Best Policy Practices

Best Policy Practices
support to participating homeowners and conducted numerous
public awareness campaigns. A training programme for
local energy consultants was expanded, which improved their
services and significantly contributed to the positive results of
the implemented renovations.
The World Bank extended a USD 10 million loan for the
project, of which USD 5.3 million was allocated for homeowners
to implement energy efficiency measures in residential
buildings (Part A) and USD 4.7 million was allocated for municipalities
to invest in energy efficiency measures and renovation
of public schools (Part B). The Lithuanian Government
contributed matching funds of 30% and the Danish and Dutch
Governments provided the main technical assistance funds
for the project. Homeowners associations had to contribute a
10% down payment to be eligible for a loan.
The main beneficiaries of the project were homeowners
associations, that is, associations of owners of apartments in
multifamily buildings. As of the end of 2004, more than 1100
associations were involved in various stages of the project
and 532 of them had signed loan agreements for more than
EUR 21 million. A number of associations implemented more
than one project.
All decisions regarding participation in the project and
investments were taken by homeowners associations; therefore,
the project success greatly depended on how active and
how motivated these associations were. Significant public
outreach efforts were needed to get associations involved in
the project, especially during the pilot phase.
The early involvement of associations’ members and the
thoroughly discussed renovation plans contributed to the zerodefault
rate of the project. Technical and social monitoring of
the project revealed that the performed building renovations
not only reduced heating bills and increased comfort levels
but also improved relationships among associations’ members,
thus establishing a foundation for sustainable management
of the existing housing.
This was a genuinely demand-driven undertaking which initiated
a societal shift in Lithuania from the “Soviet-style” centralized
housing maintenance and renovation system towards
a market-based sustainable system that, at the same time,
provided needed support for disadvantaged families, thus
promoting social cohesion.
10