The Latvian Ministry of Transport and the state-owned company Latvijas Valsts ceļi (LVC) issued an order to launch the implementation of the Bauska bypass construction project under the public-private partnership (PPP) model.

The Iecava and Bauska bypass project is divided into two phases, with the first phase building the Bauska bypass, and the second phase building the Iecava bypass and the section connecting it to the Ķekava bypass. To gradually enhance traffic flow along the international Via Baltica highway—comprising the Tallinn (A1) and Bauska (A7) roads in Latvia—traffic was opened in 2023 on the newly built Ķekava bypass, developed as a PPP project. To continue improving the Latvian segment of Via Baltica, further upgrades are needed, including the reconstruction of the Riga bypass, the construction of the Iecava and Bauska bypasses, connecting sections between all three bypasses, and linking the Riga bypass with the Bauska highway via a new dual bridge over the Daugava River.

The main route of the Bauska bypass will be a new road 14.2 km long, it is planned that it will have two lanes in each direction. The bypass route will also include a new bridge over the Memel River, two-level interchanges and through-passages, the number of which will be specified during the design process, local roads approximately 3.5 km long, and some existing local roads will be rebuilt. A connection with the main route of the Bauska highway (A7), approximately 2 km long, will also be built. Similar to the Ķekava bypass project, the private partner for the Bauska bypass will be responsible for securing financing, as well as handling the design, construction, and 20-year maintenance of the road following its completion. Construction supervision will be carried out by an independent supervisor appointed by Latvian State Roads (LVC). The total estimated cost of the Bauska bypass project over its 23-year lifecycle—including maintenance and periodic resurfacing—is projected to reach up to EUR 300 million (US$ 335 million).

The Bauska and Iecava bypasses are part of the Trans-European Transport Network (TEN-T) core network and the Via Baltica road transport corridor (from Tallinn to Warsaw). These sections are important not only for Latvia, but also for international passenger and freight transport flows, as well as military mobility between the Baltic States and further European Union countries in the north-south direction.