Lithuania, Real Estate

The programme involves the construction of a new remand prison on the outskirts of Vilnius, the completion of Pravieniškės Prison, and the construction of new remand prisons in Šiauliai, Klaipėda and Panevėžys on a PPP basis.

It is estimated that over EUR 34 million will be allocated for these projects by 2022. Of this, more than EUR 30 million will be from state budget funds, with the remaining EUR 3.5 million coming from Norwegian Financial Mechanisms. However, these funds do not include projects that could be implemented on a PPP basis.

The state budget funds will be used to reconstruct the buildings of Pravieniškės Correctional Facility/Open Prison, Alytus Correctional Facility, and Kaunas Juvenile Remand Prison/Correctional Facility. The Prison Hospital in Vilnius will be relocated to Pravieniškės, and the hostel for convicts of Marijampolė Correctional Facility will be renovated into cell-type premises.

According to Jonas Kimontas, project manager at Invest Lithuania, a government agency responsible for attracting foreign investment and PPP promotion, the Prison Modernisation Programme opens up great opportunities for PPP projects. “The programme accommodates four PPP projects attractive to investors. We can see that they are already generating interest and we expect that competent companies with expertise in such projects will ensure proper competition during the tenders”, Mr Kimontas said.