investlithuania.com
PPP in LithuaniaOverview of PPP Climate & Opportunities
April, 2018
Lithuania: Facts and FiguresCountry Information
1 Statistics Lithuania, 20182 European Commission, February 20183 Currently in negotiations with OECD
4 The Global Competitiveness Report 2017–2018 | World Economic Forum5 Doing Business Report 2018 | World Bank6 Economic Freedom index 2018 | Heritage Foundation
From command economy to free market in 20 years
AA3A-
no. of procedures to start business44
#19 freest economyin the World6
#12 for getting construction permits5
Real GDP growth2
Membership
Profit tax
Credit Ratings2
Population1
Dominant foreignlanguages
Currency
Official language
Capital
2.80 million
Vilnius
Lithuanian
English, Russian, German,Polish
Euro
S&PMoody’sFitch
15%
2.3% - 20163.8% - 2017f
2.9% - 2018f
2
NATOEUOECD in 20183
Experienced and competentcentralized support structures
Developed public sector skillsand expertise in PPPsPositive political outlook
Highly compliant legal framework
Track record on PPP projects
PPP in LithuaniaGeneral Environment
3
PPP in LithuaniaThe World Bank’s global PPP procurement benchmark
1 Rankings are shared with some other countries that score the same amountSource: http://bpp.worldbank.org/data/exploreindicators/PPP-procurement
• 1st For procurement of PPPs
• 3rd For preparation of PPPs
• 8th For unsolicited Proposals
• 16th For PPP Contract Management
Lithuania ranks: 1
4
0 100
0 100
0 100
0 100
92
95
58
70
PPP in LithuaniaAmong Leaders in Eastern Europe & CIS
1 Evaluating the environment for public-private partnerships in Eastern Europe and the Commonwealth of Independent States, The Economist Intelligence Unit, 2013
• 1st For the comprehensiveness of PPP regulatory framework
• 2nd For PPP environment in general
• 3rd For clearly defined institutional framework
Regulatory framework
Institutionalframework
Operationalmaturity
Investment climate
Financialfacilities
Sub-nationaladjustment
Lithuanian PPP system ranking vs EE & CIS average1
• Lithuania• EE & CIS average
0
20
40
60
80
100
Lithuania ranks:
5
PPP in LithuaniaAvailable Partnership Schemes
6
ConcessionPrivatefinanceinitiative
(PFI)
ContractualPPP
Mixedcompany
InstitutionalPPP
PPP
Russia
Czech RepublicSlovakia
Moldova
Hungary
Latvia
Belarus
Ukraine
Estonia
Poland
Lithuania
BosniaandHerzegovina
Bulgaria
Romania
Serbia
Croatia
AlbaniaTurkey• High Compliance/Effectiveness
• Medium Compliance/Effectiveness
• Low Compliance/Effectiveness
1 EBRD, 2011
PPP in LithuaniaLegal Framework
• Concession Law
• Investment Law
• Law on State and Municipal Property
• Public Procurement Law
• Government Guidelines on PPP
EBRD Concessions SectorAssessment in CEE1
7
PPP in LithuaniaEligible Sectors
Additional sectors (on governmental approval)
Public order and security
Education
Tourism and leisure
Telecommunications
Energy
Railway network
Transport infrastructure
Waste management
Health care
8
PPP in LithuaniaDecision-making Process
1 Through the Ministry of Finance2
Required if State liabilities are above 58 M EUR 9
1QY1 2QY1 3QY1 4QY1 1QY2 2QY2 3QY2 4QY2 1QY3
Central ProjectManagement
Agency
Central ProjectManagement
Agency
Ministry of FinancePPP Commission1
Government
Parliament2
Contract Award
Governmental PPPs
Investment Project and PPP Questionnaire
Approval Process Selection of Consultants
Procurement Documentation
Procurement Process
*Only if conditions differ from the Council's initial decision
10
PPP in LithuaniaDecision-making Process
1QY1 2QY1 3QY1 4QY1 1QY2 2QY2 3QY2 4QY2
Central ProjectManagement
Agency
Central ProjectManagement
Agency
Municipal Council
Municipal Controller
Contract Award
Municipal PPPs
Municipal Controller*
Municipal Council*
Ministry of Finance
Investment Project and PPP Questionnaire
Approval Process
Selection of Consultants
Procurement Documentation
Procurement Process
PPP in LithuaniaProcurement Process
11
90 da
ys
120 d
ays
30 da
ys
70 da
ys
20 da
ys
85 da
ys
85 da
ys
5 day
s
35 da
ys
60 da
ys
120 d
ays
720 days
Pre-Qualification
Initial tender submission
Initial tender evaluation
Detailed tender submission
Detailed tender evaluation
Negotiations
Tender documents revision by the Ministry of Finance
The completion of negotiations
Final tender submission and evaluation
Signing of contract
The fulfilment of the conditions precedent
12
34
56
78
910
11
PPP in LithuaniaUnsolicited Proposals
12
Unsolicited proposals• completely new, or• identified but has no feasibility study prepared
Project initiation form
Granting authority Project implementation• feasibility study• tendering procedures
If approved*
* If project is declined:Official response explaining grounds for the decision
PPP in LithuaniaTrack Record
1 Number of all ever signed PPPs in Lithuania2 Ministry of Finance, June 2017
• 53 PPPs1
• 50 Concessions
• 3 PFIs
• Majority service concessions
• Mainly municipally owned
• Blended with EU structural funds
Private sector participation by sectors2
13
Transportinfrastructure
Culture, sports andleisure infrastructure
Number ofcontracts
13
10
Energysector
8
Education
1Public service and security
1
Other20
PPP in LithuaniaNotable signed projects
Project Scope Vilnius Balsiai school
DBFM
Vilnius City Municipality
25 years
1,050 students
EUR 10 M
Operational since 2011
Palanga bypass
DBFM
Lithuanian Road Administration
25 years
8.25 km
EUR 10 M
Operational since 2015
Vilnius police station and custody suite
DBFM
Police Department
18 years
8,665 m2
EUR 9 M
Construction
Vilnius (Santariskes) medical campus parking infrastructure
Concession
The Ministry of Health
25 years
Up to 2,250 parking places
EUR 14 M
Construction
Type of PPP
Project Owner
Project Term
Key Parameters
Capex
Project Status
14
PPP in LithuaniaProjects in Tender
Project Scope
Type of PPP
Project Owner
Project Term
Key Parameters
Vilnius multifunctional complex
Concession
Vilnius City Municipality and Department of Physical Education and Sports
Up to 25 years
At least 15,000 seats
Evaluation of preliminary bids
15
Kaunas Police headquarters
DBFM
Police Department of Lithuania
15 years
• 5,080 sq.m. administrative building• 1,180 sq.m. additional premises
Preliminary bids
Panevėžys Police headquarters and custody suite
DBFM
Police Department of Lithuania
15 years
• 8,000 sq.m. administrativebuilding and custody• 884 sq.m. garage• 2,700 sq.m. secured car parking
Preliminary bidsProject Status
16
PPP in LithuaniaInvestment Opportunities
Project Scope
16
Type of PPP
Project Owner
Project Term
Key Parameters
Capex
Project Status
Lithuanian airports development
Concession
Ministry of Transport and Communications
25 years (TBC*)
• VNO – 3.80 M PAX1
• KUN – 0.74 M PAX1
• PLQ – 0.23 M PAX1
14% avg. passenger growth in the network (in 2016)
EUR 200 M - 300 M
Analysis of project alternatives
Vilnius multifunctional health center
Concession
Vilnius City Municipality
To be confirmed
50m and 25m length swimming pools
Operational contract
Preparation of tender documents
TBC - to be confirmed
We are a government agency that providesfree investment advice, contacts and data.
Invest Lithuania activities within PPP:
• Consults public sector on project preparation
• Advises investors on project participation
• Guides foreign companies through the process of setting up in Lithuania
About Invest Lithuania
17
Tadas JagminasDirector
Dainius NormantasAnalyst
Juste MarcinkeviciuteSenior Project Manager
Contact Us
17
Project Management Department at Invest Lithuania
+370 5 262 7438
+370 5 204 7812 +370 5 204 7811