Losses among regional public transport operators in Latvia could reach 6.95 million euros this year, according to Ivo Osenieks, president of the Latvian Passenger Transport Association (LPPA).
The association has sent a letter to parliamentary party factions, calling for meetings with regional carriers to find solutions to the chronic underfunding of public transport – a problem that could soon lead to service interruptions across the regions.
According to the association, since 2022, the costs of providing services have significantly increased due to the economic impact of Russia’s war in Ukraine. As a result, carriers with long-term contracts are now facing projected losses of nearly 7 million euros in 2025.
Osenieks warned that if no action were taken, the consequences could be felt within the next few months.
“Every kilometer driven now causes losses for companies. In reality, carriers are currently subsidizing passengers themselves – ensuring that students get to school, pensioners reach medical institutions, and workers arrive at their jobs,” he said.
The association cautioned that if companies went bankrupt, the state would be forced to urgently find new service providers, who would likely demand higher prices, while the bankrupt carriers’ debts would become direct state losses.
At the same time, in several regions, carriers already fail to complete all scheduled routes, mainly because insufficient funding prevents hiring enough bus drivers. The number of canceled routes is expected to rise across all regions due to the growing driver shortage.
The LPPA also noted that the Public Procurement Law allows significant amendments to existing contracts if they are necessary due to unforeseen circumstances, provided the changes do not exceed 50% of the original contract value, or up to 10% without assessing material impact.
Currently, Latvia’s regional route network is divided into 16 service lots. Between 2019 and 2025, the Road Transport Administration (ATD) has signed long-term contracts for 14 lots through five procurement rounds. However, in two regions – “Cesis” and “Sigulda, Limbazi” – long-term contracts have not yet been concluded, and services there continue under direct award arrangements. (BNN)