Vilnius Secures €168M to Build Smart, Climate-Ready Schools Using a First-of-Its-Kind City Financing Model

Over the next three years, the project will deliver five kindergartens and four schools, built to high energy-efficiency and environmental-sustainability standards.

Vilnius is turning education infrastructure into a smart-city innovation story.

The Lithuanian capital will build nine next-generation schools and kindergartens backed by €168 million in international financing from the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), marking one of the most ambitious education-infrastructure rollouts in the Baltics.

What makes the project stand out is not just its scale, but how it is being financed and delivered.

For the first time in the region, a municipally controlled special-purpose company—Vilnius Education Infrastructure—has independently secured long-term funding from international lenders to design, build and operate education facilities. The EIB and NIB are each providing €84 million in loans, while Vilnius Development Company is contributing an additional €9 million, bringing total financing to €177 million.

Smart schools designed for a growing city

Over the next three years, the project will deliver five kindergartens and four schools, built to high energy-efficiency and environmental-sustainability standards. By 2028, the new campuses will serve around 4,290 children, easing acute capacity shortages in some of Vilnius’ fastest-growing neighborhoods.

The facilities will be located in Jeruzalė, Šnipiškės, Verkiai, Pašilaičiai, Pilaitė, Santariškės, Perkūnkiemis, Pavilnys and Kalnėnai, with the largest site in Kalnėnai combining a kindergarten and primary school for nearly 1,000 students.

Beyond classrooms, the buildings are being designed as multi-use community hubs. Gyms, swimming pools and sports facilities will be open to residents outside school hours, while inclusive design standards will ensure full accessibility for children with special needs.

A climate-tech and governance milestone

The project aligns with Vilnius’ broader smart-city and climate ambitions. All buildings will be developed through architectural competitions and community-engagement processes, ensuring modern design, energy efficiency and social inclusion.

“Strong education infrastructure is an investment in Lithuania’s future,” said Karl Nehammer, Vice-President of the EIB. “Our financing will help Vilnius deliver modern, climate-friendly schools and kindergartens that make everyday life easier for families.”

NIB President and CEO André Küüsvek highlighted the governance innovation behind the deal: “This investment shows how cities can respond to rapid demographic change while delivering high-quality public infrastructure closer to where families live.”

The financing structure was selected after negotiations with six institutional and commercial banks, with Vilnius Development Company citing its long-term sustainability and competitive terms as decisive factors.

Built with EU advisory support

The project is also a showcase for EU-backed advisory and capacity-building. EIB Advisory supported the preparation phase with due-diligence reviews, financial modelling and hands-on training—support that will continue through 2026 to monitor construction progress and delivery timelines.

This advisory role became possible after Vilnius received the EU “Climate Neutral and Smart Cities” label in May 2025, positioning the city as a testbed for scalable, climate-ready urban infrastructure.

Call to action: a model cities can copy

For urban-tech innovators, infrastructure investors and city leaders, Vilnius’ approach offers a replicable blueprint: combine public ownership, independent financing, climate-first design and community-centric planning to deliver faster, smarter public services.

As construction ramps up, Vilnius is inviting technology providers, smart-building innovators and urban-infrastructure partners to engage early—testing solutions in real-world schools that could define how Europe builds its next generation of public infrastructure.