Rīga breaks contract with road cartel company

Riga City Council has terminated the agreement with the company “Ceļu pārvalde” that is involved in the so-called road construction cartel and sanctioned by the Competition Council, Latvian Television reported August 10.

More and more people are complaining about road repairs that have been stalled in Rīga due to the cartel scandal. For example, in Lucavsala, where machinery should be used to build the new Laivu Street, people are walking all over and weeds are growing because since June, jobs carried out by Ceļu pārvalde have stopped. Still in June, the council was promising that the works would not be delayed, but now, breaking the contract with the company and announcing a new tender, the project will not be completed until the end of the year. This would also mean losing the loan for the implementation of it.

Ceļu pārvalde is one of the few builders who have an asphalt factory in Rīga City. The Road Administration also received a penalty of €1 million from the Competition Council for participating in a road construction cartel shortly after the legal protection process was initiated. The problem, however, right now is only in Lucavsala. Other members of the road-building association continue the work of the Brasa Bridge.



The head of the Transport Department told Latvian Television that road jobs in Riga are more or less timely and that delays, where they are, have an objective basis.

A contract with another builder, ReRe Vide, which also has a legal protection process, could soon be terminated.

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