Today, on December 22, the Cabinet of Ministers approved the advancement of the private-public partnership (PPP) programme “Rental Housing for Latvian Professionals” in Lot 1, promoted by the Ministry of Finance, voting on the basis of financial and economic calculations and decisions taken by 7 local governments, and authorised the programme implementer SJSC “State Real Estate” (SRE) to launch a procurement procedure for attracting a private partner, informs Renārs Griškevičs, Chairperson of the SRE Board.
It gives the green light to building 1,482 affordable rental housing by 2030 for professionals in sectors that are important for the state and municipalities in 7 Latvian municipalities: Riga, Liepāja, Daugavpils, Tukums, Jēkabpils, Cēsis, and Gulbene. SRE plans to conclude contracts with local governments at the beginning of the new year. With this programme, the Latvian State will for the first time be involved in the implementation of the autonomous functions of local governments by providing its own support to assist in the provision of rental accommodation through the co-financing of an affordability payment.
This decision concludes the preparatory phase for the implementation of the PPP programme in Lot 1, where the inclusion of a certain number of land plots and housing in the project has been approved on the basis of calculations by experts from the European Investment Bank and decisions by the local governments.
“Today's government decision is a major milestone in the introduction of a modern public-private partnership model for housing construction in Latvia for the first time, with the participation of a significant number of local governments. Moreover, the programme is being implemented in close cooperation with the European Investment Bank's experts, ensuring the entry of world-class knowledge into the public sector,” said Minister for Finance Arvils Ašeradens. “The Affordable Rental Housing Programme will bring new life to Latvia's regions, improving opportunities for young professionals to move there, supporting entrepreneurship and strengthening public services. Nearly 1,500 modern, energy-efficient rental homes mean more families, more children in schools and more young professionals in our regional towns.”
“Today's government decision is an important step towards introducing a private-public partnership model in housing construction for the first time in Latvia's history. With the government's approval of the financial and economic calculations, we can move to the next stage – concluding a contract with the participating local governments to start the procurement process for the private partner next year. The aim is to create a replicable model that will enable the provision of quality, energy-efficient housing at affordable rents for the residents,” says Renārs Griškevičs, Chairperson of the programme promoter SRE.
Where and how many homes will be built in Lot 1?
The approved plan provides for the construction of housing on highly prepared land plots:
- In Liepāja (192 apartments) – at 4, 5, 6, 7 Debess Street;
- in Riga (732 apartments) – at Tīnūžu Street (without address), 39, 41, 45 Mežrozīšu Street, and 62 Ozolciema Street;
- In Tukums (150 apartments) – at 54 Smilšu Street;
- In Jēkabpils (140 apartments) at 3B Celtnieku Street;
- In Daugavpils (120 apartments) – at 103 Nometņu Street;
- In Cēsis (100 apartments) – at 45 Festivāla Street;
- In Gulbene (48 apartments) – at 2 Malienas Street.
About the programme
The aim of the programme is to provide housing at reasonable rents for professionals in sectors defined by local governments, such as teachers, medics, firefighters, police officers, military personnel, as well as in business areas essential for local governments. The pilot project is implemented on a “private partner designs, builds, finances, maintains, operates” model. During the project, the land and the housing built will remain in the ownership of the local governments, and at the end of the project they will be transferred to the use of the local governments.
In total, the programme will invest around €250 million across two lots, in cooperation with the European Investment Bank and the Council of Europe Development Bank. In parallel with the progress of Lot 1, work is underway to prepare Lot 2 for the other interested local governments.
According to the decision of the Cabinet of Ministers of 11 June 2024, SJSC “State Real Estate” (SRE) has been entrusted with the implementation of the programme in Latvia. In July of last year, SRE entered into agreement with the European Investment Bank (EIB) on the necessary financial and economic calculations and provision of advisory services. For Latvia, this was the first advisory service agreement of such scale signed with the EIB, allowing also international institutional investors to finance the construction of affordable rental housing. More information on the programme "Rental Housing for Latvian Professionals" and the timetable is available on the SRE website.
About SRE
Currently, 110 projects with a total investment of EUR 410 million are being implemented under the guidance of SJSC “State Real Estate”. SRE provides professional real estate management and administration for a total of 3,530 real estates, including 390 building and structure properties, comprising buildings with a total area of 963 thousand m2, as well as land beneath buildings with a total area of 6.21 million m2, and 3,140 land properties with a total area of 8.66 million m2. In 2024, for the fourth consecutive year, the SRE received the highest platinum award as part of the Sustainability Index of the Institute of Corporate Responsibility and Sustainability, thus confirming the consistently high level of sustainability of the management and operations of the company. The company was founded in 1996 and the Ministry of Finance is its sole shareholder.
Additional information for the media:
SJSC “State Real Estate”
Corporate Communication and Sustainability Division
Telephone +371 20235301; komunikacija@vni.lv
