Procedural part has been completed and developers for the upcoming strategic project of the Ministry of National Defence have been selected: they will build from zero military infrastructure for three battalion-sized units of the Lithuanian Armed Forces in Šiauliai, Šilalė and Vilnius districts over the next several years. It is the first time a procurement in the National Defence System is carried out as a Public-Private Partnership.
The Ministry of National Defence finished the assessment of tender bids from potential Private Partners in building three military campuses in Šiauliai, Šilalė and Vilnius districts on October 26 and notified them about the outcome.
The term for complaints/claims ended last week and since none had been filed, invitation to sign the contract were sent out to “SALVINTA” UAB” whose proposals were the most advantageous for future campuses in Šilalė and Vilnius districts, and “PARTNERYSTĖS PROJEKTAI KETURI” UAB which will be granted the deal in Šiauliai.
“With this complex and long-range project the Ministry of National Defence moved to a completely new stage in Lithuanian Armed Forces infrastructure development: that is, increasing Lithuania’s combat capabilities, ensuring physical infrastructure for permanent deployment of the increasing combat capabilities of the Lithuanian Armed Forces,” says Minister of National Defence Raimundas Karoblis.
The Ministry of National Defence selected the project developers through close cooperation with the Central Project Management Agency PI and the Public Procurement Office.
The contract is set to be signed in the end of December 2020 when further procedures are finished.
The invitation to tender was expected to attract not only the strongest Lithuanian enterprises but also real estate developers and investors from abroad.
The Ministry of National Defence opened the tendering procedure for private partners for building three military sites and providing public services in Šiauliai town, Šilalė and Vilnius regions in March 2019. Seven Lithuanian and international companies got interested in the invitation. After qualification assessment of the candidates four companies were invited to submit their primary tenders.
The greenfield concept-based project will result in building completely new infrastructure from the ground up for three battalion-sized units of the Lithuanian Armed Forces until 2023. Duke Margiris Infantry Battalion of the Motorised Infantry Brigade Griffin will be based in the town of Šiauliai; Pajūris town of Šilalė region will host Brigadier General Motiejus Pečiulionis Artillery Battalion of the MIB Griffin; and Duke Vaidotas Mechanised Infantry Battalion of the Mechanised Infantry Brigade Iron Wolf will be based in Rokantiškės village in Vilnius region. All the three military campuses will have barracks, headquarters, canteens, welfare, sports, medical, equipment maintenance facilities, and other services a military infrastructure requires.
Property obligations of the state amount to approximately EUR 164 million. 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.
It was decided to implement the new military infrastructure development projects through PPP in order to avail not only of the capacity of the private sector to execute several large-scale projects at the same time, but also because of the large investments into weaponry upgrading and acquisition of new defensive systems in the National Defence System.
The new military infrastructure is built as a priority assignment for the National Defence System of the Government of Lithuania.
Illustrative image (credit: I. Budzeikaitė/ Lithuanian Armed Forces)
