Lithuanian road infrastructure development and funding

The Lithuanian Ministry of Transport has proposed a Public-Private Partnership (PPP) model to reconstruct an 8-kilometer section of the Kaunas-Prienai road. The plan, prepared by Via Lietuva, involves construction between 2028 and 2030, followed by 15 years of private partner maintenance through 2045. The estimated nominal value of payments to the private partner is 315.7 million euros.

Concurrently, the Lithuanian Road Management Association has appealed to the Seimas and relevant committees to increase state funding for road maintenance and development. The association is requesting that the 2027 Road Maintenance and Development Program allocation be raised from 436 million euros to at least 540 million euros. Association leader Šarūnas Frolenko stated that while the Road Fund is growing through user contributions, the proportion of state budget funds for roads has decreased, which he argues fails to address infrastructure degradation and rising costs.

As of late 2026, the association continues to urge parliamentary factions to increase national road funding to 540 million euros in the upcoming state budget. Frolenko noted that although road users pay more through fuel excise taxes, a smaller percentage of those funds is being directed toward maintenance. He highlighted that while KPPP program funding was 583.2 million euros annually in 2024 and 2025, it dropped to 436 million euros this year. The association argues that even an increase to 540 million euros would still result in less funding than provided two years ago, and that current levels are insufficient to stop infrastructure degradation.