On July 22nd, the Lithuanian Government approved a new Prison Modernisation Programme, which will provide the modernisation of detention facilities in the country by 2022. Four of the proposed programme projects will be implemented on a public-private partnership (PPP) basis.
The programme involves the construction of a new remand prison on the outskirts of Vilnius, the completion of PravieniškÄ—s Prison, and the construction of new remand prisons in Å iauliai, KlaipÄ—da and PanevÄ—žys on a PPP basis.
It is estimated that over €34 million will be allocated for these projects by 2022. Of this, more than €30 million will be from state budget funds, with the remaining €3.5 million coming from Norwegian Financial Mechanisms. However, these funds do not include projects that could be implemented on a PPP basis.
The state budget funds will be used to reconstruct the buildings of PravieniškÄ—s Correctional Facility/Open Prison, Alytus Correctional Facility, and Kaunas Juvenile Remand Prison/Correctional Facility. The Prison Hospital in Vilnius will be relocated to PravieniškÄ—s, and the hostel for convicts of MarijampolÄ— Correctional Facility will be renovated into cell-type premises.
According to Jonas Kimontas, project manager at Invest Lithuania, a government agency responsible for attracting foreign investment and PPP promotion, the Prison Modernisation Programme opens up great opportunities for PPP projects. Mr Kimontas commented:
The programme accommodates four PPP projects attractive to investors. We can see that they are already generating interest and we expect that competent companies with expertise in such projects will ensure proper competition during the tenders.
With regards to timing, Vilnius detention facility, with 1,620 beds, will be the first to tender out. The call to investors for qualification is expected in the middle of next year. After this, the next project in the pipeline is Siauliai detention facility, with 800 beds.