To develop the public infrastructure necessary for business, promote growth in the wage bill, and attract new investment to the regions, 26 projects have been approved in the third selection round of the European Regional Development Fund (ERDF), with total ERDF funding amounting to 58.19 million euros.
“Latvia needs strong regions, and the foundation for that is entrepreneurs, investments, and jobs. More than 58 million euros have been approved for business infrastructure projects throughout Latvia, including an additional 2.03 million euros allocated by the government for high-readiness projects in the eastern border region. A strong local economy in the border region is also a matter of national security for Latvia,” notes Edgars Tavars, Minister of Smart Administration and Regional Development.
Public funding allocated for project implementation is planned to be directed toward both the development of access roads needed for business zones and the creation of rental space for business purposes, as well as to support the development of production or service-provision infrastructure for businesses acting as project partners, including in the military sector. As a result of these project investments, by the end of 2029, it is planned to promote an increase in the wage fund of at least 35.42 million euros in business zones within the planning regions and to make private non-financial investments totaling at least 97.23 million euros.
Given the geopolitical situation, more favorable support conditions were established for projects in the eastern border region. These included a public funding intensity of up to 90 percent and additional points in project evaluations to attract investment and strengthen the business environment in municipalities facing greater development challenges. Projects totaling 18.17 million euros in ERDF funding have been approved with conditions for the eastern border region, which also includes additional funding allocated at the Cabinet of Ministers’ extraordinary meeting on June 27, 2026, to support high-readiness business projects in Latgale.
In the third ERDF selection round, 58.25 million euros in ERDF funding is available for project implementation, while the funding requested for high-readiness projects submitted by local governments in the Kurzeme, Zemgale, Vidzeme, Latgale, and Riga planning regions totaled 87.16 million euros, significantly exceeding the amount of ERDF funding available. This demonstrates the ability of local governments and their partners to develop the business environment and implement high-readiness projects that contribute to increasing the volume of private investment in the planning regions.
Currently, project applicants are fulfilling the conditions set forth in the decisions of the Central Finance and Contracting Agency; successful fulfillment of these conditions will lead to the signing of contracts for project implementation.
The third selection round is a continuation of the investments in the development of public infrastructure necessary for business that were initiated in the previous two selection rounds.
The infrastructure developed as a result of the implementation of municipal projects submitted during the first and second selection rounds in 2024 and 2025 will benefit at least 255 businesses. In the business areas associated with these investments, by the end of 2029 , it is planned to stimulate an increase in the wage fund of at least 47.11 million euros and to attract private non-financial investments totaling at least 101.26 million euros.
Similar investments are also being made under the initiative “Support for the Development of Public Infrastructure Necessary for Entrepreneurship, promoting the transition to a climate-neutral economy,” where project applicants continue to fulfill the conditions set forth in the decisions of the Central Finance and Contracting Agency.
