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

 

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).

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