WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.15
16 November 2011 
 (11-5489) 
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/220/EEC/Add.15 
Page 2  
 
   LATVIA 
	
TABLE OF CONTENTS 
 
Page 
 
I.  ON APPLICATION OF TAXES IN FREE PORTS AND SPECIAL 
ECONOMIC ZONES ............................................................................................................... 4 
II.  AID TO LTD "EKOBRIKETES" – UTILIZATION OF LOCAL BIOMASS 
FOR PRODUCTION OF ENVIRONMENT-FRIENDLY FUEL IN K ĀRSAVA .............. 4  
III. HIGH VALUE ADDED INVESTMENT ................................................................................ 5  
IV.  INVESTMENT LOANS FOR MICRO, SMALL AND MEDIUM-SIZED 
ENTERPRISES AND COOPERATIVE PARTNERSHIPS WHICH PROVIDE AGRICULTURAL SERVICES FOR RISING DEVELOPMENT ...................................... 6  
V.  CREATING VALUE-ADDED AGRI CULTURAL PRODUCTS ........................................ 7  
VI.  ENERGY PRODUCTION FROM AGRICULTURAL AND FORESTRY 
BIOMASS ....................................................................................................................... ........... 7 
VII. OPEN CALL "ENVIRONMENTAL TECHNOLOGIES AND ECO-
INNOVATION" ................................................................................................................... ..... 8 
VIII. DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN 
PRODUCTION .................................................................................................................... ..... 9 
IX.  INDIVIDUAL REGIONAL AID IN F AVOUR OF JSC "OLAINFARM" ...................... 10  
X.  JSC "LATVIJAS FINIERIS" - INVESTMENT AID FOR ENSURING MORE 
ECONOMICAL USE OF LATVIAN WOOD RESOURCES AND FOR CONTRIBUTION IN REDUCTION OF UNEMPLOYMENT LEVEL IN 
SOME REGIONS OF LATVIA ............................................................................................ 11  
XI.  SCHEME REGARDING THE INCREASE OF EFFICIENCY OF 
CENTRALISED HEAT SUPPLY SYSTEMS ..................................................................... 12  
XII. DEVELOPMENT OF COGENERATION POWER PLANTS UTILISING 
RENEWABLE ENERGY SOURCES ................................................................................... 13  
XIII. DEVELOPMENT OF SEPARATE WASTE COLLECTION SYSTEMS ....................... 13  
XIV. SUPPORT FOR BUSINESS CREAT ION AND DEVELOPMENT .................................. 14  
XV. BUSINESS COMPETITIVENESS SUPPORT PROGRAMME ....................................... 15  
XVI. ELECTRIC AND ELECTRONIC WASTE SORTING AND RECYCLING 
FACILITY IN TUME............................................................................................................. 1 6 
XVII. SUPPORT TO INVESTMENTS FOR DE VELOPMENT IN THE SPECIALLY 
ASSISTED AREAS ................................................................................................................ . 17 
XVIII.
 "DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION" 2ND ROUND ............................................................................................. 18  
XIX. SUPPORT FOR FILM PROJECTS AND FILM CULTURE PROJECTS IN 
LATVIA ........................................................................................................................ ........... 19  
XX. SUPPORT FOR PRIVATE OWNERS OF CULTURAL MONUMENTS IN 
THE RESTORATION AND PRESERVATION  OF CULTURAL HERITAGE ............. 19  
XXI. TENDER FOR AID FOR NEW ELECTRICITY GENERATION CAPACITY ............. 20   G/SCM/N/220/EEC/Add.15 
 Page 3 
 
 
  XXII. DEVELOPMENT OF AIRPORT INFRASTRUCTURE OF AIRPORT "RIGA" ......... 21  
XXIII. SUPPORT TO R&D PROJECTS FINANCED WITHIN THE FRAMEWORK 
OF EUREKA PROGRAMME .............................................................................................. 22  
XXIV. MARKET-ORIENTED RESE ARCH PROGRAMME ...................................................... 23  
XXV. SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES – SUPPORT TO TRAINING FOR 
EMPLOYED IN PARTNERSHIP A ND SUPPORT TO TRAINING FOR 
EMPLOYED FOR ENHANCING COMPETITIVENESS OF ENTERPRISES – SUPPORT TO INDIVIDUALLY ORGANIZED TRAINING BY ENTERPRISES ................................................................................................................... .... 23 
XXVI. SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP ........................................................................................ 24  
XXVII. SUPPORT TO PRODUCTION OF BIOFUELS ................................................................. 25  
XXVIII. OPEN TENDER "TECHNOLOGY TRANSITION FROM FOSSIL TO   
RENEWABLE ENERGY RESOURCES" ........................................................................... 26  
XXIX. OPEN TENDER "COMPLEX SOLU TIONS TO REDUCE GREENHOUSE 
GAS EMISSIONS IN INDUSTRIAL BUILDINGS" .......................................................... 27  
XXX. OPEN CALL "USE OF RENEWABLE ENERGY RESOURCES IN 
TRANSPORT SECTOR" ...................................................................................................... 27  
XXXI. ACTIVE EMPLOYMENT MEASURE FOR CERTAIN PERSON GROUPS ................ 28  
XXXII. SUPPORTED EMPLOYMENT MEASURES FOR UNEMPLOYED PERSONS 
FROM SPECIFIC TARGET GROUPS ............................................................................... 29  
XXXIII. SUPPORT TO SCIENCE AND RESEARCH ............................................................... 30  
XXXIV. OPEN CALL "DEVELOPMENT OF TECHNOLOGIES TO REDUCE 
GREENHOUSE EFFECT GAS EMISSIONS". .................................................................. 30  
XXXV. DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
SECURING INDUSTRIAL PROPERTY RIGHTS ............................................................ 31  
XXXVI. DEVELOPMENT OF NEW PROD UCTS AND TECHNOLOGIES ......................... 32  
XXXVII.  AID FOR TECHNOLOGY TRANSFER AND VENTURE CAPITAL 
SECTORS ....................................................................................................................... ......... 33 
XXXVIII.  LIMITED AMOUNTS OF COMPATIBLE AID IN THE FORM OF 
GUARANTEES DURING THE FINANC IAL AND ECONOMIC CRISIS ..................... 34  
XXXIX. INDIVIDUAL STATE GUARANTEE IN FAVOUR OF JSC LIEP ĀJAS 
METALURGS .....................................................................................................................
.... 35 
XL. SHORT-TERM EXPORT CREDIT INSURANCE ............................................................ 36  
	
1 LVL = 0.7028 EUR.   
 G/SCM/N/220/EEC/Add.15 
Page 4  
 
  I. ON APPLICATION OF TAXES IN FR EE PORTS AND SPECIAL ECONOMIC 
ZONES 
 
1. Period covered by the notification 
 
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
  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 Application of Taxes in Free Ports and Special Economic Zones. 
  Authority for the subsidy is the  State Re venue Service and relevant municipalities.   
 4. Form of the subsidy 
 
 Tax relief.   
 5. The annual amount of the subsidy 
  In 2009, the total amount of the subsidy c onstituted LVL 4.01 million under this scheme. In 
2010, the forecasted amount of th e subsidy is LVL 4.01 million.
1 
 6. Duration of the subsidy 
  2002 – 2017.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.    
II. AID TO LTD "EKOBRIKETES" – UTILIZATION OF LOCAL BIOMASS FOR 
PRODUCTION OF ENVIRONMENT-FRIENDLY FUEL IN K ĀRSAVA 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
 The notification concerns the individual ad hoc aid to SIA "Ekobriketes" for the initial 
investment project relating to extension of existi ng establishment which consists of the building for 
production unit of briquettes and granules. The meas ure aims at promoting regional development and 
environmental protection. The notified aid for th e project in question will be granted through the 
                                                      
 
1 Provisional figures as final figures of 2010 are not available yet in cases of tax–related forms of aid 
because according to the national legislation act ual annual figures are obtained in autumn.  G/SCM/N/220/EEC/Add.15 
 Page 5 
 
 
  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 Mechanis m's and Norwegian Financial Mechanism's 
management, implementation, monitori ng, control and evaluation system; 
 
2. Regulations of the Cabinet of Ministers of 21 November 2006 No. 963 on the 
European Economic Area Financial Mechan ism and Norwegian Financial Mechanism 
"Protection of the environment" priority open call's negotiations.  
  Authority for the subsidy is the Ministry of Environment.  
4. Form of the subsidy 
 
 Direct grant.  5. The annual amount of the subsidy  
 
 In 2009, the amount of the subsidy was LVL 0. 07 million. In 2010, the amount of the subsidy 
was LVL 0.05 million. (Aid granted solely from the Community funds. No resources from the state budget involved).  6. Duration of the subsidy 
  2008 – 2011.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
III. HIGH VALUE ADDED INVESTMENT 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
  The activity is aimed at encouraging local entr epreneurs to invest in knowledge or technology 
intensive projects, as well as to attract foreign investment in areas with high added value, thus 
contributing 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 "Entrepreneu rship and Innovation" complement activity 2.1.2.4 "High value 
added investment".   G/SCM/N/220/EEC/Add.15 
Page 6  
 
  4. Form of the subsidy 
 
 Grant.    5. The annual amount of the subsidy 
  In 2009, there was no aid granted.  In 2010, the total amount of direct grant amounted to LVL 20.7 million. (Measure is financed solely from  the European Regional Development Fund.)   
 6. Duration of the subsidy 
  2009 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
IV. 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 
  
 2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
   The Regulation is aimed at improving access of economic performers registered in Latvia to financing thus promoting economic devel opment in the Republic of Latvia.   
  3. Background and authority for the subsidy 
 
 The Regulations of the  Cabinet of Minister s of 15 September 2009 No. 1065 "Regulations on 
loans for micro, small and medium-sized enterp rises and cooperative partnerships which provide 
agricultural services for rising development".   
  
 Authority for the subsidy is the State JS C "Mortgage and Land Bank of Latvia".   
 
4. Form of the subsidy 
  Soft loan.    5. The annual amount budgeted for the subsidy 
  No loans have been granted in 2009, aid element of soft loan is zero. In 2010, the aid element 
of soft loan issued by the State JSC "M ortgage and Land Bank of Latvia" constituted 
LVL 0.03 million.  
6. Duration of the subsidy 
 
 2009 – 2013.   G/SCM/N/220/EEC/Add.15 
 Page 7 
 
 
  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
V. CREATING VALUE-ADDED AGRICULTURAL PRODUCTS 
 
1. Period covered by the notification 
  2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
 The regional aid scheme supports investment proj ects, 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 agricult ural products"" and The Regulation of the 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 is the Ministry of Agriculture, the Rural Support Service.    4. Form of the subsidy 
  Direct grant.   
 
5. The annual amount of the subsidy 
  In 2009, the total amount of direct grant am ounted to LVL 0.15 million. In 2010, the total 
amount of direct grant amounted to LVL 0.47 million. 
 
6. Duration of the subsidy 
  2009 - 2013.   7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
VI. ENERGY PRODUCTION FROM AGRICULTURAL AND FORESTRY BIOMASS 
 1. Period covered by the notification 
  
 2009 and 2010.  G/SCM/N/220/EEC/Add.15 
Page 8  
 
  2. Policy objective/to whom the subsidy is provided 
 
 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 bene ficiary undertaking. The scheme will apply to all 
undertakings irrespective of their size (small, medium and large). 
    3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minist ers of 16 March 2010 No. 268 "Procedures for the 
Allocation of State and European Union Aid unde r Sub-measure "Energy Generation from Biomass 
of Agricultural and Forestry Origin" of Rural Development Programme 2007-2013 Measure "Aid for 
the Creation and Development of Enterprises (includi ng the Diversification of Activities not related to 
Agriculture) "" and The Regulations of the Cabinet of Ministers of 14 July 2009 No. 783 "Procedures by which State and European Union Aid is Gr anted 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 budgeted for the subsidy 
  In 2009, the total amount of direct grant am ounted to LVL 0.18 million. In 2010, the total 
amount of direct grant amounted to LVL 1.43 million. 
 
6. Duration of the subsidy 
  2009 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.   
VII. OPEN CALL "ENVIRONMENTAL TECHNOLOGIES AND ECO-INNOVATION" 
 1. Period covered by the notification 
 
 2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
 The programme is aimed at implementati on 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 Envi ronmental 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 "Environm ental technologies and eco-innovation" of the  G/SCM/N/220/EEC/Add.15 
 Page 9 
 
 
  programme co-financed from the European Econo mic Area Financial Mechanism "Environmental 
Policy Integration Programme in Latvia".   
 Authority for the subsidy is the Ministry of  the Environmental Protection and Regional 
Development.   
 
4. Form of the subsidy 
  Direct grant.    
5. The annual amount of the subsidy 
 
 In 2009, the total amount of direct grant amounted to LVL 0.46 million from which LVL 0.07 million was granted as aid for experiment al development and LVL 0.39 million as aid for 
regional development. In 2010, the total amount of direct grant amounted to LVL 0.67 million from 
which LVL 0.16 million was granted as aid for expe rimental development aid and LVL 0.51 million 
as aid for regional development.   6. Duration of the subsidy 
  2009 – 2011. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
VIII.  DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
  The activity is aimed at supporting deve lopment of new products or technologies in 
manufacturing. Within the framework of the activ ity financing is provide d to operator's initial 
investment in fixed assets directly ensuring implem entation 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, micro-, small-and 
medium-sized enterprises – 45%.  
3. Background and authority for the subsidy 
 
 The Regulations of the Cabinet of Minister s 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".   
 Authority for the subsidy is the Ministry of  Economics, the Investment and Development 
Agency of Latvia. G/SCM/N/220/EEC/Add.15 
Page 10  
 
  4. Form of the subsidy 
 
 Direct grant.    5. The annual amount budgeted for the subsidy 
  In 2009, the total amount of direct grant am ounted to LVL 1.99 million. In 2010, the total 
amount of direct grant amounted to LVL 1.13 m illion. (Aid granted solely from the Community 
funds. No resources from the state budget involved).    
6. Duration of the subsidy 
 
 2008 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.    
IX. INDIVIDUAL REGIONAL AID IN FAVOUR OF JSC "OLAINFARM" 
 
1. Period covered by the notification 
   2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
 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 State Budget". 
   Authority for the subsidy is the Ministry of Economics.      4. Form of the subsidy 
  Prolongation of tax payment debts and write -off of punitive fees related to prolonged tax 
payment debts.    5. The annual amount of the subsidy 
 
 In 2009 and 2010, the aid was granted only in a form of prolongation of tax payment debts. 
The total amount of the aid in 2009 was LVL 0.01  million, the same in 2010 – LVL 0.01 million. 
 6. Duration of the subsidy 
 
 2005 - 2011. 
  G/SCM/N/220/EEC/Add.15 
 Page 11 
 
 
  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
X. JSC "LATVIJAS FINIERIS" - INVESTMENT AID FOR ENSURING MORE 
ECONOMICAL USE OF LATVIAN WOOD RESOURCES AND FOR 
CONTRIBUTION IN REDUCTION OF UNEMPLOYMENT LEVEL IN SOME REGIONS OF LATVIA 
 
1. Period covered by the notification 
  2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
 Ad hoc aid. Tax relief in respect of inv estments 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, tota l 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.    
 Authority for the subsidy is the Ministry of Economics.   
 4. Form of the subsidy 
  Tax relief.    
5. The annual amount of the subsidy 
 
In 2009, there was no aid granted. In 2010, the forecasted amount of the subsidy is 
LVL 0 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 assessmen t of the trade effects of the subsidy 
 
 N/A.  
                                                      
 
2 Provisional figures as final figures of 2010 are not yet available in cases of tax – related forms of aid 
because due to the national legislation the ac tual annual figures are obtained in autumn. G/SCM/N/220/EEC/Add.15 
Page 12  
 
  XI. SCHEME REGARDING THE INCREASE OF EFFICIENCY OF CENTRALISED 
HEAT SUPPLY SYSTEMS 
 
1. Period covered by the notification 
 
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
  The aid scheme supports investment projects wh ich aim to increase the efficiency of heat 
supply production, reduce losses of heat energy in the transmission and distribution systems and to 
foster 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 the 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 " 
 
 Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia.    
4. Form of the subsidy 
 
 Direct grant.    5. The annual amount of the subsidy 
 
 In 2009, the total amount of direct grant am ounted to LVL 1.27 million. In 2010 the total 
amount of direct grant amounted to LVL 1.04 million.  (Measure is financed so lely from the European 
Union Cohesion Fund.)  6. Duration of the subsidy 
  2009 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
  G/SCM/N/220/EEC/Add.15 
 Page 13 
 
 
  XII. DEVELOPMENT OF COGENERATION POWER PLANTS UTILISING 
RENEWABLE ENERGY SOURCES 
 
1. Period covered by the notification 
 
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
  The notified regional aid scheme supports invest ment 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 primary 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 C ogeneration Power Plants Utilising Renewable 
Energy Sources" of the Operational Programme "Infrastructure and Services".  
Authority for the subsidy is the Ministry of  Economics, the Investment and Development 
Agency of Latvia.    4. Form of the subsidy 
 
 Direct grant.   
 5. The annual amount of the subsidy 
  In 2009, there was no aid granted.   In 2010, the total amount of direct grant amounted to LVL 3.37 million. (Measure is financed solely  from the European Union Cohesion Fund.) 
 
6. Duration of the subsidy 
  2009 – 2013.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XIII.  DEVELOPMENT OF SEPARATE WASTE COLLECTION SYSTEMS 
 1. Period covered by the notification 
 
 2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
  The regional aid scheme supports investment projects, which aim at the development of 
separate waste collection systems in the whole territo ry of Latvia. The scheme is expected to increase 
the efficiency of the waste management in Latv ia, 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 G/SCM/N/220/EEC/Add.15 
Page 14  
 
  management sector. More specifically, according to th e regulation, the beneficiaries of the scheme are 
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 conc luded an agreement with a service beneficiary on 
hazardous waste management. 
 
3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minister s 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 is the Ministry of the Environmental Protection and Regional 
Development.    
4. Form of the subsidy 
 
 Direct grant.    5. The annual amount budgeted for the subsidy 
 
 In 2009, there was no aid granted. In 2010, the total amount of direct grant amounted to 
LVL 0.33 million. (Measure is financed solely  from the European Union Cohesion Fund.) 
 6. Duration of the subsidy 
 
 2009 – 2012. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XIV.  SUPPORT FOR BUSINESS CREATION AND DEVELOPMENT 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
  The measure aims at encouraging produc tion of non-agricultural commercial activities 
(business) or employment in the rural area, diversif ying activities that are not related to agriculture, to 
develop alternative income sources and in crease in income levels in rural areas. 
   
3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minist ers 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 for ce till 06.03.2010.) and the Regulations of the Cabinet of Ministers 
of 9 February 2009 No. 132 "Procedure for granting the national and European Union support in the 
form of an open project submission tender fo r the measure "Support for business creation and  G/SCM/N/220/EEC/Add.15 
 Page 15 
 
 
  development (including diversif ication non-agricultural activities)", replacing the Regulations 
No. 300.   Authority for the subsidy is Ministry of Agriculture, the Rural Support Service.    
4. Form of the subsidy 
 
 Direct grant.    5. The annual amount budgeted for the subsidy 
 
 In 2009, the total amount of direct grant amounted to LVL 0.03 million from which LVL 0.02 million was granted as regional develo pment aid and LVL 0.1 million as aid for 
consultancy in favour of SMEs. In 2010, the total amount of direct grant amounted to LVL 0.08 million from which almost LVL 0.08 milli on was granted as regional development aid and 
only LVL 620 as aid for consultancy in favour of SMEs. 
 6. Duration of the subsidy 
  2008 – 2013.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XV. BUSINESS COMPETITIVENE SS SUPPORT PROGRAMME 
 
1. Period covered by the notification 
  2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
  The aid programme related to improvement of business competitiveness is aimed at providing 
support to small and medium-sized enterprises en suring 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 Regul ations of the Cabinet of Ministers of 
17 February 2009 No. 164 "Regulations on loans for improving competitiveness of enterprises"). 
 
 Authority for the subsidy is the State JS C "Mortgage and Land Bank of Latvia".   
	
4. Form of the subsidy 
  Soft loan.    G/SCM/N/220/EEC/Add.15 
Page 16  
 
  5. The annual amount budgeted of the subsidy 
 
 In 2009, the aid element of soft loan issued  by the State JSC "Mortgage and Land Bank of 
Latvia" constituted LVL 1.0 million. In 2010, the aid element of soft loan i ssued by the State JSC 
"Mortgage and Land Bank of Latv ia" constituted LVL 8 000.   
 
6. Duration of the subsidy 
  2008 – 2020.   
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XVI.  ELECTRIC AND ELECTRONIC WASTE SORTING AND RECYCLING FACILITY 
IN TUME 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
  
 The purpose of the Project is to install an electrical and electronic waste sorting and recycling facility in the Tume waste recovery centre with th e overall objective of protecting the environment by 
decreasing electric and electronic equipment waste pollution. Beneficiaries of the project can be legal 
bodies and during the covered period the Project promoter was the Joint Stock Company "BAO". 
  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 Applica tions 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 is the Ministry of the Environmental Protection and Regional 
Development.   
 
4. Form of the subsidy 
  Direct grant.    5. The annual amount of the subsidy 
  In 2010, the total amount of direct grant amounted to LVL 0.08 million.  6. Duration of the subsidy 
 
 2010 - 2011. 
  G/SCM/N/220/EEC/Add.15 
 Page 17 
 
 
  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XVII.  SUPPORT TO INVESTMENTS FOR DE VELOPMENT IN THE SPECIALLY 
ASSISTED AREAS 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
  The activity is aimed at promoting business de velopment in specially assisted areas, thereby 
reducing the unfavourable differences between the re gions and regional areas, as well as contributing 
to a balanced national development. Aid is awarde d for the following initial investments: investments 
in fixed assets and intangible assets. The maximum allowable aid intensity ranges from 40 – 50%, 
depending on the area of project implementation.   3. Background and authority for the subsidy 
 
 The Regulations of the  Cabinet of Mini sters of 20 November 2007 No. 798 "Operational 
programme "Entrepreneurship and Innovation" comple ment 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 Ministers Regulations of 24 February 2009 No. 197 
"Regulations on the operational programme "Entrepr eneurship and Innovation"  complement activity 
2.3.2.2 "Co-financing to investments in micro a nd small-sized enterprises operating in the specially 
assisted areas" (in force from 14.03.2009), replacing the Regulations No. 798. 
 
 Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia.    
4. Form of the subsidy 
 
 Grant.    5. The annual amount budgeted of the subsidy 
  In 2009, the total amount of direct grant am ounted to LVL 1.28 million. In 2010, the total 
amount of direct grant amounted to LVL 2.17 m illion. (Aid granted solely from the Community 
funds. No resources from the state budget involved).  6. Duration of the subsidy 
  2008 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
	G/SCM/N/220/EEC/Add.15 
Page 18  
 
  XVIII.  "DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION" 2ND ROUND  
 
1. Period covered by the notification 
   2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
 The activity is aimed at supporting deve lopment of new products or technologies in 
manufacturing. Within the framework of the activ ity financing is provide d to operator's initial 
investment in fixed assets directly ensuring implem entation 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 Minist ers 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 ".   
 
 Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia.   
 
4. Form of the subsidy 
  Direct grant.    5. The annual amount budgeted of the subsidy 
  In 2010, there was no aid granted.  6. Duration of the subsidy 
 
 2010 – 2013. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.   G/SCM/N/220/EEC/Add.15 
 Page 19 
 
 
  XIX.  SUPPORT FOR FILM PROJECTS AND FILM CULTURE PROJECTS IN LATVIA 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
  The scheme aims to support the development,  production and distribu tion of national films 
and international co-productions. Beneficiaries of  the scheme for all types of support can be legal 
bodies who are film producers or film distributors. 
 3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minist ers of 10 June 2008 No. 429 "Procedures for the 
granting of financing from the state budget for film  industry projects" (was in force till 30.06.2010) 
and the Regulations of the Cabinet of Minister s of 12 November 2010 No. 975 "The procedure by 
which the State agency "National Film Centre" gr ants public funding for film industry projects", 
replacing the Regulations No.429.  
  National Film Centre of Latvia.   
 
4. Form of the subsidy 
  Grant.    
5. The annual amount budgeted for the subsidy 
 
 In 2009, the amount of the subsidy was LVL 1. 45 million. In 2010, the amount of the subsidy 
was LVL 0.74 million.     6. Duration of the subsidy 
  2008 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
     
XX. SUPPORT FOR PRIVATE OWNERS OF CULTURAL MONUMENTS IN THE 
RESTORATION AND PRESERVATION OF CULTURAL HERITAGE 
 
1. Period covered by the notification 
   2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
 The primary objective of the scheme is ensuri ng the preservation of privately owned cultural 
heritage monuments. The monuments, in which cultural events and socioeconomic activities are 
expected to take place, must remain accessible to  the public. Support will be given to cultural 
monuments of national and local significance which are included in the national list of protected cultural monuments according to the "Law on the Protection of Cultural Monuments". The activities G/SCM/N/220/EEC/Add.15 
Page 20  
 
  to be carried out by the scheme are those solely connected with the renovation of cultural heritage 
sites and the conservation of their historic value. Support under the scheme may be obtained by legal 
persons (merchants, foundations or associations)  insc ribed in Latvia in the Register of Enterprises of 
the Republic of Latvia and for the execution of renovation works on cultural monuments situated in 
Latvia. All beneficiaries will be selected by  an open tender of project applications. 
 
3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minister s of 30 June 2009 No. 675 "Regulation on Activity 
3.4.3.3 "Support for private owners of cultural monuments for the preservation of cultural monuments 
and effective use of their socioeconomic potential" of the Operational Programme "Infrastructure and 
Services' Complement".     Authority for the subsidy is The Ministry of Culture.    
4. Form of the subsidy 
 
 Direct grant.    5. The annual amount budgeted for the subsidy 
 
 In 2007, the aid amounted to LVL 1,5 milli on from the national budget.  In 2008, the aid 
amounted to LVL 0.9 million from the national budget.    6. Duration of the subsidy 
 
 In 2010, there was no aid granted. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXI.  TENDER FOR AID FOR NEW ELECTRICITY GENERATION CAPACITY 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
  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 divers ification 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 finan ced through the general budget of the State, but 
through an increase in the transmission service ta riffs. Thus the costs will be covered by Latvian 
transmission system users through parafiscal charges which the transmission system operator will attribute to the beneficiary. The budget of the ai d 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 beneficiary fails to provide the agreed minimum 
capacity of 6000 h annually to the market.     G/SCM/N/220/EEC/Add.15 
 Page 21 
 
 
  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 is the Ministry of Economics.    4. Form of the subsidy 
 
 Direct grant.   
 5. The annual amount budgeted for 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 assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXII.  DEVELOPMENT OF AIRPORT INFRASTRUCTURE OF AIRPORT "RIGA" 
 1. Period covered by the notification 
  
 2009 and 2010.  2. Policy objective/to whom the subsidy is provided  
 
 Beneficiary of the aid is Riga International airport (RIX) which is a growing large regional 
airport (Category C airport) according to the 2 005 Airport Guidelines, with nearly 4.1 million 
passengers served in 2009. The planned investme nt 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 o ff in bad weather and emergency situations), to 
enhance the environmental performance of the airpor t, to improve 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 nor mally be implemented in 2 phases. The 1st phase 
will be implemented from 2007-2013 C ohesion Fund financing (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 Regulations of the Cabinet of Mini sters Regulation No. 1476 of 15 December 2009 
"Regulations on the Supplement Activity 3.3.1.4. "Development of airport infrastructure" of the 
Operational Programme "Infrastructure and Services". 
  Authority for the subsidy is the Ministry of Transport.    G/SCM/N/220/EEC/Add.15 
Page 22  
 
  4. Form of the subsidy 
 
 Direct grant.    5. The annual amount budgeted of the subsidy 
  In 2010, there was no aid granted.   6. Duration of the subsidy 
 
 2010 – 2020. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
XXIII.  SUPPORT TO R&D PROJECTS FINANCED WITHIN THE FRAMEWORK OF 
EUREKA PROGRAMME 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
 
  The scheme is foreseen for supporting SMEs  eligible for aid under the scheme by co-
financing their projects to promote investments in R&D activities, such as industrial research, 
experimental development and technical feasibility studies.  3. Background and authority for the subsidy 
  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 is the Ministry of Education and Science.  4. Form of the subsidy 
  Grant.     5. The annual amount budgeted of the subsidy 
  In 2009, the aid amounted to LVL 0.41 m illion from the national budget. In 2010, the aid 
amounted to LVL 0.21 million from the national budget. 
 6. Duration of the subsidy 
  2006 – 2011. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.   G/SCM/N/220/EEC/Add.15 
 Page 23 
 
 
  XXIV.  MARKET-ORIENTED RESEARCH PROGRAMME 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
   This framework provides support to small and medium-sized companies for industrial research and experimental development projects. Ai d intensity for industrial research project amounts 
to 60%, while for the experimental development project it is – 35% of total eligible costs. 
 3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minist ers of 5 February 2008 No. 72 "Procedure for 
allocation of funding to market-oriented research projects". 
  Authority for the subsidy is the Ministry of Education and Science.  4. Form of the subsidy 
 
 Direct grant.    
 5. The annual amount budgeted of the subsidy 
  In 2009, the aid amounted to LVL 0.44 m illion from the national budget. In 2010, the aid 
amounted to LVL 0.28 million from the national budget. 
 6. Duration of the subsidy 
  2008 – 2012.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXV.  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 
   2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
  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 target group of the activity is persons employed by the G/SCM/N/220/EEC/Add.15 
Page 24  
 
  entrepreneur and employers - entrepreneurs. F unding 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 Minister s of 25 March 2008 No. 203 "Regulations on the 
operational programme "Human resources and empl oyment" 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 enterpri ses - support to individually organized training by 
enterprises".  
 
 Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia.  4. Form of the subsidy 
  Direct grant.     5. The annual amount budgeted of the subsidy 
  In 2009, the total amount of direct grant am ounted to LVL 1.8 million. In 2010, the total 
amount of direct grant amounted to LVL 1.37 million (Aid granted solely from the Community funds. 
No resources from the state budget involved).   6. Duration of the subsidy 
 
 2008 – 2013. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXVI.  SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING 
COMPETITIVENESS OF ENTERPRISES  – SUPPORT TO TRAINING FOR 
EMPLOYED IN PARTNERSHIP 
 
1. Period covered by the notification 
   2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
   The activity is aimed at prom otion of investment in human resources and direct participation 
of entrepreneurs and societies (except the society wh ich 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 Regulations of the Cabinet of Minister s of 30 March 2010 No. 328 "Regulations on the 
operational programme  "Human resources and employment" complement sub-activity 1.3.1.1.1   G/SCM/N/220/EEC/Add.15 
 Page 25 
 
 
  "Support to training for employed for enhancing co mpetitiveness of enterprises – support to training 
for employed in partnership" for the second and subs equent rounds of project applications selection ". 
  Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia. 
 
4. Form of the subsidy 
  Direct grant.     
5. The annual amount budgeted of the subsidy 
 
 In 2010, there was no aid granted.  6. Duration of the subsidy 
  2010 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
XXVII.  SUPPORT TO PRODUCTION OF BIOFUELS 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
   Beneficiaries of the measure are manufacturers of biofuel of any size. The number of beneficiaries of direct grant is less than 10.  
 
 The reduced rate of excise tax on biofuel and on the mix of biofuel with fossil fuel is 
calculated and paid by taxpayers considering conditi ons that all criteria are made accordingly to the 
circulation of this product which are necessar y to ensure the payment of import duties.  
 
 The direct grant is granted directly to bi ofuel producers to whom  annual support quota is 
allocated proportionally to their production capacity. Th e overall quota of biofuel subject to the direct 
grant is recalculated annually by the Ministry of Economics.   3. Background and authority for the subsidy 
 
 Law on Biofuel, the Law on Excise Tax and the Regulations of the Cabinet of Ministers of 
15 April 2008 No. 280 "Regulations on bi ofuel quota to be financially supported". 
  Authority for the subsidy is the Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy 
 
 The  aid is  granted in the form of quota based direct  aid and generally applicable excise tax 
reductions for biofuel.  G/SCM/N/220/EEC/Add.15 
Page 26  
 
  5. The annual amount budgeted of the subsidy 
 
 In 2009, the total amount of direct grant amounted to LVL 6.03 million and the excise tax reduction was LVL 1.43 million in 2 009. In 2010, the total amount of direct grant amounted to 
LVL 29.73 million and the excise tax reduction was LVL 9.66 million. 
 
6. Duration of the subsidy 
  2006 – 2010.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXVIII.  OPEN TENDER "TECHNOLOGY TRANSITION FROM FOSSIL TO   
RENEWABLE ENERGY RESOURCES" 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
  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 energy resources" of projects financed by the 
Climate change financial mechanism".  
 Authority for the subsidy is the Ministry of the Environmental Protection and Regional 
Development, The Environmental Investment Fund.  4. Form of the subsidy 
 
 Direct grant.    
 5. The annual amount budgeted of the subsidy 
  In 2010, there was no aid granted.  
6. Duration of the subsidy 
 
 2010 – 2011.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.   G/SCM/N/220/EEC/Add.15 
 Page 27 
 
 
  XXIX.  OPEN TENDER "COMPLEX SOLUTION S TO REDUCE GREENHOUSE GAS 
EMISSIONS IN INDUSTRIAL BUILDINGS" 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
   The tender is aimed at reduction of greenhouse gas emissions by improving energy efficiency 
of premises, production technological equipmen t 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 
call "Complex solutions to reduce greenhouse gas emissions in industrial buildings" of projects financed by the Climate change financial mechanism".   Authority for the Ministry of the Environm ental Protection and Regional Development, The 
Environmental Investment Fund. 
 
4. Form of the subsidy 
  Direct grant.     
5. The annual amount budgeted of the subsidy 
 
 In 2010, there was no aid granted.  6. Duration of the subsidy 
 
 2010 – 2011. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
XXX.  OPEN CALL "USE OF RENEWABLE ENERGY RESOURCES IN TRANSPORT 
SECTOR" 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
   The call is aimed at reduction of greenhouse effect gas emissions en suring adjustment of 
vehicles to the use of energy obtained fr om renewable energy sources, including: 
  2.1.  supporting adjustment of vehicles to the use fuel obtained from renewable energy 
sources instead of fossil fuel;  
 G/SCM/N/220/EEC/Add.15 
Page 28  
 
   2.2.  supporting provision of access to the fuel obtained from renewable energy sources 
setting up filling equipment for fuel obta ined from renewable energy sources, only 
together with the activity set in sub-cl ause 2.1 and not exceeding 20% of total 
financial mechanism funds requested in the project application. 
 
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 transport sector" of projects financed by the Climate change financial mechanism". 
 
 Authority for the subsidy is the Ministry of  Environment (at present: the Ministry of the 
Environmental Protection and Regi onal Development), State owned enterprise "The Environmental 
Investment Fund".  
4. Form of the subsidy 
 
 Direct grant.     5. The annual amount budgeted of the subsidy 
 
 In 2010, there was no aid granted. 
 6. Duration of the subsidy 
  2010 – 2012. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXI.  ACTIVE EMPLOYMENT MEASURE FOR CERTAIN PERSON GROUPS 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
  Measures provided for specific groups of pe rsons foresee co-financed work places to help 
unemployed people to understand requirements of the labour market, encourage integration of 
unemployed persons from the target group into soci ety and permanent employment. The aim of the 
measure is to facilitate the development of  sust ainable and long-term working places for unemployed 
with lower productivity level and preserve their skills and competencies. 
 3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minist ers of 10 March 2008 No. 166 "Regulations 
regarding the procedures for organising and fi nancing of active employment measures and 
preventative measures for unemployment reduction and principles for selection of implementing 
bodies of measures".   Authority for the subsidy is the Ministry of Welfare, the State Employment Agency.  G/SCM/N/220/EEC/Add.15 
 Page 29 
 
 
  4. Form of the subsidy 
 
 Direct grant.     5. The annual amount budgeted of the subsidy 
  In 2009, subsidy amounted to LVL 0.35 m illion. In 2010, there was no aid granted.  
 6. Duration of the subsidy 
 
 2008 – 2013. 
 7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
XXXII.  SUPPORTED EMPLOYMENT MEASURES FOR UNEMPLOYED PERSONS 
FROM SPECIFIC TARGET GROUPS 
 
1. Period covered by the notification 
  
 2009 and 2010. 
 2. Policy objective/to whom the subsidy is provided 
   The goal of the activity is to facilitate integr ation 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.  3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minister s of 8 April 2008 No. 258 "Regulations on the 
operational programme  "Human resources and employment" complement sub-activity "Supported 
employment measures for unemployed pe rsons 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 budgeted of the subsidy 
 
 In 2009, subsidy amounted to LVL 0. 25 million. In 2010, subsidy amounted to 
LVL 0.67 million.  
 6. Duration of the subsidy 
 
 2008 – 2013. 
 G/SCM/N/220/EEC/Add.15 
Page 30  
 
  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXIII.  SUPPORT TO SCIENCE AND RESEARCH 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
  The objective 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 (agrobi otechnology, information sciences, biomedicine and 
pharmacy, power industry, environmental science, energy and environment, public health etc.) of 
science specified in the State.  3. Background and authority for the subsidy 
  The Regulations of the Cabinet of Minister s 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 is the Ministry of  Education and Science, the State Education 
Development Agency. 
 
4. Form of the subsidy 
  Direct grant.     5. The annual amount budgeted of the subsidy 
  In 2009, there was no aid granted. In 2010, the total amount of direct grant amounted to LVL 0.71 million. (Aid granted solely from the Eu ropean Regional Development Fund, no resources 
from the state budget involved).  
6. Duration of the subsidy 
 
 2009 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
XXXIV.  OPEN CALL "DEVELOPMENT OF TECHNOLOGIES TO REDUCE 
GREENHOUSE EFFECT GAS EMISSIONS". 
 1. Period covered by the notification 
  
 2009 and 2010.   G/SCM/N/220/EEC/Add.15 
 Page 31 
 
 
  2. Policy objective/to whom the subsidy is provided 
 
  The 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 Minister s of 22 December 2009 No. 1492 "Regulation of the 
open call "Development of technologies to redu ce greenhouse effect gas emissions" of projects 
financed by the Climate change financial mechanism". 
 
 Authority for the subsidy is the Ministry of the Environmental Protection and Regional 
Development.  4. Form of the subsidy 
  Direct grant.     5. The annual amount budgeted of the subsidy 
  In 2010, the total amount of direct grant amounted to LVL 0.03 million. 
 
6. Duration of the subsidy 
  2010 – 2011.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXV.    DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR 
SECURING INDUSTRIAL PROPERTY RIGHTS 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
  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 
successfully developed new products (including goods and services) or technologies (including 
technological processes). 
 
 Financing is provided for the registration of industrial 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 G/SCM/N/220/EEC/Add.15 
Page 32  
 
  products and technologies" and sub-activity 2.1.2.2. 3 "Development of new products and technologies 
– aid for securing industr ial property rights". 
  Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia. 
 
4. Form of the subsidy 
  Direct grant.     
5. The annual amount budgeted of the subsidy 
 
 In 2009, there was no aid granted. In 2010, the total amount of direct grant amounted to LVL 0.01 million (Aid granted solely from the Community funds. No resources from the state budget 
involved). 
 
6. Duration of the subsidy 
  2008 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXVI.  DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES 
 1. Period covered by the notification 
  
 2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
  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 pr ojects 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 the development of new or considerably improved 
products (including goods and services) or tec hnologies (including technological processes). Within 
the framework of the sub-activity the aid is gran ted 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  G/SCM/N/220/EEC/Add.15 
 Page 33 
 
 
  products and technologies" and sub-activity 2.1.2.2. 3 "Development of new products and technologies 
– aid for securing industr ial property rights". 
  Authority for the subsidy is the Ministry of Economics, the Investment and Development 
Agency of Latvia. 
 
4. Form of the subsidy 
  Direct grant.     
5. The annual amount budgeted of the subsidy 
 
 In 2009, the total amount of direct grant am ounted to LVL 0.34 million. In 2010, the total 
amount of direct grant amounted to LVL 2.17 million (Aid granted solely from the Community funds. No resources from the state budget involved). 
 
6. Duration of the subsidy 
  2008 – 2013.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXVII.  AID FOR TECHNOLOGY TRANSFER AND VENTURE CAPITAL SECTORS 
 1. Period covered by the notification 
  
 2009 and 2010.  2. Policy objective/to whom the subsidy is provided 
 
  The regulation prescribes the provisions for gr anting aid in the technology transfer sector 
(seed capital funds) and venture capital sector (s tart-up capital funds and venture capital funds) 
according to the agreement concluded between th e 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 capital 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, small and medium-sized enterprises may receive investments.  3. Background and authority for the subsidy 
 
 The Regulation of the Cabinet of Minister s of 25 November 2008 No. 983 "Regulation for 
granting aid in technology transfer and venture capital sectors".   Authority for the subsidy is the European Investment Fund.  
4. Form of the subsidy 
 
 Provision of risk capital.     G/SCM/N/220/EEC/Add.15 
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  5. The annual amount budgeted of the subsidy 
 
 In 2009, no venture capital investments were made and no state aid was provided. In 2010, 
the total amount of venture capital investments amounted to LVL 1.01 million, including LVL 0.92 million from the Community funds and LVL 0.09 million from the state budget.  
 
6. Duration of the subsidy 
  2008 – 2013.  
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXVIII.    LIMITED AMOUNTS OF COMPATIBLE AID IN THE FORM OF GUARANTEES 
DURING THE FINANCIAL AND ECONOMIC CRISIS 
 
1. Period covered by the notification 
   2009 and 2010.  
2. Policy objective/to whom the subsidy is provided 
 
  The measure is part of a wider package of measures aimed at remedying a serious disturbance 
in the economy of Latvia. The scheme applies to SMEs and large companies. Public guarantees can 
be given for investment or current  assets loans, financial leasing or factoring. The public guarantee 
covers up to 80% of the above me ntioned financial services, but the guaranteed amount cannot exceed 
EUR 3,000,000 per undertaking. The guarantee period does not exceed ten years for investment loans and financial leasing and three years for loan s for working capital loans and factoring. 
 3. Background and authority for the subsidy 
 
 The Regulations of the Cabinet of Minister s of 24 March 2009 No. 269 "Regulation regarding 
guarantees available for entrepreneurs and correspon ding agricultural service cooperatives to improve 
their competitiveness".   Authority for the subsidy is  Latvian Guarantee agency. 
 
4. Form of the subsidy 
  Guarantee.     5. The annual amount budgeted of the subsidy 
  In 2009, the aid element of guarantee (guarantee amount: LVL 33.82 million) issued by the Latvian Guarantee agency constituted LVL 1.34 m illion. In 2010, the aid element of guarantee 
(guarantee amount: LVL 32.09 million) issued by  the Latvian Guarantee agency constituted 
LVL 0.87 million.  
 
6. Duration of the subsidy 
  2009 – 2010.   G/SCM/N/220/EEC/Add.15 
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  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  
XXXIX.  INDIVIDUAL STATE GU ARANTEE IN FAVOUR OF JSC LIEP ĀJAS 
METALURGS 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
   JSC Liepājas Metalurgs , the recipient of the State guarantee, is a manufacturer of rolled steel 
products based in Liepaja , Latvia. It is the only metallurgical company in the Baltic States.  
According to the Law on Budget and Financial Mana gement, State guarantees in the name of the 
Republic of Latvia are issued by the Minister of Finance within limits set by an annual Budget Law 
and in compliance with the Regulations on Guaran tee Issue and Supervision Process adopted by the 
Cabinet of Ministers. The investment project foresees the replacement of the open hearth furnaces with an electric arc furnace and a ladle furnace of the latest and most efficient technology currently 
available. Moreover, the continuous caster will also be modernised. The duration of the State 
guarantee will be limited to the duration of the underlying loan, i.e. 10 years. 
 3. Background and authority for the subsidy 
  The Law on Budget and Financia l Management, The Regulations of the Cabinet of Ministers 
of 12 July 2005 No. 513 "Guarantee Issue and Supervision Process". 
  Authority for the subsidy is the State Tre asury/responsible ministry: the Ministry of 
Economics.  4. Form of the subsidy 
  Guarantee.      5. The annual amount budgeted of the subsidy 
 
 In 2009, the aid element of guarantee (total guarantee amount: LVL 53.1 million) issued by 
the State Treasury constituted LVL 2.7 million.  6. Duration of the subsidy 
  2009 – March 2020. 
 
7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A.  G/SCM/N/220/EEC/Add.15 
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  XL. SHORT-TERM EXPORT CREDIT INSURANCE 
 
1. Period covered by the notification 
   2009 and 2010. 
 
2. Policy objective/to whom the subsidy is provided 
   The purpose of the measure is to provide short-term export credit guarantee coverage to 
Latvian exporters who are confronted with temp orary unavailability of credit risk insurance to 
countries which were considered as marketable in pr e-crisis period. A guarantee covers up to 90% of 
the deferred payment, but at the same time cannot  exceed 1 million EUR equivalent of the transaction 
value in Latvian lats according to the exchange ra te set by the Bank of Latvia on the day on which a 
guarantee has been issued. A guarantee covers  losses which arise from following risks: 
 
(i)  political risk arising from the existing political situation in a debtor's country,
 which could result in constraints for credit repayment or receipt of payments due to the exporter; 
 (ii)  commercial risk related to debtor's ab ility to meet his payment obligations to the 
exporter according to the provisions set in export contract; 
 
(iii)  risk of war, revolution, natural catastrophes, nuclear catastrophes. 
 3. Background and authority for the subsidy 
 
 The Regulation of the Cabinet of Ministers of 12 May 2009 No. 436 "Regulations on short-
term export credit guarantees".   Authority for the subsidy is the Ministry of Economics, Latvian Guarantee agency.  4. Form of the subsidy 
  Export credit  guarantees to temporary non-marketable risk countries (EU member states and 
certain OECD member states – Australia, Canada, Island, Japan, New Zealand, Norway, Switzerland, 
and the United States of America).     
5. The annual amount budgeted of the subsidy 
 
 Latvian Guarantee agency has issued in total 5 export credit guarantees to EU and OECD 
countries in amount of LVL 0.24 million.  6. Duration of the subsidy 
  From 1 July 2010 till 31 December 2010.  7. Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 N/A. 
 
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