Road Financing and Management in the Baltic States

Abstract

Until the early 1990s, the Baltic states, namely, Estonia, Latvia, and Lithuania, were constituents of the former Soviet Union. When the Baltic states achieved independence, they faced challenges in finding ways to develop and maintain their neglected road networks. The new republics organized individual road administrations according to their specific needs and governmental frameworks. They chose different means of collecting and distributing the funds needed for their national road networks. Before independence, all road construction and maintenance were done by force account. Since independence, the road administrative structures and financing arrangements have undergone considerable change. A common concern in the three Baltic states is that the current levels of funding for roads are lower than those needed to maintain their national road networks. If adequate funding is not available, it is likely that there will be increased backlogs of periodic maintenance, resulting in a greater need for reconstruction later. The present system of management and financing for roads in each of the three governments is discussed. A brief comparative analysis of the markedly different approaches to management and financing of the road networks in each of the three Baltic states is also presented. The sources of the information include publications and interviews with road administrations during missions to the Baltic states.