LTG Infra Terminates Rail Baltica Bridge Contract Over Violations

LTG Infra, the Lithuanian railway infrastructure company, has terminated its contract with Rizzani de Eccher, the contractor for the Rail Baltica Neris River bridge. The decision comes after repeated violations of contractual obligations, including failure to adhere to the construction schedule and non-payment to subcontractors. LTG Infra stated that continuing with the current contractor posed a significant risk to the timely completion of the bridge.

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Now the most important thing is that the construction works of the Neris bridge are resumed as soon as possible. The Rail Baltica project is strategically important for both transportation and the security of the entire region, so we must ensure that the construction of the European railway gauge in Lithuania does not stop, and the project is completed by the end of 2030. It is important to react actively in time, before it is too late.

"We cannot tolerate gross contractual violations, non-performance of work, and non-compliance with financial obligations. We must take active steps and not be a passive observer when the implementation of a strategic project is threatened," said Arūnas Rumskas, interim CEO of the LTG Group. The company emphasized that the bridge is a vital component of the Rail Baltica project, which is strategically important for both transportation and regional security, with a goal to be completed by the end of 2030.

Lithuanian Minister of Transport Juras Taminskas stressed the urgency of resuming construction work on the Neris bridge. He noted that while the bridge is a single part of the larger Rail Baltica initiative, the project continues to gain momentum. Currently, construction spans a 114 km stretch from Kaunas to Panevėžys, where the first kilometers of European-gauge tracks have already been laid.

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We cannot tolerate gross contractual violations, non-performance of work, and non-compliance with financial obligations. We must take active steps and not be a passive observer when the implementation of a strategic project is threatened.

LTG Infra explained that terminating the contract and selecting a new contractor is considered a safer alternative than continuing with the current one. The remaining construction work, including the pouring of columns and the bridge deck, is estimated to take just over a year. LTG Infra has fulfilled its payment obligations to Rizzani de Eccher for all completed and justified work. Subcontractors who have not been paid will need to initiate legal proceedings to recover funds directly from the general contractor. LTG Infra is already preparing for a new tender process to find a replacement contractor.

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It is important to emphasize that the bridge over the Neris will be built, and this decision is necessary to ensure it. The termination of one contract does not stop the Rail Baltica project in Lithuania and does not negate LTG Infra's commitment to implement it, ensuring market liquidity and smooth work continuity. LTG is currently preparing for the re-announcement of the tender.