On Approval of the Programme for Improving Energy Efficiency of Public Buildings


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Consolidated version as of 25-02-2016
 
 
 
 
 
Government of the Republic of Lithuania
 
Resolution No 1328
 
 
ON APPROVAL OF THE PROGRAMME FOR IMPROVING ENERGY EFFICIENCY OF PUBLIC BUILDINGS
 
26 November 2014
 
Vilnius
 
Acting pursuant to Article 5 of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 2012, p. 1), establishing a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20 % headline target on energy efficiency and to pave the way for further energy efficiency improvements, the Government of the Republic of Lithuania has resolved:
1. To approve the Programme for Improving Energy Efficiency of Public Buildings (as appended).
2. To authorize:
2.1. the Ministry of Environment of the Republic of Lithuania to approve, by 1 April 2015, the Procedure for the Preparation and Selection of Projects on Improving Energy Efficiency of Municipal Public Buildings;
2.2. the Ministry of Energy of the Republic of Lithuania to approve, by 1 February 2015, the Methodology of Compilation of the List of State Owned Buildings Eligible for Renovation.
3. To suggest that the municipalities participate in the implementation of the Programme approved by this Resolution.
 
 
 
Prime Minister                                                                                 Algirdas Butkevičius
 
 
 
Minister of Environment                                                                 Kęstutis Trečiokas
 
 
APPROVED by Resolution No 1328 of the Government of the Republic of Lithuania of 26 November 2004 (version of Resolution No 1209 of the Government of the Republic of Lithuania of 18 November 2015)
 
 
 
PROGRAMME FOR IMPROVING ENERGY EFFICIENCY OF PUBLIC BUILDINGS
 
 
 
CHAPTER I
INTRODUCTION
 
SECTION ONE
GENERAL PROVISIONS
 
1. The Programme for Improving Energy Efficiency of Public Buildings (hereinafter referred to as ‘the Programme’) shall establish the conditions for the selection of projects on improving energy efficiency of public buildings, owned and used by the state and municipalities, as well as funding and implementation requirements of the selected projects.
2. The Programme aims at improving the efficiency of energy consumption for heating and lighting of public buildings, ensuring the efficient use of the state funds of the Republic of Lithuania allocated for improving energy efficiency of public buildings and the use of public buildings, reducing the atmospheric emissions of greenhouse gases (CO2), and ensuring that the infrastructure of public buildings is in compliance with hygiene norms.
3. The Programme is related to implementation of the following legislative acts:
3.1. Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 2012, p. 1) (hereinafter referred to as ‘Directive’), establishing a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20 % headline target on energy efficiency and to pave the way for further energy efficiency improvements; pursuant to the provisions of Article 5 of the Directive, each Member State shall ensure that, as from 1 January 2014, 3 % of the total floor area of heated and/or cooled buildings owned and occupied by its central government is renovated each year to meet at least the minimum energy performance requirements that it has set in application of Article 4 of Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings (OJ L 153, 2010, p. 13);
3.2. The National Progress Programme for 2014–2020 approved by Resolution No 1482 of the Government of the Republic of Lithuania of 28 November 2012 ‘On Approval of the National Progress Programme for 2014–2020’;
3.3. The National Energy Independence Strategy approved by Resolution No XI-2133 of the Seimas of the Republic of Lithuania of 26 June 2012 ‘On Approval of the National Energy Independence Strategy’;
3.4. The National Strategy for Climate Change Management Policy approved by Resolution No XI-2375 of the Seimas of the Republic of Lithuania of 6 November 2012 ‘On Approval of the National Strategy for Climate Change Management Policy’.
4. The terms used in the Programme shall have the following meaning:
4.1. Energy efficiency means the ratio of performance, service, goods, energy output to primary or final energy input.
4.2. Energy Service Company (hereinafter – ‘the ESCO’) means a person providing energy efficiency services and/or energy efficiency promotion measures to the Project Promoter (as defined in subparagraph 4.8 of the Programme).
4.3. ESCO model means a form of funding and implementing of a project on improving energy efficiency of a public building where the ESCO, by concluding an energy efficiency service agreement with the Project Promoter, makes an investment in the building’s energy efficiency measures and guarantees by providing the agreed services throughout the period of validity of the agreement a certain level of energy savings, while the Project Promoter covers the costs and investments incurred by the ESCO.
4.4. Repayable subsidy means a form of funding and implementing of a project on improving energy efficiency of a public building where a project is awarded an amount of funds, which, in whole or in part, is to be repaid by the Project Promoter according to the conditions laid down in the project agreement.
4.5. List of Buildings Eligible for Renovation means a list of state owned heated and/or cooled buildings used by the state institutions and agencies, approved by the Minister of Energy and compiled by assessing the state owned heated and/or cooled buildings that are used by the state institutions and agencies, according to the criteria and requirements established in the Methodology for Compiling the List of State Owned Heated and/or Cooled Buildings Used by the State Institutions and Agencies – State Management Bodies – Eligible for Renovation (hereinafter – ‘Methodology for Compiling the List of Buildings Eligible for Renovation’) approved by the Minister of Energy.
4.6. List of State Projects means a list of state projects proposed for financing from EU Structural and Investment Funds.
4.7. Public building means state or municipality owned heated and/or cooled buildings that serves for administrative, cultural, scientific, sports, health care, dormitory, hotel, special and residential (including housing of different social groups) purpose.
4.8. Promoter of the project on improving energy efficiency of a public building (hereinafter – ‘Project Promoter’) means persons (except state enterprises) who manage state owned public buildings under a lease or trust terms, the manager of the state property under centralized management (to whom the exception on state enterprises shall not apply) and municipal executive bodies implementing the projects on improving energy efficiency of public buildings belonging, by the right of ownership, respectively to the state or municipalities.
5. Other terms used in this Programme (not specified in paragraph 4) shall correspond to the terms defined in the legislation regulating the implementation of the Operational Programme for the European Union Fund’s Investments in 2014–2020, Law of the Republic of Lithuania on Construction, Law of the Republic of Lithuania on State Support for the Acquisition or Rent of Housing and Renovation (Modernization) of Multi-apartment Buildings and the Law of the Republic of Lithuania on Investment.
 
SECTION TWO
SOCIAL AND ECONOMIC ENVIRONMENT
 
6. According to the data of the State Enterprise Centre of Registers, as at 1 January 2014, 13 123 public buildings owned by the state and municipalities were registered in the Real Property Register. The approximate floor area of these buildings is 14.8 million m2. About 5 500 buildings (5.9 million m2) are owned by the state. About 7 600 buildings (8.9 million m2) are owned by municipalities.
7. Approximately 89 per cent of these buildings were built in the period 1900–1990 when the construction of brick and large-block buildings prevailed. These buildings do not meet the current energy efficiency requirements for buildings, nearly 2 300 GWh of heat energy on average is used annually for heating them. Such buildings, in terms of energy performance classes of buildings, are assigned to the classes D, E, F and G, while the annual heat consumption in them, expressed in terms of kilowatt-hours per square metre of useful floor area, is from 160 to 610 kWh/m2. Due to low energy efficiency, high maintenance and operating costs of public buildings, the cost of the public services being currently provided is correspondingly higher.
8. In Lithuania, during the period 2007–2013, 906 public buildings (including 438 schools) were renovated (modernized) using funds from the State Budget of the Republic of Lithuania and the European Union Structural Support funds. The implementation of the projects on improving energy efficiency of the said buildings was managed by the Ministry of Economy of the Republic of Lithuania, for which purpose, during the above-mentioned period, nearly EUR 300 million was allocated. The method of funding employed to energy efficiency improvement projects is such where funding for implementation of projects (subsidy) is granted without linking these investments and the targeted outcomes to the payback and return on investment from heat savings.
9. The average amount of investment in one project on improving energy efficiency is about EUR 500 000, and investment sum for 1 sq. metre – from 130 to nearly 490 euros. As shows the analysis of implemented projects on improving energy efficiency, the greatest investment is made in the buildings of health care purpose. For this type of buildings the average value of a project on improving energy efficiency is nearly EUR 900 000, i.e. the investment in improvement of energy efficiency of such buildings is twice as high as the investment amount specified in energy efficiency improvement projects of other buildings.
10. It has been found that the lacking funds for improvement of energy efficiency of municipality and state owned public buildings is EUR 146.8 million and EUR 66.9 million, respectively. Pursuant to the Law of the Republic of Lithuania on Budget Structure and the Law on Approval of Financial Indicators of the State Budget of the Republic of Lithuania and Municipal Budgets of 2015, budgetary institutions may not borrow funds or assume any debt obligations on their behalf, therefore, the lacking funding should be obtained from private investors by transferring to them the implementation risks of energy efficiency improvement projects associated with payment for the outcomes achieved.
11. The renovation measures that were most frequently used to implement the projects on improving energy efficiency of public buildings included insulation of walls, roof and plinth, replacement of windows and doors as well as renovation of the heating system. Implementation of the energy efficiency enhancement measures generated in public buildings 215.08 GWh in annual energy savings.
 
CHAPTER II
PROGRAMME OBJECTIVE, TASKS, EVALUATION CRITERIA AND THEIR VALUES
 
SECTION ONE
OBJECTIVE OF THE PROGRAMME
 
12. The objective of the Programme is to improve the efficiency of energy consumption for heating and lighting of public buildings and by 2020 to save 60 GWh of annual primary energy in renovated public buildings, ensure the efficient use of the state funds of the Republic of Lithuania that are allocated for improving energy efficiency of public buildings and the use of public buildings, reduce the atmospheric emissions of greenhouse gases (CO2) and ensure that the infrastructure of public buildings is in compliance with hygiene norms.
13. In order to meet the objective of the Programme, funding may be given only to those energy efficiency improvement projects which fulfil all of the following conditions:
13.1. the project will improve energy efficiency of public buildings so that at least C energy efficiency class will be achieved and the floor space efficiency of buildings will be improved or retained at the current level;
13.2. in order to improve energy efficiency of public buildings or save energy, an activity specified in Annex 1 to the Programme ‘renovation of a public building’ and/or the activity ‘renovation of the engineering infrastructure required for the functioning of a public building’ shall be chosen, and the chosen actions indicated in Annex 2 to the Programme shall be performed;
13.3. the prepared project on investment in a public building shall be such as to justify, according to the Programme, that the alternative to implementation of the investment project, including the activity specified in Annex 1 to the Programme ‘renovation of a public building’ and/or the activity ‘renovation of the engineering infrastructure required for the functioning of a public building’, is optimal according to the values of financial and economic indicators estimated in the investment project;
13.4. at least 51 per cent of the total floor area of the building belongs, by the right of ownership, to the state or municipality and at least 51 per cent of the total floor area of the building is used by the managers of buildings indicated in subparagraph 4.8 of the Programme and, also, there is a written agreement between the owners of all premises of the building for the execution of the energy efficiency project in the building.
 
SECTION TWO
TASKS AND TARGET GROUP OF THE PROGRAMME
 
14. In order to achieve the Programme objective, the following tasks must be implemented:
14.1.the first task is to implement the technical and organizational measures ensuring the sustainable energy efficiency of state public buildings;
14.1.the second task is to implement the technical and organizational measures ensuring the sustainable energy efficiency of municipal public buildings.
15. The target group of the Programme are the promoters of energy efficiency improvement projects of public buildings.
 
SECTION THREE
CRITERIA FOR EVALUATION OF PROGRAMME OBJECTIVES AND TASKS AND THEIR VALUES
 
16. The criterion for evaluation of the achievement of the Programme objective (outcome criterion) is the total annual primary energy savings target of 60 GWh since the beginning of Programme implementation until 2020.
17. The criteria for evaluation of the implementation of Programme tasks (output criteria) are as follows:
17.1. of the first task:
17.1.1. since the start of Programme implementation, at least 3 % of the total floor area of state owned and used heated and/or cooled buildings, calculated according to the data for the previous year, as indicated in the Methodology of Compilation of the List of Buildings Eligible for Renovation, is renovated each year (the Ministry of Energy of the Republic of Lithuania shall be responsible for the compliance with the criterion);
17.1.2. the total renovated floor area of state owned buildings where at least energy efficiency class C has been achieved is 470 000 m2 since the start of Programme implementation until the end of 2020 (the Ministry of Energy of the Republic of Lithuania shall be responsible for the compliance with the criterion);
17.2.2. of the second task – since the start of Programme implementation until the end of 2020, the total renovated floor area of municipality owned buildings where at least energy efficiency class C has been achieved is 230 000 m2 (the Ministry of Environment of the Republic of Lithuania shall be responsible for the compliance with the criterion);
17.3. of the first and second tasks – since the start of Programme implementation until the end of 2020, the total reduction of greenhouse gases emission is 14 000 tons (the Ministry of Environment of the Republic of Lithuania shall be responsible for the compliance with the criterion).
 
CHAPTER III
IMPLEMENTATION OF THE PROGRAMME
 
SECTION ONE
INSTITUTIONS PARTICIPATING IN PROGRAMME IMPLEMENTATION
 
18. The following institutions participate in Programme implementation, according to their competencies:
18.1. the Ministry of Environment of the Republic of Lithuania which is responsible for improving energy efficiency of municipal public buildings and the compliance with the criteria indicated in paragraph 16 and subparagraphs 17.2 and 17.3 of the Programme;
18.2. the public institution Housing Energy Efficiency Agency, which is responsible for the selection and monitoring of projects on improving energy efficiency of municipal public buildings as well as implementation of promotion measures (including organization of investment projects and training and counselling for the participants of energy efficiency enhancement of municipal public buildings);
18.3. the Ministry of Energy of the Republic of Lithuania which is responsible for improving energy efficiency of state public buildings and the compliance with the criteria indicated in paragraph 16 and subparagraph 17.1 of the Programme;
18.4. the State Enterprise Energy Agency which is responsible for expert advice on energy audit and other issues related to energy efficiency improvement;
18.5. a financial institution, which:
18.5.1. performs the functions of an intermediate body, in accordance with Resolution No 528 of the Government of the Republic of Lithuania ‘On the Distribution of Responsibility and Functions among Institutions to Implement the Operational Programme for Investment Financed from the European Union Structural Fund 2014–2020’, when the measures of priorities of the Operational Programme for the European Union Fund’s Investments in 2014–2020 are implemented by means of repayable subsidies;
18.5.2. is responsible for administration of the Energy Efficiency Fund, providing financial services for the projects on improving energy efficiency of public buildings;
18.5.3. is responsible for the management of the fund of funds as defined in paragraph 27 of Article 2 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 2013, p. 320), or, when the fund is not set up, for implementation of financial instruments financed from the national budget, European Union, international financial institutions and/or other funds, in the areas of housing and public infrastructure renovation and energy efficiency improvement (in accordance with Resolution No 814 of the Government of the Republic of Lithuania of 5 August 2015 ‘On Implementing Article 12 of the Law of the Republic of Lithuania on Investment’).
 
SECTION TWO
IMPROVEMENT OF ENERGY EFFICIENCY OF STATE PUBLIC BUILDINGS.
MEASURES AND ACTIVITIES TO IMPLEMENT THE FIRST TASK OF THE PROGRAMME
 
19. 14.1. the first task of the Programme, i.e. implementation of technical and organizational measures ensuring sustainable energy efficiency of state public buildings shall be implemented through the following measures:
19.1. organizational measures intended:
19.1.1. to boost the existing funds and attract additional funding;
19.1.2. to ensure sustainability of energy efficiency of buildings;
19.2. technical measures intended to ensure energy efficiency of buildings.
20. Organizational measures specified in subparagraph 19.1.1 of the Programme shall be implemented through the following activities:
20.1. setting up a fund combining different sources of funding;
20.2. creating repayable subsidy instruments;
20.3. drawing up the rules for the use of private capital after launching renovation activities.
21. Organizational measures specified in subparagraph 19.1.2 of the Programme shall be implemented by performing an analysis of the compliance of the public building to be renovated with the public services provided, as indicated in paragraph 24 of the Programme.
22. Technical measures specified in subparagraph 19.2 of the Programme shall be implemented through activities indicated in Annex 1 to the Programme.
 
SECTION THREE
IMPLEMENTATION OF THE FIRST TASK OF THE PROGRAMME
 
23. During the improvement of energy efficiency of state public buildings, the following activities of preparation and implementation of energy efficiency improvement projects shall be carried out:
23.1. The Ministry of Energy of the Republic of Lithuania shall draw up a List of Buildings Eligible for Renovation. Considering the intended use of a building and in order to ensure the complexity of implementation and funding of projects, the projects on improving energy efficiency of public buildings indicated in this List shall be agreed with ministries, according to their areas of competence, taking into account the intended use of the public building being managed and the ability of ministries to finance the measures specified in Annex 2 to the Programme.
23.2. The manager of the building that has been included in the List of Buildings Eligible for Renovation shall initiate an energy audit and, in accordance with the information specified in Annex 3 to the Programme and the Methodology for the Preparation of Investment Projects for which Funding is Sought from the European Union Structural Assistance and/or State Budget Funds, approved by the Central Project Management Agency, insofar as it is not contrary to the Programme’s provisions, shall prepare an investment project.
23.3. Having prepared an investment project, the manager of the building may apply to the financial institution specified in subparagraph 18.5 of the Programme for the allocation from the Energy Efficiency Fund of financial instruments required for project implementation. The financial institution specified in subparagraph 18.5 of the Programme, having evaluated the compliance of the investment project prepared by the building’s manager and the energy audit report with the Programme’s provisions, shall make a decision on whether the project on improving energy efficiency of the public building may be financed from the Energy Efficiency Fund by means of the ESCO model or by providing a direct loan to the Project Promoter.
23.4. If the financial institution specified in subparagraph 18.5 of the Programme makes the decision that the funding for the project on improving energy efficiency of the public building included in the List of Buildings Eligible for Renovation may not be allocated from the Energy Efficiency Fund, the project on improving energy efficiency of the public building shall be granted a repayable subsidy and such a project shall be included in the List of State Projects, as laid down in the legislation regulating the implementation of the Operational Programme for the European Union Fund’s Investments in 2014–2020.
23.5. The projects on improving energy efficiency of public buildings that are not included in the List of Buildings Eligible for Renovation may be financed from the Energy Efficiency Fund, provided that an energy audit is carried out, an investment project is developed and the requirements established in paragraphs 1–7 of Annex 3 to the Programme and paragraphs 24–26 of the Programme are complied with.
23.6. If the financial institution specified in subparagraph 18.5 of the Programme makes the decision to finance the project on improving energy efficiency of the public building to be implemented from the Energy Efficiency Fund and using the ESCO model, the Project Promoter, in accordance with the standard documents for implementation of the ESCO model, approved by the Minister of Energy, such as technical specification, requirements for assessment of qualifications of service providers, evaluation criteria of service provider proposals and a standard energy saving agreement shall carry out public procurement and sign an energy efficiency service agreement with the ESCO.
23.7. Repealed as of 25-02-2016.
24. The analysis of the compliance of the floor area of the public building to be renovated with the scope of the public services provided, if the main or useful floor area of the building to be renovated exceeds the main or useful floor area of public buildings that is required for public service provision and is determined according to the Lithuanian Hygiene Norm, the investment project shall, in coordination with the manager of the state property under centralized management, evaluate the option to house in this (these) building(s) more than one public service provider or replace the current building (through sale, demolition, transfer of the building or otherwise) by another building (by acquisition, construction, takeover of the building or otherwise). If none of the options is chosen, the investment project shall indicate a reasoned justification for not choosing.
25. In order to ensure that the investment project is in compliance with the requirements laid down in subparagraph 13.1 of the Programme, the manager of the building shall, in addition to the project, prepare the plan for the use of the building which is subject to a written approval of the ministry in the respective area of competence, taking into account the purpose for which the public building is used (in case of a state owned building for administration purposes – a written approval of the manager of the property under centralized management). The plan for the use of the building shall establish that the building shall be used according to purpose for no shorter than 10 years. The plan for the use of the building shall also establish how the building will be used, thus ensuring that its floor area efficiency is in compliance with the requirements specified in subparagraph 13.1 of the Programme.
26. The project funding agreement shall obligate the Project Promoter to repay the funding received under the Programme, if the plan for the use of the building is not being implemented, in whole or in part, or implemented in breach of the obligations imposed by the plan.
27. The Ministry of Energy of the Republic of Lithuania, in co-ordination with the Ministry of Finance, shall, by 1 March of the current year, submit to the Government of the Republic of Lithuania for approval the annual scope of obligations that are planned to be assumed in the application of the ESCO model as well as detailed information required for establishment of the effect of the assumed obligations on government deficit and debt estimates. The Government of the Republic of Lithuania, having considered the data received, shall adopt a Resolution thereby approving the amount of obligations that are planned to be assumed in the application of the ESCO model.
28. The monitoring of the projects on improving energy efficiency of public buildings implemented under the Programme shall be carried out by the Ministry of Energy of the Republic of Lithuania or its subordinate public legal entity authorized by the said Ministry.
29. The Ministry of Energy of the Republic of Lithuania in its annual activity reports shall provide each year to the Government of the Republic of Lithuania information on the Programme’s implementation as regards the improvement of energy efficiency of state public buildings.
 
SECTION FOUR
IMPROVEMENT OF ENERGY EFFICIENCY OF MUNICIPAL PUBLIC BUILDINGS. MEASURES AND ACTIVITIES TO IMPLEMENT THE SECOND TASK OF THE PROGRAMME
 
30. The second task of the Programme shall be implemented through the following measures:
30.1. organizational measures intended to enhance the European Union funding for improving energy efficiency of municipal public buildings by attracting private funds;
30.2. technical measures intended to ensure energy efficiency of buildings.
31. Organizational measure indicated in subparagraph 30.1 of the Programme shall be implemented with resources from the European Union funds, the State budget of the Republic of Lithuania and private capital by setting up a fund or using other possibilities to attract private funds. The fund shall be established and its manager appointed in accordance with paragraph 27 of Article 2 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 2013, p. 320).
32. Technical measure specified in subparagraph 30.2 of the Programme shall be implemented by performing the activities indicated in annexes 1 and 2 to the Programme.
33. The Ministry of Environment of the Republic of Lithuania, taking into account the possibilities of financing of investment projects, shall announce a call for preparation of projects on investment in municipal public buildings under the Programme.
34. Promoters of the projects on investment in municipal public buildings shall be municipal executive bodies which, in order to improve energy efficiency of public buildings managed by the right of ownership, shall perform the following activities:
34.1. select a public building owned by municipality. When selecting a public building, the municipalities are advised to take into account the programmes for territorial planning, renovation and management as well as programmes for enhancing energy efficiency of urban quarters that are developed by municipalities and involve renovation of buildings, infrastructures and utilities networks as well as management of the living environment or the regional development programmes to be approved by the Government of the Republic of Lithuania that aim to ensure sustainable development and management of territories (quarters);
34.2. coordinate the prospects of the use of the selected public building according to its purpose with the ministry in an appropriate area of competence, taking into account the purpose of use of the public building;
34.3. initiate an energy audit of the building and, in accordance with the information specified in Annex 3 to the Programme and the Methodology for the Preparation of Investment Projects for which Funding is Sought from the European Union Structural Assistance and/or State Budget Funds, approved by the Central Project Management Agency, insofar as it is not contrary to the Programme’s provisions, shall prepare an investment project.
35. The projects on investment in municipal public buildings, prepared under the Programme, shall be financed by the following methods:
35.1. by providing a credit from the fund indicated in paragraph 31 of the Programme: after obtaining a written agreement on granting credit from the manager of the said fund or the financial institution selected by the fund’s manager, the preparation and implementation of the renovation (modernization) project of the building shall be organized;
35.2. by means of the ESCO model: in accordance with the standard documents for implementation of the ESCO model (technical specification, requirements for assessment of service provider qualifications, evaluation criteria of service provider proposals and a standard energy saving agreement), approved by the Minister of Energy, a public procurement shall be carried out and an energy efficiency service agreement with the ESCO signed.
36. The decision on the method of financing of the investment project undertaken under the Programme shall be made by the municipal council in its approval of the investment project. After the decision to finance the project according to the method specified in subparagraph 35.1 of the Programme has been made, a decision will be made on borrowing of funds for the investment project and an obligation will be undertaken to repay the borrowed funds to the financial institution by planning and allocating for this purpose and for the whole loan repayment period an adequate amount of funding necessary to maintain the building and repay the loan.
37. If a decision is taken to implement the project by means of the ESCO model, the ESCO may, after concluding an energy efficiency service agreement, apply to the fund’s manager indicated in subparagraph 35.1 of the Programme or the financial institution selected by the fund’s manager for the loan.
38. The monitoring of the projects on improving energy efficiency of municipal public buildings shall be carried out by the public institution Housing Energy Efficiency Agency, in accordance with the procedure established by the Minister of Energy.
39. The Ministry of Energy of the Republic of Lithuania in its annual activity reports shall provide each year to the Government of the Republic of Lithuania the information on Programme implementation as regards the improvement of energy efficiency of municipal public buildings.
 
SECTION IV
FUNDING OF THE PROGRAMME
 
40. The Programme shall be funded from the State Budget of the Republic of Lithuania, municipal budgets, EU Structural Investment Funds, international organizations, private investors and other sources.
41. The Programme involves implementation of projects on improving energy efficiency of public buildings by means of the ESCO model, repayable subsidy, financial instruments, granting subsidies or through the combination of the said measures.
42. The ministries, within their areas of competence and taking into account the intended use of the state or municipality-managed public building, may earmark from the allocations that have been given to them additional funding related to implementation of the project and measures envisaged therein (including also measures not related to improvement of energy efficiency). Funds designed to fund the measures that are not related to improvement of energy efficiency shall not be considered as funding provided under the Programme.
––––––––––––––––––––
 
 
 
Annex 1
to the Programme for Improving Energy Efficiency of Public Buildings
 
 
 
LIST OF POSSIBLE COMBINATIONS OF ACTIVITES (ALTERNATIVES)
 
 
 
No
Possible alternative / possible activity
Construction of a new building and demolition of the existing building
Acquisition of a new building
Construction of a new building and sale of the existing building
Renovation of a state owned public building
Takeover and renovation of the existing public building
Other alternative
1.
renovation of a public building
 
 
 
+
+
 
2.
renovation of the engineering infrastructure required for the functioning of a public building
+
+
3.
construction of a public building
+
+
4.
establishment of the engineering infrastructure required for the functioning of a public building
+
+
5.
demolition of a public building or its part
+
+
6.
acquisition of a public building
+
7.
acquisition of land for new public building
+
+
8.
sale of a public building
+
9.
transfer of a public building or its part to other state institution (s)
+
+
10.
takeover of a public building or its part from other state institution
+
 
––––––––––––––––––––
 
Annex 2
to the Programme for Improving Energy Efficiency of Public Buildings
 
 
 
LIST OF ACTIONS (MEASURES) FOR IMPROVING ENERGY EFFICIENCY OF PUBLIC BUILDINGS
 
 
 
No
Name of action (measure)
1.
Modernization of heating (cooling) and hot water engineering systems
2.
Modernization or installation of ventilation and/or heat recovery systems
3.
Roof insulation (including also installation of new roofing), insulation of the floor under a ventilated attic of a pitched roof
4.
Insulation of external walls and plinth of the building, including elimination of defects in wall (plinth) construction and repair of the blind area around the building
5.
Insulation of other floors (floors above gateways, doorways) adjacent to the exterior
6.
Replacement of external and lobby doors, including also repair of stairs and its adaptation to the needs of the disabled
7.
Replacement of windows for windows with lower heat transfer rate
8.
Insulation of basement floor, insulation of partition walls of a heated basement
9.
Modernization of the lighting system
10.
Modernization of the boiler system installed in the renovated building
 
––––––––––––––––––––
 
 
Annex 3
to the Programme for Improving Energy Efficiency of Public Buildings
 
 
 
INFORMATION REQUIRED TO BE PROVIDED IN THE INVESTMENT PROJECT
 
 
 
1. Analysis of social and economic environment of the project. This analysis supplements the social and economic analysis defined in Section I of the Programme with project-specific aspects.
2. Contents of the project, which shall specify the objective(s) of the project, its relation to other projects, the project’s limits, target groups, the project’s task(s), organization of the project and the expected results.
3. Options and alternatives analysis. This analysis shall be performed by assessing, from the financial and economic perspectives, at least 2 less likely combinations of possible activities (alternatives) from the possible combinations of activities (alternatives) listed in Annex 1 to the Programme, namely: ‘construction of a new building and demolition of the existing building’, ‘acquisition of a new building’, ‘construction of a new building and sale of the existing building’, ‘renovation of a state public building’, ‘takeover and renovation of the existing public building’, ‘other alternative’. If the estimated project value does not exceed EUR 1 million, the investment project shall examine at least one combination of possible activities (alternative) or, additionally, other possible combinations of activities (alternatives) that are made up from the possible activities listed in Annex 1 to the Programme. If activities that are not specified in Annex 1 to the Programme are included in the activities of the other combination of possible activities (alternative), the said activities may not receive funding under the Programme.
4. Financial analysis. The financial analysis shall be carried out using a real financial discount rate of 4 %. The financial analysis shall examine the project’s cash flows and the financial net present value of each alternative for a 25 year period, including the period of investment (period of implementation of project activities).
5. Economic analysis. The economic analysis shall be carried out using a social discount rate of 5 %. The economic analysis shall determine the project’s economic cash flows and the economic net present value of each alternative for a 25-year period, including the period of investment. Multiple social and economic benefits (harms) shall be calculated based on the estimates of conversion factors and components, published on the website www.ppplietuva.lt. The assessment of social and economic benefit (harm) shall take into account the following components:
5.1. improvement of energy characteristics of buildings;
5.2. reduced emissions of carbon dioxide (as a greenhouse gas);
5.3. air pollution changes.
The economic benefit shall be calculated by converting and discounting the benefit of socio-economic assessment. Economic costs shall be calculated by summing up the converted and discounted investment, deducting the residual value of investment and adding operational costs as well as social and economic harm. The alternative to be selected as optimal shall be the one which has the highest economic net present value. The optimal alternative selected shall be subject to sensitivity and risk analysis.
6. Sensitivity and risk analysis. In an investment project, the key risk factors shall be divided into the following risk groups:
6.1. design, technical maintenance services and other services related to investment in the long-term assets that are attributed to the group of risks associated with the quality of design (planning);
6.2. investment in land, immovable property, construction, reconstruction, major refurbishment and other works that are attributed to the group of risks associated with the quality of acquired (performed) contractor works;
6.3. operational costs of the project (resources, infrastructure maintenance and other costs) that are attributed to the group of risks associated with the suitability of the products (services and goods) placed on the market;
6.4. residual value of the investment that is attributed to the group of risks associated with the residual value of assets at the end of the project’s reporting period.
7. Project execution plan. This section considers implementation of the project by means of the ESCO model. The participants of the ESCO and duration of the ESCO selection procedures shall be presented on a tentative basis. The value of the risks planned to be transferred to the ESCO shall be calculated on the basis of the results of financial assessment of risks. A preliminary calculation shall be made of the amount of the maximum annual fee for the ESCO enterprise that is equal to the net present value of the residual value of all project investment, operational costs, the quantified improvement of energy characteristics of buildings and quantified risks.
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