1. Creation of local business and development environment (Grant Scheme) Madis Kaldmäe Ministry of the Interior

2. Creation of local business and development environment Main objective: The general objective of the program is sustainable and balanced economic development of Estonia through increasing the competitiveness of regions and localities. The secondary objectives are: support localities to become attractive places to live, work and visit; counteract the factors restricting full utilisation of the development potential of the localities; develop locality-specific competitive advantage (to increase the regional/local specialisation); empower local development and planning activities ensuring the sustainability of the development.

3. Creation of local business and development environment The following activities will be supported through the grant scheme: 1) Investments in improvement and diversifying of local economic and business environment, development of region- specific know-how centres and promotion of centres’ innovation as well as improvement of the connections between urban centres and periphery (e.g. preparation of local economic areas on the basis of adaptation of existing buildings, incl. not being used former agricultural objects, schools and houses), creation and furnishing of workshops, slum clearance and land improvements);

4. Creation of local business and development environment 2) Development of alternative services and implementation of traditional skills and know-how in local development (arrangement of temporary jobs for unemployed, traditional local know-how transfer and implementation for employment stimulation etc.) 3) Composition and design of local and regional sectoral as well as physical development plans, design, strategy development (e.g. joint development projects of local authorities within certain geographical area; planning, analysis, feasibility studies, EIA needed for the preparation of investment projects` etc. )

5. Creation of local business and development environment By implementing the program through supporting many- featured complex activities, it is intended to develop unique and vital cultural, business and tourism environment in regions through the natural co-operation between the 4.6.2 sub-measure of Estonian SPD 2004- 2006 “Increasing the competitiveness of regions” and present grant scheme.

6. Creation of local business and development environment The eligible applicants are: Local authorities, NGO (non-profit organisations), county administrations and unions of local authorities, state agencies, private companies owned by public sector

7. Creation of local business and development environment Size of grants: EUR 5 000 - EUR 300 000 per single project. The grant may not exceed 80% of the total eligible cost of the project. Minimum 20% of the total eligible costs of the project is required to be national co-financing. The minimum co-financing rate to be applied will be defined on the basis of eligible costs within each individual project. The national co-financing will be provided by the grant beneficiaries.