DefMin invites foreign companies to join construction of military bases

Giedrimas Jeglinskas

Lithuania's Ministry of National Defence is inviting foreign companies to participate in tenders on the construction of three new military bases in Vilnius and Šilalė Districts and Siauliai.

Vice Minister of National Defence Giedrimas Jeglinskas says tougher competition will allow reducing the price of the future projects.

"The involvement of builders, designers and also funders from abroad would allow us to step up that competition, which will affect the price," Jeglinskas told BNS Lithuania after introducing business representatives to the planned projects.

Lithuania plans to build three army bases through public-private partnerships. The Ministry of National Defense is due to publish tender documents in December for suppliers to get acquainted with them and submit their comments, and the tender should be announced in the middle of January.

Negotiations with potentials suppliers will take place in late 2019 or early 2020, and contracts will be signed in the first quarter of 2020.

The Ministry of National Defense wants the project development phase to last no more than 2.5 years, and the ministry would pay for the completed work over a period of 12.5 years.

According to Jeglinskas, such a period will give the ministry more flexibility as it will finish paying for major acquisitions, including infantry fighting vehicles, anti-aircraft systems and howitzers, in 2023.

"We will get capabilities and won’t need to break the bank, it will also benefit both private business and people who will get employment," the vice minister says. "In this time of negatives interests, (…) it's a unique investment opportunity for both foreigners, and Lithuanians."

All in all, Lithuania plans to spend no more than 165 million euros on the three military bases. All the three military facilities will have barracks, canteens, welfare, medical, equipment maintenance facilities, and other services a military infrastructure requires.

Source: BNS
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