New Financing Facility for the Development of Free Economic Zones, Industrial Parks and Other Industrial Areas
The Ministry of the Economy and Innovation and Viešųjų investicijų plėtros agentūra UAB (the Public Investment Development Agency,) signed an agreement on the establishment and funding of a new financing facility under the title ‘Construction of standard-type production buildings in free economic zones, industrial parks and other industrial areas’ as an incentive for businesses.
This year, EUR 31.05 million have been allotted from the state budget for this facility. Total estimated funding of the facility by the state amounts to EUR 41.4 million. The funds will be invested in the establishment of economic infrastructure and construction/reconstruction and fitting out of standard-type buildings for production and research purposes.
Aušrinė Armonaitė, the Minister of the Economy and Innovation, has said to BNS that ‘….the facility will both increase the number of investment projects in the country and enable a growth in Lithuania’s competitiveness and the economy as a whole.’ Giedrius Valuckas, the President of the Association of Lithuanian Free Economic Zones, emphasises, that ‘the facility will offer more opportunities and options to those investors who seek a quick transfer of production projects. Due to successful industrial growth, at present there is an increased demand for lease of industrial areas, therefore, the facility will enable Lithuania to attract and implement larger numbers of quick (dynamic or ‘hot’) projects.’
The new financing facility will fund costs of construction of standard-type buildings including preparations for construction, site management, installation or reconstruction of requisite infrastructure and engineering networks/systems in the land plot, and costs of other construction works directly related to the building as well as engineering supervision. The facility also covers reconstruction of a building already existing in the FEZ, industrial park or another industrial area.
Standard-type buildings are universal structures adapted for production and having developed infrastructure. Furthermore, such buildings have been designed for standardised production, with opportunities for expanding provided for. It is expected that the facility will be of particular use for investors as it will allow establishment in Lithuania’s free economic zones, industrial parks and other industrial areas right away.
Long-term (up to 15 years) preferential loans up to EUR 10 million will be granted to FEZ companies and their subsidiaries, operators of industrial parks (except for natural persons), and municipalities.
The new financing facility will be implemented according to the continuous selection principle. Applications will be received by Viešųjų investicijų plėtros agentūra UAB.