According to a report submitted by the Ministry of Transport on the development strategy for national main roads until 2040, a total of 2.902 billion euros is needed to fully restore Latvia’s state road network, based on 2024 estimates.
To comprehensively improve the condition of all state roads, including construction, maintenance, and earmarked subsidies for municipal roads at a minimum of 25%, an annual budget of 816.4 million euros would be necessary.
Although the Road Law stipulates that road financing should correspond to forecasted tax revenues of 817 to 863 million euros between 2025 and 2027, in reality, annual state budget allocations for road restoration amount to only 306 to 362 million euros.
The Ministry of Transport aims to increase the allocation to the State Road Fund by gradually ensuring that the revenues from relevant taxes and fees are redirected to roads, as provided by law.
The ministry emphasizes that by 2040, the reconstruction of existing roads and the construction of dual carriageways on 1 000 kilometres of the main road network should be prioritized. Bus stops should be located away from the roadway, pedestrian traffic should be directed via multi-level crossings, and roads should be equipped with animal fences, crossings, and noise barriers.
The average cost of building or reconstructing one kilometre of dual carriageway in 2025 prices is approximately 9.4 million euros.
In the first phase (2026–2030), the priorities are the A7 highway (including the Bauska bypass, 60.1 km) and the reconstruction of the A4 (Baltezers–Saulkalne) ring road around Riga.
The second phase (2030–2035) includes the reconstruction of the A5 (Salaspils–Babīte) ring road and its connection to the A4, including a bridge over the Daugava River.
The third phase (2035–2040) involves reconstruction of existing dual carriageway roads: the A2 (Vidzeme Highway) up to Lorupes Grava, A8 (Jelgava Highway), and A10 (Jūrmala Highway). Additional plans include reconstruction of the A6 (Koknese–Pļaviņas, 17 km), A1 (Tallinn Highway, 90 km), and A10 (Jūrmala–Tukums, 48.4 km).
Given insufficient national funding, priority will also be given to regional roads that connect towns or administrative centers, ensure cross-border connectivity with high traffic volumes, or link other regional roads with moderate traffic intensity. Achieving these goals requires an additional 391.4 million euros.
For local roads, by 2040, every populated area with a parish administration should be accessible by a road in good condition with a black (asphalt or similar) surface.
The ministry concludes that until full funding through the Road Fund is achieved, road construction must rely on available national and EU budget programs.
To build the justified segments of the TEN-T core network, 1.9 billion euros is needed (excluding the Bauska public-private partnership project), while building the entire TEN-T core network would require 6.1 billion euros. The ministry must prepare justifications for rebuilding all TEN-T segments by 2030.
To implement the regional and local road strategy until 2030, an additional 365 million euros is needed, and a further 391.4 million euros by 2040. For improving local accessibility (second priority), 198 million euros is required by 2030 and 165.9 million euros by 2040.
The ministry notes that the issue of additional national funding should be addressed during the preparation of the annual state budget
and medium-term fiscal framework, based on available resources.
According to the ministry, poor road conditions cause economic losses of 728 million euros annually due to higher vehicle operating costs, longer travel times, and increased greenhouse gas emissions.
The road strategy is being revised to align with new EU regulations and reflect the current condition of roads, available financing, and national strategic goals.
In 2021, the Cabinet of Ministers took note of a report planning the construction of about 1 055 km of high-speed roads by 2040. Based on 2020 estimates, rebuilding 1 000 km of national roads into dual carriageways would cost 5.206 billion euros. Final project costs depend on detailed designs, location, and complexity.