Builder leaves Ilūkste promenade project as municipality relaunches tender

Augšdaugava Municipality has terminated its construction contract with Jēkabpils PMK for improving the area around the Jesuit monastery and the Ilūkste River waterfront, LSM reported. The project was valued at €500,000.

The works were due to be completed this year but stopped in July. Jēkabpils PMK has since entered legal protection proceedings and accumulated tax debts of about €750,000.

The municipality decided not to wait for the company’s situation to be resolved. It terminated the contract after paying for the work completed and launched a new procurement procedure for the remaining works, valued at €380,000.

Augšdaugava municipal executive director Pēteris Dzalbe said the project had initially progressed well, but the pace later slowed and communication with the contractor ceased.

“When we realised that the company was no longer responding to the municipality’s official emails or requests to act more quickly and increase the pace of work, communication disappeared. The municipality then decided to act sooner and terminate the contract after paying for all the completed work,” Dzalbe said.

He said the municipality had paid 25% for the work actually completed. The project deadline has been extended until next year, and the municipality expects to meet the deadlines set by the Central Finance and Contracting Agency.