Construction, Latvia, Real Estate

International Internet Magazine. Baltic States news & analytics Monday, 16.09.2019, 04:18

ReRe Buve 1 wants to reach settlement with VNI and resume reconstruction of New Riga Theater

BC, Riga, 23.08.2019.Print version
General partnership ReRe Buve 1, the company hired to reconstruct the New Riga Theater building, is offering a settlement to the state real estate management company Valsts Nekustamie Ipasumi (VNI) and a solution so reconstruction of the theater could resume and be completed by March 31, 2022, LETA learned during a meeting between the representatives from the company and VNI.

During the meeting, ReRe Group CEO Guntis Abolins-Aboltins submitted the company's offer to VNI, in which the company undertakes to bear part of the additional costs incurred during the reconstruction project. Likewise, ReRe Buve 1 commits to developing the missing parts of the reconstruction project and harmonize them with Zaigas Gailes Birojs architectural firm. ReRe Buve 1 also offers to repair, at its own expense, damage done to the neighboring buildings when piles were being driven for reconstruction of the New Riga Theater.

"We are ready to cover a large part of the additional costs ourselves, but there are items that should be borne by the customer - VNI," said Aboltins-Abolins, adding that his company was also ready to continue cooperating with Zaigas Gailes Birojs, and to resume the reconstruction project on September 3 so it could be completed by March 31, 2022.

ReRe Buve 1 CEO Valdis Koks said he believed that VNI would have enough time to acquaint itself with ReRe's offer by September 3, so reconstruction project could resume on that day.

On the other hand, VNI board chairman Andris Varna pointed out that the original contract amount had increased substantially, and that EUR 1.6 million of that increase would have to be covered by state funds.

"We are currently not certain about the compliance of this offer with the Public Procurement Law because of a significant change in terms and amount of the contract," said Varna. There are many unanswered questions, therefore September 3 as a deadline for resuming the reconstruction project does not seem realistic, he added. "We need to examine the documents submitted and wait for the opinions of several other authorities," said Varna.

As reported, Riga Vidzeme District Court earlier in August ruled in favor of ReRe Buve 1 and banned VNI from signing any new contracts for other construction companies and third parties for completion of the reconstruction of New Riga Theater building on Lacplesa Street in Riga.

The court ruling came into force on August 14 and cannot be appealed.

VNI, in turn, on August 5 turned to Riga District Court, claiming that ReRe Buve 1 pay VNI a contractual penalty.

LETA also reported, this past July VNI said it had decided to terminate contract with ReRe Buve 1 for reconstruction of the New Riga Theater's building following a number of violations ascertained in the construction company's operations.

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