Feb 09, 2004. /Lesprom Network/. Metsaliitto company claims that governmental crisis will not affect its plans to build a pulp mill with a total bleached hardwood and softwood craft pulp production capacity of 600 thousand tons/yr. The negotiations with Latvian authorities have been stopped for a period of 3-10 weeks until the forming of the new cabinet. ‘I don’t expect any negative consequences, however I cannot assert anything at this point’, Baltic Pulp managing director Jukka Laitinen said. ‘The government officials we were negotiating with may resign and the negotiation process can be delayed’. Baltic Pulp enterprise is an affiliated company to Metsaliitto founded for the project fulfillment. Latvian 4-party coalition collapsed after prime minister Einars Repse dismissed deputy prime minister Ainars Slesers. Presently Baltic Pulp project worth $1 billion is delayed due to the pending environmental impact examination. Previously the examination results announcement was scheduled for January. Presently they results are expected to be announced in March. Metsaliitto is expecting the government to appoint the organization participating in the project fulfillment. Besides, Metsaliitto intends to purchase 33% of Baltic Pulp state-owned shares. However the decision on these issues was delayed. ‘All depends on the environmental impact examination results’, Jukka Laitinen said. Metsaliitto intends to build the enterprise in Ozolsala, 130 km east from Riga, in the second quarter of 2004. The enterprise launch is scheduled for 2007. However Metsaliitto, funding the project warned it could quit the project. The following decision will be taken depending on the environmental impact examination results and project research.