Five bids received for US$100 million road PPP in Latvia

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Latvian State Roads (LVC) has announced that it has received five bids for the E67 A7 Kekava By-Pass PPP project from: China Machinery Engineering Corporation, AS Cocessoc 371, PA Cointer and Igate, PA Kekava ABT and the KTC Kekava consortium.

Within the next 42 days, the Procurement Commission for the project will carry out an assessment of the compliance of the applications with the requirements of the Procurement Qualification Regulations, and those tenderers whose tenders will be recognized as eligible will be invited to prepare and submit initial tenders for evaluation.

According to the procurement procedure, the tenderers are required to certify their experience and capacity to perform the contract on a qualifying basis, while in the initial bidding round, tenderers will be invited to submit their vision of the technical solutions for design, construction and maintenance in accordance with the requirements of the site as well as the estimated costs of the project throughout the contract performance. at a time.

The procurement will take place in three rounds, and the first is a qualifying round - applicants must submit documents confirming their willingness, ability and capacity to participate in the procurement. The second will be the initial bidding round, after which the three best bids will be selected and initial elements of the PPP project will be negotiated. In turn, the third is the final and best bid development round, after which the winner is decided.

The selected private partner will design, construct, finance and maintain over a 20-year period a new section of the A7 road that connects Riga, Bauska and the Lithuanian border (Grenctamle) from 7.9 - 25.0 km, which will be part of the international road E67 Via Baltica (Helsinki - Tallinn - Riga - Panevezys - Kaunas - Warsaw - Prague).

The capital investment required for the construction and design of the Kekava bypass will be between EUR80 million (US$91.6m) and EUR100 million (US$114.5m) (cost calculated using 2017 prices). Before finalizing the PPP contract, the final decision will have to be taken by the Cabinet. If the price is too high, the PPP contract may not be concluded.

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