Investment and integrated strategies supporting townsRaivis BREMSMITS

Ministry of Environmental Protection and Regional Development of the Republic of Latvia

ESPON Seminar“Territories Acting for Economic

Growth:Using territorial evidence to meet

challenges towards 2020”

Inspire policy making by territorial evidence

Regional development disparities• Latvia has the 5th largest regional disparities in EU-28 (dispersion

of regional GDP per inhabitant in NUTS 3 regions)• Pronounced monocentric development tendencies – a need for

many centres

Population decrease 2009-2014

Unemployment level, 2014Number of companies per 1000 inhabitants, 2012

Personal income tax revenue in budgets of municipalities per

capita. 2013

ERDF priority “Polycentric development” 2007-2013

Activities• Growth of national and regional development centres

• Sustainable development of Riga

• Growth of amalgamated municipalities

55%

25%

8%12%

Transport infrastructure (incl. support for enterprises)Energy efficiency of public buildings

Education infrastructure

Culture infrastructure (incl. heritage& tourism)

Total funding: 323 M EUR

Daugavpils City Fortress infrastructure - improvement of streets and engineering

networks

Total funding – 5,11 M EUR,

incl. ERDF 4,68 M EUR

Valmiera business and innovation center project

Total funding – 1,53 M EUR, incl. ERDF 1,29 M EUR

Lessons learned

In order to tackle regional disparities more efficiently, there is a need for:

1. Concentration of funding thematically and territorially

2. Territorial programs have to be much more oriented towards investments in business infrastructure in order to promote entrepreneurial activity and increase the number of workplaces and thus address regional development challenges (less investments in leisure infrastructure)

Regulation on ERDF 2014-2020Article 7

• The ERDF shall support, within operational programs, sustainable urban development through strategies that set out integrated actions to tackle the economic, environmental, climate, demographic and social challenges affecting urban areas, while taking into account the need to promote urban- rural linkages.

• At least 5 % of the ERDF resources allocated at national level under the Investment for growth and jobs goal shall be allocated to integrated actions for sustainable urban development

• Taking into account its specific territorial situation, each Member State shall establish in its Partnership Agreement the principles for the selection of urban areas where integrated actions for sustainable urban development are to be implemented and an indicative allocation for those actions at national level.

Sustainable urban development 2014-2020

Polycentric development: 9+21

Balanced network of centres

• Latvia 2030 – Long term development strategy

• Defines balanced network of centres:• 9 national level

development centres (ITI)

• 21 regional level development centres

Urban development – ITI investments 2014-2020

Urban challenge Specific Objective ERDFincluding 9

cities

Economical and demographical

3.3.1. Attracting investments for regions 59 016 742 10 911 633

5.6.2. Revitalisation of deprived areas 236 524 372 92 138 673

8.1.2. Infrastructure for general education 138 389 313 30 000 000

8.1.3. Infrastructure for vocational education 89 068 648 66 801 486

Climate and environmental

4.2.2. Energy-efficiency of municipalities 31 393 658 15 696 829

5.6.2. Revitalisation of deprived areas 236 524 372 92 138 673

Social 9.3.1. Social services 41 241 194 15 300 000

9,6%

Integrated approach 2014-2020

• Integrated or complementary projects – a set of projects from several specific objectives, where investments and results are interrelated– Business projects - municipalities and entrepreneurs– Service projects – municipalities and state

• For these projects it is necessary to ensure synchronized project implementation:– Synchronized decision project proposals (evaluation of

projects is taking into account interrelatedness of investments )

– Synchronizes decision making time on project proposals

• Central element – Local development program

Private investments

Public investments

Equipment, technologiesBuilding or reconstruction of premises

Access roadsWater supply and sewerage, rainwater drainage system, heating system Power supply, gas supply

Trainings for empoyees

EXAMPLE

Local Development Program.

Integrated investments

Revitalization of territories, development of deprived areas

(Ministry of Regional Development)

Attracting

investments for

regions

(Ministry of Regional

Development)

Energy-efficiency of municipal buildings

(Ministry of Regional Development)

Needs analysis

Roads

(Ministry

of

Transpor

t)

Entrepreneurship(Ministry of Economy)

Rural development(Ministry of Agriculture)

Infrastructure of social services

(Ministry of Welfare)

Infrastructure

of general

education

(Ministry of

Education)

Infrastructure of vocational education(Ministry of Education)

Natural and cultural heritage(Ministry of Culture/Regional Development)Other invest-ments

Development ProgramInvestment Plan

Priority project ideas:1. Project idea2. Project idea3. Project idea

Alternative project ideas:1. Project idea2. Project idea

Regional Development Coordination Council

Cabinet of MinistersApproves:

• Indicators and funding (in total for each municipality regarding each SSO)

• Time frame of SSO implementation

Municipality

Municipal commission

Performs selection of project proposals:

• According to SSO terms• According to funding amount

approved by Cabinet of Ministers

VERIFICATION• According to Article 7 it is

verified if project selection has been performed in compliance with regulations and criteria of SSO

Approves or rejects project proposal

(after verification)

Drafts project proposal for SSO

Municipality

Implementation of Integrated Territorial Investments (ITI)

Thank you!

www.varam.gov.lv

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