Latvia and EIB Partner to Develop Military Base and Training Area under Potential Public-Private Partnership

Latvia and EIB Partner to Develop Military Base and Training Area under Potential Public-Private Partnership

(IN BRIEF) The European Investment Bank (EIB), the Latvian government, and the State Real Estate Agency (VNI) have signed an agreement to develop a new military base and training area in Selonia, along with a storage facility in Kuldīga. The EIB will provide advisory support to assess a potential public-private partnership (PPP) model for the project — Latvia’s first in the defence sector. The initiative aims to strengthen national defence capabilities and ensure sustainable, investment-ready infrastructure. EIB Vice-President Karl Nehammer described the project as a landmark for Latvia and the Baltic region, emphasizing its role in resilience and regional solidarity. Defence Minister Andris Sprūds highlighted that the project aligns with Latvia’s Armed Forces Development Plan 2025–2036, designed in response to regional security threats. Finance Minister Arvils Ašeradens and State Real Estate Chairman Renārs Griskevičs underscored the importance of leveraging EIB expertise and PPP frameworks for effective project delivery. The initiative also reflects the EIB’s growing role in European defence and resilience projects under initiatives such as REARM Europe.

(PRESS RELEASE) LUXEMBOURG, 9-Oct-2025 — /EuropaWire/ — The European Investment Bank (EIB) has joined forces with the Latvian government and the State Real Estate Agency (VNI) to support the development of a new military base and training area in the Selonia region, along with a storage facility in Kuldīga Municipality. This initiative marks a major step in strengthening Latvia’s national and regional defence capabilities amid evolving security challenges.

The partnership was formalised in Riga, where the parties signed key documents launching the EIB’s advisory assignment to evaluate a potential public-private partnership (PPP) model for the project. The EIB will provide technical and financial advisory services to help ensure the base and its supporting infrastructure are developed according to international best practices and are attractive to investors.

“The Selonia base represents a landmark project for both Latvia and the wider Baltic region,” said EIB Vice-President Karl Nehammer. “This initiative is about more than infrastructure — it’s about resilience, readiness, and regional solidarity. Through our advisory support, we aim to help make this project sustainable, bankable, and strategically impactful.”

The project follows a request from the Latvian Ministry of Defence and would constitute Latvia’s first-ever defence infrastructure PPP. It builds on the country’s previous successful cooperation with the EIB on the Kekava Bypass PPP near Riga and complements ongoing collaboration on affordable housing programmes.

Latvia’s Minister of Defence Andris Sprūds emphasized that the project aligns with the country’s National Armed Forces Development Plan for 2025–2036, approved in 2023, which responds to heightened geopolitical threats following Russia’s war in Ukraine. “Public-private partnerships have proven to be an effective and forward-looking model for developing defence infrastructure,” he noted.

The EIB’s European PPP Expertise Centre will deliver the advisory support free of charge, assisting with financial planning, feasibility studies, and impact assessments to ensure a robust and well-structured project.

“Working with the European Investment Bank demonstrates how Latvia can leverage private sector expertise and international best practices to strengthen both our defence and our economy,” said Arvils Ašeradens, Latvia’s Minister of Finance. “The EIB’s growing presence in Latvia — with investments exceeding €330 million this year — represents a valuable contribution to our nation’s development.”

Renārs Griskevičs, Chairman of the Management Board of State Real Estate (VAS “Valsts nekustamie īpašumi”), added: “We are proud to play a key role in this strategically important initiative. Our experience in managing complex security infrastructure projects and implementing PPP models will ensure efficient delivery to the highest standards.”

The EIB’s involvement in Latvia’s defence infrastructure project reflects its expanding role in supporting European security and resilience. Across Europe, the Bank is engaged in defence-related initiatives such as barracks construction, logistics hubs, industrial capacity building, and advanced technology investments — in line with EU programmes like REARM Europe, reinforcing its commitment to the continent’s stability and preparedness.

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. We finance investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

In addition to financing, the EIB offers advisory services that help public and private partners develop and implement high-quality, investment-ready projects. The European PPP Expertise Centre is an advisory initiative of the EIB and supports the public sector across Europe in delivering better public-private partnerships (PPPs). In 2024 alone, EIB advisory teams helped mobilise over €200 billion of investment across Europe and beyond.

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SOURCE: European Investment Bank