1. 2.3.2.2.2. „Support for renovation of industrial premises”

2.  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 3 000 m2 to at least 5 000 m2 to ensure higher impact and exploit economies of scale. Changes in project evaluation criteria after Monitoring Committee on 31 st of May 2012

3.  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

4.  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 40 000 m2 (industrial parks with premises of 5000 -15000 m2) The objective of activity

5.  Planned amount of financing for program – 13,5 mln lats  Reallocation of funding from 2.3.2.2. „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 – 1 000 000 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)

6.  Eligible costs – renovation costs of industrial premises (max aid = 250LVL/per m2)  Eligible areas - towns above 20 000 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)

7.  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

8.  Approved criteria 14 th of September  Approved Cabinet of Ministers regulations – November to December 2012.  Call of proposals January to February, 2013.  Approved projects April, 2013. Next steps

9. Thank You for your attention! Adrese: Brīvības iela 55, Rīga, LV-1519 Tālrunis: 67013101 Fakss: 67280882 E-pasts: pasts@em.gov.lvpasts@em.gov.lv Mājas lapa: www.em.gov.lvwww.em.gov.lv Twitter: @EM_gov_lv, @siltinam Youtube: http://www.youtube.com/ekonomikasministrijahttp://www.youtube.com/ekonomikasministrija