Riga, 5 November 2020 – Implementation of projects to boost economic activity in the areas under the responsibility of the Ministry of Environmental Protection and REGIONAL Development for the reduction of the impacts of the Covid-19 pandemic for the total investment amount of EUR 215.9 million. . In line with the economic heating plan proposed by Minister Jura Owl in spring, WE have consistently implemented regional development and investment policies, identified the types of aid which would make the most effective contribution to the economy, contributed to the implementation of investment projects for business promotion, infrastructure development, energy efficiency improvement, environmental protection, and the development of remote services, thereby providing investment in alleviating the negative economic effects of the crisis. In addition, investments in the reduction of nursery lines have also been supported, as well as roadways have already started this year in the area of municipal reform s. The total amount of investment consists of allocated funds from European Union (EU) funds, State loans to municipalities, as well as co-financing of the State budget and local government budgets.
Minister Juris Pūce: "As well as the economic heating plan being implemented, we have achieved that both the fund investment projects and the state loan programme funding to mitigate the effects of Covid-19 are targeted at projects with a high degree of maturity, which means that resources for the implementation of municipal projects are allocated as quickly as possible and jobs are started this year. We have achieved that more than 200 million will be directed to strengthen the economy this year as a whole. Our main priority in allocating funds has been to ensure that, during this period of economic turmoil, Latvia's inhabitants are already able to provide stable job opportunities in different areas, as well as to create new job projects, support entrepreneurs and, of course, improve the opportunities for the living environment and better services for citizens. . I am pleased to see the continuation of national and EU funds support programmes of nearly 270 mil next year.
EU funds are funded to improve energy efficiency in municipal buildings, as well as to create public infrastructure and promote business in regions. 22 projects for energy efficiency and renewable energy use will be implemented for a total of 15.2 mil J. EUR, (EU funds funding 8 million), while the implementation of six public infrastructure projects for a total of 5.9 million € (€4.4 million from EU funds) will create 103 new jobs and attract private investment of at least 8.9 milj. EUR.
Investments supported for the recycling of biodegradable waste (BNA) of almost 15 million EUR. These investments will contribute to an efficient waste farming region in the transition to a circular economy, where one of the directions in the coming years is to gradually introduce a BNA separate collection container at each municipal separate collection point. s. Eight projects in total for 29.7 million EUR are currently announced for funding in the open tender for project applications.
State loans for municipal investment projects, as well as the construction or expansion of local government kindergarten, contribute significantly to the improvement of the economic situation. State loan allows 290 investment projects to be launched this year in municipalities with a total investment of 130 milj. EUR (State loan - 96,2 million) . EUR) when implementing projects in the following areas: 1) energy efficiency measures for municipal buildings – rebuilding or renewal (47 projects) - energy efficiency improvement projects will have a positive impact on local government budgets, as the implementation of the projects will result in a reduction in municipal buildings maintenance costs; 2) local government transport infrastructure (streets, roads, traffic, parking lots, pedestrian pavements, smart solutions for traffic safety and organisation, etc. C. transport infrastructure) development (207 projects): these investments will also improve the reach of jobs and services, which are particularly relevant in the context of administrative territorial reform; 3) the development of new ways of providing local government services if one of the existing services is replaced by a new, non-contact or autonomous solution which reduces the need for face-to-face communication, such as information and communication technology solutions, safe provision of services (18 projects); 4) support measures to add people's real estate to the public service provider's centralised sewer and water networks to ensure that municipal households continue to connect to water networks (five projects) - at the same time, such support will also help to reach EU funds for water management projects (5) ensuring the functioning of educational establishments in accordance with hygiene requirements, if an opinion on non-compliance issued by the Health Inspectorate (13 projects) is issued.
Additional investments are also provided for the reduction of long kindergarten lines, which is a long-standing problem in many Latvian municipalities. . The granting of State loans to municipal investment projects for the construction of new pre-primary education institutions or for the extension of existing buildings supports 17 construction projects in 13 municipalities, which will provide new sites for 2565 children in municipal nursery schools.
On the other hand, the government's support for local government reform and the granting of additional funding to promote road construction during the crisis caused by Covid-19 allowed the immediate start of the development of the country's regional and local roads and, in cooperation with the Ministry of Transport, the possibility of repairing 166 kilometres of roads within the framework of the Administrative Territorial Reform.
Next year, VARAM continue our economic recovery efforts in the regions. The increase in total municipal borrowing in the state budget of 2021 is 268 mil. J. EUR 150 million more than initially forecast. The total increase is made up of €118 138 258 from EU funds and public loans for municipal investment projects of €150 million. It is also planned to continue providing loans for investment projects in the construction of pre-school education institutions. . The Cabinet has supported the offer for municipal loans for investment projects of educational institutions, as well as up to 400 thousand euro for the most important local government priority I. At the same time, local governments have a reduced share of the co-financing of the local government budget from 25% to 10% for investment projects of educational institutions, including pre-primary education institutions.
Other information:
Agnese Vārpiņa
Minister's Councillor for Communications and Public Relations
Ministry for Environmental Protection and Regional Development
Tel. 67026478
email: agnese.varpina@varam.gov.lv