1. EU Funds investments and projections,
preparation for the 2014-2020 period
March, 2014

2. 1.Implementation progress
2.Risks
3.Progress of 2014-2020
Content
21.03.2014 2

3. 21.03.2014 3
1.1. 2007-2013 absorption by 31.01.2014.
(M EUR, % of EU funding, progress % since 31.03.2013.)
553,9 (95% + 12%)
914,2 (59% + 10%)
1 520,3 (63% + 10%)
2 988,4 (66% + 11%)
534,5 (92% + 11%)
944,1 (61% + 10%)
1 574,6 (65% + 7%)
3 053,2 (67% + 9%)
638,2 (109% + 5%)
1 489,3 (97%; 0%)
2 435,3 (101% + 8%)
4 562,8 (101% + 5%)
583,1 (100%)
1 539,8 (100%)
2 407,6 (100%)
4 530,4 (100%)
74,9 (12,9%)
49,8 (3,2%)
279,9 (11,6%)
404,6 (8,9%)
0 1 000 2 000 3 000 4 000 5 000 6 000
0 1 000 2 000 3 000 4 000 5 000
ESF
CF
ERDF
Total
Millions
Approved projects
Payments to fianl beneficiaries
Recieved advance and interim payments from
EC
EU funding
Overcommittments
Total: 2 687,5 (111,6%)
Total: 1 589,6 (103,2%)
Total: 658 (112,9%)
Total: 4 935 (108,9%)

4. 21.03.2014 4
1.2. Contracts by industries
(M EUR, % of EU funding till 31.01.2014.)
1 273,5
688,8
488,1
407,0
377,1
330,3
256,1
231,7
187,6
109,1 50,6
22,0
15,3 Transport / ICT (28,7%); 93,1%*
Environment (15,5%); 91,7%
Education (11,0%); 103,9%
Entrepreneurship and Innovation (9,2%); 88%
Employment and social inclusion (8,5%); 113,6%
Urban environment (7,4%); 120,3%
Science (5,8%); 96,1%
Health (5,2%); 105,6%
Energetics (4,2%); 94,3%
Support for EU funds management (2,5%); 98,2%
Culture (1,1%); 140,4%
Administrative capacity (0,5%); 96%
Tourism (0,3%); 88,7%
* - Contracts as % of available EU funding for industry

5. 21.03.2014 5
1.3. Progress by Ministries by 31.01.2014
(M EUR, % of EU funding)
746,2 (100%)
729,4 (100%)
1 193,5 (100%)
1 222,9 (100%)
51,3 (6,9%)
80,9 (11,1%)
74,5 (6,2%)
117,7 (9,6%)
750,4 (100,6%)
681,3 (93,4%)
1 194,5 (100,1%)
1 238,0 (101,2%)
501,3 (67,2%)
449,9 (61,7%)
746,0 (62,5%)
952,1 (77,9%)
0 500 1000 1500
MoES
MoE
MoT
MoEPRD
Available EU funding; Total 4 403,6 mEUR (without technical assistance - 126,8 mEUR)
Overcommittments; Total 404,6 mEUR
Approved projects; Total 4 438,1 mEUR
Payments to the funding recipient; Total 3 106,6 mEUR
Total: 1 340,6 (109,6%)
Total: 810,3 (111,1%)
Total: 1 268 (106,2%)
102,6
48,1;129
73,5
270,8; 388,5
279,5; 360,4
447,5; 522
Total: 797,5 (106,9%)
47,1
244,9; 296,2

6. 21.03.2014 6
1.4. EC payments by 10.02.2014
% of Member state’s allocation
18,27 %
38,07 %
50,28 %
51,12 %
52,30 %
52,62 %
59,26 %
62,90 %
65,96%
66,96 %
67,86 %
78,77 %
84,15 %
0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0%
Croatia
Romania
Bulgaria
Czech Republic
Malta
Slovakia
Hungary
Slovenia
Latvia
Cyprus
Poland
Estonia
Lithuania
1st place within ESF

7. 21.03.2014 7
1.5. EU funds budget execution in the division of
Responsible Institutions in 2013, M EUR
263
214
127
120
49 46
22
11
3
236
175
93 94
43
35
19
10
2
236
170
83 84
42
35
17
10
2
0
50
100
150
200
250
300
Ministry of
Transport
Ministry of the
Environmental
Protection and
Regional
Development
Ministry of
Education and
Science
Ministry of
Economics
Ministry of
Welfare
Ministry of
Health
Ministry of
Finance
Ministry of
Culture
State
Chancellery
Ministry forecasts of 02.12.2012. (856,1 M EUR) Available budget expenditure on 31.12.2013. (705,9 M EUR)
Budget expenses of 2013 (677,4 M EUR)
1. Responsible Institutions forecast - 856,1 M EUR; Law of Budget*– 745,3 M EUR.
2. State budget expenditure fulfilment - 96,0% or 677,4 M EUR of total available budget 705,9
M EUR, non-performance – 28,4 M EUR.
3. Main non-performances in the division of Responsible Institutions:
- Ministry of Economics 9,8 M EUR – Measures Regarding The Increase of Efficiency of
Centralised Heat Supply Systems, Innovations, Promotion of Entrepreneurship, Improvement
of Heat Insulation of Multi-apartment Residential Buildings ;
- Ministry of Education and Science 9,6 M EUR – Priority „Science and Innovations”,
Modernisation of Equipment and Improvement of Infrastructure for Implementation of
Vocational Education Programmes;
- Ministry of the Environmental Protection and Regional Development 5,9 M EUR – ICT
projects, Rehabilitation of Inherited Contaminated Sites;
- Ministry of Finance 2,2 M EUR – Tehnical assistance projects of all ministries.

8. 21.03.2014 8
1.6. Cash flow
2007-2013 and 2014-2020 M EUR
98
151
425
464
512
714
624
530
590
195
227
26
189
585
738
780
651
677
779
613
44
154
245
307
66
198
280
342
574
745
439
307
845
811
342
550
0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Final
payment (~
2018.g.)Forecasted payments from EC for 2007-2013 planning period (4 530 M EUR)
Planned state budget expenditure for 2007-2013 planning period (5 039 M EUR)
Forecasted payments from EC for 2014-2020 planning period (4 389 M EUR), incl. 2014-2017 (749 M EUR)
Planned state budget expenditure for 2014-2020 planning period (4 835 M EUR), incl. 2014-2017 (886 M EUR)
Total forecasted payments from EC in 2014-2017 (2 065 M EUR)
Total planned state budget expenditure in 2014-2017 (2 279 M EUR)
Payments from EC set in the Annual State Budget Law for 2014 (549.7 M EUR)

9. 21.03.2014 9
1.7.Targets for payments in 2013
M EUR, % of target
82,2
85,8 (104,5%)
359,5
360,3 (100,2%)
260,7
210,4 (80,7%)
702,3
656,5
(93,5%)
0
100
200
300
400
500
600
700
800
Feb. March April May June July August September October November December
ESF target ESF fulfillment ERDF target ERDF fulfillment
CF target CF fulfillment Total target Total fulfillment
45,8
50,3

10. 1.Implementation progress
2.Risks
3.Progress for 2014-2020
Content
21.03.2014 10

11. 21.03.2014 11
2.1. 1 OP - ESF The risk of losing EU funding
350
462
554 554 554
583
76
158
373
475
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015 Programme
closure
Actual payments (EUR) until 31.12.2013. and forecast for further years ESF "red line" (EUR)
No risk!

12. 21.03.2014 12
2.2. 3 OP – ERDF The risk of losing EU funding
542
820
1 120
1 438
1 660 1 711
234
488
1 021
1 335
1 523
1 711
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2011 2012 2013 2014 2015 Closure
Actual payments (EUR) until 31.12.2013. and forecast for further years ERDF "red line"
No risk!

13. 21.03.2014 13
2.3. 2 OP - ERDF The risk of losing EU funding
101
211
456
591
644
696
304
375
457 536
580
623
0
100
200
300
400
500
600
700
800
Till 2011 2012 2013 2014 2015 Closure
ERDF "red line" (EUR)
Actual payments (EUR) till 31.12.2013. and forecast for futher years
2DP ERAF N+2/N+3
Main problems:
- Too optimistic cash
flow modeling;
- Many cancelations
of projects
Measures to be taken:
- MoE and MoES
develops plan of
actions to acquire
EU funds 100%;
- MA strongly
monitors
intermediate terms
of action plan
Worst case scenario:
2014 – losses of EU funds up to 55
mEUR
2015 – losses of EU funds total up to
73 mEUR

14. 21.03.2014 14
• MoE measures:
– New call (4th) of an activity «high value-added investments»;
– New call (2th) of an activity «Sub-activity "Support for construction or
reconstruction of industrial premises«;
– Strict terms for every financial beneficiary to submit 35% of declarable
expenses till 1st of December, 2014;
– Other actions (prolongation of agreements).
• MoES plans new calls within activity «Support for science and research» and
«Support for international cooperation projects in science and technology»
(additional 30 mEUR of EU funds absorption).
• A solid plan of measures with intermediate terms should be created and
approved for both line ministries. MA will evaluate the actions already taken and
proposals given, as well as will strongly monitor every step to be taken within
the defined terms.
2.5. Measures to be taken:

15. 21.03.2014 15
2.4. 3 OP - CF The risk of losing EU funding
- Problems in environmental and transport sector infrastructure projects
- Government assignment for the ministries to carry out immediate arrangements
953,85
1 237,13
1 539,78
965
1 333
1 583
1 265
1 522
900
1 300
1 700
2 013 2 014 2 015
CF "red line" (EUR) CF forecast Projection of payment requests
Risk in 2015 - neto loss in total for the period
aprox. 18 M EUR

16. 1.Implementation progress
2.Risks
3.Progress for 2014-2020
Content
21.03.2014 16

17. 17
3.1. Functions in 2014-2020

18. • Develops planning documents
• Develops criteria and evaluation
methodology
• Develops rules for specific support
goals (SSG)
• Provides SSG results and control
3.2. Allocation of the functions
Responsible institution Co-operation institution
• Develops project selection
regulations
• Advises project applicants and
beneficiaries
• Performs project selection
procedures
• Enters into contracts and
agreements with the
beneficiaries
• Monitors the implementation
of projects

19. 2007-2013 2014-2020
9 RI and 6 CI 10 RI and 1 CI (CFLA)
RI functions can delegate to CI Clear RI and CI allocation of functions
RI and CI both approve projects and enter into
agreements
Only CI approve projects and enter into
agreements
CI decisons can be challenged in RI CI decisions can be challenged in Managing
Authority
Unjustified expenditures can be recovered in
administrative procedure
Unjustified expenditures can be recovered
only in civil procedure
Unclear dispute resolution if the beneficiary is
a public body
Clear dispute resolution if the beneficiary is a
public body
Evaluation criteria in regulations of the
activities
Evaluation criteria etc. in selection rules
Unequal conditions on freedom of
information about the project
More equal conditions, more freedom of
information
3.3. Comparison

20. 21.03.2014 20
The main documents used for developing of PA and OP
• Latvian National Development plan 2014 – 2020
• Latvian National Reforms Programme for Implementation of „Europe 2020”
Strategy
• European Commission Position Document, presented on 4 December 2012
• EU's Europe 2020 strategy for smart, sustainable and inclusive growth and
its flagship initiatives (f.e. Resource efficient Europe, Digital agenda for
Europa).
• Recommendation of the EU Council
• National strategies and etc.
3.4.Partnership Agreement and Operational
programme «Growth and Employment» for 2014-2020

21. 21.03.2014 21
3.5.EU funds financing by thematic objectives
11%
5%
7%
11%
2%
12%
27%
3%
10%
12%
0%
Strengthening research, technological
development and innovation
Enhancing access to, and use and quality
of, information and communication
technologies;
Enhancing the competitiveness of small and
medium-sized enterprises
Supporting the shift towards a low-carbon
economy in all sectors
Promoting climate change adaptation, risk
prevention and management
Protecting the environment and promoting
resource efficiency
Promoting sustainable transport and
removing bottlenecks in key network
infrastructures;
Promoting employment and supporting
labour mobility
Promoting social inclusion and combating
poverty
Investing in education, skills and lifelong
learning;
Enhancing institutional capacity and an
efficient public administration.
Total EU financing (ESF, CF, ERDF) 2014-2020 for Latvia is 4.43 billion EUR

22. • Partnership Agreement has been submitted to EC on 15th of
January 2014 (approved by Cabinet of Ministers in 17th of
December 2013)
• Operational Programme has been submitted to EC on 4th of
March (approved by Cabinet of Ministers in 11th of February
2014)
• In 3rd and 4th quarter of 2014 implementation of first specific
objectives will be launched
• Design of the National legislation base and improvement of
management and control system (Guidelines and methodology)
within 2014
• 28th of March, 2014 – meeting of the Provisional Monitoring
Committee
3.6. Time schedule for 2014-2020
21.03.2014 22

23. 21.03.2014 23
Thank you
Any Questions?
www.esfondi.lv
www.fm.gov.lv
esfondi@fm.gov.lv - e-mail for suggestions on LV EU funds system improvement