EIB to Advise Latvia on Major Defense Infrastructure Development in Selonia and Kuldīga

EIB Partners with Latvia for Enhanced Defense Capabilities

The European Investment Bank (EIB) has officially partnered with the Latvian government and the State Real Estate Agency (VNI) to provide advisory support for significant defense infrastructure projects in Latvia. The agreement, formalized in Riga on October 9, 2025, marks a crucial step in strengthening the nation's and the wider Baltic region's defense capabilities amidst evolving security challenges.

Under this initiative, the EIB will offer its expertise for the development of a new military base and training area in the Selonia region, as well as a storage facility in Kuldīga Municipality. This collaboration is designed to assess and prepare a potential public-private partnership (PPP) model, which would be Latvia's first in the defense sector.

Advisory Support and Strategic Importance

The EIB's role will primarily involve providing technical and financial advisory services. This support, delivered free of charge through its European PPP Expertise Centre, will encompass financial planning, feasibility studies, and impact assessments. The goal is to ensure the projects are developed according to international best practices, are financially sound, and are attractive to potential investors.

EIB Vice-President Karl Nehammer underscored the significance of the undertaking, stating that 'The Selonia base represents a landmark project for both Latvia and the wider Baltic region.' He emphasized that the initiative is 'about more than infrastructure — it's about resilience, readiness, and regional solidarity.'

Alignment with National Defense Strategy

The defense infrastructure development aligns directly with Latvia's Armed Forces Development Plan 2025–2036, which was approved in 2023. Latvian Defence Minister Andris Sprūds highlighted that the project is a direct response to regional security threats, particularly in the context of Russia's war in Ukraine. He noted that 'Public-private partnerships have proven to be an effective and forward-looking model for developing defence infrastructure.'

Latvian Finance Minister Arvils Ašeradens further stressed the importance of leveraging the EIB's expertise and PPP frameworks for efficient project delivery. The EIB's increasing involvement in European defense and resilience projects, including initiatives like REARM Europe, underscores its commitment to the continent's stability and preparedness. The EIB has expanded its eligibility criteria to finance military infrastructure, such as barracks and storage facilities, reflecting a broader strategic shift to bolster European security.

Conclusion

This partnership between the EIB and Latvia represents a concerted effort to modernize and strengthen Latvia's defense capabilities. By utilizing the EIB's advisory services for a potential PPP model, Latvia aims to create sustainable and impactful military infrastructure that contributes to both national security and regional solidarity within the Baltic states.