EUR 1 million worth project on replacement of public transport stops in Riga suspended

RIGA - The Riga City Council's press department has informed LETA that the replacement of public transport bus shelters worth EUR 1 million has been suspended.

According to the information provided by the municipality, the works have been suspended due to the contractor.

The solutions used in the replacement process have raised concerns about the operational safety of the structure, so the municipality has decided to temporarily suspend the works and commissioned an independent structural engineering report.

According to the municipality, there are concerns that the essential requirements for the installation and construction of the structures - mechanical strength and stability - have not been met, as the detailing of the steelwork with the essential structural nodes has not been carried out by a certified structural designer, thus not ensuring the safety, serviceability and durability of the structure.

In view of these discrepancies, the municipality cannot accept the quality of such works and has requested clarifications from the contractor Palami to ensure that the shelters are in conformity with the design and of the appropriate quality.

At present, the municipality has assessed Palami a maximum penalty of EUR 47,800 for failure to deliver the goods on time.

As reported, most of the outdated public transport stops in Riga are to be replaced in the coming years with more comfortable and modern ones. In total, the municipality plans to improve all stops in its administrative territory in the future, installing a total of 500 new shelters.

Four tenderers applied for the open tender last spring. Palami was awarded the contract because it offered the shortest delivery time and the lowest price.

LETA contacted the company to find out its views on the situation. However, a company employee explained that the company would not comment on it.

According to the Palami Group's website, the company has more than 30 years of experience. It operates with high-end LED technology.

According to Firmas.lv, Palami. was registered in 2010. Its share capital is EUR 3,500.

The owner of the company is a citizen of Belarus Pavel Agronyn. Last year, the company had a turnover of EUR 2.4 million and a profit of EUR 350,000.

The company is ranked first in the lighting industry in the 2023 Latvian Business Report.