BaltCap Infrastructure Fund and Kaunas District Municipality signed a 15-year public-private partnership (PPP) agreement to upgrade education infrastructure in towns of Mastaičiai, Kačerginė and Zapyškis. BaltCap will invest €13.6 million to revitalise two existing schools, a swimming pool and to construct a new school building and sport facilities.
“We acknowledge Kaunas District Municipality team for initiating the very first PPP project for school renovations in Lithuania. We believe it will have a significant impact on the further upgrade of education infrastructure in the country,” Sarunas Stepukonis, partner at BaltCap Infrastructure Fund commented. “This project will improve the quality of educational and social service as well as create jobs and attract much needed investment in the region during these turbulent times,” Stepukonis added.
The upcoming project aims to increase the energy class of the existing school buildings as well as to expand and modernize the sport facilities. The project creates an additional capacity for serving 500 pupils in the neighbouring districts and allows local schoolchildren avoid daily commuting to faraway schools.
“Kaunas district is rapidly growing and we optimize and expand the network of educational institutions constantly. With rising birth rates, we are facing a shortage of capacity in kindergartens and primary schools. Kaunas District increasingly invests in education every year, but the efforts of the municipality alone are not enough. This problem needs to be addressed immediately, because children cannot wait. We hope that the partnership with private sector will help us to move forward faster," Kaunas District Mayor Valerijus Makūnas said.
The project is carried out in partnership with 2L architects. Design and construction works are planned to begin this summer and be completed by autumn 2022 in all towns. Technical maintenance service over the 13-year operational phase will be provided by Yglė Pastatų Valdymas.
This is the BaltCap Infrastructure Fund’s (BInF) third investment in education infrastructure over the last two years. Previously, the fund invested €11 million in a 7,500m2 greenfield school in Vilnius, and €4.1 million in 2 schools, sports and culture centre renovation in Mielno, Poland.
The €100 million BInF has a length of 20 years and it was established for investments in infrastructure development in Lithuania, Latvia, and Estonia.
Investors in the fund include all the largest pension funds in the Baltic States, a life insurance company and other institutional investors. Lithuanian, Latvian and Estonian pension funds account for 60% of investments in the BInF, marking the largest-ever commitment by local pension funds to any single fund in the Baltics to date. The European Bank for Reconstruction and Development and European Investment Bank have each committed €20 million to the fund. European Investment Bank financing is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker’s Commission Investment Plan for Europe.