On January 21 the Ministry of National Defence is holding the second round of in-depth public presentation and discussion concerning procurements documents related to the Public-Private Partnership projects planned by the Ministry of National Defence. As a result of the said projects, three new military facilities are planned to be built over the several coming years in Šiauliai town, and regions of Šilalė and Vilnius.
“The projects are of strategic importance to the National Defence System, this is the first the time we are applying the PPP method, therefore we look to attracting not only Lithuania’s largest companies but also real estate developers and investors from abroad,” Vice Minister of National Defence G. Jeglinskas said. According to him, the PPP method would allow to achieve three main objectives: to generate quality durable infrastructure, to meet the set deadlines, and not to exceed the cost limits.
During the public consultation experts of the Ministry of National Defence will present the investor selection procedure and its stages, explain minimal qualification requirements to all interested investors, contractors, and representatives of funds. They will also be familiarised with criteria of advance selection, criteria of tender evaluation, and main technical aspects of the project implementation.
The call to tender for all three objects will be announced in early February 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 and a half will be allowed for developing infrastructure, and the investors will have it under their supervision for the remaining roughly 12.5 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.
The decision to implement the new military infrastructure development projects through PPP was made 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 new military infrastructure is developed as a priority activity on the Government of the Republic of Lithuania Programme for the National Defence System aimed at developing the Lithuanian Armed Forces – increasing Lithuania’s combat capabilities, ensuring physical infrastructure for permanently deploying the increased combat capabilities of the Lithuanian Armed Forces.
This is the second public discussion the Ministry of National Defence will hold to provide extensive information to interested investors and builders on the strategic projects of the national defence system. The first discussion took place in October last year.