Lembergs wants to re-energize Ventspils

RIGA - On March 6, the mayor of Ventspils, Aivars Lembergs, announced that he has sent 20 proposals to international companies to construct or renew the thermoelectric power station in Ventspils. Lembergs has filed documents with the Latvian Ministry of Economy requesting a ministry representative to join a proposed commission to aid in the selection of a partner for the project's construction.

Ventspils Nafta is the company behind the project.

The company's investment director, Viesturs Grinbergs, said the closed bids on the investment of capital for the thermoelectric power station project depend on whether the investors' chosen want to update the premises already in operation or construct a new energy plant.

"Ventspils and its surrounding region has a very poor quality of electric current. The proposal, if successful, will provide the region with a superior energy source," said Grinbergs. "The most important feature of the project is that electricity tariffs will decrease with the construction of a thermoelectric power station."

Romands Melnieks, a spokesman from the Ministry of Economics, said before the proposed project can go ahead, the ministry has to thoroughly inspect the details of the submission.

"The ministry has to weigh up the options of whether the construction of a thermoelectric power station in Ventspils is a good idea, whether it is feasible and will it benefit Latvia on the whole," said Melnieks.

The Ventspils City Council along with Ventspils Nafta has finished a feasibility study on the project and has sent out proposals to the world's largest energy companies, including the Russian company Gazproms. Companies wishing to be considered have until the end of April to submit bids to the Ventspils City Council.

The cost to construct a new thermoelectric power station is estimated at approximately 100 million lats ($167.780 million). Lembergs prefers the construction of a new station in Ventspils but offers for renovating the existing power station will be taken seriously.

After Ventspils Nafta accepts an offer to start the project, there has to be a thorough economic examination to find out how much investment capital is needed for the project.

Grinbergs said there will be tremendous benefits for the people of Ventspils.

"The people of Ventspils in the future will have the same quality electric current and voltage as the people in Riga, something that is very lacking here," said Grinbergs. "This really is a project for the benefit of the people of Ventspils."

Little facts are known on how much the thermoelectric power plant will aid in the creation of jobs in Ventspils. This is another point that depends on the nomination chosen for the project and what their offer involves.

New jobs will be created for the community, said Grinbergs, and even if there are only a few employment vacancies, the fact that there will be cheaper and quality electrical power in Ventspils is the most important matter.

The thermoelelectric power plant has the potential to not only serve the local area but to export energy to other parts of Latvia. Grinbergs did not rule out the possibility of exporting energy out of the power plant to Latvenergo. According to Grinbergs, this is a real possibility when there is little electricity being produced at Latvenergo's hydroelectric power stations. Grinbergs does not see the export price of electricity sold to power buyers as a problem, because the project's main goal is to produce electrical power cheaply and provide low tariffs for consumers.

The Ministry of Economy is studying the Ventspils submission and has not decided if the ministry will aid in the selection of an overseas investor for the thermoelectric power plant. Melnieks said the Minister of Economics will reach a decision in the next week.

The construction of the thermoelectric power station will depend on the applicant chosen, but the starting date of the project is planned in the next five years.