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Kekava ABT association, including A.C.B. and Binders, wins tender to construct Kekava Bypass

BC, Riga, 13.08.2020.Print version
Latvijas Valsts Celi (LVC, Latvian State Roads) state road manager has awarded the private-public partnership (PPP) contract to design, build and maintain the Kekava Bypass to Kekava ABT, an association of person including Luxembourg-registered Transport Infrastructure Company 2 S.C.A. SICAR (TIIC 2.S.C.A., SICAR), as well as Latvian construction firms A.C.B. and Binders, LVC spokeswoman Anna Kononova informed LETA.

Kekava ABT won the competition as its offer was found to be economically more feasible and inexpensive than the bid submitted by the other applicant. Kekava ABT is controlled by the Luxembourg-registered investment fund TIIC 2.S.C.A., SICAR (80%), specializing in major transport and public infrastructure projects in Europe and elsewhere in the world. A.C.B. and Binders have each contributed 10% to the fund. 

The PPP contract will be concluded after financial institutions have confirmed that they will finance the project in collaboration with this particular partner. 

The maximum amount available to the private partner in this project will be up to EUR 13.5 mln a year and can reach up to EUR 270 (excluding VAT) in 20 years, according to LETA's estimates. 

The other applicant participating in the tender is Cointer Concesiones - a company of Spain's Azvi Group experienced in providing infrastructure and public services in Europe and elsewhere in the world. This company's offer was 11% more expensive. 

As reported, the government on August 12 approved construction of the Kekava Bypass, which is to become the first major private-public partnership (PPP) project in the Baltics.

The public partner or client is the Ministry of Transport, which has authorized Latvijas Valsts Celi (LVC, Latvian State Roads) to implement the project on the ministry's behalf.

The Kekava Bypass after its construction will be the new section of the road A7 Riga–Bauska–the border of Lithuania (Grenctale),  and it will be a part of the international road E67 Via Baltica (Helsinki–Tallinn–Riga–Panevezys–Kaunas–Warsaw–Prague).

The total length of the Kekava Bypass has been planned at 17.5 km including construction of the new high -speed section (14.4 km in total) and reconstruction of the existing road (3.1 km). 11.1 km of them planned as four-lane carriageway and 6.4 km planned carriageway with two lanes. The project includes also four multiple junctions, four tunnels, one bridge, seven roundabouts as well as parallel roads in total length of 14.4 km.

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