Public–private partnership (PPP) contract in Lithuania

UAB Merko statyba, part of AS Merko Ehitus group, and Police Department under the Ministry of the Interior of the Republic of Lithuania (public entity) have entered into a public–private partnership (PPP) contract to perform the design and construction works of the new Kaunas district Police headquarters at Radvilenu ave. 1, Kaunas, with later maintenance services.

According to the contract, UAB Merko statyba, acting via designated SPV for this project – UAB VPSP 2 (private entity) – shall perform design and construction works of A++ energy efficiency class administrative and service buildings with a total area of 6423 square metres, parking lots and other infrastructure elements. 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, private entity will provide maintenance and administration services for a period of 12 years.

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