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REFURBISHMENT PROCESS IN LITHUANIA

REFURBISHMENT PROCESS IN LITHUANIA. Assoc. Prof. Dr. Natalija Lepkova , Department of Construction Economics and Property Management, Faculty of Civil Engineering, V ilnius Gediminas Technical University , Vilnius, Lithuania E-mail: Natalija.Lepkova@vgtu.lt , natalijal2000@yahoo.com

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REFURBISHMENT PROCESS IN LITHUANIA

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  1. REFURBISHMENT PROCESS IN LITHUANIA Assoc. Prof.Dr.NatalijaLepkova, Department of Construction Economics and Property Management, Faculty of Civil Engineering, VilniusGediminas Technical University, Vilnius, Lithuania E-mail: Natalija.Lepkova@vgtu.lt, natalijal2000@yahoo.com “IP Project RenoPassCoDe” Austria, 2014

  2. Thepresentationbasedon: • Vice-MinisterofMinistryofEnvironment Daiva Matonienė presentation “Promotion of energy efficiency through the housing modernisation in Lithuania”; • StatisticsLithuania; • TheLithuanianHousingStrategy, 2004; • Otherinformation. NOTE:some slides contain audio record with explanations Assoc. Prof. Dr. NatalijaLepkova Vilnius Gediminas TechnicalUniversity, Lithuania

  3. MAIN ECONOMICAL INDICATORS IN LITHUIANIA

  4. Main indicators of economic and social development (annual) inLithuania Source: Statistics Lithuania, 2012, 2013

  5. Numbers of completed buildings in Lithuania Newdwellings (residential buildings) completed New non-residential building construction Source: Statistics Lithuania, 2012, 2013

  6. EnergyEfficiencyinResidentialBuildingsinLithuania • Population–2,97mln. • 66%ofpopulationlivesinmultifamilybuildingsbuiltbefore1993(> 38,000multifamilybuildingsand>800,000apartments) • 97%privatelyowned,only3%municipalrentalstock • 65%ofbuildingssuppliedbydistrictheatingsystem • Problems: • poorSovietconstructionstandardsandlittlemaintenance • inefficientheatingsystemsandengineeringequipment • badqualitywindows,roofs,sealsbetweenpanels • hugeenergylosses • mostbuildingsinpoorcondition,lackofproper management • MostofLithuanianhouseholdsarenotsatisfiedwith • their homes

  7. LEGAL SYSTEM The Lithuanian housing sector is mainly regulated by 6 laws: • The Civil Code of the Republic of Lithuania; • The Law On Construction of the Republic of Lithuania; • The Law On Multi-family Apartment Home Owners' Associations; • The Law On State Support to Acquire or Renting an Apartment and for Modernising Multi-family Apartment Houses; • The Law on Real Property Register; • The Law on Heating Sector.

  8. HOUSING SECTOR MANAGEMENT • Ministry of Environment - technical and physical management of the housing stock • Ministry of Finance - funding of the housing programs • Ministry of Social Security and Labour - is authorised to provide heating, hot and cold water subsidies to low-income families • Ministry of Economy - issues related to energy use • Ministry of Agriculture - manages land matters • Ministry of Justice - is responsible for the real estate register • Ministry of the Interior - formulates and implements regional development policy, ensures coordination of the state and local government interests, and establishes legal and economic provisions for the functioning of the local communities

  9. THE LITHUANIAN HOUSING STRATEGY • Maingoals are: • To expand the housing choices to all social groups of the population. • To ensure efficient use, maintenance, renovation and modernization of existing housing, as well as efficient energy use. • To strengthen capacity of the housing sector parties to participate in the housing market, aiming for the establishment of a sustainable housing sector management system on the national, local government and community levels, their interaction mechanisms, to ensure protection of the consumer rights, also to facilitate public communication, continuous training and education of the housing sector stakeholders. • HousingStrategy approvedatJanuary21,2004bythe • LithuanianGovernment • Englishversionavailable • ontheinternetsitewww.am.lt • Programformodernisationofmultifamilybuildingsapprovedin 2004 • Program forsocialhousing • development(approvedin2004 Source: TheLithuanianHousingStrategy, 2004

  10. ENERGY SAVING POSSIBILITIES • Experiencefrom energyefficiencyupgradingprojects • Lithuaniashowsthata combinationof measures: • replacementofwindowsandexternaldoors • insulation of external surfaces: roofs and walls • retrofit of heating substations and balancing ofheatdistribution around the building • reduceenergyconsumptionbyaround50%. Verdict • Good forhome-owners:greatercomfort,lowerbills,addedvalue • Good forLithuania:reducedgasconsumption,bettersecurityof supply • Good for the Planet:lowercarbonemissions,resourceconservation

  11. PROGRAM FOR REFURBISHMENT OFMULTIFAMILY BUILDINGS Supportedimplementationofenergyefficiencymeasures After refurbishment possibility to reduce energy consumption up to 70 % By implementing the Programme also solved environmental protectionissues (reduction CO² emission, urban environment, cities regeneration plans, etc.)

  12. Source: Housing Energy Saving Agency, Internet access: http://www.betalt.lt/lt/apie-programa

  13. EXAMPLE OF REFURBISHMENTPROJECTS IN LITHUANIA Adress: Didlaukio 44, Vilnius Data: 9 floors, 108 flats. Housebuiltin 1978. Generalheatedarea: 5673 sq.m. Completedworks:- wallinsulation, - replacementofwindows, - balconiesglazing, - Replacement of roofcoatinginstalling thermal insulation layer, - Replacingradiatorsincommonpremises, - balancingvalveinstallation, - pipeinsulation. Thetotalinvestmentvalue - 1,95 mln. Litas (~564759 Euros) Energysavings- 44 %. Home renovation and modernization works completed in 2010. Source: Housing and Urban Development Agency, 2013, Internet access: http://www.atnaujinkbusta.lt/index.php/lt/g/atnaujink-busta/pavyzdziu-galerija/?m=1&pid=8

  14. JESSICAHOLDINGFUND JESSICA (Joint European Support for Sustainable Investment in City Areas) is an initiative of the European Commission in cooperation with the EuropeanInvestmentBank (EIB)andtheCouncilof EuropeDevelopment Bank (CEB)inordertopromote sustainableinvestment and growthofjobsinEurope’s urbanareas. Lithuania-oneofthefirst countriesintheEuropean Unionwhich uses the initiative of JESSICAfor the improvementof energy efficiency in multifamily buildings.

  15. FUNDINGCONDITIONSFORRENOVATIONOFMULTI-APARTMENTBUILDINGS • Maturity–20years • Interestrate–fixedfortheentireloanperiod at3%p.a. • Self-financing–bankmayrequireadown payment(notmorethan5%) • Maximummonthlyinstalment–determined foreachmulti-apartmentbuilding • Insurance–noloaninsurancerequirements • Guarantees–nothirdpartyguarantee requirement

  16. PROGRAMMEIMPLEMENTATIONMODELS(1) There are two possible implementation models for housingrefurbishmentinLithuania: 1. Home-ownerstheirowninitiativeprepareinvestmentprojects,takeloansandimplementmodernization Themainproblemsofthismodel: • lackofhome-ownersinitiative • psychologicalfeartotakealoan • mistrustofthequalityoftheupgrading At the end of May 2013, amount signed byUDFswithfinalbeneficiariesabout EUR 15m. This corresponds to almost 100 projects signed/renovations ofmulti-apartment buildings financed.

  17. PROGRAMMEIMPLEMENTATIONMODELS(2) 2. Investmentprojects are implementedbasedontheEnergyEfficiencyProgrammesapproved bythemunicipalities: • Investmentprojectsinitiatedbythemunicipalities • ProjectsareimplementedbytheProgrammeappointedbythemunicipalityAdministrator • LoanistakenbytheProgrammeAdministrator • ProgrammeAdministratorisorganisingprocurementaswelltaking alltheresponsibilitieswithrespect ofimplementation andfinancial managementoftheproject The energy savings (Fig.1, Slide 12) are usedfor repaymentofupgradingcosts by the owners

  18. NewProgrammeparticipants National: • MinistryofEnvironment/MinistryofFinance/JESSICAHoldingFund,managedbyEIB • HousingEnergySavingAgency(HESA) • FinancialinstitutionsadministeringJESSICAfunds(selectedbyJESSICAHoldingFund managedbyEIB) • CentralProcurementOffice(CPO) Local: • Municipalities(Programmepreparation, approval,appointmentofProgrammeAdministrator, supervisionofimplementation) • Programmeadministrators(HousingMaintenancecompanyorotherresponsiblecompany) • Engineering–consultantcompanies(InvestmentProject preparation,supervisionofworks) • Contractors • Home-owners

  19. NewProgrammemodelimplementation(basedon Municipalitiesprogrammes)started in2013– twomunicipalitiesalreadystarted withupgradingof 85(44 + 41)buildings

  20. EXPECTATIONSOFTHENEWMODEL,2013 56Municipalities(outof60in Lithuania)startedwith participationin thenewmodel. • In February, 2013 was created a New Model; • In May, 2013 were signed 56 agreements on renovation of 839 buildings; • In June, a new legislation regarding modernisation of multi apartment houses came into force; • 50 multifamily buildings are currently being renovated

  21. THANK YOU FOR YOUR ATTENTION ! Assoc. Prof.Dr.NatalijaLepkova, Department of Construction Economics and Property Management, Faculty of Civil Engineering, VilniusGediminas Technical University, Vilnius, Lithuania E-mail: Natalija.Lepkova@vgtu.lt, natalijal2000@yahoo.com

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