Pilies projektai has closed project financing for the a Public Private Partnership (PPP) contract to implement a major revamping of Vilnius Police Infrastructure in Lithuania.
The total project investment is estimated at €15.3 million (US$16.9 million). The project financing package amounts €12.5 million (US$13.8 million) and it has been provided by he commercial bank SEB.
Pilies projektai a subsidiary of the Lithuanian real estate development company MG Valda had been appointed as preferred bidder for the €46 million police infrastructure PPP project.
The project is one of a number of pilot design, build, finance operation and maintenance (DBFOM) projects in Lithuania to be implemented under the PPP scheme. The 18 year PPP contract will involve the provision of new Police Custody and Police Station facilities in Vilnius, and will facilitate improved performance across various police functions in Vilnius.
The construction of the facilities will take up to three years. Once construction is complete, regular maintenance of the infrastructure will be carried out for a further 15 years to ensure the proper functioning and effectiveness of the facilities, and their compliance with the required standards.
Tadas Jagminas, Head of Project Management at Invest Lithuania, one of the financial and procurement advisors for the contracting authority, commented:
“It’s always pleasing to see a project which we have put so much expertise into progress to fruition. The team at Invest Lithuania is very pleased to have been able to help take this project through the full process to its successful conclusion at the end of last year, paving the way for the subsequent financial close this year.”
Irmantas Butkauskas, PPP team lead at Invest Lithuania stated:
“As advisors to the government, we are pleased to see the MG Valda team moving forward with the financing and preparation process in order to deliver this key public asset. MG Valda has shown a very positive attitude, and professional project management, during the process of financial close. We fully expect them to deliver at the same level of professionalism in subsequent phases of the project as well.”