Regional Policy Development In The Field Of Transport

Alminas MAČIULIS, State Secretary of the Ministry
of Transport and Communications of Lithuania

After joining the European Union, Lithuania has gained a right to actively participate in the EU regional policy implementation process that aims at reduction of regional discrepancies and promotion of the development of less-developed regions. In realization of these goals, Lithuania will use the financial aid brought by the EU structural funds. Lithuania shall identify the strongest economy points and make the best use of the economic sectors enjoying the greatest growth potential what should help our country get consolidated on the common European market. This aspiration has been taken for a basis in drafting the Single Programming Document (SPD) for 2004 - 2006 that has been approved by the European Commission Decision No C(2004)-2120 of 18 June 2004 and the Republic of Lithuania Government Resolution No 935 of 2 August 2004. SPD acts as the strategic document in receiving the support of EU structural funds. The experience of countries that have already received the EU structural funds aid money shows that the greatest attention is attached to the development of infrastructure, thus also to reconstruction and modernization of transport infrastructure. The economic growth of Lithuania safeguarding a higher living standard and creating new jobs is impossible without the efficient of transport system and proper infrastructure what helps in exhausting the huge potential of local and international markets. Investment into physical infrastructure is a very important part of SPD. They create a sound basis for the long-term economic development and firstly maximum use of good geographic position of Lithuania that is very convenient for trade and transit. In implementing Measure 1.1. “Improvement of Accessibility of Transport Infrastructure and Its Services Quality” of SPD Priority 1 “Social and Economic Development of the Economy”, the projects on the development of the Lithuanian transport infrastructure are financed from the European Regional Development Fund (ERDF). The said measure covers the projects on reconstruction and development of state transport networks, introduction of environmental and traffic safety measures, modernization of passenger terminals, development of multi-modal transport and logistic centres, and also improvement of local (municipal) transport infrastructure.
655.4 million litas has been allocated for implementation of the aforementioned measure in 2004 - 2006 (491.5 million litas from ERDF and 163.8 million litas is co-financed by the national budget). The projects exercised under the ERDF are selected by approved by responsible Lithuanian institutions strictly following the required procedures. On 5 February 2004, the SPD 2004-2006 supervisory committee confirmed that in the transport sector 72 per cent of all funds foreseen for the transport sector in SPD for 2004-2006 would be used as direct financing procedure (state importance projects) and 28 per cent as limited duration aid granting procedure (local importance projects of which municipal projects account for the major share) (Table 1).
By Resolution No 394 of 8 April 2004, the Lithuanian Government approved the limit for which the Ministry of Transport and Communications might assume commitments for 2004, meaning the money limit to sign aid agreements. The limit is 327.7 million litas (245.8 million litas of ERDF and 81.9 million litas of national budget), this accounting for 50 per cent of the total amount of money foreseen for the transport sector in 2004-2006 (Table 2).

State importance transport infrastructure projects
In implementing activities envisaged in SPD Measure 1.1., on 3 April 2004 and according to the direct financing procedure, invitations were sent to submit applications to state transport infrastructure administrators. 11 applications for construction projects and one application for preparation of project technical specifications were received. The value of proposed projects totalled 784 million litas, of which aid request amounted to 540 million litas. After complex application valuation according to the set criteria, the Ministry of Transport and Communications by Order of the Minister No 3-519 of 12 November 2004 approved maximum aid for the selected projects. Ten projects with the total value of over 501 million litas will receive financing, of which those that have been recognized as fit under SPD rules are valued 460.7 million litas. These projects will receive 376 million litas of aid money , including 328.3 million litas from ERDF and 47.8 million litas as co-financing of the national; budget. The rest money needed for project implementation will be allocated by applicants. Taking into consideration the aid limit established by the Lithuanian Government to the Ministry of Transport and Communications for 2004, aid agreements are to be signed with five applicants this year (Table 3).
Aid agreements on the implementation of the remaining five projects will be signed in 2005 after approving another aid limit for the Ministry of Transport and Communications, It shall be noted that we will retain the sustainable development of all modes of transport. If this year the largest amount of aid money is directed to modernization of road network so in 2005 priority will be attached to reconstruction of railway lines lining international railway mainlines, renewal of automatic control equipment of the rolling-stock, modernization of Klaip?da railway hub and Kaunas Airport.

Local importance transport infrastructure projects
On 9 April 2004, an invitation was announced to submit applications under the limited duration aid granting procedure for local transport infrastructure projects. By the deadline of 9 June 2004, 47 municipalities submitted even 103 applications. The project value totalled 566 million litas, while the actual aid amount was 480 million litas, i.e. the requested aid was by 5 times larger than the actual support. Only 7 applications did not match administrative and project eligibility requirements what shows good quality of the prepared projects. On the remaining 96 applications on 10 November 2004 the Interinstitutional Project Selection Committee in Transport Sector, having analysed evaluation results presented by the Transport Investment Directorate, submitted recommendations to the Ministry of Transport and Communications on granting aid for implementation of projects financed by ERDF and the national budget. The Committee advised to grant aid to 40 projects, of which 25 projects should receive full financing and in 15 projects it was offered to divide implementation of the project into separate stages and to grant aid for implementation of the first stage.

Taking into consideration recommendations of the Project Selection Committee in Transport Sector, Minister of Transport and Communications Order No 3-521 of 12 November 2004 approved aid limits. The intended support will reach all counties of Lithiania (Table 4).
The approved projects will serve for reconstruction of streets in cities and settlements, local importance roads, asphalting of gravel roads, introduction of traffic safety measures (construction of by-passes, construction of viaducts for pedestrians modernization crossings. Construction of bicycle and pedestrian tracks, etc.). The projects will help solving some problems put into applications of municipalities, like reduction of rush hours, improvement of interconnection of rural areas and cities, better services of public transport, safer transport services, etc. These are just a few first benefits brought by the EU membership to the transport sector that will undoubtedly open new prospects for implementation of publicly needed projects

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Kaunas County Meets Its European Future

VALENTINAS KALINAUSKAS

Valentinas Kalinauskas was born on 9 October 1953. In 1977, he graduated in engineering from the Faculty of Machinery Production Technology of Kaunas Polytechnical Institute. In 1988-1993 V. Kalinauskas worked in the capacity of Deputy Chief Engineer and Head of Shop in AB Kauno baldai, in 1993 - 1994 was the Director of UAB Vaidmar, in 1994 - 1996 - Director for Commerce in UAB Genresa, in 1996 - 1997 - Head of Commercial Department in AB Trikota?as, in 1997 - 2001 - Director of UAB Edinija and in 2001 - Director of Kaunas County Division of the Insurance Company UAB Lindra.
Valentinas Kalinauskas was awarded the position of the Kaunas County Governor on 8 August 2001.
In 1993, V. Kalinauskas completed courses on business management (16 months) organized by the Purdue Calumet (USA), Kaunas Vytautas Magnus University and Kaunas University of Technology.
Valentinas Kalinauskas is the member of the Council of New Union (Social Liberals) and the Chairman of the Kaunas Branch of New Union (Social Liberals). His other public activities include Chairman of Kaunas Regional Development Council, Vice-president of Association of Lithuanian County Governors, member of the European Regional Assembly and Baltic Sea States Sub-regional Cooperation Board.
Valentinas Kalinauskas speaks Russian, Polish and English languages.
His wife Nijolė is the chief speech therapist at the Kaunas Atžalynas Secondary School, and they have three sons Donatas, Modestas and Justinas.

In the very centre of Lithuania there is a picturesque region of plains enriched by low hills, engulfed in green forests and inscribed with numerous rivers’ curves. The XII - XVI century architecture style estates, castles and churches are the pearls of the rich cultural heritage of this panoramic landscape. Although scarce in lakes, the region can be proud of the biggest artificial water pool in the Baltic States - Kaunas Lagoon (5145 ha), which was formed by damming up the longest Lithuanian river Nemunas and by building waterpower plant. This peculiar Lithuanian region Kaunas County is characterised by dynamic economic development, unique national cultural traditions, achievements in science technologies and business innovations, crafts, natural resources and especially favourable geographical location. Particularly due to its geographical location Kaunas County is given the future of a logistics centre of strategic importance. This is done with good reason as the road infrastructure already well developed in the Soviet times is currently rapidly modernised with the help of resources stemming from European funds. The region is at the crossroad of the main national roads and motorways. By taking motorway Klaipėda -Vilnius one can easily reach capital city Vilnius that is only 100 km from Kaunas. Only 200 km separate Kaunas from Klaip?da seaport, which is the only ice-free seaport on the eastern shore of the Baltic Sea. The motorway VIA BALTICA from south to north crosses Kaunas City, the former temporal capital of Lithuania in pre-war period and large-scale industrial and technological centre of current times. VIA BALTICA is a transport corridor of European importance connecting Lithuania with South Europe and Northern European countries. The project of the European standard-gauge railway section between the Lithuanian-Polish border and Kaunas is under development. Kaunas County is also mid Lithuania’s air gate to the world. Kaunas Karmėlava International Airport can receive all types of planes. The airport, as well as Kaunas Rivers’ Port, is planned to be included into the future TINA network.
Kaunas County is an important part of regional administrative system covering 6 district municipalities (Kaunas, Prienai, Raseiniai, Kėdainiai, Kaišiadorys and Jonava). Each of them has their priority areas and strategic advantages. Kaunas city, being the centre of large-scale industry, is famous for its scientific potential; Kaunas district has well developed transport infrastructure, Raseiniai district - light industry; biggest chemistry industry companies are concentrated in Jonava and Kėdainiai, Prienai is known for production of gliders; the biggest hydro pump storage plant is located in Kaišiadorys and Biršonas is the third Lithuanian resort famous for its mineral waters and recreational zones.
The unemployment rate in Kaunas County is the lowest in Lithuania and amounts to 8,5 percent (Lithuania’s rate is 10,3%). Gross Domestic Product is 9687,3 million Litas which makes up 19,1 % of Lithuania’s GDP.
Kaunas County is country’s centre of science and technologies. Investment into information society is one of the most important priorities of region’s social policy. There are 368 secondary schools, 17 colleges, 15 vocational colleges, 10 vocational schools, 3 junior colleges and 11 establishments of higher education. More than 52 000 students are enrolled in the establishments of higher education. Qualified human resources, close cooperation among scientific institutions and business as well as industrial structures and modern technologies are one of the most important factors determining economic potential of the region.

Kaunas County Governor and Vicepresident of Lithuanian County Governors’ Association Valentinas KALINAUSKAS shares his views about the perspectives of the development of this strategically important region of Lithuania as well as important issues of regional self-government.

First of all Kaunas County is industrial and agricultural region. Annual industrial output amounts to nearly 4 billion Litas with the biggest share of products being exported. Throughout the last four years the industrial output nearly grew by one billion Litas. Kaunas County is an attractive environment for investment. Direct foreign investment during the last four years doubled in size - from 792 million Litas in 1999 up to 1,5 billion Litas in the beginning of 2003. This is determined by favourable geographical location of the region and well-developed road infrastructure. The main investors are USA, Finland, Germany, United Kingdom, Denmark, Norway, Estonia as well as other countries that have discovered the advantages of Kaunas County long ago and today can already enjoy good economic results of their investment. Knowledge economy and management of regional self-government institutions based on modern technologies and oriented towards preservation of unique merits of the region, gives good results of establishing legally favourable investment environment as well as ensuring economic perspectives for invested capital. The main advantages of our County are very important for the development of the whole region. We are the strategic logistical link between the EU and Eastern states. Highly qualified human resources, potential of advanced technologies, export of world standard produce, free economic zone and available natural resources make the region competitive and attractive for investment. This is proven by the continuous increase of direct investments and tourism flows as well as by growing cooperation with foreign partners. We have signed international cooperation agreements with regions from 12 countries; common projects are being implemented with the most of them. The biggest successful and rapidly growing companies, which have attracted the biggest investments, are public limited liability company Kauno vandenys constructing waste water treatment facilities (200 million Litas), public limited liability company Kraft Foods Lietuva (94 million Litas), and public limited liability company Ragutis which received 40 million Litas for modernisation of beer brewery.

Rich cultural heritage of the County, intact landscape and recreational zones provide excellent possibilities for development of ecological farming and rural as well as health tourism. Special attention is paid to the issues of waste management, wastewater treatment and provision of high quality water. The support of EU funds is important in this regard. Feasibility studies and investment projects are being developed. The biggest projects under development are construction of European standard-gauge railway, construction of multi-modal logistics terminal and construction of Kaunas Exhibition and Conference Centre, Via Baltica Nordica, Sebtrans link (spatial planning, communications infrastructure).
Unfortunately, there still remain problematic issues stemming from the soviet heritage, like land for restoration and land reform. 92 percent of applications for land restoration have been addressed in rural areas and land was returned to its true owners. Sale of agricultural land to natural and legal person will be started at the end of the current year in certain cadaster units where land ownership rights have already been restored. Consolidation work of state owned free land would begin once the process of restoration of ownership rights is completed. Despite the already accomplished achievements there are many areas in the County requiring investment. Kaunas County Development Plan until 2013 has been prepared which clearly reflects Kaunas County vision and future development strategy. We see Kaunas County as the modern economic centre of information society and advanced technologies of Eastern and Middle Europe as well as the cultural and tourism centre with developed international transport logistical system and healthy as well as secure community. The development of new European economy must ensure high quality of welfare of residents and provide them with ample opportunities of self-expression, as well as rapid modernisation of countryside. We strongly believe that such vision of our future connected to the overall Europe development trends and historical background will be successfully brought to life. We hope that Kaunas County will soon become one of the most competitive regions of Europe characterised by particular and colourful lifestyle and reflecting harmonious and productive link between Eastern and Western cultures, markets and values.

The successful implementation of our plans vastly depends upon regional self-government policy and interrelated development of legal basis. Taking into account the European and world experience as well as by assessing historically developed local circumstances and social reality of our region we strive to develop and improve regional self-government system on a national policy level. That is why we initiated the establishment of Lithuanian County Governors’ Association in 2002. The main objective was to coordinate the activities of all counties of Lithuania and ensure their associative expression of interests while aiming at a balanced development of regional policy. At the same time the Association serves as the associated institute of regional government that cooperates with the ministries and other central government institutions while solving regional development problems. Obviously this idea stood up as there is much more dialogue now among government institutions, effective and efficient decisions are adopted, there is rapid progress with regional development projects and programmes and efficient use of European funds resources. The other aim of the Association is to initiate laws favourable to regional development on national policy level. We were the first from the EU candidate countries to present ourselves to European Regional Committee by organising the improvised exhibition-fair representing traditional Lithuanian produce.
Our strategic aim is direct self-government. Regions should be consolidated thus enabling more efficient local administration and absorption of European Structural Funds. We should keep in mind that from the standpoint of European Union Lithuania forms one regional entity. Regional governments should have their own budgets. Without that it is hard to imagine functioning civilised European regional government and balanced regional development process. The powers of regional boards should be increased during the transition period and cooperative budgets should be formed. The next step would be organisation of direct elections of region’s board which then would elect county’s governor. I believe this should take place until 2010. Such new reform of regional government should be based on newly established legal base and with the help of current county administrations and their personnel and specialists who have acquired valuable experience and have necessary regional administration skills.

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Participation of the Kaunas County Governor’s Administration in activities of international organizations:

- Baltic Sea States Sub-regional Co-operation (BSSSC) Board and Working Groups members:
BSSSC was established in 1993, based on the Stavanger Declaration and as a result of the establishment of the Council of Baltic Sea States (CBSS). The BSSSC is open to all the regions of the Baltic Sea Area. BSSSC priority fields of activities: acts as a Pan-Baltic organisation open to all regions around the entire Baltic Sea area, bringing added value to regional co-operation on every side of the Baltic Sea; uses its image as a political organisation and a regional partner to CBSS to promote and advocate the interests of the regions of the Baltic Sea area to decision makers, such as NATIONAL governments, the EU and globally; provides expertise, best practice examples and implementation capacity. BSSSC priority policy areas: Economic Development supporting the economic growth and competitiveness of the Baltic Sea Region; Cohesion Policy contributing to the EU objectives for the financial perspectives 2007-2013; Transport infrastructure working on solutions for the development of transport infrastructure in the Baltic Sea Region; Environment - promoting Agenda 21 for the BSR and focus on sustainable development; Maritime safety promoting the safe use of sea routes and minimizing the risks related to the sea-traffic; quality of life understanding diversity as a competitive advantage of welfare in the BSR.
- Assembly of European Regions, Committee C:
Created in 1985, the Assembly of European Regions (AER) is a political organisation of the regions of Europe and the speaker for their interests on the European and international level. Its vocation: to bring together the regions of Europe and allow them, together, to act in the construction of Europe and European integration. The AER currently has 250 member regions from 26 European countries and interregional organisations. The regions are a pillar for democracy in Europe. They are close to citizens and are therefore in the best position to meet their aspirations and solve their economic and social problems. This regional situation fully justifies the regions’ participation within State institutions but also in the decision- making process at the European level. Consequently the AER has been committed, above all, to promoting regionalism and to institutionalising the regions’ participation in European politics.

- Network of Regional Governments for Sustainable Development (nrg4SD). This global Network was formed in 2002 by the regional governments that attended the Johannesburg World Summit on Sustainable Development, to share information and experience about sustainable development policy-making at the regional level of governance. They agreed the Gauteng Declaration to be the founding document of the network. The international Network nrg4SD promotes understanding, collaboration and partnership on sustainable development, aims to be a voice for and to represent regional governments at the global level, promoting sustainable development at regional level around the world and proving the importance of regions contribution.

International regional cooperation/Agreements on cooperation/Letters of intent:
Vestfold County, Norway
Kronoberg County, Sweden
Paijat-Hame Region, Finland
Frederiksborg County, Denmark
Thessaloniki Prefecture, Greece
Bioblingen County, Germany
Podlaskie voivodship, Poland
Charkov District, Ukraine
Vitebsk District, Belarus
Kaliningrad Region, Russian Federation
Ulan Ude, Buriatia, Russian Federation
Komi Autonomous Republic, Russian Federation

Kaunas County collaborates with the Antwerpen District (Flanders, Belgium), South Moravia (Czech Republic), Uusimaa Region (Finland), Veneto Region (Italy), Taiwan (Peoples’ Republic of China).

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Kaunas County Governor's Administration
Sapiegos 10, 44501 Kaunas, Lithuania
Tel +370 37 222752 Fax +370 37 209191
E mail kava@kaunas.aps.lt
www.kaunas.aps.lt www.kaunasregion.com

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KAUNAS FREE ECONOMIC ZONE

The Kaunas Free Economic Zone is a site that provides tax incentives and is named as a some-kind of business incubator. Lithuanian and foreign companies operating in the field of advanced production, research, warehousing, distribution and finance technologies are invited to get established in the territory of the Kaunas Free Economic Zone. The Kaunas Free Economic Zone (FEZ) should become an ideal bridge between the East and the West. It is located on the intersection of VIA BALTICA, a highway connecting Helsinki, Sankt Petersburg and Warsaw and East-West highway linking the Klaipėda Seaport with Russia and the Ukraine, and is situated close to the Kaunas International Airport. Kaunas FEZ covers an area of 60 ha and there are plans to enlarge the territory up to 1000 ha in the nearest future. The Kaunas FEZ Management Company has been established in the Kaunas International Airport at the address:
Karmėlava
LT-4031 Kaunas District, Lithuania
Phone +370 37 399299
Fax +370 37 399199
petruzis@ftz.lt
http://www.ftz.lt

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Kaunas County Has Collected More Taxes Than Planned

Companies operating in Kaunas County bring significant revenues into the national budget. Business and Exhibitions asked the Head of the Sate Tax Inspectorate of Kaunas County Antanas NESTECKIS to tell more about tax collection.

- What is the amount of taxes paid by the taxpayers of Kaunas County, including foreign capital companies, into the national budget?

- During the first half of 2004, the taxpayers of Kaunas County paid 673 million 324 thousand litas of taxes or other contributions into the national budget. The State Tax Inspectorate of Kaunas County collected taxes by 112.86 per cent, and received income by 76 million 714 thousand litas more than planned. Compared to the first half of 2003, income grew by 134 million 904 thousand litas or 25.06 per cent.
506 million 856 thousand litas was channelled to the state budget during the first half of 2004, the plan for collection of income was realized by 110.86 per cent what was the growth of 49 million 650 thousand litas. Compared to the same period of 2003, income grew by 107 million 141 thousand litas or 26.8 per cent.
Municipal budgets of Kaunas County received 166 million 487 thousand litas. The plan was realized by 119.43 per cent and it was the growth of 27 million 083 thousand litas. Municipal income increased by 27 million 782 thousand litas or by 20.03 per cent compared to the first half of the last year.
A number of foreign capital companies are operating in Kaunas County and they also bring substantial share into the national budget.

- What companies have paid the largest amount of taxes? Have there any violations of tax legislation occurred?

- Ten largest taxpayers of Kaunas County paid 280 million 711 thousand litas of taxes or other contributions during the first half of 2004. As compared to the same period of 2003, this was the growth of 64 million 951 thousand litas (30.1 per cent).
According to taxes paid during the first half of 2004, the following companies are among ten largest taxpayers of the county: AB Stumbras - 76 million 92 thousand litas; UAB Ave Matrox in Jonava - 57 million 734 thousand litas; UAB Lukoil K?dainiai in K?dainiai - 34 million 502 thousand litas; AB Vakarø skirstomieji tinklai - 29 million 598 thousand litas; UAB Haupas in Jonava - 25 million 723 thousand litas; UAB Senukø prekybos centras - 15 million 257 thousand litas; joint Lithuanian and American venture UAB Sanitex - 14 million 155 thousand litas; UAB Kauno termofikacijos elektrin? - 9 million 819 thousand litas; UAB Concern Achemos grup? - 9 million 557 thousand litas and AB Ragutis - 8 million 273 thousand litas.

- What factors stimulate taxpayers to pay taxes voluntary and strictly following the procedure established by the law? Do foreign companies raise specific requirements?

- I think that the majority of company-owners comprehend that tax payment is inevitable and obligatory. The main problem remains how to calculate the exact tax amount and what taxes should be paid and declared. A company finds it very important to feel safe and secure and that no new tax claims will be raised after it presents a tax return and pays all taxes. In this relation, we receive lots of inquiries from foreign entities having business in Lithuania asking whether they are not indebted to the budget.
Our tax inspectorate renders consultations on tax issues, organizes training programmes, collaborates with companies on specific issues. By all means, we think that we should have reciprocal cooperation.

- Please tell us more about taxpayers’ control and prevention of infringements.

- The State Tax Inspectorate of Kaunas County does not exercises episodic inspections. Since the number of taxpayers grows, the economic situation in the country is changing as does the character of taxpayers’ activities, huge attention is directed to accurate selection of taxpayers to be inspected. Tax computation and payment inspections are an expensive type of control, thus selection of companies to be inspected should be very careful. Firstly, we conduct analysis of separate business branches and try to select companies that stand out by the smallest amounts of paid taxes. If dishonest tax payment is suspected, the company becomes subject for very strict and thorough inspection.
We are very happy that some companies, having learnt about certain tax-related problems, try to solve them themselves. We maintain good cooperation with companies in providing them with relevant information and informing about possible problems.

- The State Tax Inspectorate acts not only as a control institution but also organizes consultations and provides any other assistance. What new services have the Kaunas County inspectorate introduced?

- The State Tax Inspectorate of Kaunas County provides many diverse services to taxpayers. Striving to improve the cooperation of the inspectorate and its clients, e-declaration has been introduced. All e-mailed inquiries are also answered by e-mail, all documents may be ordered by e-mail. One of the most recent services introduced in the inspectorate is information provision about all participants of any transaction. Wishing to get such information, a company must conclude a separate agreement with the inspectorate.

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Industrial And Business Development - Top Priorities Of Alytus City

A journalist Vincas Jaskutėlis talked to the Mayor of Alytus City Municipality Vytautas KIRKLIAUSKAS

Alytus was first mentioned in 1377 in the chronicle of Vytautas Marburgietis. In 1589, Alytus became an economic centre. In later years, the town was devastated not once and during the World War II over 60 per cent of buildings and the bridge across the River Nemunas were destroyed.
Alytus, like Lithuania, is experiencing the greatest changes since 1990. The geographic territory of the Southern region of Lithuania coincides with the ethnographic region of Dz?kija and Alytus is called the capital of Dz?kija.
The city has the population of 71 482 of which 97.04 per cent are Lithuanians and national minorities account for 2.96 per cent (Poles, Tatars, Ukrainians, Belarus, Romanies, Germans and Latvians).
The city of Alytus stretches along the picturesque River Nemunas and nature is its greatest value.

- What relations does the local authorities of Alytus maintain with the national governing bodies?
- The major problems and issues we discuss and solve at the bilateral Council of the Lithuanian Government and the Association of Local Authorities in Lithuania. There always are problems to be solved. For instance, the Association of Local Authorities in Lithuania has asked the Seimas to pass the law on local taxes and fees; alas it has not been drafted so far. The Association has prepared a new model for administration of local authorities, suggest electing mayors of municipalities at direct elections, to more clearly set authorizations of executive and legislative bodies. The Association is convinced that the functions of state land management and use presently exercised by the county governors shall be passed to local authorities. Undoubtedly, all municipalities would wish to have larger budgets, although I think that the existing normative acts governing formation of municipal budgets create equal conditions for all municipalities. Local authorities would like to have larger authorizations in regional development and distribution of EU structural funds.

- What is the strategic development plan of Alytus in the context of the European Union?
- The Alytus City Council approved the Strategic Plan for the Development of Alytus City until 2015 in 2002 and the General Plan of Alytus City until 2020 has been approved this year. The planning has been conducted on the principle of sustainable development and with very active participation of the city community. The priorities are set as follows:
- creation of the city image;
- industrial and business development;
- education of human resources;
- development of infrastructure;
- enhancement of environment protection.
Foreign origin capital, mainly US, German, Italian, Finnish, Danish, Polish and Estonian, has been invested into 69 industrial, small and mid-size companies. Over 70 per cent of production is exported. The city and suburban areas abound in water bodies, forests and parks growing in the picturesque Nemunas loop (16 kilometres). There is an excellent potential for the development of recreation and water tourism. The city of Alytus still feels the lack of hotels, camping sites, motels and entertainment centres. Alytus is considered to be the youngest city in Lithuania according to the age of population. We have plans to build a roundabout road with a Northern bypass, a new bridge that should improve interconnection between separate districts of the city, build pedestrian and bicycle tracks, carry out reconstruction of streets, renewal of health care, education and social objects.

- How does the Alytus City Municipality use European Union funds?
- Seeking to best use aid money of EU programmes and structural funds, the Alytus City Council has approved the Alytus City Investment Plan for 2004 - 2007. This has been the first step in assimilating the EU funds. The planned investment projects will help in implementing separate segments of the Strategic Plan.
The final report of the project Development of Social Care Services in Alytus City launched in the beginning of 2003 and financed by the Phare Baltic Sea Region Cross Border Cooperation Programme is being drafted. The project value is 151 854 euro, of which Phare 2001 programme allocations amount to 118 621 euro and the co-financing of Alytus City Municipality makes 33 233 euro. The project aims at safeguarding special treatment, nursing and constant care services, expanding the range of social services, improving the quality of social care services, promoting international cooperation in the field of social care. The targeted groups of the project are unsupported, old-age and disabled people who need special treatment, nursing and constant care services. We are also implementing a project prepared in cooperation with the Jönköing County (Sweden) Cooperation of Jönköping County and Alytus City Municipality in the Field of Social Care Services with partial financing of the Swedish Association of Local Authorities. In the beginning of this year, the municipality prepared three projects and presented them to the Phare Baltic Sea Region Cross Border Cooperation Programme: Creation of Business-Favourable Environment in Cities of Alytus and Suvalkai (total project value is 214 000 litas), Development of Tourism Infrastructure in Alytus City (726 000 litas), and Economic Development of Alytus City through Modernization of Tourism Objects (renovation of a swimming pool in a Sports Hall, project value - 863 000 litas). All said projects undergo evaluation at present.
In the beginning of 2004, two applications were submitted to the Phare 2002 ESS programme: Adaptation of Kurortas Park in Alytus for Tourism and Recreation (project value - 410 000 litas), and Development of Economic and Social Potential in Alytus City through Promotion of Tourism Development (435 000 litas).
On 9 June 2004, the municipality submitted four applications to the Transport Investment Directorate asking for the support from the EU structural funds for reconstruction of J?rat? and Draugyst? streets, building the second lane on Naujoji Street, construction of the roundabout road and building the bridge across the River Nemunas. The value of all four projects totals 80 million litas. We expect to receive answers from the Transport Investment Directorate in November.

- Which project has been the most successful?
- At the end of 2003, we signed an external aid agreement with the European Commission on financing the project Development of Social Care Services in Alytus City. The project has been drafted under the Phare Baltic Sea Region Cross Border Cooperation Programme. The project value totals 151 854 euro, including 118 000 euro of the Phare Baltic Sea Region Cross Border Cooperation Programme 2001. The co-financing of Alytus City Municipality is 33 000 euro. In implementing the project, we have carried out the reconstruction of the buildings of the Alytus Medicinal Rehabilitation and Sports Centre, have equipped rooms for nursing and constant care, have arranged facilities for organization of leisure and special treatment of old-aged people. The centre has bought new furniture, body-builders, computer equipment, TV sets and a music centre. A study tour for five social employees has been arranged to Suwalki.

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Skills Of International Cooperation Are Developed In Common Psychophysical Exercises With The Danish Military Personnel

Ronaldas ENDRIJAITIS,
Instructor of the Physical Education Department of the Military Academy

First Lieutenant Ronaldas Endrijaitis
was born on 9 August 1969,
in Vilnius.
In 1992 he graduated from Vilnius Pedagogical University and acquired profession of the specialist of physical education.
Since 07 September 1998 R. Endrijaitis has been working as an instructor
at the Department of Physical Education.
On 24 November 2000
R. Endrijaitis was admitted to the military service
and was commissioned
as lieutenant.
In July 2003
R. Endrijaitis completed
the post-graduate course at Vilnius Pedagogical University and was conferred
a Masters’ degree.
The trend of his scientific research is psychophysical training of the Lithuanian warriors.

Lithuania’s contribution to international security

This year has become very special for the national defense of the country since the Republic of Lithuania became a true NATO member. From now on the colours of the Republic of Lithuania and NATO will be flying in all the units of the Armed Forces of the Republic of Lithuania. On 29 March 2004 when the Heads of 7 new NATO member states submitted ratification documents to the President of the USA, the so-called probation period ended. The system of National Defense has timely and successfully accomplished its colossal home assignment which was highly evaluated by the NATO experts. Lithuania has gained good references about modernization of the Lithuanian Army, irreproachable participation of our military personnel in international operations under the NATO command. Since 1994 about 2000 of Lithuanian military personnel has gained knowledge and expertise in peacekeeping missions. Predictions might be made that by the year 2014 about 60 per cent of our armed forces will not be confined “tied” to the territory and about 10 per cent of our soldiers should join antiterrorist and peacekeeping missions.

Leader training program at the Academy is response to the challenges of the contemporary world

Having undertaken responsibility for the security not only of their own country, our military personnel have to meet higher qualification requirements. The General Jonas ?emaitis Military Academy shall also react to the demands and improve officer training programs. Officers shall be not only perfect pedagogues to their cadets and good experts of up-to-date weaponry and equipment. They shall also be leaders. In my opinion, the leader has been precisely defined by Henry Kissinger. The task of the leader is to get his people from where they are to where they have not been.
Implementing these tasks Leader Development Programme has been designed in the Military Academy. The officer-leader conceptual thinking skills are developed combining university and military training studies. The officer development methodology is based on the principles of teaching and upbringing of the military institutions of the NATO states.
Leader Development Programme is modern and effective. Qualified teachers and military instructors combine theoretical lectures with the analysis of practical situations, apply video training, teach to work as a team. Cadets learn the principles of leadership, stiles, techniques, philosophy, get to know themselves better, their strong and weak points. The officer- leader has to be capable of creating a vision, to be an example to his military personnel, alongside preserving his individuality. Seeking to pass the knowledge acquired at the Military Academy he has to be a good teacher, to know the abilities of his subordinates, respect their personalities. The conscripts of the Lithuanian army are actually from different social layers, with different backgrounds, from different towns. The future officers have to take them for what they really are, not a kind of people they would prefer them to see, in a way ‘to be in their shoes’, to evaluate them from their perspective and not to judge them.

The officer may be faced by even bigger communication problems while working in the international battalion, where he has to encounter people of different nationalities, political and religious beliefs. The ability to trust others in the face of a serious risk, assurance of positive feedback is undoubtedly a big challenge even for a strong person.

Military Leader Specifics. Communication Problems.

As it has been defined in Leader Development Programme of the Military Academy, Military leadership emphasizes achievement of such goals under stressful conditions of combat-danger and violence; physical fatigue, uncertainty and chance; apprehension and fear; lack of information and frustration of efforts due to “FOG OF WAR”. The leader must be able to perform within the parameters of military action- must be able to pursue military objectives through maneuver, while maintaining security, simplicity and economy of forces, and to mass his means for offensive action to surprise the enemy, while maintaining unity of command and responsibility for his subordinates; i.e. an intelligent individual who can induce people to do the right thing in peace or war. Such individuals must have courage, intellect, willpower, personal presence, physical strength and energy, and understanding of ethos and ethics of war.
Before going on an international mission a soldier of each country acquires this knowledge during the preparatory course. Soldiers familiarize themselves with the peculiarities and tasks of an international operation, Standard Operation Procedures (SOPs), staff work procedures, the locality as well as the culture of the country! During practical training all practical soldiering skills are made uniform, SOP drills are conducted, the unit actions are coordinated, practical knowledge is improved in response to the tasks and specifications of the operation.
Nevertheless, research conducted in Bosnia and Herzegovina by the Leader Development Research Unit of the US Army Research Institute reflects the problem which may seem simple at first sight, but simultaneously turns out to be one of the most complicated: soldiers from different countries don’t understand each other. According to scientists, the problem is not higher or lower proficiency in English. The problem is caused by different standards of thinking. “People don’t understand each other and don’t even know that they don’t understand what others are thinking. This problem is very common here. You think you are getting your message through and you are not... Not being able to communicate (here) is a big problem”, - states a Spanish officer who participated in that mission.

In international missions soldiers are affected by stress syndrome

The seminar entitled “The experience of the Lithuanian Army in performance of peace support operations that was held at the general J. ?emaitis military academy of Lithuania by the Tactics Department, was aimed at exchanging the experience of Lithuanian military personnel that participated in former and current missions. The discussions resulted in revealing one problem. 1 Lt R. ?epanonis, the 2IC of 3rd Coy of the Great Duchess Birut? MIB, sharing the up-to-date information about the US-led multinational operation IRAQI FREEDOM, emphasized that despite advance preparation of military personnel most of them encounter complex psychological problems.
One of the most urgent problems is that soldiers do not cope with psychological stress. People suffering from stress syndrome, inflicted by life-threatening events, often have nightmares, they are plagued by ghostly memories, sometimes have attacks of anxiety or aggression. 34 Polish soldiers were diagnosed with the illness that originated from psychical stress.
Stress syndrome is aggravated not only by the fact that warfare takes place on an undefined territory. Clashes most frequently break out in the cities where civilians interfere with two fighting groupings. They sometimes refuse to be evacuated and often join the fighters. So the war gains the nature of guerrilla warfare which contains one of the most complex elements i.e. unpredictable reactions of civilians. Military personnel get involved into complex and ambiguous situations. They go on patrol, perform the function of the military police, protect civilians and suppress their riots at the same time. They try to protect civilians from suffering however, if they delay to react, they will put themselves in danger. One cannot forget the fact that an intensive information war is in progress and every combat operation is covered on the mass media and, depending on the source, is interpreted rather controversially.
All the above mentioned factors put the military personnel under severe psychical and physical stress.

Cooperation with the Lithuanian Academy of Physical Education (LAPE)

It has been the second year when the bilateral agreement on cooperation between the Military Academy and the Lithuanian Academy of Physical Education has been pursued. A common scientific research “The Optimization of the Psychophysical Training of the Lithuanian Soldiers” is also being pursued.
As it has been mentioned, the functions of the military personnel in the presentday world have fundamentally altered. They have become more universal, therefore, military personnel is required to possess more physical and mental strength, they are put under greater physical and mental stress. For this reason the research, description and development of the military personnel’s psychophysical training has become the core goal. The research takes place in the laboratory of human kinetics at the LAPE. The executive of the research is dr. hab. Albertas Skurvydas. The cadets of the Military Academy are being examined with the help of the newest equipment. At present the following courses of the research are being implemented:

1. the estimation and evaluation of the capabilities of the kinetic system;
2. the estimation and evaluation of the resistance of the kinetic system to distress.
The time of reaction, the change of the time of reaction after some load as well
as the time of reaction while performing complex tasks are also analyzed. The research of this kind is relevant to the military personnel. In a battle, being tired and under stress, which directly effects a soldier’s physical and mental condition, he has to recognize the enemy (or even several enemy objectives), and destroy it in limited time. It is also necessary to decide which of the enemy objectives is more dangerous and which has to be destroyed first. This activity is modeled by the analyzer of the dynamic parameters of human motion. A factor of fatigue and stress is introduced, and cadets perform their tasks. The data collected from this research will be compared with the results of the data collected from other military personnel of Lithuania. It may also be possible to compare these results with the results of the foreign military personnel.

A Gift From Denmark to the Military Academy of Lithuania

Traditions of cooperation of the Military Academy of Lithuania with the Royal Military Academy of Denmark are very old. They started in 1998 when instructors from the Defence Management Center Education Improvement Division were visiting Lithuania.
During the last three years, under the treaty of mutual cooperation between the Military Academy of Lithuania and the Royal Military Academy of Denmark, five cadets have gone to Denmark every year and five cadets from Denmark have come to Lithuania. Cooperating in this way the two related tertiary higher schools seek to achieve mutual goals by psychophysical training, the essence of which is to physically and emotionally get ready to take part in international operations, peace support missions, and to learn to communicate effectively in complex and tense situations.
As is known, since June 2003 the platoon called Lithuanian Contingent from the Lithuanian Grand Duke Algirdas Mechanized Infantry Battalion has been serving in Iraq on the strength of Danish battalion near Basra.
In the future, Lithuanian and Danish military plan to take part together in international operations and peace support missions.
The support of the Royal Military Academy of Denmark is important to Lithuania, because most of its personnel have officer ranks and experience in international peace support missions. Thus, cadets from the Military Academy of Lithuania, taking part in the training together with the Danish, can gain invaluable knowledge and experience of work in the international environment. The Danish colleagues have accumulated a lot of methodological material and share it with the Military Academy of Lithuania.

How Mutual Psychophysical Training with the Danish is Conducted

Danish cadets and officers have visited the Military Academy more than once and they have shown the demonstration-teaching program, the essence of which is to reveal the specific characters of team work, relationship between the leader of the group and his followers, possible ways to seek the objectives wanted. Psychophysical exercises of this character correspond to NATO standards and are well-known by the military personnel of all the old countries of the alliance.
The main point of the exercise is to imitate international cooperation of military personnel, participation in common peacekeeping and anti-terrorist operations executed by NATO allies. Executing tasks together everybody learns to communicate in English with military personnel of other countries in extreme situations under stressful battle conditions, to command an international unit effectively. Cadets of both countries must comprehend the mentality, culture, ways of leadership, specific character of communication of the alien state.
During the exercise complicated psychological and physical situations are created and it is watched how military personnel of two countries succeed to communicate, overcome various obstacles and difficulties. Feeling great physical and psychological stress and shortage of time military personnel of two states must carry out tasks requiring concentration and accuracy: to make common decisions, help each other to elect a leader for the fulfilment of the task, be helpful under any circumstances. The task is supposed to have been carried out successful if the members of the group deal with all elements of team work listed earlier. If the group makes a mistake or fails to deal with tasks, each member of it is responsible for the negative results. Similarly, if they succeed, everybody is happy and proud of good results.

Cadets Enjoy Good Results

Observing cooperative tendencies between the Military Academy and the Royal Military Academy of Denmark in recent years, I want to point out, that cadets have gained more professional technical, pedagogical knowledge and skills, and what’s most important - some experience in international team work.
It was very useful for cadets to get acquainted with the tests of physical training, which cadets of the Royal Military Academy must carry out. While trying to fulfil those truly complicated tests they could compare their strength. They had to carry out not only physical exercises but also negotiate various obstacles that require coordination and planning of joint actions.
Field exercises in picturesque Zarasai region made particularly strong impressions upon Danish cadets. Together with the Danes cadets were building tents, chopping wood and making up the fire. They rowed 5 km down the river by two-seater canoes to the water mill and made friends.
In summary, I would like to emphasize that it is not enough to familiarize the cadets with the military technologies and armament or to teach the ABC in tactics. Future officers should be broad-minded specialists so called “universals”, good managers knowing not only their “trade: field but much more - leaderships, psychology, economics and management laws.
Thus, co-operation with Danish cadets helped our cadets to acquire knowledge and experience in management psychological skills, experience how to work in a team. They also learned thoroughness and were familiarized with the peculiarities of Danish culture.
Friendship with the Military Academy of Lithuania was useful for Danes as well. Joint training improved their improvisation abilities and communication skills.
In the future Germany’s Dresden officer school cadets are planning to join the Danes.

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