2.1.2.4. „High value added investments” (2 nd call)

1. 2.1.2.4. „High valueadded investments” (2nd call)

2. Existing support for knowledge and technology intensive projects • 2.1.2.1.1. „Competence Centers” • Support available for long term investments, research activities and projectmanagement costs. Available support for long term investments is limited to 20% of public financing granted for project and all long term investments are made into newly created competence center. • Projects must be implemented in collaboration with scientific institutions and industry partners. • 2.1.2.2.2. „New product and technology development – aid for implementation of new products and technologies in production ” • Public co-financing is limited to 1 000 000 lats. • Financing is awarded only to start to produce new product or to provide new service. • Financing is available only for purchase of new technologies and machinery and for investments in intangible assets

3. Necessary support for knowledge and technology intensive projects • Ministry of Economics proposal for new support program: • Knowledge and technology intensive projects must be supported and support must be available permanently. Projects will be evaluated on a monthly basis • Investments made by company should be significant, therefore,minimum amount of investments that must be made in fixed assets is 7.02 million lats (10 million EUR) for company to be eligible to participate in this program • Public co-financing must be significant as well – up to 2.10 million lats (3 millionEUR). • Investment projects must be evaluated primarily focusing on following: • Value added of project; • Project preparedness; • Project contribution to economy;

4. Financing for knowledge and technology intensive projects Necessary financing to launch programme: • Necessary financing for 2nd call -20 million lats (28.45 million EUR). • It is estimated that 10 projects will be supported. Next steps: • Criteria to be approved on 16th of June in EU funds Monitoring Committee • Cabinet of Ministers regulations will be approved by the end of 2011. • Necessary financing is already available within activity 2.1.2.4. „High value-added investments”

5. General questions • Goal: • Encourage companies to make investments in knowledge and technology intensive projects and to attract foreign investments in industries with high valueadded to facilitate transfer of latest technologies from abroad. • Project selection procedure – Open project selection procedure • Beneficiaries – Companies • Support to companies is given according to Commission Regulation (EC) No.800/2008, (General block exemption regulation) • Project execution is till 2015 • New program supplements „Competence Centers”, „ New product and technology development – aid for implementation of new products and technologies in production ”, „New product and technology development” un „Support to create new jobs”

6. Description of program • Maximum public co-financing for one company- 2.10 million (3 millionEUR). • Aid intensity - 30% • Financing is provided for companies for purchasing new technologies and machinery, for construction and re-construction of buildings what is related to new economic activities or expanding of existing economic activities, diversification of production with new products or significant change of production process. • Project realization – max., 2years

7. CRITERIA OF QUALITY ACCEPTANCE • 1.quality criterion– Added value for one employee; • 2.quality criterion–Preparedness for implementation of planned activities; • 3.quality criterion–Project applicants ability to raise necessary financing; • 4.quality criterion– Project implementation industry; • 5.quality criterion–Project applicants employees monthly average income before submission of the project • 6.-7.quality criteria– Horizontal priorities.

8. Thank You for your attention! Brīvības iela 55, Rīga, LV 1519Tālrunis: 67013101Fakss: 67280882E-pasts: pasts@em.gov.lv Mājas lapa: www.em.gov.lv