ppp in lithuania
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Overview of PPP Climate and OpportunitiesTRANSCRIPT
investlithuania.com
PPP in LithuaniaOverview of PPP Climate & Opportunities
October, 2015
Lithuania: Facts and FiguresCountry Information
1 Statistics Lithuania, 20132 European Commission, May 20153 Eurostat, 2004-2013
4 World Bank Doing Business Report, 20155 Heritage Foundation, Economic Freedom Index, 2015
From command economy to free market in 20 years
A-A3A-
for GDP/Capitagrowth in EU3
for ease of startingbusiness4
#1#11#15 freest economy
in the World5
Real GDP growth2
Membership
Credit Ratings2
Population1
Dominant foreignlanguages
Currency
Official language
Capital
2.98 million
Vilnius
Lithuanian
English, Russian, German,Polish
Euro
S&PMoody’sFitch
NATOEUOECD in 2017
2.9% - 20141.9% - 2015f
2
Long-term sectorial plans for PPPs
Experienced and competentcentralized support structures
Developed public sector skillsand expertise in PPPs
Strong political will
Highly compliant legal framework
Track record on PPP projects
PPP in LithuaniaGeneral Environment
3
PPP in LithuaniaAmong Leaders in EE & 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
Lithuania PPP system ranking vs EE & CIS average1
• Lithuania• EE & CIS average
0
20
40
60
80
100
Lithuania ranks
4
PPP in LithuaniaAvailable Partnership Schemes
5
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
6
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
7
PPP in LithuaniaDecision-making Process
* required if State liabilities are above 58 M EUR
8
1QY1 2QY1 3QY1 4QY1 1QY2 2QY2 3QY2 4QY2 1QY3
Central ProjectManagement
Agency
Central ProjectManagement
Agency
Ministry of Finance Ministry of Finance
PPP Commission
Government
Parliament*
Contract Award
Governmental PPPs
PPP Investment Project and
Questionnaire
Approval Process Selection of Consultants
Procurement Documentation
Procurement Process
PPP in LithuaniaDecision-making Process
9
1QY1 2QY1 3QY1 4QY1 1QY2 2QY2 3QY2 4QY2
Central ProjectManagement
AgencyMinistry of Finance
Central ProjectManagement
Agency
Municipal Council Municipal Council Municipal Council
Contract Award
Municipal PPPs
PPP Investment Project and
Questionnaire
Approval Process
Selection of Consultants
Procurement Documentation
Procurement Process
PPP in LithuaniaPrivate sector initiative
10
Project proposal• 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
Legislation allows private entities to initiate PPP projects
PPP in LithuaniaTaxation
11
15%
21%
15%
Corporate profit tax
VAT
Dividends (witholding tax)
15% 9%
0.3-3%
Personal income tax
Social security taxpaid by the employee
30.98%
Social security taxpaid by the employer
Real estate tax*No real estate tax paid for PFI type projects
PPP in LithuaniaTrack Record
1 Ministry of Finance, May 2014
• 38 PPPs
• 36 Concessions
• 2 PFIs
• Majority service concessions
• Mainly municipally owned
• Blended with EU structural funds
Private sector participation by sectors1
12
Transportinfrastructure
Culture, sports andleisure infrastructure
Number ofcontracts
10
7
Energysector
7Education1
Other13
PPP in LithuaniaPilot Schemes
Project Scope Vilnius Balsiai school
DBFM
Vilnius City Municipality
25 yrs
828 students
Operational since 2011
Palanga Bypass
DBFM
Lithuanian Road Administration
25 yrs
8.25 km
Operational since May 2015
Vilnius police station and custody suite
DBFM
Police Department
25 yrs
8,000 m2
In procurement3 bidders
Type of PPP
Project Owner
Project Term
Key Parameters
Project Status
13
PPP in LithuaniaProjects in Procurement and Commercial Close
Project Scope
Type of PPP
Project Owner
Project Term
Key Parameters
Capex
Project Status
Inland cargo port inKaunas
Concession
Ministry of Transportand Communications
25 yrs
0.8 M t per year
EUR 11 M
Request for qualification expected in 2015 Q4
Vilnius (Santariskes) medical campusparking infrastructure
Concession
The Ministry of Health
25 yrs
Up to 2,250 parking places
EUR 16 M
In procurement4 bids submitted
Vilnius courthouse
DBFM
National CourtsAdministration
Up to 20 yrs
~15,000 m2
EUR 17 M
In procurement3 bidders
14
PPP in LithuaniaProjects in the Pipeline
Reconstruction of 58.1 kmof A14 Vilnius Utenahighway
DBFM
Lithuanian RoadAdministration
13 yrs
• 58.10 reconstruction• 72.15 maintenance
EUR 66 M
Approval pending
Project Scope Vilnius multifunctionalcomplex
DBFOM
Vilnius City Municipality
Up to 25 yrs
Up to 25,000 seats
EUR 94 M
Aproval pending
15
Type of PPP
Project Owner
Project Term
Key Parameters
Capex
Project Status
Vilnius detention facility
DBFM
Prison Department
25 yrs
1,620 inmates
EUR 38 M
Approval pending
PPP in LithuaniaProjects under Conceptualization
16
Lithuanian airports development
Concession
Ministry of Transport and Communications
25 yrs
• VNO – 2.94 M PAX1
• KUN – 0.72 M PAX1
• PLQ – 0.13 M PAX1
13% avg. passenger growth in the network (2015 1H)
EUR 250 M – 300 M (2017-2035)
PPP investment project
Sventoji seaport expansion
Concession
Ministry of Transport and Communications
Up to 25 yrs
Up to 500 berths (in long term)
EUR 43.3 M
Feasibility analysis
Klaipeda stadium construction
Concession
Klaipeda City Municipality
Up to 25 yrs
• 8,000 seats• Covered stadium• IV UEFA category
EUR 42.6 M
Feasibility analysis
Kaunas street lighting modernization
DBFM
Kaunas City Municipality
Up to 15 yrs
26 thousand luminaires
EUR 15 M
Feasibility analysis
Project Scope
Type of PPP
Project Owner
Project Term
Key Parameters
Capex
Project Status
1 2014
PPP in LithuaniaScope of Application
Projects scheduled for min 13 - max 25 years
Involvement of multilaterals (EBRD, NIB, CEB, etc.)
Use of infrastructure funds
Blending with EU structural funds
17
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
18
Tadas JagminasDirector
Irmantas ButkauskasPPP Team Lead
Dainius NormantasAnalyst
Juste MarcinkeviciuteProject Manager
Contact Us
19
Project Management Department at Invest Lithuania
+370 5 262 7438
+370 5 204 7812 +370 5 204 7811
+370 5 264 9078