Latvia to bring in private funding for Via Baltica highway development
Latvia continues to implement large-scale road construction projects, unlike Estonia. In developing the Via Baltica, private capital is once again being involved.
Latvia faces significant traffic congestion, particularly on roads from Riga towards Lithuania and on the Riga bypass. A long-standing issue for Estonian travelers, the crossing of the Salaca River, is expected to become easier in about a year and a half, as a new bridge is set to be completed.
On the Lithuanian side of Riga, traffic jams have been alleviated by the Kekava bypass, though more roads are still needed. The Kekava project is Latvia's first successful public-private partnership (PPP) project, and the country plans to continue road construction using private capital.
"We are currently preparing the next phase, the Bauska bypass, which will also be implemented under the PPP model, involving private capital. This will be followed by the Iecava bypass. Once these are completed, drivers will be able to travel from Riga towards Lithuania on a modern, four-lane road with a speed limit of 120 km/h. After that, we will still have to complete the Riga bypass, and then we can gradually move towards Estonia, with Skulte and other necessary sections," said Martinš Lazdovkis, chairman of the board of Latvian State Roads.
Like Estonia, Latvia does not have the funds for large infrastructure projects solely from the state budget. In the case of the Kekava solution, the investment will be paid off over a couple of decades, with annual payments of just over €12 million.
"We've seen a significant decrease in the availability of EU funding for road construction in recent years. Meanwhile, traffic volumes have increased on many sections, including the Via Baltica route. That is why I have consistently emphasized in meetings with European transport ministers that we need investment, especially given the slow economic growth in the EU and the Baltic states," said Kaspars Briškens.
Through the PPP model, Latvia plans to make the entire Latvian section of Via Baltica a four-lane highway. There are no plans to introduce toll roads in Latvia.
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Editor: Mari Peegel, Marcus Turovski