Lithuania studies road PPP project

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Lithuania studies road PPP project

The Ministry of Transport and Communications of the Republic of Lithuania has announced plans to develop the A14 Vilnius - Utena highway through a PPP project.

The project has been approved by the Ministry of Finance, although it has to be approved by government and parliament before the tender process can begin.

Total investment is estimated at €175 million (US$234.5 million). Construction works are estimated to start in 2016.

The project involves the design and upgrade of the A14 Vilnius - Utena highway stretch between 21.5km and 93.6km. The project also involves the maintenance of the road.

Rimantas Sinkevicius, the minister of transport and communications, stated:

Driving on the concrete highway which was laid a few decades ago unsafe. The fact that traffic has nearly doubled over the last ten years has increased the immediate need for highway reconstruction works. We urge parliament to approve project implementation via PPP, especially as the government has a positive view on such projects. In addition, we already have experience of such ventures - this (PPP) method was adopted in the construction of the Palanga bypass.

On mid May 2013 we reported  the successful financial close of the Palanga bypass public-private partnership project in Lithuania. The project was among six public-private partnership pilot projects approved by the Lithuanian government in 2009. The Lithuanian Road Administration selected Kauno tiltai and Siauliu plentas to design, build, operate, and finance the Palanga bypass contract, worth €36 million over 25 years.

The contract was awarded following a selection process that began in May 2011. The project is expected to be operational by IIQ 2015.

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