Ecology, Energy, Financial Services, Latvia, Legislation

The State Environmental Service took the decision taking into account the company's statements and violations of the agreement. After carefully reviewing the alternatives, termination of the agreement, in the State Environmental Service's opinion, is the only solution in order to finish work at Incukalns without losing European Union funding.

State Environmental Service Director General Inga Kolegova said that "during long and time-consuming discussions and exchange of letters with Skonto buve, the State Environmental Service was convinced that the company is neither able to meet the contractual obligations, nor carry out operations at Northern Pond."

Kolegova indicated that Northern Pond is the main source of pollution of underground waters in Incukalns. Without carrying out the mop-up, the state risks losing funding from the European Regional Development Fund. Termination of the agreement does not mean the end of the project. Quite the contrary – the State Environmental Service will keep working to finalize this project until all the tasks at hand are achieved, says Kolegova.

As reported, due to the fact that State Environmental Service has violated its contractual obligations by refusing to pay for the operations conducted at tar lakes in Incukalns, Skonto buve has decided to take legal action against the institution, the company's spokeswoman Ilga Sokolova informed LETA.

According to Sokolova, Skonto buve has filed a lawsuit at Riga City Northern District Court, requesting the Environmental Service to pay the disputed amount plus interest – EUR 1.85 million in total.