With decreasing funding, not all the objectives set for the maintenance and development of national roads can be met. In a situation where there is not enough money to meet the targets, the Ministry of Economic Affairs and Communications (MEAC) must set priorities that correspond to available funding or propose additional funding options for road maintenance.
Figure. Approved funding for road maintenance and funding needs presented in the road maintenance plan, € million
Source: National Audit Office on the basis of road maintenance plans
The decrease in funding for road maintenance increases the risk that existing roads cannot be repaired and maintained to the extent that road quality and road safety do not deteriorate in the near future. The roughness of roads has improved steadily over the past decade, with the biggest improvements on main roads, which have been reconstructed and built using EU funds. In the years to come, the funds allocated in the budget are significantly smaller than is needed to maintain the roads in their current state. This increases the risk that road quality will start to deteriorate.
It is not realistic to complete the Trans-European Transport Network (TEN-T) by the agreed deadline. Estonia has made a commitment to the European Union to upgrade the roads of the European core road network to the requirements of the TEN-T Regulation by 2030. The Government of the Republic of Estonia wants to finance the development of roads only with the support of European Union funds, but the money allocated to Estonia for the construction of roads is not enough to meet its commitments.
As funding is decreasing and prices are rising, the MEAC and the Government of the Republic must decide on the priorities of road maintenance. The national strategy documents set out a number of objectives for maintaining and developing the quality of national roads and improving road safety, but there is not enough money to meet these objectives and no long-term plan to secure funding. In a situation where funding is decreasing and construction prices are soaring, it is necessary to step up control over rising costs, ensure a transparent selection of sites and decide which investments to make and in what order.
Main recommendations of the National Audit Office
Recommendation of the National Audit Office to the Minister of Economic Affairs and Infrastructure:
- Identify the financing opportunities (including long-term) and needs for public roads in conjunction with rail development plans, taking into account the current situation, and then set priorities that correspond to the opportunities.
According to the minister, different financing options have been mapped out in the road maintenance plan for national roads and the action plan for the development of public railway infrastructure. The priorities and objectives for both rail and road maintenance are reflected in the Transport Competitiveness and Mobility Programme and correspond to the possibilities of the state budget strategy. The minister confirmed that both long-term loans and the use of the public-private partnership model have been analysed and proposals have been made to the Government of the Republic.