Latvia’s case study:

2014–2020 planning period

Partnership agreement & Operational program

«Growth and Employment»

Armands Eberhards

Deputy State Secretary, Ministry of Finance

Head of Managing Authority

Zagreb 19.09.2013

Content

2

Architecture- EU funds programming

documents in Latvia

3

Baltāgramata

CPP

CSRCOM

guidelines

Sources :

4

NRP

ES 2020 Digital Europa

Resource effective Europa

NAP 2020

Single, clear, NDP 2020 based Latvia’s National position

PartneriMinistrija

s

Sector Strategies

Operational Programme

«Growth and Employment»

Priorities

5

6

Indicative allocation of EU funds (ESF,

ERDF, CF) financing by

thematic objectives

7

Indicative allocation of EU funds (ESF,

ERDF, CF) financing by

priority axis

8

Allocation of EU funds (ESF, ERDF, CF)

financing in both programming periods

9

Research, technological development and

innovation I

Gap:

•A small number of employed in science and research, insufficient number

of up-to-date equipped laboratories, weak commercialization potential of

research results, poor cooperation between scientific and industrial sectors

Support:

•Increase investments in R&D by facilitating private investments and

cooperation between research institutions and enterprises (knowledge-

intensive products and commercialization of research results)

•Promote innovation in enterprises, development of new products and

technologies, technology transfer and competitiveness

10

Research, technological development and

innovation II

Funding (M, EUR) ERDF

Thematic

objective

1. Strengthening research, technological development and

innovation 324.95

Investment

priorities

1.1. enhancing research and innovation infrastructure (R&I)

and capacities to develop R&I excellence and promoting

centres of competence, in particular those of European interest

200.77

1.2. promoting business R&I investment, product and

service development, technology transfer, social

innovation and public service applications, demand

stimulation, networking, clusters and open innovation through smart specialisation;

35.97

1.3. supporting technological and applied research, pilot

lines, early product validation actions, advanced

manufacturing capabilities and first production in

Key Enabling Technologies and diffusion of general purpose technologies

88.22

11

ICT, e-government and services I

Identified needs/weeknesses:

•Lack of options for high-quality Internet connections

•Narrow range and poor quality of e-services

Planned support:

•Provide an option to subscribe high-quality internet connection with

suffiecient download speed and access services with higher

download speed

•Develop new e-services and imporve the existing ones

•Improve the functionality of an electronic information exchange

between different state information systems and publicly available

resources

12

ICT, e-government and services II

Funding (M, EUR) ERDF

Thematic

objective

2. enhancing access to, and use and quality of,

information and communication technologies216.65

Investment

priorities

2.1. extending broadband deployment and the roll-out of

high-speed networks44.11

2.2. developing ICT products and services, e-commerce

and enhancing demand for

ICT

172.54

13

SME competitiveness I

Gap:

•Limited access to finance for enterprises

•Economy of low value-added products and services

•Low productivity

•Insufficient supply of tourism products in high value-added segment that reduces the

seasonality

•Unsupportive business environment

Support:

•Facilitate cooperation and knowledge transfer

•Facilitate the increase of demand for innovation and innovation capacity of enterprises

•Ensuring access to finance

•Creating a supportive environment for business development, by simplifying the

administrative requirements for entrepreneurs and un improving court system efficiency

14

SME competitiveness II

Funding (M, EUR)ERDF

Thematic

objective

3. Enhancing the competitiveness of small and medium-

sized enterprises348.75

Investment

priorities

3.1. promoting entrepreneurship, in particular by

facilitating the economic exploitation of new ideas and

fostering the creation of new firms

95.33

3.2. developing new business models for SMEs, in

particular for internationalization66.23

3.3. supporting the creation and the extension of advanced

capacities for product and service development187.18

Thematic

objective

11.Enchancing institutional capacity and an efficient

public administration

ESF

18.06

15

Energy efficiency I

Identified needs/weaknesses:

•Big proportion of low and insufficient energy efficiency of living buildings,

widespread environmentally unfriendly forms of heating

•Low energy efficiency impacts the final prices of products and reduces

competiveness of manufacturing and construction business

Planned support:

• Reduction of thermal energy losses in transmission and distribution

systems, reconstructing existing systems and constructing new

systems; increasing efficiency of thermal energy production plants and

foster the use of local and renewable energy resources in centralized

district heating

16

Energy efficiency II

Funding (M, EUR) ERDF CF

Thematic

objective

4. Supporting the shift towards a low-

carbon economy in all sectors270.60 106.72

Investment

priorities

4.1. promoting the production and distribution

of renewable energy sources0 106.72

4.2. promoting energy efficiency and

renewable energy use in SMEs35.65 0

4.4. supporting energy efficiency and

renewable energy use in public

infrastructures and in the housing sector237.95 0

17

Environmental protection and promoting

resource efficiency I

Identified needs/weaknesses:

•Large amount of biodegradable content of waste in landfills with

household waste, poor quality of drinking water, wastewater collection and

disposal, out of date water treatment plants

•Lack of operational information on environmental quality, high flood risk

Planned support:

•Development and support for modernization of drinking water and

wastewater infrastructure

•Implementation of environmental monitoring program

•Support for measures to address the threat of floods, providing protection

against floods to infrastructure and other important objects that can cause

contamination of the environment,

18

Environmental protection and promoting

resource efficiency II

Funding (M, EUR) ERDF

Thematic

objective

5. Promoting climate change adaptation, risk

prevention and management81.87

Investment

priorities

5.2. Promoting climate change adaption, promoting

investment to address specific risks, ensuring disaster

resilience and developing disaster management systems81.87

19

Environmental protection and promoting

resource efficiency III

Funding (M, EUR) ERDF CF

Thematic

objective

6. Protecting the environment and promoting

resource efficiency21.49 153.39

Investment

priorities

6.1. addressing the significant needs for

investment in the waste sector to meet the

requirements of the environmental acquis

0 32.44

6.2. addressing the significant needs for

investment in the water sector to meet the

requirements of the environmental acquis

0 120.94

6.4. protecting biodiversity, soil protection and

promoting ecosystem services

including NATURA 2000 and green

infrastructures

21.49 0

20

Development of sustainable transport I

Identified needs/weaknesses:

•Latvia has the second lowest quality of roads in Eastern Europe, which have a

negative impact on international transport networks and significantly restricts

the mobility of the population.

•The poor condition of the road negatively affects the country's

competitiveness, industrial policy and encourages greater cracks of regional

development and income inequality

•Average rail infrastructure quality over the Eastern and Central European,

further electrification of the network is needed in order to ensure sustainability.

•Fragmented Riga trunk road network, a large load of incoming transport

Planned support:

•Support for road infrastructure improvement and development

•Support for port and airport "Riga" for infrastructure development

•Support rail network improvements

21

Development of sustainable transport II

Funding (M, EUR) ERDF CF

Thematic

objective

7. Promoting sustainable transport and removing

bottlenecks in key network

infrastructures

246.3 1 112.06

Investment

priorities

7.1. supporting a multimodal Single European

Transport Area by investing in the

Trans-European Transport Network (TEN-T) network

0 637.18

7.2. developing environment-friendly and low-carbon

transport systems and

promoting sustainable urban mobility

9.25 0

7.3. developing comprehensive, high quality and

interoperable railway system0 474.88

7.4. enhancing regional mobility through connecting

secondary and tertiary nodes

to TEN-T infrastructure

237.05 0

22

Employment, labour mobility and social

inclusion I

Obstacles/bottle-necks:

•High unemployment rate, incompliance with employment market

requirements

•Low level of social inclusion, inappropriate accessibility to services

Planned support:

•Promoting of employment, motivation of the unemployed

•Youth employment measures

•Improvement of social services and accessibility, integration into

society

23

Employment, labour mobility and social

inclusion II

Funding (M, EUR) ESF

Thematic

Objective

8. Promoting employment and supporting labour

mobility121.40

Investment

Priorities

8.4. Access to employment for job-seekers and inactive

people, including local employment initiatives and support

for labour mobility;

94.40

8.5. Sustainable integration into the labour market of young

people (aged 15-24) not in employment, education or

training, in particular in the context of the Youth Guarantee

27.00

24

Employment, labour mobility and social

inclusion III

Funding (M, EUR) ESF ERAF

Thematic

Objective

9. Promoting social inclusion and combating

poverty214.82 193.97

Investment

Priorities

9.1. investing in health and social infrastructure

which contribute to national,

regional and local development, reducing

inequalities in terms of health status,

and transition from institutional to community-

based services;

0 193.97

9.4. Active inclusion 108.03 0

9.7. Enhancing access to affordable, sustainable

and high-quality

services, including health care and social services

of generalinterest;

106.78 0

25

Education, skills and lifelong learning I

Obstacles/bottle-necks:

•Obsolete and incomplete material and technical basis in education

institutions

•Inadequacy of education programs to specific needs of local labour market

needs in regions

•Insufficient capacity of academic and scientific staff

Planned support:

•Improvement of the quality of education programs and improvement of

teachers’ competence •Modernization and improvement of material and technical basis and in

education institutions

•Involvement of young scientists and specialists

•Lifelong learning

26

Education, skills and lifelong learning II

Funding (M, EUR) ESF ERAF

Thematic

Objective

10. Investing in education, skills and life-long

learning240.32 248.22

Investment

Priorities

10.1. investing in education, skills and lifelong learning

by developing education and training infrastructure0 248.22

10.2. Reducing early school-leaving and promoting

equal access to good quality early-childhood, primary

and secondary education

96.29 0

10.3. Improving the quality, efficiency and openness of

tertiary and equivalent education with a view to

increasing participation and attainment levels

56.66 0

10.4. Enhancing access to lifelong learning, upgrading

the skills and competences of the workforce and

increasing the labour market relevance of education

and training systems

87.38 0

27

Urban development I

Objective: sustainable integrated urban development planned investments

to promote economic activity in the regions, the development of

industrial zones and other areas relevant to the development of business

infrastructure for national and regional development centers, including

dealing with industrial zones and other areas relevant to the development

of business infrastructure needs in an integrated manner, by taking into

account local priorities in development programs, as well as to promote

competitiveness by development of a national important cultural and sports

infrastructure and public transport in Riga city.

28

Urban development II

Planned support:

Support is planned for industrial zones and other areas relevant to the

development of business infrastructure, creating conditions for business

development and attraction of investors to impose a positive impact on job

retention and reduction of greenhouse gas effect and prevent tax increases.

Support is also planned to improve international reputation of Riga and boost

competitiveness, as well as development of the Riga cultural

infrastructure of national significance, reconstructing existing objects and

developing new objects in order to provide an opportunity to organize a large-

scale (including international) events in order to diverse cultural offerings,

making emphasis on excellence. Developing urban public transport,

focusing on the development of the living environment that will promote the

interest of developers, by improving the operating conditions, as well as the

periphery of the residents of mobility without private cars.

Urban development III

29

Thematic objective Investment prioritiesFunding (M, EUR)

ERDF CF

Priority axis total 373.22 108.85

3. enhancing the

competitiveness of small

and medium-sized

enterprises

3.3. supporting of capacity-building

in the creation and expansion of

product and service development252.28

6. protecting the

environment and promoting

resource efficiency

6.6. protection, promotion and

development of the cultural heritage 120.94

7. promoting sustainable

transport and removing

bottlenecks in key network

infrastructures

7.2. developing environment-

friendly and low-carbon transport

systems and promoting sustainable

urban mobility

108.85

Indicator system and performance

framework

30

Further work on indicator system to introduce results oriented

approach

•National guidelines laying down principles for setting the

indicators

•Checklist to assure common approach for setting the

indicators

Progress of ex-ante conditionalities (II)

31

1 2 3 4 5 6 7 8 9 10 11 12

1.1. Research and innovation (strategy) Unfulfilled November 1

1.2.Research and innovation (multi-annual plan for budgeting)Unfulfilled November 1

2.1. digital growth Partially fulfilled

4.1. Energy efficiency Partially fulfilled

5.1. Risk prevention and risk management Unfulfilled July 1

6.2. Water sector Partially fulfilled

7.1. Road Unfulfilled

7.2. Railway Unfulfilled

9.1. Early school leaving Unfulfilled

9.2. Higher education Unfulfilled

9.3. Lifelong learning Unfulfilled

10.1. Active inclusion Partially fulfilled

10.3. Health Partially fulfilled

7. Statistical systems and result indicators Unfulfilled December 31

June 30

Ex ante conditionality Progress Partially

fulfilled/ Unfulfilled

2013

1. Thematic and general unfulfilleda and partially fulfilled ex ante conditionalities

June 30

June 30

December 31

September 30

June 30

June 30

July 1

July 1

July 1

Progress of ex-ante conditionalties

32

Lessons Learned and Next Steps

33

Indicative financial flows

34

35

Elements of OP to be improved

• Performance framework

• Intervention categories

• Financial plan

• Selection of institutions

• Coordination between funds

• Reduction of administrative burden for beneficiaries

• Ex-ante conditionalities

• Ex-ante evaluation (including SEA)

Outline recommendations for beneficiaries

36

•Consider empirical experience from ESF 2007.-2013.

programs- good practice and failures

•Discuss planning documents with project ideas in mind

•Strongly consider State Aid issues at earliest possible

stage

•Discuss with potential cooperation partners and

beneficiaries

•ESF - neither panacea, nor placebo, but expensive

taxpayers‘ money for investments

Streamlined administrative procedures

37

• Planning process (Thematic concentration)

• 1 OP

• Result based allocation of funds

• Active partnership process to improve BATNA

• Lesser activities and objectives

• Coordinated interventions on Site

• Administrative burden

• E – governance

• Clear allocation of roles and responsibilities

• Clear and unison principles in relation to clients

• Single IB - CFLA

• Legal Framework

• Based on 2007/2013 principles and best practice

• Lesser CoM Regulations

38

Frontloaded activities in 2014:

Progress & process - time schedule

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Thank you for attention!

More information:

www.esfondi.lv

www.fm.gov.lv

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