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LVRTC recovers ERDF funding for the construction of a broadband network withheld since March 2019

LVRTC recovers ERDF funding for the construction of a broadband network withheld since March 2019

Ministry of Transport

JSC Latvian State Radio and Television Center (LVRTC), which implements the ERDF-funded broadband optical network construction project in the regions of Latvia, will soon fully recover the part of the project's funding withheld since 2019. Currently, LVRTC has already received less than 8 million of the total EUR 10 million of withheld funding.

Since March 2019, CFLA has withheld 25% of all incurred and declared project implementation expenses. The cut was made on the basis that it was necessary for the CFLA to verify the compliance of the project implementation progress with the funding requirements of European Union (EU) funding and the risks identified by the Ministry of Finance as the Auditing Authority.

Responsible institution – European Commission – made a statement regarding the adequacy of the management of the LVRTC project, expressed by the Ministry of Finance and stating that not all the sustained risks apply to the second phase of the broadband project, so there are no such risks and the discontinued funds must be repaid. The broadband project is implemented by LVRTC.

Since 2019, to ensure that the objectives to be achieved in the project are implemented in accordance with the commitments made with the builders, LVRTC has both financed the retained funds and provided its share of the co-financing of the project – 15% of the total amount of project implementation.

LVRTC chairman of the board, Ģirts Ozols, states that “LVRTC acts as a responsible owner of the project and ensures that the project is implemented in the region, by investing its funds for the required period of time to discuss and explain to the supervisory authority the adequacy of project implementation.” expected scope and time”.

Currently, in the second phase of the broadband project, 1,948 kilometers of optical cable network lines have been built and put into operation. 261 “mid-mile” access points installed and operational. This coverage of the optical network has made it possible to reach 176 “white zones” where electronic communications merchants can serve approximately 69,300 households, which is 82.7% of the defined project performance indicator.

By the end of this year, a further 15 kilometers of optical cable network paths and 21 “mid-mile” access points are planned to be built and commissioned

By the end of this year, it is planned to build and put into operation another 15 km of optical cable network tracks and 21 "middle mile" access points.

 It is planned to create 18 access points in educational institutions and 3 access points in base stations of mobile operators. According to the determined programs, the first connections in educational institutions will be established in July, and the others at the end of November.

Currently, the LVRTC broadband optical network is used by 15 regional and national electronic communications service providers, three of which are mobile operators. Most network users are regional operators. Operators currently lease and use 6,278 kilometers of network roads.

According to the number of rented kilometers, the Madonas region, which uses the most or 672 kilometers of connection to the optical network, is followed by Bauskas district with 543 kilometers, Talsi district with 514 kilometers, Rēzekne district with 513 kilometers, and Valmiera district with 476 kilometers and Dobele region with 459 kilometers.

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