Rūdninkų military base secures €369 million in financing from EIB, SEB, and Swedbank

The European Investment Bank (EIB), SEB Bank, and Swedbank have agreed to provide €369 million in loans to Merko statyba, an Estonian-owned company, for the construction of the second phase of the Rūdninkų military training ground in Lithuania, LRT reports.

The financing will be split between two parts of the project. EIB and SEB will each contribute €86 million for one section, while EIB and Swedbank will provide €98.4 million and €98.5 million, respectively, for the other. The loans have been secured through VPSP B and VPSP C, companies established for the construction and supervision of the Rūdninkų military base.

EIB Vice President Karl Nehammer stated that the Rūdninkų military base is a critical project for European defense infrastructure, strengthening NATO’s eastern flank.

Ignas Mačeika, head of corporate banking at Swedbank Lithuania, noted that the bank has already financed over €400 million in projects supporting Lithuania’s defense. He described the €196.9 million financing, provided jointly with EIB and Swedbank Estonia, as a contribution to strategically important projects and an example of effective public-private partnership.

Tadas Jonušauskas, head of SEB’s corporate banking service, said the bank’s financing for part of the Rūdninkų military base project is a direct contribution to Lithuania’s security and the strengthening of NATO’s eastern flank.

Merko statyba has selected real estate company Kapitel as the project investor and future manager of the military base’s infrastructure. Merko statyba will retain a 30% stake in the project companies and the company providing building management and supervision services, continuing as the main design and construction contractor.

Earlier this year, Rudina, controlled by Conres, INVL Asset Management, and Fegda, was awarded the contract for one part of the second phase of the Rūdninkų military base in the Šalčininkai district, while Merko statyba secured contracts for two parts. Under 15-year public-private partnership agreements, Rudina will receive €487.61 million (including VAT) for its construction and supervision work, while Merko statyba will receive €393.25 million and €453.5 million, respectively. Payments will begin upon completion of construction.

The project is being developed through a public-private partnership and divided into three parts to reduce risks for the state. During the second phase, facilities for troops will include residential quarters, garages, workshops, dining halls, warehouses, parade grounds, headquarters, and fuel stations. Training facilities with modern simulation systems are also planned.

The military base in Rūdninkai will cover 190 hectares and is being built to enable Lithuania to host a German brigade by the end of 2027.