The decision adopted today by the Vilnius Regional Waste Management Centre (UAB VAATC) to terminate the operating agreement for the Vilnius Regional Mixed Municipal Waste Sorting Facility with our company is unlawful, non-transparent, and contrary to the principles of fair competition. We will challenge this decision in court.
“No consideration is being given to the interests of residents. It is already clear that waste management costs for households in the Vilnius region will increase, while the restoration of the waste sorting facility will be delayed by several more years,” says Algirdas Blazgys, CEO of our company.
We learned about the decision, adopted by the VAATC Board on the afternoon of Friday, 10 July, through the media.
Once we receive the official documentation, we will undoubtedly challenge the decision before the court.
“We have fulfilled the operating agreement properly and have been managing mixed municipal waste from the Vilnius region for nearly ten years. We regard this contract termination as an act of unfair competition and preferential treatment of companies that are more politically favoured,” Blazgys emphasises.
We later received a notification from VAATC stating that the waste management services would be transferred to UAB Ecoservice.
“According to our calculations, waste management costs for residents will increase by at least EUR 33.5 per household per year. This is because we have been providing the service at EUR 53 per tonne, whereas other waste management companies seeking to take over the service are currently charging around EUR 120 per tonne,” Blazgys notes.
Should the court rule that the decision was unlawful, residents will ultimately also bear the cost of any damages awarded.
The Vilnius City Municipality owns 76.51% of VAATC’s shares, while the remaining shares are held by other municipalities of the Vilnius region.