Passenger carriers plan to protest again 0 12

Regional passenger carriers are reconsidering the possibility of holding a protest due to the revision of prices in long-term contracts, while the Road Transport Administration (RTA) continues to explore legal options for amending these contracts, the LETA agency has learned.

The Latvian Association of Passenger Carriers (LAPC) met on Wednesday with Minister of Transport Aitis Švinka and representatives of the RTA to discuss issues in the passenger transport sector.

LAPC President Ivo Ošenieks told LETA that the meeting was tense and the carriers did not receive answers to two questions - regarding the revision of prices in long-term contracts and the additional funding necessary for this.

"No answers were provided, so carriers are considering other options, including protests. The possibility of going to court is also being considered, as the industry is being ignored," Ošenieks stated.

He explained that the draft order from the Ministry of Transport, which provides for the allocation of 9 million euros this year for regional bus transport, will only ensure additional funding for basic expenses necessary to avoid a reduction in the route network. "This does not solve the problems arising from the changed economic situation, as the actual cost now significantly exceeds the contractual price," the head of the association added.

He emphasized that the rise in actual costs is not due to the incompetence of the carriers, but rather to global events, the impact of which could not have been predicted during the procurement process. "In this regard, a demand has been made for the revision of contractual prices, and additional funding is also necessary to compensate for the increase, which the Ministry of Transport is not yet ready to acknowledge," he added.

Ošenieks explained that in general, additional funding of at least 15 million euros is required for the indexation of contracts beyond the promised price, which should be provided in addition to the basic funding. "This means that at least another 6 million euros will be needed," he added.

Chairman of the RTA Janis Lapinš informed LETA that the administration continues to work on the carriers' statement, as the contracts were concluded during a public procurement process. In December of last year, the RTA consulted with the Procurement Monitoring Bureau (PMB) to assess the risks and understand whether it is even possible to change the contracts and make amendments.

Currently, the RTA is awaiting a written response from the PMB regarding possible actions. "This concerns not only the possibility of increasing contractual prices but also, for example, the mechanisms for indexation," Lapinš added.

The head of the RTA emphasized that the carriers themselves set the prices for transport per kilometer in the contracts and expressed their readiness to fulfill the contracts under these conditions. "If any carrier does not wish to fulfill the contract, we are ready to seek alternative solutions and carriers who are willing to fulfill the contract, as it is necessary to ensure passenger mobility," he said.

As reported, the Ministry of Transport has prepared a draft order to allocate additional funding of 9.19 million euros for regional bus transport in 2026.