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Seimas has approved reorganisation of Lithuanian Road Administration into joint-stock company

Date

2021 11 23

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Today, the Seimas approved all the legislation amendments proposed by the Ministry of Transport and Communications that allow reorganising the Lithuanian Road Administration (LRA) from a state enterprise into a joint-stock company. Once the reorganisation is implemented, the LRA will be able to change its legal form from 2 January 2023.

 

“The Lithuanian Road Administration is the last of the five companies under the Ministry of Transport and Communications to acquire the legal form of a joint-stock company. The decision of the Seimas has opened a possibility to start the reorganisation of this enterprise as well, so that it could operate with more flexibility and efficiency, better adapt to changes in the state road maintenance and development market and create more benefit for the country,” says Minister of Transport and Communications Marius Skuodis.

 

According to the Minister, the status of a joint-stock company will enable the LRA to apply the highest standards of corporate governance, make quick decisions and implement strategic projects faster. It is planned that there will be less administrative burden on the enterprise and its asset management, it will be possible to attract more diverse capital and investments, to invest and dispose of the assets under management more easily. Additional revenue could be used to accelerate the implementation of important and large-scale road infrastructure projects.

 

After reorganisation, the State will remain in control of the LRA, its shares will be owned by the State. When the LRA becomes a joint-stock company, it will remain on the list of enterprises important for national security, and state roads will still be included in the list of facilities and assets important for national security.

 

Currently, 4 companies of the transport sector are under reorganisation – Lithuanian Airports, Oro navigacija, Klaipėda State Seaport Authority and Lithuanian Inland Waterways Authority.

 

It is planned to conclude the reorganisation of state enterprises into joint-stock companies by the end of 2022.

 

The reorganisation of state enterprises 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.