Public-Private Synergy: How can we work and create value together?
On May 30, 2024, the Baltic Real Estate Investment Forum took place. One of the forum's discussions focused on the collaboration between the public and private sectors. Neringa Pažūsienė, a Public-Private Partnership (PPP) expert from the Central Project Management Agency (CPVA), participated in this discussion.
The discussion highlighted that while PPPs can be complex and require extensive knowledge from the client’s side, they also offer significant opportunities. Long-term contracts involved in PPPs might face termination pressures due to changing political cycles. However, PPPs become particularly advantageous when access to borrowed capital decreases and interest rates rise.
Research conducted in 2022 showed that Lithuania needs €62 billion to achieve its 2030 targets, but the state budget, EU support, and other funds only cover €18 billion. This leaves a financial gap of over €39 billion. In this situation, PPPs are crucial.
“From the CPVA perspective, it is evident that both the public and private sectors are improving every year. The quality of projects is certainly on the rise. I believe that long-term planning and a clear PPP pipeline will help investors and potential partners evaluate their capabilities and potential innovations in providing both technical and financing solutions for PPPs,” N. Pažūsienė said during the discussion.
