Construction, Forum, Legislation, Lithuania, Real Estate, Tourism

According to Prime Minister Algirdas Butkevicius, the lack of a large conference centre in Vilnius is an obstacle for tourism development and Lithuania's competitiveness growth. He says the reconstruction of Vilnius Palace of Concert and Sports would not only bring to life a historically important building, but would also contribute to competitiveness growth in the area of business tourism.

On Tuesday the Government will consider entrusting state enterprise Turto Bankas (Bank of Property) with the implementation of the project using European Union structural fund support.

Finance Minister Rimantas Sadzius said that the European Commission would be addressed in order to determine the extent in which the state would have to contribute.

Based on a feasibility study, the reconstruction of the building could cost up to EUR 20 million. It has not been agreed yet when the building will be acquired from its current owner investment company UBIG.

The reconstruction should be carried out in 2016-2017 and the building would open in 2018.

It is estimated that after the building is suited for conferences, seminars, cultural events and concerts, income will amount to EUR 110 million in 15 years.