TALLINN - When it comes to road repair, the Ministry of Economic Affairs and Communications has put speed and thrift over quality, the State Audit Office stated in a report released June 28.
During the recently completed audit of the Road Administration, an agency under the Ministry of Economic Affairs and Communications, the State Audit Office, which serves as the financial watchdog of Estonia's public administration, found serious problems in road repair projects, in providing fair competition among repair contractors and in funding road construction.
The Road Administration and the ministry are planning to repair as many roads as possible, and as fast as possible, without due concern over the usability of the roads, the experts of the State Audit Office concluded.
"The State Audit Office is not confident whether the roads currently being repaired will remain, under proper maintenance, in suitable condition until the next capital renovation - or after 15 years. Some of the recently repaired roads may have cracks already in three to four years," the experts wrote.
The Ministry of Economic Affairs and Communications reacted strongly to the report, saying that the ministry did not find it necessary to assess the administration work regarding the repairs.
Mihkel Oviir, head of the State Audit Office, said that it was quite surprising to hear such a reply on a matter that serious, adding that the road construction situation should be further discussed in Parliament.
Riho Sormus, head of the Road Administration, agreed with the remarks of the State Audit Office but said that the administration's current policy was to simultaneously keep as many kilometers of road in good shape as possible.
Another reproach slated in the report considered the March 2003 agreement for joint bidding between the four largest road construction companies in the country, which snatched 80 percent of the total contracts last year. The contractors offered a higher price than the state had planned and even after negotiations with the best bidder, the ministry paid more than it initially expected to.
"Large portions of work and high demands set for the turnover of bidders had cut the competition and may have caused price increase," the report read.
Peeter Vilipuu, CEO of AS Teede REV-2, the general contractor for the Via Baltica road repair in Estonia and other projects, told the Postimees daily that several companies joined efforts to be more competitive, as the bids were international and could have involved larger foreign companies.
According to the Ministry of Economic Affairs and Communications, Estonia has to make a choice in favor of keeping the majority of its roads in average condition. Better quality roads could become affordable in five to 10 years.
