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Planned Lithuanian military infrastructure development projects presented to foreign investors

On October 11 Vice Minister of National Defence Giedrimas Jeglinskas presented a strategic project of the Lithuanian Armed Forces at the Pan-Baltic Infrastructure Summit INFRA 2018 investors conference in Riga. Lithuania will build three new military bases in Šiauliai, Vilnius, and Šilalė regions over the next several years through Public-Private Partnership (PPP). The method to implement the project has been approved by the PPP Commission of the Government, the Cabinet is to take the final decision in the nearest while.

“The investors conference in Riga has been a great opportunity to spread to a wider audience the information about the strategic project of the Lithuanian Armed Forces aimed at strengthening readiness of national and allied forces, deterrence and defence, also, to tell about the benefit of the project and invite foreign investors to bid,” Vice Minister of National Defence Giedrimas Jeglinskas says.

Politicians, experts, investors and developers from sectors of infrastructure and energy discussed the most recent trends and innovations in infrastructure development and projects underway in the Baltic region at the conference in Riga. Roughly 150-200 participants of the conference in Riga were informed about the first-ever Lithuanian military infrastructure development projects to be carried out through the PPP method.

The Ministry of National Defence decided to implement the new military infrastructure development projects through PPP in order to avail not only of the capacity of private sector to execute several large-scale projects at the same time, but also with regard to the fact that the National Defence System required large investment over the next 2-3 years. The tender for all three objects will be announced in early 2019 and contracts with investors will be signed in late 2020. The partnership contracts will be signed for the period of 15 years, until 2035, roughly two years will be allowed for developing infrastructure, and the investors will have it under their supervision for the remaining 13 years. Private entities will be investing their own financial resources as part of the PPP projects into the infrastructure generated for the state for military functions and will take on the risks arising from construction works and operation of the new infrastructure. When the project activities are implemented, the project succession will pass on to the Lithuanian Armed Forces.

Public consultation conference is planned to be held by the Ministry of National Defence in late October to present the project.

 

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