Šiauliai consistently invests in transportation infrastructure, streets, sidewalks, bicycle paths are renovated in the city. Despite all efforts, the number of roads in an unsatisfactory condition is increasing. Šiauliai City Municipality conducted an analysis of the city’s street infrastructure in order to assess whether the current level of funding allocated to street repairs allows for stable street maintenance – the results are not satisfactory.
Current funding is insufficient
The performed analysis showed that, regardless of the fact that the funds allocated for street repairs in the last 6 years were 5 or more times higher, compared to previous periods, it is impossible to compensate for the deterioration of the condition of the surfaces, when even for several decades, until 2018, minimum road infrastructure was allocated maintenance fund and municipal funds, which do not even ensure the maintenance of the existing condition.
Šiauliai city municipality, seeing that the condition of the streets deteriorates every year and the funding of the road maintenance fund allocated by the state does not ensure the maintenance of the current condition, from 2018. began to additionally allocate funds from the municipal budget, other financing sources, and loans for this purpose.
For comparison, in the period of 2018-2023, state funding from the funds of the road maintenance program amounted to about 42 million. EUR, and the Municipality additionally allocated another 67 million. EUR of own budget, loan, European Union funds.
“Seeing that even this kind of funding is insufficient, in 2024 we planned twice as much funds and allocated 8.7 million to the state, and additionally allocated 17.2 million. Eur. Despite all our efforts, we see that in the city of Šiauliai there are about 66% of streets in an unsatisfactory condition, and this number is growing every year”, Mayor Artūras Visockas drew attention to the problem while addressing the Association of Lithuanian Municipalities (LSA) and the Ministry of Transport of the Republic of Lithuania.
Without state aid, municipalities will not be able to deal with this problem
The analysis carried out by the municipality of Šiauliai showed that the total minimum need for the stabilization of the existing infrastructure is about 160 million. Eur. The city mayor emphasizes that these funds should be allocated in the nearest period, no longer than 3-5 years. If state funding is not received in time, the existing street infrastructure will be lost, some streets will face complete wear and tear.
“The general solution of the problems accumulated in the street infrastructure, paying special attention to pedestrian and bicycle infrastructure, to ensure safe traffic, according to the current preliminary assessment, may reach 230-240 million. Eur, it is important to emphasize that the municipality alone is not capable of solving them without the help of the state”, says A. Visockas.
The mayor of Šiauliai appealed to LSA and the Ministry of Transport: urgent decisions are needed
Addressing the LSA and the Ministry of Transport, the mayor of Šiauliai suggested considering the following ways of financing the street sector:
- review the road tax concessions provided for in the Road Maintenance and Development Program Funding Law of the Republic of Lithuania;
- increase the contribution of the state budget to the financing of construction and maintenance of the municipal street (road) sector;
- review the legal regulation of concession, public-private partnership and other models of cooperation with business, encouraging the inclusion of business in the solution of this problem;
- to review the borrowing possibilities of municipalities for the financing of investment projects;
- revise the provisions of the Municipal Infrastructure Development Law of the Republic of Lithuania, providing conditions that motivate businesses to invest more in municipal infrastructure.
More information in the attached document – Šiauliai mayor’s letter.
