Decision on Project implementation in 2009
According to the Article 15 Paragraph two of the Letter of Intent sent to the International Monetary Fund on 27.07.2009 Latvia has undertaken not to launch any new public and private partnership projects in 2009, except for four kindergarten building projects representing a total cost of LVL 10 million for their duration (permission for launching these projects was issued with the Cabinet’s Order No. 614 “On permissions granted to Tukums City Council, Ogre Municipality Council, Mārupe Parish Council and Ķekava Parish Council to sign a joint contract on building and management of four pre-school educational establishments in the territories of the local governments”, issued on 13.10.2008).
Therefore, to ensure compliance with the Letter of Intent, on 08.09.2009 the Cabinet made a decision not to launch any new public and private partnership projects, because potential public and private partnership project envisages payments for implementation of the public and private partnership project from central and local governments’ budget resources as well as budget resources of other public partner.
However to avoid delays in implementation of public and private partnership instrument, the above mentioned decision does not restrict preparatory work done by the public partner for launching the public and private partnership procedure, for example, calculation of planned contractual price and other financial and economic calculations, to launch public and private partnership procedures as soon as it will be possible. Also this decision does not restrict signing of concession contracts envisaging that the private partner instead of remuneration for the service provision or construction works gains the rights to use services and the rights to get charge from end-users of the building or service.
The decision of the Cabinet is available here.
