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 Public Private Partnership Projects (PPP) |
Since amount of the state budget and European Union financing is still not enough to improve state road network, protractedly maintained under conditions of insufficient financing, in the shortest possible time, it is necessary to attract additional funds. One of the possible solutions for improvement of state infrastructure objects is to attract private financial resources by signing a contract between government and private company or investor (hereafter PPP).
Hungary, Portugal, Spain, and United Kingdom have big experience in implementation of PPP road projects. Several PPP projects are carried out in Finland and some other countries.
PPP programme in Latvia
Considering into account limited financing in road sector and reposing on pace of state economic growth and expected increase of road users paying capacity, the Ministry of Transport of the Republic of Latvia has accepted application of PPP projects in implementation of several projects.
In compliance with the strategy of the Ministry of Transport of the Republic of Latvia for the time period until 2013 it is decided to begin work on implementation of three projects, by applying DBFM (design-build-finance-maintain) principles, signing long-term service contracts un attracting financing of private investor:
- road E77 section Riga bypass - Senite (pilot project);
- road E67 section A4 Riga bypass (Baltezers - Saulkalne);
- road E67 Kekava bypass.
After 2013 it is planned to implement the following projects:
- road E22 section Priedaine - Sloka;
- road E77 section Riga - Jelgava;
- road E22 section Riga bypass - Koknese.
Decision on implementation and financing model of 4th stage of Riga Northern crossing is not made yet.
| No. |
Project |
PPP evaluation and government decision |
Preparation of tender documents, tender, contract |
Investment period |
| 1 |
Riga bypass - Senite |
2007 |
2007 - 2009 |
2009 - 2012 |
| 2 |
Riga bypass |
2008 |
2008 - 2011 |
2011 - 2014 |
| 3 |
Kekava bypass |
2008 |
2008 - 2011 |
2011 - 2014 |
| 4 |
Priedaine - Sloka |
2010 |
2011 - 2013 |
2014 - 2017 |
| 5 |
Riga - Jelgava |
2009 |
2010 - 2013 |
2013 - 2016 |
| 6 |
Tinuzi Koknese (2nd stage) |
2010 |
2011 - 2013 |
2014 - 2017 |
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Project E77 Rīga bypass-Senite is a pilot project, its tender and contract documentation could form basis for the next projects.
The most characteristic feature of PPP projects corresponding to DMFM principles is project/contract long-lasting. Totality includes project research, preparation of documentation and tender.
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Road E77/A2 Section Riga Bypass - Senite
Km 14.1 to km 38.7 of road E 77/A2 Riga Sigulda Estonian border (Veclaicene), section Riga bypass - Senite, is a part of the Transeuropean Transport Network (TEN). The Project goal is to implement an express road construction and maintenance project on road E 77/A2 Riga Sigulda Estonian border (Veclaicene), section Riga bypass - Senite, by using the public-private partnership (PPP) model Design Build Finance Operate (DBFO). The intent within the scope of the contract is to reconstruct both existing carriageways, close all at-grade u-turns and some at-grade slip roads, retain individual right-turn slip roads (left turns can be made at two-level interchanges), reconstruct 12 existing overpasses and 3 pedestrian tunnels, construct one additional overpass, one car and bicycle/pedestrian tunnel and 4 bicycle / pedestrian overpasses. In addition, a fence and a 4.4 km long noise barrier will be built along the entire length of road. Street lighting will be placed at all motoring and bicycle / pedestrian overpasses, tunnels, and along pedestrian paths where sections of the road are in the immediate vicinity of residential areas, as well as along the main road from km 14.1 to 24.8. The intended result of the project is the reconstruction of major national road E 77/A2 section Riga bypass Senite into a safe, high-quality, dual carriageway express road, with an estimated traffic flow speed of 110 km/h.
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Public Private Partnership Projects (PPP)
