LTG Infra Seeks Agreement with HISK to Expedite Rail Baltica Construction in Panevėžys

The construction of a crucial section of the Rail Baltica railway in Lithuania faces potential delays due to a dispute between the project implementer, LTG Infra, and the contractor, HISK. The disagreement centers on the time taken to obtain essential technical documentation and construction permits for the 12.3 km Berčiūnai–Joniškėlis stretch in the Panevėžys district.

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We are seeking an agreement with HISK and the quickest possible start to construction in the Panevėžys district.

Mindaugas Ivanavičius, head of Rail Baltica in Lithuania, explained that while the main documentation was received in July and the contractor was officially informed of the go-ahead, a dispute emerged regarding the preparation of technical documents and the timeline for obtaining permits. The contractor has also submitted a claim for costs incurred due to these delays, based on the contract.

LTG Infra is currently assessing the legitimacy and proper use of EU and state funding for these expenses, adhering to international financing requirements. Ivanavičius stated that technical and organizational issues are being resolved, and the company is proposing compromise solutions through mediation to preserve the contract, avoid litigation, and commence construction promptly.

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In July, the main documentation necessary for construction work was received, submitted to the contractor, and he was officially informed that construction work could begin.

However, LTG Infra is prepared for the possibility that mediation may not yield an agreement. In such a scenario, the company will immediately initiate actions to ensure the continuity of construction work by launching a new tender for a contractor. With the technical documentation and permits now secured, construction on this segment can begin swiftly and is expected to be completed within two years.

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Our assessment is that technical and organizational issues are being resolved. In the mediation process, we continue to offer compromise solutions that would allow us to preserve the contract, avoid a lengthy legal dispute, and start construction work in the Panevėžys district towards Latvia as soon as possible.

Ivanavičius emphasized that progress on construction is the clear priority, as Lithuania has secured funding for 114 km of the Rail Baltica line and seeks additional investments for future EU funding periods. The advancement of these construction works is vital not only for this specific contract but for the overall financing perspective of the entire Rail Baltica project, a strategic undertaking for Lithuania and the Baltic region.

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We do not rule out the possibility that an agreement will not be reached in the mediation process – in that case, the company is prepared to immediately take action to ensure the continuity of construction work and announce a new tender.