The second stage of tender for the PPP project “Kekava Bypass” in Latvia was announced last month. The contracting authority Latvian State Roads (LVC) in cooperation with the audit company “Deloitte”, has completed work on the procurement documentation for the public-private partnership project “Kekava Bypass”. LVC started the procedure of selection of applicants in October 2019.

According to the timeline by LVC, the invitation to submit the best and final offer (BAFO) will be launched on December 2019 and the submission will happen in January 2020. The winner is expected to be selected in spring 2020 and the financial close and signing of the PPP contract will happen 3-6 months after the selection of the winner in May-August 2020. Designing and building are planned for 2020-2023.

The project consists of the design, build, finance and operation (DBFO) of approximately 17.5 km of the A7 motorway in Latvia. The A7 section from Riga to the Lithuanian border is one of the major national motorways and part of the Trans­European Transport Network (TEN­-T), as well as part of the Via Baltica.

The PPP model chosen for the construction of the Ķekava Bypass has the following conditions:

• type of contract – DBFM (design, build, finance and maintain),
• the contract duration: 23 years (3 years for technical designing and construction, 20 years for maintenance),
• type of payments to the private partner: availability payments.