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An international consortium led by the aviation consultancy firm InterVISTAS has been selected as the preferred bidder for the signing of a contract with the Lithuanian Ministry of Transport and Communications and State Enterprise Lithuanian Airports to provide consultation on the structuring and implementing of Lithuanian airport concession procurement.

The key task for the appointed consultants is to structure the procurement documentation and lead the procurement procedures in such a way that the concessionaire will accept all responsibility for ensuring that Lithuania's interests are met in the project: namely, that maximum possible benefit is generated for the State.

The potential concessionaire is expected to increase connectivity in all three Lithuanian airports and to improve their infrastructure through financing strategic development projects and improving airport services. The anticipated duration of the contract is 22 months and the advisers will consult the government of Lithuania throughout this process.

Lithuanian Airports operate a network of three international airports in Vilnius, Kaunas and Palanga. Altogether during 2015 they served over 4.2 million passengers (Vilnius - 3.3M, Kaunas - 0.747M and Palanga - 0.145M) and 50 thousand flights.

The full investment program of all three Lithuanian airports is set at approximately €250 million (US$288.5 million).

The Lithuanian Minister of Transport and Communications Rimantas Sinkevicius is confident that not only will the concession project help Lithuania to develop its airports, but it will also help the country achieve superior results within the Baltic region. Mr Sinkevicius stated:

“The Lithuanian aviation sector is often undeservedly overlooked and underestimated, yet its value to the country’s economy is colossal. With the help of our selected advisers it will be possible for us to take firm steps to develop a truly meaningful airport concession project.”

InterVISTAS is a Dutch capital company that has participated in numerous complex airport and airline projects. It has provided advice to both private operators and governments in airport concessions of similar complexity. In the words of the CEO of Lithuanian Airports, Mr Gediminas Almantas:

“Aviation development is extremely important for Lithuania, predominantly because of current limitations in connectivity, as well as the impact that the development of aviation will have on economic growth. By increasing connectivity we will be able to attract more investment into the country, promote export, and guarantee growth in tourist inflow. This project will have a broader economic impact on the country, allowing us to become leaders in the regional aviation industry".

The entire procurement process was conducted with the assistance of Invest Lithuania. The agency acted as experts in public procurement and represented the interests of Lithuanian Airports during the negotiations phase.

Tadas Jagminas, Director of Project Management at Invest Lithuania, is pleased that all procurement goals have been achieved and that a very strong consortium of international consultants has been selected. Mr Jagminas commented:

“The selected consultants have a wealth of relevant experience in structuring airport concessions. Most importantly, they have consulted the public sector in similar projects which successfully reached their financial close. We hope that the consultant’s extensive experience will guarantee that this Lithuanian airport concession becomes a benchmark for other similar airport concessions in Europe. Such globally recognized advisers are also highly valued among the potential international investors who implement such projects.”