Contracts signed earlier this year between Lithuania's defence ministry and Estonian-owned builder Merko Statyba have come into full effect after the company secured financing for the second phase of the Rūdninkai military campus, being built for German troops stationed in Lithuania.

The financing clears the way for construction to proceed at full scale.

"Our commitment to preparing for the reception of the German brigade on time remains firm. By the end of 2027, we will complete the largest military infrastructure project in the history of independent Lithuania," said Defence Minister Robertas Kaunas.

Saulius Putrimas, chief executive of Merko Statyba, said work on building structures would begin shortly and proceed according to schedule.

The campus is being developed under a public-private partnership. Under 15-year contracts, Merko Statyba is due to receive €393.25m for construction and €453.5m for maintenance, while project company Rudina is due €487.61m.