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The authorities expect to receive BAFOs from all three bidders that took part in the competitive dialogue phase, namely:

- Areko, a subsidiary of the real estate investment and development company Hanner,

- Pilies projektai, a subsidiary of the Lithuanian real estate development company MG Valda, and

- Partnerystes projektai, a subsidiary of the real estate company EIKA, who develop residential, commercial, and other properties for individual and as complexes.

The successful bidder is expected to be announced between October and November 2015, with contract signing and financial close due to be completed by the end of 2015.

The project is one of pilot “design build finance maintain” (DBFM) projects in Lithuania to be implemented under the country’s 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 in 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.

According to Mr Tadas Jagminas, director of the Project Management Department of Invest Lithuania, the successful implementation of this pilot PPP project could facilitate further PPP projects in Lithuania.

“The successful implementation of the Vilnius Police Infrastructure PPP project will give us valuable experience which will further strengthen PPP implementation in Lithuania. Lithuania sees PPP projects as a way to stimulate the economy and deliver the investments needed to close the infrastructure gap. Up to 5 other potential projects for social infrastructure have been identified and potential local and foreign investors are showing interest in these projects.”