Headache over Yachting Center

TALLINN (BNS) - Conditions of privatization of the Olympic yachting center Tallinna Olumpia-purjes-pordi-keskus (TO), the last large piece of commercial real estate remaining in state hands, are still unclear although the state hopes the sale will bring 200 million kroons ($11.5 million) into the budget before the end of this year.

While the Culture Ministry wants to sell TO without setting a starting price, the Finance Ministry finds a sale without a price complicated to arrange.

Veiko Tali, head of the Finance Ministry's financial services department,said that he's against selling the center without a starting price, even though the Culture Ministry asked the Finance Ministry to consider the possibility.

A bill on the sale of TO must be drafted by the Culture Ministry, but the ministry has been putting it off since spring. The Finance Ministry is waiting for the bill to endorse. In Tali's opinion, TO is such a special and specific piece of property that it's difficult to fix conditions of its sale. At the same time, the anticipated 200 million kroons from the sale must come into the state budget within this year.

The yachting center complex includes a hotel, shopping center, sports facilities, water sports and recreation center, and a yacht harbor. Opposition between sports and the city of Tallinn have up to now prevented its privatization.