BaltCap" withdraws from the National Stadium construction site

2024-02-02 19:20 © vilnius

“BaltCap” is withdrawing from the National Stadium construction.

Former Mayor of Vilnius, Artūras Zuokas, announced this on social media after a council meeting.

The construction of the arena will be taken over by the company “Hanner” led by A. Avulis.

It is said that in the near future, the concession agreement will be changed, and the construction price will be indexed.

It is planned that the number of spectator seats in the stadium will be increased to 18,000, and the age-old building should open its doors in 2026.

***

Later, an official announcement from the city municipality was also published.

Changes in the Multi-functional Complex project: the fund “BaltCap” is withdrawing, and the company “Hanner” plans to take over the project. In late February, the Vilnius City Council will vote on the indexing of the project construction and other changes.

“We have done everything necessary to ensure that the project continues to be viable and Vilnius finally has sports, cultural, event spaces, and additional social infrastructure befitting a capital city. I am confident that the complex is very important not only for Lithuania but also for the entire region. I hope that the Council will also take such a position, as next month we will present all the calculations,” said Vilnius Mayor Valdas Benkunskas.

According to the Mayor, UAB “Hanner” joined the project during a particularly challenging period: “I thank the company representatives for their promptness in reviewing the assumptions of this complex project and their willingness to take over the work at a difficult stage.”

“The National Stadium is significant not only for Vilnius and Lithuania but also for the entire region. Therefore, it is very important to find a way out of the current situation so that the project implementation continues without any setbacks,” said Minister of Education, Science, and Sports Gintautas Jakštas.

“BaltCap” plans to take over the commitments from “Hanner”

The project company “Vilnius Multi-Functional Complex” is currently controlled by a group of economic entities consisting of UAB “Venetus Capital” (98% of shares), AB “Axis Industries” (1%), UAB “Kauno Arena” (1%).

It is planned that UAB “Venetus Capital” will be able to take over the shares and implement the Multi-functional Complex project through UAB “Hanner”.

“Vilnius deserves to have its stadium; it is a matter of the city's prestige and honor. We have accepted the invitation from Vilnius municipality to take responsibility and contribute to this project. Therefore, the stadium in Vilnius will be built. Our main priorities will be transparency, direct dialogue with stakeholders, and, of course, the fastest possible start of the project works,” said “Hanner” Chairman of the Board Arvydas Avulis.

It is expected that the construction works will accelerate once the Council approves the changes to the contract.

Final numbers will be presented in February

In the second half of February, three key changes will be presented to the Council: indexing of construction prices for the objects provided in the contract, acquisition of additional works, and a shortened payment schedule.

The clauses of the concession agreement state that the financial model of the project is being refined at the moment, but there is already essential information shared about the indexing of construction prices.

The actual increase in construction costs (excluding financing and operating costs) from 2020 when the concession proposal was submitted, and 2022 when the concession agreement came into force, was 40%. The concessionaire plans to cover the 11% increase in construction costs from the original agreement themselves - these costs will not be included in the total project price. Vilnius City Municipality and the Ministry of Education, Science, and Sports plan to index the construction cost by 29%.

The expected impact of indexing will be reduced by shortening the financier's payment schedule, thereby reducing borrowing costs.

Taking into account the needs of the region, in February, the Council will also be proposed to consider the possibility of increasing the number of seats in the National Stadium by 3,000 seats (then the total number of seats in the stadium would reach 18,000). It will also be discussed to convert the sports center, which currently includes basketball courts for training, into one large universal hall with 5,000 seats for spectators instead of four courts.

The proposed changes will be discussed in committees in the near future, and the Council meeting in February is planned for deliberation.

The essential condition of the concession agreement remains unchanged: the agreement is structured in a way that until the end of construction works, the Vilnius City Municipality and the Ministry of Education, Science, and Sports will not have to pay for the project. Today, the institutions have not paid a single euro to the concessionaire, and no payments will be made until the first match is played at the stadium.

From kindergarten to the National Stadium

The entire Multi-functional Complex will consist of the National Stadium with a sports museum inside, a sports center with basketball, handball, gymnastics, and boxing halls, three soccer training fields, an international-grade track and field stadium with a soccer field, an indoor track and field warm-up area with throwing sectors, a cultural center with a library, and a 300-place kindergarten.