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Ventas osta to cover Ventspils Freeport authority’s expenditures during transition period

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Ventas osta, Ventspils, port management, by-laws, Transport MinistryThe newly-founded AS Ventas osta will be covering Ventspils Freeport authority’s expenditures in order to perform the necessary management functions during the transition period, as provided by the by-laws approved by the Latvian government on 25 February.

Transport Ministry has developed By-laws for port management functions at Ventspils port. Port management functions to be applied with by the new by-laws are mainly associated with management, maintenance and development of real estate, infrastructure, surrounding water area of the port, as well as perform planning of the port’s finances.

The ministry explains the goal of by-laws is establishing an order under which Ventpils port authority and Ventas osta perform management functions during the transition period until the law intended to change the port management model ‘in accordance with good management principles’ has come to force.

Until now Ventspils Freeport authority has acted in its functions by signing off contracts for state and municipal real estate property use, construction, and has also implemented multiple development projects. The ministry explains that this means in order to take over all duties of Ventspils Freeport authority a transition period is needed. It will help evaluate duties, lease real estate properties and resolve problems with establishment of duties with Ventas osta as an institution responsible for performing duties of Ventspils Freeport authority.

At the same time, authorities have yet to decide on Ventspils Freeport authority’s future activities.

The approved by-laws provide for Ventspils Freeport authority continuing implementing the port development programme previously approved by the Latvian Ports, Transit and Logistics Council.

Transport Ministry notes that in November 2019 the government approved Ventspils Freeport authority’s budget for 2020. The port’s functions will be secured based on this document. Ventas osta will operate based off the budget approved for Ventspils Freeport authority.

The ministry explains that until a new port management model has been established to reorganize or liquidate Ventspils Freeport authority, it is necessary to develop a procedure for cooperation between Ventspils Freeport authority and Ventas osta to ensure uninterrupted operations and management of the port’s moveable and immovable property.

More on this topic: Ventas Osta added to the regulations of Latvian Transport Ministry

The by-laws provide for the formation of a joint commission between Ventspils Freeport authority and Ventas osta.

Transport Ministry explains that real estate property will be handed over to Ventas osta after consultations with European Commission’s specialists on compliance with regulations for control of commercial operations.

At the same time, to ensure uninterrupted operations of Ventspils port, the by-laws provide for Ventas osta cover the costs that may surface in efforts to ensure operations of the port, maintenance and management of its assets and infrastructure. This means that until Ventas osta has received all necessary resources (human resources, equipment, transports, as well as the foundation needed for port services), these duties will be performed by Ventspils Freeport authority.


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