COBALT advised Tallinn City on renegotiating with Vivatex Holding and BCA Center PPP contracts for the lease of ten school buildings

COBALT law firm advised Tallinn City on renegotiating with Vivatex Holding and BCA Center PPP contracts for the lease of ten school buildings in Tallinn.

In 2006, Tallinn City concluded 30-year PPP contracts with private companies for the full renovation of the school buildings, but as of today the city was not satisfied with the originally agreed rental rates and wanted to either terminate the agreements or renegotiate terms. After long and complex negotiations an agreement was reached and the contract terms were amended, which means ten school building leases became 11% cheaper. In addition, the compensation paid by the city for school buildings at the end of the contract was limited. In total, these changes will help the city to save an estimated 37 million euros.

Our work includes advising the client throughout the process. Client was advised by Partner Aivar Taro, Senior Associate Siim Vahtrus, Specialist Counsel Kadri Matteus, Managing Associates Annika Peetsalu and Kaidi Reiljan-Sihvart.