G/SCM/N/284/EU/Add.16  
 
28 August 2015  
(15-4330)  Page: 1/40  
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/284/EU/Add.16 
 
- 2 - 
 
  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   SUPPORT TO INVESTMENTS FOR DEVELOPMENT IN THE SPECIALLY 
ASSISTED AREAS ............................................................................................................. 5  
4   DEVELOPMENT OF NEW PRODUC TS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION ................ 6  
5   HIGH VALUE ADDED INVESTMENT  – THIRD AND FO URTH ROUND .............................. 6  
6   CLUSTERS PROGRAMME .............................................................................................. 7  
7   COMPETENCE CENTRES ............................................................................................... 8  
8   BUSINESS INCUBATORS .............................................................................................. 9  
9   EXTERNAL MARKETING ............................................................................................... 9  
10   EXTERNAL MARKETING – STRENGTHENING INTERNATIONAL 
COMPETITIVENESS OF  INDUSTIR ES .............................................................................. 10  
11   CORPORATE INCOME TAX RELIEF ............................................................................ 11  
12   INVESTMENT LOANS FOR MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES 
AND COOPERATIVE PARTNERSHIPS WHICH PROVIDE AGRICULTURAL SERVICES 
FOR RISING DE VELOPMENT ........................................................................................... 12  
13   MICRO-LOANS PROGRAMME .................................................................................... 12  
14   BUSINESS START-UPS PROGRAMME ........................................................................ 13  
15   CREATING VALUE-ADDED AGRICULTURAL PRODUCTS............................................. 14  
16   SCHEME REGARDING THE INCREASE OF EFFICIENCY OF CENTRALISED HEAT 
SUPPLY SYST EMS ........................................................................................................... 14  
17   DEVELOPMENT OF COGENERATION POWER PLANTS UTILISING RENEWABLE 
ENERGY SO URCES .......................................................................................................... 15  
18   DEVELOPMENT OF SEPARATE  WASTE COLLECTIO N SYSTEMS .................................. 16  
19   SUPPORT FOR BUSINESS CR EATION AND DE VELOPMENT ....................................... 17  
20   BUSINESS COMPETITIVENESS SUPPORT PROGRAMME ............................................ 17  
21   "DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION" 
2ND ROUN D ................................................................................................................... 1 8 
22   GUARANTEES TO ENTREPRENEURS AND COOPERATIVE SOCIETIES OF 
AGRICULTURAL SERVICES TO  IMRPOVE COMPETITIVENESS .......................................... 19  
23   MEZZANINE  LOANS ................................................................................................. 20  
24   DEVELOPMENT OF AIRPORT INFRAS TRUCTURE OF AIRPORT "RIGA" ...................... 20  
25   NEXT GENERATION NE TWORK FOR RU RAL AR EA .................................................... 22 
26   SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP ........................................................................................................... 23
 G/SCM/N/284/EU/Add.16 
 
- 3 - 
 
  27   APPLICATION OF REDUCED EXCISE TAX RATES TO BIOFUEL AND FOSSIL 
FUEL AND BIOFUEL MIXTURES WITH  HIGH BIOFUEL ADMIXTURE ................................. 23  
28   OPEN TENDER "TECHNOLOGY TRANSITION FROM FOSSIL TO RENEWABLE 
ENERGY RESO URCES"  .................................................................................................... 24  
29   OPEN TENDER "COMPLEX SOLUTIONS FOR GREENHOUSE GAS EMISSION 
REDUCTION IN MANUFACT URING BUILDI NGS" ............................................................. 25  
30   OPEN TENDER "LOW ENERGY CONSUMPTION BUILDINGS" ..................................... 25  
31   OPEN TENDER "USE OF RENEWA BLE ENERGY RESOURCES FOR REDUCTION 
OF GREENHOUSE GAS EMISSION" .................................................................................. 26  
32   OPEN TENDER "COMPLEX SOLUTIONS FOR REDUCTION OF GREENHOUSE 
GAS EMISSI ONS" ........................................................................................................... 27  
33   ACTIVE EMPLOYMENT MEASURE FOR CERTAIN PERSON GROUPS ............................ 27  
34   SUPPORTED EMPLOYMENT MEASURES FOR UNEMPLOYED PERSONS FROM 
SPECIFIC TARGET GROUPS ............................................................................................ 29  
35   OPEN CALL FOR PROJECT APPLIC ATIONS "SUPPORT TO SCIENCE AND 
RESEARCH" .................................................................................................................... 30 
36   OPEN TENDER "DEVELOPMENT OF TECHNOLOGIES REDUCING GREENHOUSE 
GAS EMISSI ONS" ........................................................................................................... 30  
37   DEVELOPMENT OF NEW PRODUC TS AND TECHNOLOGIES – AID FOR 
SECURING INDUSTRIAL PROPERTY RI GHTS .................................................................. 31  
38   DEVELOPMENT OF NEW PR ODUCTS AND TECHNOLOGIES ........................................ 32  
39   OPEN TENDER "DEVELOPMENT OF TECHNOLOGIES REDUCING GREENHOUSE 
GAS EMISSIONS AND IMPLEMENTATI ON OF PILOT PROJECTS" ..................................... 33  
40   AID FOR EVALUATION OF BREEDING  MATERIAL IN ORDER TO INTRODUCE 
INTEGRATED CROP CULTIV ATION TECHNO LOGIES ........................................................ 33  
41   AID FOR TECHNOLOGY TRANSFER AND VENTURE CAPITAL SECTORS ...................... 34  
42   MICROL OANS .......................................................................................................... 35  
43   SHORT-TERM EXPORT  CREDIT INSURANCE ............................................................. 35  
44   MEASURES FOR BUSINESS OR SELF-EMPLOYMENT SART-UPS FOR 
UNEMPLOYED ................................................................................................................. 36  
45   YOUTH GUARANTEE MEASURE ................................................................................. 37  
46   OPEN TENDER "REDUCTION OF GREENHOUSE GAS EMISSIONS IN 
TRANSPORT SECTOR – SUPPORT FOR INTR ODUCTION OF ELECTRICAL VEHICLES 
AND THEIR CHARGING INFRASTRUCTURE" .................................................................... 38  
47   NORWEGIAN FINANCIAL MECHANISM 2009-2014 LV06 PROGRAMME 
"GREEN INDUSTRY INNOVATI ON" ................................................................................. 39  
48   SUPPORT TO DEVELOPMENT OF GREEN JOB CREATION AND 
ENTREPRENEURSHIP ..................................................................................................... 39  
 
 
LVL 1 = EUR 0,702804 
 G/SCM/N/284/EU/Add.16 
 
- 4 - 
 
   
1  ON APPLICATION OF TAXES IN FREE PORTS AND SPECIAL ECONOMIC ZONES  
1.  Period covered by the notification 
 
2013 and 2014. 
 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 
 Law on the Application of Taxes in Free Ports and Special Economic Zones. 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 2013, the total amount of the subsidy constitu ted LVL 5.42 million under this scheme. In 2014, 
the forecasted amount of the subsidy is EUR 7.71 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 
 
2013 and 2014. 
 
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, Article 17. 
Authority for the subsidy: the Ministry of Economics.  
                                               
1 Provisional figures as final figures of 2014 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/284/EU/Add.16 
 
- 5 - 
 
  4.  Form of the subsidy 
 
Tax relief.  
5.  The annual amount of the subsidy 
 
The total amount of the aid in 2013 was LVL 2.12 million. In 2014, the forecasted amount of the 
subsidy is EUR 3.01 million.2 
 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   SUPPORT TO INVESTMENTS FOR DEVELOPMENT IN THE SPECIALLY ASSISTED AREAS 
1.  Period covered by the notification 
 
2013 and 2014. 
 2.  Policy objective/to whom the subsidy is provided 
 Policy objective: Aid for regional development.  The activity is aimed to promote business 
development in specially assisted areas, thereby reducing the unfavorable 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 Regulation of the Cabinet of Ministers No. 197 "Regulation on the operational program 
"Entrepreneurship and Innovation" compliment activity 2.3.2.2. "Support to investments for development in the specially assisted areas"" of 24 February 2009 (amendments by the regulation 
of Cabinet of Ministers No.1387 of 8 December 2009, No. 881 OF 21 September 2010 and No. 279 
of 21 May of 2013).  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 2013, the total amount of Direct grant amounted to EUR 0,0929 million   
6. Duration of the subsidy 
 
2008 – 2013. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
                                               
2 Provisional figures as final figures of 2014 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/284/EU/Add.16 
 
- 6 - 
 
  4   DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION 
1.  Period covered by the notification 
 
2013 and 2014. 
 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 Regulation of the Cabinet of Ministers No . 658 "Regulation 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 technologi es in production" of 12th of August 2008" 
(amendments by the Regulations of the Cabinet of Ministers No.217 of 3 March 2009; the 
Regulations of the Cabinet of Ministers No.879 of 21 September 2010 and the Regulations of the 
Cabinet of Ministers No.540 of 7 August 2012). 
 
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 2013 there are no payments made. In 2014, the total amount of Direct grant amounted to 
EUR 2,8 million (Aid granted solely from the Comm unity funds. No resources from the state budget 
involved). 
 
6.  Duration of the subsidy 
 2008 – 2015. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 5   HIGH VALUE ADDED INVESTMENT – THIRD AND FOURTH ROUND 
1.  Period covered by the notification 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development.  The activity is aimed to encourage 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/284/EU/Add.16 
 
- 7 - 
 
  3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers No.817 "Regulation on the operational programme "Entrepreneurship and Innovation" complement acti vity 2.1.2.4 "High value added investment" of 
19 October 2011 (amendments by the Regulation of the Cabinet of Ministers No.434 of 
26 June 2012 and the Regulation of the Cabine t of Ministers No.137 of 12 March 2013, No. 455 of 
30 July 2013, No.1177 of 22 October 2013, No.106 of 18 February 2014, No.351 of 30 June 2014, 
No.653 of 21 October 2014).  
 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 2013 there are no payments made. In 2014 - in th e third round of the activity the total grant 
amount – EUR 10,9 million and in the fourth round – EUR 25,3 million.  
6.  Duration of the subsidy 
 
2013 – 2015. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 6  CLUSTERS PROGRAMME 
1.  Period covered by the notification 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development ( de minimis  aid). The purpose of the measure is to 
facilitate the cooperation between sector's unrelat ed entrepreneurs and institutions of education, 
research and development thus promoting growth  of competitiveness, export, innovation and 
development of new products of industries.  
Support is given to a foundation performing functi ons 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 No.788 ""Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.3.2.3."Clusters programme" of 
11 October 2011 (amendments by the Regulation of Cabinet of Ministers No.41 of 27 January 2015).  
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/284/EU/Add.16 
 
- 8 - 
 
  5.  The annual amount of the subsidy 
 
2013 – total grant amount EUR 1,1 million. 2014 – total grant amount EUR 1,2 million. 
 
6.  Duration of the subsidy 
 
2011 – 2015. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 7   COMPETENCE CENTRES 
1.  Period covered by the notification 
 
2013 and 2014. 
 
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 center – a legal person established by at least 2 scientific 
institutions and 3 entrepreneurs.  
3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers No . 361 "Regulation on the operational programme 
"Entrepreneurship and Innovation" complement sub- activity 2.1.2.1.1."Competence centers" of 
13 April 2010 (amendments by the Regulation of the Cabinet of Ministers No.102 of 
1 February 2011 No.344 of 15 May 2012, No.702 of 9 October 2012, No.1277 of 12 November 2013, No.639 of 14 October 2014). 
 
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 
 
2013 – total grant amount – EUR 2,4 million. 
2014 – total grant amount – EUR 18,7 million.  
6.  Duration of the subsidy 
 
2010 – 2015.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 G/SCM/N/284/EU/Add.16 
 
- 9 - 
 
  8   BUSINESS INCUBATORS 
1.  Period covered by the notification 
 
2013 and 2014. 
 
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development ( de minimis aid). The 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 in business incubators. 
 
3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers No . 835 "Regulation on the operational programme 
"Entrepreneurship and Innovation" complement activity 2.3.2.1 "Business incubators" of 7 October 2008 (amendments by the Regulation of the Cabinet of Ministers No.789 of 
11 October 2011 and No.409 of 15 July 2014). 
 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 
 2013 – total grant amount – EUR 0,9 million. 2014 – total grant amount – EUR 1,4 million.  
6.  Duration of the subsidy 
 
2008 – 2014. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 9   EXTERNAL MARKETING 
1.  Period covered by the notification 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: The purpose of the de minimis  aid measure is to support foreign markets-related 
activities for entering the foreign markets - external marketing abroad - and measures to promote 
businesses in the international supply chain, promote participation of Latvian businessmen 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 No.582 "Regulation on the operational programme 
"Entrepreneurship and Innovation" complement sub- activity 2.3.1.1."Acquiring external markets – 
external marketing" of 17 June 2009  (amendments by the Regulation of the Cabinet of Ministers G/SCM/N/284/EU/Add.16 
 
- 10 - 
 
  No.1377 of 30 November 2009, No.889 of 21 Se ptember 2010, No.109 of 14 February 2012, 
No.827 of 4 December 2012, No.239 of 13 of May 2014 and No.637 of 14 October 2014).  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 
 2013 – total grant amount – EUR 2,6 million. 2014 – total grant amount – EUR 2,5 million. 
 
6.  Duration of the subsidy 
 
2009 – 2015. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 10   EXTERNAL MARKETING – STRENGTHEN ING INTERNATIONAL COMPETITIVENESS OF 
INDUSTIRES 
1.  Period covered by the notification 
 
2013 and 2014. 
 2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: The purpose of the de minimis  aid measure is to contribute to strengthening the 
competitiveness of industries by supporting bu sinesses to enter foreign markets, ensuring 
activities of foreign economic representative office s of Latvia, promoting attraction of foreign direct 
investment and promoting international competitiveness of Latvia as an international tourism 
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 No.887 ""Regulation on the operational programme "Entrepreneurship and Innovation" complement acti vity 2.3.1.1 "Acquiring external markets" sub-
activity 2.3.1.1.2."Acquiring external markets – strengthening international competitiveness of 
industries" of 21 September 2010 (amendments by the Regulation of the Cabinet of Ministers 
No.869 of 15 November 2011, No.826 of 4 December 2012, No.280 of 9 June 2014, No.638 of 
14 October 2014). 
 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 
 2013 – total grant amount – EUR 1,7 million. 2014 – total grant amount – EUR 1,5 million.  G/SCM/N/284/EU/Add.16 
 
- 11 - 
 
  6.  Duration of the subsidy 
 
2010 – 2015.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 
11   CORPORATE INCOME TAX RELIEF 
1.  Period covered by the notification 
 
2013 and 2014. 
 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 EUR 4,27 million (from 1 January 2014 minimum investment amount raised to EUR 10 million) in tangible assets related to the extension of an 
existing establishment, diversification of the output of an establishment into new products and 
services and a fundamental change in the overall pr oduction process of an existing establishment. 
 
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, 6 June 2013, 6 November 2013, 4 December 2014).  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 application of tax relief in 2013 – 21 projects, but no aid was granted. In 2014 no investment projects were approved.  
6.  Duration of the subsidy 
 
The decisions on approvement of investment projec ts for the application of tax relief would be 
taken till 31/12/2020. 
 Period of investment project could last till 31/12/2025. 
 
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. 
 G/SCM/N/284/EU/Add.16 
 
- 12 - 
 
  12   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 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development ( de minimis  aid). The Regulation is aimed at 
improving access of economic performers regist ered in Latvia to financing thus promoting 
economic development in the Republic of Latvia.  
 3.  Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers No . 1065 "Regulation on loans for micro, small and 
medium-sized enterprises and cooperative partnerships which provide agricultural services for 
rising development" of 15 September 2009 (amend ments by the Regulations of the Cabinet of 
Ministers No.949 of 5 October 2010, No.184 of 13 March 2012, No.1434 of 10 December 2013, No.416 of 22 July 2014, No.772 of 16 December 2014).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum". 
 4.  Form of the subsidy 
 Soft loan.  
5.  The annual amount of the subsidy 
 
Till 2014 soft loans for total amount of EUR 8,7 mi llion were granted. Aid element in the form of 
grant of total EUR 0,57 million are provid ed; grants are no longer allocated. 
 
6.  Duration of the subsidy 
 
2009 – 2015. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  13   MICRO-LOANS PROGRAMME 
1.  Period covered by the notification 
 
2013 and 2014. 
 
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development ( de minimis  aid). The aim is to increase the 
possibility of micro- financial support to business start-up and development, thus contributing to 
the development of Latvian economy. Lo ans are given to micro-enterprises. 
 
3.  Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers No.698 "Regulations on micro- loans and grants within 
the frame of Swiss-Latvian Cooperation Programme  of the individual project "Micro-lending 
programme" of 6 September 2011 (amendments by Regulation of Cabinet of Ministers No.1403 of 10 December 2013 and No.337 of 17 June 2014). 
 
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  G/SCM/N/284/EU/Add.16 
 
- 13 - 
 
  4.  Form of the subsidy 
 
Soft loan.  
5.  The annual amount of the subsidy 
 
In 2013 the total amount of loans formed EU R 2,3 million and in 2014 – EUR 1,76 million. 
 
6.  Duration of the subsidy 
 2009 – 2015. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 14   BUSINESS START-UPS PROGRAMME 
1.  Period covered by the notification 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: The aim of the de minimis  aid programme is to increase economic activity in the 
country, to develop knowledge and skills of busine ss start-up, as well as to provide the necessary 
financial support for business start-up.  
Support is given to newly established enterprises and private persons planning to start commercial 
activity.  3.  Background and authority for the subsidy 
 The Regulations of the Cabinet of Ministers No.293 "Regulations on the operational programme "Human Resources and Employment" complement activity 1.3.1.2".  
 
Support for self-employment and business start-ups" of 31 March 2009 (amendments by the Regulations of the Cabinet No.754 of Ministers of 7 July 2009, No.1403 of 8 December 2009, 
No.998 of 26 October 2010, No.363 of 10 May 2011, No.360 of 2 July 2013, No.1431 of 
10 December 2013, No.227 of 29 April 2014, No.750 of 9 December 2014).  Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum". 
 
4.  Form of the subsidy 
 
Soft loan. 
 5.  The annual amount of the subsidy 
 In 2013 loans for total EUR 1,25 million are grante d. In 2014 loans for total EUR 4,77 million are 
granted. The aid consists of interest rate subsid y (determined based on the credit quality grade of 
the safe – harbour premium rate). 
 
In 2013 the interest rate subsidy draws up to EUR 573,6 thousand. In 2014 the interest rate subsidy draws up to EUR 864,5 thousand. 
 
6.  Duration of the subsidy 
 
2009 – 2015. 
 G/SCM/N/284/EU/Add.16 
 
- 14 - 
 
  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A.  
15  CREATING VALUE-ADDED AGRICULTURAL PRODUCTS 
1.  Period covered by the notification 
 
2013 and 2014. 
 2.  Policy objective/to whom the subsidy is provided 
 
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- Annex I products of the EC Treaty. The scheme will apply to micro, small and medium-sized 
enterprises (SMEs) and to other undertakings, which have more than 250 employees and a net 
turnover exceeding 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 "Proce dures by which State and European Union Aid 
is Granted for Rural and Fisheries Development". 
 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 2013, the total amount of direct grant amou nted to EUR 4.347 million. In 2014, the total 
amount of direct grant amounted to EUR 3.298 million.  
6.  Duration of the subsidy 
 
2009 – 30.06.2014.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 
16  SCHEME REGARDING THE INCREASE OF EFFICIENCY OF CENTRALISED HEAT SUPPLY SYSTEMS  
1.  Period covered by the notification 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development for public service providers. The aid scheme 
supports investment projects which aim to increase the efficiency of heat supply production, 
reduce losses of heat energy in the transmissi on and distribution systems and to foster the 
replacement of fossil fuel with renewable fuel. 
 G/SCM/N/284/EU/Add.16 
 
- 15 - 
 
  Within the framework of the activity the project a pplication can be submitted by an enterprise that 
supplies public services and has a license to produce or to transmit and distribute thermal energy if it is required by the regulations in the field of energy.  
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 3.5.2.1.1 "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" (amendments by the Regulations of the Cabinet of Ministers of 17 June 2009 No.566; the Regulations of the Ca binet of Ministers of 30 March 2010 No.329; the 
Regulations of the Cabinet of Ministers of 26 Ju ly 2011 No.584; the Regulations of the Cabinet of 
Ministers of 24 April 2012 No.290 and the Regu lations of the Cabinet of Ministers of 
29 October 2013 No.1181) and the Regulations of  the Cabinet of Ministers of 31 August 2010 
No. 824 "Regulations on the Supplement Activity 3.5.2.1.1 "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 26 July 2011 No.583; the Regulations of the Cabinet 
of Ministers of 20 September 2011 No.724; the Regulations of the Cabinet of Ministers of 
24 April 2012 No.289; the Regulations of the Cabine t of Ministers of 26 February 2013 No.109; the 
Regulations of the Cabinet of Ministers of 29 October 2013 No.1182; the Regulations of the 
Cabinet of Ministers of 10 December 2013 No.1406 and the Regulations of the Cabinet of Ministers 
of 12 August 2014 No.453).  
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 2013 the total amount of Direct grant amounted to EUR 12,35 million, in 2014 – 
EUR 15,01 million. 
 6.  Duration of the subsidy 
 2009 – 2014.  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
17   DEVELOPMENT OF COGENERATION POWE R PLANTS UTILISING RENEWABLE ENERGY 
SOURCES  
1.  Period covered by the notification 
 
2013 and 2014.  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. 
 G/SCM/N/284/EU/Add.16 
 
- 16 - 
 
  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; th e Regulations of the Cabinet of Ministers of 
20 April 2010 No.380 and the Regulations of the Cabi net of Ministers of 11 October 2011 No.795) 
and the Regulations of the Cabinet of Ministers of 29 October 2013 No.1183).  
 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 2013 the total amount of Direct grant amounted  to EUR 4,8 million, in 2014 – EUR 5,25 million. 
(Measure is financed solely from the European Union Cohesion Fund.) 
 
6.  Duration of the subsidy 
 
2009 – 2014. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  18   DEVELOPMENT OF SEPARATE WASTE COLLECTION SYSTEMS 
1.  Period covered by the notification 
 
2013 and 2014. 
 
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 Services".  
 Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development. 
 
4.  Form of the subsidy 
 
Direct grant. 
 G/SCM/N/284/EU/Add.16 
 
- 17 - 
 
  5.  The annual amount of the subsidy 
 
In 2013, the total amount of Direct grant amou nted to LVL 1.551 million. In 2014, the total 
amount of Direct grant amounted to LVL 2.587 million (Measure 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 – 2014.  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
19   SUPPORT FOR BUSINESS CREATION AND DEVELOPMENT 
1.  Period covered by the notification 
 
2013. 
 2.  Policy objective/to whom the subsidy is provided 
 
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 9 February 2010 No. 132 "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)". 
 
Authority for the subsidy is Ministry of Agriculture, the Rural Support Service.  
4.  Form of the subsidy 
 
Direct grant. 
 
5.  The annual amount of the subsidy 
 In 2013, the total amount of direct grant amounted to EUR 2.614 million. 
 
6.  Duration of the subsidy 
 
2008 – 2013. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  20   BUSINESS COMPETITIVENESS SUPPORT PROGRAMME  
1.  Period covered by the notification 
 
2013 and 2014. 
 
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 to provide support to small and medium-sized enterprises ensuring access to finance to improve competitiveness of enterprises. G/SCM/N/284/EU/Add.16 
 
- 18 - 
 
  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 Ministers No.659 of  20 July 2010, No.246 of 7 May 2013, No.1432 of 
10 December 2013, No.374 of 1 July 2014, No.787 of 16 December 2014). 
 
Authority for the subsidy: State JSC "Latvian Development Finance Institution".  4.  Form of the subsidy 
 Soft loan.  
5.  The annual amount of the subsidy 
 
In 2013 soft loans for the total amount of EUR 1,39 million are issued. 
In 2014 soft loans for the total amount of EUR 10,3 million are issued. 
 6.  Duration of the subsidy 
 
2009 – 2015. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
21  "DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION" 2ND ROUND  
1.  Period covered by the notification 
 
2013 and 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. Th e activity is aimed to support 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 Regulation of the Cabinet of Ministers 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" of 21 September 2010 (amendments by the Regulations 
of the Cabinet of Ministers No.62 of 18 Ja nuary 2011 and No.541 of 7 August 2012).  
 
Authority for the subsidy: the Ministry of Econom ics, the Investment and Development Agency of 
Latvia. 
 
4.  Form of the subsidy 
 
Direct grant. 
 G/SCM/N/284/EU/Add.16 
 
- 19 - 
 
  5.  The annual amount of the subsidy 
 
2013 – total grant amount – EUR 9 million. 2014 – total grant amount – EUR 2,8 million. 
 
6.  Duration of the subsidy 
 
2010 – 2014. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 22   GUARANTEES TO ENTREPRENEURS AND COOPERATIVE SOCIETIES OF 
AGRICULTURAL SERVICES TO  IMRPOVE COMPETITIVENESS 
1.  Period covered by the notification 
 
2013 and 2014. 
 2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: De minimis  aid for regional development. The purpose of the measure is to 
provide companies with credit resources to implement their projects in case their available resources are insufficient 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" 
that replaced the Regulation of the Cabinet of Ministers of 24 March 2009 No.269 (amendments by 
Regulation of Cabinet of Ministers No.283 of 28 May 2013, No.1518 of 17 December 2013, No.414 
of 22 July 2014, No.539 of 9 September 2014). 
 
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 
 
For credit guarantees the subsidy equivalent is calculated as the difference between the safe-
harbor premium rate corresponding credit quality grade and applied premium rate.  
 In 2013 Latvian Guarantee agency has issued guaran tees in total amount of EUR 22,1million (aid 
element in 2013 – EUR 488,99 thousand), and in 2014 – in total amount of EUR 10,5 million (aid 
element in 2014 – EUR 227,32 thousand).   6.  Duration of the subsidy 
 2009-2014.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 G/SCM/N/284/EU/Add.16 
 
- 20 - 
 
  23   MEZZANINE LOANS 
1.  Period covered by the notification 
 
2013 and 2014. 
 
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Aid for regional development. The aid programme is aimed to provide Latvian 
entrepreneurs long-term financing in addition to the granted loan. Mezzanine loans is a 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 Regulation of the Cabinet of Ministers No.241 "Rules on mezzanine loans for entrepreneurs to 
improve the competitiveness" of 13 May 2014 that re placed Regulation of the Cabinet of Ministers 
No.613 of 2 August 2011 (amendments by the Regu lation of the Cabinet of Ministers No.463 of 
12 August 2014 and No.40 of 27 January 2015).  
Authority for the subsidy: Latvian Guarantee agency. 
 4.  Form of the subsidy 
 Soft loan.  
5.  The annual amount of the subsidy 
 
In 2014 the aid element of 5 soft loans issued was EUR 1,621 million. In 2013 the aid element of 7 loans issued was EUR 4,67 million. 
 
6.  Duration of the subsidy 
 
2011-2015. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A. 
 24  DEVELOPMENT OF AIRPORT INFRAS TRUCTURE OF AIRPORT "RIGA"  
1.  Period covered by the notification 
 
2013-2014. 
 
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. 
 
The planned investment activities include 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 improve the airside an d landside capacity and security as well as to 
increase the peak hour runway capacity.  
 G/SCM/N/284/EU/Add.16 
 
- 21 - 
 
  The total cost of the measures is currently es timated at EUR165 million. The measures will be 
implemented in 2 phases. The 1st phase is implemented with 2007-2013 Cohesion Fund financing and the 2nd phase - with 2014-2020 Cohesion Fund financing.  
In line with Commission decision State aid SA.36297 (2013/N) – Latvia – amendments to the 
project of infrastructure development at the Riga international airport (SA.30358, N 41/2010) aid intensity is defined 75.2% for the entire Phase 1 of the RIX modernisation as revised (including 
the financing for the new fire-fighters building). The aid intensity calculation was done on the basis 
of the following figures: (a) planned total aid amount EUR 71 624 904 for Phase 1 of the 
modernisation project (including EUR 7 153 571 covered by the 6.03.2013 notification) and (b) 
total cost of Phase 2 of the modernisation project amounting to EUR 95 257 474 (including 
EUR 8 815 756 covered by the 6.03.2013 notification). 
 The beneficiary is state joint-stock company Riga International Airport. Riga International Airport is 
a legal entity operating under the Commercial Law of  the Republic of Latvia and is 100% owned by 
the Government of Latvia. Shareholder's rights at Riga International Airport are represented by the 
Ministry of Transport of the Republic of Latvia.  
 
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 December 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 
 
Received public funding: 
 
Funding, EUR 2013 2014 
Cohesion fund 15 873 454 19 319 060 
State budget 3 217 008 3 916 538 
 
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.  G/SCM/N/284/EU/Add.16 
 
- 22 - 
 
  25   NEXT GENERATION NETWORK FOR RURAL AREA 
1.  Period covered by the notification 
 
2013 and 2014. 
 
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 are electronic communication operators utilising the new network for offering retail services to end users. 
 
State Aid scheme "Next Generation Network for rural area" (hereafter - NGN aid scheme) foresees support to development and establishment of the broadband infrastructure to provide wholesale 
broadband services in rural areas of Latvia, whic h 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 (fib er) backhaul infrastructure is developed, which 
allows a long period of use before becoming obsolete (20 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 fiber). The estimated overall costs of rolling out the network are estimated at €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 Ministers No.79 of 24 January 2012 "Regulations for Operational 
Programme "Infrastructure and services" 3.2.2.3.Acti vity "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 
 In 2013, the total amount of Direct grant am ounted to €975 065.69 (from ERDF). In 2014, the 
total amount of Direct grant amounted to €11 922 482.20 (from ERDF). 
 
6.  Duration of the subsidy 
 2012 – 2020. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 G/SCM/N/284/EU/Add.16 
 
- 23 - 
 
  26   SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING COMPETITIVENESS OF 
ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP 
1.  Period covered by the notification 
 
2013 and 2014. 
 2.  Policy objective/to whom the subsidy is provided 
 Policy objective: Training aid. The activity is aimed to promote 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.  
3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers No . 328 "Regulation on the operational programme 
"Human resources and employment" 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 second and subsequent rounds of project applications selection" of 30 March 2010 (amendments by Regulation of the Cabinet of Ministers No.166 of 
12 October 2010, No.786 of 11 October 2011, No.680 of 02 October 2012, No.585 of 
13 August 2013 and No.1407 of 10 December).   
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 
 
2013 – total grant amount – EUR 7,5 million. 
2014 – total grant amount – EUR 5,6 million. 
 6.  Duration of the subsidy 
 2010 – 2015.  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
27   APPLICATION OF REDUCED EXCISE TAX RATES TO BIOFUEL AND FOSSIL FUEL AND 
BIOFUEL MIXTURES WITH HIGH BIOFUEL ADMIXTURE 
1.  Period covered by the notification 
 
2013 and 2014.  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. 
 Beneficiaries of measure are entities involved in biofuel production and fuel business (wholesale 
and retail sale).  
 G/SCM/N/284/EU/Add.16 
 
- 24 - 
 
  3.  Background and authority for the subsidy 
 
The Law on Excise Duties and Regulations of the Cabinet of Ministers No. 1176 "Procedures for the 
Handling of Fuel Containing Bio-products and Admi nistration of the Relevant Excise Duty", adopted 
21 December 2010. 
 Authority for the subsidy is 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 
 The total indirect aid (excise duty reduction) in 2013 and 2014 was 0.17 mln euros and 0.23 mln euros accordingly. 
 
6.  Duration of the subsidy 
 2011-2014. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 28   OPEN TENDER "TECHNOLOGY TRANSITION FROM FOSSIL TO RENEWABLE ENERGY 
RESOURCES"  
1.  Period covered by the notification 
 
2013 and 2014. 
 
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Environmental aid. The tender is aimed at reduction of carbon dioxide (CO2) 
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 Tender 
"Technology Conversation from Fossil to Renewable energy resources" for the 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 2013, the total amount of Direct grant amounted to LVL 0.155 million. In 2014, there was no aid granted. The Project implementation was closed in 2014. 
 
6.  Duration of the subsidy 
 
2010 – 2014. 
 G/SCM/N/284/EU/Add.16 
 
- 25 - 
 
  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A.  
29   OPEN TENDER "COMPLEX SOLUTIONS FOR GREENHOUSE GAS EMISSION 
REDUCTION IN MANUFACTURING BUILDINGS" 
1.  Period covered by the notification 
 
2013.  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). 
 3.  Background and authority for the subsidy 
 The Regulations of the Cabinet of Ministers of 8 June 2010 No. 521 "Regulation of the Open Tender "Complex Solutions for Greenhouse Gas emission reduction in Manufacturing Buildings" for Projects financed by the Climat e 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 2013, the total amount of Direct grant amounted to LVL 0.313 million. In 2014, there was no 
aid granted.  
 6.  Duration of the subsidy 
 2010 — 2013.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A.  
30  OPEN TENDER "LOW ENER GY CONSUMPTION BUILDINGS" 
1.  Period covered by the notification 
 
2013 and 2014. 
 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 Tender "Low Energy Consumption Buildings"  for Projects financed by the Climate Change 
Financial Instrument". 
 
Authority for the subsidy: the Ministry of the En vironmental Protection and Regional Development. 
 G/SCM/N/284/EU/Add.16 
 
- 26 - 
 
  4.  Form of the subsidy 
 
Direct grant.  
5.  The annual amount of the subsidy 
 
In 2013, the total amount of Direct grant amount ed to LVL 0.32 million. In 2014, there was no aid 
granted.  
 6.  Duration of the subsidy 
 
2010 — 2013. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
31   OPEN TENDER "USE OF RENEWABLE ENERGY RESOURCES FOR REDUCTION OF 
GREENHOUSE GAS EMISSION" 
1.  Period covered by the notification 
 
2013 and 2014. 
 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 
Tender "Use of Renewable Energy Resources for Reduction of Greenhouse Gas Emission" for 
Projects financed by the Climat e 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 2013, the total amount of Direct grant amou nted to LVL 4.404 million. In 2014, the total 
amount of Direct grant amounted to EUR 0.653 million. Project implementation was closed in 
2014. 
 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/284/EU/Add.16 
 
- 27 - 
 
  32   OPEN TENDER "COMPLEX SOLUTIONS FOR REDUCTION OF GREENHOUSE GAS 
EMISSIONS" 
1.  Period covered by the notification 
 
2013 and 2014. 
 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 
Tender "Complex Solutions for Reduction of Gree nhouse Gas Emissions" 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 2013, the total amount of Direct grant amounted  to LVL 2.48 million. In 2014, the total amount 
of Direct grant amounted to EUR 14.33 million.  
6.  Duration of the subsidy 
 
2012 — 2015. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 33   ACTIVE EMPLOYMENT MEASURE FOR CERTAIN PERSON GROUPS  
1.  Period covered by the notification 
 
2013 - 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Aid for disadvantaged or disabled workers. Measur es for specific groups of persons shall provide 
for employment of unemployed persons at workplaces co-financed by the State in order to help 
the unemployed persons comprehend the requirements of the labour 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 facilitat e 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).  
 G/SCM/N/284/EU/Add.16 
 
- 28 - 
 
  Subsidy per unit: During implementation of measures the Agency ensures financial aid for the 
monthly salary of employees to the employers wh o employ disadvantaged 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 no t exceed the amount of the minimum monthly 
salary determined in the State. 
 Agency ensures the following financial aid to th e employers who employ unemployed persons with 
disability: 
 
 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; 
 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; 
 a one-time grant for the purchase of equipment 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 711 EUR for the adaptation of 
one workplace; 
 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; 
 for the covering of expenses for the performa nce 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). 
 4.  Form of the subsidy 
 
Direct grant. 
 5.  The annual amount of the subsidy 
 2013 - LVL 1.388 million; 2014 - EUR 1.561 million.  
6.  Duration of the subsidy 
 
2013 – 2014.  
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 G/SCM/N/284/EU/Add.16 
 
- 29 - 
 
  34   SUPPORTED EMPLOYMENT MEASURES FOR UNEMPLOYED PERSONS FROM SPECIFIC 
TARGET GROUPS 
1.  Period covered by the notification 
 
2013 - 2014. 
 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:  
 grant for the monthly salary of employees fo r the employers, who employs disadvantaged 
workers – 50% of monthly salary but not exceeding the amount of the minimum monthly salary determined by the State; 
 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; 
 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; 
 lump-sum grant for working place adjustment for unemployed persons with disabilities – up 
to 711 EUR.  
 
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 fr om 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 2013 - LVL 1.184 million; 2014 - EUR 2.855 million. 
 
6.  Duration of the subsidy 
 2013 – 2014. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 G/SCM/N/284/EU/Add.16 
 
- 30 - 
 
  35  OPEN CALL FOR PROJECT APPLICATIONS  "SUPPORT TO SCIENCE AND RESEARCH" 
1.  Period covered by the notification 
 
2013 and 2014. 
 
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" first call for Project Applications".  The Regulations of the Cabinet of Ministers of 3 January 2013 No. 14 "Regulations on the 
operational programme "Entrepreneurship and Innova tion" complement activity 2.1.1.1. "Support 
to science and research" second and third call for Project Applications".  
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 2013, the total amount of Direct grant amounted  to EUR 5,40 million. In 2014, the total amount 
of Direct grant amounted to EUR 9,24 million. (A id granted 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. 
 
36   OPEN TENDER "DEVELOPMENT OF TECHNOLOGIES REDUCING GREENHOUSE GAS EMISSIONS"  
1.  Period covered by the notification 
 
2013 and 2014.  
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 
Tender "Development of technologies Reducing Greenhouse Gas Emissions" for Projects financed G/SCM/N/284/EU/Add.16 
 
- 31 - 
 
  by the Climate Change Financial Instrument" (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. 
 5.  The annual amount of the subsidy 
 
In 2013, the total amount of Direct grant amounted to LVL 0.068 million. In 2014, there was no 
aid granted. Project implementation was closed in 2014.  
6. Duration of the subsidy 
 
2010 – 2013.  
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A. 
 
37   DEVELOPMENT OF NEW PRODUCTS AN D TECHNOLOGIES – AID FOR SECURING 
INDUSTRIAL PROPERTY RIGHTS  
1.  Period covered by the notification 
 
2013 and 2014. 
 
2.  Policy objective/to whom the subsidy is provided 
 Policy objective: Research and development. The goal of the sub-activity is to secure the industrial 
property rights regarding the successfully developed new products (including goods and services) 
or technologies (including technological processes).  
Financing is provided to micro, small and medium sized enterprises for the registration of industrial 
property rights for the following groups: inventio n, design sample, topography of semi-conductor 
goods and plan species. 
 
3.  Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers 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 
property rights" of 7 October 2008 (amendments by  the Regulation of the Cabinet of Ministers 
No.218 of 3 March 2009, No.103 of 1 February 2011 and No.837 of 1 November 2011).  
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 
 
2013 – total grant amount – EUR 4 thousand. In 2014 there are no payments made. 
 
6.  Duration of the subsidy 
 2008 – 2015.  G/SCM/N/284/EU/Add.16 
 
- 32 - 
 
  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A.  
38   DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES  
1.  Period covered by the notification 
 
2013 and 2014. 
 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 exec uted 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 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 
property rights" of 7 October 2008 (amendments by  the Regulation of the Cabinet of Ministers 
No.218 of 3 March 2009, No.103 of 1 February 2011 and No.837 of 1 November 2011).  
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 
 
2013 – total grant amount – EUR 6 thousand. 
2014 – total grant amount - EUR 16 thousand. 
 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/284/EU/Add.16 
 
- 33 - 
 
  39   OPEN TENDER "DEVELOPMENT OF TECHNOLOGIES REDUCING GREENHOUSE GAS 
EMISSIONS AND IMPLEMENTATION OF PILOT PROJECTS" 
1.  Period covered by the notification 
 
2013 and 2014. 
 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. 
 
3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of  2 August 2011 No. 608 "Regulation of the Open 
Tender "Development of Technologies Reducing Greenhouse 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 2013, the total amount of Direct grant amou nted to LVL 1.489 million. In 2014, the total 
amount of Direct grant amounted to EUR 0.14 million. 
 6.  Duration of the subsidy 
 
2011 – 2014. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
40   AID FOR EVALUATION OF BREEDING MATERIAL IN ORDER TO INTRODUCE 
INTEGRATED CROP CULT IVATION TECHNOLOGIES 
1.  Period covered by the notification 
 
2013 and 2014. 
 2.  Policy objective/to whom the subsidy is provided 
 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 1524 of 17 December 2013 "The State support to 
agriculture and allocation procedure". 
 
Authority for the subsidy is the Ministry of Agriculture, the Rural Support Service.  
4.  Form of the subsidy 
 
Direct grant. G/SCM/N/284/EU/Add.16 
 
- 34 - 
 
  5.  The annual amount of the subsidy 
 
In 2013, the total amount of direct grant amounted to EUR 0.278 million and in 2014, the total amount of direct grant amounted to EUR 0.406 million. 
 
6.  Duration of the subsidy 
 
2013.-30.06.2014. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 41   AID FOR TECHNOLOGY TRANSFER AND VENTURE CAPITAL SECTORS 
1.  Period covered by the notification 
 
2013 and 2014. 
 
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 fund) and venture capital sector (start-up capital fund and 
venture capital fund, and growth capital funds).. The goal of seed capital and start-up capital funds 
is to provide early stage investments and to develop venture capital sector in Latvia. Risk capital 
funds and growth capital funds contribute to the provision of access to later stage investments and 
to the development of venture capital sector. Within  the framework of start-up capital funds, seed 
capital funds, growth capital and venture capital funds micro, small and medium-sized enterprises 
may receive investments. Soft loans are provided by seed capital fund. 
 3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers No. 983 "Regulation for granting aid in technology 
transfer and venture capital sectors" of 25 Nove mber 2008 (amendments by the Regulation of the 
Cabinet of Ministers No.489 of 21 June 2011, No.382 of 29 May 2012, No.1496 of 
17 December 2013, No.415 of 22 July 2014 and No.792 of 23 December 2014). 
 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 
 Subsidy equivalent is equal to amount of inve stments. Till 2014 investments of total EUR 31 
million are made. The amount of subsidy – EUR 24,5 million. 
  
6.  Duration of the subsidy 
 2008 – 2013. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 G/SCM/N/284/EU/Add.16 
 
- 35 - 
 
  42  MICROLOANS 
1.  Period covered by the notification 
 
2013 and 2014. 
 
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: The regulation prescribes the provisions for granting microloans to micro, small 
and medium-sized enterprises to increase their competiveness.  3.  Background and authority for the subsidy 
 The Regulation of the Cabinet of Ministers No. 327 "Regulation for granting microloans for improvement of business competition" of 18 J une 2013 (amendments by the Regulation of the 
Cabinet of Ministers No.1396 of 10 December 2013 ; the Regulation of the Cabinet of Ministers 
No.335 of 17 June 2014; the Regulation of the Cabinet of Ministers No. 33 27 January 2015).  
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 soft loans.  
5.  The annual amount of the subsidy 
 
Subsidy equivalent is equal to amount of soft loans. Till 2014 microloans for total amount of 
EUR 0,4 million are granted. The volu me of subsidy – EUR 0,2 million. 
 6.  Duration of the subsidy 
 
2013 – 2015. 
 7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
43  SHORT-TERM EXPORT CREDIT INSURANCE  
1.  Period covered by the notification 
 
2013 and 2014. 
 
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. 
 
3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers No . 436 "Regulation on short-term export credit 
guarantees" of 12 May 2009 (amendments by the Re gulation of the Cabinet of Ministers No.1470 
of 15 December 2009, No.572 of 29 June 2010, No.164 of 6 March 2012 and No.81 of 
17 February 2015). 
 Authority for the subsidy: the Ministry of Economics, Latvian Guarantee agency. G/SCM/N/284/EU/Add.16 
 
- 36 - 
 
  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 
 
No subsidies provided. The volume of expo rt credit guarantees – EUR 13,3 million. 
 
6.  Duration of the subsidy 
 2009-2015. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 44  MEASURES FOR BUSINESS OR SELF-EMPLOYMENT SART-UPS FOR UNEMPLOYED  
1.  Period covered by the notification 
 
2013 – 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
The measure aims to provide advisory and financial support measures to help the unemployed who 
have previous educational background and knowledge of business to take up business or self-
employment and successfully work in the selected field for at least two years.  
The measure is intended for the unemployed registered at the State Employment Agency who: 
 
- Have obtained vocational secondary education or higher education in business, 
business management or an equal field; 
- Have acquired vocational education programmes that provide the knowledge required 
in the field of business management; 
- Have obtained vocational secondary education or higher education and acquired 
informal education programme in business management-related field. 
 During the measure the unemployed receive the necessary assistance and support for start-up of a 
business or self-employment (consultations on preparing and developing a business plan 
(20 consultations in 6 weeks).  If an expert selected by the Agency has positive ly assessed the viability of the business plan, the 
unemployed receives the necessary support from the State Employment Agency: 
 
- Consultations in the first year of implementing self-employment or business 
(20 consultations); 
- A business grant for implementation of  the business plan – not exceeding 
EUR 2845,74 according to the approved estimate; 
- A monthly grant at the early stage of implementation (the first six months) – in the 
amount of the State determined minimum wage. 
 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 fr om specific target groups". 
 Authority for the subsidy: the Ministry of  Welfare, the State Employment Agency. 
 G/SCM/N/284/EU/Add.16 
 
- 37 - 
 
  4.  Form of the subsidy 
 
Direct grant.  
5.  The annual amount of the subsidy 
 
2013 - LVL 0.200 million; 2014 - EUR 0.282 million. 
 
6.  Duration of the subsidy 
 2013 – 2014. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
 45  YOUTH GUARANTEE MEASURE 
1.  Period covered by the notification 
 
2013 – 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
The de minimis  measure aims to promote the integration of unemployed young people in the labor 
market, while promoting the creation of sust ainable jobs and permanent employment of 
unemployed youth.   
Target group: registered unemployed aged between 18 and 29 who have: 
 
- Acquired higher or vocational education; - After acquisition of education have not established employment legal relationships or 
prior to participating in the measure employment legal relationships had been 
established for the time period in total not exceeding twelve months. 
 
Measure lasts for 12 months and is not organized in unskilled and low-skilled work. 
 The employer receives a grant:  
 
- of a monthly salary to the hired persons involved in the measure (EUR 160 for the 
first six months and EUR 100 for the last six months); 
- of a monthly salary to the work managers manager who during the work helps 
unemployed persons acquire the basic abilities and skills necessary for the work. The 
grant shall be granted in the amount of  50% from the minimum monthly salary 
determined in the State; 
- a one-time grant for the purchase of equipment 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. Th e 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 occupati onal therapist, but no more than in the 
amount of 711 EUR for the adaptation of one workplace; 
- for 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; 
- for the covering of expenses for the performance of health examinations to the 
unemployed persons with disability, if they have been provided for in the regulatory 
enactments regarding mandatory health examinations; 
- if necessary, a one-time grant (up to 50 EUR) for personal protective equipment. 
 G/SCM/N/284/EU/Add.16 
 
- 38 - 
 
  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 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 
 
2013 - LVL 1.164 million; 2014 - EUR 0.640 million. 
 6.  Duration of the subsidy 
 2013 – 2014.  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A.  
46  OPEN TENDER "REDUCTION OF GREENHOUSE GAS EMISSIONS IN TRANSPORT 
SECTOR – SUPPORT FOR INTRODUCTION OF ELECTRICAL VEHICLES AND THEIR 
CHARGING INFRASTRUCTURE" 
1.  Period covered by the notification 
 
2013 – 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: Regional aid to promote the re duction of greenhouse gas emission by means of 
supporting introduction of new, industrially manufactured exclusively electrically powered 
passenger cars and establishment of the infrastructu re of charging electrical vehicles in Latvia. 
 
3.  Background and authority for the subsidy 
 
The Regulation of the Cabinet of Ministers of 4 February 2014 No. 78 "Regulation of the Open 
Tender "Reduction of Greenhous Gas Emissions in Transport sector – support for Introduction of 
Electrical Vehicles and Their charging Infrastructu re" 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 2013, there was no aid granted. In 2014, the total amount of Direct grant amounted to 
EUR 0.176 million. 
 
6.  Duration of the subsidy 
 
2013 – 2014. 
 G/SCM/N/284/EU/Add.16 
 
- 39 - 
 
  7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A.  
47  NORWEGIAN FINANCIAL MECHANISM 2009-2014 LV06 PROGRAMME "GREEN 
INDUSTRY INNOVATION" 
1.  Period covered by the notification 
 
2013 – 2014.  2.  Policy objective/to whom the subsidy is provided 
 Policy objective: Regional aid for entrepreneurship competitiveness. The aim is to support implementation of innovative environmen tal technologies, services and goods. 
 
Support is given to companies registered in the Republic of Latvia.  
3.  Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers No. 1442 of December 10, 2014 - "Norwegian financial instrument 2009-2014 "Green Industry Innovation" Open call implementation arrangements". 
 
Authorities for the subsidy: the Ministry of Econ omics, the Investment and Development Agency of 
Latvia. 
 
4.  Form of the subsidy 
 
Direct grant. 
 5.  The annual amount of the subsidy 
 
Within the framework of the programme there wasn't concluded projects contracts in 2013. 
In 2014 the total aid amounted–0,29 million EUR.  
6.  Duration of the subsidy 
 
2013 – 2016. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 N/A. 
 
48  SUPPORT TO DEVELOPMENT OF GREEN JOB CREATION AND ENTREPRENEURSHIP 
1.  Period covered by the notification 
 
2013 – 2014.  
2.  Policy objective/to whom the subsidy is provided 
 
Policy objective: De minimis  aid for entrepreneurship competitiveness. The purpose of the 
measure is to facilitate the establishment and development of viable and competitive businesses in 
Latvian in green technology field, providing th em with the necessary business environment and 
consultancy services. Support is given to small and medium-sized companies incubated at Green Technology Incubator. 
 
3.  Background and authority for the subsidy 
 
The Regulations of the Cabinet of Ministers No. 181 of 2 April 2013 - "Norwegian financial 
instrument 2009-2014 "Green Industry Innovation" implementation arrangements".  G/SCM/N/284/EU/Add.16 
 
- 40 - 
 
  Authorities of the subsidy: the Ministry of Econ omics, the Investment and Development Agency of 
Latvia.  4.  Form of the subsidy 
 Subsidized services and direct grant.  
5.  The annual amount of the subsidy 
 
In 2013 there are no payments made. In 2014 the total aid amounted EUR 0.34 million. 
 
6.  Duration of the subsidy 
 
2013 – 2016. 
 
7.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A. 
  
__________