LATVIA: 92.31 percent of European Union Cohesion funding acquired
Up until the middle of this year, forty three European Union Cohesion funding projects, LVL 461.1 million, had been approved (data from the Latvian finance ministry)
Approved cohesion funding for Latvia by the European Commission totaled LVL 153.6 million, or 33.3 percent of all EU Cohesion funds to the country. The realization of projects and the signing of contracts within frameworks, has been financed by 20.9 percent of all accessible finances, in other words LVL 104.15 million. The fundamental problem associated with the realization of cohesion funds is the growing costs. The total increase of environmental costs has reached LVL 25.05 million and serious increase in costs are associated with water farming projects supporting the water basins in eastern Latvia. The rise in costs is affecting transport sector projects and all projects will not be completed in the planned financial framework. The European Commission has informed the finance ministry of their stance in relation to the increase of costs in financing from EU Cohesion funds resources. In certain cases, financing could be increased by 30 percent. The rest, depending on individual circumstances, will need to be funded from the State’s budget, from beneficiary funds or other avenues.
