„Support for renovation of industrial premises”

 The eligible costs are only for reconstruction of existing industrial premises and no new site development would be allowed.  The total area of the buildings is increased from m2 to at least m2 to ensure higher impact and exploit economies of scale. Changes in project evaluation criteria after Monitoring Committee on 31 st of May 2012

 Objective Promote expansion or creation of new companies by providing availability of industrial premises in regions  Reduce regional/territorial disparities in terms of business activity and employment  Reduce emigration (ideally recerse migration flows) of labour from regions to Riga or outside Latvia  Justification of activity  Lack of premises for industrial use outside Riga;  Investors/developers cosidering investments for renovation of industrial premises in regions as too risky;  There is lack of financing at current risk/reward rates; The objective of activity

 Benefits  Increased employment opportunities in regions  Reduction of region disparities  Instrumental aid scheme for expansion of start-ups  Existing of indsutrial premises would allow to accelerate implementation of project  Results  500 new jobs created outside Riga with at least 400 – 500 new jobs  Area of industrial premises reconstructed – at least m2 (industrial parks with premises of m2) The objective of activity

 Planned amount of financing for program – 13,5 mln lats  Reallocation of funding from „Co-financing to the investments in micro, small and medium sized enterprises operating in the specially assisted areas” (with no OP amendments required)  Maximum co-financing – lats for each project  Aid intensity - 50%  Project selection procedure – Open project selection procedure  State aid – EC Regulation No.800/2008 (General block exemption regulation) Description of program (1)

 Eligible costs – renovation costs of industrial premises (max aid = 250LVL/per m2)  Eligible areas - towns above inhabitants except Riga (Daugavpils, Rezekne, Valmiera, Ogre, Jekabpils, Jurmala, Jelgava, Ventspils, Liepaja)  5 years lease to at least 3 manufacturing companies per project  20 new jobs created in 12 months, 50 jobs created in 36 months per project  Project has to be located in territory designated industrial activity  Advanced stage of the project vis-a-vis construction procedures Description of program (2)

 Cost efficiency of reconstruction works per m 2  Unemployment rate in region  Availability of buildings for expansion of industrial premises  Project applicants ability to raise necessary financing  Required aid intensity Criteria to prioritize project proposals

 Approved criteria 14 th of September  Approved Cabinet of Ministers regulations – November to December  Call of proposals January to February,  Approved projects April, Next steps

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