After the European Commission (EC) gave the green light on Thursday for the construction of a multifunctional complex with a national stadium in Vilnius, the mayor of the capital Valdas Benkunskas says construction should be completed in about 2,5 years, or sooner than the planned 31-month deadline.
"The timer for completing the construction itself started yesterday (Thursday – BNS), so we have 31 months and 31 days to complete everything down to the last detail and hand it over to the municipality and the ministry (of Education and Science – BNS). This is despite the fact that negotiations are ongoing, but the timer is ticking," he told reporters on Friday. V. Benkunskas.
"As far as we know from the builders, it really won't take that long, the project itself could be completed much faster, perhaps in 20 or 22 months, but first the work has to resume. We hope that there will definitely be movement at the construction site before summer starts," the mayor said.
The EC on Thursday announced a long-awaited positive conclusion on amendments to the complex's construction concession agreement, which provides for state aid for the project.
V. Benkunskas did not predict when the first matches could be played at the stadium - according to the mayor, this would become clear after a work schedule is drawn up and technical work projects are prepared.
"We will definitely present the projects and schedules. It's still too early to say what the exact date will be. We're talking about about two years, maybe a little less," said the city mayor.
According to the head of the capital, the current concessionaire of the project is the company "BaltCap" and the real estate development company taking over the project from it "Males" will have to agree on the acquisition of shares in the company "Venetus Capital".
"A letter was sent to the concession company today stating that the EC notification condition has been met. Now other procedures must be carried out. In this case, negotiations are a matter for businessmen, we are definitely not interfering," said V. Benkunskas.
However, the mayor emphasized that the project's concessionaire, the company "Vilniaus māhifunksis kompleksas", owned by "Venetus Capital", will strive to complete the project as soon as possible in order to receive payment for the work.
"Especially since the concessionaire has a direct interest in completing the work as soon as possible. Because until he finishes and hands over the entire facility, neither the municipality nor the state will pay the center," said V. Benkunskas.
According to him, some of the technical parameters of the complex still need to be adjusted - the number of stadium seats will be increased from 15 to 18, and the sports center will be renovated to create a universal arena suitable for cultural and sports events.
"No purposes were changed, the changes were made as provided for in the concession agreement and approved by the EC," the mayor said.
According to him, construction of other objects in the complex can already begin, and the municipality expects to receive more precise work schedules from the concessionaire in the coming week.
Owner of Hanner Arvydas Avulis He told BNS on Thursday that he intends to start construction immediately, this summer, as soon as he takes over the shares from the former project developer, BaltCap, and completes other formalities.
He said that once the share transfer is sorted out, Hanner could begin construction in the summer, and the project is scheduled to take 30 months (2,5 years) to implement - meaning it would be completed in 2027.
Does not see any risk that the contract would need to be indexed again
When asked whether there was a risk that the contract might have to be indexed again, V. Benkunskas assured that there were no such risks, since previous changes to the contract were due to large-scale war. in Ukraine caused by high inflation and rising prices for energy resources.
"We can expect that our lives will continue more or less normally, such indexation grounds are no longer foreseen. The agreement stipulates that such indexation can be carried out once," said V. Benkunskas.
"The sooner the work starts, the less risk there will be with each day and each task completed," he added.
The EC had approved EUR 155 million in state aid for the construction of the complex back in March 2022, but new approval from Brussels was needed after the project's concession agreement was renewed last year, indexing the project's price and expanding it somewhat.
A. Avulis has said that Venetus Capital's shares from BaltCap would be bought out only when the issue of the Public Procurement Service's (PPS) findings is resolved and the amendments to the project agreement are approved by the EC.
Vilnius Municipality and the Ministry of Education, Science and Sports signed a 2021-year concession agreement with the company "Vilnius Multipurpose Complex" in October 25, and construction began in the fall of 2023 by the company "Naresta". They are currently suspended.
Author Lukas Juozapaitis
