Riga, September 15, 2020 – Within the framework of the economic support plan led by the Minister of Environmental Protection and Regional Development Juris Pūce, the Ministry submitted to the Cabinet of Ministers a draft order “On supported municipal investment projects for granting state loans to reduce and prevent the impact of Covid-19 ”To grant a state loan to those municipal investment projects submitted in the fourth round of project application evaluation by 1 September 2020.
Minister Juris Pūce: “This is the fourth round of investment project applications, which provides an opportunity for many Latvian municipalities to receive support to implement projects that strengthen the economy in the current circumstances, including providing employment to a large part of the Latvian population.”
In the fourth project application round, a total of 43 project applications were received from 27 municipalities. 24 project applications were supported for the total amount of EUR 5,712,941.61, of which EUR 4,282,572.29 is a state loan. Areas in which municipalities were able to submit projects for support are the development of transport infrastructure – the largest share of supported projects, increase of energy efficiency of buildings, connection of residential real estate to centralized sewerage and water supply networks, provision of educational institutions in accordance with hygiene requirements, and development of such municipal services. , which reduces the need for face – to – face communication, such as contactless solutions.
In total, 261 project applications have already been prepared for the availability of funding and supported by the Cabinet of Ministers during the four months of this year, which have been submitted by local governments for a total of 121.6 million lats. EUR, of which the state loan is 90 mln. EUR. The projects will be implemented until December 31, 2020.
When applying for a state budget loan, it must be taken into account that the loan amount of the investment project may not exceed 75% of the total costs, and local governments must provide co-financing of not less than 25%. 19 project applications were rejected, the main reasons for rejection are non-compliance with financial criteria, lack of coordination of the development center, as well as incomplete technical project development – no construction project has been developed and accepted by the Construction Board, etc.
The submitted municipal investment projects were evaluated by a commission consisting of representatives of the Ministry of Environmental Protection and Regional Development, the Ministry of Transport, the Ministry of Economics, the Ministry of Agriculture and the Ministry of Finance.
On 14 July 2020, Cabinet Regulation No. 456 * was adopted to support local governments in an emergency situation related to the spread of Covid-19, which determines the conditions and procedures for issuing state budget loans to local governments to reduce and prevent the impact of the emergency situation. whose implementation will start in 2020.
The municipal loan program is only one part of Minister Pūce’s economic recovery plan, which provides for a socially, economically and environmentally responsible restructuring of initially planned investments to ensure that available funding is directed to mitigating the effects of COVID-19 on the economy, including job creation. population
* Cabinet of Ministers Regulations No. 456 replaces Cabinet Regulation No. 278 “Regulations on the Conditions and Procedures for Issuing State Loans to Municipalities for Mitigation and Prevention of the Impact of the Emergency Situation Related to the Spread of Covid-19”, according to which state loans to municipalities have already been granted in the previous two rounds.