"We want Lithuania to strengthen its position as a competitive location for large investments in the region – for both domestic and international investors. For this to happen, we need to go beyond words and create real conditions for the ’investment highway’ – large projects must be able to start within months, not years. That is why we are introducing key changes that will reduce bureaucracy, speed up site preparation, create a clearer process and ensure effective cooperation between institutions," said Lukas Savickas, minister of the economy and innovation.
Currently, major projects are often hampered by inadequate infrastructure and complex spatial planning processes. There is a shortage of large, ready-made industrial sites, and existing sites often lack developed infrastructure, are unsuitable for their intended use or are fragmented by ownership. The processes of land formation, coordination of spatial planning documents and obtaining building permits are also lengthy. This means that the processes from site selection to the actual start of construction can take up to 3 years or even longer.
To address these challenges, it is proposed to modify and expand the "green corridor" model into an "investment motorway".
The main change is that it is proposed to extend the exemptions and facilitations that currently apply to the defence industry to all major projects, without exception, and in urbanised areas. This would allow a fast-track model for special projects in terms of spatial planning and the start of construction without the need for a permit, with an obligation to obtain one before construction is completed. In practice, this would speed up the procedures required to start construction by up to 10 times, reducing a process that can currently take up to 3 years to less than 3 months.
It is also proposed to extend the benefits for large projects to companies operating in Free Economic Zones (FEZ). FEZ companies would benefit from the same faster and simpler procedures for land acquisition, environmental impact assessment, spatial planning and construction as other large projects, including a special purpose project model and the possibility to start construction without waiting for a permit.
The possibility of further improving the regulatory framework for LEZs in the future is being considered. Sectors such as the defence industry could benefit from simplified procedures, a clearer regulatory environment and infrastructure tailored to their specific operational needs.
It is also proposed to improve the model for reserving and developing public land for investment. Land could be reserved throughout Lithuania, not only in non-urban areas but also in cities. Their designation and development documents would be managed using the Special Purpose Project model, ensuring speed and clarity.
Changes to the existing corporate tax allowance for investors are also proposed. The corporation tax relief would apply for 20 years from the achievement of key project indicators, rather than from the start of the project.
Finally, the institutional support for large investors will be significantly increased and they will be provided with dedicated case managers. It is proposed that an investment development agency, Invest Lithuania, under EIMIN, would coordinate large domestic and foreign investment projects.
The agency would be empowered to mediate between investors and institutions, which would be obliged to cooperate, provide information on project implementation and advise on emerging issues. If necessary, the agency could issue binding instructions to the authorities if they fail to meet deadlines, propose solutions and initiate changes.
Proposals for legislative changes have now been submitted for consultation with the authorities concerned.