PPP

Lithuanian Government greenlights police infrastructure PPP projects in Kaunas and Panevezys

Jan 20, 2017
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On the 18th of January, Lithuania’s Cabinet of Ministers approved two separate PPP police infrastructure projects in Kaunas and Panevezys. The approval gives a green light to the Police Department under the Ministry of the Interior to commence tendering procedures as soon as the necessary preparations have been completed.

In accordance with the feasibility studies conducted for the projects, private partners are expected to design, build, finance and maintain the police stations for 15 years. 3 years of the total project duration has been allotted for design and construction, while the remaining 12 years will be dedicated to the maintenance of the buildings.

The New police station complex in Kaunas will encompass an administrative building of 6 665 sq. m. and additional premises of 1 300 sq. m. The new police station complex in Panevezys, meanwhile, will encompass an administrative building of 7 500 sq. m., a police custody building of nearly 1 000 sq. m., 880 sq. m. of garages and 2 700 sq. m. of secured parking. The expected CAPEX is set at €12.4 million for the Kaunas project and €14.8 million for the Panevezys project.

“The Lithuanian Police Department has a track record of successfully closing pilot PPP projects of a similar scope in Vilnius. I am confident that the Police Department will effectively apply their accumulated knowledge and lessons learned from their previous experience in PPP. And I believe that this will lead to defined, swift and efficient tendering procedures.” Says Tadas Jagminas, Director of the Project Management Department at Invest Lithuania.

Draft tender documents are under preparation and interested parties are invited to the Information day which will be held at the Police Department in Vilnius on 3rd of February. The tender is expected to be launched in Q2 this year.

At the beginning of last year, the Vilnius Police Infrastructure PPP, which was initiated by the Police Department, reached financial close. The total value of the Vilnius Police Infrastructure project is €56 million, and it will run for 18 years. The contract has been signed with Pilies Projektai, a subsidiary of the Lithuanian real estate development company MG Valda.

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