Lithuania's CPVA Eyes Peace Deal with Keistuoliai Theatre Amid Contract Dispute

Lithuania's Center for Public Procurement (CPVA) anticipates a swift resolution to its dispute with the Keistuoliai Theatre, with a peace agreement expected to be confirmed shortly. The CPVA stated that the project's peace agreement draft is currently being finalized. Following a court mediation session on May 27, 2026, the agency is awaiting additional documents and clarifications concerning the execution of a construction contract.

"We expect the peace agreement to be approved in the nearest future, as soon as all necessary documents for decision-making are received and the provisions of the peace agreement are coordinated," the CPVA commented. The dispute centers on a reconstruction project for the Keistuoliai Theatre, valued at 4.1 million euros and financed by European structural funds. Although the project was slated for completion in December 2023, disagreements emerged.

In 2022, the CPVA deemed nearly 141,500 euros of the project's funds ineligible for financing. The agency explained that it is standard practice in European Union investment projects to provide advance payments to project implementers, who must then account for the use of these funds by declaring actual expenses and submitting supporting documents. For the Keistuoliai Theatre project, advance payments were made, but supporting documents for a portion totaling 141,500 euros were not provided, leading to a demand for the funds' return.

Furthermore, a financial correction of over 626,000 euros was applied due to the contractor's failure to maintain valid contract performance security and mandatory civil liability insurance for the entire contract duration. The construction contractor, "Kaminta," subsequently sued the theatre and the Ministry of Culture over an accumulated debt exceeding 500,000 euros.

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We expect the peace agreement to be approved in the nearest future, as soon as all necessary documents for decision-making are received and the provisions of the peace agreement are coordinated.