Lithuania moves to terminate €8 million agricultural IT contract

Lithuania’s National Paying Agency (NMA) has initiated the termination of an €8 million contract with IT companies iTree Lietuva and ISense Technologies for the modernisation of the country’s agricultural support administration system, ŽŪPAIS.

The contract was signed in March 2023 to improve electronic services and streamline the administration of agricultural subsidies.

After initial implementation problems, the parties agreed to an extended deadline under a court-approved settlement in 2025. However, the agency says the required work was not properly completed or delivered by the revised deadline of 23 March 2026.

NMA began the unilateral termination procedure on 19 October, subject to a 14-day notice period. It is now assessing how to preserve completed technical components and continue the system’s development.

iTree Lietuva disputes the agency’s assessment. Its director, Audrius Krikštaponis, told BNS that the company considers its obligations fulfilled and hopes the disagreement can still be resolved. The company may pursue legal action if the termination proceeds.

The dispute leaves the future implementation of a major public-sector IT modernisation project uncertain.