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Minister requests review of Riga City Council’s 20-year waste management tender

Ralfs Nemiro/flickr.com/Valsts kanceleja
Latvia’s Economy Minister Ralfs Nemiro invites Competition Council to assess if business transactions associated with Riga municipality’s public-private partnership tenders in accordance with the Competition Law.


The council has been asked to take measures in relation to business transactions.
 

«There are suspicions that free competition in waste management sector could suffer as a result of the 20-year business arrangement, because Riga municipality continues actively founding its own capital associations that offer such services. This only serves to narrow the environment for private entrepreneurs and create risks for prices going up and service quality going down for Riga’s residents,» says the minister.
 

At the end of July 2018, waste management company Getliņi EKO announced a tender to find a private partner in waste management sector for public-private partnership. On 10 May, 2019, Getliņi EKO signed a public-private partnership procedure worth EUR 686.3 million for waste management in Riga. CREB Riga was picked as the winner of the public-private partnership procedure.
 

CREB Riga combines two household waste management service providers Clean R and Eco Baltia.
 

Getliņi EKO has reported that as part of the project it is planned to establish sorted waste collection infrastructure, which includes collection of waste, transportation and preparation for recycling.
 

CC admits that warnings were previously issued to Riga City Council in regards to competition risks if the city council decides to go with the 20-year public and private waste management.
 

«From a free competition viewpoint, Latvia’s waste management sector has suffered a lot in recent years – the municipality’s tendency to entrust waste management to capital association it owns is on a rise, which only serves to reduce the freedom of private entrepreneurs to provide their services,» CC explained in April.

BNN

 

13-05-2019
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