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Vilnius market

A. Avulis: I don't know how to build the National Stadium at a lower price

ELTA
in 2024 April 22 09:32 a.m
6 min. reading
Photo: Irmantos Gelūnos, BNS
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National Stadium from "BaltCap" taking over "Males"leader Arvydas Avulis says that even after the comments of the Public Procurement Office (VPT), ​​he still hopes that an agreement can be reached regarding the project. However, he testified that he had already made concessions and did not know how the complex could be built at a lower price.

"There are hopes, they always die last. We still believe that a reasonable agreement can be found, especially since the comments submitted by the Public Procurement Service are not ones that cannot be taken into account," A. Avulis told "Žiniai Radio" on Monday.

"The point is very simple, we have calculated how much we can build this complex for." The VPN claims that Vilnius city municipality could have negotiated better. Our negotiations with the municipality went quite hard, as much as we could, we made concessions, I just can't continue, I don't know how to build at a lower price", he explained.

A. Avulis noted that VPN's argumentation is not logical, and he will not be able to make bigger discounts on the price. He also reminded that after VPT already stopped the execution of the concession contract once, the cost of construction increased by 7 million during the period of disputes in the courts. euros.

"When VPT raises the question of whether there could be even bigger discounts from the concessionaire, I don't have such discounts. (…) There is no logic there, we go through the logic and provide arguments that if the prices increased by 43% during that period, and the municipality only agrees to 27%. to compensate them, this is a compromise here," said Hanner's manager.

"VPT puts the numbers on the shelves in such a way that they say that the concessionaire could have taken on more, but on the other hand, we also have quite strong arguments that it is VPT in 2020." stopped the process, the execution of the concession contract, and then there were trials for a year and a half. They ended with the signing of the concession agreement. But during the period, while the dispute was going on in the courts, the cost of construction increased by 7 million. euros", he noted.

However, Hanner's manager assures that there is still room to find an agreement on the project.

"The municipality has the goal and desire to have a sports complex, (...) to complete this project and it is clear that they are looking for a compromise and an agreement. I think there is still that space", said A. Avulis.

"If I am not allowed to work, how can I build the stadium by 2026?" the end They would say no (it is not possible to build - ELTA), this is also a very good answer, we all thank each other for the attention shown, we separate and go to work on our jobs", he asserted.

A. Avulis says that a meeting should take place in the near future between Vilnius city municipalities and VPN and if the service agrees with the proposed solutions, it will be possible to move on.

"As far as I know, there should be a meeting between the municipality and VPN, and the Vilnius city municipality should present how it should correct the comments it received from VPN. If VPT agrees with the proposals, proposed solutions, then it will be possible to move on," said the head of "Hanner".

"But due to the fact that the contract has moved a little, we have to go to the municipal council again and get approval for the new numbers from the Vilnius City Council. After that, if the council approves, a new concession contract must be signed and VPT once again has the right to submit its comments," he explained.

Finally, the head of "Hanner" said that he is "a little ashamed" that Lithuania is unable to build a stadium.

"The process is endless, and for me as an entrepreneur, such processes become more and more interesting. (…) I am a bit ashamed that after achieving so much, we are in Lithuania and we are not able to build a stadium", he said.

VPN reported last week that National Stadium the draft amendments to the concession contract lack the validity of the price calculation, so the Vilnius municipality and the Ministry of Education, Science and Sports (ŠMSM) risk overpaying. Also, according to the institution, it is not clear why the risk of price increase is not shared among all parties, and the responsibility is completely transferred to the municipality and the ministry.

Vilnius city mayor Valdas Benkunskas stated that the VPN's conclusion on the National Stadium concession agreement shows that the project can be continued. At that time, A. Avulis said that VPN's comments do not change the plans to complete the decades-long project.

ELTA reminds that at the end of February, the Vilnius City Municipal Council approved the changes foreseen in the multifunctional project of the capital.

The real estate development company Hanner intends to take over the project of the national stadium in Vilnius from the capital fund manager BaltCap. Its owner, Arvydas Avulis, indicates that the construction of the stadium could be completed by the end of 2026. According to the mayor of the capital Valdas Benkunskas, the actual cost of construction alone from 2020 beginning until 2022 increased by 40 percent.

The whole multifunctional complex consists of National Stadium with a sports museum inside, a sports center with basketball, handball, gymnastics, and boxing halls, three football training fields, an international category athletics stadium with a football field, an athletics warm-up zone with throwing sectors, a cultural center with a library and a kindergarten for 300 children.

According to V. Benkunskas, after indexing, the National Stadium with the entire multifunctional complex should cost approximately 1,2 million. euros more than previously planned, i.e. 157,2 million. euros. It is estimated that construction works became more expensive by 27,1 million. euros, new works would also contribute (3 thousand additional seats in the stadium and a universal arena), that is 13 million. euros. However, it is stated that 38,1 million euros could be saved by borrowing for only 2 years, instead of 22 years, as previously planned.

Before resuming construction, the municipality will still need to receive a positive conclusion from the European Commission.

Ignas Dobrovolskas (ELTA)

TAGS:Arvydas AvulisNewStadium
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