Assoc. Prof. Dr. Natalija Lepkova,
Department of Construction Economics and Property Management,
Faculty of Civil Engineering, Vilnius Gediminas Technical
University, Vilnius, Lithuania E-mail: [email protected],
[email protected]@[email protected]