TGS Baltic advises on implementation of projects on modernization of the district heating sector in Vilnius and Kaunas

20.05.2019 TGS Baltic advises on implementation of projects on modernization of the district heating sector in Vilnius and Kaunas

TGS Baltic continues to advise Lietuvos energija, UAB, a group of state-controlled energy companies, which is one of the largest in the Baltic States, on the implementation of the projects of modernization of the district heating sector in Vilnius and Kaunas, which are recognized as economic projects of national significance to the Republic of Lithuania. 

 

During the implementation of the projects, Lietuvos energija, UAB will construct cogeneration heating plants (waste-to-energy and/or bio-fuel power plants) (the CHPP) in the two biggest cities in Lithuania. TGS Baltic advised the client on structuring of the projects, drafting necessary documentation, including, but not limited to, the terms of the tender for selection of a partner for construction of CHPPs, Cooperation Agreements, Shareholders’ Agreements, Share Subscription Agreements, and other documentation related to public tenders on selection of partners for construction of CHP plants in Vilnius and Kaunas, representation in the negotiations with the selected partners.

TGS Baltic also advised Lietuvos energija, UAB on the pre-notification of state aid intended for the development of Vilnius and Kaunas CHP plants to the European Commission. The advice included an in-depth analysis into the rules governing state aid intended to be financed from the European Structural Funds as well as support to power plants in the context of the EU emissions trading system, waste management and climate change policies. TGS Baltic also assisted the client with drafting of pre-notification as well as additional answers to the request received from the European Commission. TGS Baltic successfully represented the interests of the client in May 2017 during the negotiation process with the Ministry of Finance.

The construction of Vilnius CHP plant officially started in February 2018. TGS Baltic continues advising the client on various legal issues and in June 2018 provided legal services related to state aid, EU competition law, and real estate/construction issues.