The works were executed by one of the largest road construction companies in Latvia, AS “A.C.B.”, whose offer was recognized the winning in the public procurement procedure. Construction works started in April 2023 and the contract price at the end of the project reached 7.7 million euros (excluding VAT).

As part of the contract, AS “A.C.B.” executed the construction of 13 local access roads with the length of 13.7 km, as well as built extensive drainage systems, including the construction of drainage networks and culverts. In locations where it has not been possible to build separate roads for the maintenance of railway infrastructure elements, access road exits have been created.

“We are proud to be the first Latvian company to successfully complete a Rail Baltica construction project in the Baltic States. Over 100 workers and 60 units of machinery were involved during the most active times in construction of 13 roads. About 100,000 m³ of soil were excavated and 85,000 m³ of embankment were built. Extensive drainage works were carried out with over than 27 km of melioration pipes installed across the area exceeding 5 million m². Our previous experience in large-scale projects, such as the reconstruction of Vilnius and Palanga Airports infrastructure, has prepared us well for challenging projects as the one just built. We are proud to have contributed to this significant project, providing our expertise in delivering complex infrastructure solutions. Our sincere gratitude goes to all our partners for their cooperation and support in successfully delivering this project to our client LTG Infra,” highlighted Anna Priščepa, Board Member of AS “A.C.B.”.

The construction sites spanned a considerable distance of 17.7 km apart and were simultaneously carried out in multiple locations. To monitor progress, advanced techniques such as 3D modeling, drone and laser scanning of ground surfaces, and weekly drone footage were employed. The highest BIM (Building Information Modeling) level 500 and strict environmental requirements were followed during construction.

“Throughout the construction, we actively engaged with the local community by relocating some entrance roads to locations convenient for farmers, thereby addressing their needs. We also coordinated the construction works to ensure that residents had access to their properties. New drainage systems, which are crucial for the quality of new railway infrastructure and structures, have been built, and the piping system has been upgraded to modern standards. The reconstructed network will not only ensure efficient removal of allowing accumulated water from cultivated fields, but the long-term durability of the newly constructed infrastructure as well,” stated Vytis Žalimas, CEO of LTG Infra.

The local roads will be temporarily maintained by the railway infrastructure manager, LTG Infra, before being transferred to the Jonava District Municipality. The primary purpose of access roads is to ensure access to the new railway infrastructure for the maintenance purposes, as well as to ensure efficient transport links for the local population.

As it was announced last year, at the beginning of March 2023, the companies AS “A.C.B.” and AB LTG Infra, which is the national implementing body of the Rail Baltica project in Lithuania, signed a contract for 7.1 million euros (excluding VAT). In Lithuania, the construction works of the ambitious Rail Baltica project are announced in several procurements, dividing the construction of the main line and the applicable infrastructure into sections of about 5 to 30 km long. The Latvian company, participating in one of the sections, won the public procurement procedure for the construction of Rail Baltica access roads in section Žeimiai-Šėta.

Latvian company AS “A.C.B.” has previously executed ambitious and complex infrastructure construction projects in Lithuania, proving its competence, professionalism and work discipline in the construction works of both Vilnius and Palanga airports.

Rail Baltica is the largest railway infrastructure project in the history of the Baltic States, during the implementation of which an electrified European-standard two-track railway will be built, connecting Warsaw, Kaunas, Vilnius, Panevėžys, Riga, Parnu and Tallinn. The total length of the Rail Baltic railway line in the Baltic States is 870 km: 392 km in Lithuania, 265 km in Latvia, and 213 km in Estonia.

infrastructure and energy financing research organization as the European PPP transaction of the Year The award was received by the representative of the public partner of the project SLLC Latvijas Valsts ceļi (LVC) Chairman of the Board Mārtiņš Lazdovskis and representatives of the private partner – TIIC partner Hugo Espinheira de Amador Silveira, JSC Kekava ABT Members of the Board Armands Sviķis from JSC A.C.B. and Mārtiņš Pļaviņš from CBF LLC Binders, as well as Juris Frīdmanis, CEO of JSC Kekava ABT.

“The project annual award is definitely a great satisfaction, especially considering how much work was put into the seven years it took to sign the contract. We are pioneers of PPP in the Baltics. However, the greatest satisfaction both for LVC, as the project promoter and implementer, and for the entire Latvian society will definitely be at the end of next year, when the new Ķekava bypass route will be open to traffic”, says M. Lazdovskis.

“The main advantage of our PPP project is the opportunity to combine the unique abilities and competencies of different parties – both in project management and financial attraction and construction, in order to achieve the best results for the customer and Latvian society. It is gratifying that Latvia’s first large-scale PPP project has earned international recognition, which indicates the effective cooperation and professionalism of all parties involved. We hope that the Ķekava bypass project will serve as a practical example for the implementation of future PPP projects in Latvia”, says Juris Frīdmanis, CEO of JSC Ķekava ABT.

Proximo Infra is a member of the financial information company Exile Group and an affiliate of TXF, the world’s leading trade and export finance company, founded in 2019. It is created by a group of experienced journalists, publishers and producers active in the field of financial information. The winning deals are selected by Proximo Infra‘s editorial team based on their market knowledge and consultation with the relevant industries. The competition jury selected nominations from all 32 major transport and social infrastructure PPP transactions in Europe in 2021.

Source: https://lvceli.lv/aktuali/kekavas-apvedcela-publiskas-un-privatas-partneribas-projekts-atzits-par-eiropas-gada-ppp-darijumu/

“We are satisfied with the financial results of last year. The tough competition and the considerable number of market players, including companies working in the “grey economy”, the significant decline in project profitability – these are the challenges the group has survived thanks to considerate administration,” said A.C.B. group’s financial director Armands Svikis.

In his words, even though the group has demonstrated an organic and normal turnover, there was a 40 percent drop in the company’s profit.

He said that the group has sticked to its strategy regarding investments in  development – innovations, new companies, technical solutions and growth. “We have expanded the groups with another subsidiary ACB Betons. We have acquired a 50 percent stake in SMP Būve company, strengthening the group’s competence in rail infrastructure construction,” he said, adding that investments have been made in technological park and innovations.

The group last year also implemented large restructuring in order to segment road construction companies for market development, adapting them for the requirements of competition, customers and legislation.

The company plans that in 2015 it will generate higher turnover, retain the existing profitability and continue expansion, said Svikis.

In 2013 A.C.B. group generated 110.5 million euros in turnover, and the group’s profit was 5.3 million euros. The core business of A.C.B. group is construction and renovation of roads, streets and structures like bridges and overpasses.