Ecology, Energy, Latvia, Legislation

Representatives from Skonto buve and the Environmental Service conducted inventory shortly after midnight to list the involved parties' properties on site, and the amount of acid waste to be disposed of. This document, however, is not and cannot be the basis for halting the project and terminating the contract with Skonto buve, said Sokolova.

"That means that our contractual obligations still stand. Skonto buve is continuing to honor its obligations, although we are still waiting for the contracting party's decisions regarding harmonization of the technical project necessary to continue the job," stressed Sokolova.

According to Sokolova, the Environmental Service's decision to terminate the contract with Skonto buve is unlawful, unjustified, and only due to the service's wish to ignore its obligation to pay the company for the work it has already done. Furthermore, in doing so, the Environmental Service is hampering further implementation of the project, she said. That is why Skonto buve has turned to courts, claiming that the Environmental Service settle its debt to the company, plus late interest payment – more than EUR 1.8 million in total.

The Environmental Service decided to terminate the contract with Skonto buve two weeks ago, and notified the company thereof. After Skonto buve removes its machinery and other properties from the site – and it has already been agreed that Skonto buve’s subcontractor, German company MUEG will retrieve its acid waste processing equipment from July 28 to August 7 – the amount of the Environmental Service and Skonto buve’s losses will be calculated, and the sides will agree on the final amount that the Environmental Service has to pay the company, which could take about a month, said the Environmental Service's representative Baiba Rosicka.

Later on today, Sokolova told LETA that the Environmental Service needed two weeks to probe actions of the engineering company Geo Consultants, its representative in the acid waste pond liquidation project. That means that constructive talks about completion of the project have become impossible as the Environmental Service is not sure whether "Geo Consultants" represents the service's interest to the best of its ability, said Sokolova.

Skonto buve had requested the Environmental Service to confirm in writing that the actions of the engineering company were in the Environmental Service's interest after several letters, publicly expressed opinions and actual actions of the two, appeared to be mutually exclusive, contradictory, and unlawful.

Therefore, it became clear today that all further talks will be suspended indefinitely until the Environmental Service provides clear instructions as to what it believes Skonto buve has to do, added Sokolova.