The Spanish company Cointer Concesiones (“Cointer”) intends to exercise its statutory rights and challenge the results of the procurement of the Kekava bypass project before the Procurement Monitoring Bureau (PMB), Conter representatives said.
“There are a number of aspects of this project which, in the light of our international experience, do not appear to be entirely fair at first and we will ask the PMB to examine them in the exercise of its statutory rights,” Cointer said, noting that Cointer had no claims against The Ministry of Transport, SJSC “Latvijas valsts ceļi” and the procurement commission, but the issues are related to the offer of the association of persons “Kekava ABT” recognized as the winner of the tender.
Representatives of the company pointed out that the Azvi Group, which includes Cointer, has more than 100 years of history, significant experience in public-private partnership (PPP) projects worldwide and a project portfolio of more than three billion euros, and this acquisition was one of the first steps to enter the Baltic market.
The company will inform the public and the media about the next steps.
The company also mentioned that Cointer is still interested in this project and work in the Baltic market.
It has already been reported that the PPP contract for the design, construction and maintenance of the Kekava bypass has been awarded to the association “Kekava ABT”, which consists of the Luxembourg-based investment fund “Transport Infrastructure Investment Company 2 SCA, SICAR” (“TIIC 2 SCA, SICAR”). , as well as JSC “ACB” and SIA “Binders”.
Of the two bidders who submitted final bids, Kekava ABT was selected as the most economically advantageous bid, which also had the lowest price. The association of these persons, controlled by 80% of the total investment, is controlled by the Luxembourg-based investment fund TIIC 2 SCA, SICAR, which specializes in large-scale transport and public infrastructure projects in Europe and elsewhere in the world and has branches in Luxembourg, Portugal and France. ACB and Binders each account for 10% of the investment in the association.
The decision taken by “Latvijas valsts ceļi” allows the selected applicant to apply to financial institutions in order to agree with them on the final conditions for receiving financing after an in-depth examination of financial and technical capabilities. The PPP agreement will be concluded only after the approval of the financial institutions to finance the project in cooperation with the specific partner.
The availability payment to the private partner will be up to € 13.5 million excluding value added tax (VAT) per year. Depending on the various circumstances, the amount may be lower, but certainly not higher. According to the calculations of the agency LETA, the maximum amount in 20 years can reach 270 million euros without VAT.
The second bidder was Cointer, with experience in providing infrastructure and public services in Europe and elsewhere in the world. The bid of this tenderer was 11% more expensive, the representatives of “Latvijas valsts ceļi” previously informed “.
The Kekava bypass will be the section of the main national road Riga-Bauska-Lithuanian border (Grenctāle) (A7) from 7.78. up to 25 kilometers. Its lane-kilometers will be approximately 100 kilometers, including a four-lane road (two lanes in each direction) – 12.22 kilometers, a two-lane road with one carriageway and one lane in each direction – 5.36 kilometers, parallel roads and overpasses – 20.7 kilometers. The project includes two tunnels, six bridges and overpasses, 10 roundabouts, two pedestrian bridges and tunnels and 6.5 kilometers of noise solution.
Kekava bypass will be the first project in the Baltics, which will be implemented according to the principle “design-build-maintenance-finance”. The private partner will provide design, construction, financial attraction and road maintenance for 23 years. In the case of the Kekava bypass, the private partner will be fully responsible for all maintenance work on the site throughout the PPP contract, including spreading, cleaning, mowing the compartment (roadside), destroying hogweed, lighting, electricity for lighting and other traffic management equipment, maintaining public transport stops , restoration of horizontal road markings and other works.
The private partner will also guarantee that for another five years after the expiry of the PPP contract, the Kekava bypass will remain of such a quality that it will require only day-to-day maintenance and no capital investment.