Transport

In the opinion of Minister, Eligijus Masiulis, the plan for the stimulation of Lithuania’s economic development prepared by the Government should include, among others, support for the transport sector.

According to the Minister, the economic stimulation plan must be supplemented with a provision allowing for transport companies to borrow at more favourable terms, in order to supplement current assets and implement economically viable investment projects.

In the Minister’s opinion, facilitation of implementation of transport infrastructure projects will encourage revival of the economy through the growth of domestic demand in building materials, construction, transport services. In the reconstruction work of road infrastructure, about 85 percent of the project estimate consists of materials and services produced and rendered by Lithuanian companies. In view of the decrease in funding, the shortfall of funds could be secured from the EU assistance to other sectors, which will not be able to absorb the funds provided for them this year.

“The current economic stimulation plan is focused on the construction, industrial sectors and exports of goods, leaving aside the service sector. The transport sector is the largest exporter of services, generating about 60 percent of the total services exports,” said E. Masiulis. In 2008, transport services exports amounted to 6.2 billion litas and imports – 4.9 billion litas.

According to E. Masiulis, in 2009 the Ministry of Communication would be able to use about 1.1 billion litas from the EU structural funds. Moreover, the Ministry of Communication could use other funds provided for investment projects not covered by the financing from the EU Structural Funds.
In 2009, the funding of the road maintenance and development sector alone decreased by 26 percent (473 million litas). This decrease in funding was already experienced by all road construction and maintenance enterprises – part of employees were laid off, working hours reduced. Over 1000 enterprises, institutions, other entities receive funding from road maintenance and development programmes.

In 2008, transport and communications sector employed 105 thousand of people, or 6.9 percent of all Lithuanian employees, and the gross value added (GVA) created in the sector, according to preliminary data, was 12.6 percent (13 070 million litas), or 14.3 percent more than in 2007.