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The most modern MAN hybrid buses will arrive in Kaunas in the near future. For a standard size hybrid of 100 standard sizes, the largest order received by the manufacturer. The value of this contract is 23.5 million. EUR.
The buses were purchased by UAB Kauno autobusai, the second largest passenger lawn. The company will finance most of the contract with the 21.5 million contributed by the Development Bank of the Council of Europe. loan in euros. The nine-and-a-half-year loan agreement was signed on September 28. With this agreement, the company not only verified the financing of a substantial part of the investment, but also the conditions and interest rates that were not lower than the loans at the state level.
Kaunas Public Transport Financing Plan
The bank finances more than 90 percent of the value of the bus. The remaining 2 million. UAB Kauno autobusai paid part of the investment in euros to the accumulated profit of the company during the previous period.
As a general rule, international financial institutions finance at least 50 million. eur projects, lending no more than 50 percent of the value of the project. Kaunas has prepared a project for the renovation of public transport, which includes 100 buses, 85 trolleybuses and the modernization of the catenary network. The total value of the project is almost 56.5 million. EUR, ij 4 million. EUR for the modernization of the catenary infrastructure. It was planned that 6.9 million. 1 million euros will be financed with EU funds. The Municipality of Kaunas City will allocate EUR. However, without using all the money from the EU funding measure, Kaunas was the only one who had to close a deal with the carmaker for a larger number of vehicles. Therefore, the institutions used unused EU support in other cities to maintain funding for new trolleybuses in Kaunas.
Save by buying trolleybuses and buses
In the purchase of 85 cars, the company inspected an average of more than 50 thousand. eur lower prices for single trolleybuses than in other cities in the Baltic region (comparing trolleybus prices over the last five years). It is estimated that the company managed to save more than 4 million thanks to a competitive tender. EUR.
The results of the tender for 100 hybrid buses reduce the need for long-term financing by another 2.6 million. EUR.
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Competitive, modern and therefore successfully executed purchases and concluded loan agreements will contribute to cost sharing and ensure the possibility of maintaining the cost of these services, as well as stable prices for Mindaugas Grigelis public transport tickets.
Due to the savings and additional EU funding for trolley buses, UAB Kauno autobusai will repay part of the long-term loan to Nordic Investment Bank. The amount of this loan is LTL 17.5 million. up to EUR 10.3 million.
[infogram id=”e8b3d18e-7cb4-45c4-acb1-211382c344db” prefix=”61e” format=”interactive” title=”TR:Kautob”]Financing of the oldest European international bank
It was agreed that the other part of the project would be financed by the Development Bank of the Council of Europe. i financial institution was established in 1956. In Paris. Until last year, the bank only granted loans to governments and municipalities. Just over a year ago, the bank began financing investment projects for municipally-owned companies. UAB Kauno autobusai is the first company in the Nordic region to receive loans from international financial institutions.
Highest customer reputation and transparency requirements
Like most of these international organizations, the Council of Europe Development Bank places extremely high demands on its clients and the projects it finances. The Bank assesses not only the economic logic and financial sustainability of the project. Before granting a loan, the bank conducts an evaluation of its activities, social policy, environmental protection and operational transparency. The public procurement process and procedures of the funded project are no less important. Bus and trolley bus purchases must not only be competitive and flawless, but also comply with the bank’s public procurement policies and regulations.
UAB Kauno autobusai took advantage of the accumulated experience of working with international financial institutions to verify the best possible investment financing conditions. It’s the result of three years of steady work that has benefited city residents for a decade, says Marketing Director Karol Decker.
A long-term loan without a municipal guarantee is an indication of the higher level of trust in the company. Hopefully that example will abound in Lithuania.
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