Inspire policy making by territorial evidence ESPON Seminar “Territories Acting for Economic Growth: Using territorial evidence to meet challenges towards 2020”

Investment and integrated strategies supporting towns

Raivis BREMSMITS

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

• •

Regional development disparities

Latvia has the 5 th 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 Number of companies per 1000 inhabitants, 2012 Unemployment level, 2014 Personal income tax revenue in budgets of municipalities per capita. 2013 Population decrease 2009-2014

ERDF priority “Polycentric development” 2007-2013 Activities

• • • Growth of national and regional development centres Sustainable development of Riga Growth of amalgamated municipalities

Total funding: 323 M EUR 8% 12% 55% 25%

Transport infrastructure (incl. support for enterprises) Energy efficiency of public buildings Education infrastructure Culture infrastructure (incl. heritage& tourism)

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)

Sustainable urban development 2014-2020

Regulation on ERDF 2014-2020 Article 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.

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 Economical and demographical Climate and environmental Social Specific Objective 3.3.1. Attracting investments for regions 5.6.2. Revitalisation of deprived areas 8.1.2. Infrastructure for general education 8.1.3. Infrastructure for vocational education 4.2.2. Energy-efficiency of municipalities 5.6.2. Revitalisation of deprived areas 9.3.1. Social services ERDF

59 016 742 236 524 372 138 389 313 89 068 648 31 393 658 236 524 372 41 241 194

including 9 cities

10 911 633 92 138 673 30 000 000 66 801 486 15 696 829 92 138 673 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

Trainings for empoyees

EXAMPLE

Building or reconstruction of premises Equipment, technologies

Private investments Public investments

Power supply, gas supply Water supply and sewerage, rainwater drainage system, heating system Access roads

.

Local Development Program

Revitalization of territories, development of deprived

areas

(Ministry of Regional Development) Energy-efficiency of municipal buildings (Ministry of Regional Development)

Integrated investments Infrastructure of social services

(Ministry of Welfare)

Entrepreneurship

(Ministry of Economy)

Other invest ments

Needs analysis

Implementation of Integrated Territorial Investments (ITI) Cabinet of Ministers Regional Development Coordination Council Approves:

• • Indicators and funding (in total for each municipality regarding each SSO) Time frame of SSO implementation

Municipal commission Performs selection of project proposals:

• According to SSO terms • According to funding amount approved by Cabinet of Ministers

Approves or rejects project proposal

(after verification)

Municipality

Municipality Development Program

Investment Plan Priority project ideas: 1.

2.

Project idea Project idea 3.

Project idea Alternative project ideas: 1.

2.

Project idea Project idea

Drafts project proposal for SSO VERIFICATION

• According to Article 7 it is verified if project selection has been performed in compliance with regulations and criteria of SSO

Thank you!

www.varam.gov.lv

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