Introduction 5 Chapter 1: a description of the organisational structure set up for the implementation of the Strategy 6



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Projects supporting the implementation of the EUSBSR in Latvia by Fund

ERDF

Main Priority Areas

ERDF amount, €

Number of projects

R&D

10 813 344.00

135

Innovation

34 459 569.38

196

Entrepreneurship

7 048 972.99

500

Education

51514 201.50

276

Health

28 302 478.61

66

Transport

99 996 325.90

175

ICT

22 390 527.44

155

Environment

26 127 707.84

176

Tourism

1 151 419.66

30

Energy

1 129 145.96

171

Total__282_933_693.29__1_880___Cohesion_Fund'>Total

282 933 693.29

1 880


Cohesion Fund

 


Main Priority Areas

CF amount, €

Number of projects

Transport

102 457 782.96

7

Energy

6 275 334.09

119

Environment

110 180 002.64

21

Total

218 913 119.68

147




3.1.5.2. Description of Operational Programme ''Entrepreneurship and Innovations'' – Convergence Objective – Whole National Territory

Programme Description

The total budget of the Programme is around €1.08 billion, the Community assistance through the ERDF amounting to €736.7 million (approximately 16% of the total EU money invested in Latvia under cohesion policy 2007-13).

The OP aims to make considerable progress in science, innovation and entrepreneurship. It contributes to the use of knowledge and innovation, high value-added production, and enhanced export capacity for existing enterprises, as well as encouraging the formation of new knowledge-based and technology-intensive enterprises.

Contribution to the EUSBSR

Three priorities of the OP are linked in with the Baltic Sea Strategy: Priority 1: Science and Innovation (60% of the OP resources), Priority 2: Access to Finance (23% of OP resources), and Priority 3: Promotion of Entrepreneurship (14% of the OP resources).


Tables and figures


 

 


EU Contribution to the OP

 

Total Contribution to the OP (€)1

Allocated amount (€)1

Committed amount

by March 2011 (€)



Committed amount by March 2011 (%)2

Remaining amount by March 2011 (€)

Contribution to EUSBSR by March 2011 (€)2

OP ''Entrepreneurship and Innovations''

1 084 088 177

736 730 950

426 781 737

64.5

261 384 077

412 298 945 (96.6%)



Priority 1: Science and Innovation

708 999 804

466 042 000

185 850 536

41.1

280 191 464

185 850 536

Priority 2: Access to Finance

216 595 882

168 170 000

168 170 000

100.0

0

168 170 000

Priority 3: Promotion of Entrepreneurship

128 446 667

76 980 000

58 278 409

75.7

18 701 591

58 278 409

Priority 4: Technical assistance

30 045 824

25 538 950

14 482 792

63.0



11 056 158

0

To contribute to the objectives of the EUSBSR Priority 7 ''To exploit the full potential of the Region in research and innovation" – the OP plans to promote entrepreneurship with higher value added by providing aid in developing and producing new products and technologies, and ensuring highly-qualified human resources in enterprises, and cooperation of the research and business sectors.

For instance, within the activity of the OP “Competence Centres", five projects have been approved. Implementation of the activity will start in the first quarter of 2011. It is important to point out that competence centre activity is very significant as it is the first attempt by a project of such a large scale to bring together different industry partners and scientific partners. Among the approved competence centres, there are companies from sectors like chemistry, wood processing, metal processing, electrical engineering and space technologies. Approved competence centres within the Programme will conduct industrial research and experimental development in areas currently important for the whole industry in Latvia and worldwide. It is expected that this collaboration will result in new high added value products and technologies.

Concerning the activity “Development of new products and technologies", one of the successes within this activity is the pharmaceutical company JSC “Grindeks" which is conducting industrial research. Using the knowledge base gained, it will conduct experimental development to create new medicines. To carry out research, high level specialists are involved.

In order to contribute to objectives of the EUSBSR Priority 8 ''Implementing the Small Business Act; to promote entrepreneurship, strengthen SMEs and increase the efficient use of human resources'', the OP plans to promote economic activity and enhance competitiveness by setting up new enterprises and strengthening existing enterprises. There are further plans to facilitate access to financial resources to enhance business development, at the same time reducing the negative effects of direct state aid on market competition and achieving a more efficient use of state aid assets by exploiting them repeatedly for business development or applying a multiplier. Under the activity “Business incubators", the creative incubator in Riga can be considered particularly successful. The support from EU funds is provided to micro and small enterprises established in Latvia. Nevertheless, these small enterprises are usually involved in international networks. There are around 40 small enterprises in the incubator at the moment.

3.1.5.3. Description of Operational Programme ''Infrastructure and Services'' – Convergence Objective – Whole National Territory

Programme Description

The total budget of the Programme is around €4 billion and includes Community funding through the ERDF and CF amounting to €3.2 billion (approximately 70% of the total EU money invested in Latvia under cohesion policy 2007-13).

The OP 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 OP aims to ensure sufficient infrastructure and public services combined with a competitive business environment.

Contribution to the EUSBSR

Six priorities of the OP are in line with the EUSBSR: Priority 1: Infrastructure for Strengthening Human Capital (15.0% of the OP resources); Priority 2: Promotion of Territorial Accessibility (14.9% of the OP resources); Priority 3: Development of a Transport Network of European Significance and Promotion of Sustainable Transport (25.0% of the OP resources); Priority 4: Quality Living and Business Environment (11.3% of the OP resources); Priority 5: Promotion of Environmental Infrastructure and Environmentally-Friendly Energy (24.0% of the OP resources); Priority 6: Polycentric Development (7.7% of the OP resources).

Priorities of the OP that give the largest financial contribution to the EUSBSR are transport and environment, with €202 454 107 and 110 180 002 respectively.

The transport priority makes a substantial contribution to the EUSBSR Priority Area 11 "To improve internal and external transport links", while the environment priority is linked with the EUSBSR Priority Areas 1 "To reduce nutrient inputs to the sea to acceptable levels", 2 "To preserve natural zones and biodiversity, including fisheries", and 3 "To reduce the use and impact of hazardous substances".

The OP “Infrastructure and Services” aims at improving the transport sector by fostering the development of high-quality, safe transport infrastructure integrated in the common transport system of Eurasia that would facilitate national economic growth, accessibility of the country as a whole and also its separate areas, as well as development of environmentally sustainable transport systems.

For the preservation of the quality of the environment, the OP proposes to use natural resources rationally and reduce environmental pollution respecting the “polluter pays” principle, in order to protect the health of society and ensure sustainable development. Meeting the requirements and objectives of the EU legislation pertaining to environment protection, rehabilitation of contaminated sites and prevention of environmental risk, will not only make individual parts of the country’s territories more attractive to investors and visitors but also guarantee residents the required quality of life.

It is planned also to improve the quality of the health care service in order to enhance efficient medical treatment processes, optimise the number and location of health care providers, and perform medical treatment of higher quality, thus ensuring a faster return of the workforce to the labour market.

The OP “Infrastructure and Services” also adds to the education priority, fostering the efficient use of human capital as the most substantial resource in the Latvian economy, increasing competitiveness and employment indicators by improving infrastructure and equipment in education systems and by providing higher quality services to society.

To improve the energy sector and to contribute to the objectives of the EUSBSR Priority Areas 5 “To mitigate and adapt to climate change” and 10 “To improve the access to, and the efficiency and security of the energy markets”, the OP plans to promote efficient heating systems by renovating district heating or combined heat and power facilities, promote energy-efficient housing in the residential sector and public buildings, and increase the usage of renewable energies.

It is planned to promote the development of an information society and knowledge-based economy, including improving the efficiency of the Public Administration, to facilitate the development of e-services, information systems and integration, to promote accessibility of information and services by facilitation of accessibility to Internet and broadband network infrastructure, thus increasing the general population’s opportunity to participate in different social processes, so as to improve the ICT sector and to contribute to the objectives of the EUSBSR Priority Area 11 “To improve internal and external transport links” within the OP “Infrastructure and Services”.

The OP contributes to the objectives of the EUSBSR Priority Area 12 “To maintain and reinforce the attractiveness of the Baltic Sea Region in particular through education and youth, tourism, culture and health” and to the improvement of the tourism sector, fostering competitiveness and creating favourable conditions for complex development of tourism products and services.

Tables and figures





EU Contribution to the OP




Total Contribution to the OP (in €)3

Allocated amount (in €)3

Committed amount

by March 2011 (in €)



Committed amount by March 2011 (%)4

Remaining amount by March 2011 (in €)

Contribution to the EUSBSR by March 2011 (in €)4

OP ''Infrastructure and Services''

3 888 137 104

3 210 612 967

2 451 842 585

76.4

758 770 382

2 366 938 948

Priority 1: Human Capital

589 847 095

504 623 236

416 131 944

82.5

88 491 292

368 845 881

Priority 2: Territorial Accessibility

572 060 939

511 190 662

379 997 460

74.3

131 193 202

379 997 460

Priority 3: Sustainable Transport

1 008 195 825

856 966 451

824 562 379

96.2

32 404 072

824 562 379

Priority 4: Env for Life and Eco Activity

424 353 751

322 906 364

143 489 449

44.4

179 416 915

143 489 449

Priority 5: Env Infrastructure Friendly Energy

900 921 086

670 610 102

450 345 379

67.2

220 264 723

450 345 379

Priority 6: Polycentric Devt

322 948 363

274 506 107

199 698 400

72.7

74 807 707

199 698 400

Priority 7: TA ERDF

57 610 045

57 610 045

33 002 933

57.3

24 607 112

0

Priority 8: TA of CF

12 200 000

12 200 000

4 614 641

0

7 585 359

0


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