VIPA granted subsidised loans for renovation (modernisation) of dormitories of higher education schools and vocational training institutions according to the programme approved by the Minister of Education and Science and the Minister of Environment of the Republic of Lithuania the aim of which was to renew / modernise dormitories of old construction which were built according to the technical construction standards which were applicable before 1993 so as to ensure rational use of energy resources, to improve the conditions of students who live in dormitories.
Funds for subsidised (soft) loans under this programme were allocated by application of the European Commission’s initiative JESSICA. Funds of JESSICA initiative were used as repayable investments of assistance provided from the EU structural funds made in projects aimed at developing sustainable cities. To carry out the programme the amount of EUR 20 million was allocated from JESSICA Holding Fund. This money was lent to educational institutions on preferential conditions. Loans were granted for the period of up to 20 years with fixed 3% rate interest, it was also possible to defer loan payments and write off 15% of interest (on the amount of the loan) if an entity managed to save more than 25% of energy. On 18 July 2013, an agreement was signed with the European Investment Bank (EIB) on the provision and administration of soft loans for renovation of student dormitories of education institutions. VIPA was designated as a financial intermediary.
Based on the success in implementing JESSICA HF and having measured all advantages of financial instruments, the decision was made to expand the application of financial instruments using the measure of modernisation of public buildings of the central government which could ensure the continuity of project funding. Given the fact that the interest in renovation of student dormitories has remained considerable, we invite state educational institutions to address VIPA so as to further ensure the continuity of this process.