In the EIU’s 2012 Infrascope, Lithuania ranked second among its peer countries (EECIS), reflecting a comprehensive legal framework and political support for PPPs.
PPPs at the national and municipal level in Lithuania are regulated by the Law on Concessions (1999, amended 2011), the Law on Investments (1999, amended 2014), the Law on Public Procurement (1996) and the Resolution on Public-Private Partnership of the Government of Lithuania (2009). The latter was amended in 2015 to improve project implementation procedures. In the EBRD’s Assessment of Concession Laws,
Lithuania’s legal framework was considered highly compliant and the government continues to improve it. For example, the government recently amended the Law of Investments to allow and regulate unsolicited proposals.
Institutional roles are clearly defined and delegated to multiple bodies, including Invest Lithuania (under the Ministry of Economy) and the Central Project Management Agency (under the Ministry of Finance). Since 2010, Invest Lithuania advises and facilitates projects initiated by central and local governments, advises investors on participation in PPP projects, and provides information and on-going communication support. The Central Project Management Agency advises the public sector on the systematic implementation of PPP projects. It also acts as the approval body for PPP projects.
Lithuania has conducted PPPs primarily on the municipal level in the energy and transport sectors, and in social and urban infrastructure. Like other EU member states, Lithuania has made use of EU structural funds for PPPs. While the majority of projects are service concessions mainly owned by municipalities, there are three PPP contracts in operation. Vilnius Balsiai School, a 25-year Design-Build-Finance-Maintain (DBFM) PPP project, has been operational since 2011. In 2013, the pilot 25-year DBFM Palanga Bypass reached financial closure and has been operational since 2015. The most recent DBFM PPP project to reach financial closure (2015) is the 18 year Vilnius Police Infrastructure project.
As of July 2016, the country’s PPP portfolio includes two projects in the procurement stage, three projects in the pipeline and two projects in the conceptualization stage.
The Global Outlook PPP Projects 2016 recognized Lithuania’s experience in preparing, structuring and advertising projects, and its active pipeline, attested by growing interest from foreign investors.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.
Emerging best practices demonstrate the power of partnerships
From Handshake Issue #15: Connectivity
Utilities that share their infrastructures will help reduce the costs and time to deploy telecommunications networks. Governments that create an enabling environment and support partnerships to share infrastructure will help to expand the reach of the Internet, connecting more people to economic and knowledge opportunities around the world.
Connecting to cyberspace requires an immense physical infrastructure. The telecom networks on which the Internet runs are built using thousands of miles of fiber optic cables—overland and submarine—and hundreds of towers carrying antennas. So expanding the reach of the Internet implies significant civil works to create ducts and towers that carry those...