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Lithuania invites Marvele port PPP feedback

The country’s Ministry of Transport and Communications is seeking market views on the project to build a new cargo port in Kaunas.

Lithuania’s Ministry of Transport and Communications has launched the market consultation phase for the planned Marvele port public-private partnership (PPP).

The Ministry, which is the contracting authority, has prepared draft tender documents and is inviting parties to express their interest and provide feedback until 8 May 2015.

Located on the River Nemunas in Kaunas – the country’s second-largest city – the planned cargo port forms part of the government’s strategy to reduce road freight, thereby improving air quality and reducing congestion. The port is expected to have potential turnover of 1 million tons per year.

The project involves two stages. The first, due to be completed by July this year, is a traditional procurement funded by the state and the European Union; while stage two is a PPP concession.

The concession involves responsibility for building infrastructure, repairs, maintenance, mooring of barges, loading of cargo, renting warehouses and other related services over a period of up to 25 years.

The state has agreed to provide funding of up to €85 million over the course of the concession, while an investment of at least €11 million is expected from the private partner.

“Marvele cargo port is an exceptional project,” claimed Tadas Jagminas, director of the project management department of government agency Invest Lithuania, in a statement. “Therefore, we anticipate active participation in the market consultation as well as a successful tender in the future.”

In 2013, Lithuania was ranked first in Central and Eastern Europe by the European Bank for Reconstruction and Development for its PPP regulatory framework and second for its PPP environment in general.

The country has a comprehensive PPP programme under way covering sectors such as roads, ports, prisons, courts, parking, police buildings, schools and street lighting.