Two companies have submitted offers for the construction of Liepaja Prison – UPB JSC and Citrus Solutions LLC, as confirmed by Latvian Ministry of Justice.
The winner of the construction procurement will be decided by the procurement committee by 6 October.
UPB’s offer is building the prison for EUR 139 525 387.90 + VAT, whereas the offer of Citrus Solutions is EUR 128 845.87 + VAT.
According to Ministry of Justice, the procurement committee has done a lot between receiving initial offers and the start of the war in Ukraine to reduce construction costs of the new prison in Liepaja:
Following the request from the procurement committee, contenders submitted updated offers by 30 May;
Together with the Prison Administration the committee updated documents to reduce costs without affecting quality;
The scale of construction has been reduced by more than 6 000 m2;
Indexation of construction costs was performed to further reduce expenses.
Construction of a new Liepaja Prison complex is planned to be completed within 34 months after the signing of a procurement contract with the winner.
The 2019 decision of the Cabinet of Minister regarding the construction of Liepaja Prison complex mentions the cost of this project is around EUR 146 898 298.
According to Firmas.lv, Citrus Solutions was founded in 2005 with a base capital of EUR 5 070 999. In 2020 the company’s turnover was EUR 23.7 million. The company concluded the year with profits of about EUR 1 million. Citrus Solutions is a member of Tet LLC group.
UPD was founded in 1991 with a base capital of EUR 15 720 304. Uldis Pīlēns, Māris Mors and Madara More are beneficial owners of UPD. The company’s turnover in 2020 was EUR 237 million. Profits reached EUR 13.3 million.