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Wednesday 17.10.2018 | Name days: Karīna, Gaits
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Riga municipality to restrict waste management sector for 20 years

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RURiga municipality has decided to unjustifiably limit the number of service providers in waste management industry for 20 years, said Competition Council Communication Office manager Paula Vilsone, commenting on the recent tender for household waste management in a public-private partnership.

She says CC is not generally against a public-private partnership model in waste management sector in the capital. At the same time, CC finds it confusing that after multiple recommendations from the institution, including the proposal to divide Riga into separate waste collection zones, Riga City Council decided to preserve a single zone for the entire city. Concerns are also caused by the lengthy period of time chosen to limit competition – 20 years.

Vilsone explains that the waste management market has experienced a significant degree of restriction in the past several years. Limitations were introduced by regulations unfavourable for competition, and the spreading trend for municipalities to entrust this service to their owned companies. All this only further reduces the amount of space for private waste management companies – more than half of all waste management in Latvia is performed by companies owned by municipalities.

‘A 20-year limitation on the number of service providers imposed by Riga municipality and its recent signing of one of the largest waste management contracts will create very negative consequences for the competition. It will motivate private companies to leave the market, reducing competition, increasing prices, reducing quality and limiting market growth in the future,’ said Vilsone.

Getliņi waste landfill managing company SIA Getliņi EKO has announced a tender to find a private partner for household waste management in Riga in the form of a public-private partnership.

Riga has delegated Getliņi EKO as the one responsible for this project.

The funding planned for the project’s realization period – which is 20 years – is EUR 507.6 million.

The tender’s first stage has been announced. It will be used to select contenders for the second stage.

The goal of this project is developing Riga’s household waste management system. It is planned to form infrastructure for sorted waste collection, which will include household waste collection, transportation and their preparation for processing.

It is also planned to increase the accessibility of waste collection service, keep society informed and education on the matter of environment awareness and waste sorting. It is also planned to increase waste processing capacity and adopt a new processing form.

As part of the project, it is planned to renew the existing container park, establish new locations for collection of sorted household waste, construction of roofs for existing container locations, installation of underground-type containers in Old Riga, replacement of existing vehicles and establishment of new sorted waste collection zones.

Application submission will continue until 30 August 2018.


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