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SRE: 12 construction contractors have applied for the repeated procurement of the development of the 1st stage of the Tobacco Factory Quarter


“Tenders for the development of the 1st stage of the Tobacco Factory Quarter in Riga, Miera iela 58a, have been submitted by 12 contractors: Contract prices offered – from 3.7 million euros to 5.4 million euros (excluding VAT). It will only be possible to talk about the winner of the procurement and the contract amount after evaluating the tenders”, informs Renārs Griškevičs, Chairman of the Board of SJSC “State Real Estate” (SRE). 

Tenders for the development of the 1st stage of the Tobacco Factory Quarter have been submitted by the following contractors: general partnership “AKN”, SIA “Build-Invest Latvia”, SIA “Eltex”, SIA “Labā māja Latvija”, SIA “Marels Būve”, SIA “Newcom Construction”, general partnership “P un S BŪVNIECĪBA”, association of persons “Multicentrs BL”, AB “Panevėžio statybos trestas”, SIA “Pillar Contractor”, general partnership “BI_ZENG” and SIA “REVOHAUS”. 5 construction contractors who had not previously applied for the development of the first stage of the Tobacco Factory Quarter and 7 construction contractors who had also applied for the first procurement have applied for the repeated procurement. If there are no appeals, the results of the procurement will be known at the beginning of the new year.

“The high interest of construction contractors in this and other SRE procurements indicates the readiness and desire of construction contractors to renovate public areas and buildings. Repeated procurement is an opportunity for contractors to submit bids in the light of changes in the market situation. The wish of the capital company is to start construction as soon as possible. We are currently starting the evaluation process to determine the most economically advantageous offer for the required qualification,” says Griškevičs.

17 contractors applied in the previous Tobacco Factory Quarter 1st stage development procurement, two of which - AS “UPB” and SIA “Pillar Contractor” - waived the right to enter into an agreement due to an unexpectedly sharp rise in construction material prices, significant energy costs and inflation. Pursuant to the regulatory enactments regulating public procurement, which stipulate that in cases when two tenderers who have been awarded the right to enter into an agreement have refused to do so, the Procurement Commission decided to terminate the procurement procedure without selecting any tender and announce a repeated procurement. 

According to the vision of the architectural office NRJA, developed and approved at the end of 2018 in the design competition, the construction plan envisages the development of the territory of the Tobacco Factory Quarter on Miera iela in several stages. The development of the quarter will start with the entrance junction - the Creative Industries Incubator and the National Film School of the Latvian Academy of Culture, as well as the construction of a separate filming pavilion, renovating and improving the public space in an area of 1,019 m2 and public buildings in an area of 1,667 m2. In the first stage of the quarter's development, the buildings where the New Riga Theatre is currently located will not be affected.

In the future, the quarter will provide students and academic staff of the Latvian Academy of Culture with a modern learning environment and cooperation with companies in the creative industries, as well as it will become a magnet not only for creative minds, but also for residents and tourists in the Brasa area. The design works carried out last year in cooperation with the Ministry of Culture and the Latvian Academy of Culture for the development of the Tobacco Factory Quarter will fully ensure a high degree of readiness for the next project stages, which can be considered as an advantage for receiving financing within the framework of the new EU structural funds planning period.

SRE currently continues works on 43 different construction sites of national importance with a total project budget of 156 million euros. Capital company provides professional real estate management and administration for approximately 400 real estate properties with 1100 buildings of 1.02 million square metres and more than 3600 land properties with an area of 9.6 million square metres. SRE is one of 23 Latvian companies that have received the highest platinum award as part of the Sustainability Index of the Institute of Corporate Responsibility and Sustainability, confirming the good governance and sustainability of its operations. The company was founded in 1996, 100% owned by the Ministry of Finance of the Republic of Latvia.