PPP projects

Palanga bypass

The aim of the project ‘The Implementation Project of the Palanga Bypass Construction and Maintenance’ is to direct transit traffic coming from Šiauliai and Klaipėda and going in the direction of Liepaja and back (from Liepaja to Šiauliai and Klaipėda) from the city of Palanga.

The project beneficiaries: Palanga city dwellers, tourists and holidaymakers coming to the resort of Palanga, transit traffic from Šiauliai and Klaipėda heading in the direction of Liepaja and back, Palanga airport users.

The project implementation undoubtedly improves the residential setting of the Palanga city, reduces noise and air pollution. It also improves the attractiveness of the Palanga city as a resort area, which would make a positive impact on the development of tourism in the area. The constructed bypass improves traffic conditions in summer when due to several times increased number of tourists traffic congestion occurs at the approaches to Palanga. The bypass distributes transport flows more evenly and the entrance to the city would be more convenient and faster. In the future the importance of the constructed bypass increases due to possibly increased heavy transport flows of the Būtingė oil refinery terminal and the expanded sea port infrastructure.

The project has become an exemplary PPP project in the transport sector. Public and private partnership is frequently the only way to develop the public infrastructure faster and at a larger scale. It is especially important when public financing is decreasing, especially in 2009 when the funds of the Road Maintenance and Development Programme decreased due to economic crisis. In case of PPP project implementation, in the beginning of the project implementation smaller investment sums are required as project development and implementation costs are divided into equal instalments throughout the whole project implementation period (usually 25 years).

Public-private partnership contract was signed by the Lithuanian Road Administration under the Ministry of Transport and Communications, JSC ‘Plėtros investicijos’ (successful tenderer) and JSC ‘Palangos aplinkkelis’ on 10 April 2013.

On 30 April 2013 JSC ‘Palangos aplinkkelis’, the company, which will manage and administer the project for 25 years, submitted the bank security, and the contract came into force on 30 April 2013.

In the period of two years, the project contractor JSC ‘Kauno tiltai’ constructed 8.25 km long Palanga bypass (the bypass constructed on the territory of the Palanga city (6.25 km) and Kretinga district municipality (2 km). When constructing the bypass, the Vydmantai intersection near Palanga was reconstructed into a grade-separated cloverleaf interchange and two intersections were constructed. It will be maintained for 23 years and during that period repaired twice. According to the PPP contract, after 25 years JSC ‘Palangos aplinkkelis’ shall ensure that the estimated exploitation period of the Palanga bypass should not be shorter than 10 years.

The value of the project is 35.8 million EUR.

The contract expires on 30 April 2038.

Construction of Palanga bypass and reconstruction of Vydmantai intersection has been finished.

JSC ‘Palangos aplinkkelis’ is responsible for routine and periodical maintenance of the constructed road section from the 1st May 2015 to 30 April 2038.

If you have any comments or complaints regarding the conditions of Palanga bypass, please refer to tel: +370 626 93 009  or email: