Lithuanian construction companies Merko Statyba and the joint venture Rudina – formed by Conres LT and Fegda – are leading the second phase of the Rūdninkai military town project, valued at around €1.8 billion, according to Verslo žinios. The latter company’s links to the ruling Social Democratic Party has raised concerns among opposition politicians.
Documents obtained by Verslo Žinios show that Rudina won the A portion of the competition with a bid of €348.36 million, while Merko Statyba secured the B and C portions with offers of €280.43 million and €322.8 million, respectively.
Other competitors for the A portion included Eika Group’s subsidiary PPP1, which proposed €361.4 million. In B and C portions, five companies competed, with bids ranging from €354.7 million to €389.6 million for B and €359.9 million to €436.7 million for C.
Fegda previously built a reinforced concrete road at the Rūdninkai site in 2023, but defects were reported. In late November, the company agreed with the Ministry of Defence’s Infrastructure Management Agency and the Lithuanian Armed Forces to correct the defects or construct a new road at its own expense, following independent expert recommendations.
Political links
The company has faced scrutiny for its political connections: Fegda’s former commercial director is Mindaugas Sinkevičius, chairman of the Social Democratic Party. Former Defence Minister Dovilė Šakalienė has suggested placing Fegda on a “blacklist” of suppliers, potentially barring it from future public tenders.
Opposition politicians say the developments cast a shadow over the project. “Given the links between this company and the Social Democratic Party, these results undoubtedly put a shadow over this huge strategic project,” said Laurynas Kasčiūnas, leader of the opposition conservatives Homeland Union (TS-LKD) party, adding that he and his colleagues will review the situation and notify relevant authorities.
Meawhile, Defence Minister Robertas Kaunas said that none of the institutions vetting the bids raised any concern about any of the companies.
“None of the companies and their partners that participated in the tender raised any doubts for the Special Investigation Service, the Second Department of Operational Services (AOTD), the Prosecutor General's Office, or the Public Procurement Service,” Kaunas told reporters Friday.
He warned that raising baseless speculations may discredit the entire project of the Rūdninkai military town, which is intended to host the German brigade.
Contracts to be signed this month
The Ministry of Defence said Friday that contracts with the selected contractors for the second phase are expected to be signed before the end of the year. Bids were submitted by Eika Group, Merko Statyba, Naresta, Conres LT with Fegda, Veikmės Statyba, and YIT Lietuva.
The second phase, announced in March and extended until June 9, is being developed through a public-private partnership (PPP) and divided into three parts to reduce state risk. Individual segment costs are estimated at about €400 million, with total state commitments projected at €1.8 billion, including VAT.
The Rūdninkai military town in Šalčininkai district is being built to accommodate a German brigade by the end of 2027. The first €125 million phase is already under construction by Eika Construction. The full complex will occupy approximately 190 hectares.
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