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Reorganisation of Lithuanian transport sector enterprises discussed with representatives of World Bank and International Monetary Fund

Date

2021 10 07

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In Washington (USA), Minister of Transport and Communications Marius Skuodis met with representatives of the World Bank and the International Monetary Fund (IMF) and discussed the advancement and progress of Lithuania in reorganising state enterprises of the transport sector into joint-stock companies. It is suggested to involve Lithuania in international discussions regarding these institutions and use the ongoing reorganisation of state enterprises as an example for other countries.
 
In Washington, the Minister discussed with experts from the World Bank and the International Monetary Fund the reorganisation of almost the largest portfolio of state enterprises under the Ministry of Transport and Communications in the areas of air and water transport, railways and road maintenance.
 
“The advancement of Lithuania in reorganising state enterprises in the transport sector is noticeable and welcome by international organisations; together with other advanced countries, we are looking for the most effective solutions, sharing experience and future plans. It is as important that the ongoing reorganisation will be beneficial for the State – it will allow improving the management of the enterprises and increasing the efficiency of their activities, attracting more diverse capital and investments,” said Minister Skuodis at the meetings with the US officials.
 
This September, the Seimas approved of reorganising four enterprises in the transport sector – Lithuanian Airports, Oro navigacija, Klaipėda State Seaport Authority and Lithuanian Inland Waterways Authority – into joint-stock companies. 100 % of their shares will be managed by the State. The reorganisation is to be completed by the end of 2022. It is planned to consider reorganising another state enterprise – the Lithuanian Road Administration (LRA) – during the autumn session of the Seimas. After reorganising the LRA, there would be no state enterprises under the Ministry of Transport and Communications starting 2023. The income of these five enterprises constituted 113.7 mln. euros last year.
 
During the Minister’s meetings with Vice President of the World Bank Indermit Gill, Executive Director of the IMF, representing the Nordic and Baltic countries, Mika Poso, IMF mission chief for Lithuania Borja Gracia, there were discussions on the possibilities of greater involvement of Lithuania in international discussions regarding these institutions and using the ongoing reorganisation of state enterprises as an example for other countries.
 
Minister of Transport and Communications Marius Skuodis noted that transforming the management model of these enterprises will facilitate the application of higher standards of management and transparency in these enterprises and implementing the best corporate management practice. The companies will also be able to establish subsidiaries and thus apply more efficient business risk management methods. According to the Minister, strong companies in the Lithuanian transport sector will contribute to the development of innovations and expansion of the transport sector. Lithuania is also reducing the number of institutions representing the State in company management to centralise competences.
 
The reorganisation of state enterprises in Lithuania is carried out while implementing the Government’s programme and the recommendations of the Organisation for Economic Co-operation and Development to review, simplify and unify the legal forms of state enterprises. The World Bank and the International Monetary Fund are also urging the decrease of the number of state enterprises.