Summary sheet of measure No 2000/LT/16/P/PE/001: Measure title Rehabilitation and Extension of Water Supply and Sewage Collection Systems in Vilnius (Stages 1 and 2) Authority responsible for implementation Municipality of Vilnius City, Gedimino av. 9,Vilnius, Lithuania Mayor of Vilnius, Mr Roland Paksas Email [email protected] Final beneficiary SP UAB Vilniaus Vandenys Dominikonu st 11,Vilnius, Lithuania Mr. B. Meizutavicius, Director General E.mail [email protected] Description Vilnius is the capital of Lithuania with a population of 580,000. The main drinking water and sewage networks date from the start of the 20th century and are in need of immediate repair. The expansion of the drinking water supply networks, as well as replacement of the worn out pipelines and the construction of iron removal plants (within separate complementary projects) will contribute to compliance with the EU standards for drinking water by reducing the iron content from 0.25-1.2 to 0.05mg/l. Also, some 99 percent of the Vilnius inhabitants and industries will be connected to the water supply networks. It should be noted that this is the first stage of a long term plan, for which the feasibility work has already been completed, which will result in full compliance with both water quality and waste water Directives. Component 1 Rehabilitation of a total of approximately 80km of water mains in the districts of Antakalnis, Baltupiai, Fabijoniškes, Justiniskes, Kirtimai, Lazdynai, Paneriai, Pasilaiciai, Virsuliskes, Zirmunai and the Old Town by relining of approximately 73 km of pipes ranging from less than 200mm to 1000mm diameter and replacement of some 7kms of pipes are in the utility corridors Component 2 Extension of the water supply and sewerage networks to serve the outlying areas of Gineitiskes, Traku Voke, Tarande, Bajorai, Balsiai, Kairenai, Naujoji Vilnia and Riese. Rehabilitation of 11 pumping stations within Vilnius by the replacement of worn out and inefficient pumps, the replacement of outdated control equipment, and functional repair of the station structures. Reconstruction of 1 additional dilapidated - 1 - 22/07/2000E:\DocTopdf\vilwa_en.doc pumping station. Rehabilitation of 29 km of sewers and 6 kms of sewage pumping mains using trenchless technology methods or relaying. Objectives The principal objectives include the improvement of drinking water by the reduction of iron, more comprehensive treatment of waste water, protection from bursts and floods and protection of the groundwater resources from contamination. In all cases, the appropriate EC Directives provide the standards to be reached. Main elements of financial analysis The financial viability of the project is based on the following factors: • Total cost 40,000,000 euros • Lithuania Public Sector contribution 20,000,000 euros • Of which financed by EIB loan 12,000,000 euros • ISPA grant 20,000,000 euros • Tariff (household) held constant in real terms 1.84% of average income • Cost savings due to investment 334,810 euros/year • Equipment is depreciated over 20 years Financial Internal Rate of Return 5.2% Net Present Value, on assumption of 7% discount rate –14.7 million euros Environmental impact analysis The project is determined to be an Annex II project in the terms of the Directive 85/337 as amended in 1997. A screening for EIA was therefore undertaken and it was concluded that a full EIA is not necessary on the grounds that no significant adverse environmental effects are likely. The areas affected are neither within a sensitive area nor adjacent to one. The activities proposed at each site are small scale and of short duration. Potential effects on the environment occur during civil works and waste disposal. These will be managed by a planning and consent procedure that involves consultation with relevant stakeholders. Cost and assistance (in EURO) Total cost Private Non-eligible Total eligible ISPA grant Grant sector expenditure cost Rate contribution % 43,284,500 0 3,284,500 40,000,000 20,000,000 50 The EIB is contributing a loan of 30% of the total cost (12,000,000 euros) at an interest rate of 4.5% to be paid back by 2019, starting in 2005. - 2 - 22/07/2000E:\DocTopdf\vilwa_en.doc .