RIGA - In a major development that may breathe new life into Latvia's hockey hopes, Multihalle, the company entrusted to organize construction of an ice hockey stadium for the 2006 world championship, on April 16 agreed to pull out of the project in favor of five Latvian construction companies.
Multihalle, which has come under a storm of criticism both in the press and in the halls of power, signed an agreement with the five-party concern, Strategic Partnership of Latvian Builders, which effectively terminated the company's participation in the stadium project.
As part of the agreement, Multihalle handed over its lease of the selected construction site on Skantes Street to the partnership, consisting of five local construction companies - Skonto Buve, Kalnozols Celtnieciba, Re&Re, RBS Skals and LEC.
Riga City Council development department head Andris Ameriks said last week that the project proposed by the partnership envisaged involvement of Riga's city administration - namely, that the city buy back at least 30 percent of the value of the stadium by 2006 and build the infrastructure.
This week Multihalle was due to submit the pertinent documents to the City Council confirming that it has given up its lease in favor of the partnership.
It was unclear who would eventually build the stadium, as a proposal from the Estonian construction company Merks was still on the table. Merks has offered to build the arena, which should be completed by September 2005, on Lucavsala Island on the Daugava River.
The final decision will be made by the Riga City Council.
Prime Minister Indulis Emsis said previously that it should be up to the council since it had done most of the work and was providing the land for the deal.
Deputy Prime Minister Ainars Slersers, who has been heavily involved in the project, is reportedly pushing for Merks to build the stadium. Slesers is reported to have had close relations with Merks managers in the past.
Both Merks and the five-company partnership have received confirmation from local banks ready to finance the project. Merks is backed by Parex Bank, and the five-company group by Hansabanka.
Construction of the ice hockey hall, estimated to be worth 26 million euros, has run into major delays due to Multihalle's inability to find an investor for the project.
A number of piles had been driven at the construction site on Skanstes, though all further work was suspended by city inspectors.
Officials from the International Hockey Association are expected to arrive in Riga to inspect the city's preparedness to hold the championship, though a final decision is not likely to be made until the heads of all the national associations meet in Prague during this year's ice hockey championship, which has just begun.
