PPP stages and process

3. Implementation of the PPP contract

PPP stage explanation

Once the selection of the private entity has been completed and the PPP contract has been signed with the successful tenderer and the private entity established by the successful tenderer, the PPP contract shall enter into force, with the exception of the provisions relating to the execution of the works, the provision of the services, and the implementation of the PPP contract shall begin.


Main aspects of the full entry into force of the PPP contract:

  • The parties to a PPP contract must fulfil the preconditions for the full entry into force of the PPP contract. The full entry into force of the contract, also known as financial close, can vary from contract to contract, as this period largely depends on the preconditions for the entry into force of the PPP contract set out in the contract. For complex, large scale PPP contracts, this period can be up to 180 days, while for simpler PPP contracts, especially those that do not involve investment or are equity financed, this period can be up to 90 days. In addition, the PPP contract usually provides for the possibility to extend this period.
  • The public entity must draw up and agree with the private entity an action plan setting out the actions to be carried out by each party to the PPP contract before the contract enters into full force.
  • The public entity shall translate into English the PPP contract, the financial performance model, the billing and payment procedures, the risk matrix, the list of insurance contracts, the asset lifespan annex, and the evaluation and return annex for works and assets. These documents in Lithuanian and English shall be sent via the Ministry of Finance to the State Data Agency and Eurostat for evaluation. The due date for submitting the PPP contract signed by the Ministry of Finance and its translation is within 30 days from the date of signing the PPP contract. Please note that the signed PPP contract and its English translation shall also be sent to the CPMA.
  • Together with the private entity, the public entity shall form a PPP Contract Implementation Commission. The commission shall consist of 6 representatives, equally (3 each) from the private entity and the public entity. It is recommended to appoint legal, financial and technical specialists to the commission.
  • It is recommended to coordinate in advance the frequency of the commission's meetings (for example, once a month) and the dates at least three months in advance. The meetings discuss the progress of the implementation of the pre-conditions for the entry into force of the PPP contract and the risks that may affect the entry into force of the PPP contract in its entirety.


Main aspects of implementing a PPP contract:

  • Regular meetings of the commission to evaluate the work and services provided and to address challenges faced by the parties. The meetings shall be held once every 2-3 weeks during the works and once a month during the period of service provision.
  • Works reports are a means of determining whether the work has been properly provided. The private entity shall submit quarterly works reports and an annual report at the end of the year using forms provided by the public entity. The works report, together with the work plan, which is regularly updated by the private entity, is a means of monitoring not only the level of investment being made but also whether the work is being carried out on time.
  • Service reports are a means of determining whether services have been provided properly. The private entity shall submit once a month service reports and an annual report at the end of the year using forms provided by the public entity. Some of the information in the service report comes from the registration tool. The registration tool records all employee complaints regarding the quality of service provision, indicating when the services were provided, and flagging irregularities in which zone they occurred.
  • The CPMA standard contract includes three sections, all of which regulate modifications to the PPP contract - modification of the contract, acquisition of additional works or services, and modification of works and services.
  • If modifications are made to the provisions of the PPP contract regulating the financial terms and conditions, such modifications must be subject to the approval of the Ministry of Finance.
  • Reports on the implementation of the PPP contract are submitted annually to the CPMA and the Ministry of Finance in accordance with the procedure established by the Minister of Finance of the Republic of Lithuania, which can be found here.
Last updated: 21 08 2023