"With this strategic decision, we will make sure that in seven to eight years and in the long run, the city retains control over its infrastructure," Kõlvart said about the city government's plan to create a joint venture with private company Utilitas to create Utilitas Tallinna Soojus, which would be owned one-third by the City of Tallinn and two-thirds by a private company.
He said that Tallinna Soojus infrastructure was actually sold on a lease-to-own basis in 2001, when the lease agreement with Utilitas was signed. This deal is still in effect until 2031; according to the deal, the city is supposed to pay Utilitas around €250 million for the investments it made in the meantime.
"So after seven to eight years the city will have to save up €250-300 million and also find the means to continue investing. And if this capacity is not found, there will not be many options: either to give up, sell or find new leasers; but really, there will be no possibility to negotiate or set conditions," he said.
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