Construction, Good for Business, Investments, Lithuania

UAB Merko statyba and police department under the Ministry of the Interior of the Republic of Lithuania have entered into a public–private partnership (PPP) contract to perform the design and construction works of the new Kaunas district police headquarters at 1 Radvilenu Ave., Kaunas, with later maintenance services, the company told the stock exchange.

According to the contract, UAB Merko statyba, acting via UAB VPSP 2, a designated private entity for this project,  shall perform design and construction works of A++ energy efficiency class administrative and service buildings with a total area of 6,423 square meters, parking lots and other infrastructure elements. The private entity is also tasked with financing the project.

The design and construction stage of the project will take up to 36 months. After completion of the buildings, UAB VPSP 2 will provide maintenance and administration services for a period of 12 years.

Total nominal value of the PPP contract is 23.5 mln euros, plus value added tax, for the whole 15 years' period, with payments from the public entity starting from the beginning of the maintenance phase.

AS Merko Ehitus group consists of Estonia's construction company AS Merko Ehitus Eesti, the Latvian-market-oriented SIA Merks, UAB Merko Statyba, which is operating on the Lithuanian market, Peritus Entreprenor AS construction company in Norway and the real estate development business unit along with real estate holding companies.