On September 29, 2026, the Cabinet of Ministers approved the amendments prepared by the Ministry of Smart Administration and Regional Development (VARAM), which provide for the allocation of an additional 8.16 million euros in European Regional Development Fund (ERDF) funding to the third round of project selection under Measure 5.1.1.1, “Infrastructure to Support Entrepreneurship.” This additional funding will make it possible to support more of the already submitted, highly mature projects aimed at developing the public infrastructure necessary for business in Latvia’s regions.
“The economy is the foundation of people’s social security and protection, and of their ability to live and work in their own region. That is why we are investing an additional 8.16 million euros in strengthening business infrastructure in the regions,” emphasizes Edgars Tavars, Minister of Smart Administration and Regional Development.
In the third round of project selection, 39 project proposals were received, of which 26 were approved for ERDF funding totaling 58.19 million euros. Meanwhile, eight project proposals seeking a total of 19.79 million euros in ERDF funding were rejected due to insufficient funding.
With the amendments approved by the government for the third round of project selection under Measure 5.1.1.1, the total available ERDF funding has been increased to 149.43 million euros by reallocating funds saved as a result of the implementation of projects under other measures under the responsibility of VARAM.
The goal of the program is to develop the public infrastructure necessary for business and to increase the volume of private investment in urban functional areas. Funding may be used for the development of buildings intended for business and related infrastructure, site improvement, road infrastructure, the installation of industrial connections and capacity expansion, as well as other infrastructure solutions necessary for business development.
As the funding available for the measure increases, the target performance indicators are also raised. It is projected that the wage bill of private businesses will increase by at least 63.64 million euros, while private non-financial investments in intangible assets and fixed assets will amount to at least 77.48 million euros.
In the first and second rounds of project selection for this initiative, a total of 56 contracts for project implementation have already been concluded, of which 13 projects have been completed. Under these projects, it is planned to attract 101.26 million euros in non-financial investments from businesses by the end of 2029, while 255 businesses will benefit from the developed infrastructure.
