About us

Governance Coordination Centre

The Governance Coordination Centre is the analytical centre founded by the Government, which seeks to ensure consistent and professional governance at state-owned enterprises (SOEs). The functions undertaken by the centre include a wide range of SOE coordination activities: nominating independent board and supervisory board members, overseeing the implementation of strategic plans, analytical reporting and publicity of the SOE activities, assistance shaping the SOE sector policy and providing advice on matters concerning good governance to be introduced.

The main objective of the GCC is to promote the introduction of good governance principles at SOEs.

As far as the above activity is concerned, the GCC strives for the following main areas to be improved:

• To improve SOE transparency and accountability;
• To reinforce the independence and improve the competencies of independent collegial supervisory bodies at SOEs;
• To promote a degree of centralisation and efficient governance of SOEs.

that the majority of SOEs had poor performance, whereas the corporate financial return on equity had accounted for merely 0.1% back in 2009, which was significantly lower than the average of the European state-owned enterprises and the average return on equity in private sector companies (around 9%).

The SOE reform was launched in 2010. Its aim was to achieve that the state became a professional and responsible owner of enterprises actively seeking to increase its asset value. Back in July 2010, the Government approved the Guidelines for Ensuring Transparency of State-Owned Enterprises (Transparency Guidelines). These guidelines set forth the core requirements for the disclosure of SOE performance and appointed the Ministry of the Economy and Innovation as the body responsible for overseeing the implementation of the Transparency Guidelines and preparing summary reports on SOE performance.

July, 2010

The Government approved the Transparency Guidelines. These guidelines set forth the core requirements for the disclosure of SOE performance and appointed the Ministry of the Economy and Innovation as the body responsible for overseeing the implementation of the Transparency Guidelines and preparing summary reports on SOE performance.

The Government approved the Ownership Guidelines which provided for the Governance Coordination Centre (GCC) to be founded, the criteria for board competencies and independence, and the process for setting and implementing top-level objectives of SOEs.

2011

June, 2012

The Ministry of the Economy and Innovation had a team built up to be tasked with overseeing the Transparency Guidelines, preparing summary interim and annual reports, and assisting in the policy-making concerning the SOE reform.

The SOE Governance Coordination Division was set up under Valstybės turto fondas. It undertook the GCC functions provided in the Ownership and Transparency guidelines.

September, 2012

• To improve board performance (via improvements in nomination process, creation of potential members database, evaluation of their competence, consulting activities)
• Setting goals (calculation of long-term profitability of SOEs, optimal capital structure and dividend indicators and coordination with SOE, SAO and approving institution – the Government of the Republic of Lithuania, calculation of short-term specialized indicators of financial and non-financial performance measurement, coordination with SOEs and SAIs and approval; Assessment of the adequacy and ambition of the strategic goals and objectives of SOEs, monitoring of their implementation).
• To evaluate the costs for non-commercial functions of the companies and to separate commercial functions from non-commercial ones
• To separate corporate governance and market regulation functions – depoliticize the SOEs
• To improve transparency of the companies’ operations (via the preparation of aggregated SOE performance reports, analytics of management salaries and enterprise efficiency)

Pending Lithuania’s membership in the Organization for Economic Cooperation and Development (OECD), Lithuania was involved in the Working Party on State Ownership and Privatisation Practices under the organisation’s Corporate Governance Committee in the capacity of a Participant. The Governance Coordination Centre together with the Ministry of the Economy and Innovation are actively involved in the activities of the party.

October, 2014

Following the merger of VĮ Valstybės turto fondas and VĮ Turto bankas, the functions of the Governance Coordination Centre were undertaken by the SOE Governance Coordination Division at VĮ Turto bankas.

Since the Law on the Management, Use and Disposal of State and Municipal Assets was amended, the functions of the state-owned enterprise Governance Coordination Centre have been undertaken by VšĮ Stebėsenos ir prognozių agentūra.

July, 2017

November, 2020

Finally, since the Law on the Management, Use and Disposal of State and Municipal Assets was amended, the VšĮ Stebėsenos ir prognozių agentūra changed name and now is VšĮ Valdymo koordinavimo centras (Governance Coordination Centre).

As shown in the annual report on SOE activities 2017, it was a rather successful year for the companies, which lead to the state receiving a EUR 202 million return, which has doubled if compared to 2014. A larger number of companies paid significant amounts in dividends or profit contributions. The previously dominating Lietuvos energija, UAB, Group and AB Klaipėdos nafta this year were joined by the companies operating in the transport and communications sector: EUR 34 million was paid by AB Lietuvos geležinkeliai; after a seven-year break, VĮ Klaipėdos valstybinio jūrų uosto
direkcija made a profit contribution with the value exceeding EUR 22 million; VĮ Kelių priežiūra and VĮ Lietuvos oro uostai had also their profit contributions increase considerably.

In 2017 alone, the decisions long-considered unfeasible were passed to merge road maintenance companies and forestry enterprises with their reorganisation completed in November 2017 and January 2018 respectively. The board and supervisory body member selection procedure was further reviewed and a decision was passed to establish that at least half of the elected collegial body members must be independent members. The audits performed by the National Audit Office of Lithuania prompted a review of the expediency of corporate assets as well as the assessment of the relevance of the state enterprise legal form.

Stebėsenos ir prognozių agentūra

Public Enterprise Stebėsenos ir prognozių agentūra (formerly the Social Policy Group) was set up by the Ministry of Social Security and Labour of the Republic of Lithuania and the United Nations Development Programme Lithuania back in 1996. In 2005, the enterprise’s stakeholder rights were transferred to the Lithuanian Labour Market Training Authority under the Ministry of Social Security and Labour of the Republic of Lithuania, and in 2010, to the Ministry of the Economy and Innovation of the Republic of Lithuania. Since 1 July 2017, VšĮ Stebėsenos ir prognozių agentūra, following a resolution of the Government of the Republic of Lithuania, was assigned with the functions of the state-owned enterprise (SOE) governance coordination centre.