The Lithuanian Police Department signed on Dec. 29th a Public Private Partnership (PPP) contract to implement a major revamping of Vilnius Police Infrastructure.

Pilies projektai a subsidiary of the Lithuanian real estate development company MG Valda has been appointed as preferred bidder for the €46 million police infrastructure project.

The total project investment is estimated at US$11 million.

The project is one of a number of pilot 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 with investments reaching €15 million excluding VAT. 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.

In its bid to secure the tender, Pilies projektai was in competition with Areko, a subsidiary of the real estate investment and development company Hanner, and Partnerystes projektai, a subsidiary of the real estate company EIKA.

Tadas Jagminas, Head of Project Management at Invest Lithuania, said:

“We are glad that yet another pilot project has reached a commercial close. This example shows that the social infrastructure field in Lithuania is attractive to PPP investors. The lessons learned from this project will be of great importance when preparing similar projects in the future."

Irmantas Butkauskas, PPP team lead at Invest Lithuania, who worked closely with the project, commented on  the uniqueness and innovation of both the project and its tendering process: 

“This is the first example of PPP project bundling in Lithuania, as under the terms of the contract two Police infrastructure buildings will be built in two different sites, even though they were tendered as one object. This was done to guarantee a greater level of efficiency as regards infrastructure management and to generate higher market interest during the procurement procedures. Consequently we had three qualified bidders competing throughout the entire process, ensuring that the best value for money solution was secured for the public sector.”