Latviski English По-русски
Friday 10.04.2020 | Name days: Anita, Anitra, Zīle

Media: termination of contract with Tīrīga could cost Riga one million euros

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

If the court of justice approves Competition Council’s (CC) decision to prohibit waste management company Tīrīga from establishing a monopoly, Riga municipality may have to pay private businesses compensation worth EUR 1 million and repay investments, as reported by TV3 programme Nekā Personīga.

The programme reports that if no contract is signed by Riga City Council, Getliņi Eko and Tīrīga, the city council will have to pay private partners compensation worth EUR 1 million, as well as compensate investments. One of the companies that is part of TīrīgaClean R – has purchased 17 new garbage collectors and dump trucks, as well as several cars, journalists report.

Journalists have accessed the contract worth EUR 676 million between the municipality and private partners. The contract states that Riga’s residents are to pay more and more for waste management in future years.

Nekā personīga has concluded that Riga residents’ expenses for waste management will increase from a couple of per cent up to a maximum of 60%. According to the concession contract, the pay for carrying 1 m3 of waste in the first year will be EUR 17.65 (no VAT) with a gradual increase to EUR 23.41 in 2020. Estimates do not include change with nature tax. Nevertheless, tariffs will increase even more rapidly together with tax increase.

Although transportation of sorted waste should be performed free of charge, the fee for it is still included in the tariff. Each 1 m3 of waste brings profits worth EUR 0.09, Nekā personīga reports.

The section that could reduce the tariff is income from sale of sorted waste. However, the digit ‘zero’ is written in this section for the entirety of 20 years. The 171-page large contract does not mention who will receive income from raw materials fit for recycling, journalists report.

Currently 90% of all recyclable packaging in Latvia is bought by two companies. The combined annual turnover of the two companies reaches EUR 16 million. One of them is Latvijas zaļais punkts, which has close ties with Tīrīga’s member Eco Baltia vide.

«This system has long since been organized in a way that when new duties appear, they are put on the shoulders of waste managers, whereas the price remains uncontrolled, which means no costs are under control,» Nekā personīga was told by Latvia’s Environment Protection and Regional Development Minister Juris Pūce.

«We don’t know the cost of transportation of sorted waste or its recycling. None of these indexes have ever been checked by any institution in Latvia,» admits Pūce.

Outdated contract and «bargain» dealer

The justification for handing Riga’s waste management market to a single company is based on results of a study performed in 2015. It cost EUR 48 000 and recommended forming a joint company together with private businesses. However, according to Nekā personīga, the study is outdated now, because Latvia is committed to creating a waste deposit system. On top of that, the study does not explain the basis for expectations for investments in Riga’s waste management sector.

The study itself was performed by Geo Consultants and Konsorts, who, according to Nekā personīga, are based in the same building. Neither company agreed to speak with journalists, because Riga City Council did not give them permission.

Geo Consultants has won many state and municipal tenders in the past. Among its owners are University of Latvia vice-rector Valdis Segliņš and Latvian Waste Management Companies Union’s board member Jānis Ābeltiņš. Konsorts was founded by and is now managed by once Latvia’s Finance Minister Uldis Osis. He was an advisor to then the Prime Minister of Latvia Andris Šķēle.

To organize the tender, Riga municipality hired lawyer Edgars Atlācis, who was briefly in charge of Getliņi Eko’s procurement commission in 2013. At the time, contrition of a recycling plant was entrusted to a company owned by Šķēle – Vides pakalpojumu grupa.

The recycling plant’s design and construction supervision was provided by Geo Consultants. Šķēle’s name no longer appears among the company’s owners. The firm itself has been added to one of Tīrīga’s monopolists Clean R, Nekā personīga reports.

Leave a reply

Riga City Council's snap elections to be rescheduled for 29 August

The snap elections for Riga City Council are planned to be rescheduled for 29 August, according to amendments submitted by Latvia’s Environment Protection and Regional Development Ministry to the Law on Dismissal of Riga City Council.

Latvian government supports idea to support municipal companies during crisis

Municipalities in Latvia will have the right to receive state budget loans to increase base capital of municipal companies if their turnover drops more than 50% because of COVID-19 crisis, as provided by amendments supported by the Cabinet of Ministers on Thursday, 9 April.

Nordic Investment Bank lends Latvia EUR 500 million to battle COVID-19

The Nordic Investment Bank and Republic of Latvia have signed a loan contract on provision of EUR 500 million for ten years. The loan is expected to be used to finance efforts to battle COVID-19 pandemic, BNN was told by Finance Ministry.

Churches in Estonia give guidance on Easter home services

For the coming Easter, the Estonian Evangelical Lutheran Church is overcoming the epidemiological ban on public assembly with online services, guidance for small home services and phone conversations, Archbishop Urmas Viilma unveiled, ERR reports.

COVID-19 update in Baltics. 589 infections in Latvia, 955 in Lithuania, 1 207 in Estonia

The number of confirmed COVID-19 infections in Latvia has reached 589, increasing by 12 new cases in the past day. Lithuanian media, meanwhile, report 955 confirmed cases.

KNAB still sees no corruption at Ventspils City Council in spite of proof

Although Latvian Corruption Prevention and Combating Bureau (KNAB) is openly told Aivars Lembergs’ propaganda campaign is financed using public finances even after US sanctions, which proved Ventspils City Council ignores sanctions, the bureau still says this information does not contain indication of a criminal offence involving corruption.

EU Court: Poland has to reform disciplinary body in its Supreme Court

The European Court of Justice has called on Poland to stop the operation of the Disciplinary Panel of the Polish Supreme court to separate it from the influence of the parliament and government, British public broadcaster BBC reports.

Riga’s administrators reserve EUR 13.87 million to battle COVID-19

During the approval of the city’s 2020 budget, Riga’s interim administrators decided to increase Riga’s reserve fund’s volume to EUR 13.87 million.

US presidential election set to be battle between Biden and Trump

In the US, Senator Bernie Sanders has left the fight for the presidential candidate nomination from the Democratic Party. He has left ex-Vice President Joe Biden the only contender for the nomination and the rival to President Donald Trump in the 2020 US presidential election, American news agency AP reports.

EUR 45.5 million to be diverted for support of agriculture in Latvia

To reduce the COVID-19 crisis in agriculture sector Latvia’s government will divert EUR 45.5 million, as agreed by Finance Minister Jānis Reirs’ work group for support of entrepreneurship and employed people on Wednesday, 8 April.

Global number of COVID-19 cases surpasses 1.5 million

Globally, the number of the confirmed infection cases of the novel coronavirus has exceeded 1,5 million, while a total of 329 thousand people are believed to have recovered. US is still the worst affected nation by the number of infections, German public broadcaster DW and American John Hopkins University report.

Reminder: no visits during Easter holiday

The holiday is near and people want to know if they can meet relatives and friends. Latvian Healthcare Ministry reminds – the virus has no holidays. Any private events involving people who do not live together are prohibited.

Court of first instance rejects Ušakovs’ appeal on dismissal as mayor of Riga

On Wednesday, 8 April, the Administrative District Court rejected Harmony politician Nils Ušakovs’ applications in which he appealed the order issued by Environment Protection and Regional Development Minister Juris Pūce on his dismissal from the post of mayor of Riga, as reported by the court.

Latest on COVID-19 in Baltics. 577 in Latvia, 912 in Lithuania, 1 185 in Estonia

The number of COVID-19 infection cases in Latvia has reached 577, increasing by 29 cases in the past day. Lithuanian media, meanwhile, report 912 confirmed infection cases. Public data in Estonia reports 1 185 infection cases in this Baltic State.

Inflation in Republic of Latvia reportedly at 1.4% in March

Compared to March 2019, the average level of consumer prices rose by 1.4 % in March 2020. Prices of goods have increased by 0.9 % and prices of services by 2.7 %.

Lithuania’s BC chief: «Latvia’s COVID-19 support for business has been swifter»

It is official: Lithuania is extending lockdown until April 27 to combat the coronavirus pandemic which death toll in the country stood at 15 as of Wednesday noon. As many as 912 persons were diagnosed with COVID-19 by then.

Lithuania on path to allow price regulation in government

In Lithuania, the majority of legislators in the Seimas, have backed draft amendments that set forth allowing the government to regulate the prices of essential goods during this time of quarantine, Lithuanian public broadcaster LRT reports.

BNN EXPLAINS | Envelope wages – one of the main reasons why idleness benefits may be denied

People need certainty – if they honestly pay taxes, they should be able to receive support from the state in the event of a crisis, since they have taken care of the state all this time by paying taxes, BNN was told in a phone conversation by chairman of LBAS Egils Baldzēns.

Criminal process launched against Aivars Lembergs for defamation

On 7 April 2020 State Police Kurzeme RP Saldus Department’s Criminal Police Office commenced a criminal process against Aivars Lembergs for untrue statements and claims he has used on multiple occasions during meetings of Ventspils City Council and Finance Committee against city council deputy Ģirts Valdis Kristovskis, as BNN was told by Kristovskis.

Latvia’s Prime Minister: we are financially well-situated in this crisis

We are financially well-situated in this crisis, said Latvia’s Prime Minister Krišjānis Kariņš in an interview to LTV programme Rīta panorama.

Latvian government supports dismissal of State Land Service’s director general

Latvia’s Cabinet of Ministers has supported Justice Ministry’s prepared decision project that details the dismissal of the State Land Service director general Solvitai Zvidriņa from her post, as confirmed by Justice Ministry.

China lifts lockdown in Wuhan

In the Chinese city of Wuhan, where the global pandemic of COVID-19 began, a lockdown has been lifted for the first time since January, British news portal The Guardian reports.

Support in Latvia for COVID-19 crisis prevention reaches four billion euros

The volume of support available in Latvia to finance preventive measures to overcome COVID-19 crisis has reached four billion euros, as reported by Latvian Finance Minister Jānis Reirs on Tuesday, 7 April.

Another month stuck home. Latvian government extends state of emergency

The state of emergency declared in Latvia because of COVID-19 pandemic has been extended until 12 May, as confirmed by Foreign Affairs Minister Edgars Rinkēvičs on social media on 7 April.

75 reports on competition distortions reported to Competition Council in 2019

Last year, the Competition Council received a total of 75 reports related to competition distortions caused by public persons, according to information listed in the latest public account for the institution’s more significant accomplishments in 2019 and developments in competition rights enforcement in Latvia.

Do NOT follow this link or you will be banned from the site!