“In implementing the contract for the Berčiūnai–Joniškėlis section construction, operating under the previous tripartite project management model between the client, contractor, and the joint company RB Rail AS, obtaining the necessary technical documentation and construction permits took longer than planned before starting the procurement. In July, the main documentation required for the execution of construction works was received, submitted to the contractor, and he was officially informed that construction works could begin,” commented Mindaugas Ivanavičius, head of Rail Baltica in Lithuania, on the situation.
According to him, in such cases, project work schedules are usually reviewed, deadlines adjusted, and contract execution proceeds.
However, a dispute arose between the contractor and the client regarding the preparation of technical documentation and the timing of obtaining construction permits. Additionally, the contractor, based on the contract, submitted a claim for compensation of costs related to the execution of works. Following the requirements of international funding sources, LTG Infra is currently assessing whether all incurred costs are justified and whether the European Union and state support have been properly used.
“In our assessment, technical and organizational issues are being resolved. In the mediation process, we continue to propose compromise solutions that would allow preserving the construction contract, avoiding a lengthy legal dispute, and starting construction works in the Panevėžys district towards Latvia as soon as possible,” says M. Ivanavičius.
LTG Infra does not rule out the possibility that an agreement will not be reached in the mediation process – in such a case, the company is ready to immediately take action to ensure the continuity of construction works and announce a new construction tender. Since the technical documents have been prepared and construction permits obtained, construction in this section can begin promptly. The construction works should be completed within two years from their start.
“Currently, the clear priority is construction progress. Lithuania has secured funding for 114 km of the Rail Baltica line and is seeking additional investments in the upcoming European Union funding period. Therefore, construction progress is important not only for this contract or section but also for the overall project financing perspective,” emphasizes M. Ivanavičius.
Currently, HISK is also carrying out works on the Šėta–Ramygala and Kaunas (Palemonas)–Šveicarija sections.
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In other Rail Baltica sections in Lithuania, construction and design works are underway, including the construction of the upper track structure and sleeper production, modernization of the Poland/Lithuania state border–Kaunas section, design works for the signaling subsystem and individual objects of this section.
“We cooperate with contractors who are important partners in implementing a project of strategic importance for Lithuania and the Baltic region. The Rail Baltica project consists of more than 100 project activities, each of which must proceed as smoothly and quickly as possible,” assesses the director of Rail Baltica in Lithuania.
To ensure the project’s resilience to risks, LTG Infra previously divided the main line construction into separate sections so that disruptions by one contractor would not have a decisive impact on the work of other contractors and the overall project progress.
Rail Baltica is a strategic project of the LTG group and the European Union and the largest railway infrastructure project in the history of the Baltic countries, which will establish an electrified European standard railway connecting Lithuania, Latvia, and Estonia with Central and Western Europe, ensuring regional integration, civil and military mobility, and transport system resilience.
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