Estonia, Investments, Legislation, Markets and Companies

"What went wrong was that the discussions with the main target groups and the community were not fruitful, this conversation and discussion has been lacking," Prime Minister Juri Ratas said at the government's press conference.

"Cooperation of the entrepreneurs with the local people and the local governments failed," Minister of Public Administration Janek Maggi said. "We have several examples in Estonia where it has succeeded well regardless of initial opposition."

According to Maggi, it could also be said that nothing was done wrong when it came to the plan, but there was failure. "It is usual in entrepreneurship that some projects succeed and others do not," he said. Maggi said that at the same time it is important to hold a discussion with the local community and he added that residents of Tabivere had also not previously heard of the idea to establish the wood refinery there.

Justice Minister Urmas Reinsalu said that the government welcomes all private sector initiatives, but in this case, an obstacle was overwhelming public interest expressed by the local communities.

The government at a Cabinet meeting on Thursday decided to initiate the termination of the national designated spatial plan with a view to setting up a large pulp mill in South Estonia.

The prime minister said that the government must take into consideration the opinion of the local community when implementing the national designated spatial plan and that public opposition is a circumstance that hinders the establishment of the pulp mill.

The government will make a decision regarding the termination of the national designated spatial plan after the termination procedure. According to initial assessments, this may take several months.

The government in May 2017 opened a procedure for a national designated spatial plan to find the most suitable location for the wood refinery in Viljandi county and Tartu county, as well as a strategic environmental impact assessment procedure to find out about the refinery's estimated impact on the environment.