Riga, 18 March 2021 - The Ministry of Environmental Protection and Regional Development hassubmitted to the Cabinet for consideration the draft order “On the supported local government investment projects for the granting of State loans for the mitigation and prevention of the consequences of the crisis caused by Covid-19” to grant the State loan to the local government investment projects submitted for the assessment of project applications for the first round, namely by 1 March this year.
Minister Artur Toms Plešs: "In the first round of investment project applications, the commission has supported investment projects that are high-readiness and which will provide an opportunity for many Latvian municipalities to receive support to implement projects that strengthen the economy in the current circumstances, including providing support to entrepreneurs in order to be able to preserve existing jobs and also create new jobs. jobs, thereby promoting employment in the regions of Latvia."
A total of 67 investment project applications from 25 municipalities were received during the first project application cycle. 60 investment projects were supported, with total funding of nearly 27 mil. of which the loan amounts to approximately 22,5 million euro euro.
Of the 60 projects supported in the first round, the most popular objective is the development of transport infrastructure.
Transport infrastructures (streets, roads, miles, pedestrian walkways, smart solutions for road safety and organisation, and civil communications and parking areas, if they relate to the street or road included in the investment project concerned, etc. . C.
- transport infrastructure) development - 46 projects from 21 municipalities;
- energy efficiency measures for local government buildings (rebuilding or renewal) - 2 projects from 2 municipalities;
- construction or conversion of bridges, transmissions and estacades belonging to the infrastructure of the local government's road and street complex - 1 project from 1 municipality;
- 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 contact – 1 project from 1 municipality;
- establishment of rental apartments in buildings owned by local governments outside the Riga Planning Region, performing renovation or renovation of buildings and premises - 3 projects from 1 municipality;
- completion of investment projects launched by local governments in 2021, the total amount of which has been carried out by the end of 2020 at least 50% of the total amount of planned works – 3 projects from 3 municipalities;
- development of building projects for projects the implementation of which is planned from European Union funds and other foreign financial assistance funds or from other financial means - 4 projects from 1 local government.
A total of €150 million will be available for municipal projects in this loan program this year. . The possibility of receiving a State loan, similar to one year ago, will also be this year for investment projects: energy efficiency of municipal buildings; development of local government transport infrastructure; development of new forms of provision of local government services; provision of household connections for water management; provision of hygiene requirements in a pre-school education institution s. In order to contribute to the recovery of the economy from the crisis caused by the Covid-19 pandemic, WE MAY have extended the possibility for municipalities to borrow funds for investment projects, and this year the loan programme has been supplemented with the possibility of submitting investment projects: adapting local government buildings to provide local government services; creating rental apartments outside the planning region of Riga through the renovation of buildings and premises owned by the municipality. rehabilitation or renewal for this purpose; the rehabilitation, reconstruction or installation of the infrastructure of the local government's amelioration system; the development of building projects for significant and large investment projects, as well as the completion of investment projects launched by local governments. . Similarly, in order to reduce the extensive distribution of Covid19, the programme includes A proposal for municipalities to receive a State loan for the refurbishment or adaptation of social care centres in accordance with hygiene and safety requirements.
When applying for a State loan, municipalities should take into account that the amount of the investment project loan cannot exceed 70% of the total costs, and local governments should provide co-financing of not less than 15%.
An important criterion for getting a loan is the project's high maturity, as loan-received projects will have to be completed by the end of 2022. . THE first project applications HAD to be submitted by 1 March and the submission of such projects was scheduled by the first date of each month, but no later than 1 November of this year.
According to Minister Plešs, the national lending programme for reducing the impact of Covid19 on the economy was already in place last year and had a good outcome and a strong response from municipalities. Last year, the state loan granted to municipalities in the program was 99.6 mil J. EUR, and a total of 307 road tracking, energy efficiency improvements and other investment projects.
Information prepared by
Agnese Vārpina
Minister's advisor for communication and public relations
Ministry of Environmental Protection and Regional Development
67026478; e-mail: agnese.varpina@varam.gov.lv
www.varam.gov.lv