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Friday 03.04.2020 | Name days: Daira, Dairis
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Central Market’s rent contract signed during Ušakovs’s reign may have cost Riga millions

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUEx-Mayor of Riga Nils Ušakovs’ signed contract for the rent of Riga Central Market may have cost the municipality more than nine million euros, as reported by TV3 programme Nekā personīga.

In 2013 a tender was announced for the development of the Industrial Goods Market territory. There was only one contender – Estonia-based Promenext OU. The company was founded a couple of months after the signing of the contract with Riga Central Market, as reported Nekā personīga. In spite of the company having no experience, Ušakovs approved the deal.

The initial term of the contract was 12 years, the rent fee was EUR 100 000 a year. The tenant had agreed to set up modern trade locations and parking space. However, should the contract be terminated for any reasons, the Central Market’s businessman would have to pay back all investments, journalists report.

The contract was later expanded with several more parking lots and a trade centre. If buildings are built, the Central Market would have to buy them back. According to information from the programme, the project may cost nine million euros.

Riga’s Mayor Oļegs Burovs told Nekā personīga that this contract is «a story of failure» and is not beneficial to the city.

Estonian company’s subsidiary SIA Promenex’s legal address is the same as the Central Market. Its board member Maksims Rjabčkovs is associated with tenant Kaufmann Concepts, to which Vidzeme Market is rented out. Companies associated with the market management reach all the way to Ušakovs’ ex-advisor and businessman Ēriks Teilāns, notes Nekā personīga.

The programme allows that the construction of a supermarket was Promenex’s main goal. Maxima Latvija was contacted with an offer to work there but no agreement was reached. According to information from Nekā personīga, negotiations with Maxima Latvija on behalf of Latvia were headed by Teilāns’ trustee Boriss Carjovs, who is involved in public transport company Rīgas satiksme’s nano water criminal case.

Read also: Riga Central Market becomes more accessible for disabled people

When Ušakovs left the city council, responsibility over the Central Market was handed to Vadims Baraņņiks, who then terminated the contract with Promenex. He has requested from the Central Market’s manager estimates about the market’s losses from termination of the contract, as well as information from control mechanisms should the contract be maintained. He promises to make the decision around the end of October.

Nekā personīga is aware, however, that Ušakovs is unhappy with this initiative. Previously, continuation of the Central Market’s rent contract was used to secure Harmony votes for Burovs during mayoral elections in Riga.

The Central Market shareholder’s representative Baraņņiks told Nekā personīga that the contract with Vidzeme Market’s tenant, which may be associated with Teilāns, ends this year and will not be extended.


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