The municipality refuses to create national importance in the creation of industrial park in Ventspils / day

Such a decision was made to avoid potential risks and the municipality does not reach financially critical situations.

Ventspils City Council deputies decided to terminate the agreement last year concluded between the municipal authority « Ventspils Osta » and the Central Finance and Contracts Agency (CFLA) on the project « Establishment of national industrial park in Ventspils », which had EUR 10 million from the Recovery Fund (AF).

The municipality explains that the project of the industrial park of national importance was relatively formed by two parts – one part of the project was implemented by the municipality and the other by private merchants.

The responsibility of the municipality in the project is the preparation of infrastructure for the activities of merchants, including construction projects, procurement and construction work, project co -financing and other activities. The part of the project responsible for the municipality is currently fully prepared for implementation.

The other part, on the other hand, is the performance indicators of the project. According to the project rules, merchants must achieve specific objectives in the project – to provide new jobs and to carry out non -financial investment in tens of millions of euros.

The performance indicators of merchants in the project are critical to the co -financing of the European Union. The municipality cannot influence the responsibility part of the merchants, and at the same time there are high risks for business activities. If the operating indicators are not achieved, the municipality must repay either the entire co -financing of the European Union or part of it in proportion to the performance indicators.

Re -conducting surveys of the production facilities in Ventspils and compiling a summary of the scores of merchants by February this year, the municipality concluded that the total planned non -financial investment amount of newly attracted investors and the merchants already existing in Ventspils does not reach the planned indicators planned in the project. In terms of all the information available, it was concluded that the project would be subject to financial corrections that would result in critical losses for the municipal budget and adversely affect its ability to implement other development projects and implement autonomous functions.

As the project is already developing production documentation for production buildings, the alternative to the non -started project should be considered in other projects, when necessary, adjusting individual solutions to the construction project.

The Ventspils City Council decided to submit project applications in alternative European Union Cohesion Policy programs. The municipality has instructed the municipal authority to prepare the necessary documentation for the municipal authority and to submit project applications in accordance with the conditions of programs and the funding available in one or both of the European Union Cohesion Policy Program 2021-2027, namely « support for the development of public infrastructure necessary for the development of public infrastructure.

As reported, the AF project selection, where EUR 80 million for the development of national industrial parks and territories for the development of national industrial parks and territories, approved five projects with a total AF investment of more than EUR 77 million in February last year.

The CFLA approved the project of the Liepaja Special Economic Zone Authority for Public Street Infrastructure « Liepaja Industrial Park Territory Development 1st stage » with AF funding of EUR 10 million.

Daugavpils City Municipality project also approved the construction of a public infrastructure and the construction of a production building « Establishment of Eastern Latvia’s Smart Technology and Research Center (Altop) Industrial Park », which has EUR 17.13 million AF funding.

Also approved by Valmiera Municipality project for industrial square, public parking lot, access road, railway access road and internal rail network infrastructure « Development of Valmiera Industrial Park » with AF funding of EUR 20 million.

Funding will be received by Jelgava City Municipal Authority « Central Administration » project for public street infrastructure « Zemgale Industrial Park Development, I Round I with AF funding of EUR 20 million.

The CFLA has also approved the construction of the Ventspils City Municipal Authority « Ventspils Osta » projects for the construction of the public infrastructure and the construction of the production building « to create a national industrial park in Ventspils with EUR 10 million in Ventspils.

Two projects were withdrawn during the project application evaluation period, while two more decisions were made on the failure of the conditions.