Lithuania, Real Estate

"In order to prove its compatibility with the requirements, VNS provided potentially false information on the composition of its consortium, as well as on its technical and financial capacity, and it is, therefore, being excluded from the tender procedure," the capital's local authority said. 

The city had reasonable doubts as to whether VNS could secure sufficient financing for the project after information emerged in the public domain that two of three companies named by the bidder as its potential financial partners had distanced themselves from it, the municipal administration director, said. 

Poland's Budimex and BaltCap funds have denied cooperation with VNS. 

"There is a high risk of the project collapsing if this company wins the concession. We were unable to verify the qualification documents submitted," Poderskis said.  

Renatas Nacajus, CEO and co-owner of VNS, said the company is considering appealing the decision to a court.  

The local authority's decision leaves a consortium led by Axis Industries, a company of the Icor Group, as the sole bidder for the concession contract.

The consortium, which also includes Venetus Capital, Kauno Arena, Populous and Cloud Architektai, offered to carry out the project for 79.9 mln euros, excluding VAT.  

The city concluded talks with Axis Industries last October and planned to sign a contract in December, but the Lithuanian Supreme Court ordered the local authority to accept and consider a bid from VNS, which had been eliminated from the tender procedure.