Energy, Financial Services, Latvia, Legislation

The ministry's positive evaluation of stage two of the TEC-2 reconstruction project was submitted based on the economic justification for the project provided by Latvenergo, as well as on a report by the State Treasury which showed that there was no reason to believe that the purchases connected with the project would cause any threat to the company's future liquidity.

It has been possible to significantly reduce the expenses of the TEC-2 reconstruction project – by EUR 20 million (LVL 14 million). Moreover, in the current economic situation, this is the country's largest and most significant investment project, which will automatically provide huge investments in the economy and at least 500 new jobs in the construction industry for specialists working in Latvia.

The Finance Ministry underlined even more positive aspects of the project – TEC-2's reconstruction will guarantee Latvia's energy self-sufficiency, as well as helping to stabilize natural gas consumption and significantly increasing the international competitiveness of Latvenergo. Moreover, the expenses of the planned TEC-2 reconstruction project, calculated per 1 KW, will be 15% lower than for a similar project being carried out in Lithuania.

Earlier this week, the Economy Ministry had given its approval for the project.