The capital has floated plans to build a swimming pool next to the Tondiraba Ice Hall in Lasnamäe since 2019. The facility will include sports halls, a spa and an Olympic-standard swimming pool.

An international public procurement tender was launched in July to find a private company to build the center.

However, Mayor Peeter Raudsepp (Isamaaa) announced at a press conference on Tuesday that the tender would not go any further.

"Unfortunately, we have been forced to cancel the current swimming pool concession tender because the Ministry of Finance has warned the city that it is considering launching supervisory proceedings concerning the tender," he said. "This would mean endless disputes and potentially the invalidation of the tender."

According to the city council, the Ministry of Finance had raised questions over the tender conditions and its competitiveness.

Raudsepp said he disagreed with the assessment, but the city did not want to take risks that may jeopardize the construction of the swimming pool. The procurement model has now been changed to increase competition and ensure compliance with state aid rules in all circumstances, and preparations for a new tender are underway.

Tallinn's goal is still to build Estonia's first swimming center that meets international Olympic standards, serves elite athletes, recreational swimmers and children learning to swim, the mayor told the assembled media.

"We want to cooperate with the private sector because this will help reduce the building's maintenance costs in the long term and is a more economical decision in terms of taxpayers' money," Raudsepp said.

Year-long delay

City officials believe the new tender should give the developer greater freedom to operate.

The basic requirements will stay the same: a 50-meter competition pool with 10 lanes, a 25-meter training pool, teaching pools and a parking lot.

Prospective bidders will be able to design all other facilities according to their business plans.

"Several potential developers have expressed interest in the current tender, which shows that there is genuine market interest in the project. At the same time, the city cannot take the risk that a swimming pool project that has been in preparation for years will become bogged down in lengthy proceedings or court disputes. With the new tender, we can address the necessary issues from the outset and focus on building the swimming center," Deputy Mayor Tiit Terik (Center) said.

Tallinn is prepared to contribute up to €20 million for the project, which the city says is less than it would cost to build a swimming pool fully owned by Tallinn.

The project is now expected to be delayed by at least a year.

The Social Democratic Party, which is in opposition in Tallinn, has previously criticized the plan to build the swimming pool with the help of an investment grant, and sees a potential corruption risk.

Ministry made no demands

The Ministry of Finance on Tuesday afternoon said it is puzzled by Raudsepp's claims.

"We have not issued any order. We did not even get as far as initiating supervisory proceedings before they decided to cancel the tender themselves," said Elo Ellermaa, head of the ministry's communications department.

Former Mayor Jevgeni Ossinovski (SDE) told ERR on Tuesday that he had proposed the ministry launch supervisory proceedings to protect the public interest, citing the Porto Franco case.

"The European Commission would have demanded the repayment of illegal aid, the developer would have packed up and left, and we would have ended up with yet another project reeking of the Center Party, standing as an abandoned eyesore and blighting the cityscape for years," Ossinovski said.

However, Ellermaa said the ministry has not made any decisions. It received a request to initiate supervisory proceedings, but before doing so, an assessment takes place.

"We were still only in the assessment phase, requesting additional information from the contracting authority, and no supervisory proceedings have been initiated or a position taken on the matter. At the request of the contracting authority, namely the Tallinn City Property Department, the deadline for providing explanations was also extended," Ellermaa explained.

"To our knowledge, however, the Tallinn City Property Department has decided to invalidate the tender on its own initiative," she said, adding that the organizers of the tender should be able to explain the reasons.

Ellermaa confirmed that if the public procurement procedure has been invalidated, the Ministry of Finance will not initiate supervisory proceedings.

This article was updated to add comments from the Ministry of Finance and Jevgeni Ossinovski.

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