According to EIB consultants, the financial position of UL is stable and provides great flexibility both to undertake large-scale projects and to support them, providing additional annual cash flows from their financial resources where necessary.

PwC expresses a high degree of credibility with regard to the overall financial assumptions included in the evaluation of the financial position of UL, as they are consistent with historical trends and do not present any exceptional steps to artificially improve the financial profile for obtaining funding.

The EIB confirms that it is considering participating in the financing of the LU Academic Centre project, also in its third round.

 

"At the moment, the European Union is facing one of the most difficult times in its history. The coronavirus pandemic will have a strong economic impact and we need to be able to respond in a united and convincing manner without wasting a minute. The EIB has shown several times that it is able to provide support when it is most needed. And it is ready to do it again,” stresses EIB Vice-President Thomas Östros. He also believes that Latvia has been able to demonstrate its sustainability, and the EIB is prepared to continue supporting the country's projects as far as possible.

The EIB experts offer five financial models for the implementation of the planned UL development projects. As the preferred experts highlight a model where the UL implements part of the projects in cooperation with the public partner, while the other projects are carried out within the framework of the public-private partnership (PPP) or through UL equity and borrowing.

As potential sources of financing for the third stage development programme, the EIB Advisory Centre recommends European Union (EU) Structural Fund grants, financing of international lenders, UL equity investments or investor-linked funds under the private public partnership model.

"The study has given an insight into the financial parameters of the projects and helped UL prepare third-stage plans. As part of the feasibility study, a number of investors and real estate project developers were interviewed, which made valuable recommendations. Various possible scenarios have been assessed and the opportunities of an institution of higher education to provide equity and borrow for third-stage development have been explored, also by raising funds from the sale of its real estate. Various private partnership solutions have also been outlined," the feasibility study is described by the EIB Consultation Centre's representative, Ciara Continenza.