Electric bus purchases carried out so far by municipalities using European Union funds have been implemented inefficiently, according to a performance audit by the Valsts kontrole (State Audit Office, VK).
Head of the VK Communications Department Gunta Krevica stated that 14 municipalities purchased 19 electric buses for €8.4 million, despite significant operational limitations.
Some of the buses were of inadequate quality, and not all were fully zero-emission, meaning the objective set for the measure was not fully achieved. The buses are heated using diesel fuel, resulting in lower emission reductions than planned. Overall, the reduction in emissions is small compared to the amount of public funding invested.
Due to various limitations, the electric buses are idle on average 53% of the year. Their annual mileage is on average 43%, or 13,400 kilometers, less than planned, auditors found. In certain cases, buses remained unused for extended periods for other reasons. For example, in Ogre municipality, an electric bus worth approximately €665,000 stood idle for more than four months because there was no driver available. In Preiļi municipality, a bus remained in repair for an extended period due to defects.
The State Audit Office noted that procurements were conducted in a decentralized manner, competition was insufficient, and public funds were not used economically.
Municipalities carried out around 33 separate procurements, increasing administrative burden, narrowing competition, creating significant price differences, and resulting in higher costs.
If all municipalities had purchased minibuses at the lowest available price, savings of approximately €677,000 could have been achieved, the State Audit Office estimates.
Some of the newly acquired electric minibuses had significant quality deficiencies at the time of delivery, including rust, cracks in ceiling panels, and an inability to ensure adequate heating in the passenger compartment. Nine of the 12 delivered minibuses were built by combining two cargo van bases.
“The measure was implemented with the aim of absorbing the available funding rather than achieving the best possible result. Although the objectives were justified, the outcome is expensive and of limited practical usability, and the invested public funding has not produced a proportionate benefit,” assessed Member of the State Audit Office Council Mārtiņš Āboliņš.
He noted that during the audit it was repeatedly stated that without EU funding municipalities would not have purchased such vehicles. In the State Audit Office’s view, this approach is incorrect and it is time to change attitudes toward unreasonable use of European funds. “EU funds are public money and should be treated the same as one’s own money,” Āboliņš emphasized.
The average price of the purchased minibuses was €277,000, while buses cost €581,000 on average. There were significant price differences for identical bus and charging equipment models. For example, the price difference for identical buses purchased in Jelgava and Preiļi municipalities was approximately €43,000, while the same model was purchased in Lithuania in 2022 for an average of 37% or €168,000 less.
Charging infrastructure construction often did not align with the measure’s objectives. In some cases, large asphalted areas were built and expensive landscaping zones installed.
At the conclusion of the audit, the State Audit Office issued five recommendations: three to the Ministry of Smart Administration and Regional Development, one to municipalities, and one to the Ministry of Transport.
Broader use of electric buses would reduce downtime and increase the benefits of their acquisition. Improved oversight of similar measures and strengthened internal control procedures within municipalities would help prevent recurrence of the identified deficiencies, the State Audit Office emphasized.
At the same time, in the field of student transportation, uniform quality requirements for transport services and the vehicles used are planned, with primary responsibility resting on the Ministry of Transport.