COBALT advised SEB & VIPA on financing the PPP project of BaltCap and Kaunas District Municipality for the upgrade of educational infrastructure
2020 - 12 - 31
COBALT advised SEB & Public Investment Development Agency (VIPA) on financing the PPP project of BaltCap Infrustructure Fund and Kaunas District Municipality for the upgrade of educational infrastructure. A loan of EUR 8.4 million will be used to finance the renovation of schools operating in Zapyškis, Kačerginė and Mastaičiai in Kaunas district, and the modernization of Mastaičiai swimming pool.
After the renovation, the schools will be able to educate an additional 500 students from the surrounding areas, so they will no longer have to go to schools far from home on a daily basis.
This loan is the first loan agreement of the Municipal Building Fund (SPF) financed by the European Regional Development Fund, which is also directly financed by VIPA.
“The population of Kaunas district has increased by almost 10% during the last five years – 8 thousand permanent population, so it is natural that the number of schoolchildren is increasing, and the older local schools cannot always meet their needs. By financing modern A energy class infrastructure that meets modern sustainability standards, we are also investing in the modern education of the younger generation. In addition, this project will undoubtedly create new jobs in Kaunas district and attract new investments,” says Vilius Juzikis, Director of SEB Bank’s Business Banking Department.
“This is the first complex school renovation project in Lithuania, implemented using the public-private partnership format. The project, with a total value of more than EUR 13 million, is, in a sense, a walk in an unexplored area, so the decision of SEB and VIPA confirms that this model is economically reasonable and promising. I am sure that the project will be implemented on time and with high quality, and that its success will set an example for other municipalities. I understand that the improvement of the education system is a very complex process, but the infrastructure should not be underestimated – its quality has a significant impact on education and student results,” said Šarūnas Stepukonis, a Partner at BaltCap Infrastructure Fund.
The COBALT team drafted contracts and other related documents, prepared the legal opinion, and provided general advice on financing. The team consisted of COBALT Partners Simona Oliškevičiūtė-Cicėnienė, Eva Suduiko, Managing Associate Aušrys Šliavas, and Associate Ignas Jurkynas.