multifunctional health, education, culture and business support … · multifunctional hub in...

Multifunctional health, education,

culture and business support

center complex PPP project, implemented by capital city municipality and

Government of the Republic of Lithuania

Multifunctional health, education, culture and business support center complex Vilnius city municipality and Government of the Republic of Lithuania (hereinafter – public sector institutions) are planning to implement multifunctional hub project in Vilnius.

The project vision has been completely revised in 2013 from national stadium to multifunctional hub in cooperation between the Government of Lithuania and Vilnius city municipality, embracing broad spectrum of public services and creating the conditions for additional private investments.

The project is included into the Integrated territorial investment program for the North Vilnius, approved by Vilnius Municipal Council and confirmed by the Ministry of Interior, which is responsible for Regional development policy, and planning and administering the ESI funds investments for municipal projects, on June 19, 2015.

Northern Vilnius territory marked in blue color

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Currently public sector institutions are looking for a consortium of private partners (hereinafter – consortium), willing to implement the territorial development and revitalization project, by designing, building and maintaining facilities required for provision of these public services, and investing into additional commercial services. The selection of such consortium will be conducted under the rule for Public Private Partnership (PPP) projects selection and implementation, and Law of the Concessions. PROJECT LOCATION The project site is the area of 22,9 ha, located in the northern part of Vilnius city, Šeškinė district, known as the „National stadium” site, where several attempts to build the National stadium during years of 1986-2008 were undertaken.

For the implementation of the activities during PPP period it is planned to transfer land sites the ownership of which belongs to the Republic of Lithuania for operation and usage by private partner.

Land site No. 1, Ozas street. 27

(Cadastral No. 0101/0020:212)

Land site No. 2, Ukmergė street

(Cadastral No. 0101/0020:211)

Land site area: 203 945 m2 24 873 m2

Territory operation type: Specialized complex

territory Specialized complex

territory

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Land site purpose: Other Other

Land usage mode: Territory of public/

commercial purpose Territory of public/

commercial purpose

Permissible height: from 12 m to 35 m up to 12 m

Permissible density: up to 80 % up to 40 %

Building intensity: 3 1

Building type: Separate buildings Vacant planning

Greenery part: from 15 % to 25 % up to 60 %

Restrictions:

17 910 m2 servitude (right to walk, drive with

vehicles, build underground and over

ground communications); not to build shopping

centers

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Existing buildings: Stadium of 37 248 m2

area, with 10 % of completion year 2002

-

The above-mentioned land sites are situated near overgrown Ozas geomorphological reservation and shopping and entertainment center „Akropolis” (total area 110 000 m2 ), which was the largest object of such complexion in the Baltics in 2002.

On the eastern part of the territory there are shopping and entertainment center „Ozas“ (total area 62 000 m2 ), opened in 2009 and „Compensa” concert hall, opened in 2014, designed for more than 2 000 spectators.

Near shopping and entertainment center „Ozas” several other significant objects are located: „Vichy Aqua Park”, which was opened in 2007 and can receive up to 1 500 visitors, „Siemens” arena, containing 10 000 spectators of basketball matches and 12 500 spectators of public events and „Lietuvos rytas” arena – basketball hall containing 2 500 spectators.

The western part of the territory contains „Pramogų arena” which has ice skating rink and can receive 2 500 spectators of ice hockey matches and 4 000 spectators of other events. Next to the arena there are „SEB” arena, established in 2008, having tennis and

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squash pitches and one more multifunctional hall „Sportima”, which can contain 3 000 spectators. The hall was established in 2001 and recently renovated. Every year it is visited by sportsmen of approximately 12-14 different sports.

Therefore, for the past 15 years the territory along Ozas street and Ąžuolynas has been turned to the set of sport and leisure complexes.

„Sportima“ 2001 Ąžuolynas street 5

„Pramogų arena“ 2002 Ąžuolynas street 9

„Akroplis” 2002 Ozo street 25

„Lietuvos rytas“ arena 2004 Ozas street 14

„Siemens“ arena 2004 Ozas street 14

„Vichy“ 2007 Ozas street 14C

„SEB“ arena 2008 Ąžuolynas street 7

„Ozas“ 2009 Ozas street 18

„Compensa“ 2014 Kernavė street 84

INVESTMENT PROJECT SCOPE

Project goals are to:

1. improve the conditions for development of economic activities, 2. develop modern and attractive services for citizens, 3. support social and cultural integration of local community.

Public sector institutions are interested in the implementation of the following activities:

1. Territory cleaning Territory cleaning and preparation for investments, installation of engineering network, adjusting the territory for social and

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commercial activities.

2. Pre-school facility Establishment of engineering infrastructure for

the functioning of pre-school facility for 300

children (including playgrounds, game arbors,

footways, greenery etc.)

3. Infrastructure for informal education

Establishment of 3 football pitches and 1

athletics pitch, halls for physical activities (3

basketball halls and 1 handball hall),

administrative facilities, hostel facilities for 100

persons.

4. Incubator for cultural, creative and sport activities

Establishment of facilities for cultural and creative activities.

5.

Communication and information center

Establishment of infrastructure for

communication and information center

transferring Šeškinė branch of Vilnius city

library.

6. Lithuanian Sport Museum Establishment of Lithuanian Sport Museum

facility transferring it from Kaunas city.

7.

Infrastructure for public cultural and sport events

Establishment of infrastructure for major

public cultural and sport events

organization up to 20 000 spectators

places, supporting facilities, ground for

public and sport events

For the purpose of preparation of the investment project, and calculation the indicative costs of such complex development, the possible visions of the complex were developed. The visions are non binding for the consorcium.

Visualization of project outcomes (1)

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Visualization of project outcomes (2)

Alongside with this project, two additional projects, aiming to integrate the complex into the city transport and network are planned in the Integrated territorial investment program:

1. Project of the development of multifunctional complex approach infrastructure – Vilnius city municipality is the managing authority and financier of operation costs.

2. Project of the development of rain wastewater gathering infrastructure – Vilnius city municipality is the managing authority and financier of operation costs.

SCOPE OF PARTNERSHIP

The consortium is expected:

1. to propose the efficient use of the land; 2. to design, build, finance and operate objects, needed for public services delivery; 3. to propose the additional commercial activities within public infrastructure objects,

when public infrastructure object is not used for the provision of public services, and when such activities have no negative impact on the availability or quality of public services;

4. to share the benefits from the commercial activities with the public sector institutions to the extent to be negotiated;

5. to develop additional commercial services and objects on the site, under the following conditions: exhaustive list of excluded commercial activities (under NACE 2.0) will be

provided in procurement documents; and additional objects and services shall not conflict or contradict with the main

objectives of the project; and benefits from additional commercial activities will be shared with public

institutions and decrease the public costs for infrastructure development and maintenance; and

payment for the right to develop commercial activities from consortia to public sector institutions will be requested with the amount and payment mechanism to be negotiated.

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Consortium will be required to ensure availability of public infrastructure objects for provision of public services as specified in the developed schedule. Availability criteria for each public infrastructure object will be provided in procurement documents.

Owner

Transferred activity to the consortium

1. Territory cleaning Vilnius city municipality Designing, construction,

operation, maintenance

2. Pre-school facility Vilnius city municipality Designing, construction,



Vilnius city municipality Designing, construction,

operation, maintenance,

commercial activity on available time

4.

Incubator for cultural, creative and sport activities



5.




6.

Lithuanian Sport Museum Government of the Republic of Lithuania

Designing, construction,


7.



Designing, construction,

operation, maintenance,

commercial activity

Intended duration of PPP agreement is 25 years. Public sector institutions expect that investment timeframe is 3 years and operational timeframe is 22 years. Gradual

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commissioning of separate infrastructure objects may be considered if it will not negatively impact investment timeframe.

Public sector institutions will provide land lots (and foundations of stadium developed during 1986-2008) to consortium on the terms of rent agreement for the duration of PPP agreement. Public sector institutions will keep the ownership of mentioned property. Foundations of stadium may be used by the consortium to develop public infrastructure objects, or commercial infrastructure objects, or demolished.

Ownership of assets created under provisions of PPP agreement will fall to public sector institutions during the duration of PPP agreement, moreover ownership of the commercial infrastructure objects consortium can keep not only during the duration of PPP agreement, but also after end. Consequently, public infrastructure objects and commercial infrastructure objects have to be separate buildings.

PROJECT FINANCIAL DATA

The estimated investment cost for public infrastructure objects is about 77 MEUR in real terms, and it is expected that partner will be able to decrease it. Municipality and government will seek to finance the infrastructure costs from ESI funds, where the objectives of the activities are eligible for financing. Due to the limitation of the investment into the sport and culture infrastructure, the main facility – infrastructure for public cultural and sport events will be financed from the state budget.

The remaining objects shall be developed as functionally independent units, it shall be possible to calculate the design, construction and maintenance costs for each single object and ensure that each object can be used for certain service delivery independently from other objects. The maximum investment cost for cultural objects (for example museum) shall not exceed 5 MEUR.

Presuming that functional independence of public infrastructure objects within multifunctional hub is maintained, public sector institutions estimated that part of capital investment may be co-financed by ESI funds. PPP payment for investment in public infrastructure objects (CAPEX) which is not covered by the ESI assistance will be funded by public sector institutions during operational timeframe of the PPP agreement (22 years).

Financing sources and terms of public institutions activities:

Capital investment financing source

Operation costs financing source

1. Territory cleaning ESI funds

(total amount shall be remunerated after

establishment of the infrastructure)

Vilnius city municipality and consortium

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2. Pre-school facility ESI funds



Vilnius city municipality


ESI funds



Vilnius city municipality and consortium

4.

Incubator for cultural, creative and sport activities

ESI funds




5.


ESI funds




6.

Lithuanian Sport Museum ESI funds




7.



(remunerated during the period of

partnership agreement operation – 22 years)


and consortium

PROVISIONAL PROJECT TIMELINE Provisional tender publication date –2015 III quarter.

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