Estonia, Financial Services, Legislation, Port, Transport

"The sides have the right to submit an appeal and Vainamere Liinid OU used that right today," Palo's attorney Terje Eipre told BNS on Thursday.

Vainamere Liinid, company of Estonian businessman Vjatseslav Leedo, filed a lawsuit in September 2015 against former minister Urve Palo over the words said by Palo about the 2014 public procurement tender to award the contract to operate subsidized ferries between the mainland and Estonia's large western islands.

Palo, who was responsible for the tender in her then capacity as minister of economic affairs and infrastructure, has said the winning offer by Port of Tallinn subsidiaries was cheaper by 60 million euros over the contract period of ten years.

Previously Vainamere Liinid had sought in a formal letter that Palo make a statement refuting her claim as regards the outcome of the ferry tender. According to Vainamere Liinid, their offer in the tender was more favorable than the one made by the subsidiaries of Port of Tallinn.

The court on Jan. 12 did not satisfy the action and decided that Palo had not submitted false information.

The court found the claim that the offer of Vainamere Liinid was by 60 million euros more expensive was correct provided that the state does not use the buyout option. According to calculations by BNS the difference in the price would be 64.3 million euros without using the buyout option and not considering the present value of money. With the discount rate of 7.5% the present value would be 43.3 million euros.