The road and bridge construction season and the execution of planned works this year are under threat, stated the organization "Latvijas ceļu būvētājs" (LCB).
The road and bridge construction season and the execution of planned works this year are under threat, stated the organization "Latvijas ceļu būvētājs" (LCB).
The consequences of Russian aggression against Ukraine and military actions in the Middle East have caused an unprecedented rise in construction costs and prices for building materials in the road construction industry.
LCB's analysis shows that the contracts concluded with the State Joint Stock Company "Latvijas valsts ceļi" (LVC) for the 2026 construction season include rates for raw materials and works that are unfeasible due to rising prices for raw materials. For example, the price of bitumen has increased by an average of 42%, the price of fuel has risen by about 25-30%, and the price of natural gas has increased by approximately 40% compared to 2025.
Since March of this year, LCB has repeatedly appealed to LVC, responsible ministries, the Prime Minister, and other institutions to address the situation in the government, but has received no responses.
The organization stated that two months have passed since the start of the war in the Middle East, during which any issue could have been prepared and considered in the Cabinet of Ministers. LCB emphasizes that the road construction season in Latvia has now become two months shorter, and "the government continues to remain silent, and there is still no clarity."
Last week, Minister of Transport Aitis Švinkas stated at a conference of the Latvian road industry that decisions and support mechanisms in the sector were planned to be discussed at a government meeting this week; however, this issue was not included in the agenda for the meeting on April 29.
The Ministry of Transport has prepared an informational report on the impact of the Middle Eastern conflict on the transport sector in Latvia, which also outlines possible solutions and support mechanisms.
Information on the legal acts portal indicates that the informational report has restricted access status.
The report was developed using experience gained during previous crises, especially in the 2022 construction season after Russia's invasion of Ukraine, when a methodology for recalculating the cost of construction works was applied under conditions of significant price increases in contracts.
Among other measures, the report plans for more flexible application of contracts, compensation for rising costs, the possibility of extending deadlines for execution or concluding contracts, and in some cases, the non-application of penalties for delays in starting work if the reasons are related to external circumstances beyond the control of the customer or contractor.
