Lithuanian Airports to issue new tender for construction of new Vilnius Airport terminal

Credit: Lithuanian Airports

Lithuanian Airports has announced that it has agreed with construction company Mitnija to terminate the contract for the construction of a new passenger departure terminal at Vilnius International Airport (VNO).

Such a decision was made because the financial challenges in the aviation sector as a result of the COVID-19 pandemic aggravated the search for project funding and prevented the timely start of the project, as construction work for the new terminal at Vilnius Airport has been suspended for more than four months.

As a result, Lithuanian Airports plans to immediately publish a new international public procurement procedure to select a new contractor and ensure the continuity of the project.

According to Marius Gelžinis, CEO at Lithuanian Airports, difficulties in relation to the funding of the construction of a new departure terminal were due to the challenges in the aviation sector, including at Lithuanian Airports, caused by the pandemic. However, according to Gelžinis, currently, partial funding of the project from the Nordic Investment Bank has already been secured. Intensive communication with the Ministry of Transport and Communications regarding the rest of funding is taking place. A decision is expected in the near future.

“A new departure terminal is a very important project, both for Vilnius Airport and in terms of the improvement of connectivity of the entire country. It will determine our competitiveness in the region in the context of recovering aviation. Therefore, now that Mitnija has suspended its participation in the project, we are ready to continue preparatory work and immediately announce a search for a new contractor,” said Gelžinis.

Julius Gendvilis, CEO at Mitnija, says that the decision to withdraw from the project to construct the departure terminal at Vilnius Airport was made as a result of the project being suspended and the fact that construction work has not taken place for more than four months due to the prolonged impacts of the pandemic and the related challenges.

“We are upset and regret that we have to refuse the contract to construct the passenger terminal at Vilnius Airport. We really wanted this project and were seriously prepared for it. Unfortunately, a break of more than four months costs too much: the team dedicated to the project did not work; we did not receive the expected income and profit; and we could not commit to new customers. The current situation is too risky for us, especially now, when the world is still living in economic and social tension caused by the global pandemic. We sincerely wish the project to receive firm funding in the future and to be implemented. It is very important and necessary,” said Gendvilis.

Lithuanian Airports hopes that the procedures of the prospective international public procurement will go smoothly. Therefore, the company plans for the contract with the new contractor selected through the required tender procedure will be signed before the end of 2021.