The prices of road construction projects may increase by 15%, said Latvian Minister of Transport Tālis Linkaits in an interview to TV3 programme 900 seconds.
«Price fluctuations do influence work one way or the other, but currently it is virtual – in dialogues with construction companies we talk about ways to compensate price fluctuations. We’ve found a model to cover bitumen costs, metal products costs and other expensive products,» said Linkaits.
He said the price increase may reach 15% of the initial end price, which is similar to Lithuania and Estonia, where the price increase is about 12-15%.
The minister also said more than EUR 300 million is already allocated for road construction projects in Latvia for this year. «We managed to same a large amount thanks to high competition. This why with more than EUR 300 million we will be able to afford what he have planned,» said Linkaits.
He added that this year there are plans to perform work on 100 objects. Work on 77 of them has already begun.
At the same time, Linkaits said there may be 2-4 objects in which contracts may be terminated.
Minister: prices of road construction projects may increase by 15%
