Operational Programme 'Infrastructure and Services'

Programme under the Convergence Objective, co-financed by the European Regional Development Fund (ERDF) and the Cohesion Fund

Latvia

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On 10 December 2007, the European Commission approved a development programme entitled "Infrastructure and Services” for Latvia for the period 2007-2013. The Programme involves Community support for the entire country under the Convergence Objective. The total budget of the Programme is approximately €3.8 billion and includes Community funding through the European Regional Development Fund (ERDF) and Cohesion Fund amounting to some €3.2 billion (approximately 70% of the total EU money invested in Latvia under Cohesion Policy 2007-2013).

1. Aim and purpose of the programme

The Programme aims to promote the accessibility and attractiveness of the country for both entrepreneurs and citizens in Latvia, and ensure sustainable development and progress towards a knowledge-based economy. Efforts will also focus on providing quality education as well as a quality working and living environment. In terms of economic development, the Programme aims to ensure sufficient infrastructure and public services combined with a competitive business environment.

2. Expected impact of investments

The investments are expected to result in continued Gross Domestic Product (GDP) growth of 6-8% annually, an unemployment rate reduced to below 6% and an employment rate increased to more than 70%. Other impacts expected include reduced energy consumption, improved education, enhanced research, better health and transport infrastructure, and increased productivity of public and private institutions.

3. Priorities

The Operational Programme is structured along the following priorities:

Priority 1: Infrastructure for Strengthening Human Capital [approximately 15.0% of total funding]

This priority is financed by the ERDF and is focused on providing modern and high quality services in the fields of education, employment, social services and health care by targeting support at improving infrastructure and equipment.

Priority 2: Promotion of Territorial Accessibility [approximately 14.9% of total funding]

This priority is financed by the ERDF and is focused on accessibility in different parts of the country as well as services provided to citizens. It will also develop information and communication technologies (ICT), including the introduction of electronic administration and improvements to regional transport connections.

Priority 3: Development of a Transport Network of European Significance and Promotion of Sustainable Transport [approximately 25.0% of total funding]

This priority is financed by the Cohesion Fund and focuses on enhancing accessibility to the country by improving the transport infrastructure and promoting the development of an environmentally-friendly transport system.

Priority 4: Quality Living and Business Environment [approximately 11.3% of total funding]

This priority is financed by the ERDF and focuses on establishing suitable conditions for business activity and improving quality of life indicators in different parts of the country. This will be achieved by investing in environmental infrastructure and services, the preservation of natural and historical heritage and the development of tourism products.

Priority 5: Promotion of Environmental Infrastructure and Environmentally-Friendly Energy [approximately 24.0% of total funding]

This priority is financed by the Cohesion Fund and is focused on establishing environmentally-friendly conditions for development. This will be achieved by improving the environmental infrastructure and increasing energy efficiency and the use of renewable resources through the supply of centralised heat supply services.

Priority 6: Polycentric Development [approximately 7.7% of total funding]

This priority is financed by the ERDF and is focused on promoting the potential of cities/towns as a driving force of regional development.

Priority 7: Technical Assistance for Implementation of the ERDF [approximately 1.7% of total funding]

This priority is co-financed by the ERDF and will ensure that all fund management functions are provided.

Priority 8: Technical Assistance for Implementation of the CF [approximately 0.4% of total funding]

This priority is co-financed by the ERDF and will ensure that all fund management functions are provided.

Financial and Technical information

Operational Programme 'Infrastructure and Services'

Intervention Type

Operational Programme

CCI no

2007LV161PO002

Number of decision

C/2007/6381 + C/2010/6673

Final approval date

10/12/2007

Breakdown of finances by priority axis

Priority Axis EU Investment National Public Contribution Total Public Contribution
Infrastructure for Strengthening Human Capital 504 623 236 54 356 421 603 239 078
Promotion of Territorial Accessibility 511 190 662 53 072 250 564 262 912
Development of Transport Network of European Significance and Promotion of Sustainable Transport 856 966 451 62 506 853 919 473 304
Quality Living and Business Environment 322 906 364 47 687 962 370 594 326
Promotion of Environmental Infrastructure and Environmentally Friendly Energy 670 610 102 44 892 715 715 502 817
Polycentric Development 274 506 107 48 442 256 322 948 363
Technical Assistance ERDF 57 610 045 0 57 610 045
Technical Assistance CF 12 200 000 0 12 200 000
Total 3 210 612 967 310 958 457 3 565 830 845