Public-private partnership (PPP)
Development of residential, administrative and transport infrastructure at the Selonia Military Training Area, and ammunition storage facilities in Nīkrāce (PPP project)

The development of certain infrastructure objects envisaged in the plans for the long-term development of the National Armed Forces for 2025–2036 will be ensured within the framework of PPP.

Advantages of the PPP framework:

PPP project objectives and benefits for society:

• Optimization and more efficient use of financial resources – the PPP framework allows public funds to be redirected in the short term to the purchase of urgently needed technologies and equipment, ensuring the development of more financially demanding investments with the support of the private sector.

• Long-term benefits – the private partner ensures the long-term maintenance of the facilities, reducing the risks of infrastructure deterioration.

• Flexibility and innovation – within the framework of PPPs, the efficiency-driven private sector often offers solutions and innovations that would be much more difficult to implement in other circumstances.

• Economic stimulation – large-scale projects create jobs and encourage the involvement of local businesses.

Key features of the PPP project implementation:

	The Selonia Military Training Area (in the Aizkraukle and Jēkabpils regions): A 163-hectare buildable area at the military base. It will include a residential and administrative area, a canteen, a medical center, auxiliary buildings, warehouses, parking lots, a gym and a sports field, a checkpoint, a fence, as well as a heating system, water supply and internal road infrastructure.   Within the training area territory, there is a road network comprising 16 road sections with a total length of 140 km, including 23.5 km of two-way roads and 116.5 km of one-way roads, all with a load capacity of up to 70 tons. Additional infrastructure includes 9 bridges, 102 culverts and 40 crossings. Nīkrāce (Kuldīga region): Developable area 629 ha. It will include warehouses, hangars, administrative buildings, auxiliary buildings, access roads and engineering connections.
	An industrial safety certificate will be required for certain facilities.
	Procurement in the development stage – during 2026.
	Identification of interested parties – first quarter of 2026.   Qualification round – fourth quarter of 2026 (indicative).   Selection of private partner – during 2027.   Signing of contract with private partner – during 2028.
	Construction works – 2028/2030   Completion of construction – 2029/2030
	Design, build, finance, maintain (availability period up to 30 years).
	Public partner – the project is implemented by the state joint stock company “State Real Estate" on behalf of the Ministry of Defence. Private partner – a private entrepreneur selected as a result of public procurement*.
	Selonia Military Training Area: EUR 303 million (military base EUR 228 million and road network EUR 75 million).    Warehouse complex in Nīkrāce: EUR 100 million.   Total capital investment: EUR 403 million.**

*selection is projected for 2027
**estimate

Chronology of PPP project implementation
(for the latest progress on PPP implementation, see the website of the state joint stock company “State Real Estate"):

October, 2025

• An agreement on cooperation has been concluded between the state joint stock company “State Real Estate" and the European Investment Bank's PPP Expertise Centre EPEC.
   

• A memorandum of understanding has been signed between the European Investment Bank, the Ministry of Finance, the Ministry of Defence, and the state joint stock company “State Real Estate".
   

• A delegation agreement has been concluded between the Ministry of Defence and the state joint stock company “State Real Estate" on the implementation of the PPP project.

September, 2025

• A decision was made to perform financial and economic calculations in accordance with the decision of the Cabinet of Ministers meeting on 23 September 2025.  
   

• On 23 September 2025, the Cabinet of Ministers reviewed a restricted-access information report and adopted decisions supporting the implementation of a PPP framework for the construction of defence infrastructure. The PPP implementation plan, terms, and conditions are being coordinated.

July – August, 2025

• A restricted access information report has been prepared.

June, 2025

• An assessment of priority project protection sites was carried out, selecting the most suitable sites for implementation within the framework of PPP in cooperation with international experts.

May, 2025

• On May 13, 2025, the Cabinet of Ministers decides on the need to identify priority projects for implementation within the framework of PPP.

April, 2025

• The Ministry of Defence is conducting consultations on the implementation of the PPP framework and preliminary research in cooperation with national and international experts.

Partners in the implementation of the PPP project:

If you have any questions, please contact: 

• For questions regarding the implementation of PPP at the Ministry of Defense, please contact PPP advisor Dace Barkāne (dace.barkane@mod.gov.lv);

• For questions regarding the progress of PPP project implementation, please contact SRE real estate expert and PPP project manager Ģirts Zālītis (girts.zalitis@vni.lv).