RIGA, July 7 (LETA) - Eleven business infrastructure projects in Latvia will receive EUR 21.6 million in support from the European Union's (EU) Just Transition Fund (JTF), LETA was told at the Ministry of Smart Administration and Regional Development (VARAM).

VARAM reports that the evaluation of project applications for the second selection round of the fund's investments in the development of public infrastructure necessary for business has been completed.

Eleven projects worth EUR 21.6 million total have been approved for JTF support. Of these, five projects will be implemented in Latgale, three in Kurzeme, two in Vidzeme, and one in Zemgale.

The projects aim to develop public infrastructure necessary for business with JTF support, promote the creation of new jobs, and attract investment to the regions.

The project applicants are currently fulfilling the conditions set forth in the decisions of the Central Finance and Contracting Agency, after which agreements on the implementation of the projects will be signed.

Given the geopolitical situation, support conditions for projects in Latvia's eastern border regions are more favorable. These include a public funding intensity of up to 90 percent and additional points in project evaluations.

Smart Administration and Regional Development Minister Edgars Tavars (United List) states that the special support conditions for the eastern border region have yielded results. Five of the eleven approved projects will be implemented in Latgale, strengthening the local business environment, creating new jobs, and attracting investment, he notes.

The public funding earmarked for these projects is expected to be allocated both for the construction of access roads needed for business areas and the creation of rental space for business purposes, as well as to support businesses as project partners in developing their production or service provision infrastructure.

As a result of these investments, it is planned to create at least 127 new jobs in business areas across the regions and to attract at least EUR 7.38 million in private non-financial investment by 2029.

In the second selection round, EUR 21.6 million was made available to various projects, but the funding requests totaled EUR 69.87 million, significantly exceeding the available amount. This demonstrates the municipalities' readiness to develop the business environment and implement projects that promote the transition to a climate-neutral economy, according to VARAM.

The infrastructure developed as a result of the first project selection round in 2024 and 2025 will benefit at least 123 businesses. In the business areas associated with these investments, at least 375 new jobs are expected to be created by the end of 2029, while private non-financial investments are expected to total at least EUR 29.23 million.

Similar investments have also been made under the Infrastructure to Support Business initiative, co-financed by the European Regional Development Fund (ERDF), where project evaluations are ongoing.