Additional 22.8 million lats allocated for the business support
On Tuesday, February 16, orders prepared by the Ministry of Finance envisaging amendments to the European Union (EU) funds operational programmes “Entrepreneurship and Innovations” and “Infrastructure and Services” were approved by the Cabinet of Ministers (CoM).
Amendments envisage redistribution of the financing between the above two programmes allocating additional 22.8 million lats for the business support. These resources will be used to implement investment projects with high added valued in which project applicants have showed interest within the framework of the call.
Therefore the development of knowledge-based products will be facilitated and creation of products with high added value will be supported allowing Latvia to compete more successfully in international markets.
Within the operational programme “Infrastructure and Services” the financing will be allocated to energy efficiency measures. To improve heat insulation of apartment houses there are ~ 30 million lats planned, however to use renewable energy resource in the development of cogeneration stations – 7 million lats.
8 million lats of the EU funds will be allocated to the complex development of regional municipalities through the newly created activity “Support for the Complex Development of Regional Municipalities”. Within the activity it is planned to provide support for regions creating more favourable environment for business development, ensuring work places and availability of services.
Amendments to the operational programmes are also oriented towards the optimisation of state budget grant for EU funds projects decreasing the overall burden on the state budget by 242 million lats.
Amendments to the financing plan of the programmes have been developed taking into account the market price deflation (therefore reaching the planned goals of the EU funds programmes with less total financing) and taking into account limited state budget resources.
As the proportion of the EU financing in the total project financing increases but the Latvian co-financing decreases the issue of financing provision will be eased for project developers. Implementation of the EU funds projects will be ensured with less state budget resources.
