  We propose a computational scheme for materials where standard Local Density
Approximation (LDA) fails to produce a satisfactory description of excitation
energies. The method uses Slater's "transition state" approximation and Wannier
functions basis set. We define a correction to LDA functional in such a way
that its variation produces one-electron energies for Wannier functions equal
to the energies obtained in "transition state" constrained LDA calculations. In
the result eigenvalues of the proposed functional could be interpreted as
excitation energies of the system under consideration. The method was applied
to MgO, Si, NiO and BaBiO$_3$ and gave an improved agreement with experimental
data of energy gap values comparing with LDA.
