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Vilnius has decided: the multifunctional complex will serve the needs of sport and culture

Planning the construction of the Multifunctional Complex the Council of the City of Vilnius decided – the Complex will serve the needs of sport, education and culture, while the idea of the development of the commercial immovable property part was abandoned. The adjusted project now will be even more beneficial for the society, with the targeted social purpose of the facilities being a priority, rather than the commercial operations of the future concessionaire nearby the complex. However, the decision taken retains all the principal provisions regarding the method of concession and the implementation of the project jointly with the Physical Education and Sports Department.

‘The purpose of the municipality is to ensure that the model of the Multifunctional Complex is financially sustainable and compliant with all the relevant legal acts. We expect that the adjusted project will be attractive to a widest possible range of investors both in Lithuania, as well as among foreign companies. It is only by way of competition that we can achieve the implementation of the project at most optimal costs, says Alma Vaitkunskienė,  Director of the Administration of the City of Vilnius.

The concessionaire recognised as the winner of the tender will be allowed to engage in activities related to designing, construction, operations and maintenance, management and use at sport facilities dedicated for informal education, such as basketball and handball halls, football fields, athletics stadium etc.  The Council decided to reserve a possibility to reduce the scope of the project or introduce additional functionality in the Complex itself by optimising the infrastructure should it become known that the income generated from the operations is insufficient.

The decision was passed taking into account the evaluations of the project by a PE Invest Lithuania, and a law firm Valiūnas ir partneriai Ellex. In the opinion of the experts having decided to decline the plans of a private partner’s commercial immovable property development, the project could be implemented by providing to the private partner a possibility to use the informal education infrastructure at the time it is not used by the municipality.

In case in the course of the tender for the selection of the private partner it becomes evident that even that arrangement is not sufficient to secure the required share of the Complex’s financing, the decision of the Council provided for a possibility, by way of a tender, to optimise the volumes of the premises’ infrastructure. This would reduce the Complex’s maintenance costs, making the City’s defined investment of EUR 500,000 per year a sufficient funding.

In cooperation with the Department the City of Vilnius will launch a concession tender and sign a private contract with a private investor. The contract between the City of Vilnius, the Physical Education and Sports Department and the private investor will be concluded for 25 years.
The multifunctional complex on Šeškinė hills will be dedicated to promote wellness, education, culture and busyness. The Complex will contain a stadium of a capacity no less than 15,000, a sport museum. The Complex will also house a kindergarten for 300 children, no less than three football fields, an athletics stadium, sport halls, a library, an information centre and the a centre for cultural and educational activities.

The assets of the Complex will be a property of the City of Vilnius.  The Multifunctional Complex is a unique project implemented for the first time ever in Lithuania. The investment value of the project is EUR 79.1 million, including EUR 33.6 million from the EU, co-funded by EUR 2.9 million from the City’s resources.

Marketing and Communication Division, vrt@vilnius.lt