OFF THE WIRE

ANOTHER TENDER WON: International software company MicroLink has won a 4.2 million euro ($3.72 million) contract to meet the information technology needs of the Latvian State Compulsory Health Insurance Agency. The 18-month project will be financed by the World Bank and carried out by Fortech, MicroLink's Latvian subsidiary and Sema Group Belgium, the company's representatives said Jan. 10. Under the agreement to be signed in the coming months, Fortech undertakes to develop and implement management information systems for Latvian public health care organizations as part of the general Latvian health reform project. This is the second major software project MicroLink has won in Latvia in the last few months. In December 2001 Fortech signed a 4 million euro agreement to supply and install SAP financial management software for Latvian railways. "Those two projects are some of the largest IT projects ever undertaken in the Baltics," said Allan Martinson, MicroLink's chief executive. The MicroLink group consists of 22 subsidiaries and has a presence in all three Baltic countries. It has 659 employees and recorded sales of 63 million euros in the financial year ending in June 2001.

RUSSIAN INVESTMENTS TO COME: Soyuzplodimport, new owner of Latvia's largest alcohol producer Latvijas Balzams, plans to increase the company's production by investing $7.5 million this year, Russian news agencies have reported. But Latvijas Balzams' Chairman Juris Gulbis said no detailed plans would be disclosed until a shareholders' meeting in April. "By introducing new technologies the company will increase its competitiveness in its existing markets and will be ready to carry out export orders," said Gulbis. He said that Latvijas Balzams planed to make beverages for sale under the trade marks of other companies in Latvia and abroad. Soyuzplodimport, which owns Russia's leading vodka brands Moskovskaya and Stolichnaya, became Latvijas Balzams' largest shareholder last year. Russian news agencies reported that the $7.5 million investment Soyuzplodimport would make in Latvijas Balzams was part of a $23 million package of investments designed to increase production throughout the group. Latvijas Balzams, which is listed on Riga Stock Exchange's second list, posted a net turnover of 25.5 million lats ($40.47 million) in 2000 and profits of 1.34 million lats. The company expects 26.05 million lats in revenue for 2001 and profits of 1.38 million lats.

BATTERIES RECYCLED: The Ecometal company has started construction of a 50 million kroon ($2.85 million) facility to reprocess car and industrial batteries at Sillamae, northeastern Estonia. The plant is intended to meet the demand of the whole Baltic region and is expected to start operating at the end of this year. Ecometal's chief executive Allan Aru said the facility would be able to reprocess 15,000 tons of old batteries a year without damaging the environment and using technology compliant with EU standards. "At present the Baltic region lacks facilities for reprocessing battÂries without damaging the environment and collected batteries are exported mostly to plants in Europe. Estonia produces an estimated 4,000 tons of old lead batteries a year, only half of which are currently collected," Aru said. The facility will employ up to 30 people.

SMS ADS TO ATTACK MARKET: The Estonian mobile communications operator EMT is to introduce advertising in the form of short mobile-phone text messages. The messages will be sent only to those prepared to accept them, the company said. "Very many companies have come to us requesting that we send ads to clients through SMS," EMT's PR manager Kaja Pino told the daily Eesti Paevaleht. Companies interested in advertising via SMS include large supermarkets and chain stores wanting to promote their discounts. This form of advertising was pioneered last summer by rival operator Radiolinija which sent messages advertising discounts at Maksimarket stores to clients in the vicinity of those stores who requested them.

TREATY RATIFIED: The Lithuanian Parliament ratified a much delayed treaty with Great Britain enabling avoidance of double taxation of income and capital gains by 98 votes in favor and none against at an extraordinary session on Jan. 12. The ratification vote was originally planned for Dec. 21 but was canceled after many parliamentarians, reportedly in a "Christmas mood," failed to show up for the ballot. The delay means that rather than entering into force in Lithuania January 2002 and in Britain this April, the treaty will take effect in the same months of next year. The Lithuanian Finance Ministry, however, has made a request to Britain's Finance Ministry that the treaty take effect earlier. With 6.6 percent of all direct foreign investment coming from Britain the country is the sixth largest source of investment in Lithuania.

PENSION CUT SWELLS COFFERS: For the first time in five years Sodra, the Lithuanian state-run social insurance fund, reported a revenue surplus in 2001. Revenues exceeded expenditures by 1 million litas ($250,000). Social Security and Labor Minister Vilija Blinkeviciute said in a news conference on Jan. 9 that Sodra's budget revenues totaled 4.30 billion litas in 2001, still some 0.4 percent less than planned, while the fund's expenditures came to 4.30 billion litas, or 2.4 percent less than planned. Sodra's revenues grew by 2.1 percent in 2001 compared to the previous year, while expenditures declined by 2.8 percent. "The results were due to certain political decisions taken by the Seimas (Lithuania's parliament) - principally to a package of amendments to the pension law," the minister said. Among other things, the amendments restrict payment of pensions to people who work beyond retirement age. Sodra's budget deficit widened to 212 million litas in 2000 from 117 million litas recorded in 1999. The fund's 2001 budget deficit was expected to be 98 million litas.