The European Investment Bank (EIB) has announced it is considering financing a road PPP project in Latvia.

The project consists of the design, build, finance and operation (DBFO) of approximately 17.5 km of the A7. The A7 motorway section from Riga to the Lithuanian border is one of the major national motorways and part of the Trans­European Transport Network (TEN­-T), as well as part of the Via Baltica. It will also include the construction of a new, approximately 14 km-long bypass to Kekava - a town currently crossed by the existing A7 road. The new road will be a dual carriageway (2x2 lanes) for approximately 13 km. The rest of the section will be 2 lanes. The project includes 4 major interchanges as well as sections with lanes for local traffic. 

The estimated project cost amounts to €160 million (US$178 million) and procurement will start in the second part of 2017.

The project will improve traffic conditions on a TEN-T road corridor and facilitate connectivity both locally and strategically. The project is located in a convergence region. The consistency of the project with the policy for lending to the transport sector depends on its economic profitability and will be confirmed during appraisal. Socioeconomic benefits are mainly expected from improved and more reliable journey times and improved traffic safety conditions resulting from the diversion of heavy transit traffic from densely populated areas.

The project will complement the investments made so far on the Via Baltica road sections and improve driving conditions between Riga and the Lithuanian border. The project will be procured under a public private partnership (PPP) contract based on an availability payment mechanism and includes a 20-year concession for operation and maintenance.

In 2015, the EIB provided €18.9 billion (US$21 billion) to support infrastructure projects in Europe.