Agreement signed on the implementation of the Ķekava bypass project - Zeme un valsts
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Agreement signed on the implementation of the Ķekava bypass project

On 16 July, an agreement was signed in Riga for the construction of the Ķekava bypass, which is the first large-scale public-private partnership (PPP) road construction project in the Baltic states to be implemented using the Design, Build, Finance and Maintain Model (DBFM). This is also the first project in the Baltic states for which the European Statistical Office (Eurostat) has provided an opinion that the project's assets are recorded on the private partner's balance sheet, without creating an undesirable impact on the general government budget balance and debt.

According to the results of the Ķekava bypass PPP procurement, the total gross availability payment was EUR 265,729,046.65 (excluding VAT). However, at the time of signing the PPP agreement, this was adjusted through a recalculation in accordance with the procedure set out in the procurement regulations, including in line with the interbank lending rate (Euribor) and the interest rate swap rate (English – interest rate swap) effective at the time of signing the PPP agreement. As a result, the total gross availability payment decreased by 15 million euros and will be 250,132,500 (excluding VAT). This amount will be divided into quarterly payments and paid to the private partner over 20 years once the Ķekava bypass becomes accessible to traffic, meaning the gross availability payment amount on an annual basis will be EUR 12,528,513 (12.53 million) (excluding VAT).

Agreement signed on the implementation of the Ķekava bypass project

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