TALLINN - With electricity and construction prices remaining high and the geopolitical situation uncertain, CEO of Aqva Hotels Roman Kusma is unable to say when the construction of a spa hotel in Viljandi might continue.
"Energy prices soaring and the war in Ukraine, which as already lasted for a month, have a great impact that also affects construction prices. During complicated and unstable times like these it is difficult to make long-term investment plans," Kusma told BNS.
"We are waiting for what the near future brings, because today no one can predict what will happen tomorrow," he added.
The development of the Viljandi spa hotel was suspended at the start of last year when the construction tenders submitted proved much more expensive than expected.
The regional Sakala wrote in November 2021 that out of two tenders submitted, one was more expensive than estimated by five million euros and the other by nine million euros. The previously estimated price was around 30 million euros or less.
Due to the high price, the developers have requested for the deadline of the trilateral agreement to be postponed. While pursuant to the initial agreement, the spa hotel was to be completed by September 2022, a new deadline was later set for September 2024.