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Another tender likely for flagship prison project

Taking into consideration that construction companies which bid for the right to build a new prison in Liepaja are all asking more than the government can afford to pay, a new tender is to be announced, the Justice Ministry's State Secretary Raivis Kronbergs told LETA August 22.

Due to higher construction costs, builders are asking more than the government can afford to pay for construction of new Liepaja Prison, said Kronbergs. The Justice Ministry has offered the government several options to choose from to move on with the project.

According to Kronbergs, the Justice Ministry has concluded after consulting the Finance Ministry that the best option would be to halt the current procurement process and negotiate with the builders about the price and time frames of the project. "That is, the builders will be given more time - the prison would have to be built by 2023, which would alleviate pressure on the budget."

The Justice Ministry later informed LETA that the government had postponed its decision on construction of new Liepaja Prison, and the ministry would have to submit additional information to the government.

As reported, two construction companies - Re&Re and UPB - have bid for building the new Liepaja Prison. UPB has asked EUR 114,120,357 (plus value added tax) for building the new prison, and Re&Re - EUR 123,416,618.

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