Finance Ministry to decide on funds for construction of Dienvidu Bridge by January 28
Finance Ministry will reply Riga City Council by January 28 whether it will be permitted to take out a LVL 85 million loan for construction of Dienvidu (Southern) Bridge across the Daugava, Finance Ministry^apostrofs;s press secretary Baiba Melnace told LETA.
Finance Ministry will reply Riga City Council by January 28 whether it will be permitted to take out a LVL 85 million loan for construction of Dienvidu (Southern) Bridge across the Daugava, Finance Ministry's press secretary Baiba Melnace told LETA.
The ministry received the Riga City Council's letter seeking authorization for taking out the loan on January 14, and has two weeks to prepare a reply, Melnace said.
The project is stuck until the Riga City Council's correspondence with the Finance Ministry on financing for construction of the bridge is over, Dans Bertulis, director of the Riga Regional Development Agency, told LETA.
Riga Vice Mayor Aivars Guntis Kreituss (Labor Party) told LETA that if the Riga City Council took out the loan itself it would be cheaper. If Finance Ministry does not permit the city council to take out the loan, the construction companies could do it through signing a trilateral agreement with the city council and Finance Ministry. In this case, however, the interest on the loan would probably be higher, and the city council might have to pay more as a result.
The Riga City Council wants to get a clear answer whether it will be allowed to take out the loan, stressed Bertulis. If the city council is permitted to take out the loan and there are no other obstacles, first round of construction of the bridge could be completed already in 2006 or 2007.
Overall, LVL 85,119,393 are to be invested into the construction of the Dienvidu Bridge. The company "Dienvidu tilts" won a tender on designing and constructing the bridge.
Minister of Finance Valdis Dombrovskis (New Era) earlier said that the Finance Ministry would not allow using Riga budget's money on the project.
The ministry received the Riga City Council's letter seeking authorization for taking out the loan on January 14, and has two weeks to prepare a reply, Melnace said.
The project is stuck until the Riga City Council's correspondence with the Finance Ministry on financing for construction of the bridge is over, Dans Bertulis, director of the Riga Regional Development Agency, told LETA.
Riga Vice Mayor Aivars Guntis Kreituss (Labor Party) told LETA that if the Riga City Council took out the loan itself it would be cheaper. If Finance Ministry does not permit the city council to take out the loan, the construction companies could do it through signing a trilateral agreement with the city council and Finance Ministry. In this case, however, the interest on the loan would probably be higher, and the city council might have to pay more as a result.
The Riga City Council wants to get a clear answer whether it will be allowed to take out the loan, stressed Bertulis. If the city council is permitted to take out the loan and there are no other obstacles, first round of construction of the bridge could be completed already in 2006 or 2007.
Overall, LVL 85,119,393 are to be invested into the construction of the Dienvidu Bridge. The company "Dienvidu tilts" won a tender on designing and constructing the bridge.
Minister of Finance Valdis Dombrovskis (New Era) earlier said that the Finance Ministry would not allow using Riga budget's money on the project.
