According to the Danish Ministry of Defence, the Defence Command has signed a so-called PPP contract (Public-Private Partnership) with PensionDanmark and MT Højgaard. The project aims to modernise the accommodation standards for conscripts and permanent staff through new construction at eleven different military facilities.

The construction phase will commence in 2026 and is expected to be fully completed by the end of 2028. In addition to the construction itself, the consortium is also responsible for the operation and maintenance of the buildings over a 20-year period, a task that will be managed by MT Højgaard's subsidiary Raunstrup.

The agreement marks another step in the collaboration between Danish industry and the armed forces. Nordic Defence Sector has previously reported on how Danish pension companies, including PensionDanmark, are behind the new defence fund ETNA. The fund was launched at the end of last year with the aim of investing in the European defence industry and critical infrastructure.

The Property Director at PensionDanmark, Torben Modvig, states in a press release:

– We are proud to contribute to a historic upgrade of the accommodations for the conscripts, who perform an important task for Denmark every day, while also creating stable, long-term returns for our members. We look forward to the continued collaboration and to seeing the project take shape at the barracks over the coming years.

The new barracks project is financed through a model where the defence pays continuously during the contract period, to eventually purchase the buildings at a predetermined price at the end of the contract.

– It is absolutely crucial that we ensure proper and up-to-date conditions for all conscripts, says Defence Minister Troels Lund Poulsen in the Ministry of Defence's press release.

The project includes four-bed rooms for conscripts, two-bed rooms for officer cadets, and single rooms for permanent staff.