Project Description

Provision of a senior loan of up to EUR 8.0 million to UAB Liepvita (the “Borrower”, or the “Company”), to be provided alongside an equivalent loan from a parallel lender for the construction and operation of a multi-phase warehouse development project in Vilnius, Lithuania (“J55” or the “Project” ). 

The Project is being developed and managed by UAB Sirin Development (the “Sponsor” or “Sirin”), one of the largest regional real estate developers that operates in Lithuania and Latvia.

Project Objectives

The proceeds from the loan will be used to retroactively finance two completed, operational warehouse assets with a total GLA of ca. 36k sqm in Vilnius, Lithuania, thus supporting the development of A-class sustainable real estate in the country.

Transition Impact

ETI score: 68

Transition impact will be derived from the following: 

(i) the Well-Governed quality as the Sponsor will implement several corporate climate governance improvements, including in the areas of strategy, governance and accountability and reporting, metrics and targets.

 (ii) the Green quality, as the Sponsor committed to certify the J55 warehouse to a BREEAM “Very Good” standard.

Client Information

LIEPVITA UAB

UAB Liepvita is a limited liability company incorporated in Lithuania.

EBRD Finance Summary

EUR 8,000,000.00

Total Project Cost

EUR 29,440,000.00

Additionality

The Bank is additional in the project as i) the EBRD project mobilises additional funding through a local parallel financing structure and ii) the Sponsor makes use of EBRD expertise on higher environmental standards and the Bank’s expertise on corporate governance improvements, including for climate risk management.

Environmental and Social Summary

Categorised B (2019 ESP). The project was appraised against environmental and social requirements of the Bank. The review of site preparation and organisation plans, recruitment strategy and project information provided to the public were found acceptable and appropriate to the level of project impacts. Public consultation was carried out in accordance with the national requirements which is also in line PR10. The project is not associated with resettlement or economic displacement. The project does not require a local Environmental Impact Assessment (EIA) but requires construction permits, which have been obtained. The construction contractor will be supervised by the Company via site management plans. The operations phase is not labour intensive and will be managed by the human resource policies proportionate to the scale of the operations. The Client has agreed a comprehensive environmental and social action plan (ESAP) with the commitments on occupational health and safety (OHS), worker and community grievance mechanism, construction & operation stage traffic safety management by contractors.

The client is required to ensure that the project complies with relevant PRs and submits annual E&S reports for Bank’s review and monitoring. 

Technical Cooperation and Grant Financing

n/a

Company Contact Information

Laurynas Kuzavas
info@sirin.eu
–
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https://www.sirin.eu/en/
A. Vivulskio st. 7-1, LT-03162 Vilnius

Implementation summary

PSD last updated

28 Sep 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.