Repse proposes ban on "Skonto buve Ltd." in participation in national tenders
If the construction company "Skonto buve Ltd." disagrees to cut costs for construction and design plans of the administrative building complex for the State Police, a ban could be set against the company on participation in tenders, Prime Minister Einars Repse told the Cabinet meeting today.
If the construction company "Skonto buve Ltd." disagrees to cut costs for construction and design plans of the administrative building complex for the State Police, a ban could be set against the company on participation in tenders, Prime Minister Einars Repse told the Cabinet meeting today.
The premier believes that the state cannot afford to pay for construction of the complex on Gauja Street that expensively just because the contract with constructors was signed "under unclear circumstances and conditions".
However, if "Skonto buve Ltd." agrees to cut costs, the company can continue implementation of the projects, said Repse.
Deputy Saeima Chairman Ainars Slesers agreed with the premier, adding that in reaching an agreement to diminish the costs for the construction of complex, quality should not deteriorate.
In commenting on the current situation with construction of the administrative building, acting director at the Real Estate Agency Sandra Bukane warned that a unilateral breach of the contract with "Skonto buve Ltd." could lead to lengthy legal proceedings and the project could eventually be frozen for an undetermined period of time.
According to the contract, in case of the breach the construction company receives LVL 700,000 in compensation, besides the company has already received LVL 300,000 in advance. Therefore total costs for the state could amount to one million lats by breaking the contract.
Minister of Interior Maris Gulbis also warned that by breaking the contract, losses for the government could be larger than in carrying out the current contract.
The state secretary at the Ministry of Interior Juris Reksna emphasized that freezing of the construction of the administrative building complex would be inadmissible since the State Police needs the new edifice.
In evaluating all aspects of the problem, the government decided to examine the design plans for the building by May 15 and make a decision on future action until June 15.
As reported, several Interior Ministry's organizations were to be moved to the complex of buildings on Gaujas Street, worth LVL 24.6 million. The Real Estate Agency's tender for construction of the complex was won by "Skonto buve Ltd."
The government suspended Real Estate Agency Director General Kalvis Bricis from his duties at the end of 2002 pending an internal investigation of said project, in which the government had ascertained misappropriation of state financing.
The Cabinet of Ministers suspended implementation of the project on December 27, 2002.
Kristaps Ceplis LETA
Copyright © LETA
The premier believes that the state cannot afford to pay for construction of the complex on Gauja Street that expensively just because the contract with constructors was signed "under unclear circumstances and conditions".
However, if "Skonto buve Ltd." agrees to cut costs, the company can continue implementation of the projects, said Repse.
Deputy Saeima Chairman Ainars Slesers agreed with the premier, adding that in reaching an agreement to diminish the costs for the construction of complex, quality should not deteriorate.
In commenting on the current situation with construction of the administrative building, acting director at the Real Estate Agency Sandra Bukane warned that a unilateral breach of the contract with "Skonto buve Ltd." could lead to lengthy legal proceedings and the project could eventually be frozen for an undetermined period of time.
According to the contract, in case of the breach the construction company receives LVL 700,000 in compensation, besides the company has already received LVL 300,000 in advance. Therefore total costs for the state could amount to one million lats by breaking the contract.
Minister of Interior Maris Gulbis also warned that by breaking the contract, losses for the government could be larger than in carrying out the current contract.
The state secretary at the Ministry of Interior Juris Reksna emphasized that freezing of the construction of the administrative building complex would be inadmissible since the State Police needs the new edifice.
In evaluating all aspects of the problem, the government decided to examine the design plans for the building by May 15 and make a decision on future action until June 15.
As reported, several Interior Ministry's organizations were to be moved to the complex of buildings on Gaujas Street, worth LVL 24.6 million. The Real Estate Agency's tender for construction of the complex was won by "Skonto buve Ltd."
The government suspended Real Estate Agency Director General Kalvis Bricis from his duties at the end of 2002 pending an internal investigation of said project, in which the government had ascertained misappropriation of state financing.
The Cabinet of Ministers suspended implementation of the project on December 27, 2002.
Kristaps Ceplis LETA
Copyright © LETA
