The Selonia region in south-east Lativa, known for its forests, farmland and rural communities, is about to take on a new strategic role. The government plans to build a modern military base and training area, one of the country’s biggest security investments in recent years.
Further west, in the historic municipality of Kuldīga, plans are underway for a new storage facility that supports logistics and military operations. These sites will strengthen Latvia’s defence and contribute to the security of the wider Baltic region.
To make this happen, the Latvian government is working with EIB Advisory and the State Real Estate Agency. They are preparing the ground for a potential public-private partnership that would help ensure that the new facilities are efficient and sustainable, and meet international standards.
Investing in Europe’s safety and resilience
Security and defence are key priorities for the European Investment Bank, which is supporting more projects that help Europe stay safe and resilient, from logistics hubs and dual-use transport corridors to military mobility and advanced technologies.
“The Selonia base is a landmark project for Latvia and the Baltic region,” says EIB Vice-President Karl Nehammer. “It is not just about infrastructure, it is 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.”
It is not just about infrastructure, it is about resilience, readiness and regional solidarity.
Karl Nehammer
EIB Vice-President
A first for Latvia’s defence sector
The EIB Advisory team, through its European public-private partnership Expertise Centre (EPEC), will help Latvia assess the best financial and technical structure for the project, ensuring it meets international standards and attracts private investment.
This will be Latvia’s first defence infrastructure public-private partnership. It builds on previous successful collaborations, such as the public-private partnership for the Kekava bypass near Riga and current advisory work on the country’s affordable housing programme.
The partnership supports the National Armed Forces Development Plan 2025-2036, which sets out the country’s long-term strategy to strengthen military infrastructure.
"In response to the geopolitical challenges and threats posed by Russia’s war in Ukraine, we are implementing the National Armed Forces Development Plan for 2025-2036,” says Latvian Minister of Defence Andris Sprūds. “Public-private partnerships have been identified as an effective and forward-looking model that we can apply in the future for the development of defence infrastructure.”
Public-private partnerships have been identified as an effective and forward-looking model that we can apply in the future for the development of defence infrastructure
Andris Sprūds
Latvian Minister of Defence
Cooperation with the European Investment Bank is a strong commitment to using state resources wisely
Arvils Ašeradens
Latvian Minister of Finance
Bringing expertise together for a stronger Latvia
The initiative also reflects Latvia’s broader effort to combine public and private resources with expertise. “Cooperation with the European Investment Bank is a strong commitment to using state resources wisely,” says Latvian Minister of Finance Arvils Ašeradens. “By leveraging international know-how and private capital, we strengthen both Latvia’s defence and its economy.”
For the EIB, the partnership with Latvia highlights the Bank’s growing role in supporting Europe’s security and resilience. Beyond defence infrastructure, the Bank is helping EU countries invest in logistics hubs, industrial capacity, critical technologies and innovation – all essential pillars of Europe’s collective security.
Latvia’s future defence investments stand as a symbol of how smart partnerships and strategic investments can help shield not just a single nation, but Europe as a whole.