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SRE: BCP “Grebņeva” modernisation works will be performed in stages; the first will be implemented by SIA “Delta Constructions”

07.06.2022

In the tender announced by SJSC State Real Estate (hereinafter SRE) for the implementation of the modernisation concept of the control pavilions of the border crossing point (BCP) “Grebņeva”, SIA “Delta Constructions” is the winner, project costs – 890 thousand euros (excluding VAT). The construction works are planned to start within the next month and be completed by the end of the year, informs Jelena Gavrilova, Board Member of SRE.

The first phase of the project “Modernisation of the Grebņeva border crossing point” envisages the construction of four control pavilions to ensure the acquisition/verification of biometric data and ensure the efficient flow of border crossers, as well as the adaptation of road border guard posts to the introduction of the requirements of the European Central Entry/Exit System. In the announced tender for the construction of four control pavilions, the tender submitted by SIA “Delta Constructions” for the total contract amount of 890 thousand euros (excluding VAT) was recognised as the most economically advantageous among the three bidders. SIA “Delta Constructions” will commence the construction works at the BCP in the next month.

In accordance with the impact of the rapid rise in the cost of construction materials and the provision of labour force caused by the pandemic and the geopolitical situation on the implementation of the project, it has been decided to divide the implementation of the BCP modernisation project into two parts. Four control pavilions will be modernised by the end of 2022, while the construction of the passenger bus control terminal is planned to be extended until 2027 in order to find the necessary funding to cover the cost increase, while ensuring the implementation of vital modernisation works.

“The modernisation of the BCP has a critical role to play in improving national security. Improving the control flows of BCP, while ensuring the high quality of the provided service, is equally important with the construction of the necessary infrastructure. Therefore, SRE is currently actively working on the modernisation of BCP and identifies possible solutions to implement projects in full in the shortest possible time, or to ensure the fulfilment of vital tasks so that employees of the State Border Guard and State Revenue Service can perform their duties in a modern work environment with adequate technical support,” indicates Gavrilova.

Maintenance of objects important for the security of Latvia and the European Union and the development of borders is one of the directions of SRE activity. In total, approximately 72.9 million euros are currently being invested in the modernisation of border crossing points and borders under the supervision of SRE. The largest modernisation project is the construction of the Eastern border. After the implementation of the projects, by the end of 2027, comfortable and modern working conditions will be available to the staff of border control points, and the infrastructure necessary for border control and customs control will be improved, making border crossing more efficient and faster. 

The Russian invasion of Ukraine and the pandemic period have affected the construction industry and will affect both the implementation deadlines of individual projects and the required funding, in general the capital company ensures the continuity of projects. The capital company currently manages 23 projects under construction, for which the most appropriate implementation scenarios are developed, anticipating – increasing the amount of available funding without extending the project implementation period, and increasing the amount of funding by extending the planned project implementation period. In the largest national projects, such as the reconstruction of the New Riga Theatre and Riga Castle, additional funding has already been found with the support of the government, and we continue to work on a detailed assessment of the situation of all projects. The capital company is working on the evaluation of each construction merchant, so that a decision on the future implementation scenarios of all projects can be made within the next months, while ensuring the continuity of work until the final decision is made.

SRE currently continues working on 46 different national construction sites, with a total project budget of more than 230 million euros. The company provides professional real estate management and administration for approximately 365 real estate properties consisting of 1100 buildings with a total floor area of 0.95 million square metres, along with land beneath the buildings covering 602 hectares and more than 3536 land properties with an area of 903 hectares. SRE is one of 23 Latvian companies that has 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 and is 100% owned by the Ministry of Finance of the Republic of Latvia.