Citycon to Appeal against City of Tampere's Decision on the Ratina Tender
Procedure
Based on competitive tendering, Citycon Oyj submitted a joint tender with Skanska
Talonrakennus Oy for the construction of a new shopping centre and the related
areas, in accordance with a general plan for the Ratina region in Tampere,
Finland. On 3 April 2006, the City of Tampere made the decision to opt for a
consortium comprising Kapiteeli Oyj and Sponda Oyj to implement the project.
Citycon Oyj's and Skanska Talonrakennus Oy's quotation for this project totalled
over EUR 31 million while the selected consortium quoted EUR 20 million.
Today, Citycon submitted a claim for correction to the City Board of Tampere,
demanding reversal of the decision and requesting that Citycon Oyj and Skanska
Talonrakennus Oy be selected to develop the project. Citycon has also filed a
petition with the Market Court, whereby it is demanding that, in the first
instance, the decision be reversed and, secondarily, the City of Tampere carry
out a new comparison of tenders. In addition, the petition requests a ban on
signing the project contract and to discontinue the project procurement process.
Accordingly, the fundamental grounds for these two demands rest on the decision's
violation of the Public Procurement Act with respect, for example, to the
incomparability and incomplete preparation of tenders, and the related incorrect
tender scoring in favour of the contract-winning tender. The claim for correction
also refers to the decision's considerable commercial and economic importance to
the City of Tampere and its residents.
Helsinki, 27 April 2006
CITYCON OYJ
Petri Olkinuora
CEO
For further information, please contact:
Petri Olkinuora, CEO, tel. +358 9 6803 6738 or
(mobile) +358 400 333 256
Distribution:
Helsinki Stock Exchange
Major media
www.citycon.fi