In accordance with today's decision by the Riga City Council, the municipality will expand its participation in the public-private partnership (PPP) program "Affordable Housing for Latvian Specialists." Another land plot in Riga, at Mežezera iela 5 in Čiekurkalns, will be added to the planned procurement, where 90 new rental homes are expected to be built. Consequently, the total scope of the program will be expanded to the construction of homes at 9 addresses across 6 municipalities, providing for the construction of a total of 1,380 affordable rental homes, informs the public partner and implementer of the project – SJSC "State Real Estate" (SRE).
This decision coincides with a significant stage in the development of the program. On September 8 and 9, SRE hosted a delegation from the European Investment Bank (EIB), the Nordic Investment Bank (NIB), and the Council of Europe Development Bank (CEB) in Riga. The aim of the appraisal mission was to introduce representatives of the international financial institutions to the program's concept, as well as to visit the land plots intended for housing construction to evaluate their suitability and financing options for the program. Together with the representatives of the international banks, the Ministry of Finance and the Ministry of Economics, municipalities and industry experts, the project`s progress and its environmental, climate and technical aspects were discussed to ensure the swiftest possible development of financing conditions for these projects on the side of the international institutional banks. Furthermore, the mission participants conducted on-site inspections of the planned affordable housing construction sites in Riga.
"The decision made today by the Riga City Council to add another land plot in Čiekurkalns to the program is a crucial step in promoting housing affordability in the capital city, which demonstrates the municipality's readiness to attract the specialists needed by society. At the same time, the visit of the representatives of international banks has successfully concluded. During this visit, the delegation gained confidence in the development of the program and the rationale for its implementation, as well as inspected the land plots allocated for the program in Riga, recognizing them as suitable for housing construction. Thus, we have concluded negotiations with the municipalities and are advancing the procurement process to attract a private partner. We plan to launch the qualification for the procurement within a month," points out Renārs Griškevičs, Chairman of the Board of SRE.
Following the addition of the Čiekurkalns land plot, the program envisions the construction of 1,380 affordable rental apartments across 9 addresses in 6 municipalities, with planned total capital investments amounting to approximately 142 million euros:
- In Riga: 822 apartments (on Tīnūžu iela, Ozolciema iela 62, Mežrozīšu iela 39/41/45, as well as at the newly added address in Čiekurkalns, Mežezera iela 5);
- In Tukums: 150 apartments (on Smilšu iela);
- In Jēkabpils: 140 apartments (on Celtnieku iela);
- In Daugavpils: 120 apartments (on Nometņu iela 103);
- In Cēsis: 100 apartments (on Festivāla iela);
- In Gulbene: 48 apartments (on Malienas iela).
The apartments are intended to provide high-quality and financially accessible housing stock in the regions and the capital city for young families, helping to attract new specialists to work in sectors important to the state and municipality, such as teachers, medical professionals, and employees of public administration and security institutions.
PPP Model and Next Steps
The project is being implemented within a public-private partnership (PPP) framework based on an availability payment contract with a term of 27 years. The private partner will be responsible for the design, construction, and financing of the housing, as well as the maintenance and management of the buildings throughout the duration of the contract. Upon the expiration of the partnership period, the land and the constructed homes will remain the property of the municipalities.
SRE consolidates and represents the state's interests, ensuring the preparation and implementation of the PPP housing project, including planning, organization of procurement processes, and contract management throughout the entire life cycle of the project.
Currently, SRE is actively preparing for the procurement to attract a private partner, which is planned to be announced within a month. In preparation for the announcement of the procurement, SRE invites potential interested parties to familiarize themselves with the published Prior Information Notice (PIN) at https://eformsb.pvs.iub.gov.lv/show/75970a89-e803-455c-a829-32121bac6cd7; https://ted.europa.eu/en/notice/-/detail/568753-2026. To ensure timely preparation and transparency, technical and territorial data for each land plot (topography, geotechnical investigation, approvals for engineering communications, etc.) are already available to potential partners and interested parties in the "Data Room" on the SRE website. Further information regarding the program and available materials are published at: https://www.vni.lv/projekti/ires-majokli-latvijas-specialistiem.
