On 8 May, Minister of Finance Rimantas Šadžius, Minister of National Defence Dovilė Šakalienė and Vice-President of the European Investment Bank (EIB) Thomas Östros signed an agreement on cooperation in the development of the Rūdninkai military base near the border with Belarus. The EIB will provide advisory services to ensure that the project’s public-private partnership agreements meet market standards. The EIB is also assessing opportunities to provide financing for the implementation of the project itself.
“The project of the Rūdninkai military base is a very important step in increasing Lithuania’s resilience to external threats, but also a significant challenge for our country, both financial and technical. I am pleased that from the very first stages of the project we have reliable partners on whom we can rely. We are already seeing our results of financial diplomacy and we can confidently state that the EIB’s involvement will give this project even greater momentum. Moreover, the project will contribute to minimising the risk of financing a billion-value project, which is likely to reduce the State budget expenditure,” Minister of Finance Rimantas Šadžius stated.
The advisory accord is part of the EIB’s recently expanded commitment to security and defence, broadening its scope to include military investments that align with the European Union’s goals of bolstering preparedness and crisis management. Additionally, the EIB is assessing potential project financing for the military base, which is expected to cost around EUR 1.2 billion.
“The EIB’s unwavering commitment to Europe’s security and defence is exemplified through our advisory support for the Rūdninkai military base,” EIB Vice-President Thomas Östros said. “By ensuring this project is well-structured and financially viable, we aim to strengthen Europe’s defence infrastructure and stimulate economic growth.”
The Ministry of National Defence of the Republic of Lithuania plans three PPP agreements to establish the military base in Rūdninkai, which is located about 23 kilometres south of Vilnius and will support the deployment of a German military brigade under NATO. The base will accommodate up to 4,000 troops and civilians, including infrastructure to service the German brigade, which will consist of up to 500 personnel. Construction of the Rūdninkai base is planned to start in 2026, and the base is expected to be operational at the beginning of 2028.
The EIB will provide advisory support for the review of draft agreements to ensure that they meet international standards and are attractive for bank financing. These advisory services will also be provided at all stages of the procurement process.
“This agreement with the European Investment Bank provides more opportunities for businesses to participate in the development of our military infrastructure in Rūdninkai. It is a priority project of our ministry, and its swift implementation will enable the timely and full deployment of the German brigade in Lithuania,“ Minister of National Defence Dovilė Šakalienė stated.
The EIB Group expects a pipeline of defence projects – including funding for the planned Rūdninkai base – to be approved in the coming months.
The signing ceremony was also attended by Neringa Pažūsienė, Head of the Public-Private Partnership Division at the Central Project Management Agency (CPVA). CPVA has been supporting the Ministry of National Defence from the start of the Rūdninkai project by providing legal, financial and technical expertise. The agency is also working with the EIB on reviewing the PPP agreements.
In addition to Rūdninkai, CPVA continues to advise on the implementation of similar PPP projects for military bases in Rokantiškės (Vilnius district), Pajūris (Šilalė district), and Šiauliai district.
Background information:
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core EU priorities: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
Last year the EIB Group’s financing in Lithuania amounted to EUR 449 million, spurring business investments and accelerating the country’s green transition. All projects financed by the EIB Group are aligned with the Paris Climate Agreement, as set out in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects that contribute directly to climate change mitigation, adaptation, and a healthier environment.
In addition to financing, the EIB offers advisory services that help public and private partners develop and implement high-quality, investment-ready projects. In 2024 alone, our advisory teams helped mobilise over EUR 200 billion of investment across Europe and beyond.
