RIGA, Dec 29 (LETA) - The local authority of the central Latvian city of Jelgava will have to repay some of the European Union's (EU) co-funding allocated to the city's ring road project, the local authority informed LETA. 

After the Supreme Court rejected Jelgava's appeal, the ruling of the Administrative Regional Court, which found the local authority's choice of the ring road's builder unlawful, took effect. 

The decision of the Supreme Court means that the Central Finance and Contracting Agency (CFCA) will apply a financial correction to the project's eligible expenses covered by the EU co-funding. 

For the time being, there is no information as to how much of the EU co-funding will have to be repaid. This week, Jelgava local authority plans to hold talks about this matter with the Public Procurement Monitoring Bureau and the Finance Ministry to discuss possible solutions.

As reported, partnership ReRe Vice-Hidrostatyba started constriction works to build the Jelgava ring road in the fall of 2018. At the end of 2020, the new road, which cost nearly EUR 22 million, was completed. However, Igate KT, which also participated in the tender to construct the ring road, appealed the result of the competition.

The appeal was heard by the Public Procurement Monitoring Bureau and courts of various instances.

The latest ruling of the administrative district court was appealed before the Administrative Affairs Department of the Supreme Court.

The total costs of the ring road project is EUR 21,679,350. The EU Cohesion Fund has covered EUR 12,795,946 of this amount, EUR 564,527 is a government subsidy and EUR 8,318,877 have been provided by the local authority.

According to information obtained by LETA, the financial correction might reach up to 50 percent of the EUR 12,795,946 provided by the Cohesion Fund.