Two Latvian companies – Re&RE and UPB – have submitted proposals in the international procurement for the construction of Liepāja Prison. In total, 8 companies obtained the competition documentation. Under law, Liepāja Prison is classified as a construction project containing state secrets, so in addition to experience and financial indicators, one of the requirements for bidders was an industrial security certificate confirming the transparency of the company’s business practices and the security of confidential information storage.
Agris Balodis, chairman of the procurement commission: “Interest in the procurement for the Liepāja detention facility was very high. There was also interest from abroad, for example from Ireland and Lithuania. We know that subsidiaries of international companies in Latvia were also interested in the competition. Given the complexity of the project, bidders had several clarifying questions in order to prepare the highest-quality proposal possible. We are pleased that the first part of the procurement has concluded successfully and that we have received two serious proposals. This indicates that the procurement documentation was prepared at an appropriate professional level.”
The information provided in the submitted proposals shows that the total proposed price for UPB is 114 120 357.98 euro + VAT, and for Re&Re – 123 416 618.28 euro + VAT. The construction project price is only one of the indicators that will determine the final choice of bidder. Other factors that are essential for the successful implementation of the project will also be taken into account – the economic advantage of the proposal and the project implementation timeline.
The winner of the competition is expected to be announced at the end of this summer. Until then, the compliance of both bidders with the requirements of the procurement regulations and the justification of the submitted solutions and costs will be evaluated.
State Secretary of the Ministry of Justice Raivis Kronbergs: “I want to emphasize that Liepāja Prison is a long-term project, since construction alone will take 3 years, to be followed by equipping the prison with everything staff need and transferring inmates. So for about another 4 years the Ministry will still have to invest in the security and maintenance of 4 worn-out prisons that no longer meet modern requirements, which is why implementation of this project must be actively pushed forward. It will be a long-term investment in prison infrastructure for the next 50 years.
We are pleased that the next step in implementing the Liepāja Prison project, following design, has concluded successfully – builders’ proposals have been received, which now make it possible to determine the total project costs precisely based on real market prices. That the procurement price would be higher than the funding previously allocated by the government had already been forecast. The costs were based on indicative calculations set by Estonian consultants even before design work began – five years ago. For comparison, I would like to note that Estonia, back in 2012 – that is, five years ago – allocated 115 000 million euro for the construction of a new prison in Tallinn, which is planned to be completed this year.
Over the 10 years during which, for various reasons, the construction of new prisons in Latvia was postponed, Estonia will already have managed to build as many as 3 prisons, having become convinced of the benefits both for greater public safety from building new prisons and of savings on maintenance costs. The State Audit Office of the Republic of Latvia has also pointed out to us that more efficient solutions must be found for the maintenance costs of old prisons. That is why we will now work in parallel on two things – the procurement commission will evaluate the submitted construction proposals, while together with TNA we will look for the most efficient solutions for securing the additional funding needed.”
Liepāja Prison is designed for 1200 inmates. The whole complex comprises 8 different buildings. The total area of the territory is 305 116 m², the total built-up area – 64 053.7 m², and the total floor area – 51 407.4 m². The complex will be located 5.6 km from the centre of Liepāja. Both inmate and staff safety were set as one of the main factors in designing the prison. The prison complex will include residential units for inmates. Particular attention has been paid in the new prison to opportunities for the resocialization and employment of inmates; a large employment centre with work opportunities for inmates is planned, as well as an education centre for training inmates.
As a result, thanks to the creation of prison infrastructure that meets modern requirements, it will be possible to implement more effective enforcement of sentences – successful resocialization of inmates to promote their successful return to society, thereby reducing recidivism and ensuring public safety overall.
The procurement documentation for the construction of Liepāja Prison was prepared by TNA in cooperation with the Ministry of Justice, the Latvian Prison Administration, the Latvian Association of Civil Engineers, and the Sorainen law office’s Latvian branch.
Development of the Liepāja Prison construction project was supervised by the State Real Estate Agency of Estonia, which has already implemented several prison projects in Estonia following the country’s restoration of independence. The construction project was prepared by the Latvian company SIA Rem Pro. The Ministry of Justice of the Republic of Latvia has delegated the implementation and supervision of the construction process to VAS Tiesu namu aģentūra.
Liepāja Prison is the first detention facility that Latvia will build since the restoration of independence. The prison complex will be located in Liepāja, at Alsungas iela 29. The project provides for the accommodation of 1200 inmates, implementing a new-level resocialization programme for the education and integration of inmates into society. It is expected that more than 400 staff will work at the new prison complex.