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Lithuania’s €2 Billion military Campus Faces Scrutiny Over Cost & Transparency

Vilnius, Lithuania – A planned €2 billion military campus in Lithuania is sparking controversy, with critics questioning the necessity of the high expenditure and raising concerns about potential overspending and a lack of transparency. The project, initially estimated at €995 million, has nearly doubled in cost, prompting accusations of a “money washing route” and unfavorable private partnership agreements.

Doubts Over PPP Route

Valius Ažuolas, a member of the Seimas, has voiced strong criticism, pointing to the previous government’s suggestion of utilizing a Public-Private Partnership (PPP) model for the Rūdninkai landfill development. Ažuolas argues that PPP projects often result in a 30-40% cost increase compared to direct state funding, especially considering Lithuania’s access to low-interest loans from Europe – as low as 0.2-0.5% for 40 years [1]. He questions why the state would choose a more expensive route when favorable borrowing options are available.

Allegations of Overpayment & Lack of Accountability

Ažuolas draws parallels to previous infrastructure projects, such as the Molėtai highway and the national stadium, where important overpayments were revealed. He fears that the sensitive nature of the defense project will allow for secret overspending, citing the potential for classification to shield the details from public scrutiny [1].He suggests the current process resembles a “money washing route.”

Defense of the Project & Accusations of negativity

Tho,Arvydas Pocius,former Commander of the Lithuanian Armed Forces,defended the project,accusing critics of focusing on negativity within the defense sector [1].

European Funding & Borrowing Concerns

The controversy arises as the European Commission has allocated $150 billion for defense and offered loans at exceptionally low interest rates. Critics argue that Lithuania should leverage these funds directly rather than opting for possibly costly PPP arrangements [1].

Call for Transparency

Despite supporting investment in national defense, Ažuolas emphasizes the need for transparency throughout the project’s development.He stresses that while investment is crucial, it must be conducted responsibly and with full accountability.

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