Agreement of the decisions regarding the state-owned real estate

Decisions regarding the entrustment of the state-owned real estate

According to the provisions laid down in the Description of the Procedure for the Transfer of State Assets for the Management, Use and Disposal of by the Right of Trust, the manager of centrally managed state assets – “Turto bankas” shall adopt decisions regarding the transfer of state assets by right of trust, when the state real assets are transferred among public institutions, establishments, and organizations.

The Government of the Republic of Lithuania shall adopt decisions regarding the transfer of assets by the right of trust when:

  1. shares belonging to the State by the right of ownership are transferred to the manager of assets by the right of trust;
  2. buildings intended for administrative purpose and other constructions, premises or parts thereof, as well as other real property belonging to the State by the right of ownership are transferred to the manager of centrally managed state assets;
  3. state assets are transferred to the Bank of Lithuania, state enterprises, municipalities (transferred by the State to municipalities) for the execution of state functions, to legal entities, if it is established in the laws regulating their activities, and other legal entities under the Property Trust Agreement, if state functions are assigned to them by laws, for no longer that a 20 year period, or when the state assets, managed, used and disposed by the aforesaid undertakings under the right of trust are transferred to other legal entities for management, use and disposal of by the right of trust;
  4. real estate is derelict, confiscated, inherited by the State, or transferred into the State revenue, except the transfer of centrally managed state assets to manager.

Draft decisions, developed by the managers of assets, regarding the transfer of the state assets by the right of trust to another entity of asset entrustment shall be agreed with:

  1. institution, implementing participant’s rights and obligations of the State, as of a legal entity, transferring and accepting state assets, (except cases, when an institution implementing participant’s rights and obligations as of a legal entity is the Seimas of the Republic of Lithuania or the Government of the Republic of Lithuania);
  2. the Ministry of Education and Science of the Republic of Lithuania, when assets managed by the State science and higher education institutions by right of trust are transferred;
  3. Competition Council, when state assets managed by the right of trust are transferred to state enterprises, legal entities, if it is established in the laws regulating their activities, and other legal entities under the property trust agreement, if state functions are assigned to them by laws, for no longer that a 20 year period;
  4. manager of centrally managed state assets, when state-owned real estate is transferred by the right of trust, except cases when such property is transferred to state institutions, establishments, and organisations.

Decisions regarding loan for use of the state-owned real estate

According to the provisions laid down in the Description of the Procedure for the Transfer of State Assets Under the Loan for Use for Temporary Uncompensated Management and Use, the manager of centrally managed state assets – “Turto bankas” shall adopt decisions regarding the transfer of state assets under the loan for use, when the real estate belonging to the State under the right of ownership is transferred to budgetary establishments. In such case, the maximum term of the transfer of state assets on the basis of the loan for use shall not exceed 20 years.

In cases when the state-owned real estate is transferred to the below listed undertakings, decisions regarding the transfer of such property on the basis of loan for use are adopted by the Government of the Republic of Lithuania, when the draft decision is agreed with “Turto bankas”:

  1. to public institutions, where at least one of their shareholders is the State or a municipality, which are represented by the State or municipal institution, as well as public establishments – schools and public establishments which ensure public interest through a network of museums;
  2. legal persons which have the status of a social enterprise;
  3. associations, acting in accordance with the Law on Associations of the Republic of Lithuania, charity and sponsorship funds (only the state-owned real estate may be transferred to these funds), when the state-owned real estate is transferred to associations, charity and sponsorship funds that carry out at least one of the activities attributable to the social or national security field according to the clause 2 of the Resolution No. 1890 of the Government of the Republic of Lithuania of 3 December 2002 on the Approval of the Description of the Procedure for the Transfer of State Asset Under the Loan for Use for Temporary Uncompensated Management and Use;
  4. political parties;
  5. other entities, where laws, international treaties or agreements provide for it.

In such case, the term for which the state assets are transferred on the basis of loan for use is only 10 years.

Draft decisions of the Government of the Republic of Lithuania and the manager of centrally managed state assets on the transfer of state assets on the basis of the loan for use shall be developed by the managers of assets that intend to transfer state assets to loan recipients. The draft decisions regarding the transfer of the state property on the basis of the loan for use developed by the managers of assets shall be agreed with:

  1. institution, implementing participant’s rights and obligations of the State, as of a legal entity transferring and accepting state assets, (except cases, where an institution implementing participant’s rights and obligations as of a legal entity is the Seimas of the Republic of Lithuania or the Government of the Republic of Lithuania);
  2. the Ministry of Education and Science of the Republic of Lithuania, where state assets are transferred on the basis of the loan for use by the science and higher education institutions;
  3. Competition Council, when state asset is transferred on the basis of the loan for use to an entity other than budgetary institution or political party;
  4. the manager of centrally managed state assets, where the state-owned real estate is transferred on the basis of the loan for use to an undertaking other than budgetary institution.

Decisions regarding the lease of the state-owned real estate

According to the provisions laid down in the Description of the Procedure for organisation of the state tangible fixed assets lease by a public tender and lease without tendering, a decision on the lease of state tangible fixed assets may be adopted by the manager of the state assets; the decision shall determine the following conditions of lease: the method of lease of the state property, the property being leased and its identification data, the purpose of use of the property, the prospected period of lease, the initial amount of rent and other conditions of lease or lease organisation.

The decision of the assets manager to lease the state assets by a public tender shall be agreed with:

  1. institution, implementing rights and obligations of the State, as of a legal entity participant (except cases, when an institution implementing participant’s rights and obligations as of a legal entity is the Seimas of the Republic of Lithuania or the Government of the Republic of Lithuania);
  2. the Ministry of Education and Science of the Republic of Lithuania, where the state assets are intended to be leased by the science and higher education institutions;
  3. the manager of centrally managed state assets, where the state-owned real estate is leased.

The decision of the assets manager to lease state assets shall not be agreed with the manager of the centrally managed state assets when:

  1. the state real estate is leased for installation of copying devices, multipliers, coffee, water and snack vending machines, installation of mobile connection antennas, and other similar purposes;
  2. the state real estate is leased by state enterprises providing air carriage services and operating airports.

State assets may be leased for a period not exceeding 10 years (including the extension of the term of lease), unless laws provide otherwise. Upon the completion of the lease term, the lease agreement could be renewed according to the procedure established in the Civil Code of the Republic of Lithuania with the lessee that completely fulfilled all obligations undertaken under the lease agreement. In the case of renewal of the state asset lease agreement the manager of the state assets shall agree possibilities related to the renewal of the lease agreement with the manager of centrally managed state assets, not later than in 3 months prior to the end of the lease term.

It shall be noted that the state real estate, which is not used for performing functions of the state assets manager, cannot be leased when the state enterprise “Turto bankas” determines the necessity of the state real estate for the performance of functions of other state property manager.

Tenders for lease of state tangible fixed assets shall be carried out in accordance with the Resolution No. 1229 of the Government of the Republic of Lithuania of 5 November 2014 on the Amendment of the Resolution No. 1524 of the Government of the Republic of Lithuania of 14 December 2001 on the Lease of State Tangible Fixed Assets.

Decisions regarding the recognition of the state-owned real estate as being redundant

According to the provisions laid down in the Description of the Procedure for Writing Off, Dismantling and Liquidation of State and Municipal Assets Recognised as Redundant or Not Fit (Not Possible) for Use, the state assets shall be recognized as redundant or not fit (not possible) for use by a request of a commission formed in a public establishment, state enterprise, manager of public railway infrastructure, or by a decision of the head of a public establishment, state enterprise, or manager of public railway infrastructure.

Decisions on the write-off of state assets recognized as redundant or not fit (not possible) for use shall be adopted by the Government of the Republic of Lithuania and the state asset manager.

In case of the decision on recognition of the state assets as not required for performance of state functions adopted by the assets manager, the consent of the manager of centrally managed state assets must be obtained. Before submitting the draft decision to “Turto bankas”, the following must be obtained:

  1. consents, where needed, of an institution, implementing participant’s rights and obligations of the State, as of a legal entity, or of the Ministry of Education and Science of the Republic of Lithuania, when decision on recognition of the property as redundant or not fit (not possible) for use is adopted by a science and higher education institution;
  2. opinion of the Department of Cultural Heritage under the Ministry of Culture, if the assets manager adopts a decision regarding the recognition of the state real estate or other real property, as well as movable cultural property, to which requirements of cultural heritage protection are applied, as redundant or not fit (not possible) for use;
  3. opinion of the State Service for Protected Areas under the Ministry of Environment, if the assets manager adopts a decision regarding the recognition of the state real estate or other real property located within the State protected territories as redundant or not fit (not possible) for use.

Analysis of the State -Owned Real Estate

The manager of centrally managed state assets – “Turto bankas”, following the provisions of the Description of the Procedure for the Centralised Management, Use and Disposal of the State Real Estate and Acquisition of New State Real Estate Intended for Administrative Purpose, approved by the Resolution No. 148 of the Government of the Republic of Lithuania on 11 February 2015, with the help of the unified state-owned asset informative online search system (VTIPS) shall analyse the use (whether it is used according to the intended purpose) of the state real estate, evaluate the efficiency of use, identify the needs of state institutions and establishments, develop investment projects and proposals regarding the transfer of administrative buildings managed by state institutions to the manager of centrally managed state assets, carry out analysis of the alternatives of the provision with real estate intended for administrative purpose, necessary for carrying out activities and performing state functions, and analyse the cost-effectiveness and benefits of such alternatives.

SE “Turto bankas” shall initiate takeover of the state-owned real estate intended for administrative purposes on the basis of the following principles:

  1. cost saving principle, where the property is managed and (or) used by two or more state institutions or establishments. This principle also applicable to the real estate, the part of which is managed by “Turto bankas” by the right of trust;
  2. institutional principle, where the part of property has been taken over by the manager of centrally managed state assets on the basis of other principles listed herein and the rest part of the state real estate of administrative purpose of the same state institution or establishment is sought to be taken over;
  3. maximum utilisation principle, where “Turto bankas” identifies state institutions and establishments that surpass the norms of provision of real estate intended for administrative purpose, necessary for carrying out activities and performing state functions, determined by the Ministry of Finance, in order to relocate other state institution, the norms of which are lower that the determined norms.
  4. principle of renovated real estate management, where “Turto bankas”, executing the function of the initiator of the state real estate renovation, should transfer the renovated state real estate to the assets manager, but manager’s assets to be sold are not sufficient for covering the project value of the renovated real estate.

Transfer for centralised management of the state real estate intended for administrative purpose may be initiated by assets managers – state institutions and establishments, that seek to abandon the management and maintenance of the state real estate intended for administrative purpose. Drafts of the Government decisions regarding the transfer of the state real estate intended for administrative purpose for centralised management shall be prepared and submitted to the Government once per year, until the 1st of June of the current year.

SE “Turto bankas”, after the assessment of the alternatives of provision with state real estate intended for administrative purposes and analysis of the cost-effectiveness and benefits of these alternatives, determining implementation means and their duration, analysis of the cost-effectiveness and benefits of the alternatives, estimation of required funding, proposals regarding funding sources, and assessment of potential risks, also may identify the need for new state real estate intended for administrative purposes, if there are no possibilities to transfer other unoccupied and responding to the needs state real estate of administrative purpose to a state institution or establishment. State institutions and establishments that manage state real estate intended for administrative purpose by the right of trust or on the basis of loan for use, which fails to meet the needs of the state institutions and establishments in their performance of state functions, have to submit an application to the manager of centrally managed state assets requesting to assess alternatives of provision with state real estate intended for administrative purposes:

  1. an alternative of reconstruction or rearrangement of the state real estate used by the state institution or establishment, so that it fits for the performance of the functions of that institution or establishment;
  2. alternatives of using and (or) adapting for administrative purpose abandoned state real estate, intended for any purpose, that had been transferred to “Turto bankas” by the right of trust for management.
  3. an alternative of relocation of institutions.

After assessing the alternatives of provision with state real estate intended for administrative purposes, “Turto bankas” shall present information on each alternative to the state institution or establishment, specifying costs and terms of their implementation, potential risks, required funding, possible sources and methods of funding, and submit proposals regarding the alternative recommended for implementation and method of funding.

Agreement of the decisions on the state real estate shall be coordinated by the Analysis and Supervision Division of the Real Estate Department.


© VĮ Turto bankas, 2017

Kęstučio g. 45, LT-08124
Vilnius, Lithuania
Phone (+370 5) 278 0900
Fax (+370 5) 275 1155

Vilniaus g. 16, LT-01402
Vilnius, Lithuania
Phone (+370 5) 268 4999

Email: info@turtas.lt
Company No: 112021042
VAT No: LT120210411

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