Lithuanian Court Upholds Ruling on Ineligible EU-Funded Project Expenses

Lithuania's Vilnius University lost its appeal against a decision by the Central Project Management Agency (CPVA) that declared over 765,000 euros in expenses for its Medical Faculty Science Center project ineligible for European Union funding.

The administrative court upheld the CPVA's ruling, stating that the funds were not spent within the eligible period, which concluded on December 31, 2023. The dispute arose from the construction of the science center, financed by EU grants.

Vilnius University had paid an advance of over 2.5 million euros to the contractor, "Eikos statyba," by the end of 2023. While the university received funding for this advance, the contractor later returned 762,700 euros in May 2024. The university then used this returned sum to pay for other completed works in June 2024.

The university argued that the expenses should be considered eligible because the advance payment was made before the end of 2023 and the returned sum was linked to work already performed. However, the court emphasized that expenses must be both incurred and paid within the eligible funding period. The court also noted that the university failed to inform the CPVA about the circumstances of the advance repayment and the expiration of the guarantee.

The court found the CPVA's decision to be clear and well-reasoned, applying legal provisions correctly. The ruling stated that the responsibility for proper project implementation lies with the project executor, in this case, Vilnius University. The court's decision can be appealed.