The Change of Legal Status of the Lithuanian Road Administration into a State-Owned Enterprise

To use state budgetary funds more rationally, to guarantee more effective management and to attract investments into the upgrading and development of the national transport infrastructure, it was aimed to change the status of the Lithuanian Road Administration under the Ministry of Transport and Communications (Road Administration) into a state-owned enterprise. Today the proposal put forward by the Ministry of Transport and Communications has been approved by the Lithuanian Government.

After the reform the enterprise will maintain the same mission: to create safe, convenient, environmentally-friendly and intelligent transport on Lithuanian state significance roads. The state will remain the sole owner of the company.

Having acquired the status of the state-owned enterprise, the Road Administration will continue to carry out special purpose obligations, thereby preserving its key goals: to organize and implement road construction and rehabilitation, maintenance and development, to ensure safe traffic conditions on state significance roads and to use of the Road Maintenance and Development Programme funds properly.

A new legal status will enable the Road Administration to use not only state budgetary funds, but also additional sources of financing, i.e. loans granted by international financing institutions, bonds and other instruments of international financing market, under the most favourable conditions.

Moreover, the new status of the organization will provide a posibility to hire engineers and experts of high competence and very great specialised knowledge. Currently, this possibility is limited by wage payment laws of budgetary institutions.