Latvian state real estate company Valsts nekustamie īpašumi (VNI) has released a statement from board member Jeļena Gavrilova, in which officials doubt completion of New Riga Theatre (JRT) reconstruction project within the deadlines reported by the hired construction company. According to her and VNI in general, the promise is baseless.
SBSC (composed of Skonto Būve and Skonto Construction) submitted an offer for the deadline of JRT reconstruction project. The proposed date is the 29th of October 2023. On Thursday, the 2nd of February, during the meeting of the supervisory council VNI and SBSC «continued searching for a solution acceptable for all sides in order to complete the theatre’s reconstruction as quickly as possible.»
Gavrilova’s statement mentioned: «We have yet to receive an appropriate justification as to how the construction company plans to complete the project within the proposed deadline.
Instead we have receive links to news portals on which politicians comment on inflation and existing difficulties in the country.
The submitted proposal does not contain any excessive requirements, and SBSC knows this. JRT reconstruction project is financed from the state budget and EU funds. It is not a privately funding project. This means we have to be 100% confident there won’t be any problem-solving at the state’s expense.»
She stresses: «We can see JRT actors suffer from this mess, and, like them, the team over at VNI is doing all it can to make sure the theatre is able to return to its home. There have been many times when he met the construction company halfway to help find a non-standard solution for immediate and complicated situations. However, requests have to be justified. This includes growing costs and the need for advance payments».
So far SBSC has not submitted justifications for the influence from the state of emergency. The company has not provided documented prof of conditions that have changed since summer 2022 due to the Russian-Ukrainian war, Covid-19 pandemic and other factors.
«There isn’t a lot of time left –
a solution needs to come in the coming month’s time.
We believe under certain conditions it will be possible to complete the project by autumn this year. However, this largely depends on the construction company’s will to meet existing conditions. Until now conditions have been met only partially. But every time we see a slightly different picture. In this situation our options to find a solution are exhausted,» explains Gavrilova.
VNI’s statement reminds that SBSC has made several attempts to present various requirements to the client. These requests were provided. Additionally, the construction company was provided with compensation to dampen inflation – a total of EUR 2.18 million. Following a request from SBSC, an additional advance of EUR 1 million was provided as well. Cost estimates submitted by the construction company are paid several times a month – one or two days after receiving relevant documents, not once every 30 days, as it was planned initially. VNI has done all it can to make the situation easier for the construction company and have the project completed on time, said the company’s board member.
The statement does not mention, however,
that VNI has terminated its contract with SBSC over reconstruction Valmiera Drama Theatre.
The statement also discretely does not mention that the construction company in question had previously, according to VNI, requested pay for work that was already paid for.
Also read: SBSC requests additional pay for work performed on New Riga Theatre