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Less than two months left before the great renovation kick-off

2014-01-24

The multi-apartment building renovation programme has been progressing with success. Less than two months are left before the great kick-off, when renovation of 450-500 is planned to start contemporaneously countrywide. On the 24th of January the Ministry of Environment held a conference to present how the state, contractors and municipalities were prepared for the start of renovation.

To date, works contracts have been signed for 220 multi-apartment buildings. Tenders for works have been called for 388 other residential buildings and procurement procedures are now in progress.

Benefiting from the electronic catalogue of the Central Contracting Authority (CCA), participants of the renovation programme have already saved 10 per cent (more than LTL 13 million) of the planned amount on contracted work.

In addition, facts have ruled out rumours that municipalities have been failing to buy contracted work from CCA. Just before renovation the construction company Konsolė and the mayor of Palanga municipality signed a renovation agreement for 14 multi-apartment buildings. There are as many as 30 contractors that offer a capacity to renovate more than one residential building at a time. Eight will renovate more than 10 buildings each.

“The renovation process is progressing rapidly, and we are satisfied with that. I hear about different issues and problems but feel at ease because we are keeping an eye on the whole process and respond in a flash. I would be concerned if no problems occurred as I would then think that nothing is going on,” Minister of Environment Valentinas Mazuronis said.

The scope of renovation planned for this year compares to the number of multi-apartment buildings modernised in Lithuanian municipalities between 2005 and 2013. Over the last few years, rapid renovation of housing has been due to one of the innovations to the modernisation model introduced in spring last year – the city hosts, i.e. municipalities, have been actively engaged in the renovation process.

“We are pleased with the position of the Government and the Ministry of Environment as regards renovation of multi-apartment buildings because this is the only solution that offers substantial savings to the country’s population in terms of heating. Indeed, many residential houses in Lithuania were built a long time ago and are extremely inefficient and cost-consuming. We have seen many examples when dwellers pay for heating twice or even thrice as less after renovation compared with what they used to pay before. Renovation will also improve the general condition and aesthetic appearance of buildings,” mayor of Palanga, Šarūnas Vaitkus, said.

Taking into account the scope of renovation of multi-apartment buildings, an additional electronic catalogue of the Central Contracting Authority (CCA) will be introduced next week. It will call new construction companies to submit tenders. Thanks to revised qualification requirements, more builders will have the opportunity to register in the catalogue.

“The legal framework and reinforced supervision and control of the works will, as before, ensure proper performance,” Vice-minister of Environment Daiva Matonienė said.


Financing

Renovation of multi-apartment buildings is financed through the JESSICA fund of the European Investment Bank. To date, about 95 per cent of JESSICA funding, which amounts to EUR 227 million (LTL ~783 million), has been redistributed to financial intermediaries.

Public information division
24/01/2014

Minister of Environment of Lithuania Kęstutis Navickas
Minister of Environment of Lithuania Kęstutis Navickas