“It is necessary for the Road Administration to increase the efficiency and quality of its operations and the speed of decision making, to implement projects faster and to respond more quickly to the problems raised by stakeholders. The reorganisation of the enterprise into a joint-stock company will not only provide more flexibility, but will also open up the possibility to better adapt to changes in the state road maintenance and development market. It is no less important that such reorganisation will also benefit the State – less administrative burden on the enterprise and its asset management, commercial opportunities, consistently increasing return on equity, strong role of the board and clear responsibility, transparency and openness,” says Minister of Transport and Communications Marius Skuodis.
According to the Minister, having the legal form of a joint-stock company will allow the enterprise to attract more various forms of capital and investments, as well as to invest and dispose of the assets under management more easily. It is expected that additional revenue could be used to accelerate the implementation of important and large-scale road infrastructure projects.
It should be noted that even after the reorganisation, the special obligations of LRA will remain – the management of state roads and the organization and coordination of ensuring safe traffic conditions by implementing traffic safety measures on state roads. In addition, the enterprise will have to ensure the security of assets important for national security, to achieve the objectives set by the shareholder, including the protection of the public interest.
Following the reorganisation, all LRA shares will continue to be owned by the State. Being the enterprise’s single shareholder, the State will retain control over it. National security will also be ensured: the joint-stock company will remain on the list of enterprises important for national security, and state roads will continue to be included in the list of facilities and assets important for national security.
Amendments to the laws allowing to change the legal form of LRA from 2 January 2023 will have to be approved by the Seimas.
Other four companies of the transport sector to be reorganised into joint-stock companies by the end of 2022 are Lithuanian Airports, Oro navigacija, Klaipėda State Seaport Authority and Lithuanian Inland Waterways Authority.
The reorganisation of state-owned companies is performed while implementing the Government’s programme and the recommendations of the Organisation for Economic Co-operation and Development to review, simplify and unify legal forms of state-owned companies.
