E67 A7 KEKAVA BY-PASS PPP TEN-T

The project consists of the design, build, finance and operation (DBFO) of approximately 17.5 km of the A7 main road south of Riga including construction of a new, approximately 14 km-long bypass to Kekava – a town currently crossed by the existing A7 road. The new road will be a dual carriageway (2x2 lanes) for approximately 13 km. The rest of the section will be 2 lanes. The project includes 4 major interchanges as well as sections with lanes for local traffic. The project will complement the investments made so far on the Via Baltica road sections and improve driving conditions between Riga and the Lithuanian border. The project will be procured under a public private partnership (PPP) contract based on an availability payment mechanism and includes a 20-year concession for operation and maintenance.

The project will improve traffic conditions on a TEN-T road corridor (Core TEN-T) and facilitate connectivity both locally and strategically. The project is located in a convergence region. The consistency of the project with the policy for lending to the transport sector depends on its economic profitability and will be confirmed during appraisal. Socioeconomic benefits are mainly expected from improved and more reliable journey times and improved traffic safety conditions resulting from the diversion of heavy transit traffic from densely populated areas.

The project falls under Annex I of the Environmental Impact Assessment (EIA) Directive (2011/92/EU). An initial EIA was prepared in 2008, but certain technical solutions have changed since then, therefore a complimentary EIA is currently under preparation. Land expropriation is underway. Environmental and social aspects of the project implementation will be reviewed at appraisal. The project doesn't pass through Natura 2000 sites, but is located in the vicinity of a Habitats Directive site "Dolessala" (LV0301900). Compliance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC) will be reviewed at appraisal.

The project is being procured as a PPP under the terms of a DBFO contract. Procurement will start in the second part of 2017. The Bank will require the promoter to ensure that contracts for the implementation of the project are tendered in accordance with the relevant applicable EU procurement legislation (Directives 2014/23/EU and/or 2014/24/EU as well as Directives 89/665/EEC and 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.