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Lithuanian airports bring in consultants to assist in the concession project

Last week Lithuanian airports announced a public tender regarding the advisory services for the concession project. The consultant is expected to advice on all financial, tax, legal and technical issues arising in the drafting of the concession project. It is planned that Lithuanian airports will commence work with the selected consultant from Lithuania or abroad starting with January next year.

The consultant will draw up the required concession tender documentation which is planned to be launched in the middle of 2016. It is sought that in the project important to the country's air gateways the services would be provided by a qualified and experienced team of 11 persons – project manager, airport infrastructure development expert, legal experts in airport concession projects, legal experts in infrastructure projects, financial experts, technical experts and transport infrastructure development expert.

"Lithuanian airports, in particular Vilnius Airport, will soon reach the limit of the passengers handled; therefore, to exploit and expand the available potential and to service even more passengers as well as to attract new airlines, we need a private investor. We are carefully preparing for a concession and looking for competent partners. We wish to have experts experienced in the management of important and large-scale projects that would assist us throughout all stages of the project,” said Eugenijus Kaziliūnas, Head of Airport Network at Lithuanian Airports.

The terms and conditions of the open tender indicate that within the past three years the candidates to the consultants of Lithuanian airports must have implemented at least one advisory services contract in a concession project. The consultant’s services must have covered the concession project’s feasibility assessment, drawing-up of tender terms and conditions, representation in negotiations, signing of a consulting agreement and its entry into force as well as financial close. The value of advisory services provided in the framework of the concession project previously accomplished had to be no less than EUR 2 million.

The methodology related to concession tenders, international good practices, equivalent concession projects, legal acts governing project related issues and other project relevant information will also be taken into account in the service provision.

The procurement contract is expected to be trilateral - the successful tenderer will sign a contract with Lithuanian airports as well as the Ministry of Transport and Communications of the Republic of Lithuania.

The Lithuanian Government’s Strategic Committee essentially agreed to the development of infrastructure and services of Lithuanian airports in the way of a concession at the end of June. The successful concessionaire would be entrusted the development of all three national airports - Vilnius, Kaunas and Palanga. The management and development of each airport would be regulated separately by a contract with due regard to the existing airport infrastructure, its condition and composition, operating model, the airport’s regional and national importance, and the interests of the interested parties. The Lithuanian Ministry of Transport and Communications or its assigned economic operator, e.g. Lithuanian Airports, would supervise and control the proper fulfilment of the concession contract as well as the concessionaire’s obligations. At the end of the concession period the state would take over the state property expanded and improved by the concessionaire for its management and use.