Vilnius Mayor: Waste management losses won't burden consumers

Vilnius Mayor V. Benkunskas has assured residents that any financial losses incurred due to increased waste management costs will not be transferred to consumers. He stated that while the situation is generating losses and recovery will involve a lengthy legal process, he is confident the responsible party will be proven.

Benkunskas explained that even if there were a desire to shift these costs, legal barriers prevent it. The pricing is determined by a regional price set by a commission, making such a transfer legally impossible. He emphasized that this is both a political and administrative decision.

The municipal company VAATC, responsible for waste management, is financially stable enough to cover these temporary losses and associated legal expenses itself. Benkunskas confirmed that the company has sufficient funds in its current accounts and does not require additional loans or capital injections from shareholders.

VAATC CEO Marius Švaikauskas corroborated this, stating that the company's accumulated reserves are adequate to cover all current expenses and losses. He previously mentioned these reserves amount to 20 million euros. Švaikauskas anticipates that once the facility is fully operational and VAATC takes over its management, the region will no longer face such a crisis, and VAATC will manage the plant independently.

However, opposition council member Aleksandras Nemunaitis questioned the allocation of VAATC's reserves, suggesting 90% is earmarked for the Kazokiškės landfill. Švaikauskas responded that work at the landfill is proceeding under budget, allowing a portion of the reserve to be dedicated to the current situation at the MBA facility. He noted that procurement for the landfill project was more cost-effective than planned, freeing up funds.