In April 2024, conservation work began at the country's main medical construction project – Pauls Stradiņš Clinical University Hospital (KUBS). Due to various risks – cost increases, potential litigation, possible insolvency of the developer, a timeout of 26 months was anticipated.
And then to bring the hospital to order, using penalties from the developer – LLC VELVE, European Union funds, the state budget, and the money of KUBS itself.
In February, the final estimate on which the construction of building A2 was halted was named in the Saeima Commission on Requests – 93.2 million euros. This means an increase of 166% compared to the initial estimate.
Why the Contract Was Terminated
The Minister of Health – as a representative of the legal entity, the holder of KUBS shares – addressed the opposition deputies who submitted the request, indicating that the contract with the construction company had been renegotiated five times regarding deadlines. It had to be terminated!
"It is precisely the unlawful continuation of the contract that would have created high risks of compliance of the A2 building development project with the conditions of the European Union funds… leading to financial adjustments or even a complete loss of co-financing. As a result, all incurred losses and the necessary funds to complete the project would have to be covered from the state budget, losing co-financing from EU funds. Moreover, even in the case of contract termination, the inevitable subsequent potential legal disputes and fines would have an additional negative impact on the state's fiscal space, hindering the implementation of other priority state-scale projects," the minister reported.
The construction, which began in 2019, was affected, in H. Abu Meri's view, by the COVID crisis and the international situation. Based on this – inflation (the cost increased by 5 to 10% per year). Additionally, the complexity of the work (turned out to be higher than anticipated), as well as the deterioration of the already constructed object (mold was found).
In general, "to fully complete and equip building A2, about 60% of the total volume of work still needs to be done!"
Justice Washes Its Hands
The Ministry appealed to the Prosecutor General's Office. But on June 30, 2025, a decision was received from the Prosecutor General's Office of Latvia regarding… the refusal to initiate a criminal case!
"Since the investigation conducted by the Prosecutor General's Office did not confirm that the former officials of the board and council of KUBS committed such inaction that would have led to the harmful consequences indicated by the ministry."
So, here we are – there is damage to the state budget in the tens of millions of euros, and no one is to blame. Juris Stukans is now also in the clear, as he is no longer the Prosecutor General.
It turns out that the Ministry of Health can only provide a moral assessment: "The KUBS Council did not fulfill its duties as a decent and caring owner, promptly and thoroughly assessing risks and their short-term and long-term impacts." But this opinion does not help the case, nor does it put bread on the table…
The State Enterprise Promises to Finish by 2030
As of today, the project is managed by the state joint-stock company Valsts nekustamie īpašumi (VNĪ). On the agenda:
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Monitoring and removal of mold;
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Updating necessary documentation, refining individual construction nodes using three-dimensional technology;
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Completing the remaining construction work, commissioning the facility, final inspections, including compliance with sanitary standards.
Judging by the revised deadlines for completion – which is December 31, 2029 – the construction of the flagship of healthcare will be carried out, so to speak, slowly and sadly. And, it must be assumed, it will be under the control of the future, XV Saeima…
But can "Stradini" pay for the necessary work itself? Not at all: such actions are "legally incorrect and may harm co-financing from EU funds…"
H. Abu Meri asks the deputies not to see him as an enemy: "The ministry is very interested in finding the most effective solution to the situation."
Swapped Allopathy for Diplomacy
Former Minister of Welfare, now Deputy Ramona Petraviča thanked for the fact that, finally, the message about the situation around KUBS is not classified as "for official use only." However, she does not understand why in 2024 the factor of the war in Ukraine was considered significant – by that time, there was no surprise at all. "Inflation was also known, and COVID had already passed," recalls Petraviča.
– There were no new circumstances that could have influenced the increase of 166%.
Another deputy, Edgars Tavars, pointed out that from Minister Abu Meri's responses, it is unclear whether he personally participated in the decisions regarding KUBS. There is also no specific official from the Ministry of Health responsible for completing the controversial A2 project.
But we have information about the combat deputy H. Abu Meri – who served from 2023 to 2025, that is, during that time, the parliamentary secretary of the Ministry of Health, Artem Urshulsky, now works in the same position in the Ministry of Foreign Affairs. Apparently, a member of "New Unity," who ran from this party last year in the Riga City Council (did not pass) – has arranged everything in healthcare, and is now transferring his competencies to foreign policy…
Leadership at a Distance
The minister himself blames the former leadership of KUBS for everything:
– Communication between the board and builders was very poor. It was evident that the then council was not doing its job as it should have.
One of the members of the hospital council did not even live in Latvia, the minister reported. However, he only exercises political oversight and cannot dismiss anyone himself!
– I have no connection with the builders, the council, or the board, – H. Abu Meri distanced himself.
Regarding the mold in building A2, experts had to be called from… Germany. During conservation, special attention had to be paid to the roof to prevent leaks; moreover, there was also the security of the unfinished complex.
"We are in such a tunnel," Mr. Abu Meri admitted, "But we must continue this project; it is very much needed." However, the medical department did not have specialists for the completion, so it was handed over to VNĪ, that is, the Ministry of Finance. And here it is – says Hosam Abu Meri - "the price is what it is..."
WHAT IS PLANNED
Building A2 is expected to house:
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Emergency Medicine Center (reception);
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operating rooms;
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profiles of surgery and neurosurgery;
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neurology and stroke departments;
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intensive care;
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a clinic for women and children along with a maternity block.
For patients, predominantly double and single rooms are planned – to limit the spread of infections.
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