Construction industry cashflow depressed by public contracts drought

Lithuanian construction industry revenue contracted 3.5% last year, to total €2.5 billion, Verslo Žinios reports.

The contraction is largely down to fewer large-scale public contracts, which is why construction companies focusing on government projects took the hardest hit.

Mitnija CEO Julius Gendvilis tells Verslo Žinios that the company’s revenue contracted 29% in 2015, year-on-year.

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He says that the government did not issue calls for tenders for construction and infrastructural projects because of the start of the new EU financing period 2014-2020.

Meanwhile some companies focusing on the private sector reported growth.

Merko Statyba, owned by the Estonian concern Merko Ehitus, banked €28.4 million last year, or 2.5 times more than in 2014. The company’s head Saulius Putrimas says it is down to its policy to work exclusively with the private sector.

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