Upload
samantha-lowe
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
1
Supporting PPP for infrastructure projects in the City of Vilnius
Mrs. Ruta Vainiene Adviser to the Mayor of theCity of Vilnius
October 10th, 2006 European Commission
2
Contents:
• Region overview……………………………………...p. 3-5• Reasons for the PPP……….............................p. 6• Present and future projects………………..…….p. 7-13• Conclusions.…….…………………………………....p. 15-16
3
Vilnius – Regional leader
4
Number of residents within the 300 km distance
307
*4 h 350
280
170
460
Helsinki
Saint PetersburgTallinn
Vilnius
Riga
Minsk
Warsaw
DIstance, km)
5
- According to “Financial Times”:
Vilnius and Kaunas Region –European Region of the Future 2006/07
Vilnius – Future City of the Baltic Region 2006/07
(European Cities & Regions of the Future, “Financial Times fDi” competition)
- Standard &Poors:
credit rating BBB+ / Stable (July 2006)
- European Capital of Culture 2009
- Host of European Men’s Basketball Championship 2011
fDi editor Courtney Fingar, Mayor of Vilnius Arturas Zuokas and Saulius Lukosius, head of strategic planning for Kaunas municipality at the award ceremony
We are:
6
Reasons for PPP in Vilnius:
• Modern way to solve old problems• Estimation of the project’s viability• A viable alternative where
privatization is impossible• Out-of-budget liabilities
7
Long term lease of Vilnius’ heating networks
An urgent need to renovate City’s heating system in order to make the heat consumption more efficient
- About 163 mln. EUR to be invested to the heat system of Vilnius during 15 years;- More than 195 000 flats administrated in Vilnius region;- More than 2880 heating stations renovated since 1 of February 2002, 76 mln. EUR invested.- The city receives 10 mln. EUR rent payment; - The lowest heat price in Republic is 0,03 EUR/kWh without VAT. Residents of Vilnius city save upto 1,7 mln. EUR annually
8
Vilnius Entertainment Park – the newest entertainment center
Construction of Siemens Arena allowed Vilnius to host European Men’s Basketball championship in 2011
Investments in to the Park:
I Stage - SIEMENS Arena (capacity upto 12 000 seats): upto 19,5 mln EURII Stage - Water entertainment park: up to 13 mln. EURIII Stage “Ozas” family entertainment and shopping centre – upto 40 mln. EUR
Municipality has invested into infrastructure - 2 mln. EURPlanned investments for 2006-2007 period – upto 8,7 mln. EUR
9
Project was initiated in order to reform one of the most complicated social spheres
- Concession period – 25 years- Private investment –4 mln. EUR- Tenders started in August and September 2006- Health care services remain free of charge (at current level)
Concession of the health care services in two Vilnius’ clinics
10
80 % of schools’ and 99 % of kindergartens’ buildings are in poor condition
- 15 educational institutions in the pilot project- Expected private investment – over 30 mln. EUR- PPP scheme on public procurement basis for 30 years period
Renovation and long-term maintenance of Vilnius’ educational institutions
11
Modern Tram line
Solving traffic jams and ecological problems in the city centre; part of the modern European city image
up to 100 mln. EUR investments, one line - 12 km length
Concession period – 25 years
Contribution of the City – 30-50 percent of CAPEX
Availability of EU support - questionable
12
HALĖ market-place
Newly renovated old market place with a new modern equipment and an expanded parking-plot
Market place leased for 20 year periodOpened on 10th May, 2006Investor:Invests over 6 mln EURReconstructed and installed parking-lotOperates the marketPays annual fee to Municipality – 320 thous EUR
13
PPP in waste treatment:Site for construction waste and
Site for medical wasteUntil 2003 there was no such modern construction waste treatment site, thus causing huge environmental problems for the cityLand leased for 14 year periodInvestor:Invested over 1 mln EUROperates the sitePays annual fee to Municipality – 5 percent from income (52 thous. EUR in 2005)
An urgent need to solve the medical waste treatment in the region and the countryLand leased for 25 year periodOpening in Summer 2006Investor:Invested over 3 mln EUROperates the sitePays fixed annual fee to Municipality 43,5 thous. EUR
14
Conclusions:
• More than the possibility to have funds out of the balances, increase them and fit in to the debt limit
• Better management – better services• Real responsibility• Risk transferred• Information asymmetries avoided• Expanding private initiative• Educational role
15
PPP is:
Best or second best solution (?)
16Visit us at
www.vilnius.eu
Thank you for your attention!