On January 16, 2024, the Cabinet of Ministers approved the draft regulations* developed by the Ministry of Environmental Protection and Regional Development on providing support for the development of business public infrastructure and increasing the volume of private investments in the functional areas of cities, making investments for business development in accordance with local government development programs.
The total planned funding is 156.60 million euro, incl. financing of the European Regional Development Fund (ERDF) 133.11 million euro and municipal co-financing or private co-financing at least 23.49 million euro.
"This is our opportunity in the next five years to invest significant financial resources in municipal infrastructure, which in the long term would allow creating new jobs in the regions, opportunities to increase wages in existing jobs and develop economic activity in general. The experience so far in the implementation of similar programs has proven that this type of investment also attracts people to local areas and improves the overall quality of life," says Minister of Environmental Protection and Regional Development Inga Bērziņa.
The support is intended for local governments throughout Latvia, their institutions and capital companies, as well as special economic zone administrations for the promotion of economic activity in local governments for the development of the necessary public infrastructure, including the creation of traffic infrastructure, business buildings, territories and industrial connections.
Investments are planned to be made in cities and their functional territories, which are development centers of national and regional significance and their surrounding territories, between which there is daily labor migration and a common service network.
As a result of the implementation of the measure, positive incentives will be created for the promotion of employment and economic development in the regions. It is planned that the merchants who will benefit from the developed public infrastructure will ensure an increase in the wage fund of at least 66.56 million EUR and will make private non-financial investments of at least 88.74 million EUR. The projects can be implemented and the indicators can be achieved by the end of 2029.
The minimum amount of the total eligible costs of the project is 200 thousand euro, while the maximum ERDF funding of the project is 5 million euro.
*European Union cohesion policy programs 2021-2027. for the year 5.1.1. of the specific support objective "Promoting the integrated social, economic and environmental development of the local territory and cultural heritage, tourism and safety in the functional areas of cities" 22.214.171.124. implementation rules of the "Infrastructure for business support" measure