Competitive Public Procurement Yields More Road Construction and Reconstruction Projects

In 2018 the Lithuanian Road Administration under the Ministry of Transport and Communications (Road Administration) saved almost 78 MEUR, out of which 65 MEUR were saved through public procurement of contract works. Part of the savings were generated due to the revision of administrative costs of the Road Administration (3.97 MEUR).

Some of the saved funds were invested into the new tenders of road construction and reconstruction in 2018; whereas the rest were transferred to 2019 and a number of new contracts have already been signed.

In the opinion of the Director Vitalijus Andrejevas, the gained economic benefits due to public procurement procedures prove that rational investment at market price enables to perform more works.

Savings have enabled the Road Administration to start the implementation of such projects as Mega shopping centre intersection (main road A1 Vilnius–Kaunas–Klaipėda section), Akademija intersection (main road A5 Kaunas–Marijampolė–Suwalki section), reconstruction of road A14 Vilnius–Utena sections earlier on.

In 2018, when administering contracts the Road Administration has imposed fines of more than 3.2 MEUR due to failure to complete the works on time and deductions made due to improper quality of works.

In the same year the Road Administration implemented 462 projects for 485 MEUR, which is 35 projects more than in 2017 (499 MEUR) and 81 more than in 2016 (494 MEUR).

The projects implemented are financed from the state budget (Road Maintenance and Development Programme) and European Union investment funds.