VILNIUS — Plans to build a new generator that will produce more electricity for Lithuania are moving ahead after the second of two loans for the project was approved Wednesday.

The country is in the midst of restructuring its energy sector after the shutdown of the Ignalina Nuclear Power Plant at the start of the year. Less efficient Soviet-era technology is increasing prices for end users at a time when most Lithuanians are tightening their belts in the midst of one of the worst economic declines in the world.

The European Bank for Reconstruction and Development has signed off on a 15 year loan with the Lietuvos Elektrinė company for €71 million. The project has also been given legs by an €81.4 million assortment of loans from private banks.

Swedbank, SEB Bank, DnB Nord, Danske bank and Nordea Bank Lithuania all lent money for the plant, the company announced via the NASDAQ OMX Vilnius exchange.

The new €329 million generator will use less fuel and replace two old generators in the plant.

Head of Lietuvos Elektrinė Rolandas Jankauskas said in a statement that the generator would pay for itself by 2020 after it paid off all the loans.