G/SCM/N/253/EU/Add.15  
 
1 October 2013  
(13-5254)  Page: 1/41  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF 
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to subsidy programmes 
of Latvia . 
_______________ G/SCM/N/253/EU/Add.15 
 
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  LATVIA  
 
TABLE OF CONTENTS 
 
1   ON APPLICATION OF TAXES IN FREE  PORTS AND SPECIAL ECONOMIC ZONES ........... 4  
2   JSC "LATVIJAS FINIERIS" – INVESTMENT AID FOR ENSURING MORE 
ECONOMIC USE OF LATVIAN WOOD RECOURSES AND FOR CONTRIBUTION TO 
REDUCTION OF UNEMPLOYMENT LEVEL IN  SOME REGIONS OF LATVIA ........................... 4  
3   INDIVIDUAL REGIONAL AID IN  FAVOUR OF JSC "OLAINFARM" .................................. 5  
4   AID TO SIA "EKOBRIKETES" – UTILIZATION OF LOCAL BIOMASS FOR 
PRODUCTION OF ENVIRONMENT-FRIENDLY FUEL IN K ĀRSAVA ....................................... 5  
5   SUPPORT TO INVESTMENTS FOR DEVELOPMENT IN THE SPECIALLY 
ASSISTED AREAS ............................................................................................................. 6  
6   DEVELOPMENT OF NEW PRODUC TS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION ................ 7  
7   HIGH VALUE A DDED INVEST MENT............................................................................... 8  
8   HIGH VALUE ADDED INVE STMENT – SECOND ROUND ................................................. 8  
9   CLUSTERS PROGRAMME .............................................................................................. 9  
10   COMPETENCE CENTRES ........................................................................................... 10  
11   BUSINESS INCUBATORS .......................................................................................... 10  
12   EXTERNAL MARKETING ........................................................................................... 11  
13   EXTERNAL MARKETING – STRENGTHENING INTERNATIONAL 
COMPETITIVENESS OF  INDUSTIR ES .............................................................................. 12  
14   CORPORATE INCOME TAX RELIEF ............................................................................ 12  
15   INVESTMENT LOANS FOR MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES 
AND COOPERATIVE PARTNERSHIPS WHICH PROVIDE AGRICULTURAL SERVICES 
FOR RISING DE VELOPMENT ........................................................................................... 13  
16   MICRO-LOANS PROGRAMME .................................................................................... 14  
17   BUSINESS START-UPS PROGRAMME ........................................................................ 14  
18   OPEN CALL "ENVIRONMENTAL TECHNOLOGIES AND ECO-INNOVATION" ................ 15  
19   CREATING VALUE-ADDED AGRICULTURAL PRODUCTS............................................. 16  
20   ENERGY PRODUCTION FROM AGRICULTURAL AND FORESTRY BIOMASS ................. 16  
21   SCHEME REGARDING THE INCREASE OF EFFICIENCY OF CENTRALISED HEAT 
SUPPLY SYST EMS ........................................................................................................... 17  
22   DEVELOPMENT OF COGENERATION POWER PLANTS UTILISING RENEWABLE 
ENERGY SO URCES .......................................................................................................... 18  
23   DEVELOPMENT OF SEPARATE  WASTE COLLECTIO N SYSTEMS .................................. 18  
24   SUPPORT FOR BUSINESS CR EATION AND DE VELOPMENT ....................................... 19  
25   BUSINESS COMPETITIVENESS SUPPORT PROGRAMME ............................................ 20  
26   ELECTRIC AND ELECTRONIC WASTE SORTING AND RECYCLING FACILITY IN 
TUME .............................................................................................................................. 20 
27   "DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION" 
2ND ROUN D ................................................................................................................... 2 1 
28   GUARANTEES TO ENTREPRENEURS AND COOPERATIVE SOCIETIES OF 
AGRICULTURAL SERVICES TO  IMRPOVE COMPETITIVENESS .......................................... 22  G/SCM/N/253/EU/Add.15 
 
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  29   MEZZANINE  LOANS ................................................................................................. 23  
30   HIGHLY QUAL IFIED LABO UR ................................................................................... 23  
31   TENDER FOR AID FOR NEW ELEC TRICITY GENERATION CAPACITY ......................... 24  
32   DEVELOPMENT OF AIRPORT INFRAS TRUCTURE OF AIRPORT "RIGA" ...................... 25  
33   NEXT GENERATION NE TWORK FOR RU RAL AR EA .................................................... 25 
34   SUPPORT TO R&D PROJECTS FI NANCED WITHIN THE FRAMEWORK OF 
EUREKA PROG RAMME .................................................................................................... 26  
35   MARKET-ORIENTED RE SEARCH PROGRAMME .......................................................... 27  
36   SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP AND SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES – SUPPORT TO INDIVIDUALLY ORGANIZED 
TRAINING BY EN TERPRISES .......................................................................................... 28
 
37   SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED 
IN PARTNERSHIP ........................................................................................................... 28  
38   APPLICATION OF REDUCED EXCISE TAX RATES TO BIOFUEL AND FOSSIL 
FUEL AND BIOFUEL MIXTURES WITH  HIGH BIOFUEL ADMIXTURE ................................. 29  
39   OPEN TENDER "TECHNOLOGY TRANSITION FROM FOSSIL TO RENEWABLE 
ENERGY RESO URCES"  .................................................................................................... 30  
40   OPEN TENDER "COMPLEX SOLUTIONS TO REDUCE GREENHOUSE GAS 
EMISSIONS IN INDUSTRI AL BUILDI NGS" ...................................................................... 30  
41   OPEN CALL "USE OF RENEWABLE ENERGY RESOURCES IN TRANSPORT 
SECTOR" ....................................................................................................................... . 31 
42   OPEN TENDER "LOW ENERGY CONSUMPTION BUILDINGS " .................................... 32  
43   OPEN TENDER "USE OF RENEWA BLE ENERGY RESOURCES FOR REDUCTION 
OF GREENHOUSE GAS EMISSION" .................................................................................. 32  
44   OPEN TENDER "COMPLEX SOLUTIONS FOR REDUCTION OF GREENHOUSE 
GAS EMISSI ONS" ........................................................................................................... 33  
45   ACTIVE EMPLOYMENT MEASURE FOR CERTAIN PERSON GROUPS ............................ 33  
46   SUPPORTED EMPLOYMENT MEASURES FOR UNEMPLOYED PERSONS FROM 
SPECIFIC TARGET GROUPS ............................................................................................ 35  
47   SUPPORT TO SCIENCE AND RESEARCH .................................................................... 35  
48   OPEN CALL "DEVELOPMENT OF TECHNOLOGIES TO REDUCE GREENHOUSE 
EFFECT GAS EM ISSIONS"  ............................................................................................... 36  
49   DEVELOPMENT OF NEW PRODUC TS AND TECHNOLOGIES – AID FOR 
SECURING INDUSTRIAL PROPERTY RI GHTS .................................................................. 37  
50   DEVELOPMENT OF NEW PR ODUCTS AND TECHNOLOGIES ........................................ 38  
51   OPEN CALL "DEVELOPMENT OF TECHNOLOGIES REDUCING GREENHOUSE 
GAS EMISSIONS AND IMPLEMENTATI ON OF PILOT PROJECTS" ..................................... 38  
52   AID FOR EVALUATION OF BREEDING  MATERIAL IN ORDER TO INTRODUCE 
INTEGRATED CROP CULTIV ATION TECHNO LOGIES ........................................................ 39  
53   AID FOR TECHNOLOGY TRANSFER AND VENTURE CAPITAL SECTORS ...................... 40  
54   SHORT-TERM EXPORT  CREDIT INSURANCE ............................................................. 40  
 
 
LVL 1 = EUR 0,702804  
 G/SCM/N/253/EU/Add.15 
 
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  1  ON APPLICATION OF TAXES IN FREE PORTS AND SPECIAL ECONOMIC ZONES 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. According to the national legislation only 
enterprises having signed the agreement with the Board of Special Economic Zones and Free Ports about the realization of business activities and initial investments in the territory of both special economic zones and free ports, may apply tax rebates. 
 
3. Background and authority for the subsidy 
 
The State Revenue Service and relevant municipalities. 
 4. Form of the subsidy 
 Tax relief.  5. The annual amount of the subsidy 
 In 2011, the total amount of the subsidy constituted LVL 5.409 million under this scheme. In 2012, the forecasted amount of the subsidy is LVL 5.505 million
1. 
 
6. Duration of the subsidy 
 
2002 – 2035. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 2   JSC "LATVIJAS FINIERIS" – INVESTMENT AID FOR ENSURING MORE ECONOMIC USE 
OF LATVIAN WOOD RECOURSES AND FOR CONTRIBUTION TO REDUCTION OF 
UNEMPLOYMENT LEVEL IN SOME REGIONS OF LATVIA 
1. Period covered by the notification 
 
2011 and 2012.  2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. Ad hoc aid. Tax relief in respect of investments made within the scope of supported investment projects is applicable in the amount of 40 % of the 
total invested amount if enterprises comply with certain conditions, for example, total amount of 
investments made should exceed LVL 10 million and the period of investment should not exceed 3 
years. The tax allowance is to be applied starting  from the taxation period when the project is 
completed and, depending on the generated income, it will have to be fully utilized in 10 taxation 
periods.  3. Background and authority for the subsidy 
 Law On Enterprise Income Tax, Section 17.1.  
4. Form of the subsidy 
 
Tax relief. 
                                               
1 Provisional figures as final figures of 2012 are not available yet in cases of tax–related forms of aid 
because according to the national legislation actual annual figures are obtained in autumn. G/SCM/N/253/EU/Add.15 
 
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  Authority for the subsidy: the Ministry of Economics. 
 5. The annual amount of the subsidy 
The total amount of the aid in 2011 was LVL 0.726 million. In 2012, the forecasted amount of the 
subsidy is LVL 0.726 million2. 
6. Duration of the subsidy 
 
2004 – 2007 – period of investment project; 2007 – 2016 – duration of the subsidy in the form of 
tax relief is planned for 10 years, starting from 2007.  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
3  INDIVIDUAL REGIONAL AID IN  FAVOUR OF JSC "OLAINFARM" 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. Ad hoc aid. Aid is granted to JSC "Olainfarm", the 
aim of which is to support the enterprise to modernise the process of production thus ensuring a possibility for more than 1200 workers of region Olaine to maintain their job. 
 
3. Background and authority for the subsidy 
 
Law On the State Budget. 
 4. Form of the subsidy 
 
Prolongation of tax payment debts and write-off of  punitive fees related to prolonged tax payment 
debts. Authority for the subsidy: the Ministry of Economics.  
5. The annual amount of the subsidy 
In 2011, the aid was granted only in a form of prolongation of tax payment debts. The total 
amount of the aid in 2011 was LVL 0.003 million. 
6. Duration of the subsidy 
 
2005 – 2011.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
4   AID TO SIA "EKOBRIKETES" – UTILIZ ATION OF LOCAL BIOMASS FOR PRODUCTION 
OF ENVIRONMENT-FRIENDLY FUEL IN K ĀRSAVA  
1. Period covered by the notification 
 
2011 and 2012.  
                                               
2 Provisional figures as final figures of 2012 are not ye t available in cases of tax – related forms of aid 
because due to the national legislation the actual annual figures are obtained in autumn.  
 G/SCM/N/253/EU/Add.15 
 
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  2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The notification concerns the individual ad hoc aid 
to SIA "Ekobriketes" for the initial investment  project relating to extension of existing 
establishment which consists of the building for production unit of briquettes and granules. The 
measure aims at promoting regional development and environmental protection. The notified aid 
for the project in question will be granted through the European Economic Area Financial 
Mechanism (EEA Financial Mechanism) which is parallel to the Norwegian Financial Mechanism. Aid 
intensity is 55.89 % of applicable eligible costs.  3. Background and authority for the subsidy 
 1) Regulations of the Cabinet of Ministers of 8 November 2005 No. 852 on the European Economic 
Area Financial Mechanism's and Norwegian Financial Mechanism's management, implementation, 
monitoring, control and evaluation system; 
2) Regulations of the Cabinet of Minister s of 21 November 2006 No. 963 on the European 
Economic Area Financial Mechanism and Norwegian Financial Mechanism "Protection of the 
environment" priority open call's negotiations. 
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 4. Form of the subsidy 
 Direct grant.  
5. The annual amount of the subsidy 
 
In 2011, the amount of the subsidy was LVL 0.09 m illion. In 2012, the amount of the subsidy was 
LVL 0.02 million (Aid granted solely from the Community funds. No resources from the state 
budget or municipal budget involved).  6. Duration of the subsidy 
 2008 – 2011. The Project implementation was closed in 2012.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
5   SUPPORT TO INVESTMENTS FOR DEVELOPMENT IN THE SPECIALLY ASSISTED AREAS 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The activity is aimed at promoting business development in specially assisted areas, thereby reducing the unfavourable differences between 
the regions and regional areas, as well as contributing to a balanced national development. Aid is 
awarded for the following initial investments: investments in fixed assets and intangible assets. The maximum allowable aid intensity ranges from 40 – 55%, depending on the area of project implementation. 
 
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 20 November 2007 No.798 "Operational programme 
"Entrepreneurship and Innovation" complement activity "Co-financing to investments in micro and small-sized enterprises operating in the specially assisted areas" implementation procedure" (was 
in force till 14.03.2009.) and the Cabinet of Mi nisters Regulations of 24 February 2009 No.197 
"Regulations on the operational programme "Entrepreneurship and Innovation" complement activity 2.3.2.2 "Co-financing to investments in micro and small-sized enterprises operating in the specially assisted areas" (in force from 14.03.2009), replacing the Regulations No.798, G/SCM/N/253/EU/Add.15 
 
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  amendment by the Cabinet of Mi nisters Regulations of 8 December 2009 No.1387 and the Cabinet 
of Ministers Regulations of 21 September 2010 No.881. Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 
4. Form of the subsidy 
 
Grant. 
 5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted  to LVL 1,14 million. In 2012, the total amount 
of Direct grant amounted to LVL 0,56 million.  
6. Duration of the subsidy 
 
2008 – 2013. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A 
 
6   DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The activity is aimed at supporting development of 
new products or technologies in manufacturing. Within the framework of the activity financing is 
provided to operator's initial investment in fixed assets directly ensuring implementation of new products or technologies in the industry: new equipment acquisition costs, intangible assets 
(patents and licenses, acquisition costs). The maximum allowable funding effort of the project's 
total eligible costs for large – 25%, micro-, small-and medium-sized enterprises – 35%.  
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 12 August 2008 No. 658 "Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.1.2.2 
"Development of new products and technologies" sub-activity 2.1.2.2.2 "Development of new 
products and technologies – aid for implementation of new products and technologies in production" (amendments by the Regulations of th e Cabinet of Ministers of 3 March 2009 No.217; 
the Regulations of the Cabinet of Ministers of  21 September 2010 No.879 and the Regulations of 
the Cabinet of Ministers of 7 August 2012 No.540). Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 4. Form of the subsidy 
 
Grant. 
 5. The annual amount of the subsidy 
 In 2011, the total amount of Direct grant amounted  to LVL 1,41 million. In 2012, the total amount 
of Direct grant amounted to LVL 0,37 million. (A id granted solely from the Community funds. No 
resources from the state budget involved). 
 G/SCM/N/253/EU/Add.15 
 
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  6. Duration of the subsidy 
 
2008 – 2015.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
7   HIGH VALUE ADDED INVESTMENT 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The activity is aimed at encouraging local entrepreneurs to invest in knowledge or technology intensive projects, as well as to attract foreign 
investment in areas with high added value, thus co ntributing to the transfer of latest technologies 
from abroad.  3. Background and authority for the subsidy 
 The Regulations of the Cabinet of Ministers of  24 February 2009 No. 200 "Regulations on the 
operational programme "Entrepreneurship and In novation" complement activity 2.1.2.4 "High 
value added investment" (amendments by the Regulation of the Cabinet of Ministers of 
28 July 2009 No.547). Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 4. Form of the subsidy 
 
Grant. 
 5. The annual amount of the subsidy 
 In 2011 the total amount of Direct grant amounted to LVL 12,16 million and in 2012 – LVL 6,61 million. (Measure is financed solely from the European Regional Development Fund.) 
 
6. Duration of the subsidy 
 2009 – 2015. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 8   HIGH VALUE ADDED INVESTMENT – SECOND ROUND 
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The activity is aimed at encouraging local 
entrepreneurs to invest in knowledge or technology intensive projects, as well as to attract foreign 
investment in areas with high added value, thus co ntributing to the transfer of latest technologies 
from abroad. 
 G/SCM/N/253/EU/Add.15 
 
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  3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 19 October 2011 No.817 „Regulations on the 
operational programme "Entrepreneurship and In novation" complement activity 2.1.2.4 "High 
value added investment" (amendments by the Regulation of the Cabinet of Ministers of 
26 June 2012 No.434 and the Regulation of th e Cabinet of Ministers of 12 March 2013 No.137). 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 4. Form of the subsidy 
 
Grant. 
 5. The annual amount of the subsidy 
 In 2012 the total amount of Direct grant amounted to LVL 0,26 million.  
6. Duration of the subsidy 
 
2012 – 2015.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 
9   CLUSTERS PROGRAMME 
1. Period covered by the notification 
 
2011 and 2012.  2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. Th e purpose of the measure is to facilitate the 
cooperation between sector’s unrelated entrepreneur s and institutions of education, research and 
development thus promoting growth of competitiv eness, export, innovation and development of 
new products of industries. Support is given to a foundation (business association) performing functions of a cluster where at 
least 20 entrepreneurs are involved as well as  institutions of science, education, etc. 
 3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of  11 October 2011 No.788 ""Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.3.2.3. "Clusters programme". 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy 
 
Grant.  
5. The annual amount of the subsidy 
 
In 2011 the total aid amounted to LVL 0,17 million . In 2012 the total aid amounted to LVL 0,18 
million. 
 6. Duration of the subsidy 
 2011 – 2015.  G/SCM/N/253/EU/Add.15 
 
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  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A  
10   COMPETENCE CENTRES 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The purpose of the measure is to increase the 
competitiveness of entrepreneurs facilitating c ooperation between research and industry with 
design to implement research, new products and technologies development projects.  
Support is given to a Competence centre – a legal person established by at least 2 scientific 
institution and 3 entrepreneurs.  
3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 13 April 2010 No. 361 ""Regulations on the operational programme "Entrepreneurship and Innovation" complement sub-
activity 2.1.2.1.1."Competence centres" (amend ments by the Regulation of the Cabinet of 
Ministers of 1 February 2011 No.102; the Regulati on of the Cabinet of Ministers of 15 May 2012 
No.344 and the Regulation of the Cabinet of Ministers of 9 October 2012 No.702) . 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy 
 
Grant.  
5. The annual amount of the subsidy 
 
In 2011 the total aid amounted to LVL 11,03 million and in 2012 – LVL 0,53 million. 
 
6. Duration of the subsidy 
 
2010 – 2015. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 11   BUSINESS INCUBATORS 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. Th e purpose of the measure is to facilitate the 
establishment and development of viable and competitive businesses in Latvian regions, providing 
them with the necessary business environment and consultancy services. Support is given to small and medium-sized companies incubated at business incubators. 
 
3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of  7 October 2008 No. 835 ""Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.3.2.1"Business G/SCM/N/253/EU/Add.15 
 
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  incubators" (amendments by the Regulation of  the Cabinet of Ministers of 11 October 2011 
No.789). Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 
4. Form of the subsidy 
 
Subsidized services. 
 5. The annual amount of the subsidy 
 
In 2011 the total aid amounted to LVL 3,44 million and in 2012 – LVL 2,23 million.  
 6. Duration of the subsidy 
 2008 – 2014.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A  
12   EXTERNAL MARKETING 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The purpose of the measure is to support by the entry into foreign markets-related activities - external marketing abroad - and measures to promote businesses in the international supply chain, promote Latvian businessmen's participation 
in international exhibitions and trade missions. 
Support is given to companies, business associations, regional municipalities, port authorities, cooperative societies.  
 
3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 17 June 2009 No.582 ""Regulations on the 
operational programme "Entrepreneurship and Innovation" complement sub-activity 2.3.1.1."Acquiring external markets – ex ternal marketing" (amendments by the Regulation 
of the Cabinet of Ministers of 4 December 2012 No.827). 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy 
 
Grant. 
 
5. The annual amount of the subsidy 
 In 2011 the total aid amounted to LVL 1,07 million and in 2012 – LVL 1,43 million.  
 
6. Duration of the subsidy 
 
2009 – 2015. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  G/SCM/N/253/EU/Add.15 
 
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  13   EXTERNAL MARKETING – STRENGTHEN ING INTERNATIONAL COMPETITIVENESS OF 
INDUSTIRES 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. Th e purpose of the measure is to contribute to 
strengthening the competitiveness of industries in  support of businesses entering foreign markets, 
ensuring activities of Latvian economic foreig n representations in promoting foreign direct 
investment attraction and promotion international competitiveness of Latvia as an international 
tourist destination.  Support is given to State agency whose purpose is to promote business development; and State 
agency which has been established to im plement the Tourism Development Policy.  
 3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of 21 September 2010 No.887 ""Regulations on the 
operational programme "Entrepreneurship and Innova tion" complement activity 2.3.1.1 „Acquiring 
external markets" sub-activity 2.3.1.1.2."Acquiri ng external markets – strengthening international 
competitiveness of industries" (amendments by th e Regulation of the Cabinet of Ministers of 
15 November 2011 No.869; the Regulation of th e Cabinet of Ministers of 4 December 2012 
No.826). 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy 
 
Grant.  
5. The annual amount of the subsidy 
 
In 2011 the total aid amounted to LVL 0,83 million and in 2012 – LVL 1,9 million.  
 
6. Duration of the subsidy 
 
2010 – 2015. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 14   CORPORATE INCOME TAX RELIEF 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The purpose of the measure is to contribute to an 
attraction of foreign direct investments as we ll as to the development of new products and 
technologies and introduction of them in the production.  Support is given to enterprises investing at least LVL 3 million in tangible and intangible assets 
related to the extension of an existing establ ishment, diversification of the output of an 
establishment into new products and services and a fundamental change in the overall production process of an existing establishment.  
 G/SCM/N/253/EU/Add.15 
 
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  3. Background and authority for the subsidy 
 
Article 172 of the Law on Corporate Income "The tax relief for eligible investment project carried 
out under the initial long-term investments" (adopted on 20 December 2010, amendments on 
15 December 2011).  
Authority for the subsidy: State Revenue Service/ Ministry of Economics.  
4. Form of the subsidy 
 
Tax Relief.  
5. The annual amount of the subsidy 
 
Investment project was approved for the applicat ion of tax relief in 2011 and in 2012 – 4 projects, 
but no aid was granted. 
 6. Duration of the subsidy 
 The decisions on approvement of investment projec ts for the application of tax relief would be 
taken till 31/12/2013. Period of investment project could last till 31/12/2018.  
Duration of the application of tax relief is planned for maximum 16 years starting taxation period 
when the investment project has been implemented.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
15   INVESTMENT LOANS FOR MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES AND COOPERATIVE PARTNERSHIPS WHICH PROVIDE AGRICULTURAL SERVICES FOR RISING DEVELOPMENT  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The Regulation is aimed at improving access of 
economic performers registered in Latvia to fi nancing thus promoting economic development in 
the Republic of Latvia.   
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 15 September 2009 No. 1065 "Regulations on loans 
for micro, small and medium-sized enterprise s and cooperative partnerships which provide 
agricultural services for rising development" (a mendments by the Regulati ons of the Cabinet of 
Ministers of 5 October 2010 No.949 and the Regu lations of the Cabinet of Ministers of 
13 March 2012 No.184).  
Authority for the subsidy: State JSC "Mortgage and Land Bank of Latvia".  4. Form of the subsidy 
 Soft loan.  
5. The annual amount of the subsidy 
 
In 2011 and 2012 the aid element of soft loans for the total amount of LVL 23,03 million issued 
was zero. 
 G/SCM/N/253/EU/Add.15 
 
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  6. Duration of the subsidy 
 
2009 – 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
16   MICRO-LOANS PROGRAMME 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. Th e aim is to increase the possibility of micro-
financial support to business start-up and development, thus contributing to the development of 
Latvian economy. Loans are given to micro-enterprises. 
 3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 6 September 2011 No.698 "Regulations on micro-
loans and grants within the frame of Swiss-Latvian Cooperation Programme of the individual project "Micro-lending program" 
Authority for the subsidy: State JSC "Mortgage and Land Bank of Latvia". 
 4. Form of the subsidy 
 Soft loan.  5. The annual amount of the subsidy 
 In 2011 and 2012 the aid element of soft loans for th e total amount of LVL 3,29 million issued was 
zero. 
 
6. Duration of the subsidy 
 
2009 – 2013. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 17   BUSINESS START-UPS PROGRAMME 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. Th e aim of the programme is to increase economic 
activity in the country, to develop knowledge and sk ills of business start-up in business, as well as 
to provide the necessary financial support for business start-up.  Support is given to newly established enterprises and natural persons planning to start commercial 
activities. 
 3. Background and authority for the subsidy 
 The Regulations of the Cabinet of Ministers of 31 March 2009 No.293 „Regulations on the operational programme "Human Resources and Employment" complement activity 1.3.1.2." G/SCM/N/253/EU/Add.15 
 
- 15 - 
 
  Support for self-employment and business start-ups" (amendments by the Regulations of the 
Cabinet of Ministers of 7 July 2009 No.754; th e Regulations of the Cabinet of Ministers of 
8 December 2009 No.1403; the Re gulations of the Cabinet of Mi nisters of 26 October 2010 No.998 
and the Regulations of the Cabinet of Ministers of 10 May 2011 No.363).  
Authority for the subsidy: State JSC "Mortgage and Land Bank of Latvia". 
 4. Form of the subsidy 
 Soft loan.  5. The annual amount of the subsidy 
 In 2011-2012 the aid element of soft loans issued for the total amount of LVL 8,25 million was LVL 
2 million.  
 
6. Duration of the subsidy 
 
2008 – 2013. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 18   OPEN CALL "ENVIRONMENTAL TE CHNOLOGIES AND ECO-INNOVATION"  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The programme is aimed at implementation and 
popularization of new technologies and technological solutions to increase competitiveness of 
environmental technologies offering "niche approach" to create added value in the context of the European Union on the basis of cooperation possibilities provided in the European Union 
Environmental Technologies Action Plan, as well as development of cooperation among scientists 
and entrepreneurs.   
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of  13 January 2009 No. 43 "Regulation of the sub-
project applications open call "Environmental technologies and eco-innovation" of the programme 
co-financed from the European Economic Area Financial Mechanism "Environmental Policy 
Integration Programme in Latvia""  Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted to LVL 0.089 million from which 
LVL 0.013 million was granted as aid for experimental development and LVL 0.076 million as aid for regional development. 
 
6. Duration of the subsidy 
 
2009 — 2011. The subsidy programme has been finished. 
 G/SCM/N/253/EU/Add.15 
 
- 16 - 
 
  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A  
19   CREATING VALUE-ADDED AGRICULTURAL PRODUCTS 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development.  The regional aid scheme supports investment 
projects, which aim at the activities related to the processing of agricultural products falling within the scope of Annex I of the EC Treaty into non-An nex I products of the EC  Treaty. The scheme will 
apply to micro, small and medium-sized enterprise s (SMEs) and to other undertakings, which have 
more than 250 employees and a net turnover ex ceeding EUR 50 million. The aid under the scheme 
will not be granted to undertakings employing at least 750 employees that have a net turnover of 
at least LVL 140.5 million. 
 3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of  8 April 2008 No. 255 "Regulations on State and 
European Union aid for rural development within the framework of the Latvian Rural Development Programme measure "Creating value-added agricu ltural products"" and The Regulation of the 
Cabinet of Ministers of 14 July 2009 No. 783 "Pro cedures by which State and European Union Aid 
is Granted for Rural and Fisheries Development".  Authority for the subsidy: the Ministry of Agriculture, the Rural Support Service  
 
4. Form of the subsidy 
 Direct grant. 
 
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amou nted to LVL 0.270 million. In 2012, the total 
amount of Direct grant amounted to LVL 0.47 million.  
6. Duration of the subsidy 
 
2009 – 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
20   ENERGY PRODUCTION FROM AGRICULTURAL AND FORESTRY BIOMASS  
1. Period covered by the notification 
 
2011 and 2012.  2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development.  The regional aid scheme supports investment 
projects, which aim at the energy generation from biomass of agricultural or forestry origin, 
provided that the energy generated (heat and electricity) will be largely sold outside the 
beneficiary undertaking. The scheme will apply to all undertakings irrespective of their size (small, medium and large). 
 G/SCM/N/253/EU/Add.15 
 
- 17 - 
 
  3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 16 March 2010 No. 268 "Procedures for the 
Allocation of State and European Union Aid under Sub-measure "Energy Generation from Biomass 
of Agricultural and Forestry Origin" of Rura l Development Programme 2007-2013 Measure "Aid for 
the Creation and Development of Enterprises (including the Diversification of Activities not related to Agriculture) "" and The Regulations of th e Cabinet of Ministers of 14 July 2009 No. 783 
"Procedures by which State and European Union Aid is Granted for Rural and Fisheries 
Development". Authority for the subsidy: the Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy 
 
Direct grant. 
 
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted  to LVL 2.59 million. In 2012, the total amount 
of Direct grant amounted to LVL 2.828 million.  6. Duration of the subsidy 
 2009 – 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
21   SCHEME REGARDING THE INCREASE OF EFFICIENCY OF CENTRALISED HEAT SUPPLY SYSTEMS  
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The aid scheme supports investment projects which 
aim to increase the efficiency of heat supply production, reduce losses of heat energy in the 
transmission and distribution systems and to fost er the replacement of fossil fuel with renewable 
fuel.  
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of  17 February 2009 No. 162 "Regulations on the 
Supplement Activity 3.5.2.1 "Measures Regarding th e Increase of Efficiency of Centralised Heat 
Supply Systems" of the Operational Programme "Infrastructure and Services" for the first round of project applications selection"" and the Regulations of the Cabinet of Ministers of 31 August 2010 
No. 824 "Regulations on the Supplement Activity 3.5.2.1 "Measures Regarding the Increase of 
Efficiency of Centralised Heat Supply Systems" of the Operational Programme "Infrastructure and 
Services" for the second and subsequent rounds of  project applications selection"" ""(amendments 
by the Regulations of the Cabinet of Ministers of 17 June 2009 No.566; the Regulations of the 
Cabinet of Ministers of 30 March 2010 No.329; the Regulations of the Cabinet of Ministers of 
26 July 2011 No.584 and the Regulations of the Ca binet of Ministers of 24 April 2012 No.290). 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 4. Form of the subsidy 
 Grant.  G/SCM/N/253/EU/Add.15 
 
- 18 - 
 
  5. The annual amount of the subsidy 
 
In 2011 the total amount of Direct grant amounted to LVL 6 million and in 2012 – LVL 4,2 million. 
 
6. Duration of the subsidy 
 
2009 – 2013. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A 
 
22   DEVELOPMENT OF COGENERATION POWE R PLANTS UTILISING RENEWABLE ENERGY 
SOURCES  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional developmen t. The notified regional aid scheme supports 
investment projects, which aim to substantially increase the production rate of electricity and heat 
energy from renewable energy sources. Thanks to the scheme it is expected to reduce the 
dependence of Latvia on the import of pr imary energy sources. The scheme applies to 
undertakings in the energy sector which supply public services and are licensed to produce thermal 
energy irrespective of their size.   
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of  17 February 2009 No. 165 "Regulations on the 
Supplement Activity 3.5.2.2 "Development of Cogeneration Power Plants Utilising Renewable 
Energy Sources" of the Operational Programme "Infrastructure and Services"" (amendments by 
the Regulations of the Cabinet of Ministers of  31 March 2009 No.292; the Regulations of the 
Cabinet of Ministers of 2 March 2010 No.207; the Regulations of the Cabinet of Ministers of 20 
Aprila 2010 No.380 and the Regulations of the Ca binet of Ministers of 11 October 2011 No.795). 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 
4. Form of the subsidy 
 Direct grant. 
 
5. The annual amount of the subsidy 
 
In 2011 the total amount of Direct grant amounted to LVL 1,88 million and in 2012 – LVL 
4,74 million. (Measure is financed solely from the European Union Cohession Fund.) 
 
6. Duration of the subsidy 
 
2009 – 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
23   DEVELOPMENT OF SEPARATE WASTE COLLECTION SYSTEMS 
1. Period covered by the notification 
 
2011 and 2012.  G/SCM/N/253/EU/Add.15 
 
- 19 - 
 
  2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development.  The regional aid scheme supports investment 
projects, which aim at the development of separate waste collection systems in the whole territory 
of Latvia. The scheme is expected to increase the efficiency of the waste management in Latvia, as 
well as to increase employment and social well-being through the whole country. The scheme is open to all companies which operate in the waste management sector. More specifically, according 
to the regulation, the beneficiaries of the scheme ar e undertakings, irrespective of their size, which 
have concluded an agreement with a municipality on rendering waste management services (waste collection, sorting, transportation) in the administrative territory of the municipality or that have concluded an agreement with a service beneficiary on hazardous waste management. 
 
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 15 December 2009 No. 1487 "Regulations on the 
Supplement Activity 3.5.1.2.3 "Development of  a separate waste collection system" of the 
Operational Programme "Infrastructure and Serv ices" (amendments by the Regulations of the 
Cabinet of Ministers of 01 November 2010 No.10 23 and by the Regulations of the Cabinet of 
Ministers of 03 January 2012 No.12)Authority for the subsidy: the Ministry of the Environmental Protection and Regional Development.  
4. Form of the subsidy 
 
Direct grant. 
 
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted  to LVL 1.67 million. In 2012, the total amount 
of Direct grant amounted to LVL 0.79 million (M easure is co-financed solely from the European 
Union Cohesion Fund. No resources from the state budget or municipal budget involved).  
6. Duration of the subsidy 
 
2009 – 2013. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 24   SUPPORT FOR BUSINESS CREATION AND DEVELOPMENT  
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The measure aims at encouraging production of 
non-agricultural commercial activities (business) or employment in the rural area, diversifying 
activities that are not related to agriculture, to develop alternative income sources and increase in 
income levels in rural areas.  
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 10 March 2008 No. 300 "Procedure for granting the 
national and European Union support in the form of an open project submission tender for the 
measure "Support for business creation and development (including diversification non-agricultural activities)" (was in force till 06.03.2010.) and th e Regulations of the Cabinet of Ministers of 
9 February 2009 No. 132 "Procedure for granting th e national and European Union support in the 
form of an open project submission tender for the measure "Support for business creation and development (including diversification non-agricultural activities)", replacing the Regulations No. 300. G/SCM/N/253/EU/Add.15 
 
- 20 - 
 
  Authority for the subsidy: the Ministry of Agriculture, the Rural Support Service 
 4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 In 2011, the total amount of Direct grant amo unted to LVL 0.610 million and in 2012, the total 
amount of Direct grant amounted to LVL 1.921 million.  
6. Duration of the subsidy 
 
2008 – 2013. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 25   BUSINESS COMPETITIVENESS SUPPORT PROGRAMME  
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The aid programme related to improvement of 
business competitiveness is aimed at providing support to small and medium-sized enterprises 
ensuring access to funding to improve competitiveness of enterprises.  3. Background and authority for the subsidy 
 The Cabinet of Ministers Order of 22 May 2008 No. 275 "On business competitiveness support 
programme" (new regulation: The Regulations of the Cabinet of Ministers of 17 February 2009 
No. 164 "Regulations on loans for improving compet itiveness of enterprises", amendments by the 
Regulations of the Cabinet of Mini sters of 20 July 2010 No.659)   
Authority for the subsidy: State JSC "Mortgage and Land Bank of Latvia". 
 
4. Form of the subsidy 
 Soft loan. 
 
5. The annual amount of the subsidy 
 
In 2011-2012 the aid element of soft loans issued  for the total amount of LVL 22,9 million was 
zero.  
6. Duration of the subsidy 
 
2008 – 2020.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
26   ELECTRIC AND ELECTRONIC WASTE SORTING AND RECYCLING FACILITY IN TUME  
1. Period covered by the notification 
 
2011 and 2012.  G/SCM/N/253/EU/Add.15 
 
- 21 - 
 
  2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. Th e Latvian authorities provide ad hoc regional aid 
to the Joint Stock Company "BAO" (hereinafter referred to as "BAO"). The overall aim of the 
project for which the aid is granted is the improvement of an existing waste recovery centre by the 
installation of an electrical and electronic waste sorting and recycling facility. The project concerns 
the installation of an electrical and electronic sorting and recycling facility in an existing waste 
recovery centre. The aid is awarded through an open project selection procedure. The project 
application, issued on 6 June 2008 by BAO with re spect of Regulation No 94, was evaluated by the 
EEA Financial Mechanism Office which decided to grant a sum of EUR 198 197 to the Project.  
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 11 February 2008 No. 94 "Regulation of the Second 
Open Call of Individual Project Applications for the European Economic Area Financial Mechanism 
and Norwegian Financial Mechanism under Priority "Sustainable Development" (hereinafter referred to as "Regulation No 94"). 
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development. 
 4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 In 2011, the total amount of Direct grant amounted  to LVL 0.06 million. In 2012, the total amount 
of Direct grant amounted to LVL 0.02 million. 
 
6. Duration of the subsidy 
 2010 – 2012. The Project implementation was closed in 2012. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 27   "DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION" 2ND 
ROUND  
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The activity is aimed at supporting development of new products or technologies in manufacturing. Within the framework of the activity financing is 
provided to operator's initial investment in fixed assets directly ensuring implementation of new 
products or technologies in the industry: new equipment acquisition costs, intangible assets (patents and licenses, acquisition costs). The maximum allowable funding effort of the project’s total eligible costs for all enterprises is 35%. 
 
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of  21 September 2010 No. 888 "Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.1.2.2 "Development of new products and technologies" sub-activity 2.1.2.2.2 "Development of new 
products and technologies – aid for implementation of new products and technologies in 
production" for the second and subsequent rounds of project applications selection" (amendments 
by the Regulations of the Cabinet of Ministers of  18 January 2011 No.62 and the Regulations of the 
Cabinet of Ministers of 7 August 2012 No.541). G/SCM/N/253/EU/Add.15 
 
- 22 - 
 
  Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia.  4. Form of the subsidy 
 Direct grant.  
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted  to LVL 1,88 million. In 2012, the total amount 
of Direct grant amounted to LVL 9,67 million. 
 
6. Duration of the subsidy 
 
2010 – 2013. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  28   GUARANTEES TO ENTREPRENEURS AND COOPERATIVE SOCIETIES OF 
AGRICULTURAL SERVICES TO  IMRPOVE COMPETITIVENESS 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development. The purpose of the measure is to provide the companies with credit resources to implement their projects in case their resources available are not enough to get a bank loan. 
Guarantees are given to enterprises and cooperative societies of agricultural services. 
 3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of 26 October 2010 No.997 "Regulations on guarantees 
to entrepreneurs and cooperative societies of agricultural services to improve competitiveness" 
(replaced the Regulation of the Cabinet of Ministers of 24 March 2009 No.269).  
Authority for the subsidy: the Ministry of Economics, Latvian Guarantee agency  4. Form of the subsidy 
 Credit guarantees.  
5. The annual amount of the subsidy 
 
Latvian Guarantee agency has issued in total 206 credit guarantees in amount of LVL 30,83 
million, the aid element was LVL 0,69 million. 
 6. Duration of the subsidy 
 
2009-2013. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  G/SCM/N/253/EU/Add.15 
 
- 23 - 
 
  29   MEZZANINE LOANS 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The aid programme is aimed at providing Latvian 
entrepreneurs long-term financing in addition to the loan granted. Mezzanine loans are long-term financing instrument, subordinated to a loan issued by the commercial bank and with an increased risk. 
Support is given to all size enterprises.  
 3. Background and authority for the subsidy 
 The Regulations of the Cabinet of Ministers of 2 August 2011 No.613 „Rules on mezzanine loans for entrepreneurs to improve the competitiveness"  (amendments by the Regulations of the Cabinet 
of Ministers of 19 October 2011 No.813 and Regula tions of the Cabinet of Ministers of 19 June 
2012 No.425). Authority for the subsidy: Latvian Guarantee agency  
4. Form of the subsidy 
 
Soft loan 
 
5. The annual amount of the subsidy 
 
In 2011-2012 the aid element of 3 soft loans issued was LVL 1,14 million. 
 6. Duration of the subsidy 
 
2009-2013. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
30   HIGHLY QUALIFIED LABOUR 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The purpose of the measure is to increase the 
competitiveness of entrepreneurs and to facilitate research and development activities by attracting highly qualified labour involved in solving of specific technological problems or 
development of new products.  
Aid is given to a company in order to employ engineers, scientists and other highly qualified specialists.  Support is given to a foundation (business association) performing functions of a cluster where at 
least 20 entrepreneurs are involved as well as  institutions of science, education, etc. 
 3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of  26 February 2008 No.130 ""Regulations on the 
operational programme "Human Resources and Employment" complement 
activity 1.3.1.9."Attraction of highly qualified labour" 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. G/SCM/N/253/EU/Add.15 
 
- 24 - 
 
   
4. Form of the subsidy 
 Grant. 
 
5. The annual amount of the subsidy 
 
In 2011 the total aid amounted to LVL 0,008 million. 
 6. Duration of the subsidy 
 
2008 – 2011. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
31   TENDER FOR AID FOR NEW EL ECTRICITY GENERATION CAPACITY 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Sectoral aid. The main objective of the measure in question is to promote 
introduction of the new electricity generation capacity to ensure security of supply in the Latvian electricity market which is threatened by the lack of capacity and low diversification of primary 
energy sources and suppliers. Therefore, as a result of introduction of the measure, the security of 
electricity supply should be ensured for the region. The aid will not be financed through the general budget of the State, but through an increase in the transmission service tariffs. Thus the costs will be covered by Latvian transmission system users through parafiscal charges which the 
transmission system operator will attribute to th e beneficiary. The budget of the aid will be 
determined through the competitive tender. Once the beneficiary is chosen the granting of the aid will be subject to a number of conditions. In particular, the 
aid will be subject to deductions if the benefici ary fails to provide the agreed minimum capacity 
of 6000 h annually to the market.  
3. Background and authority for the subsidy 
 
Article 23 of the Latvian Electricity Market Law and the Regulations of the Cabinet of Ministers 
Regulation No. 1112 of 22 December 2008 "Regulations on tender for remuneration of electricity 
production capacity to be introduced" 
Authority for the subsidy: the Ministry of Economics   
4. Form of the subsidy 
 
Direct grant 
 
5. The annual amount of the subsidy 
 The aid will be granted in the form of  capacity payments between 2015 and 2025. 
 
6. Duration of the subsidy 
 
2015 – 2025. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  G/SCM/N/253/EU/Add.15 
 
- 25 - 
 
  32   DEVELOPMENT OF AIRPORT INFR ASTRUCTURE OF AIRPORT "RIGA"  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Sectoral aid. The aim of th e activity 3.3.1.4 "Development of Airports’ 
Infrastructure" of the Priority 3.3 "Development of  Transport Network of European Significance and 
Promotion of Sustainable Transport", Operational Programme 3 is development of safe, effective, 
adequate air transport infrastructure for growing traffic volume. 
 
Beneficiary of the aid is Riga International airport (RIX) which is a national airport (Category C airport according to the 2005 Airport Guidelines ) with less than 5 million passengers served 
in 2012). The planned investment activities includ e improvement of the airport infrastructure to 
meet safety requirements according to ICAO Category II standard (airport infrastructure allowing airplanes to land and take off in bad weather and emergency situations), to enhance the 
environmental performance of the airport, to impr ove the airside and landside capacity as well as 
to increase the peak hour runway capacity. The total cost of the measures is currently estimated at EUR165 million. The measures will normally be  implemented in 2 phases. The 1st phase will be 
implemented from 2007-2013 Cohesion Fund financin g (the start of the works is planned in 2011) 
and the 2nd phase from 2014-2020 Cohesion Fund financing. The maximum aid amount is 75% of 
the planned investments and will mostly come from the Cohesion Fund financing.   
3. Background and authority for the subsidy 
 
The legal basis of the Activity 3.3.1.4 is Regulation s of the Cabinet of Ministers of the Republic of 
Latvia No 1476 "Regulations on Activity 3.3.1.4 "Development of Airports’ Infrastructure" of 
Complement to the Operational Programme "Infrastructure and Services"" dated 15 December 2009, including amendments to the Regulations dated 18 January 2011 and 18 December 2012. The eligibility period of expenditures for a contribution from the public funds is 31 August 2015. 
Authority for the subsidy: Ministry of Transport of the Republic of Latvia. 
 4. Form of the subsidy 
 Direct grant.  
5. The annual amount of the subsidy 
 
In 2011, the aid amounted to LVL 0.275 million from the national budget. In 2012, the aid 
amounted to LVL 0.34 million from the national budget. 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy: The European Commission on 25 July 2011 adopted a Decision No. C(2011)5097 on approving a major European Union project No. 2010LV161PR001 
Development of Infrastructure of Riga International Airport, stating that the maximum sum of 
public contribution for the proj ect must not exceed LVL 50 208 921. 
 
6. Duration of the subsidy 
 
2010 – 2020.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
33   NEXT GENERATION NETWORK FOR RURAL AREA 
1. Period covered by the notification 
 
2011 and 2012.  G/SCM/N/253/EU/Add.15 
 
- 26 - 
 
  2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Sectoral aid. The direct recipient of the aid is the wholesale operator of the network, State Joint Stock Company Latvia State Radio and Television Centre. Indirect 
beneficiaries will be electronic communication operators utilising the new network for offering retail 
services to end users, and business end users. State Aid scheme "Next Generation Network for rural area" (hereafter - NGN aid scheme) foresees 
support to development and establishment of the infrastructure to provide wholesale broadband 
services in rural areas of Latvia, which are currently not served and where there are no plans for development of next generation network (hereafter  - NGN) in the near future– three year period. 
During the planned activities optical (fibre) backhaul  infrastructure will be developed, which allows 
a long period of use before becoming obsolete (2 0 years) and thus provides a reliable technology 
platform for the construction of the next generation access network. The NGN project foresees totally setting up 500 connection points to NGN (approximately 7000 km 
of fibre). The estimated overall costs of rolling out the network are estimated at LVL 83.6 million 
(€119 million), Phase 1 thereof require LVL 18.6 million (€26.4 mi llion), phase 2 LVL 65 million (€92.6 million). 
The planned overall aid amount is LVL 71.5 million (€101.71 million) (LVL 16.2 million/€23 million 
for phase 1, LVL 55.3 million/€78.71 million for phase 2). Financial means will be obtained from the European Regional Development Fund.  
3. Background and authority for the subsidy 
 
Sustainable Development Strategy of Latvia until 2030; National Strategic Reference 
Framework 2007-2013; Operational Programme "Infrastructure and Services" 2007-2013; and the 
related Regulation of the Cabinet of Minist ers No.79 of 24 January 2012 "Regulations for 
Operational Programme "Infrastructure and services" 3.2.2.3.Activity "Provision of equal access 
opportunities to electronic communications services in the whole territory of the country 
(development of Broadband network)"". Authority for the subsidy: Ministry of Transport of the Republic of Latvia.  
4. Form of the subsidy 
 
Direct grant. 
 
5. The annual amount of the subsidy 
 
Implementation of project activities has no t started (annual budget for years 2011and 2012 
is "0").  6. Duration of the subsidy 
 2012 – 2020.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
34   SUPPORT TO R&D PROJECTS FINANC ED WITHIN THE FRAMEWORK OF EUREKA 
PROGRAMME  
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and Development. The scheme is foreseen for supporting SMEs eligible 
for aid under the scheme by co-financing their proj ects to promote investments in R&D activities, 
such as industrial research, experimental development and technical feasibility studies.   G/SCM/N/253/EU/Add.15 
 
- 27 - 
 
  3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 9 October 2007 No. 678 "Procedure for granting 
state aid to R&D projects financed within the framework of EUREKA programme". 
Authority for the subsidy: the Ministry of Education and Science. 
 4. Form of the subsidy 
 Grant.  5. The annual amount of the subsidy 
 In 2011, the aid amounted to LVL 0.15 million from the national budget. In 2012, the aid 
amounted to LVL 0.09 million from the national budget. 
 
6. Duration of the subsidy 
 
2006 – 2012. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 35   MARKET-ORIENTED RESEARCH PROGRAMME 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Research and Development. This framework provides support to small and 
medium-sized companies for industrial research and experimental development projects. Aid 
intensity for industrial research project amounts to 60 %, while for an experimental development project it is 35 % of total eligible costs. 
 
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 5 February 2008 No. 72 "Procedure for allocation of 
funding to market-oriented research projects". Authority for the subsidy: the Ministry of Education and Science.  
4. Form of the subsidy 
 
Direct grant 
 
5. The annual amount of the subsidy 
 
In 2011, the aid amounted to LVL 0.16 million from the national budget. In 2012, the aid 
amounted to LVL 0.11 million from the national budget.  6. Duration of the subsidy 
 2008 – 2012.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 G/SCM/N/253/EU/Add.15 
 
- 28 - 
 
  36   SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING COMPETITIVENESS OF 
ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP AND SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING COMPETITIVENESS OF ENTERPRISES – SUPPORT TO INDIVIDUALLY ORGANIZED TRAINING BY ENTERPRISES 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: Training aid. The activity is aimed at promoting investment in human resources, 
as well as direct participation of the entrepreneurs in improvement of labour force qualification, 
thereby enhancing productivity, contributing to the labour market and business development and raising the competitiveness of the economy. The ta rget group of the activity is persons employed 
by the entrepreneur and employers - entrepreneur s. Funding is granted to general and special 
training organized by an individual or in partnership.  
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 25 March 2008 No. 203 "Regulations on the operational programme "Human resources and employment" complement sub-activity 1.3.1.1.1 
"Support to training for employed in partnership"  and sub-activity 1.3.1.1.4 "Support to training 
for employed for enhancing competitiveness of enterprises - support to individually organized training by enterprises" (amendments by the Regulations of the Cabinet of Ministers of 
30 March 2010 No.323);  
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 
4. Form of the subsidy 
 Grant. 
 
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted to LVL 0,16 million. 
 6. Duration of the subsidy 
 2008 – 2015.  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
37   SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING COMPETITIVENESS OF 
ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP  
1. Period covered by the notification 
 
2011 and 2012.  2. Policy objective/to whom the subsidy is provided 
 Policy objective: Training aid. The activity is ai med at promotion of investment in human resources 
and direct participation of entrepreneurs and societies (except the society which is a union of 
Latvia’s employer organisations, which is authorised to act at national level) in improvement of 
qualification of their staff, thus increasing work efficiency, promoting development of labour market and business, building economic competitiveness.  
 G/SCM/N/253/EU/Add.15 
 
- 29 - 
 
  3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 30 March 2010 No. 328 "Regulations on the operational programme "Human resources and em ployment" complement sub-activity 1.3.1.1.1  
"Support to training for employed for enhancing competitiveness of enterprises – support to 
training for employed in partnership" for the seco nd and subsequent rounds of project applications 
selection" (amendments by Regulations of the Cabi net of Ministers of 12 October 2010 No.978, by 
Regulations of the Cabinet of Ministers of 11 October 2011 No.786 and by Regulations of the 
Cabinet of Ministers of 02 October 2012 No.680) Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia  
 
4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 In 2011, the total amount of Direct grant amounted  to LVL 1,62 million. In 2012, the total amount 
of Direct grant amounted to LVL 4,4 million.  
6. Duration of the subsidy 
 
2010 – 2015. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 38   APPLICATION OF REDUCED EXCISE TAX RATES TO BIOFUEL AND FOSSIL FUEL AND BIOFUEL MIXTURES WITH HIGH BIOFUEL ADMIXTURE 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid. The reduced ra te of excise tax on biofuel and on the mix of 
biofuel with fossil fuel is calculated and paid by taxpayers considering conditions that all criteria are made accordingly to the circulation of this product which are necessary to ensure the payment of import duties.  
Beneficiaries of measure are entities involved in biofuel production and fuel business (wholesale 
and retail sale).   
3. Background and authority for the subsidy 
 
The Law on Excise Tax and the Regulations of the Cabinet of Ministers of 21 December 
2011"Procedures for circulation of bio products containing fuel and for administration of relevant 
excise duty" Authority for the subsidy: the Ministry of Finance.  
4. Form of the subsidy 
 
The aid is granted as application of reduced excise  tax rates for biofuel and fossil fuel and biofuel 
mixtures with high biofuel admixture. 
 5. The annual amount of the subsidy 
 In 2011, the total amount of Direct grant amounted  to LVL 19.99 million. In 2012 the total indirect 
aid (excise tax reduction) was planned about LVL 0.75 million.  G/SCM/N/253/EU/Add.15 
 
- 30 - 
 
  6. Duration of the subsidy 
 
2011-2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
39   OPEN TENDER "TECHNOLOGY TRANSITION FROM FOSSIL TO RENEWABLE ENERGY RESOURCES"  
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid. The tender is  aimed at reduction of nitric dioxide emissions 
ensuring transition from technologies using fossil fuel energy sources to technologies using 
renewable energy sources.  3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of 12 May 2010 No. 441 "Regulation of the open call 
"Technology transition from fossil to renewable en ergy resources" of projects financed by the 
Climate change financial mechanism"   
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 
Direct grant.  
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amou nted to LVL 0.492 million. In 2012, the total 
amount of Direct grant amounted to LVL 0.887 million. 
 6. Duration of the subsidy 
 2010 – 2012.  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
40   OPEN TENDER "COMPLEX SOLUTIONS TO REDUCE GREENHOUSE GAS EMISSIONS IN 
INDUSTRIAL BUILDINGS"  
1. Period covered by the notification 
 
2011 and 2012.  2. Policy objective/to whom the subsidy is provided 
 Policy objective: Environmental aid. The tender is aimed at reduction of greenhouse gas emissions by improving energy efficiency of premises, pr oduction technological equipment and production 
technologies of manufacturing businesses (including service provision). 
 G/SCM/N/253/EU/Add.15 
 
- 31 - 
 
  3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 8 June 2010 No. 521 "Regulation of the open call 
"Complex solutions to reduce greenhouse gas emi ssions in industrial buildings" of projects 
financed by the Climate change financial mechanism"   
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 
Direct grant.  
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amou nted to LVL 3.203 million. In 2012, the total 
amount of Direct grant amounted to LVL 2.849 million. 
 6. Duration of the subsidy 
 2010 — 2012.  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
41   OPEN CALL "USE OF RENEWABLE ENER GY RESOURCES IN TRANSPORT SECTOR"  
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid. The tender is aimed at reduction of greenhouse effect gas 
emissions ensuring adjustment of vehicles to th e use of energy obtained from renewable energy 
sources.  
 
3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 21 September 2010 No. 898 "Regulation of the open 
call "Use of renewable energy resources in transp ort sector" of projects financed by the Climate 
change financial mechanism"   Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 Within the framework of the subsidy programme  there are no concluded project contracts. 
 6. Duration of the subsidy 
 2010 – 2012.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 G/SCM/N/253/EU/Add.15 
 
- 32 - 
 
  42   OPEN TENDER "LOW ENERGY CONSUMPTION BUILDINGS " 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid. The objective of  the tender is the reduction of carbon dioxide 
emissions, by performing construction of low energy consumption buildings, as well as reconstruction or simplified renovation of existing buildings.  
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 28 December 2010 No. 1185 "Regulation of the open 
call "Low Energy Consumption Buildings" of projects financed by the Climate change financial 
mechanism" Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 Direct grant. 
 
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amou nted to LVL 0.538 million. In 2012, the total 
amount of Direct grant amounted to LVL 0.301 million.  
6. Duration of the subsidy 
 
2010 — 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
43   OPEN TENDER "USE OF RENEWABLE ENERGY RESOURCES FOR REDUCTION OF GREENHOUSE GAS EMISSION" 
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid.  The objective of the tender is the reduction of greenhouse gas 
emission by means of introducing technologies, in which renewable energy resources are used for 
production of thermal energy and electricity, as well as by means of ensuring transition from 
technologies, in which fossil energy resources are used, to technologies, where renewable energy 
resources are used. 
 3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 4 January 2011 No. 12 "Regulation of the open call 
"Use of Renewable Energy Resources for Reduct ion of Greenhouse Gas Emission" of projects 
financed by the Climate change financial mechanism" 
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development. 
 4. Form of the subsidy 
 Direct grant.  G/SCM/N/253/EU/Add.15 
 
- 33 - 
 
  5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amou nted to LVL 0.616 million. In 2012, the total 
amount of Direct grant amounted to LVL 5.132 million. 
 
6. Duration of the subsidy 
 
2011 — 2012. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 44   OPEN TENDER "COMPLEX SOLUTIONS FOR REDUCTION OF GREENHOUSE GAS 
EMISSIONS" 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid. The objective of  the tender is the reduction of carbon dioxide 
emission by means of introducing technologies, in which renewable energy resources are used for production of thermal energy and electricity, or by  ensuring transition from technologies, in which 
fossil energy resources are used, to technologies, where renewable energy resources are used, 
and by improving energy efficiency of buildings. 
 
3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 14 August 2012 No. 559 "Regulation of the open call 
"Complex Solutions for Reduction of Greenhouse Gas Emissions" of projects financed by the 
Climate change financial mechanism" 
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development. 
 
4. Form of the subsidy 
 
Direct grant. 
 
5. The annual amount of the subsidy 
 In 2011 and 2012, the subsidy was not granted. 
 
6. Duration of the subsidy 
 
2012 — 2014. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A. 
 45   ACTIVE EMPLOYMENT MEASURE FOR CERTAIN PERSON GROUPS  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for disadvantaged or disabl ed workers. Measures for specific groups of 
persons shall provide for employment of unemplo yed persons at workplaces co-financed by the 
State in order to help the unemployed persons comprehend the requirements of the labour G/SCM/N/253/EU/Add.15 
 
- 34 - 
 
  market, to promote integration into society and settlement in permanent work of the target group 
of unemployed persons. The aim of the measure is to facilitate the development of sustainable and long-term working places for unemployed with lower productivity level and preserve their skills and competencies. 
The subsidy is provided to employers in order to employ disadvantaged workers in accordance with 
the requirements specified in Commission Regu lation No 800/2008 and to employers who employ 
unemployed persons with disability, in accordance with the requirements specified in Commission 
Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of 
the Treaty to de minimis aid (hereinafter – Commission Regulation No 1998/2006).Subsidy per 
unit: During implementation of measures the Agency ensures financial aid for the monthly salary of employees to the employers who employ disa dvantaged workers. The financial aid for the 
monthly grant is granted in the amount of 50% from the payments of salaries during a period of 
one year. The monthly grant does not exceed the amount of the minimum monthly salary determined in the State. 
 Agency ensures the following financial ai d to the employers who employ unemployed 
persons with disability:  
1) the grant of a monthly salary to the hired unemployed persons with disability. The grant 
shall be not less than the amount of the minimum monthly salary determined in the State; 
2) the grant of a monthly salary to the work managers who work with the hired unemployed 
persons with disability. The grant shall be gr anted in the amount of 50% from the minimum 
monthly salary determined in the State; 
3) a one-time grant for the purchase of equipmen t and facilities, as well as for the production 
and purchase of technical aids, in order to adapt the workplaces for the hired unemployed 
persons with disability. The grant shall be granted in conformity with the estimate for the 
adaptation of the workplace submitted by the employer, which conforms to the opinion of 
the occupational therapist, but no more than in the amount of LVL 500 for the adaptation of 
one workplace; 
4) the costs of the services of sign language interpreters, assistants, occupational therapists 
and other specialists, if such have been provided in order to employ unemployed persons with disability; 
5) for the covering of expenses for the perfor mance of health examinations to the unemployed 
persons with disability, if they have been provided for in the regulatory enactments 
regarding mandatory health examinations. 
The employer receives financial aid for employment  of one unemployed person with disability for 
not more than for 36 months.  
3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 25 January 2011 No. 75 "Regulations Regarding the 
Procedures for Organising and Financing of Active Employment Measures and Preventative 
Measures for Unemployment Reduction and Principles for Selection of Implementers of Measures". 
Authority of the subsidy: the Ministry of Welf are, the State Employment Agency (therefore-
Agency). 
Authority for the subsidy: the Ministry of  Welfare, the State Employment Agency 
 4. Form of the subsidy 
 Direct grant.  5. The annual amount of the subsidy 
 In 2011 and 2012 there was no aid granted.  
6. Duration of the subsidy 
 
2011 – 2014. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A 
 G/SCM/N/253/EU/Add.15 
 
- 35 - 
 
  46   SUPPORTED EMPLOYMENT MEASURES FOR UNEMPLOYED PERSONS FROM SPECIFIC 
TARGET GROUPS 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for disadvantaged or disabled  workers. The subsidy is provided to employers 
in order to employ disadvantaged workers in a ccordance with the requirements specified in 
Commission Regulation No 800/2008 and to employers who employ unemployed persons with 
disabilities. 
The goal of the activity is to facilitate integration of unemployed persons into society, their competitiveness and permanent employment, as well as improvement of their work skills 
organizing active employment measures for certain groups of people. 
Subsidy per unit:  1) grant for the monthly salary of employees for the employers, who employs disadvantaged 
workers – 50% of monthly salary but not exceeding the amount of the minimum monthly 
salary determined by the State; 
2) grant for the monthly salary of employees  for the employers, who employs unemployed 
persons with disabilities – not less than the amount of the minimum monthly salary 
determined by the State and up; 
3) grant for the monthly salary for work managers , who work with the hired unemployed 
persons with disability - 50% of minimum monthly salary determined by the State; 
4) lump-sum  grant for working place adjustment for unemployed persons with disabilities – up 
to 500 LVL; 
If necessary, additional payments for services of sign language interpreters, assistants, 
occupational therapists and other specialists granted to employers who employs unemployed 
persons with disabilities.  3. Background and authority for the subsidy 
 The Regulations of the Cabinet of Ministers of 8 April 2008 No. 258 "Regulations on the operational 
programme "Human resources and employment" comp lement sub-activity "Supported employment 
measures for unemployed persons from specific target groups" 
Authority for the subsidy: the Ministry of  Welfare, the State Employment Agency 
 
4. Form of the subsidy 
 
Direct grant.  
5. The annual amount of the subsidy 
 
In 2011 subsidy amounted to LVL 0.172 million and in 2012 – to LVL 0.169 million. 
 
6. Duration of the subsidy 
 
2008 – 2013. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 47   SUPPORT TO SCIENCE AND RESEARCH 
1. Period covered by the notification 
 
2011 and 2012. 
 G/SCM/N/253/EU/Add.15 
 
- 36 - 
 
  2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and development. The ob jective of the activity is to support practical 
research projects which would promote integration of the science and manufacturing and the 
implementation of the research results in accordance with the priority directions 
(agrobiotechnology, information sciences, biomedicine and pharmacy, power industry, environmental science, energy and environment, pu blic health etc.) of science specified in the 
State. 
 3. Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers of 7 July 2009 No. 752 "Regulations on the operational 
programme "Entrepreneurship and Innovation" complement activity 2.1.1.1.  "Support to science 
and research"" 
Authority for the subsidy: the Ministry of Education and Science, the State Education Development 
Agency.  
4. Form of the subsidy 
 
Direct grant.  
5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amounted  to LVL 7.96 million. In 2012, the total amount 
of Direct grant amounted to LVL 11.85 million. (Aid granted solely from the  European Regional 
Development Fund, no resources from the state budget involved).  
6. Duration of the subsidy 
 
2009 – 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
48   OPEN CALL "DEVELOPMENT OF TECHNOLOGIES TO REDUCE GREENHOUSE EFFECT GAS EMISSIONS"  
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and development. Th e objective of the tender is to promote the 
availability of products and technologies reducing greenhouse gas emissions in Latvia. 
 3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of 22 December 2009 No. 1492 "Regulation of the open 
call "Development of technologies to reduce green house effect gas emissions" of projects financed 
by the Climate change financial mechanism" (amended by The Regulation of the Cabinet of 
Ministers of 25 September 2012 No. 658).   
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 
Direct grant. 
 G/SCM/N/253/EU/Add.15 
 
- 37 - 
 
  5. The annual amount of the subsidy 
 
In 2011, the total amount of Direct grant amou nted to LVL 0.589 million. In 2012, the total 
amount of Direct grant amounted to LVL 0.506 million. 
 
6. Duration of the subsidy 
 
2010 – 2012.  
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 49   DEVELOPMENT OF NEW PRODUCTS AN D TECHNOLOGIES – AID FOR SECURING 
INDUSTRIAL PROPERTY RIGHTS  
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and development. Within  the framework of the sub-activity micro, small 
and medium-sized enterprises may receive financing. The goal of the sub-activity is to secure the industrial property rights regarding the successfu lly developed new products (including goods and 
services) or technologies (including technological processes). 
Financing is provided for the registration of indu strial property rights for the following groups: 
invention, design sample, topography of semi-conductor goods and plan species. 
 
3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of 7 October 2008 No. 834 "Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.1.2.2 
"Development of new products and technologies" sub-activity 2.1.2.2.1 "Development of new products and technologies" and sub-activity 2.1.2.2.3 "Development of new products and 
technologies – aid for securing industrial proper ty rights" (amendments by the Regulation of the 
Cabinet of Ministers of 3 March 2009 No.218; the Regulation of the Cabinet of Ministers of 1 
February 2011 No.103 and the Regulation of th e Cabinet of Ministers of 1 November 2011 
No.837). 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia  
4. Form of the subsidy 
 
Direct grant. 
 
5. The annual amount of the subsidy 
 
No aid was granted in 2011 and 2012. 
 6. Duration of the subsidy 
 
2008 – 2015.  
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  G/SCM/N/253/EU/Add.15 
 
- 38 - 
 
  50   DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and development. Within  the framework of the sub-activity commercial 
entities may receive financing for the development of new products or technologies.  Within the framework of the sub-activity projects  may be executed in a partnership of commercial 
entities. If the project is executed in a partnership, each partner will have to meet the 
requirements for project submitter. 
The goal of the sub-activity is to support th e development of new or considerably improved 
products (including goods and services) or technologies (including technological processes). Within 
the framework of the sub-activity the aid is grante d for the development of the following groups of 
new products or technologies: 1) industrial research;  
2) experimental development. 
 3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 7 October 2008 No. 834 "Regulations on the 
operational programme "Entrepreneurship and Innovation" complement activity 2.1.2.2 "Development of new products and technologies" sub-activity 2.1.2.2.1 "Development of new 
products and technologies" and sub-activity 2.1.2.2.3 "Development of new products and 
technologies – aid for securing industrial proper ty rights" (amendments by the Regulation of the 
Cabinet of Ministers of 3 March 2009 No.218; th e Regulation of the Cabinet of Ministers of 
1 February 2011 No.103 and the Regulation of  the Cabinet of Ministers of 1 November 2011 
No.837). Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia 
 
4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 In 2011, the total amount of Direct grant amounted  to LVL 2,08 million. In 2012, the total amount 
of Direct grant amounted to LVL 0,49 million.  
6. Duration of the subsidy 
 
2008 – 2015. 
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 51   OPEN CALL "DEVELOPMENT OF TECHNOLOGIES REDUCING GREENHOUSE GAS EMISSIONS AND IMPLEMENTATION OF PILOT PROJECTS" 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and development. The objective of the tender is to promote 
development of products and technologies redu cing greenhouse gas emissions and transfer of 
know-how and technologies by supporting impl ementation of pilot projects in Latvia. G/SCM/N/253/EU/Add.15 
 
- 39 - 
 
   
3. Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers of 2 August 2011 No. 608 "Regulation of the open call 
"Development of Technologies Reducing Greenho use Gas Emissions and Implementation of Pilot 
Projects" for Projects Financed by the Climate Change Financial Instrument" Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development 
 
4. Form of the subsidy 
 Direct grant. 
 
5. The annual amount of the subsidy 
 
In 2011, there was no aid granted. In 2012, the total amount of Direct grant amounted to 
LVL 0.097 million.  
6. Duration of the subsidy 
 
2011 – 2013.  
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 
52   AID FOR EVALUATION OF BREEDING MATERIAL IN ORDER TO INTRODUCE INTEGRATED CROP CULT IVATION TECHNOLOGIES 
1. Period covered by the notification 
 
2011 and 2012.  
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Research and development. The aim of the activity is development of novel 
products and technologies with a view to improving of the quality of agricultural raw materials and 
a long-term economic stability of agricultural enterprises in environmentally friendly farming conditions. Beneficiaries of the measure are research institutions. 
 
3. Background and authority for the subsidy 
 Regulations of the Cabinet of Ministers No 1 12 of 14 February 2012 „The State support to 
agriculture and allocation procedure". 
Authority for the subsidy: Authority for the subsidy is the Ministry of Agriculture, the Rural Support Service. 
 
4. Form of the subsidy 
 
Direct grant. 
 5. The annual amount of the subsidy 
 
In 2012, the total amount of Direct grant amounted to LVL 0.1 million. 
 6. Duration of the subsidy 
 2012.-2013.  
 
7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A  G/SCM/N/253/EU/Add.15 
 
- 40 - 
 
  53   AID FOR TECHNOLOGY TRANSFER AND VENTURE CAPITAL SECTORS 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 
Policy objective: Risk capital. The regulation prescribes the provisions for granting aid in the 
technology transfer sector (seed capital funds) and venture capital sector (start-up capital funds 
and venture capital funds) according to the agr eement concluded between the government of the 
Republic of Latvia and European Investment Fund  on the implementation of the Investment Fund 
of European Union Structural Funds. The goal of seed capital funds is to improve the technology 
transfer sector in Latvia. The goal of start-up ca pital funds and venture capital funds is to improve 
the venture capital sector in Latvia. Within the framework of start-up capital funds, seed capital 
funds and venture capital funds micro, smal l and medium-sized enterprises may receive 
investments.   
3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 25 November 2008 No. 983 "Regulation for granting 
aid in technology transfer and venture capital sectors" (amendments by the Regulation of the 
Cabinet of Ministers of 21 June 2011 No.489; th e Regulation of the Cabinet of Ministers of 
29 May 2012 No.382) Authority for the subsidy: Investment Fund of European Union and from 2012 it was changed to 
the Latvian Guarantee Agency. 
 4. Form of the subsidy 
 Provision of risk capital  5. The annual amount of the subsidy 
 In 2011 the total amount of venture capital investments amounted to LVL 2,208 million. In 2012 the total amount of venture capital in vestments amounted to LVL 3,957 million. 
 
6. Duration of the subsidy 
 
2008 – 2013.  
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 54   SHORT-TERM EXPORT CREDIT INSURANCE  
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective/to whom the subsidy is provided 
 Policy objective: short-term export credit insurance. The purpose of the measure is to provide 
short-term export credit guarantee coverage to Latvian exporters. A guarantee covers up to 90% 
of the deferred payment, but cannot exceed 1 million EUR. A guarantee covers losses which arise from political and commercial risks of the export transaction. Guarantee is provided only to so 
called non-marketable risk countries in accordance with Communication from the Commission to 
the Member States on the application of Articl es 107 and 108 TFEU to short-term export-credit 
insurance. 
 G/SCM/N/253/EU/Add.15 
 
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  3. Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of  12 May 2009 No. 436 "Regulation on short-term 
export credit guarantees" (amendments by the Regulation of the Cabinet of Ministers of 
15 December 2009 No/1470; the Regulation of the Cabinet of Ministers of 29 June 2010 No/572 
and the Regulation of the Cabinet of Ministers of 6 March 2012 No.164). Authority for the subsidy: the Ministry of Economics, Latvian Guarantee agency 
 
4. Form of the subsidy 
 Export credit risk insurance (financial instrument is not provided as subsidy in any form)  
 
5. The annual amount of the subsidy 
 
In 2011, the total amount was LVL 1.265 million, in 2012 – LVL 2.038 million.  
 6. Duration of the subsidy 
 2009-2013.  7. Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A  
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