Latvia to strengthen defence infrastructure with EIB advisory support

• Latvia to develop military base and training area in Selonia region, along with storage facility in Kuldīga Municipality.
• EIB to provide advisory services to help assess and prepare a potential public-private partnership for the defence project.
• New infrastructure to strengthen Latvia’s national defence capabilities.

The European Investment Bank (EIB), the Latvian government and the State Real Estate Agency (VNI) have joined forces to develop a military base and training area in the southeastern region of Selonia, along with a storage facility in Kuldīga Municipality. The initiative aims to enhance both national and regional defence capabilities.

The agreement was formalised today in Riga through the signature of key documents between the EIB, the Latvian government and State Real Estate, marking the official launch of the advisory assignment to assess a potential PPP structure for the defence base project. This support will help ensure the base and associated facilities is developed in line with international best practices and is attractive for financing.

“The Selonia base is a landmark project for Latvia and the Baltic region,” said EIB Vice-President Karl Nehammer. “It’s not just about infrastructure – it’s about resilience, readiness and regional solidarity. The EIB is proud to support this effort with our advisory expertise to help ensure the project is bankable, sustainable and impactful.”

The EIB advisory support stems from a request by the Latvian Ministry of Defence and covers the development of the base, training area and storage facility infrastructure. This would mark Latvia’s first defence infrastructure PPP, which follows successful cooperation with a PPP involving a bypass road in the city of Kekava near Riga and comes amid advisory support for a planned affordable-housing programme.

“In response to the geopolitical challenges and threats posed by Russia’s war in Ukraine, we are actively and thoughtfully implementing the National Armed Forces Development Plan for 2025–2036, which was approved in 2023,” said Latvian Minister of Defence Andris Sprūds. “Public-private partnerships have been identified as one of the effective and forward-looking models we can apply in the future for the development of defence infrastructure”.

The EIB will offer free advisory support through its European PPP Expertise Centre, helping Latvia prepare the project with strong financial planning, feasibility analysis, and impact assessment. The goal is to make sure the base is well designed, financially sound, and attractive to private investors.

“Cooperation with the European Investment Bank is a strong commitment of how to use state resources wisely – by leveraging the expertise of the private sector and international experience that provides valuable knowledge to public administration specialists and additional capital to strengthen Latvia's defence and economy,” said Latvian Minister of Finance Arvils Ašeradens. “I highly appreciate that since the opening of the EIB office in Riga, its presence in Latvia has become increasingly significant. This year, EIB investments already exceed €330 million that is a significant contribution to the development of our economy."

Renārs Griskevičs, Chairman of the Management Board of State Real Estate (VAS “Valsts nekustamie īpašumi”), said: “We are honoured to contribute to this strategically important project for Latvia’s and the region’s security. State Real Estate will oversee the project from the implementation phase through to the end of the availability period. Our team brings extensive experience in managing security infrastructure projects, and our expertise in the public-private partnership model will enable us to deliver this large-scale initiative efficiently and to the highest standards.”

The EIB’s support for Latvia’s defence infrastructure development reflects its growing role in strengthening European security and resilience. The Bank is increasingly involved in defence-related projects across Europe, including barracks, logistics hubs, critical infrastructure, industrial capacity, advanced technologies, and support for SMEs. These efforts support EU initiatives such as REARM Europe and underscore the EIB’s commitment to Europe’s security and resilience.

Background information

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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