A new EU funding planning period began in 2021 and will run until 2027. Businesses registered in Latvia have access to support from EU funds and other financial instruments at both national and European levels.
Procedures for awarding and using support
National-level project selection processes in Latvia are primarily organised by three institutions: the Central Finance and Contracting Agency, the Investment and Development Agency of Latvia, and the joint-stock company Attīstības finanšu institūcija Altum. Meanwhile, EU-level programmes and support instruments are managed by a much larger number of diverse institutions, such as the European Climate, Infrastructure and Environment Executive Agency (CINEA) and the European Investment Bank.
In this planning period, support will primarily be directed towards energy efficiency, the development of digital skills, and the digitisation of business processes. Support is divided into various types and formats of programmes and financial instruments. In Latvia, there are up to ten national programmes that may be of general interest to businesses, but at the European level, the number of potentially suitable programmes runs into the dozens. Below are some examples of current programmes administered at the national and European levels.
Altum is currently actively implementing a support programme aimed at promoting increased energy efficiency in companies. The first round of the programme has already closed, but a new round, which will be open for applications, will be announced soon.
The programme supports investments in various groups of fixed assets:
Energy production from renewable resources;
Improvement of the energy efficiency of production equipment;
Reconstruction of heating and cooling systems;
Purchase of zero-emission M1 category vehicles;
Reconstruction of non-residential buildings or production areas;
Other activities related to improving energy efficiency.
Financial support is offered as a loan with a capital discount. The maximum discount is EUR 1.5 million or 30% of the project's eligible costs.
At the EU level, support is available via the Connecting Europe Facility (Connecting Europe Facility), for which both public and private sector legal entities can qualify for the modernisation of transport infrastructure, the strengthening of energy systems, and the implementation of alternative fuels/promotion of transport decarbonisation. Various support intensities are provided for the programmes and the activities they include, ranging from 30% to 50% (the proportion of the grant from the total amount of eligible investments in the project).
For larger investment projects, support from International Financial Institutions (IFIs) is also available in the form of loans, equity, or mezzanine financing. Each IFI supports projects that meet their set goals, such as green energy, innovation, and human capital. IFIs also offer technical support aimed at developing initial documentation for ambitious projects with an investment plan of at least EUR 25 million, such as a business plan or a feasibility study.
Given the wide range of available programmes and instruments, as well as the fact that support is often awarded on a first-come, first-served basis, businesses need to actively and regularly monitor the programmes that interest them. More precise information can also often be obtained through communication with the bodies overseeing the programmes.
If necessary, PwC can assist throughout the entire process of identifying and securing funding, including:
Monitoring and evaluation of national and European-level EU funds and other financial instruments (identifying programmes or instruments suitable for a company's strategic goals, preparing regular reports, and conducting more detailed research into the most relevant programmes);
Consultation on the preparation of project applications and the necessary documentation (participating in coordinating relevant documents with the responsible institutions, assessing the quality of project applications, and improving project applications).