Budgetary Cuts of Road Funds Resulted in the Decision of the Road Administration not to Invite Any Tenders in 2020

Date

2019 12 17

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The Lithuanian Road Administration under the Ministry of Transport and Communications (hereafter referred to as "the Road Administration") has signed contracts or is carrying out public procurement (evaluating tenders) for the allocated amount in 2020 to administer, construct and maintain state significance roads. According to the data of 16 December 2019, this amount makes up 313.7 million euros: the total value of the signed contracts: 276 million euros and the amount for the contracts to be signed: 37.7 million euros.

Based on the above and the information of 16 December 2019 on the Government‘s plans to freeze 138.7 million euros from the Road Maintenance and Development Programme (RMDP), the Road Administration is submitted to cancel public procurement procedures for about 40 million euros and not to initiate any new tenders in 2020. Due to this, 230 km of gravel roads will not be asphalt paved in Lithuania in 2020. 

According to the latest data, the budget of the Road Administration next year will be 306.5 million euros (266.5 million euros – RMDP funds, 40 milion euros – European Union investment funds) instead of the planned 347.1 million euros (307.1 million euros – RMDP funds, 40 million euros – European Union investment funds).