To finance the reconstruction of Krasta Street and Brasas Bridge, Riga City Council plans to take a EUR 14.23-million loan from Latvia’s State Treasury, according to documents added to the working agenda of Riga City Councils Finance and Administrative Affairs Committee.
To finance the restoration of Krasta Street surface, it is planned to take a EUR 6.08-million loan, whereas the reconstruction of Brasa Bridge will require a loan of EUR 8.15 million.
The total costs of Brasa Bridge reconstruction is EUR 10.87 million together with VAT, whereas the cost of Krasta Street restoration is EUR 8.10 million with VAT.
This means the remaining money will be provided by the municipality. As LETA found out from Riga City Council’s Transport Department, there is enough money to afford both projects. However, in order to afford other projects as well, it is planned to use loans.
The total budget of the department for 2019 is planned at EUR 24.75 million. EUR 17.57 million is planned to be diverted to the reconstruction of road infrastructure objects and restoration of road surface.
It is planned to borrow funds from the State Treasury or other lender with a similar loan offer. The loan repayment term is up to ten years.
Riga City Council Transport Department has signed a contract with construction company SIA Binders for the restoration of Krasta Streer and with construction company AS Kauno tiltai for the reconstruction of Brasa Bridge. (BNN/Business World Magazine)
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