OREANDA-NEWS. AS "LATVIJAS TILTI" informs that:

[1] On 10 September 2015, AS “LATVIJAS TILTI” submitted an offer for the procurement organized by the Klaipeda State Seaport Authority “Construction works of the object “Reconstruction of the berths No 67 and 68 (construction stages II and III) in Klaipeda” (hereinafter – Procurement) with a validity term of 90 calendar days from the day of the offer submission. The offer of AS "LATVIJAS TILTI" was acknowledged as the winning in the Procurement.

[2] The Procurement results were contested in the District Court of Klaipeda City by one of the Procurement applicants submitting a claim on abnormally low price of the offer submitted by AS “LATVIJAS TILTI”. The District Court of Klaipeda City initiated proceedings by applying a temporary injunctive relief - a prohibition to conclude the Procurement Agreement with a winning applicant.

On 4 February 2016, the Court of Appeals of Lithuania by evaluating a justification for the aforementioned prohibition reversed the applied injunctive relief, allowing the Klaipeda State Seaport Authority to enter into the Procurement Agreement with AS "LATVIJAS TILTI". But whilst the offer by AS "LATVIJAS TILTI" was in force, the client adopted a decision not to enter into the Procurement Agreement and wait for the final judgement by the court in this matter.

The judgement of the Court of Appeals of Lithuania came into force on 12 May 2016 whereby the claim for abnormally low price of the offer submitted by AS "LATVIJAS TILTI" was fully dismissed.

[3] AS “LATVIJAS TILTI” during the adjudication procedure actively supported a position of the Klaipeda State Seaport Authority and on multiple occasions extended its offer for the Procurement up to 30 April 2016.

But, taking into consideration the lengthy adjudication procedure (more than 8 calendar months) during whereof the prices offered by the subcontractors of AS "LATVIJAS TILTI" significantly increased, AS "LATVIJAS TILTI" was not able to fully extend its offer.

AS "LATVIJAS TILTI" on several occasions initiated negotiations with the Klaipeda State Seaport Authority for the purpose of resolving the current situation but the Klaipeda State Seaport Authority refused to start negotiations, excluding AS "LATVIJAS TILTI" from a list of the Procurement applicants.

Additionally, AS "LATVIJAS TILTI" would like to emphasize that taking into account a change of the price offer conditions offered by the subcontractors, repeal of the Procurement obligations will not have negative economic impact on future operation of AS "LATVIJAS TILTI".