Estonia: Deadline Extended for Completion of Muuga Terminal

“The developer of the terminal has submitted the application for extending the deadline for completion by 12 months until July of 2014,” says Mr. Neinar Seli, the chairman of the supervisory board of Port of Tallinn, regarding the granted authority to change the building rights contract.

According to the representative of Rail Garant Estonia OÜ, attorney-at-law Mr. Jüri Raidla, the intention to extend the period of construction is explained by numerous litigations that hindered the development process and made it significantly harder to involve both investors and strategic partners.

The supervisory board of Port of Tallinn has agreed with amending the building rights contract and extending the deadline for completion due to the fact that the legal dispute that hinders the development project should stop if Transiidikeskuse AS purchases Rail Garant Estonia OÜ and starts to implement the restructuring plan for Muuga container terminal prepared by Rail Garant Estonia OÜ, AS Tallinna Sadam (Port of Tallinn) and Transiidikeskuse AS.

According to the chairman of the supervisory board, the determining factor for acceptance of changing conditions of the contract was the fact that the offer of Rail Garant Estonia OÜ provides the solution for the legal stalemate resulting from the two years of disputes. “The goal of Port of Tallinn is to preserve its competitive ability on the rapidly developing market for container transportation. The offered solution allows keeping all of the building rights conditions offered by Rail Garant Estonia OÜ,” explains Seli.

[mappress]

Press Release, April 16, 2013