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dossier	COM(2023)729 - Wijziging van Uitvoeringsbesluit (EU) (ST 10157/21 INIT; ST 10157/21 ADD 1) van 13 juli 2021 betreffende de goedkeuring van ...
document	COM(2023)729
datum	16 november 2023

Annex IVa to that Regulation.
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EUROPEAN COMMISSION

Brussels, 16.11.2023

COM(2023) 729 final

ANNEX

to the

Proposal for a COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10157/21 INIT; ST 10157/21 ADD 1) of 13 July 2021 on the approval of the assessment of the recovery and resilience plan for Latvia

{SWD(2023) 375 final}

ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN

1.Description of Reforms and Investments

A. COMPONENT 1: CLIMATE CHANGE AND ENVIRONMENTAL SUSTAINABILITY

The general objective of this component of the Latvian recovery and resilience plan is to contribute to the green transition and notably contribute to the environmental objectives of climate change mitigation and climate adaptation. Each sub-component focuses on some of the challenges of the green transition. Subcomponent 1.1 focuses on sustainable mobility with a view to decrease emissions in the transport sector, especially in Riga and its periphery by investing in clean public transport (notably railway) infrastructure. Subcomponent 1.2 mainly targets increasing energy efficiency by supporting various energy renovation programmes in public and private buildings and supporting sustainable energy networks. Lastly, subcomponent 1.3 contributes to climate adaptation by preventing climate change related risks such as fires and floods.

The component supports addressing the Country-Specific Recommendations on transport notably on its sustainability, energy efficiency and energy interconnections (Country Specific Recommendation 3, 2019). It also contributes to front-loading mature public investment projects and focusing on the green and digital transition, in particular clean and efficient production and use of energy, sustainable transport infrastructure (Country Specific Recommendation 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

A.1. Description of the reforms and investments for non-repayable financial support

Reform: 1.1.1.r. Greening the Riga Metropolitan Transport System

The general objective of the measure is to contribute to reduce Latvia’s greenhouse gas (GHG) emissions with a focus on transport which represents the biggest source of GHG emissions (28,5 % share of total GHG emissions (excluding land use, land-use change and forestry) in 2018 and 36,7 % of non-ETS GHG emissions). This measure specifically focuses on the Riga metropolitan area which covers about 65% of the Latvian population. A specific objective is to consolidate and rationalise the currently fragmented transport system to incentivise the use of public transportation.

The measure consists in a general overhaul of the Riga Metropolitan Transport System. A multimodal public transport network with a single and coherent timetable, a single price and discount policy and a single ticket system shall be created. The measure shall also include a substantial investment programme in clean mobility and infrastructure with a focus on railway solutions (electrification of 100 km of railway), zero-emission public transport (acquisition of 17 electric buses and seven electric bus charging stations) and construction of cycle lanes. This shall be complemented by the construction of a public transport hub (bus/electric bus, tram and trolleybus), eight mobility points, a 5.3 km bus rapid transit lane and the extension of the tram line by 2.2 km and trolleybus line by 0.3 km, to support multimodal transport use.

The measure shall be implemented by 31 August 2026.

Investment: 1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies

The general objective of this measure is to improve the energy efficiency of buildings. As energy consumed in the buildings sector accounts for up to 40% of the final energy consumption, the measure is expected to reduce the impact on the environment and contribute to climate change mitigation. Another aim is to reduce energy bills for inhabitants and increase the level of security of energy supply. Other specific objectives include reducing the level of energy poverty and supporting employment. This measure specifically focuses on multi-apartment buildings.

The measure consists of a support programme for energy renovation in multi-apartment buildings. It shall take the form of a financial instrument (loan) with a capital discount of up to 49 % of the amount of the loan. Aid shall only be available for buildings where the project is expected to achieve at least 30 % energy savings.

The measure shall be implemented from 1 September 2021 until 31 August 2026.

Investment: 1.2.1.2.i. Increasing energy efficiency in business, in the form of a combined financial instrument

The general objective of this measure is to improve the energy efficiency of Latvian businesses. Investments in the energy efficiency of businesses aim to promote a rationalised use of energy resources, reduce negative impacts on the environment and climate, as well as improve the productivity, competitiveness and export capacity of enterprises. This measure specifically focuses on businesses.

The first pillar of the measure consists in a support programme in the form of a combined financial instrument (loan with a grant in the form of a capital discount). The investment programme shall finance investments by enterprises in improving energy efficiency, introducing renewable energy technologies, as well as investing in sustainable transport and introducing new energy-efficient technologies in production. A second pillar of the measure shall consist in grants for the development (through industrial research, experimental development, feasibility studies) of new products and technologies related to the low carbon economy, climate resilience and adaptation.

The measure shall be implemented from 1 January 2022 until 31 August 2026.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 1 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 2 ; (iii) activities related to waste landfills, incinerators 3 and mechanical biological treatment plants 4 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation may be selected.

Investment: 1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency

The general objective of this measure is to improve the energy efficiency of Latvian municipal buildings. A large part of existing municipal buildings had been built before thermal requirements for building were increased and therefore have a low energy performance. More specifically, the objective of the measure is to improve the energy efficiency of local government buildings and infrastructure in order to reduce annual primary energy consumption and reduce GHG emissions. As a complementary objective, this measure is also expected to reduce the cost of maintenance of municipal buildings.

The measure consists of investments in energy efficiency renovation in buildings owned by local government (and mixed properties where the municipalities are majority shareholders), including buildings dedicated to social housing, health care, education and social services.

The measure shall be implemented from 1 January 2022 until 31 December 2025.

Investment: 1.2.1.4.i. Improving the energy efficiency of public sector buildings, including historical buildings

The general objective of this measure is to improve the energy efficiency of the Latvian public building stock. It applies to buildings owned by the central government including historical ones. The measure seeks to improve their energy efficiency, promote the transition to renewable energy in energy production, and achieve GHG emission reductions.

The measure consists of investment in energy efficiency improvements for public buildings. The aid shall ensure that the implementation of all projects shall, on average, result in at least 30% energy savings under the programme.

The measure shall be implemented from 1 January 2022 until 31 August 2026.

Investment: 1.2.1.5.i. Modernisation of electricity transmission and distribution networks

The general objective of this measure is to contribute to reaching climate neutrality objectives by creating a sustainable grid infrastructure in which green technologies notably wind may be more easily deployed. Investments in the green transformation of electricity grids and digital infrastructure are necessary to provide adequate electricity supply infrastructure for electro-mobility, and sustainable and efficient system operation. The measure is also expected to contribute to the synchronisation of the Baltic electricity systems with continental European networks and the objectives and activities of the Baltic Electricity Market Integration Plan.

The measure consists of direct investment in upgrading the electricity grid, developing IT solutions to increase the flexibility and security of the transmission system and distribution system and creating among others a national electricity market data exchange and storage platform and an automated smart metering system. The measure shall also improve the regulatory framework and the enabling conditions to facilitate the deployment of onshore wind energy on state forest land and to reduce legal uncertainty for investments in wind power. The measure shall be implemented from 1 January 2022 until 31 August 2026.

Reform: 1.3.1.r. Disaster management system adaptation to climate change, rescue and rapid response services

The general objective of this measure is to contribute to climate objectives by strengthening the response capacity of disaster and fire rescue services. The measure shall contribute to climate adaptation by shortening the response time of fire rescue services (in the framework of a more general reform integrating different services of the Ministry of the Interior under one roof). The measure is also expected to contribute to climate mitigation by moving these services to new energy efficient buildings.

The measure consists of the construction of eight new energy-efficient disaster management centres.

The measure shall be implemented from 1 January 2022 until 31 March 2026.

1.3.1.2.i. Investments in flood risk reduction infrastructure

The general objective of this measure is to contribute to climate change adaptation by preventing floods. It shall lead to the implementation of investment projects protecting against the risk of flooding.

The measure consists of investments in flood risk reduction infrastructure, including rebuilding and renewal of polder pumping stations, renewal of protective dikes and a canal.

The measure shall be implemented from 1 January 2022 until 31 August 2026.

A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
1	1.1.1.r. Greening the Riga Metropolitan Range Transport System	Milestone	Coordinated approach for passenger transport planning, ordering and organisation of the Riga metropolitan area	A coordinated approach has been implemented for passenger transport planning, ordering and organisation of the Riga metropolitan area	N/A	N/A	N/A	Q4	2023	Completion of the necessary steps to implement coordinated approach. This includes among others: — setting up a working group for the coordination of Riga metropolitan area public transport planning; — The Riga metropolitan area public transport plan has been adopted in line with the development of passenger transport by rail in Latvia.
2	1.1.1.r. Greening the Riga Metropolitan Range Transport System	Milestone	Reform of public transport RMA	Entry into service of a unified multimodal public transport route network for the Riga metropolitan area	N/A	N/A	N/A	Q4	2025	Entry into service of a multimodal public transport route network for the Riga metropolitan area with a single and harmonised timetable, single price and discount policy and single ticket for integrated public transport system Riga metropolitan area
3	1.1.1.1.i. Competitive rail passenger transport within the common public transport system of the city of Riga	Target	Length of electric rail lines created and existing railway upgraded for passenger transport		Km	0	100	Q1	2026	Electrification (change of contact network for transition to 25 kV electrification system, increase of total length of electrified lines) and related activities (construction of electric track sections, adaptation of signaling systems).
4	1.1.1.1.i. Competitive rail passenger transport within the common public transport system of the city of Riga	Target	Construction of battery train charging infrastructure		Km	0	45	Q3	2026	Battery electric train charging infrastructure completed and certified on the Zemitani – Sigulda rail line, including electrification of 45 km of rail lines and construction of a 3.3kV traction power substation.
5	1.1.1.2.i. Environmentally friendly improvements to the public transport system of the city of Riga	Target	Zero-emission transport investments (electric buses and charging stations)		Number	0	24	Q3	2026	The following zero-emission transport investments shall be completed: - Delivery of 17 electric buses - Construction of 7 charging stations for buses
5a	1.1.1.2.i. Environmentally friendly improvements to the public transport system of the city of Riga	Milestone	Public transport infrastructure projects completed	Completed projects	N/A	N/A	N/A	Q3	2026	The following transport infrastructure shall be completed: -Bus rapid transit lane, 5.3 km long -One public transport hub (bus/electric bus, tram and trolleybus) -Eight mobility points -Extension of tram line by 2.2 km -Extension of trolleybus line by 0.3 km
6	1.1.1.3.i. Complete bike riding infrastructure	Target	Length of newly built or renovated cycle infrastructure in the city of Riga and Pieriga (part of Riga Metropolitan Area)		Km	0	52	Q3	2026	Entry into operation of newly built or renovated cycle infrastructure.
7	1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies	Milestone	Entry into force of support programme for improving energy efficiency in residential buildings	Entry into force of support programme for improving energy efficiency in residential buildings	N/A	N/A	N/A	Q1	2022	Entry into force of support programme for improving energy efficiency in residential buildings with eligibility criteria to reflect requirements of applicable intervention field “025 bis – energy efficiency renovation of existing housing, demonstration projects and support measures meeting energy efficiency criteria” of Annex VI of the RRF Regulation.
8	1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies	Target	Approved projects representing at least EUR 40 097 400		EUR	0	40 097 400	Q3	2024	Approved projects by Altum representing at least EUR 40 097 400. Approval is undertaken by the development finance institution Altum.
9	1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies	Target	Reduction of primary energy consumption in multi-apartment buildings with improved energy efficiency		MWh/ Year	0	14 423	Q3	2026	Reduction of primary energy consumption in multi-apartment buildings benefitting from improved energy efficiency renovations under the measure.
10	1.2.1.2.i. Increasing energy efficiency in business in the form of a combined financial instrument	Milestone	Entry into force of the Support Programme for Entrepreneurial Energy Efficiency	Entry into force of Regulation	N/A	N/A	N/A	Q1	2022	Entry into force of Regulation approved by the Cabinet of Ministers supporting the implementation of programmes to improve energy efficiency of businesses. The support programmes shall be implemented in the form of a combined financial instrument, which is a repayable loan and a capital discount. As eligibility criteria to reflect requirements of applicable intervention field “024.ter – Energy efficiency and demonstration projects in SMEs or large enterprises and support measures meeting energy efficiency criteria [3]” of Annex VI of the RRF Regulation the aid conditions shall set a minimum primary energy saving of 30 % for energy efficiency projects in buildings and for equipment, a minimum of 30 % of average primary energy savings in the project portfolio of the RRF measure (with at least 25 % for energy efficiency equipment). In order to ensure that results are achieved, the conditions shall include a minimum threshold for energy savings per euro of public funding invested as an eligibility criterion for the project. The conditions shall include eligibility criteria to ensure compliance with the DNSH principles in line with the DNSH Guidelines (2021/C58/01) and with relevant EU and national legislation. Support shall be provided through competitive tendering for projects with the highest expected energy savings per one euro invested.
11	1.2.1.2.i. Increasing energy efficiency in business in the form of a combined financial instrument	Target	Planned GHG emission savings		Co2 equivalent in t/year	0	11 498	Q3	2026	Greenhouse Gases emissions savings, in Co2 equivalent per ton, based on expected emission savings as a result of the measure.
12	1.2.1.2.i. Increasing energy efficiency in business in the form of a combined financial instrument	Target	Approved projects representing at least EUR 108 000 000		EUR	0	108 000 000	Q4	2024	Approved projects representing at least EUR 108 000 000.
13	1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency	Milestone	Entry into force of the legal framework for a support programme to improve energy efficiency in municipal infrastructure, which supports projects with a planned reduction of primary energy or CO2 by at least 30 %.	Entry into force of Cabinet Regulation				Q4	2022	Entry into force of Cabinet Regulation laying down implementing conditions for improvement of local government buildings and infrastructure, promoting the transition to the use of renewable energy technologies and improving energy efficiency, with eligibility criteria to reflect requirements of applicable intervention field “026 bis – Energy recovery or energy efficiency measures for public infrastructure, demonstration projects and support measures meeting energy efficiency criteria” of Annex VI of the RRF Regulation
14	1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency	Target	Award of contracts for the implementation of energy efficiency improvement projects for local government buildings and infrastructure for at least EUR 27 838 800		EUR	0	27 838 800	Q4	2024	Notification of the award of contracts for at least EUR 27 838 800.
15	1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency	Target	Reduction in primary energy consumption in municipal buildings and infrastructure		KWh/Year	0	4 544 563	Q4	2025	Reduction in primary energy consumption in municipal buildings and infrastructure resulting from energy efficiency improvement measures in municipal buildings and infrastructure supported under the measure. Energy certificates may be used to demonstrate the reduction in primary energy consumption. The measures shall aim to reduce primary energy consumption by at least 30 %.
16	1.2.1.4.i. Improving the energy efficiency of public sector buildings, including historical buildings	Milestone	Entry into force of support programme for improving energy efficiency in national and historical buildings	Entry into force of support programme for improving energy efficiency in national and historical buildings approved by the Cabinet of Ministers	N/A	N/A	N/A	Q1	2022	Entry into force of a support programme for improving energy efficiency in national and historical buildings, with eligibility criteria to reflect requirements of applicable intervention field 026 bis – Energy recovery or energy efficiency measures for public infrastructure, demonstration projects and support measures meeting energy efficiency criteria of Annex VI of the RRF Regulation.
17	1.2.1.4.i.Improving the energy efficiency of public sector buildings, including historical buildings	Target	Notification of contract award for representing at least EUR 16 769 200		EUR	0	16 769 200	Q3	2024	Notification to beneficiaries of contract award representing at least EUR 16 769 200.
18	1.2.1.4.i. Improving the energy efficiency of public sector buildings, including historical buildings	Target	Reduction of primary energy consumption in public buildings with improved energy efficiency		MWh/Year	0	3 875	Q3	2026	Reduction of primary energy consumption in public buildings with improved energy efficiency resulting from the investments supported under the measure. Energy certificates may be used to demonstrate the reduction in primary energy consumption.
19	1.2.1.5.i. Modernisation of electricity transmission and distribution networks	Target	Notification of contracts award to projects approved for EUR 80 000 000.		EUR	0	80 000 000	Q1	2023	Notification to beneficiaries of contracts award to projects approved for EUR 80 000 000.
20	1.2.1.5.i. Modernisation of electricity transmission and distribution networks	Target	Connection points for electric vehicles charging and/or microgeneration installation		Number	0	2 060	Q3	2026	Combined number of operational connection points for electric vehicles charging and/or operational microgeneration installation
21	1.2.1.5.i. Modernisation of electricity transmission and distribution networks	Milestone	Entry into force of regulatory framework to ensure the transmission of electricity produced from RES to networks (including the use of forests and other public land for wind energy production) and to promote the development of wind energy infrastructure.	Entry into force of: a) Legislation/regulation making state forests available for wind energy deployment, designating appropriate areas for development and making them available for bidding by private investors. b) Legislation/regulation reducing legal uncertainty for investments in wind energy by specifying cases in which investments may be rejected post impact-assessment and by introducing fast-track resolution mechanism for such cases	N/A	N/A	N/A	Q2	2024	Entry into force of: a) Legislation/regulation making state forests available for wind energy deployment, designating appropriate areas for development and making them available for bidding by private investors; b) Legislation/regulation reducing legal uncertainty for investments in wind energy by specifying cases in which investments may be rejected post impact-assessment and by introducing fast-track resolution mechanism for such cases. The measure shall ensure compliance with the DNSH principle, in line with the DNSH Guidelines (2021/C58/01), notably as regards the impacts of the measure on forests due to land use change, and with the EU environmental law.
22	1.3.1.r. Disaster management system adaptation to climate change, rescue and rapid response services	Milestone	Publication of a report on implementation of the disaster risk management system	Publication of an information report on the implementation of the disaster risk management system approved by the Cabinet of Ministers	N/A	N/A	N/A	Q1	2022	In agreement with the institutions involved in the disaster management system, the Ministry of the Interior shall publish an informative report to the Cabinet of Ministers on the construction sites of disaster centres, construction areas and costs at each construction site, as well as the indicative timetable for the implementation of the disaster management plans to be deployed at each site and on the conclusion of construction contracts, including in the report. The report shall also include an overall reform progress report and an implementation plan on the following reform components: (i) the technical capacity building (notably on the upgrading of specialised response and rescue vehicles), (ii) the timetable for implementation of related disaster management ICT solutions and (iii) progress on implementation of training and preventive measures.
23	1.3.1.1.i. Disaster management system adaptation to climate change, rescue and rapid response services	Target	Construction of nearly 0 -energy-consumption disaster management and emergency response centres		Number	0	8	Q1	2026	Number of newly built centres put into service. The investment shall be used for the construction of nearly zero-energy-consumption disaster management centres.
24	1.3.1.r. Disaster management system adaptation to climate change, rescue and rapid response services	Target	Total fire area for wild fires over the 5-year period (2020-2024)		Area (hectares)	3923,1	2 635,3	Q1	2025	Total area affected by wildfires counted as an average over past four consecutive years. Wild fires shall be defined as peat, dry grass, last year’s grass, bushes, trees, crop stubbles, hay, rushes and reeds, forest ground, individual tree fires, in accordance with the cumulative State Fire and Rescue Service statistics.
25	1.3.1.2.i. Investments in flood risk reduction infrastructure	Milestone	Construction contracts awarded for half the total number of rebuilding and renewal	Construction contracts awarded for half the total number of rebuilding and renewal	%	0	50	Q4	2024	Construction contracts awarded for at least 50% of the total number of rebuilding and renewal by 31 December 2024
26	1.3.1.2.i. Investments in flood risk reduction infrastructure	Target	Number of investment projects completed		Number	0	21	Q3	2026	The following projects protecting against the risk of flooding shall be completed: ·Eight pumping stations, including i) Reinis pumping station, ii) Kulciems pumping station and iii) Vezi pumping station; ·Twelve protective dikes, including i) Bernati polder, ii) Barta polder, iii) Rezekne left bank dyke, iv) Osa polder dyke; ·One canal. To ensure compliance with the DNSH principles in line with the DNSH Guidelines (2021/C58/01), the measure shall: I)where relevant, include “appropriate assessments” as referred to in article 6(3) of the Habitats Directive in order to assess the impacts of the proposed measures on protected species and habitats (as defined under the Birds Directive (Directive 2009/147/EC) and the Habitats Directives (Council Directive 92/43/EEC)). These appropriate assessments should be carried out for all projects located in or near biodiversity-sensitive areas; II)ensure that the sites in relation to which an appropriate assessment are carried out have site-specific conservation objectives and that necessary conservation measures are in place in line with the Habitats Directive; III)ensure full compliance with the Water Framework Directive (Directive/2000/60/EC) and not cause net-deterioration in the status of water bodies, in conformity with Article 4.7 of this Directive.

B. COMPONENT 2: DIGITAL TRANSFORMATION

The component addresses the main digital challenges - a lack of basic and advanced digital skills and low digital integration of the businesses. Moreover, the component addresses all the aspects of the digital transformation - public and private sector, skills and connectivity. The main focus of the investments is in infrastructure and services.

The objectives of the component are to contribute to the digital transformation of the society and economy, including the recovery from the COVID-19 crisis, by developing the necessary infrastructure, capacities and skills; improve efficiency, digital processes, and data management in public administration; provide support to the digital transformation of businesses and improve connectivity.

The component addresses the Country Specific Recommendations on skills and adult learning (Country Specific Recommendation 2, 2019, Country Specific Recommendation 2, 2020). In particular, it shall contribute to increasing the quality and efficiency of education and training with a focus on digital skills. Reskilling and upskilling measures for workers and unemployed are included, albeit without targeting low-skilled (Country Specific Recommendation 2, 2019). Investments in digital transition address the investment related Country Specific Recommendations (Country Specific Recommendations 3, 2019 and 3, 2020) - investments are envisaged in public sector IT systems, basic and advanced digital skills, digital adaptation of businesses, and connectivity.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

B.1. Description of the reforms and investments for non-repayable financial support

Reform: 2.1.1.r. Modernisation of national processes and services and digital transformation

The objective of the measure is to modernise public administration and its services through digital transformation, focusing on important functions, processes and services of the public administration that have not yet been digitally transformed, are being newly developed or substantially strengthened.

The reform consists of building the common ICT conceptual architecture for public administration services and their management support, defining qualitative and quantitative metrics of services. The implementation of the reform shall be coordinated and managed by the national ICT governance organisation, while the implementation of the specific tasks of implementing the reform shall be carried out by the authority responsible for each task.

The reform shall be implemented by 30 June 2022.

Investment: 2.1.1.1.i. Administration modernisation and digital transformation of services, including business environment

The objective of the measure is to transform public administration services and their delivery processes for the effective implementation of the digital transformation of the economy. It shall be done through the use of innovative technologies and approaches, including artificial intelligence and machine learning solutions, as well as by introducing a data-based foresight and decision-making approach to service and process management and ensuring the full implementation of the ‘once-only’ principle.

The measure consists of investments in 11 individual systems or solutions in at least the following 4 areas: 1) the domestic affairs sector, including civil protection, fire safety supervision and public safety; 2) the cultural sector, including the accumulation of the heritage of archives, libraries, museums, cultural monuments and media content; 3) management of port logistics services; 4) support of ICT management processes.

The investment shall be implemented by 31 August 2026.

Reform: 2.1.2.r. Increasing efficiency and interoperability in the use of national ICT resources

The objectives of the reform are to transform the ICT provision approach in public administration by centralising the provision of uniform ICT sharing services in competence centres that support several institutions.

The reform consists of the development of central systems and platforms of public administration and consolidation of computing infrastructure services, enabling the automation and efficiency of the processes of supply, ensure cross-border access to public administration services, and consolidation of public administration computing and data storage infrastructure services.

The reform shall be implemented by 30 June 2022.

Investment: 2.1.2.1.i. Centralised platforms, systems and shared services

The objective of the investment is to ensure the functioning of the administration as a single organisation, which would include the introduction of standardised support functions such as accounting, staff administration, resource accounting and management.

The investment consists of four public service delivery platforms, five sectoral and support functions platforms, and six shared platforms and systems for municipalities.

The investment shall be implemented from 1 April 2022 until 31 August 2026.

Investment: 2.1.2.2.i. National Federated Cloud of Latvia

The objectives of the investment are to provide shared computing and data management infrastructure and services for the public administration and developing the ICT infrastructure competence centres for storage and computing of public administration data.

The investment consists of the development of public sector data storage and computational capabilities within the framework of four projects carried out by the Latvian State Radio and Television Centre, the National Library of Latvia, the Information Centre of the Ministry of the Interior and the Ministry of Agriculture. As a result of the investment, at least ten public administration platforms and information systems shall be operated through shared cloud computing services.

The investment shall be implemented by 31 August 2026.

Reform: 2.1.3.r. Development of the national economy data and digital services economy

The objective of the reform is to ensure the availability and sharing of public and private data and services by laying the foundations for the development and interoperability of the data and platform economy with European data spaces and by ensuring data sharing within the EU.

The reform consists of developing the capacities of the public sector to manage, share and publish for repeated use datasets at its disposal.

The reform shall be implemented by 31 December 2023.

Investment: 2.1.3.1.i. Data availability, sharing and analysis

The objectives of the investment are to promote data sharing within the public sector and between the public and private sectors, the introduction of the ‘once-only’ principle and the sharing of data in the national and European area.

The investment consists of creating high availability data loading and recovery solutions and a set of data objects from at least ten different sectors and areas of public administration, including the following eight sectors and areas: business, science, environment, finance, public procurement, healthcare, veterinary and agriculture (geospatial data).

The investment shall be implemented by 31 August 2026.

Reform: 2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage

The objectives of the reform are to establish European Digital Innovation Hub (EDIH), ensure its regional presence through regional contact points, and to create a single and coordinated support ecosystem to facilitate the digital transformation of commercial activities.

The reform consists of establishing EDIH, a single platform/ecosystem supporting digital transformation as a one-stop-shop, establishing a digital maturity test system; ensuring the regional contact points provide the following new digital transformation support functions: digital maturity tests in regions; access to testing and piloting; mentoring and digital skills training. The EDIH may receive funding from other EU funds, including the Digital Europe programme, for carrying out their activities.

The reform shall be implemented by 30 September 2022.

Investment: 2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and regional contact points

The objective of the investment is to enhance digital transformation of entities through offering tailored support measures based on identified digitalisation needs of entities.

The investment consists of providing support to the operation of European Digital Innovation Hubs (EDIH). For small and medium-sized enterprises and mid-cap entities, as well as the public sector, the operation of EDIH shall be structured into work packages that aim to provide entities with a digital maturity test; train entity representatives, and identify the investment and infrastructure needs. The RRF support shall not concern work packages for which EDIH receive support under the Digital Europe Programme.

The investment shall be implemented by 30 June 2026.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 5 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 6 ; (iii) activities related to waste landfills, incinerators 7 and mechanical biological treatment plants 8 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected.

Investment: 2.2.1.2.i. Support for the digitisation of processes in commercial activities

The objectives of the investment are to promote increased productivity through targeted investment of resources, and to create higher added value in the entity processes.

The investment consists of a grant scheme for digitisation of the processes and functions in entities. Support may be granted for acquisition of IT solutions, both software and hardware, acquisition of sensors, purchase of IT equipment, IT infrastructure, implementing digital integration processes.

The investment shall be implemented by 30 June 2026.

Investment: 2.2.1.3.i. Support for the introduction of new products and services into business

The objective of the investment is to promote the creation of new high-tech digital products and services.

The investment consists of a grant scheme for the introduction of modern automation, robotisation and labour control tools in the manufacturing and service development processes, as well as to support the introduction of personalized e-commerce solutions. Supported activities for new digital products and services include feasibility studies; industrial research; experimental development, including prototyping; and support to projects under Digital Europe programme.

The investment shall be implemented by 30 June 2026.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 9 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 10 ; (iii) activities related to waste landfills, incinerators 11 and mechanical biological treatment plants 12 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected.

Investment: 2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators

The objectives of the investment are to boost the productivity and production process efficiency for maximum returns by supporting large-scale and productivity-oriented investments in digital transformation tools. The investments shall facilitate the introduction of Industry 4.0 solutions into production processes.

The investment consists of a financial instrument scheme providing loans with grant elements for making significant changes to the overall production or service development process, to digitalise traditional processes in companies, introduce Industry 4.0 solutions (internet of things, artificial intelligence, machine learning, block chain, big data, cloud computing high performance computing (HPC)) for the core business of companies.

The investment shall be implemented by 30 June 2026.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 13 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 14 ; (iii) activities related to waste landfills, incinerators 15 and mechanical biological treatment plants 16 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected.

Investment: 2.2.1.5.i. Fostering the digital transformation of media companies

The objectives of the investment are to facilitate the digital transformation of the media sector and to facilitate the adaptation of media companies to modern media consumption trends in the digital environment.

The investment consists of a support scheme for investments in the development of technological solutions and improving digital skills and business models in the media sector.

The investment shall be implemented by 30 June 2026.

Reform: 2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning

The objectives of the reform are to increase the adult learning participation rate to 8% (adults aged 25-64) by 31 December 2025 and facilitate reaching other targets set in the Education Development Guidelines 2021-2027. The reform shall establish and strengthen the legal framework for a sustainable and socially responsible support system for adult learning; encourage enterprises (especially SMEs) to provide their employees with opportunities to improve their skills and competences; and create more opportunities and rights for employees to participate in education and training.

The reform consists of the set of policy development milestones fixed in the Education Development Guidelines 2021-2027 coming into force; setting responsibilities of enterprises for education and training of their employees; setting up and piloting individual learning accounts; and piloting three skills funds.

The reform shall be implemented by 30 June 2026.

Investment: 2.3.1.1.i. Ensuring the acquisition of advanced digital skills

The objective of the investment is to significantly increase the number of specialists with high-level digital skills (DESI levels 3-5) that are able to apply high technology knowledge and technology-intensive new products and services to the development of new products and services in different sectors in the next six years.

The investment consists of developing approximately 20 advanced digital skills training modules in quantum technologies, HPC and language technologies to be included in formal and adult education and training programmes.

The investment shall be implemented by 31 August 2026.

Investment: 2.3.1.2.i. Development of digital skills of enterprises

The objective of the investment is to increase the level of digital skills in companies.

The investment consists of provision of basic digital skills trainings by the European Digital Innovation Hubs in cooperation with sectoral associations, educational institutions and involving the existing Regional Business Centres.

The investment shall be implemented by 30 June 2026 for the provision of digital skills trainings for employees in 2 521 enterprises.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 17 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 18 ; (iii) activities related to waste landfills, incinerators 19 and mechanical biological treatment plants 20 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation can be selected.

Investment: 2.3.1.3.i. Development of a self-managed learning approach for ICT specialists

The objectives of the investment are to develop a new approach for the preparation of ICT specialists, creating a learning environment for self-managed ICT learning to increase the share of ICT specialists, including women, in the structure of employees.

The investment consists of the development of a learning environment for self-managed ICT training and provision of training for at least 1000 professionals in self-managed ICT learning.

The investment shall be implemented by 31 August 2026.

Investment: 2.3.1.4.i. Development of the individual learning account approach

The objectives of the investment are to develop and approve the concept of individual learning accounts (ILAs) in order to stimulate adult participation in education, in particular improving digital skills.

The investment consists of supporting 3500 adults to acquire digital skills through individual learning accounts. This shall be implemented by making available the best digital learning tools; using specialised solutions for high-quality machine translation and other artificial intelligence technologies, involving education experts in the validation and adaptation of localised content.

The investment shall be implemented by 31 August 2026.

Reform: 2.3.2.r. Digital skills for the digital transformation of society and government

The objective of the reform is to achieve at least basic digital skills level for 54% of inhabitants aged 16-74.

The reform consists of a development of the common framework for the assessment of basic digital skills, the identification and planning of training needs and the assessment.

The reform shall be implemented by 31 December 2022 in relation to setting up the framework, 31 December 2022 for amending higher education standards and 31 August 2026 for reaching digital upskilling targets.

Investment: 2.3.2.1.i. Digital skills for citizens, including young people

The objectives of the investment are providing support measures for the acquisition of digital skills for citizens from all groups of society, especially youth; introduction of a systemic approach in municipalities for the development of digital skills; development of digital and technological literacy of young people outside formal education.

The investment consists of the development of digital self-service skills (e-learning courses); provision of self-training and other digital training measures at local level; technological innovation activities in line with Joint Technology Creativity Guidelines for the development of youth technology and innovation capacity; municipalities programmes for the youth. The investment aims to provide basic digital skills for at least 50 000 people, and complete digital skills programmes for youth in all 42 municipalities.

The investment shall be implemented by 31 December 2024 for e-learning course development; trainings, technological innovation activities and municipality programmes shall be implemented by 31 August 2026.

Investment: 2.3.2.2.i. Development of state and local government digital transformation skills and capabilities

The objectives of the investment are to increase the skills of employees of public administration in digital transformation and their use of technologies, in order to develop policies fit for the digital age.

The investment consists of increasing the digital competence and capacity of national government and local government employees, including digital transformation planning and change management, use of data analytics, artificial intelligence and other modern technologies to modernise operations and services, flexible ICT project management, use of modern digital infrastructures and management.

The investment shall be implemented by 30 June 2023 for digital skills and competence framework and by 31 August 2026 for improving the digital skills for public administration employees.

Investment: 2.3.2.3.i. Closing the digital divide for socially vulnerable learners and educational institutions

The objectives of the investment are to provide access to learning content and allow participating in remote learning process for the pupils from socially vulnerable groups. A framework for organisation and implementation of remote learning in educational institutions will be approved by end of 2021.

The investment consists of purchasing information and communication technology equipment for general education institutions, with targeted support for pupils from socially vulnerable groups, teachers and the creation of a “computer library” in educational institutions. The investment shall be implemented by 31 December 2023.

Reform 2.4.1.r. Broadband infrastructure development

The objectives of the reform are to promote connected automated driving and to support sustainable mobility, including by improving road safety through innovation.

The reform consists of the adoption of technical requirements for connected and automated driving, and the adoption of a common model for the development of the “last mile”.

The reform shall be implemented by 31 December 2021.

Investment: 2.4.1.1.i. [deleted]

Investment: 2.4.1.2.i. Broadband or very high capacity network “last mile” infrastructure development

The objectives of the investment are to create opportunities for regional development and stimulate demand for new digital services.

The investment consists of providing 6200 households, businesses and socio-economic drivers with access to very high capacity broadband network.

The investment shall be implemented by 31 August 2026.

B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
27	2.1.1.r. Modernisation of national processes and services and digital transformation	Milestone	Establishment of a framework for unified governance management of ICT development activities in public administration	Entry into force of the legal framework	N/A	N/A	N/A	Q1	2022	Regulations of the Cabinet of Ministers laying down common procedures for monitoring ICT development activities entered into force. For the new regulations to be applicable for all ICT development activities within the scope of the measures of the Latvian recovery and resilience plan (including municipalities), the scope of the Law of State Information Systems shall be extended. If adoption of the amendments to the law are delayed, temporary regulation to supplement specific normative framework for specific regulations for respective ICT project activities issued.
28	2.1.1.r. Modernisation of national processes and services and digital transformation	Milestone	Establishment of a normative framework for receiving support in the field of digital transformation of public administration processes and services	Entry into force of the legal framework	N/A	N/A	N/A	Q2	2022	Cabinet of Ministers regulation entered into force for granting support in the field of digital transformation of public administration processes and services
29	2.1.1.1.i. Administration modernisation and digital transformation of services, including business environment	Target	Descriptions of ICT solutions development activities developed and harmonised		Number	0	11	Q3	2023	The ICT solutions (systems) descriptions concept models shall be developed in accordance with the adopted legal framework for ICT governance. Descriptions define ICT development activities to develop or modernisze ICT solutions in at least following 4 areas: 1) the domestic affairs sector, including civil protection, fire safety supervision and public safety; 2) the cultural sector, including the accumulation of the heritage of archives, libraries, museums, cultural monuments and media content; 3) management of port logistics services; 4) support of ICT management processes.
30	2.1.1.1.i. Administration modernisation and digital transformation of services, including business environment	Target	Delivery of ICT solutions for modernised public administration functions (including systems)		Number	0	11	Q3	2026	The public administration function shall be modernised with the following ICT solutions and systems fully operational in at least the following 4 areas: 1) the domestic affairs sector, including civil protection, fire safety supervision and public safety; 2) the cultural sector, including the accumulation of the heritage of archives, libraries, museums, cultural monuments and media content; 3) management of port logistics services; 4) support of ICT management processes.
31	2.1.2.r. Increasing efficiency and interoperability in the use of national ICT resources	Milestone	Establishment of the legal framework for receiving support in the area of development of central systems and platforms of public administration and consolidation of computing infrastructure services	Entry into force of the legal framework	N/A	N/A	N/A	Q2	2022	Entry into force of the legal framework for granting support in the area of development of central IT systems and platforms of public administration and consolidation of computing infrastructure services
32	2.1.2.1.i. Centralised platforms, systems and shared services	Target	Approval of development plans for the creation, transformation or deployment of centralised ICT functions and shared services		Number	0	15	Q1	2023	Before investments in development of centralised functions or shared services, the responsible institution shall prepare and get approval of the centralised ICT function or shared service development plan (including with regard to the financing of services).
33	2.1.2.1.i. Centralised platforms, systems and shared services	Target	Adoption of harmonised descriptions of the development activities of centralised ICT solutions		Number	0	15	Q3	2023	Harmonised descriptions shall be adopted to define ICT development activities of centralised platforms and systems. The ICT solutions (systems) shall be developed in accordance with the adopted legal framework for ICT governance.
34	2.1.2.1.i. Centralised platforms, systems and shared services	Target	Number of centralised ICT platforms and systems set up and in operation		Number	0	15	Q3	2026	The following centralised ICT platforms or systems set up shall be in operation: 1) public services delivery platforms - 4; 2) sectoral and support functions platforms - 5; 3) shared platforms and systems for municipalities - 6.
35	2.1.2.2.i. National Federated Cloud of Latvia	Target	Number of platforms or systems operated by shared service providers through shared cloud services		Number	0	4	Q4	2024	The target shall be considered to be fulfilled when each of the four shared services providers (Latvia Radio and Television Centre, National Library of Latvia, Ministry of Interior Affairs Information Centre, Ministry of Agriculture) operates at least one national platform or information system through shared cloud services, including capacity balancing and backup recovery in a physically remote data centre.
36	2.1.2.2.i. National Federated Cloud of Latvia	Target	Number of platforms or systems operated by shared service providers through shared cloud services		Number	0	10	Q3	2026	The target shall be considered to be fulfilled when four shared service providers taken together (Latvia Radio and Television Centre, National Library of Latvia, Ministry of Interior Affairs Information Centre, Ministry of Agriculture) operate at least ten public administration platforms or information systems through shared cloud services, including capacity balancing and backup recovery in a physically remote data center.
37	2.1.3.r. Development of the national economic data and digital services economy	Milestone	Entry into force of the legal framework for receiving support in the field of transformation of economic data management	Entry into force of the legal framework	N/A	N/A	N/A	Q2	2022	Entry into force of the legal framework for granting support in the field of transformation of economic data management harmonised by the Cabinet of Ministers
38	2.1.3.r. Development of the national economic data and digital services economy	Milestone	Legal framework for the functioning of the national platform for the circulation of data	Entry into force of the legal framework	N/A	N/A	N/A	Q4	2023	The successful implementation of the reform shall be ensured by entry into force of the legal framework specifying the following aspects of the national platform: 1.data sharing management, including the data exchange process in the central data exchange platform; 2.the rights and duties of the participating institutions for the sharing and circulation of data within the central data exchange platform, 3.uniformed and facilitated processing of personal data within the central data exchange platform.
39	2.1.3.1.i. Data availability, sharing and analysis	Target	Sectors for which relevant datasets are available on the national data circulation platforms, including controlled distribution platforms, geoportal or open data portals		Number	0	10	Q3	2026	The national centralised data management and dissemination platforms shall provide access to datasets covering at least 10 different sectors and areas of public administration, including the following 8 sectors and areas: business, science, environment, finance, public procurement, healthcare, veterinary and agriculture (geospatial data).
40	2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage	Milestone	The European Digital Innovation Hub (EDIH) has been established	The European Digital Innovation Hub (EDIH) has been established	N/A	N/A	N/A	Q2	2022	The EDIH shall be in operation in line with the Digital Europe Programme priorities and form part of the network of a common European Digital Innovation Hub. It shall serve as a one-stop shop for the coordination of the digital transformation of businesses. It aims to ensure a common approach and information exchange of regional business centres, digital maturity test and state support.
41	2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage	Milestone	Regional business support centres provide new digital transformation support functions	Regional business support centres provide digital transformation support functions	N/A	N/A	N/A	Q3	2022	The regional business support centres shall have started providing the following new digital transformation support functions: 1.Digital maturity tests in regions; 2.Access to testing and piloting; 3.Mentoring and digital skills training.
42	2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage	Milestone	Establishment of a digital maturity test system for entities to identify the actions needed by the entities and state support.	Digital maturity test system in place	N/A	N/A	N/A	Q2	2022	A digital maturity test system for entities shall be established. The digital maturity test is a digital tool available on the EDIH website, which assesses an entity’s digital maturity in various aspects and may be filled by the entity independently or with the help of a consultant.
43	2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and Regional Contact Points	Target	Number of digital transformation roadmaps issued to entities other than small and medium-sized enterprises, mid-caps and the public sector by the European Digital Innovation Hub (EDIH)	N/A	Roadmaps issued	0	50	Q2	2024	Number of digital transformation roadmaps issued to entities other than small and medium-sized enterprises, mid-caps and the public sector by the EDIH indicating at least one investment. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
44	2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and Regional Contact Points	Target	Number of digital transformation roadmaps issued to entities other than small and medium-sized enterprises, mid-caps and the public sector by the European Digital Innovation Hub (EDIH)	N/A	Roadmaps issued	50	100	Q2	2026	Number of digital transformation roadmaps issued to entities other than small and medium-sized enterprises, mid-caps and the public sector by the EDIH indicating at least one investment. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
44a	2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and Regional Contact Points	Milestone	Support for the digital transformation of small and medium-sized enterprises and mid-caps, as well as the public sector, by the European Digital Innovation Hubs (EDIH)	Work packages of the European Digital Innovation Hubs (EDIH) completed	N/A	N/A	N/A	Q2	2026	All work packages of European Digital Innovation Hubs for small and medium-sized enterprises and mid-caps, as well as the public sector, shall be completed, excluding those that are funded by the Digital Europe Programme.
45	2.2.1.2.i. Support for the digitisation of processes in commercial activities	Target	Number of entities supported to digitise processes in commercial activity and for which the result of the digital maturity test improved, against the previous test result, after receipt of the grant and realisation of the project		Supported entities	0	80	Q2	2024	The target shall be executed when a contract has been concluded between the entity and the Investment and Development Agency of Latvia for the receipt of the grant and improvements to the test result are observed in the repeated Digital Maturity Test.
46	2.2.1.2.i. Support for the digitisation of processes in commercial activities	Target	Number of entities supported to digitise processes in commercial activity and for which the digital maturity test result improved, against the previous test result, after receipt of the grant and realisation of the project		Supported entities	80	200	Q2	2026	The target shall be executed when a contract has been concluded between the entity and the Investment and Development Agency of Latvia for the receipt of the grant and improvements to the test result are observed in the repeated Digital Maturity Test.
47	2.2.1.3.i. Aid for business introduction of new products and services	Target	Number of projects supported	N/a	Supported projects	0	14	Q2	2024	Number of contracts awarding grants by the CFCA for completed investments paid. The amount of one grant is expected to be up to EUR 1 000 000. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
48	2.2.1.3.i. Aid for business introduction of new products and services	Target	Number of projects supported	N/A	Supported projects	14	43	Q2	2026	Number of contracts awarding grants by the CFCA for completed investments paid. The amount of one grant is expected to be up to EUR 1 000 000. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
49	2.2.1.3.i. Aid for business introduction of new products and services	Target	Private finance attracted	N/A	EUR	0	4 860 000	Q2	2026	Attracted private financing from enterprises for introduction of new products and services.
50	2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators	Target	Number of loans granted	N/A	Supported projects	0	51	Q2	2024	Number of loans granted by Altum or with a grant element (payment of a loan or grant) under the programme for the digital transformation of economic operators. The performance indicator is deemed to have been fulfilled when a contract has been concluded between the economic operator and Altum for the execution of the project. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
51	2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators	Target	Number of loans granted	N/A	Supported projects	51	133	Q2	2026	Number of loans granted by Altum or with a grant element (payment of a loan or grant) under the programme for the digital transformation of economic operators. The performance indicator is deemed to have been fulfilled when a contract has been concluded between the economic operator and Altum for the execution of the project. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
52	2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators	Target	Private finance attracted		EUR	0	37 000 000	Q2	2026	Private financing from enterprises attracted within the framework of the investment to facilitate the digital transformation of economic operators. It is planned that private investment shall be attracted for each project of at least 25% of the eligible costs for which the loan shall be provided.
53	2.2.1.5.i. Fostering the digital transformation of media companies	Target	Number of platforms and digital solutions created	N/A	Number	0	3	Q2	2025	Three platforms or IT solutions in the media sector have been created, tested and accessible to users.
54	2.2.1.5.i. Fostering the digital transformation of media companies	Target	Number of projects supported	N/A	Supported projects	0	10	Q2	2026	The indicator is deemed to have been fulfilled when a contract between the operator and the CFCA for obtaining a grant for the execution of the project (for the development of technological solutions, improving digital skills or business models in the media sector) has been concluded.
56	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Target	Share of adults (25-64) involved in adult learning in the last four weeks prior to the survey (%)		%	6,6	8	Q4	2025	The target to be achieved within the framework of the plan is determined on the basis of the mid-term goal of Latvia’s medium-term policy planning document – Education Development Guidelines 2021-2027, which is planned to be approved by the Cabinet of Ministers by mid-2021 – to increase adult participation in learning from 6,6% (2020) to 12% (2027), which is to increase adult participation in learning to 8% by 2025. The achievement of the target is directly linked to planned reform measures for the development of adult learning.
57	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Milestone	Incentives and responsibilities for companies to educate and train their employees and creation of more opportunities and rights for employees to participate in learning	Legislative framework has entered into force	N/A	N/A	N/A	Q4	2023	Legislative acts have entered into force that shall: 1) set criteria and procedures for incentives and responsibilities of enterprises in education and training (covering both basic and advanced skills) of their employees, and introduce more favourable tax treatment of costs covered by employers for staff education (such as tuition fees); 2) create wider opportunities and rights for employees to participate in learning; and 3) establish a framework regarding future support measures to incentivise enterprises (in particular SMEs) to develop the skills of their employees, including the criteria for receiving such support and the procedure(s) for implementing the support measures.
58	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Milestone	Developing the concept of skills funds	Regulations of the Cabinet of Ministers entered into force	N/A	N/A	N/A	Q3	2024	Cabinet Regulations for the Implementation of Skills Funds have entered into force, defining the set-up of the skills funds and the rights and responsibilities of the involved parties.
59	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Target	Piloting skills funds	Creation of Skills Funds	Number	0	3	Q2	2026	Three pilot projects on Skills Funds. The aim of the pilot project is to assess the feasibility of introducing such an approach in the context of Latvia, including by testing aspects such as (a) the proportionality and dynamic over time of public and private co-investment, (b) the cooperation model between enterprises and workers’ organisations in sectors to develop a common vision of learning needs, including ‘future skills’ in the sector and related sectors, (c) an implementation plan for training in the sector, which shall include the training of new employees, retraining of those employed in other sectors and upskilling of existing workers.
60	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Milestone	Development of the Individual Learning Accounts (ILA) approach	Regulations of the Cabinet of Ministers entered into force	N/A	N/A	N/A	Q4	2023	Entry into force of Regulations specifying the approach for the development of the individual learning account including: (a) the establishment of eligibility criteria, (b) the establishment of criteria for the selection of educational providers.
61	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Target	Piloting the individual learning account approach		Number	0	1	Q3	2026	One pilot project has been completed to assess the establishment of the individual learning account solution most appropriate to the situation of Latvia. The pilot project is expected to involve 3500 persons who are in the process of setting up the individual learning accounts and administering these individual learning accounts and storing data on participation and output creators during the project.
62	2.3.1.1.i. Delivering high-level digital skills	Target	Number of professionals (business, academic and public sector) and students with advanced digital skills in quantum technologies, HPC and language technologies		Number	0	3 000	Q3	2026	Number of business specialists, academic and research professionals as well as public sector professionals, higher education students and other stakeholders who have received support for attending advanced digital skills training modules in quantum technologies, HPC and language technologies. It is planned that approximately 20 study modules shall be developed for inclusion in bachelor’s, master’s, doctoral programmes in all thematic groups of education, as well as adult education programmes for professionals employed in enterprises and other stakeholders with an appropriate knowledge base. The content of the study modules shall consist of the knowledge accumulated so far in the fields of HPC, quantum technologies and language technologies, as well as the results of research carried out under the RRF.
63	2.3.1.2.i. Development of key digital skills of enterprises	Target	Number of businesses to whom the acquisition of basic digital skills has been ensured	N/A	Number	0	1 080	Q2	2024	Number of businesses to whom the acquisition of basic digital skills has been ensured. The support instrument shall provide training to 1 080 enterprises including by using MOOC online courses, as well as by focusing on improving digital skills. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
64	2.3.1.2.i. Development of key digital skills of enterprises	Target	Number of businesses to whom the acquisition of basic digital skills has been ensured (in line with exclusion list described in the RRP for compliance with the DNSH Technical Guidance (2021/C58/01))	N/A	Number	1 080	2 521	Q2	2026	Number of businesses to whom the acquisition of basic digital skills has been ensured. The support instrument shall provide training to 2 521 enterprises including by using MOOC online courses, as well as by focusing on improving digital skills. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
65	2.3.1.3.i. Development of a self-managed learning approach for ICT specialists	Target	Number of ICT specialists trained in a non-formal learning approach	N/A	Number	0	1 000	Q3	2026	Professionals involved in self-managed ICT training that have completed at least one learning stage.
66	2.3.1.4.i. Development of the approach to individual learning accounts	Target	Adults supported to acquire digital skills through individual learning account resources	N/A	Number	0	1 000	Q4	2024	Adults supported to acquire digital skills through individual learning account resources
67	2.3.1.4.i. Development of the approach to individual learning accounts	Target	Adults supported to acquire digital skills through individual learning account resources	N/A	Number	1000	3 500	Q3	2026	Adults supported to acquire digital skills through individual learning account resources
68	2.3.2.r. Digital skills for the digital transformation of society and government	Target	Upskilling digital skills 16-74: citizens with at least basic digital skills.	N/a	%	43 (2020)	54	Q3	2026	Share of Latvian inhabitants with at least basic digital skills. The achievement of the target is directly linked to the planned reform measures, which include both strengthening the structure of digital skills levels, allowing them to be assessed on the basis of a common approach and the design of appropriate training measures to improve them, as well as to assess the results achieved by these training activities and their relevance to the objectives set.
69	2.3.2.r Digital skills for the digital transformation of society and government	Milestone	The normative framework strengthens and implements a common framework for assessment of basic digital skills, identification and planning of training needs and assessment	Regulatory framework entered into force	N/A	N/A	N/A	Q4	2022	Legislative acts establishing a common framework for the assessment of basic digital skills, the identification and planning of training needs and the assessment based on DigiComp 2.1 have entered into force.
70	2.3.2.r Digital skills for the digital transformation of society and government	Milestone	Amendments have entered into force to normative acts on national higher education standards, envisaging achievement of digital competence study results at the corresponding levels of the Latvian Qualification Framework.	Amended regulatory framework entered into force	N/A	N/A	N/A	Q4	2022	Amendments to national higher education standards (State Standard for Higher Academic Education and National Standard for Higher Vocational Education) have entered into force. They shall establish the results to be achieved in the acquisition of digital competences and ensure their application in the development, licensing and accreditation of higher education programmes, providing that study programmes that are drawn up, licensed and accredited after the entry into force of the regulatory framework include such achievable study results and appropriate courses or modules to achieve them.
71	2.3.2.1.i Digital skills for citizens, including young people	Target	Number of citizens with improved digital self-service skills who have participated in technological innovation activities	N/a	Number	0	15 000	Q4	2024	Number of citizens with improved digital self-service skills who have participated in technological innovation activities. The digital self-service skills learning approach (e-learning course) has been developed and implemented, including the development and implementation of the Joint Technology Creativity Guidelines for the development of youth technology and innovation capacity.
72	2.3.2.1.i Digital skills for citizens, including young people	Target	Number of inhabitants with improved digital self-service skills who have participated in technological innovation activities	N/a	Number	15 000	50 000	Q3	2026	As a result of the investment, the digital self-service skills learning approach (e-learning course) has been developed and implemented, including the development and implementation of the Joint Technology Creativity Guidelines for the development of youth technology and innovation capacity. At least 40 thousand inhabitants have taken part in the training (out of those self-training has reached at least 5000); and at least 10 thousand persons have participated in technological innovation activities.
73	2.3.2.1.i Digital skills for citizens, including young people	Target	Number of municipalities with digital skills development programmes for young people	N/a	Number	0	42	Q3	2026	As a result of investments, 42 municipalities had defined and fully implemented programmes of activities to ensure the acquisition and use of digital skills in youth work, the creation of a digital environment for youth work and foster the participation of young people in local government processes
74	2.3.2.2.i Development of state and local government digital transformation skills and capabilities	Milestone	Digital skills and competence framework developed		N/A	N/A		Q2	2023	Public administration digital skills plan and framework, including curricula, shall be made available and trainings organised on the public administration’s platform.
75	2.3.2.2.i Development of state and local government digital transformation skills and capabilities	Target	Public administration (state and local government) employees with advanced digital skills, including e-learning	N/a	Number	0	25 160	Q4	2024	Number of people who have acquired advanced digital skills as a result of the following investments: ·the frameworks of general and specialised digital competences, competencies development roadmaps and curriculum content have been created; ·digital competencies and skills training section with competence frameworks, curriculum and training programmes have been organised and become operational on the single digital distance learning environment/platform of public administration; ·usability of self-managed learning has been ensured.
76	2.3.2.2.i. Development of state and local government digital transformation skills and capabilities	Target	Public administration (state and local government) employees who have developed digital transformation skills, including e-learning;	N/a	Number	25 160	62 900	Q3	2026	Number of people who have acquired advanced digital skills, as the result of the following investments: ·the frameworks of general and specialised digital competences, competencies development roadmaps and curriculum content have been created; ·digital competencies and skills training section with competence frameworks, curriculum and training programmes have been organised and become operational on the single digital distance learning environment/platform of public administration; ·usability of self-managed learning has been ensured
77	2.3.2.3.i Closing the digital divide for socially vulnerable pupils and educational institutions	Milestone	Entry into force of a regulatory framework laying down procedures for the organisation and implementation of remote learning	Entry into force of a regulatory framework laying down procedures for the organisation and implementation of remote learning	N/A	N/A	N/A	Q4	2021	Entry into force of regulations of the Cabinet of Ministers laying down criteria and conditions for the organisation and conduct of remote learning to ensure that remote learning is organised and implemented in all Latvian educational institutions and levels of education (except at pre-school level). The educational establishment shall include in its internal rules a framework for the organisation and implementation of remote learning, including: 1. the procedure by which the educational establishment shall identify whether technical means are available to learners for the provision of remote learning, as well as the procedures for providing these technical means if they are not available to learners; 2. the procedure for recording students’ participation in remote learning and the performance of the tasks assigned; 3. in cases where the participation of the learner in remote learning is not possible or is hampered for technical reasons; 4. the procedures for ensuring compliance with safety requirements during remote learning and the procedures for communication with the legal representatives of the learner in the event of safety or health risks; 5. The procedure by which learners make use of educational institution resources and infrastructure (premises, libraries, etc.) as part of remote learning.
79	2.3.2.3.i Closing the digital divide for socially vulnerable pupils and educational institutions	Target	Number of ICT equipment units for the target group (learners)	N/a	Number	0	26 620	Q4	2023	Number of ICT equipment units available for learning from the “computer library”, which improves learning efficiency and reduces inequalities. The “computer library” of schools provides an opportunity for pupils and teachers who need computer to learn and teach it to “borrow” for the duration of their studies, while working on a sustainable system that shall ensure access to technology for every pupil and teachers across Latvia.
80	2.4.1.r Broadband infrastructure development	Milestone	Adoption of technical requirement for connected and automated driving	Adoption of common technical requirements	N/A	N/A	N/A	Q4	2021	1. The SJSC “Latvian State Radio and Television Centre” identifies the common technical requirements for electronic communications operators to allow for connected and automated driving. This shall take into account the needs of operators in cooperation with representatives of Estonia, Lithuania and Poland to facilitate the development of a connected and automated driving corridor along the Via Baltica track. Following that common technical requirements are adopted by the procurement committee.
81	2.4.1.r Broadband infrastructure development	Milestone	Adoption of a common model for the development of the last mile	Adoption of a common model for the development of the last mile	N/A	N/A	N/A	Q4	2021	1. On the basis of the studies carried out, the Ministry of Transport shall draw up a development plan for the electronic communications sector, which shall include a draft model. 2. The outcome of the public consultation shall lead to a final decision on the model, which shall be adopted and implemented.
83	2.4.1.2.i Broadband or very high capacity network “last mile” infrastructure development	Target	Number of households, businesses, schools, hospitals and other public buildings which have access to the broadband connections to a very high capacity network	N/a	Number	0	6 200	Q3	2026	The indicator is defined as the number of households, businesses, schools, hospitals and other public buildings which have access to the broadband connections to a very high capacity network as certified by a contract with an electronic communications merchant for subscription to a service speed of at least 100 Mbps (very high capacity broadband network (VHCN)) and have access to such a service, i.e. the possibility to conclude a contract with an electronic communications merchant and start receiving the service indicatively within one month of the application.

C. COMPONENT 3: REDUCTION OF INEQUALITY

The general objective of this component of the Latvian recovery and resilience plan is to address the challenges of territorial and social inequality in Latvia, exacerbated by the COVID-19 pandemic. The component aims to reduce inequality by creating more jobs in the regions, improving regional connectivity and access to quality services, providing more affordable housing, improving the school infrastructure, helping to up-skill and re-skill workers and unemployed, strengthening the social safety net, improving accessibility to buildings for persons with disabilities, and new long-term care facilities for the elderly. All the measures in the component support either of the two headline reforms – the ongoing administrative territorial reform and the minimum income reform.

The component supports addressing the Country Specific Recommendations on social exclusion, notably to improve the adequacy of minimum income benefits, minimum old-age pensions and income support for people with disabilities and on the quality and efficiency of education and training, focusing on low-skilled workers and jobseekers (Country Specific Recommendation 2, 2019). The component also supports addressing the recommendation to focus investment-related economic policy to the provision of affordable housing, considering regional disparities (Country Specific Recommendation 3, 2019). Finally, the component supports addressing the recommendation to strengthen the social safety net and mitigate the employment impact of the crisis, including through improved active labour market measures and skills (Country Specific Recommendation 2, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

C.1. Description of the reforms and investments for non-repayable financial support

Reform: 3.1.1.r. Administrative territorial reform

The general objective of this reform is to improve the quality of services for the inhabitants of Latvia and improve local business environment by reducing the number of administrative units and increasing the efficiency and accessibility of service delivery. The actions described below (renovation and reconstruction of state regional and local roads, capacity building of local municipalities and planning regions ensuring more efficient public services, development of infrastructure for industrial parks, affordable housing, development of school infrastructure and school busses) are linked with and support this reform measure.

The measure includes the entry into force of a new Municipality Law reviewing the functions and tasks of local governments. The new law shall ensure better governance at the municipal level, a clearer separation and division of competences between the decision-making and the executive powers, and increasing the participation of citizens in the decision-making of local communities.

While the overall administrative territorial reform may continue beyond the timeframe of the RRF, the implementation of the specific reform shall be completed by 31 December 2023.

Investment: 3.1.1.1.i. Improvement of the network of regional and local roads

The general objective of this investment is to renovate or rebuild state regional and local roads to improve road safety ensure the connectivity of the new municipalities and enhance the access of citizens to jobs and services.

The investment measure consists of renovation or rebuilding of 210 km of state regional and local roads in accordance with a priority list of the Ministry of Environmental Protection and Regional Development defined in collaboration with planning regions, Latvian State Roads and the Ministry of Transport. As flanking actions under investment 1.1.1.1.i. Competitive rail passenger transport within the common public transport system of the city of Riga, a battery electric train charging infrastructure shall be established in the metropolitan area of Riga and 17 low-emission vehicles (electric buses) shall be procured to complement Latvia’s public transport fleet. The main investment measure shall be implemented by 31 December 2024.

Investment: 3.1.1.2.i. Strengthening the capacity of municipalities to improve service efficiency and quality

The general objective of this investment is to improve the quality and efficiency of municipal services following the reorganisation of local administrations. The increased capacity and professional skills of municipalities aims at allowing them to better serve citizens.

This investment measure consists of the adoption of a government regulation defining the scope and parameters of the capacity building actions in the municipalities, municipal public service assessments, provision of methodological support and capacity building of municipal staff, and piloting ways of planning and providing municipal services. Furthermore, the measure shall identify the shortcomings of local government services and actions for their improvement. Finally, the measure shall increase the capacity of 1 300 staff of municipalities and planning regions through dedicated trainings, study visits, exchange of experience, professional assessment and other capacity building measures.

The implementation of the investment shall be completed by 31 August 2026.

Investment: 3.1.1.3.i. Investments in public infrastructure to develop industrial parks in the regions

The general objective of this investment is to support the infrastructure of industrial zones and attract investors and firms to Latvia’s regions outside Riga helping to create high added-value and export-oriented jobs and to reduce the development divide between Riga region and the rest of the country.

The measure consists of the adoption of a support programme for the development of industrial parks and territories in the regions; tendering and awarding contracts for the development of industrial parks to specific beneficiaries who have developed an industrial territory or park development strategy or business plan; signing at least four letters of intent or contracts with internationally recognised industrial park operators and/or potential tenants providing for the attraction/execution of additional private sector investments of at least EUR 85 700 000. Finally, the measure includes the completion of the construction of at least four industrial parks of national importance in the regions, including the establishment of necessary utility connections (including heating, water and sewerage, electricity), renewal or installation of access roads near industrial areas, as well as the development of buildings intended for commercial purposes and their related infrastructure. As a result of the measure, at least 328 new jobs with average salaries exceeding the average salaries in the respective economic sector shall be created.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 21 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 22 ; (iii) activities related to waste landfills, incinerators 23 and mechanical biological treatment plants 24 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 31 August 2026.

Investment: 3.1.1.4.i. Establishing a financing fund for the construction of low-rent housing

The general objective of this measure is to stimulate housing supply provide affordable housing, contribute to regional labour mobility, and help attract and retain skilled professionals in the regions.

The measure consists of the entry into force of a new legal framework for rents to ensure a fair balance between the interests of the tenant and the landlord and to ease the resolution of rental disputes; adoption of a housing affordability strategy; entry into force of a low-rent housing regulation defining the size, scope and type of support and criteria for beneficiaries; the approval of projects for at least 467 apartments, and construction of at least 300 apartments within the timeframe of the RRF. The average size of an apartment shall be at least 52 m² and the rent ceiling indicatively at EUR 4.40/m². The approved projects shall meet high quality requirements: the buildings shall be nearly zero-energy and appropriate quality tests (acoustic measurements, building air permeability test) shall be carried out at the time of entry into service.

The implementation of the investment shall be completed by 31 August 2026.

Investment: 3.1.1.5.i. Development of infrastructure and equipment of educational institutions

The general objective of this investment measure is to improve the quality of regional schools by coupling investment with the optimization of school network.

The measure consists of the entry into force of a legal framework establishing the quantitative and qualitative criteria for general secondary education institutions, the adoption of at least 21 decisions by local governments on the reorganisation of schools, and the improvement of school infrastructures. The investments shall improve the school facilities, such as hygienic requirements in classrooms, engineering networks (including ventilation systems), sufficient and energy efficient lighting, and other ergonomic and modern education environment solutions. Investments may also be planned for the purchase of information technology and science, technology, engineering and mathematics equipment, for the implementation of new improved curricula and for the implementation of remote and online learning.

The implementation of the investment shall be completed by 31 August 2026.

Investment: 3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and related services

The general objective of this investment measure is to improve the performance of the municipal functions and related services with a focus on the mobility of learners in the optimised school network. A secondary objective is to contribute to the greening of public transport in Latvia by investing in zero-emission vehicles.

The measure consists of the entry into force of a government regulation setting out the conditions for municipalities to obtain the support for procuring zero-emission vehicles, procurement process and delivery of 15 zero-emission vehicles (electric buses) for the transport of learners in the regions.

The implementation of the investment shall be completed by 31 December 2025.

Reform: 3.1.2.r. Access to social and employment services in support of the minimum income reform

The general objective of this reform is to reduce inequality, improve the social safety net, foster social integration and inclusion in Latvia.

The measure consists of two main steps. The first step is the adoption of a plan for improvement of the minimum income support system for 2022-2024 to strengthen the methodology for calculating the minimum income; the adoption of Social Protection and Labour Market Guidelines 2021-2027 to promote the social inclusion of the population, to reduce income inequality and poverty, develop accessible and tailored social services and promote a high level of employment in a quality work environment; the adoption of a Social Services Development Plan 2021-2023 aimed at improving the provision of community-based services; and the adoption of a Plan for the Promotion of Equal Opportunities for Persons with Disabilities 2021-2023, which aims to develop an integrated support system that meets the needs of persons with disabilities. The second step is the entry into force of legislative amendments by the national Parliament to improve the minimum income support system, including setting a floor of the minimum income of no less than 20% of the median income and establishing a procedure for annual positive indexation (as of 2023).

The implementation of the reform shall be completed by 31 December 2021.

Investment: 3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities

The general objective of this investment measure is to improve access to facilities, jobs and services for people with disabilities thereby contributing to their social inclusion.

The measure consists of selecting 63 public and municipal buildings and retrofitting them to ensure access to the facilities for persons with functional impairments and persons with disabilities. This may include for example vision, hearing, mobility and mental impairment, including improvement of visual information, adaptation and provision of evacuation systems for persons with disabilities, and the installation of aids, such as ramps, pans, lifts, easy-opening or automatic doors. Furthermore, the measure shall include the selection, retrofitting and improving of the physical accessibility of housing for 259 persons with disabilities (persons with severe or very severe disabilities and children with disabilities) improving their access to employment and services, thereby promoting their human dignity and quality of life.

The implementation of the investment shall be completed by 30 June 2026.

Investment: 3.1.2.2.i. Development of a forecast tool

The general objective of this investment measure is to upgrade the macroeconomic modelling capacity to assess the long-term sustainability of the social security system.

The measure consists of tendering and developing econometric models and a methodology for the long-term forecasting of social support, including pensions, developing technical specification for the information system and monitoring the development of the system. The final deliverables shall include an evaluation report on the current situation; a mathematical model for pension forecasting; the evaluation of the current forecasting tool and its potential; technical specifications for the development of an information system; monitoring of the system development throughout the measure.

The implementation of the investment shall be completed by 31 March 2026.

Investment: 3.1.2.3.i. Resilience and continuity of the long-term social care service

The general objective of this investment measure is to enable the transition from institutional long-term care provision to more community-based care model.

The measure consists of developing a standard construction design for new long-term care facilities, conclusion of agreements between the Ministry of Welfare and 17 municipalities for the establishment of new places for the provision of long-term care services close to the family environment, and construction of new long-term care facilities for 852 persons of retirement age in 54 buildings. The construction of these buildings shall ensure a maximum of 16 persons per building and fitting each building with appliances, equipment and furniture. The new long-term care model shall ensure the transition from institutional to family-type care for people of retirement age.

The implementation of the investment shall be completed by 30 June 2026.

Investment: 3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional impairments

The general objective of this investment measure is to improve the social inclusion and rehabilitation of persons with functional disabilities through the development and application of a uniform service standard.

The measure consists of the development, piloting and adoption of a vocational rehabilitation service standard that promotes the maintenance, renewal and acquisition of new education or skills for re-employment for persons with physical disabilities. The measure shall also help to improve the infrastructure and equipment in buildings where services shall be provided.

The implementation of the investment shall be completed by 30 June 2026.

Investment: 3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment

The general objective of this investment measure is to improve the upskilling and reskilling of low-skilled workers and unemployed to improve their job opportunities in the labour market.

The measure consists of developing a re-training and up-skilling offer with a focus on digital skills for clients (unemployed, jobseekers, persons at risk of unemployment) of the State Employment Agency (SEA), implementing active labour market policy measures, development of a digital tool for the assessment of skills, and upskilling at least 20 450 persons. Under the measure, the Agency shall focus on a more in-depth individual approach based on the results of a reformed and adjusted profiling system. The investment complements the Active Labour Market Policy (ALMP) measures planned under cohesion funds for period 2021-27, which is expected to start after the end of the RRP investment.

The implementation of the investment shall be completed by 31 August 2026.

C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
84	3.1.1.r. Administrative territorial reform	Milestone	Entry into force of a new “Municipality Law”	Entry into force of the new “Municipality Law”	N/A	N/A	N/A	Q4	2023	Entry into force of the “Municipality Law” which shall review the functions and tasks of local governments, to align them with the outcome of the administrative territorial reform (replacing the Law on Local Government of 19.05.1994). It shall ensure improved governance after the administrative territorial reform of the municipalities, promoting democratisation and a clearer separation of the decision-making power from the executive, establishing a clear division of competences and functions, reducing the concentration of powers and increasing the participation of the local community on a regular basis.
85	3.1.1.1.i. Improvement of the network of regional and local roads	Target	Renovated or rebuilt regional and local roads for the safe accessibility of the county administrative centres and their services and jobs and for the full functioning of the new municipalities.	N/A	Km	0	70	Q4	2022	The state regional and local roads have been renovated or rebuilt for the accessibility to theadministrative centres of the counties and their services and jobs and for the full functioning of the new municipalities. Road construction works shall involve investments that improve road safety.
86	3.1.1.1.i. Improvement of the network of regional and local roads	Target	Renovated or rebuilt regional and local roads for the safe accessibility of the county administrative centres and their services and jobs and for the full functioning of the new municipalities	N /A	Km	70	210	Q4	2024	The state regional and local roads have been renovated or rebuilt for the accessibility to the administrative centres of the counties and their servicesand jobs and for the full functioning of the new municipalities. Road construction works shall involve investments that improve road safety.
89	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Milestone	The legal basis for implementing support for capacity building of local governments has been adopted	Regulations of the Cabinet of Ministers have been adopted	N/A	N/A	N/A	Q4	2022	Cabinet Regulations have been adopted for the implementation of support for capacity building of local governments, including: (a) defining the scope and parameters of the capacity building actions in the municipalities; (b) municipal public service assessments; (c) provision of methodological support and capacity-building; (d) piloting ways of planning and providing municipal public services.
90	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Milestone	Completion of the assessment of local government public services, identifying shortcomings and measures to improve them	Completion of assessment	N/A	N/A	N/A	Q4	2024	Completion of the assessment of the efficiency of the provision of local government public services in accordance with the provisions of the Cabinet of Ministers Regulations on Implementation of Local Government Capacity Building Support.
91	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Target	Number of local government employees trained	N/A	Number	0	750	Q4	2024	Number of local government employees trained, improving their knowledge and qualifications, methodological support provided to work in municipalities following the administrative territorial reform. The training and other capacity building measures have been carried out on the basis of an assessment of services and local government capacity.
92	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Target	Number of local government employees trained	N/A	Number	750	1300	Q3	2026	Number of local government employees trained, improving their knowledge and qualifications, methodological support provided to work in municipalities following the administrative territorial reform. Training and other capacity building measures have been carried out on the basis of an assessment of services and local government capacity.
93	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Milestone	Adoption of a support programme for the development of industrial parks and territories in the regions	Cabinet Regulations and coordinated aid programme adopted	N/A	N/A	N/A	Q4	2022	Regulations of the Cabinet of Ministers laying down the conditions and criteria for the provision of aid to industrial areas have been drawn up and adopted. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
94	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Milestone	Award of contracts for the development of industrial parks in the regions	Award of contracts for the projects’ implementation	N/A	N/A	N/A	Q4	2023	Award of contracts for the development of industrial parks in the regions to private sector beneficiaries who have developed an industrial park development strategy or business plan. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
95	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Target	Letters of intent/contracts concluded	N/A	Number	0	4	Q4	2025	At least four letters of intent/contracts signed with internationally recognised industrial park operators and/or potential investors by attracting/carrying out non-financial investments of at least EUR 85 741 349. The selection criteria shall ensure that the selected projects comply with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.
96	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Target	Construction completed of industrial parks/territories where public infrastructure is developed in the regions	N/A	Number	0	4	Q4	2025	Construction completed of at least four national industrial parks/territories, including establishment of necessary industrial connections and increase of their related capacity (including heating, water and sewerage, electricity), renewal or installation of access roads near industrial areas, as well as development of buildings for commercial purposes and their related infrastructure.
97	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Target	Creation of new jobs in the industrial parks with average salaries above the average salary in the respective economic sector	N/A	Number	0	328	Q3	2026	Submission of a list of the jobs created by the park operators or private investors and salaries, certifying the creation of new jobs with salaries above average salaries in the respective economic sector.
98	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Milestone	Entry into force of the law balancing the rights of tenants and landlords	Entry into force of the Rental Law of housing premises	N/A	N/A	N/A	Q2	2021	Entry into force of a new legal framework for rents to ensure a fair balance between the interests of the tenant and the landlord and to speed up the resolution of disputes over the term of the rent and the settlement of rents, which is particularly important in order to promote the construction of renting housing and consequently to facilitate affordability of housing.
99	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Milestone	Adoption of a housing affordability strategy	The government has adopted housing, affordability strategy	N/A	N/A	N/A	Q2	2022	The housing affordability strategy shall include directions of action, policy indicators and set of tasks for promoting access to housing, providing solutions for providing housing affordability support to households of different types and income levels, including the lowest-income households, and that support mechanisms and regulations promote both the repair of the existing housing stock and the development of a new housing stock.
100	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Milestone	Government regulation on the construction of low-rent dwellings	Entry into force of government regulation on construction of low-rent dwellings	N/A	N/A	N/A	Q3	2022	Regulation of the Cabinet of Ministers on the construction of low-rent dwellings has entered into force in order to define size, scope and type of support and criteria for beneficiaries.
101	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Target	Number of apartments within approved projects	N/A	Number	0	300	Q4	2024	The funding shall have been approved by national development institution Altum for the projects of at least 300 apartments. As part of the approved projects, housing shall be provided for a low rent (indicatively, EUR 4.40/m²). The approved projects shall meet high quality requirements: (1) the building shall be a nearly zero-energy building; (2) Appropriate quality tests (acoustic measurements, building air permeability test) shall be carried out at the time of entry into service.
102	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Target	Number of apartments within approved projects	N/A	Number	300	467	Q3	2026	The funding shall have been approved by national development institution Altum for the projects of at least 467 apartments. As part of the approved projects, housing shall be provided for a low rent (indicatively, EUR 4.40/m²). The approved projects shall meet high quality requirements: (1) the building shall be a nearly zero-energy building; (2) appropriate quality tests (acoustic measurements, building air permeability test) shall be carried out at the time of entry into service.
103	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Target	Number of apartments built	N/A	Number	0	300	Q3	2026	Projects finished with 300 apartments built and delivered in line with the following specifications: (1) the building shall be a nearly zero-energy building; (2) appropriate quality tests (acoustic measurements, building air permeability test) shall be carried out at the time of entry into service.
104	3.1.1.5.i. Development and equipping of educational institutions’ infrastructure	Milestone	Definition of qualitative and quantitative criteria adopted	The legal framework has entered into force	N/A	N/A	N/A	Q4	2021	Entry into force of a legal framework adopted by the government promoting the provision of high-quality education by promoting a comprehensive offer of educational programmes at regional level, as well as by creating a network of general secondary education institutions in line with the demographic situation. The legal framework shall establish minimum quantitative and qualitative criteria (such as minimum number of learners, availability of infrastructure, etc.) for general secondary education institutions.
105	3.1.1.5.i. Development and equipping of educational institutions’ infrastructure	Milestone	Adoption of decisions by local councils on the reorganisation of at least 20 general secondary education institutions	Adoption of decisions by local councils	N/A	N/A	N/A	Q2	2022	Reorganisation decisions (mergers, change of education level) of at least 20 general secondary education institutions adopted by local governments.
106	3.1.1.5.i. Development and equipping of educational institutions’ infrastructure	Target	Developing and equipping educational institutions’ infrastructure	n/a	Number	0	21	Q3	2026	Improvement of infrastructure of 21 general education institutions established by local governments according to specifications: investments may be envisaged for the improvement of the education institution physical environment - classrooms that met hygienic requirements, reconstruction of engineering networks (including ventilation systems), ensure sufficient and energy efficient lighting, and other ergonomic and modern education environment solutions. These school infrastructure investments under the RRF may also be used for the purchase of information technology and science, technology, engineering and mathematics equipment, for implementation of new improved curricula and for implementation of remote and online learning.
107	3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and related services	Milestone	A support programme has been adopted for local governments for the purchase of electric buses for the performance of the municipal functions and related services	Entry into force of government regulation	N/A	N/A	N/A	Q4	2022	Entry into force of Cabinet Regulations laying down implementing conditions for providing support to local governments for the purchase of electric buses for the performance of the municipal functions and related services.
108	3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and related services	Target	Amount of funding under contracts concluded for the purchase of electric buses for the performance of the municipal functions and related services	n/a	Amount (in EUR)	0	8 300 000	Q4	2024	Award of contracts for the purchase of electric buses for the performance of municipal functions and related services for a total value of at least EUR 8 300 000.
109	3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and related services	Target	Number of electric school bues purchased	N/A	Number	0	15	Q4	2025	Delivery of 15 electric school buses to municipalities as beneficiaries for municipal transport of learners.
110	3.1.2.r. Access to social and employment services in support of minimum income reform	Milestone	Adoption of the strategic framework for further development of the minimum income support system	The strategic framework for further development of the minimum income support system has been approved by the Cabinet of Ministers	N/A	N/A	N/A	Q4	2021	A strategic framework for further development of the minimum income support system has been developed and approved by the Cabinet of Ministers, which shall include at least: — Plan for improvement of the minimum income support system for 2022-2024, with a view to strengthening the methodology for calculating the minimum income; — Social Protection and Labour Market Guidelines 2021-2027 to promote the social inclusion of the population, reduce income inequalities and poverty, develop accessible and tailored social services and promote a high level of employment in a quality work environment; — Social Services Development Plan 2021-2023, aimed at improving the provision of community-based services; — The Plan for the Promotion of Equal Opportunities for Persons with Disabilities 2021-2023, which aims to develop an integrated support system that meets the needs of persons with disabilities
111	3.1.2.r. Access to social and employment services in support of minimum income reform	Milestone	Entry into force of legislative amendments to improve the minimum income support system	Entry into force of legislative amendments to improve the minimum income support system	N/A	N/A	N/A	Q1	2023	Entry into force of legislative amendments to improve the minimum income support system, which shall include: — a floor of the minimum income threshold of not less than 20% of the median income; — the procedure for revising the minimum income thresholds, which is to take place on an annual basis (from 2023), on the basis of changes in the median income and ensuring that the minimum income thresholds are not changed in the event of a decrease in the median income.
112	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Selection of state and local government buildings where environmental adaptations shall be carried out	Adoption of a list of 63 selected buildings of public and local authorities in which investments to adapt the environment shall be made	N/A	N/A	N/A	Q1	2022	For the implementation of environmental accessibility measures, 63 state and local government buildings providing welfare sector public services or municipal social services shall be selected (these buildings shall be included in the regulations of the Cabinet of Ministers). The investment shall include measures to implement a minimum accessibility standard: ensure access to the environment and information for persons with functional impairments and persons with disabilities.
113	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Signature of contracts for ensuring access to public facilities in the buildings of public and local authorities	Signature of contracts for works on access to public facilities in the pre-selected 63 buildings of public and local authorities.	N/A	N/A	N/A	Q2	2024	Relevant public and local authorities shall sign contracts to ensure access to the facilities in 63 state and local government buildings providing welfare sector public services or municipal social services. Contracts shall be awarded for the provision of a minimum accessibility standard: accessibility elements necessary for each building, including measures to ensure access to the facilities and information for personswith functional impairments and persons with disabilities (this may include creating or installing various customisations such as improvements to visual information, adaptation and provision of evacuation systems for persons with disabilities through the installation of ramps, pans, lifts and easy-opening or automatic doors).
114	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Target	Completion of construction to ensure access to public facilities in state and local government buildings	N/A	Buildings	0	63	Q2	2026	Construction work completed on 63 state and local government buildings providing welfare sector public services or municipal social services to groups at risk of social exclusion, including persons with disabilities, and handover act signed. Measures shall include the implementation of a minimum accessibility standard: access to public the facilities and information for persons with functional impairments and persons with disabilities (this may include creating or installing various customisations such as improvements to visual information, adaptation and provision of evacuation systems for persons with disabilities, ramps, pedals, hoists, easy-opening or automatic doors).
115	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Selection of specific target group for improving physical access to housing	Adoption of a list of selected 259 persons with disabilities who need to adapt their individual housing	N/A	N/A	N/A	Q1	2024	Adoption of a list of 259 persons with severe or very severe disabilities and children with disabilities who shall benefit from support from relevant public authorities to adapt the individual housing (one selected person per dwelling).
116	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Signature of contracts to adapt the housing of persons with disabilities	Signaure of contracts	N/A	N/A	N/A	Q1	2025	The signature of contracts to adapt the housing of 259 persons with severe or very severe disabilities and children with disabilities, ensuring that people with disabilities have access to employment and services, thereby promoting human rights and quality of life. Contracts have been concluded for the provision of such environmental accessibility elements as are necessary for the persons of the target group, providing for environmental adaptation measures (for example, establishment of ramps and lifts, adaptation of residential and common areas) in housing for 259 persons (one person per individual dwelling).
117	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Target	Accessibility of the housing environment for persons with disabilities ensured	N/A	Persons	0	259	Q2	2026	The construction work completed on 259 dwellings and handover act signed. The measure shall include the adaptation of the housing of persons with severe or very severe disabilities and children with disabilities: access to employment and services for people with disabilities, thereby promoting human rights and quality of life, including environmental adaptation measures (for example, establishment of ramps and lifts, adaptation of residential and common areas) for 259 persons (one person per individual dwelling).
118	3.1.2.2.i. Development of a forecast tool	Milestone	Conclusion of contract for the development of algorithms for the forecasting model, the development of technical specifications for information system and the supervision of system development	Development of technical specifications and conclusion of a contract for the consultancy service involving Latvian and foreign econometric and mathematical modelling experts	N/A	N/A	N/A	Q2	2022	Award of a contract following a competition to: - develop an econometric model and a methodology for the long-term forecasting of social support, including pensions, - draw up technical specifications for the development of an information system, - monitor the development of the system. The contract concluded shall include a timetable for the following deliverables: — an evaluation report on the current situation; — a mathematical model for pension forecasting; — evaluation of the current forecasting tool and its potential; — technical specifications for the development of an information system; — monitoring of the information system development throughout the project.
119	3.1.2.2.i. Development of a forecast tool	Milestone	Completion of technical specifications for social security forecasting tool information system	Technical specifications approved by the Ministry of Welfare and ready for submission to the information system developer	N/A	N/A	N/A	Q3	2024	Completion of technical specifications for a new social security forecasting tool information system. The technical specifications shall include: — an evaluation report on the current forecasting tool and its options and recommendations for the development of the new forecasting tool; — technical specifications for the development of system (the technical specification shall also include a requirement for the application of the Agile methodology during the system development phases).
120	3.1.2.2.i. Development of a forecast tool	Milestone	Development of a forecasting tool	Forecasting tool developed for the long-term projections of the social security system	N/A	N/A	N/A	Q1	2026	The handover act between the Ministry of Welfare and software developer is signed for the development of a forecasting tool for the long-term forecasts of the social security system that: — provides for the possibility to use and reflect the demographic aspect more effectively in the forecasts, leading to a faster and more accurate forecasting result; — strengthens administrative capacity in the field of social security; — provides the possibility to enter a more detailed array of assumptions compared to the model used in the past; — enables modelling with elsewhere existing results (e.g.: Eurostat), as well as demographic and labour market indicators; — two handbooks have been developed for the administrator of the tool and for users.
121	3.1.2.3.i. Resilience and continuity of the long-term social care service	Milestone	Development of standard construction design	Requirements of the design task and standard construction design developed for the provision of long-term care services close to family environment	N/A	N/A	N/A	Q3	2022	A standard construction design for the construction of buildings necessary for the provision of long-term care services close to the family environment has been adopted by the Ministry of Welfare. The construction design shall be intended for the construction of highly energy-efficient buildings (nearly zero-energy buildings). Municipalities shall be in possession of a standard construction project already ready, thus reducing project costs. Simpler project implementation for municipalities shall reduce risks for delays in project implementation.
122	3.1.2.3.i. Resilience and continuity of the long-term social care service	Target	Conclusion of agreements with local governments on the implementation of projects	N/A	Number of agreements	0	17	Q2	2023	Agreements have been concluded between the Central Finance and Contracting Agency and 17 municipalities on the establishment of new places for the provision of long-term care services close to the family environment.
123	3.1.2.3.i. Resilience and continuity of the long-term social care service	Target	Provision of new places for long-term care services close to family. settings for 852 persons of retirement age	n/a	Number of places	0	852	Q2	2026	Creation of new places for the provision of long-term care services close to the family environment for 852 persons of retirement age (54 buildings built with a maximum of 16 persons per building). The construction of these buildings shall ensure that: — each building is provided with at least a predefined minimum equipment, such as appliances and furniture; — the transition from institutional to family-friendly care for people of retirement age is underway.
124	3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional disabilities	Milestone	Description of the vocational rehabilitation service adopted	Adoption of a description of the vocational rehabilitation services	N/A	N/A	N/A	Q1	2023	The Advisory Council of the State Agency for Social Integration has adopted and the Agency for Social Integration has approved the description of a vocational rehabilitation service that promotes the maintenance, renewal and acquisition of new education or skills for re-employment as soon as possible, promoting the safety of customers.
125	3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional disabilities	Milestone	Adaptation of building infrastructure, including promotion of environmental accessibility and energy efficiency, and improvement of the technical and material equipment	Adaptation of 2 buildings where the infrastructure shall be improved, including environmental accessibility and energy efficiency, and the improvement of the technical and material equipment	N/A	N/A	N/A	Q1	2026	The infrastructure and logistical equipment have been improved in buildings where services shall be provided to promote the resilience of people with functional impairments, including: — measures to adapt the environment of the building Slokas street 61, Jūrmala; — increased energy efficiency in the building Dubultu prospect 71, Jūrmala.
126	3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional disabilities	Milestone	Adoption of a new standard for social and vocational rehabilitation services for the promotion of the resilience of people with functional impairments have been established and approved	New rehabilitation service standard is approved	N/A	N/A	N/A	Q2	2026	The Advisory Council of State Agency for Social Integration has adopted and State Agency for Social Integration has approved a new service standard for social and vocational rehabilitation services for the promotion of the resilience of people with functional impairments (competence development programme and vocational rehabilitation service), including through the adoption of services in pilot projects and the use of the material base of the project.
127	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Milestone	A retraining and up-skilling offer, with a focus on digital skills, has been established to clients (unemployed, jobseekers, persons at risk of unemployment) of the State Employment Agency for the job-rich recovery of the economy by implementing active labour market policy measures	Adoption of a new retraining and upskilling offer (including digital skills) for the State Employment Agency clients	N/A	N/A	N/A	Q2	2023	An offer of retraining and up-skilling programmes to clients of the Latvian Employment Service (unemployed, jobseekers, persons at risk of unemployment) has been adopted at the meeting of the Latvian Training Commission in accordance with the measures of active labour market policy for the recovery of the job-friendly economy.
128	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Milestone	Development of a digital tool for skills assessment	Digital tool developed and implemented	N/A	N/A	N/A	Q4	2023	State Employment Agency has developed and implemented a digital assessment tool for an improved skills profiling system, which shall ensure the assessment of the skills and competences of the agency clients, to complete an appropriate offer of retraining and acquisition of skills, depending on the individual’s level of knowledge and skills. The client profiling method currently used by the agency shall be supplemented by a digital skills assessment tool (tests) and the results of the tests shall be used in the client career advice process and in the preparation of the individual training offer.
129	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Target	Unemployed, jobseekers, people at risk of unemployment with improved skills	N/A	Number	0	10 000	Q1	2025	10 000 unemployed, jobseekers, people at risk of unemployment with improved skills as certified by the State Employment Agency client accounting system
130	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Target	Unemployed, jobseekers, people at risk of unemployment with improved skills	N/A	Number	10 000	20 450	Q3	2026	20 450 unemployed, jobseekers, people at risk of unemployment with improved skills as certified by State Employment Agency client accounting system

D. COMPONENT 4: HEALTH

This component of the Latvian recovery and resilience plan contributes to addressing the challenges related to the resilience, accessibility, quality and cost-effectiveness of the health system and its human resources. Timely and equal access to healthcare is limited, especially for vulnerable groups. Latvia reports high unmet needs for healthcare and significant out-of-pocket payments. Unhealthy lifestyles are another important reason for the poor health outcomes. The shortage of health workers hinders the provision of public health care and threatens the success of health care reforms. These challenges have been exacerbated in particular by the crisis caused by the COVID-19 pandemic.

The objectives of the component are to improve the resilience and accessibility of health care by (i) developing a framework and necessary infrastructure for the provision of integrated health services, ensuring the capacity of health institutions to adapt to crisis situations, (ii) developing improved service delivery models and (iii) improving the provision of human resources and the professional development system for health professionals.

The component supports addressing the Country Specific Recommendation to strengthen the resilience and accessibility of the health system including by providing additional human and financial resources (Country Specific Recommendation 1, 2020) and to increase the accessibility, quality and cost-effectiveness of the healthcare system (Country Specific Recommendation 2, 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

D.1. Description of the reforms and investments for non-repayable financial support

Reform 4.1.1.r: Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system.

The objectives of the measure are to develop a human-centred, comprehensive, integrated healthcare system and ensure its sustainability and resilience.

The reform consists of the development of new models for the delivery of effective integrated health services at all levels of healthcare (primary, secondary and tertiary). The reform aims to develop integrated care recommendations and an epidemiological safety framework.

An investment strategy defining infrastructure investment needs shall be prepared by 31 December 2022. The reform shall also contain assessments of the provision of hospital services according to the hospital level and the mapping of hospital services. These elements together with the integrated care recommendations and epidemiological safety framework are prerequisites for the planned investments in the hospitals and secondary outpatient settings as per the investment: 4.1.1.2.i. and 4.1.1.3.i.

In the field of oncology, the measure shall ensure the introduction of uniform methodological management by setting up and preparing for certifying a Latvian cancer care centre, as well as ensuring joint management, treatment and care, and establishing a network of hospitals specialising in the treatment and care of oncological patients.

The investments in the genome project shall create, in accordance with the European “1+ Million Genomes” (1+MG) initiative, a representative collection of reference genome data of Latvian citizens, collecting genetic data samples donated by Latvian citizens. It aims to strengthen Latvia’s genetic research and digital capacity in order to facilitate secure matching and analysis of these data within the framework of the European 1+MG infrastructure.

With a view to promoting integrated and patient-centred healthcare, improving the accessibility, quality and resource efficiency of health services, a Digital Health Sector Strategy shall be developed in cooperation with the World Health Organisation. This strategy shall serve as a way forward to develop and deploy digital solutions in the health sector that are safe and meet the needs of the industry and its users.

The reform shall be implemented by 31 August 2026.

Investment: 4.1.1.1.i. Support for public health research.

The objective of the measure is to improve the planning and implementation of the public health policy, including to ensure epidemiological safety through the development of patient-centred sustainable integrated health services.

The investment consists of three studies. (i) In the area of the antimicrobial resistance, a study to identify the most effective methods of intervention and monitoring. (ii) A study to identify the reasons for non-vaccination to ensure a wider coverage of vaccination and reduce the risk of spreading infectious diseases in Latvia. (iii) In the area of infectious diseases, a study on the infection risks and their impact on public health indicators.

The key findings of these studies are expected to serve as the basis for improvements of the public health policy. Based on these findings changes are expected in regulatory framework, methodology and recommendations.

The investment shall be implemented by 31 August 2026.

Investment: 4.1.1.2.i.: Support for strengthening the health infrastructure of university and regional hospitals

The objectives of the measure are to strengthen the resilience of the health sector and the availability of services by developing the necessary infrastructure for integrated health services, ensuring the capacity of health institutions to adapt to crisis situations, and ensuring continued sustainable and high-quality state-funded health services. Investments in hospital infrastructure shall help to improve the availability of both outpatient and in-patient services.

The investments are planned to be made in three clinical university hospitals and seven regional hospitals for improving their infrastructure and equipment. Investments shall be based on recommendations for integrated care and epidemiological safety requirements and in accordance with the investment strategy for the development of health care infrastructure for 2021-2027. Investments shall be provided for the renovation, refurbishment and construction of new premises as well as for the procurement of the medical technologies and equipment.

The investments to ensure the integrated healthcare approach and make the necessary adaptions for epidemiological safety shall be made in three clinical university hospitals: Riga Eastern Clinical University Hospital, Paula Stradiņa Clinical University Hospital and Children’s Clinical University Hospital and seven regional hospitals: Liepaja Regional Hospital; Daugavpils Regional Hospital, Rēzekne Hospital, North Kurzeme Regional Hospital, Jēkabpils Regional Hospital, Vidzeme Hospital and Jelgava Hospital.

The investment shall be implemented by 31 August 2026.

Investment 4.1.1.3.i. Support for strengthening health infrastructure of secondary outpatient service providers

The objectives of the measure are to improve the infrastructure of secondary outpatient service providers to ensure the provision of integrated services, epidemiological safety, and environmental accessibility.

The investment consists of investments in infrastructure and equipment for at least 40 secondary outpatient healthcare service providers. These investments shall be made in accordance with the recommendations for integrated care and epidemiological safety requirements, as well as investment strategy for the development of health care infrastructure for 2021-2027.

The investment shall be implemented by 31 August 2026.

Reform 4.2.1.r.: Provision of human resources and upskilling.

The objectives of the measure are to improve the human resources management and upskilling in the health sector.

The reform consists of the development of a human resources strategy that includes a comprehensive approach to the health workforce planning and lifelong learning model, coordination mechanism for training and a simulation approach in training. The human resources strategy for the health sector shall be based on a mapping of human resources.

The strategy shall cover such actions as the development of a new salary model, the provision of basic medical training and the number of residence places in line with demand, retention measures as well as the development of a human resources database. The reform shall also establish a framework to strengthen the medical education system, providing for the introduction of a sustainable model for continuing education and a coordination mechanism to ensure and monitor the quality of educational content, as well as a simulation approach at all levels of education. An IT tool for forecasting the future needs of health workforce shall be developed.

The reform shall be implemented by 31 December 2024.

Investment: 4.2.1.1.i. Support for the implementation of the human resources development system.

The objectives of the measure are to develop a common approach for continuous education in health, and introduce a simulation approach in the health education system.

The investment consists of the establishment of a coordination mechanism and covers aspects such as methodological management, quality control of the education content, sustainable financing.

The investment shall also ensure the development of an action plan for the implementation of a simulation approach in the training process for medical practitioners. The approach shall allow to simulate different real life situations, thus enabling future and existing medical professionals to further develop their skills.

The investment shall be implemented by 31 August 2026.

Reform: 4.3.1.r.: Sustainability of health care, strengthening governance, efficient use of health resources, increase of total public budget in the health sector.

The objectives of the measure are to improve the efficiency of the provision of state-funded health services by ensuring the availability of services, and establishing a systemic change mechanism for state-paid services.

The reform consists of the establishment of a service laboratory system for testing and evaluating different service models. The measure shall cover the examination of the current situation, identification and assessment of the challenges, and development of the solutions such as the new service models. The new service models shall be piloted and compared with the existing service. The short and long-term benefits and efficiency gains of the models shall be assessed. Based on the results, 10 new service models are expected to be piloted and evaluated for mainstreaming and implemented as part of the state paid service basket.

The reform shall be implemented by 31 August 2026.

Investment: 4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare.

The objective of the measure is to identify the weak spots in the provision of the state paid non-hospital secondary healthcare services.

The investment consists of a study on the quality and accessibility of state paid non-hospital secondary healthcare services, mapping of comprehensive non-hospital secondary care needs and challenges linked to the implementation of the administrative territorial reform as well as the development of policy recommendations.

The investment shall be implemented by 31 December 2024.

D.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr.	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
131	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	Adoption of a digital health strategy	Digital health strategy adopted by the Ministry of Health	N/a	N/a	N/a	Q3	2022	The milestone shall be deemed to be reached after the digital health strategy has been approved by the Ministry of Health. The strategy shall be developed in line with the Public Health Guidelines 2021-2027 and Digital Transformation guidelines 2021-2027. The strategy shall contain an action plan and monitoring framework. The strategy shall cover such aspects as health care, use of data for research, common use of data, data management, public health sector IT systems and solutions, private IT systems, cross-border data exchange and digital skills.
132	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	Development of a human-centred, comprehensive, integrated healthcare delivery model through the development of an investment strategy and recommendations for the development of integrated and epidemiologically safe health care	Integrated healthcare model documents approved by the Ministry of Health	N/a	N/a	N/a	Q4	2022	The integrated healthcare shall be established once the following documents are developed and approved by the Ministry of Health: 1) an investment strategy for infrastructure investments for the provision of publicly funded health services, including a hospital mapping shall be included to ensure the continuation of the reform of the hospital network, including taking into account the assessment of hospital levels; 2) recommendations for the implementation of the integrated care approach; 3) a set of recommendations for epidemiological requirements
133	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	The genome reference of the Latvian population has been established (Latvia’s participation in the Genome for Europe project – GoLatvia project)	Genome reference established in Latvia	N/a	N/a	N/a	Q1	2024	The genomic design documentation demonstrating the establishment of the Latvian population genome reference has been approved by the Ministry of Health
134	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	Methodological management in the field of oncology ensured	Methodological documents for the implementation of common principles in the field of oncology approved by the Ministry of Health	N/a	N/a	N/a	Q3	2026	The objective shall be achieved following the approval by the Ministry of Health of documents ensuring the introduction of uniform methodological management in the field of oncology.
135	4.1.1.1.i. Support for public health research	Milestone	Adoption of a methodology for three studies to improve public health policy planning and implementation in the field of antimicrobial resistance, vaccination and infectious diseases	Adoption of methodology by the Ministry of Health	N/a	N/a	N/a	Q3	2022	The milestone shall be considered to be achieved following the development by a subordinate institution of the Ministry of Health and the adoption by the Ministry of Health of a harmonised methodology for research in the areas of anti-microbial resistance (AMR), vaccination and infection reduction.
136	4.1.1.1.i. Support for public health research	Milestone	Public health research carried out to improve public health policy planning and implementation in the field of AMR, vaccination and infectious diseases	Public health research published	N/a	N/a	N/a	Q4	2025	Three studies carried out and published by the subordinate institution of the Ministry of Health: 1) in the field of AMR, research on antimicrobial resistance to identify the most effective intervention and monitoring methods; 2) identify the reasons for non-vaccination and 3) in the field of infectious diseases, identify the infection risks and their impact on public health indicators.
137	4.1.1.1.i. Support for public health research	Milestone	Entry into force of amendments to legal acts aimed to improve public health policy planning and implementation in the fields of antimicrobial resistance (AMR), vaccination and infectious diseases	Entry into force of revised legislation regarding the public health policy planning and implementation	N/a	N/a	N/a	Q3	2026	Based on the results of the research in the fields of antimicrobial resistance (AMR), vaccination and infectious diseases, entry into force of amendments to legal acts related to public health policies, such as recommendations to hospitals, Latvian Centre for Disease Prevention and Control working documents, guidelines, improvement of the vaccination process.
138	4.1.1.2.i. Support for strengthening the health infrastructure of university and regional hospitals	Target	Number of projects which received a positive opinion of the Technology Commission on the eligibility of equipment for the provision of the relevant state-funded services	N/a	Number	0	10	Q4	2022	The target shall be considered to be achieved with the positive decision of the Ministry of Health on the harmonisation of the acquisition of medical technology in each of the ten projects supporting health infrastructure of university and regional hospitals. This decision shall be prepared for all projects. If such acquisitions are not planned, a decision to that effect is required. If a project involves the purchase of medical technology, it requires a positive opinion from the Technology Commission.
139	4.1.1.2.i. Support for strengthening the health infrastructure of university and regional hospitals	Target	Achievement of budget execution as measured by overall procurement in projects improving the infrastructure of university and regional hospitals amounting to at least EUR 59 800 000 of total budget EUR 149 500 000.	N/a	EUR million	0	59.8	Q4	2024	The target shall be considered to be achieved once at least 40 % of the total planned project volume EUR 59 800 000 has been implemented – progress shall be measured by the overall procurement (projects completed) of the projects against the total planned investment volume of EUR 149 500 000 for the infrastructure and equipment for three university and seven regional hospitals to ensure the provision of comprehensive sustainable integrated health services.
140	4.1.1.2.i. Support for strengthening the health infrastructure of university and regional hospitals	Target	Number of hospitals with improved infrastructure	N/a	Number	0	10	Q3	2026	The target shall be deemed to be achieved when development projects in three university and seven regional hospitals are completed in accordance with the technical description of each project and aimed to ensure the necessary infrastructure for integrated health services, ensuring the capacity of health institutions to adapt to crisis situations, and ensuring continued sustainable and high-quality state-funded health services.
141	4.1.1.3.i. Support for strengthening health infrastructure of secondary outpatient service providers	Target	Achievement of budget execution as measured by overall procurement of projects improving the infrastructure of secondary outpatient providers amounting to at least EUR 4 250 000 of total budget EUR 8 500 000.		EUR million	0	4.25	Q4	2024	The target shall be considered to be achieved once procurement for at least 50 % of the total planned project volume) has been contracted (EUR 4 250 000) – progress shall be measured by the overall contracting of the projects against the total planned investment volume of EUR 8 500 000 in at least 40 secondary outpatient healthcare institutions aimed to improve (1) the epidemiological safety, (2) environmental accessibility and (3) infrastructure for integrated care services.
142	4.1.1.3.i. Support for strengthening health infrastructure of secondary outpatient service providers	Target	Number of secondary outpatient providers with improved infrastructure	N/a	Number	0	40	Q3	2026	The target shall be considered to be reached upon completion of development projects in at least 40 secondary outpatient healthcare institutions aimed to improve (1) the epidemiological safety, (2) environmental accessibility and (3) infrastructure for integrated care services.
143	4.2.1.r. Provision of human resources and upskilling	Milestone	Human resources development strategy	The Latvian authorities have adopted a comprehensive health workforce strategy, which includes models for lifelong learning and for health workforce planning	N/a	N/a	N/a	Q2	2023	A human resources development strategy has been adopted, in consultation with social partners and other stakeholders, in accordance with the Cabinet of Ministers’ Rules of Procedure. The health workforce strategy shall provide a framework for the development of health workforce planning mechanism, including needs for under-graduate and post-graduate study places, a robust information system that shall include up-to-date information at individual level on the development of the skills and competences of medical practitioners during their career and an effective lifelong learning planning and management. The strategy shall also lay out the principles of the healthcare remuneration model.
144	4.2.1.r. Provision of human resources and upskilling	Milestone	Adoption of Human Resources Mapping in Healthcare	Human resources mapping developed and approved by the Ministry of Health	N/a	N/a	N/a	Q4	2023	The human resources in healthcare mapping has been completed. The mapping shall include detailed information on the number of health professionals working in different disciplines, in the public and in the private sector, at all levels of care. The mapping shall also include detailed information on the workload borne by health professionals and on continuous training, highlighting the criticalities in the assessed levels of qualification and in the readiness to deal with technological and organisational innovation.
145	4.2.1.r. Provision of human resources and upskilling	Milestone	New remuneration model for healthcare staff implemented	Entry into force of a law/regulation ensuring the implementation of a new remuneration model for healthcare	N/a	N/a	N/a	Q2	2024	The new remuneration model for healthcare staff shall include a transparent wage calculation mechanism and streamlines the wages across the health sector; solutions to ensure transparency, fairness, as well as gradual wage increases, with a view to improving the availability and quality of services.
146	4.2.1.r. Provision of human resources and upskilling	Milestone	Adoption of a model for health workforce planning	Adoption and deployment of a model for forecasting future health workforce needs	N/a	N/a	N/a	Q4	2024	A model (IT tool) to forecast the future needs of health workforce delivered and approved by the Ministry of Health. The model is to be used for planning purposes. The model shall provide estimates, based on projected population health care needs and the organisation of healthcare service delivery, on: -The need for healthcare professionals, by specialty and geographic area / place of practice; -The need for professional development of health professionals, -Expected gaps in workforce supply.
147	4.2.1.1.i. Support for the implementation of the human resources development system.	Milestone	A coordinating mechanism for health workforce training established	A coordination mechanism for continuous health workforce training ensuring cooperation between the involved institutions, methodological management and quality control established by the Ministry of Health	N/a	N/a	N/a	Q4	2023	The establishment of a coordination mechanism for the management of the continuous education process, as evidenced by the relevant supporting documents of the Ministry of Health (e.g. orders, decisions). The organisational model for continuing training shall be developed, focusing on the content of the training, the form of training, the necessary facilities and equipment (e.g. simulations, use of virtual reality, etc.), as well as cooperation mechanisms between educational institutions, clinical university hospitals, regional hospitals and other key stakeholders. The organisational model, a governance structure and clear lines of responsibility and accountability shall be established. Guidelines for the procurement of training services, as well as quality standards for training and system for monitoring and evaluating.
148	4.2.1.1.i. Support for the implementation of the human resources development system	Milestone	Simulation approach introduced in the healthcare learning process	Simulation approach introduced in healthcare learning process	N/a	N/a	N/a	Q3	2026	The milestone shall be deemed to have been achieved once the action plan or guidelines for the implementation of simulations at all stages of medical education are approved by the Ministry of Health
149	4.3.1.r. Sustainability of health care, strengthening governance, efficient use of health resources, increase of the total public budget in the health sector	Milestone	Coordination mechanism approved to assess, develop and implement new healthcare service delivery models services	Coordination mechanism to assess and implement new healthcare service delivery models developed and approved by the Ministry of Health	N/a	N/a	N/a	Q4	2022	A coordinating unit within the Ministry of Health or its subordinate body is in place. It shall ensure that industry representatives are involved in the development of proposals as experts (e.g. a working group or supervisory board). The aim of the unit is to coordinate the work to develop, implement and assess new healthcare service delivery models aimed to provide improved and more efficient provision of state-funded health services at all levels, ensuring availability and quality of services through the establishment of a system change mechanism for state-paid services.
150	4.3.1.r. Sustainability of health care, strengthening governance, efficient use of health resources, increase of the total public budget in the health sector	Target	Mainstreaming of new healthcare service delivery models as part of publicly funded healthcare services	N/a	Number	0	10	Q3	2026	Ten new healthcare service delivery models developed and mainstreamed as part of publicly funded healthcare services. For each model a working group, consisting of the representatives of the Ministry of Health, National Health Service and other subordinate bodies as well as other stakeholders has performed: -assessment of the situation; -development of the model; -piloting of the model; -assessment of short- and long-term benefits; -and protocols for implementation. Based on the results of the pilot projects, a proposal for the necessary additional national budget for the implementation of the relevant measures shall be prepared. The government budget request shall be considered together with all other proposals for the annual and medium-term budget in the preparation process.
151	4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare	Milestone	Adoption of a methodology for the study on the quality and availability of non-hospital secondary healthcare	Adoption of a methodology by the Ministry of Health	N/a	N/a	N/a	Q4	2022	The milestone shall be considered to be achieved after the approval by the Ministry of Health of a methodology required for carrying out the study aimed to assess the quality and accessibility of health care, including non-hospital secondary health service level mapping and the impact of the administrative territorial reform
152	4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare	Milestone	Study on the quality, accessibility and availability of non-hospital secondary healthcare	A study on the quality accessibility and availability of non-hospital secondary healthcare published by the Ministry of Health	N/a	N/a	N/a	Q4	2023	Study carried out and published by the Ministry of Health that covers the assessment of the quality, availability and accessibility of non-hospital secondary care, including non-hospital secondary health service level mapping and the impact of the administrative territorial reform. The study includes health system assessment and proposals for systemic improvement.
153	4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare	Milestone	Mainstreaming results of quality, availability and accessibility of non-hospital secondary care study into health policy developments	Entry into force of amendments to legal acts aimed to increase the quality, availability and accessibility of non-hospital secondary care	N/a	N/a	N/a	Q4	2024	Based on the results of the research on quality, availability and accessibility of non-hospital secondary care, entry into force of amendments tolegal acts related to public health policies, recommendations for hospitals and service delivery planning documents

E. COMPONENT 5: ECONOMIC TRANSFORMATION AND PRODUCTIVITY REFORM

This component of the Latvian recovery and resilience plan consists of two subparts addressing the key challenges in innovation and higher education, respectively. The key innovation-related challenges are the low innovation investment, particularly in the private sector, weak science-business links, the shortage of highly skilled human resources, and the fragmentation of innovation system governance. The key higher education -related challenge is a fragmented higher education landscape, comprised of a relatively large number of small institutions whose funding is both insufficient and ineffective. This means most higher education institutions (HEIs) lack resources to deliver good quality education and to create critical mass for high quality research. Moreover, there is a suboptimal university governance model with a poor representation of external stakeholders and a lack of attractive academic career opportunities, limiting human resources for education, research and innovation.

The objectives of the component are to increase productivity through higher R&D investments, boost competitiveness and foster cooperation between the public sector, businesses, academia and research institutions. The changes to the governance of the innovation system and their accompanying support schemes for private R&D investments are aimed at creating sustainable innovation ecosystems thereby fostering higher overall investment in innovation. The broad-ranging reform of the higher education aims to boost the quality and efficiency of higher education, the competitiveness of Latvia’s research and to deliver better skills to Latvia’s population in the long term.

The component supports addressing the Country Specific Recommendations to focus investment-related economic policy on innovation (Country Specific Recommendation 3, 2019, Country Specific Recommendation 3, 2020) and to increase the quality and efficiency of education and training (Country Specific Recommendation 2, 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

E.1. Description of the reforms and investments for non-repayable financial support

Reform 5.1.r.: Innovation system governance and private R&D investment motivation

The objective of the measure is to introduce an ecosystem approach in innovation governance. It aims to introduce a support instrument that shall enable increased R&D capacity in enterprises, promote cross-sectoral cooperation, increase the share of innovative enterprises and thereby promote increased private investment in innovation.

The reform consists of the creation of an innovation governance model which shall mean assigning specific tasks to the involved institutions representing the government, the industry and the academia. The key tasks of the innovation system shall be strategy determination, management of innovation fund, data gathering, performance measurement and monitoring, as well as periodical re-assessment of the governance model.

The reform shall be implemented by 31 December 2022.

Investment: 5.1.1.1.i. Development and continuous operation of a fully-fledged innovation system governance model

The objective of the measure is to develop a model for the governance of the innovation system and its continuous operation. The investment focuses on improving the governance of the innovation system, which is based around regional innovation smart specialisation strategies (RIS3) in five areas – (a) knowledge-intensive bio-economy, (b) biomedicine, bio-pharmacy, and medicine technologies, (c) smart materials, technologies and systems, (d) information technologies, and (e) smart energy. The objective of the measure is to develop value chain ecosystems in the RIS3 areas involving all representatives from the government, the industry and the academia. It aims to promote the development of new products and technologies and the knowledge transfer within the economy, contributing to the transformation of the economy towards higher value added.

The investment consists of the establishment of an innovation governance model that ensures a coordinated approach to implementation of innovation fund as well as monitoring of innovation performance. The investment shall lead to changes in the design and implementation of innovation policy in the RIS3 areas – the way in which the public administration is involved and functions. The measure shall ensure the transition of the RIS3 governance model to an ecosystem approach, as well as improve the flow of information and cooperation between stakeholders (including public authorities responsible for innovation policy and implementation of support instruments). Two bi-annual analytical reports in 2023 and 2025 in each RIS3 area shall be carried out, including performance of the innovation support programme, as well as recommendations for possible programme improvements.

The investment shall be implemented by 31 August 2026.

Investment: 5.1.1.2.i. Support for research and internationalization

The objective of the investment is to increase the volume of private R&D investments through targeted public investments that shall promote the development of new products and technologies, as well as knowledge transfer within the economy.

The investments shall fund four programmes with the following indicative amounts: i) competence centre support programme for EUR 25 million, ii) research support programme for EUR 47 million, iii) cooperation networks support programme for EUR 5 million, and iv) support programme for participation in Important Projects of Common European Interest (IPCEI) for EUR 31 million. A closed call for support shall be organised for i) competence centres support programme. An open call shall be organised for the selection of ii) private intermediaries for implementation of the private sector R&D support programme, iii) intermediaries for implementing the cooperation networks support programme, and iv) projects eligible to participate in IPCEI. Emphasis shall be placed on building complete innovation ecosystems, covering existing cooperation networks, ensuring strategic specialisation and innovation development within the entire local value chain, which shall ensure closer integration of Latvian enterprises into global value chains. The selected entities shall be tasked with the (i) implementing the support programme for private research and development projects, (ii) export promotion activities, (iii) networking and exchange of experience activities, (iv) implementation of support programme for participation in EU-level research programmes and international cooperation networks, (v) implementing the support programme for the involvement of Latvian enterprises in industrial alliances at EU level and planned IPCEIs and (vi) collecting data from the beneficiaries to inform the assessment and monitoring activities.

The investment is expected to ensure the development of new innovative products and shall cover such expenses as industrial research, experimental development, feasibility studies, co-financing for participation in European and international R&D projects. The funding shall be ensured for participation in planned IPCEI, including in the fields of next generation cloud and edge computing. A government agency shall determine the most suitable project(s) for IPCEI participation and shall include appropriate provisions in the action plan attached to the implementation of this measure.

The investment shall be implemented by 31 August 2026.

Reform 5.2.1.r.: Reform of Higher Education and Scientific Excellence and Governance

The objectives of the reform are to increase the international competitiveness of higher education institutions.

The reform concerns structural changes in three pillars: (i) the governance through establishing a separate academic and strategic decision-making, involving external members; (ii) funding that shall be allocated according to the results achieved according to national priorities and higher education institution typology objectives; and (iii) human resources by developing a new and unified career model for academic and scientific staff in line with best global practice, promoting the attraction and retention of global staff, especially the diaspora in Latvia.

By 31 December 2022, the measure shall ensure the entry into force of the regulatory framework for implementing the reform of the governance of the higher education system covering (i) higher education institution typologies and criteria for qualifying for a particular type; (ii) the procedure for the establishment and approval of higher education institution councils, the competence of the councils, while clarifying the competences of the Senate, the Rector and the Constitutional Assembly; (iii) the procedure for selecting and approving new university reactors; (iv) defining the strategic specialisation of higher education institutions .

By 30 September 2023 at least four consolidation plans of institutions of higher education shall be approved and eligible for consolidation grants (investment: 5.2.1.1i. Research, development and consolidation grants).

By 31 December 2024, the measure shall ensure the entry into force of legal provisions (i) introducing a new doctoral model; (ii) introducing cyclical institutional accreditation of higher education institutions and colleges; (iii) further development of the financing model for higher education and (iv) linking public funding to the results of the international evaluation of scientific institutions.

By 31 August 2026, all state-founded higher education institutions shall implement the new governance model, including changes to the internal governing bodies, established the criteria for election of the rector in accordance with the requirements of the law, appointed a management team.

Investment: 5.2.1.1.i. Research, development and consolidation grants

The objectives of the investment are to reduce the number of higher education institutions and scientific institutes through consolidation. The plan shall finance grants that shall incentivise higher education mergers, which shall help concentrate the scarce resources both in higher education and academic research.

The approved consolidation plans of the higher education institutions shall include an investment plan. This may cover grants for structural change; exit grants for termination of employment with academic staff over 65 years of age; digitalisation, technological development, improvement of research and education infrastructure (excluding construction) and creation of new programmes of excellence.

The investment may cover grant agreements concluded by the universities or research institutes for doctoral grants, post-doctoral grants or scientific (professor) grants as well as in-house research grants.

The investment shall be implemented by 31 August 2026.

E.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr	Related measure (reform or investment)	Milestone / target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description and clear definition of each milestone and Target
					Unit of measure	Baseline	Goal	Quarter	Year
154	5.1.r. Innovation system governance and private research & development investment motivation	Milestone	Development of a long-term national strategy for each of the RIS3 areas and establishment of a Strategic Steering Board for each of the RIS3 areas	The strategy has been agreed with all stakeholders and approved. The Strategic Steering Boards for RIS3 have been established and their representatives elected.	N/a	N/a	N/a	Q4	2022	Amendments to the relevant legislation giving the following functions to the relevant institutions shall enter into force: The Investment and Development Agency of Latvia (LIDA) shall be responsible for: — Developing long-term strategies at national level in each of the RIS3 areas — Developing annual action plans for each of the RIS3 areas —The establishment of a Strategic Steering Board for each of the RIS3 areas — Leadership and coordination of established councils — Developing a methodology for the selection of asset value chains, including the establishment of quantitative criteria for the elimination of value chains Strategic Steering Board for each RIS3 area: — Ensure the compatibility of planned investments with RIS3 specialisation strategies, national competitive advantages — shall be made up of key private, public and research actors. —is elected by LIDA in agreement with the ministries involved. The Strategic Steering Board is re-elected once a year. —The Strategic Steering Board shall be responsible for approving the strategies for the RIS3 specialisation areas. The Ministry of Economics shall be responsible for: — development of analytics and monitoring system for the business sector in RIS3 specialisation areas, development of monitoring reports
155	5.1.1.1.i. Development and continuous operation of a fully-fledged innovation system governance model	Target	Mobilising the human resources needed	N/a	Number of people	0	19	Q4	2023	The Ministry of Economics and the Latvian Investment and Development Agency shall contract at least 19 people for ensuring the performance of the functions assigned to these institutions in relation to the innovation governance.
156	5.1.1.1.i. Development and continuous operation of a fully-fledged innovation system governance model	Milestone	Publishing of a monitoring report providing information on each RIS3 area, the operation of the innovation management model and long-term financing.	Published analytical monitoring report approved by the Strategic Steering Boards of the RIS3 specialisation areas.	N/a	N/a	N/a	Q3	2026	The Ministry of Economics shall publish: — bi-annual (2023 and 2025, total 2) analytical monitoring report for each of the RIS3 areas, which also include an evaluation of the Innovation Support Programme and recommendations for its improvement. — one monitoring report (covering the period 2023-2025) containing an overall and an individual assessment of the performance of private intermediaries selected for research support programme implementation and cooperation network support programme as well as analysis of the functioning of the new innovation governance model. Long-term state budget financing for the innovation management system shall be ensured. The financing decision shall specify the functions of the involved institutions according to the results of the above-mentioned monitoring report.
157	5.1.1.2.i. Support instrument for research and internationalization	Milestone	Cabinet Regulations adopted	Entry into force of Cabinet Regulations governing all four support programmes				Q1	2024	Cabinet Regulations governing the implementation of i) competence centres support programme, ii) research support programme, iii) cooperation networks support programme and iv) IPCEI participation support programme shall enter into force, and shall: - include indicators for measuring the performance of the selected intermediaries, such as attracted private R&D investment, increased exports among beneficiaries, number of products developed; and - define the responsibility of intermediaries for collecting data from the final beneficiaries of the programme. The Cabinet Regulations shall establish that the selection of intermediaries for implementation of research support programme and cooperation networks support programme shall take into account their compliance with the RIS3 specialisation strategy, as well as their capacity to organise calls and their competence to evaluate projects in their respective thematic area. Furthermore, they shall establish that the selected intermediaries for the implementation of the competence centres support programme and of the research support programme shall be responsible for carrying out the following activities: i. implementation of the private sector R & D support programme; and ii. data collection from final beneficiaries that shall be used for monitoring activities carried out by the Ministry of Economics. Furthermore, it shall establish that the selected intermediaries for the implementation of the cooperation networks support programme shall be responsible for carrying out one or more of the following activities: i. export promotion activities; ii. networking and exchange of experience activities; iii. Implementation of the support programme for the participation of economic operators in EU-level research and development programmes and in international cooperation networks; And iv. data collection from final beneficiaries that shall be used for monitoring activities carried out by the Ministry of Economics. Furthermore, it shall establish that the final recipient of support in IPCEI participation support programme shall be responsible for carrying out one or more of the following activities: i. implementation of the R&D support programme; ii. identification and motivation of planned IPCEI participants to submit project ideas; and iii. data collection from final beneficiaries that shall be used for monitoring activities carried out by the Ministry of Economics.
158	5.1.1.2.i. Support instrument for research and internationalization	Target	Commitment of funding	N/a	EUR million	0	98	Q2	2025	At the conclusion of the programme, the following shall be delivered: - confirmation of commitment of at least EUR 98 million for the funding of R&D projects.
159	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Milestone	Reform of the governance of higher education institutions	Legislative amendments entered into force in line with the reform of governance of higher education institutions	N/a	N/a	N/a	Q4	2022	The regulatory framework for implementing the reform of the governance of the higher education system has entered into force, including: - University typologies and criteria for qualifying for a particular type; - the procedure for the establishment and approval of university councils, the competence of the councils, while clarifying the competences of the Senate, the Rector and the Constitutional Assembly; - the procedure for selecting and approving new university reactors; - Defining the strategic specialisation of universities.
160	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Milestone	Higher education reform	Legislative amendments entered into force	N/a	N/a	N/a	Q4	2024	The Parliament has adopted amendments to the Law on higher education and the Law on Scientific Activities and the Cabinet of Ministers has adopted amendments to related Cabinet Regulations in relation to: - Introduction of the new doctoral model in Latvia (according to the solution for reform implementation foreseen in the conceptual report, the Cabinet of Ministers has been supported on 25.06.2020); - Implementation of the new academic career model in Latvia (in line with the reform implementation solution foreseen in the conceptual report, it is planned to examine the Cabinet of Ministers by 30.06.2022); - Implementation of cyclical institutional accreditation of higher education and colleges in Latvia (in line with the reform implementation solution foreseen in the conceptual report, it is planned to examine the Cabinet of Ministers by 31.12.2022); - 3 pillar further development of the financing model for higher education (in line with the solution to improve the financing model foreseen in the information report, the Cabinet of Ministers is expected to examine by 31.12.2021); - linking public funding to the results of the international evaluation of scientific institutions (in line with the solution to improve the financing model foreseen in the information report, the Cabinet of Ministers is expected to examine by 31.12.2021).
161	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Target	Consolidation of higher education institutions	N/a	Number	0	4	Q2	2023	Consolidation plans of institutions of higher education approved by Ministry of Education, including: - an investment plan and consolidation grant amount - modalities and timeframe for achieving an internal or external consolidation of two or more institutions of higher education, including through the formation of consortia, if necessary for the implementation of external consolidation. The following investments shall be eligible for financing from consolidation grants: 1) grants for structural change; 2) “Exit” grants for termination of employment with academic staff over 65 years of age; 3) Digitalisation, technological development, improvement of research and education infrastructure (excluding construction); 4) Creation of new programmes of excellence. The assessment criteria for approval of consolidation plans shall include: - whether there is a common development strategy, sharing of resources, development of study programmes, creation of common platforms; - whether there is a commitment to internal or external consolidation, including through the formation of consortia, with a clear timeframe.
162	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Target	Share of state-founded higher education institutions affected by governance changes	Changes have been introduced in 100% of state-founded higher education institutions in line with amendments to the Law on higher education institutions and related Cabinet Regulations	%	0	100	Q3	2026	100% of state-founded higher education institutions have implemented the new governance model, including: - through accordingly modified statues and other internal regulations, - internal governing bodies (senate, council, rector) operate according to the new division of responsibilities and competences, - criteria for the election of a rector have been revised according to the law, - the appointment of a management team that separates academic and strategic decision making
163	5.2.1.1.i. Research, development and consolidation grants	Target	Consolidation grants	N/a	Number of consolidation grant agreements concluded	0	4	Q3	2026	Four consolidation plans have been put in place, ensuring that the consolidation targets are met in line with the conditions for implementing the grants for consolidation and management changes.
164	5.2.1.1.i. Research, development and consolidation grants	Target	Academic Career Grant agreements signed	N/a	Number of academic Career Grant agreements signed	0	315	Q3	2026	The higher education institution or research institute have signed 315 grant agreements with doctorate, post-doctorate and researchers (professor) for one of the following activities: 1) Doctoral grants; 2) Post-doctoral grants; 3) Scientific (professor) grants. State budget funding for doctoral studies worth 19 million EUR per year are ensured starting from 2027.
165	5.2.1.1.i. Research, development and consolidation grants	Target	In-house R & D grant agreements signed	N/a	Number of in-house R&D grant agreements signed	0	90	Q3	2026	The higher education institution or research institute have concluded 90 grant agreements for carrying out in-house research with the author of the study.

F. COMPONENT 6: RULE OF LAW

This component of the Latvian recovery and resilience plan consists of four subparts that address the key challenges in tax compliance, law enforcement dealing with economic crime, public administration and public procurement. The key addressed challenges related to tax compliance are undeclared wages and employment, tax fraud, and smuggling. The key challenges related to economic crime are shortage of investigators, prosecutors and judges with specific knowledge in areas of economic crime. Key challenges related to public administration are the need to strengthen and improve its capacities, efficiency, transparency and accountability. While overall, Latvia’s performance in the area of public procurement is satisfactory, there are several challenges that require further attention, namely the need to increase the efficiency, transparency and quality of public procurement procedures, foster the competition and strengthen human and analytical capacities, including, professional qualifications of procurers.

The objectives of the component are to reduce the shadow economy and foster a fairer business environment, to improve the quality and efficiency of the judicial system, particularly with respect to fighting economic crime, to modernise the public administration as well as to improve the quality, efficiency and integrity of public procurement.

The component supports addressing the Country Specific Recommendations to improve tax compliance (Country Specific Recommendation 1 2019), to strengthen the accountability and efficiency of public administration (Country Specific Recommendation 4 2019), and to continue progress on the anti-money laundering framework (Country Specific Recommendation 4 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

F.1. Description of the reforms and investments for non-repayable financial support

Reform: 6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs

The objective of this measure is to improve the quality and efficiency of compliance risk management and other activities related to fight against shadow economy through a broad set of measures, including the adoption of a comprehensive action plan for fighting the shadow economy, introducing a new taxpayer segmentation system and adjusting the audit and control practices to better target the risk of non-compliance. The measure also includes investment in research of taxpayer behaviour that shall be used to design a more effective policy response to tax avoidance and evasion.

The reform consists of: a) adoption of a national work plan to restrain the shadow economy for 2021 – 2022, b) the establishment of a taxpayer rating system and the related optimisation of audits and controls and tailoring of state revenue service (SRS) services, c) development of a handbook for recognising risks of undeclared wages, d) commissioning of research and policy recommendations in the area of the shadow economy.

The reform shall be implemented by 30 June 2024.

Investment: 6.1.1.1.i. Modernisation of existing analytical solutions

The objective of this measure is to migrate existing risk systems to a single analytical platform and to modernise individual taxpayers’ risk system and the excise tax risk system.

The investment consists of a) the implementation of a System of Risks for Individual Taxpayers, b) the implementation of Excise Tax Risk Management System, and c) the transfer of the ESKORT system to the SAP HANA database.

The investment shall be implemented by 30 June 2024.

Investment: 6.1.1.2.i. Development of new analytical systems

The objective of this measure is to implement a new taxpayer segmentation system, ensure its integration with the 360 degree system of taxpayer analysis and ensure its integration with the database of publicly available information.

The investment consists of the implementation of an IT system for taxpayer segmentation according to their compliance risk, including integration with a published database and data visualisation in the Electronic Declaration System, b) integration of the new system with the 360 degrees analysis of the taxpayer.

The investment shall be implemented by 30 June 2024.

Investment: 6.1.1.3.i. Personnel training to work with an analytical platform and consultancy

The objective of this measure is to provide training for SRS specialists to work with the SAP HANA technology platform.

The investment consists of training 50 SRS specialists for working with SAP HANA platform. The training shall be aimed at risks analysts and system administrators.

The investment shall be implemented by 31 December 2023.

Reform: 6.1.2.r. Remote and centralised analysis of images scanned at customs control points

The objective of this measure is to link x-ray scanners for railway cargo placed at customs control points in Karsava and Indra with a single analysis system placed in Riga allowing for centralized remote image analysis.

The reform entails ensuring 95% of cargo image analysis is carried out remotely through the BAXE system.

The reform shall be implemented by 31 August 2026.

Investment: 6.1.2.1.i. Linking railway x-ray equipment to BAXE and use of artificial intelligence for rail freight scanning image analysis

The objective of this measure is to ensure the ability to perform analysis of railway cargo images scanned at customs control points Indra and Karsava remotely.

The investment consists of a) connecting railway scanners at customs control points in Indra and Karsava to BAXE information system and b) developing an x-ray image analysis platform employing artificial intelligence.

The investment shall be implemented by 31 March 2026.

Investment: 6.1.2.2.i. Capacity building of the Customs Laboratory

The objective of this measure is to allow the customs to control smuggling, counterfeit products and illegal substances more effectively.

The investment consists of equipping the customs laboratory and the customs control point at Riga airport with a spectrophotometer.

The investment shall be implemented by 31 December 2022.

Investment: 6.1.2.3.i. Improvement of customs control of received postal items at Airport customs control point

The objective of this measure is to improve the control efficiency of incoming postal consignments received at Riga International Airport customs control point.

The investment consists of equipping the Riga airport mail sorting facility with a smart scanning and sorting line.

The investment shall be implemented by 31 March 2025.

Investment: 6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala

The objective of this measure is to increase the efficiency of customs controls, reduce the administrative burden on the control service users, and to eliminate wasteful traffic of heavy-duty transport between the port and the control facilities.

The investment consists in creating an integrated control services infrastructure in Kundzinsala –a port and a major cargo transport hub in Riga. The control post shall require construction of control services facilities necessary for effective and smooth controls as well as installing x-ray scanning equipment for cargo control.

The investment shall be implemented by 31 August 2026.

Reform: 6.2.1.r. Modernisation of the process of identifying money laundering, investigating economic crimes and judicial proceedings

The objective of this measure is to improve the efficiency of the system for reporting suspicious transactions.

The reform consists of a) amending the Law on the prevention of money laundering and terrorist and proliferation financing to eliminate parallel reporting of suspicious transactions to both the Financial Intelligence Unit and the State Revenue Service and to introduce provisions for new data reception and analysis system, b) adoption of a regulation by the Cabinet of Ministers prescribing procedure and content of suspicious transaction reports and threshold declarations.

The reform shall be implemented by 30 June 2021.

Investment: 6.2.1.1.i. Establishment of AML Innovation Hub to improve the identification of money laundering

The objective of this measure is to facilitate research and information sharing between the institutions involved in fight against money laundering.

The investment consists of a) implementation of a secure platform for data exchange, including secure connections with external stakeholders, b) creation of an equipped research hall and a strategic communication space and c) development of algorithms for data analysis.

The investment shall be implemented by 31 March 2025.

Investment: 6.2.1.2.i. Strengthening the capacity to investigate economic crime

The objective of this measure is to increase the availability and capacity of law enforcement officials dealing with economic crime. The measure consists of both investment and reform elements.

The investment consists of a) training of speech recognition IT tool for the purposes of using it in the economic crime investigation process, b) training law enforcement officials to obtain a Criminal Anti Money Laundering Certificate and c) equipping law enforcement officials and units with electronic data processing and recording devices suitable for remote work.

The investment shall be implemented by 31 March 2025.

The reform consists of the adoption of a progress report on the implementation of an action plan for strengthening the fight against economic crime. The plan shall be based on the recommendations received under the Structural Reform Programme and further detailed by the State Police. The plan shall clearly define the activities to be implemented, the deadlines and the bodies responsible for implementation. The action plan shall also ensure consistency with the priorities of the Prevention of Money Laundering, Terrorist Financing and Proliferation Plan.

The reform shall be implemented by 31 December 2025.

Investment: 6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)

The objective of this measure is to improve the qualifications of the human resources of the judicial system by creating a unified training centre for judges, court staff, prosecutors, assistant prosecutors and specialised investigators (in interdisciplinary matters). The measure consists of both investment and reform elements.

The reform shall consist of a) passing of the law establishing the justice training centre and b) ensuring long-term financing for the operation of the justice training centre in the state budget law.

The reform shall be implemented by 31 March 2025.

The investment shall consist of a) refurbishment and equipment of the premises for the training centre, b) a complex approach to the development of professional competences of judicial authority, and c) development and implementation of training programmes.

The investment shall be implemented by 31 July 2026.

Reform: 6.3.1.r. Modernisation of public administration

The objective of this measure is to take the first step in modernizing the public administration, which means making it more efficient and innovative and a more attractive place to work to deliver better policy and services to citizens as well as addressing the new challenges that have emerged in the context of the COVID-19 crisis.

The reform consists of a) adoption of a plan for the modernisation of public administration, b) development of a concept and its gradual implementation of a single service centre, starting the centralization of public administration support functions, which is part of the modernization plan.

The reform shall be implemented by 31 August 2026.

Investment: 6.3.1.1.i. Open, transparent, fair and accountable public administration

The objective of this measure is to increase public officials’ competencies in the areas of ethics and integrity.

The investment consists of a) setting up a competence management system in the areas of ethics and integrity and b) training of at least 16 232 public officials in the areas of ethics and integrity.

The investment shall be implemented by 31 August 2026.

Investment: 6.3.1.2.i. Professionalisation of public administration and administrative and capacity building

The objective of this measure is to increase public officials’ competencies in the areas of modern policy design, change management, data literacy and other areas where there are skills shortages among public officials.

The investment consists of a) establishing competence development and training programmes in the areas where there are skills shortages among public officials, and b) training at least 20 011 public officials in the areas of where there are skills shortages among public officials.

The investment shall be implemented by 31 August 2026.

Investment: 6.3.1.3.i. Development of the innovation ecosystem of public administration

The objective of this measure is to foster the innovation culture and increase the innovation output within public administration. The measure consists of both investment and reform elements.

The reform consists of a) the adoption of a regulatory framework to support the development of the public sector innovation ecosystem and b) setting up and running of a public administration innovation lab.

The reform shall be implemented by 30 June 2025.

The investment consists of a) hiring of experts in innovation-relevant areas, b) setting up and equipping facilities for co-creating activities and c) piloting some of the innovations created in the innovation lab.

The investment shall be implemented by 30 September 2025.

Investment: 6.3.1.4.i. Growth of non-governmental organisations to strengthen social security representation and monitor public interests

The objective of this measure is to support public initiatives and dialogue in the areas of social resilience and advocacy of public interest.

The investment consists of a) establishment of a support programme for non-governmental organisations in the areas of public advocacy and social resilience and b) strengthening, development and improving the experience of at least 30 non-governmental organisations in the areas of social resilience and public advocacy.

The investment shall be implemented by 31 August 2026.

Reform: 6.4.1.r. Creation of a register of public procurement contracts

The objective of this measure is to increase the transparency and availability of information regarding the execution and actual performance of contracts concluded thus improving the conduct of procurers and suppliers and reducing corruption risks during the implementation phase of public procurement.

The reform consists of a) amending the law of public procurement mandating the publication of the relevant additional information and b) development of a technical solution for the register of public procurement contracts and making it available online.

The reform shall be implemented by 31 December 2022.

Reform: 6.4.2.r. Improvement of the Competition Environment

The objective of this measure is to improve the competition and reduce conflict of interest and risks of corruption in public tenders as well as to make value-for-money criteria more broadly used in public procurement.

The reform consists of amending the rules with respect to conflict of interest requirements of for procurement commissions, mandating a broader use of qualitative criteria for contract award, mandating a broader use of market consultations, and broadening exclusion criteria for bidders.

The reform shall be implemented by 31 December 2021.

Reform: 6.4.3.r. Development and implementation of a professionalisation strategy

The objective of this measure is to raise the quality and efficiency of public procurement while optimising resources used by developing competencies, skills and capacities of public procurers.

The reform consists of a) establishing standardised qualification requirements for suppliers of certain services, which are yet to be specified, b) requiring the use of standardised acceptance-transfer documents in construction procurements, c) developing a unified training programme for public procurers, d) setting requirements for procurement commission competence in procurements reaching a certain threshold of contract prices and e) centralising public procurement in areas deemed appropriate for it.

The reform shall be implemented by 31 August 2026.

Reform: 6.4.4.r. IUB IT and analytical capacity building

The objective of this measure is to improve the effectiveness of preventive measures to ensure a timely identification of risky public procurement (i.e. identification of risks in specific sectors, in the activity of particular contracting authorities or in the conduct of specific procurement.

The reform consists of a) establishing criteria for identifying risky market sectors, customers and purchases, and b) implementing a publications management system allowing for better data analytics, optimisation of processes and improving the transparency of procurement data.

The reform shall be implemented by 31 December 2024.

F.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr	Related measure (reform or investment)	Milestone / target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description and clear definition of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
166	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Adoption of work plan for public authorities to curb the shadow economy 2021-2022	Adoption of the work plan of the national authorities to limit the shadow economy for 2021-2022	N/a	N/a	N/a	Q4	2022	National Institutions Work Plan for Restraining the Shadow Economy for 2021-2022 is adopted. It includes the following activities: - Unregistered/illegal economic activity; - Undeclared employment; - Unrecorded transactions and illicit movement of goods; - Unrecorded/uncontrolled movements of cash; - Tax fraud It shall focus on economic sectors with the highest shadow economy risk, such as construction, trade, services, security, catering and hospitality, transport.
167	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Entry into operation of a taxpayer rating system, optimisation of controls	Entry into force of legal acts				Q4	2022	Entry into force of amendments to the legal acts, including: - the legal framework of the taxpayer rating system has been included, providing the publishing of their assessment. - optimised types of tax controls and inspections to improve the efficiency of tax controls and inspections.
168	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Entry into operation of a basket of data-based services for each segmentation group of taxpayers	Changes to State Revenue Service’s internal rules and/or service provision platform(s)				Q2	2024	Entry into operation of a data-based basket of services for each segmentation group of taxpayers.
169	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Publication of handbook for compliance risk management	Amendments to the State Revenue Service’s internal rules				Q3	2023	A Handbook for methodological compliance risk management of undeclared wages has been published, including: - risk assessment guidelines - aspects of typologies of ‘envelope wage payers’ - aspects of available preventive and control tools - analysis of court rulings in the area of undeclared wages.
170	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Target	Implementation of the national research programme “Reducing the shadow economy to ensure the sustainable development of the country”		Number of study reports	0	5	Q4	2022	The following research in the area of tax compliance shall be delivered: - Report on the factors influencing the shadow economy in Latvia, focusing on the most significant sectors ; - Report on the determinants of tax evasion by individuals, including an analysis of the impact of level of the shadow economy on tax compliance; - Report with policy recommendations for legislative, organisational, technological and other improvements to improve tax compliance, including an assessment of the financial impact of the proposed recommendations; - Report assessing the forgone budgetary revenue resulting from illegal activities, including legislative recommendations for reducing the risks of illicit money circulation; - Development of methodology for the measurement of shadow economy, using a dynamic "multi - indicator - multi - cause" model, including breakdown by tax types, company size and sectors.
171	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Implementation of the research results	Published assessment report of the shadow economy	N/a	N/a	N/a	Q4	2023	A first assessment report of the size of the shadow economy based on the methodology developed in 2022 shall be published.
172	6.1.1.1.i. Modernisation of existing analytical solutions	Milestone	Entry into operation of upgraded analytical solutions	Advanced risk analysis systems developed and implemented				Q2	2024	The following upgrades have been completed: Existing risk systems have been migrated to a single analytical platform. System of Risks for Individual Taxpayers has been developed and implemented. Excise Tax Risk Management System developed and implemented. The ESKORT system has been transferred to the SAP HANA database.
173	6.1.1.2.i. Development of new analytical systems	Milestone	Entry into operation of new analytical systems	Advanced risk analysis system enters into operation				Q2	2024	An IT system for taxpayer segmentation (including integration with a published database and data visualisation in the Electronic Declaration System (EDS)) shall be developed and entered into operation. The new system is integrated with the 360 degrees analysis of the taxpayer.
174	6.1.1.3.i. Personnel training with analytical platform and consultancy	Target	Training of staff to work with the analytical platform		Number of training certificates	0	50	Q4	2023	50 SRS specialists have been trained to work with SAP HANA platform. The training shall focus on the skills to work with SAP HANA framework and practical skills in system administration.
175	6.1.2.r. Remote and centralised analysis of scanned images at Customs Control Points	Target	Share of cargo images scanned by Latvian customs control points analysed remotely and centrally		%	0	95	Q3	2026	95% of the cargo images are analysed centrally and remotely through the BAXE system.
176	6.1.2.1.i. Linking railway x-ray equipment to BAXE and use of artificial intelligence for rail freight scanning image analysis	Milestone	Railway customs control points’ scanners connected to x-ray images exchange system BAXE	Deed of acceptance signed				Q1	2025	Railway scanners at customs control points in Indra and Karsava connected to BAXE information system.
177	6.1.2.1.i. Linking railway x-ray equipment to BAXE and use of artificial intelligence for the analysis of rail freight scanning images	Milestone	Rail Freight scanned image analysis platform introduced	Deed of acceptance signed				Q1	2026	An automated x-ray image analysis platform using artificial intelligence is in use for the analysis of railway cargo scanning images.
178	6.1.2.2.i. Capacity building of the Customs Laboratory	Milestone	Purchased and installed spectrophotometer for use in the Customs Laboratory	Deed of acceptance signed				Q4	2022	A spectrophotometer is set up and in use at the Customs Laboratory.
179	6.1.2.2.i. Capacity building of the Customs Laboratory	Milestone	Purchased and installed spectrophotometer for use in Airport customs control point	Deed of acceptance signed				Q4	2022	A spectrophotometer is set up and in use at the airport customs control point.
180	6.1.2.3.i. Improvement of customs control of received postal items at Airport customs control point	Milestone	A line for intelligent scanned and automatic sorting/analysis of postal items introduced at the Airport customs control point	Deed of acceptance signed				Q1	2025	A smart mail scanning and automatic sorting/analysis line is set up and in use at the airport customs control point.
181	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Joint design – construction contract signed	Construction and design contract signed				Q3	2023	A contract for the design and construction of infrastructure for the control services at Kundzinsala has been signed following a tender procedure.
182	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Building permit received	Notification of the permit approval decision				Q3	2024	A building permit has been received from the Construction Board.
183	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	The cycle of the enclosing structures has been completed	Construction act (Form 2 and Form 3)	N/a	N/a	N/a	Q3	2026	The construction of the building’s bearing and enclosing structures, including the roof, has been completed.
184	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Procurement and conclusion of a contract for the supply and installation of X-ray cargo control equipment	Contract signed				Q3	2023	A contract for the supply and installation of X-ray cargo control equipment has been signed following a tender procedure.
185	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Cargo control x-ray equipment installed	Deed of delivery				Q3	2026	Cargo control x-ray equipment delivered and installed.
186	6.2.1.r. Modernisation of the process of identifying money laundering, investigating economic crimes and judicial proceedings	Milestone	Entry into force of amendments to the Law on the prevention of money laundering and terrorist and proliferation financing	Entry into force of amendments to the NILLTPFN Law	N/a	N/a	N/a	Q2	2021	Amendments to the Law on the prevention of money laundering and terrorist and proliferation financing have entered into force, including: - the introduction of a new Financial intelligence unit (FIU) data reception and analysis system and the abolition of a parallel reporting system for both the FIU and the State revenue service (SRS), providing only for reporting to the FIU. Cabinet of ministers Regulation on the procedure and content of suspicious transaction reports and threshold declarations has been adopted.
187	6.2.1.1.i. Establishment of AML Innovation Hub to improve the identification of money laundering	Milestone	An IT platform for the exchange of knowledge and documents and for the coordination of cooperation between the stakeholders	Completion of the IT platform for knowledge exchange and communication with stakeholders				Q1	2025	1) Secure platforms for knowledge sharing, transfer and communication, including equipped research hall and a strategic communication space have been set up and are in use. The platforms shall provide for the development of algorithms for data analysis and management, definition of problems to be addressed and selection of mathematical models, and the creation of a technology analytical platform for hypotheses analysis. 2) Intra-system connections between the involved parties ensuring information protection are established and operational. Necessary equipment to perform full-length functions is purchased and FIU system is adapted for the required data exchanges.
188	6.2.1.2.i. Strengthening the capacity to investigate economic crime	Milestone	Progress report on implementation of the action plan is approved	Approval of the progress report	N/a	N/a	N/a	Q4	2025	The Cabinet of Ministers approves a progress report on the implementation of the action plan for strengthening the fight against economic crime. The information report shall confirm the implementation of all objectives set out in the plan. The plan has been approved in 2022 based on the recommendations received under the Structural Reform Programme of DG REFORM and further detailed by the State Police. The plan shall have defined the activities to be implemented, the deadlines and the bodies responsible for implementation.
189	6.2.1.2.i. Strengthening the capacity to investigate economic crime	Target	Proportion of detected criminal proceedings of environmental crimes		%	40	60	Q1	2025	The share of detected environmental crimes that are solved and brought to prosecution for the year 2024 shall be at least 60%.
190	6.2.1.2.i. Strengthening the capacity to investigate economic crime	Target	Number of certified economic crime investigators in “Certified Anti Money Laundering Specialist (CAMS)” programme		Number	0	20	Q1	2025	At least 20 law enforcement officials shall have obtained Certified Anti Money Laundering Specialist certificate.
191	6.2.1.2.i. Strengthening the capacity to investigate economic crime	Target	Equipment for law enforcement officials	Proof of purchase	Number	0	237	Q1	2025	The target includes the purchase of the following equipment: - 200 mobile workstations; - 30 portable printers - 4 large-scale servers - 3 units of videoconferencing equipment.
192	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Milestone	Entry into force of the law and other legal acts related to the justice training centre	Entry into force of the regulatory framework for the operation of the training centre and public funding ensured in state budget law for 2025.				Q1	2025	The following has entered into force: - A law for the establishment and operation of the institutional model of the justice training centre entered into force, including the definition of the involvement of the judiciary and the Judicial Council on training content and methodology. - State budget funding for the financing of the full coverage of the training centre’s maintenance costs, staff costs and training content expenses, including the updating of training programmmes from 2025 onwards shall be ensured.
193	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Target	New training programme development		Number	0	10	Q4	2024	Ten new training programmes for judges, court staff, prosecutors and assistant prosecutors, specific interdisciplinary training for investigators, including on issues such as cybercrime, fraud and tax evasion, corruption in public procurement and money laundering shall be completed.
194	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Target	Implementation and adoption of training programmes		Number	0	10	Q2	2026	The training programmes (on-site, remote and e-learning) for judges, court staff, prosecutors and assistant prosecutors, specific interdisciplinary training for investigators, including on issues such as cybercrime, fraud and tax evasion, corruption in public procurement and money laundering shall be implemented and kept up to date.
195	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Milestone	Establishment of a training centre	Adaptation of premises (renovation) and provision of equipment for the training centre completed				Q4	2024	The necessary adaptation of the premises (renovation) to the needs of the training centre has been completed. Purchase and development of the necessary equipment in the premises of the training centre. The premises of the training centre are refurbished and equipped.
196	6.3.1.r. Modernisation of public administration	Milestone	Approved Plan for Modernisation of Public Administration	Plan for Modernisation of Public Administration approved				Q4	2022	A plan for the modernisation of public administration is approved by the Cabinet of Ministers. The plan covers the following priority areas and including timeframes for implementation: (a) An open, transparent, fair and accountable public administration: the principles of integrity are reviewed and improved by defining and implementing accountability to every public administration, as well as by respecting ethical principles and values in the work of public administration; (b) Uniform, centralised and standardised support processes and systems – the introduction of a centralised resource management system in public administrations, including accounting and human resources management; (c) Strategic human resources management and development, including selection, career management, evaluation, learning and development; (d) Available, comprehensible and relevant services –developing digital transmission guidelines and digitising services, while ensuring their accessibility, accessibility and comprehensibility for all citizens, including those who do not use digital tools.
197	6.3.1.r. Modernisation of public administration	Milestone	Review of progress in the implementation of the Plan for Modernisation of Public Administration approved	Review of progress in the implementation of the Plan for Modernisation of Public Administration approved				Q4	2025	The Cabinet of Ministers has approved the Progress Report on the Implementation of the Plan for Modernisation of Public Administration, which includes, if necessary, amendments to the plan’s measures in line with the objectives of the Plan.
198	6.3.1.r. Modernisation of public administration	Milestone	Concept of the Single Service Centre approved as a prerequisite for the provision of centralised services	N/a				Q4	2022	The concept of the Single Service Centre has been developed and approved by the Cabinet of Ministers. The concept shall describe how gradual centralisation of public administration support functions (at least accounting and personnel record keeping) shall take place.
199	6.3.1.r. Modernisation of public administration	Target	Share of direct public administration human resources receiving accounting and human resource management services centrally.	N/a	% of total number of employees employed in direct administration	0	15	Q3	2026	The entry into operation of a single solution and the gradual centralisation of the support functions such as accounting and human resource management of the public administration shall start. At least 15% of the total number of employees in direct administration shall receive centralised accounting and human resource management services from the single solution service provider.
200	6.3.1.1.i. Open, transparent, fair and accountable public administration	Milestone	Competence framework available, including training programmes	Competence framework is available in the State Administration School Training Management system and approved by an internal regulatory act of the School of State Administration and the state budget law for 2024 has been passed.	N/a	N/a	N/a	Q4	2023	A competence management system has been set up and made available in the areas of ethics, anti-corruption, fraud, the shadow economy, conflict of interest and procurement: -it shall be aimed at strengthening the competencies of project managers, policy planners, etc., -it shall include the development of competence systems, training and testing modules, professional certification, induction programmes, in-house experts and coaches. State budget financing for the main public administration development training programmes has been ensured from 2024 onwards.
201	6.3.1.1.i. Open, transparent, fair and accountable public administration	Target	Number of public administration employees trained in at least one of the programmes	N/a	Number	0	16 232	Q3	2026	Number of persons trained in at least one training programme in the areas of ethics, integrity, anti-corruption, application of the procurement regulatory framework, fraud, the shadow economy and prevention of conflict of interest.
202	6.3.1.2.i. Professionalisation of public administration and administrative and capacity building	Milestone	Competence framework available, including training programmes	Competence framework is available in the State Administration School Training Management System and approved by an internal regulatory act of the State Administration School and the state budget law for 2024 has been passed	N/a	N/a	N/a	Q4	2023	Public administration competence development and retraining programmes are available in areas such as: - modern policies and services, - leadership and effective change management, - data literacy, - effective achievement of policy objectives of EU funds and foreign financial instruments, - strategic planning, evidence-based policy -planning and implementation, - sector-specific training themes. State budget financing for the professionalisation of public administration has been ensured from 2024 onwards.
203	6.3.1.2.i. Professionalisation of public administration and administrative and capacity building	Target	Number of public administration employees trained in at least one of the programmes	N/a	Number	0	20 011	Q3	2026	Number of public administration employees trained for modern policies and services, leadership and effective change management, data literacy, effective achievement of policy objectives of EU funds and foreign financial instruments, strategic planning, evidence-based policy planning and implementation, sector-specific training themes.
204	6.3.1.3.i. Development of the innovation ecosystem of public administration	Milestone	Entry into force of the regulatory framework in relation to the innovation eco-system	Development and implementation of a common experimental framework for public sector innovation				Q2	2025	A regulatory framework (guidelines, regulations, recommendations, etc.) to support the development of the public sector innovation ecosystem shall enter into force. The framework shall, inter alia, address the following challenges: — Reduce the fragmentation of the Latvian innovation ecosystem and its governance; — Improve cooperation among institutions in the implementation of innovation policy; — develop a common framework for experimentation. Innovation lab is set-up and operating. Main functions of the Innovation Lab are: 1) development of a case studies of public innovation; 2) creation of innovative solutions to public administration challenges; 3) Testing of a prototype solutions; 4) Communication to the public on innovation in public administration.
205	6.3.1.3.i. Development of the innovation ecosystem of public administration	Milestone	Ensuring the financial sustainability of the Innovation Lab	Entry into force of state budget law for 2026	N/a	N/a	N/a	Q3	2025	State budget financing for the operation of the innovation lab shall be ensured starting from 2026.
206	6.3.1.4.i. Growth of non-governmental organisations to strengthen social security representation and monitor public interests	Milestone	Publication of the framework for the support of non-governmental organisations in areas of: -social resilience -advocacy of public interest	The publication of the rules for the support programme	N/a	N/a	N/a	Q4	2022	A an open call for funding for strengthening the work of non-governmental organisations in two areas – (a) fostering social resilience and (b) advocacy for public interest has been published The call shall include conditions and criteria for NGO participation in the support programme, a reporting mechanism and indicators and targets to be achieved within the programme.
207	6.3.1.4.i. Growth of non-governmental organisations to strengthen social security representation and monitor public interests	Target	Beneficiaries of the support programme	Grant contracts signed	Number of beneficiaries (including partners) of the support programme	0	30	Q3	2026	The funding for project implementation shall benefit at least: -15 organisations in social resilience programme -15 organisations in advocacy of public interest programme The target indicator is deemed to have been fulfilled when a contract has been concluded between non-governmental organisation and Society Integration Foundation for the execution of the project.
208	6.4.1.r. Creation of a register of public procurement contracts	Milestone	A register of public procurement contracts made available.	Amendments to public procurement legislation and technical solution developed and available for production	N/a	N/a	N/a	Q4	2022	Amendments to the legislation governing public procurement have entered into force, providing for a register of contracts containing structured information on procurement contracts concluded and their actual performance (including actual costs and deadlines or the reason for termination). A technical solution for the register of public procurement contracts has been developed and made available online.
209	6.4.2.r. Improvement of the Competition Environment	Milestone	Entry into force of regulatory framework for improving the competition environment and reducing corruption risks in public procurement.	N/a	N/a	N/a	N/a	Q4	2021	Entry into force of amendments to the public procurement law, including, inter alia, the following changes: 1) The procurement commission shall be established for each procurement separately or for a specified period of time 2) the secretary of the procurement commission shall sign a declaration of absence of conflict of interest; 3) broadened cases where a supplier may be excluded from tender 4) the evaluation criteria identify specific areas where life-cycle costs and quality criteria are to be assessed in addition to the purchase price; 5) stricter requirements for cases with only a single bid 6) requirement for a market consultation in order to avoid restrictive technical specifications.
210	6.4.3.r. Development and implementation of a professionalisation strategy	Milestone	Adoption of a strategy for the professionalization of procurers	A strategy has been adopted.				Q1	2022	Adoption of a professionalisation strategy that includes specific directions of action for the competence of procurers and for conducting centralised procurements.
211	6.4.3.r. Development and implementation of a professionalisation strategy	Milestone	Amendments to the relevant legal acts, regulation and internal procedures	Entry into force of amendments to relevant legal acts, regulations or internal procedures				Q4	2022	The adoption of the following has been completed: (1) Standardised qualification requirements by sector (information and communication technologies, construction, road transport, mobile and fixed communication services), (2) Standardised acceptance-transfer documents in works procurements, (3) public access to methodological materials, (4) a single training programme to ensure that procurers’ competence has been developed and implemented, (5) increased requirements for procurement commission competence in procurements reaching a certain threshold of contract prices, e.g. certification to the Chair of the Procurement Commission, (6) pre-verification of procurements ensure that the procurement commission advertises the appropriate quality of tenders.
212	6.4.3.r. Development and implementation of a professionalisation strategy	Milestone	Entry into force of legal acts implementing centralization of procurement	Entry into force of relevant legal acts				Q3	2026	The entry into force of a decision by the Cabinet of Ministers on the execution of centralised procurements in certain areas that shall be identified in a preceding feasibility study.
213	6.4.4.r. IUB IT and analytical capacity building	Milestone	Adoption of criteria for identifying risky market sectors, customers and purchases	N/a				Q4	2021	Criteria for identification of risky market sectors, customers and procurement procedures have been approved. The criteria set are based on procurement publication indicators and EC procurement indicators, as well as on good practices from other countries, such as the Index tool.
214	6.4.4.r. IUB IT and analytical capacity building	Milestone	Upgrade of publications management system completed	Upgrade of publications management system completed				Q4	2024	A publications management system is available, ensuring: - online access, -publication of e-forms, - overview of procurement statistics, - availability of client profiles, - module for procurement complaints process, -module for carrying out pre-checks, -module for administrative infringement process cases, - verification of convicted persons before their inclusion in the procurement commission.

G. COMPONENT 7: REPowerEU

The objectives of the REPowerEU chapter of the Latvian recovery and resilience plan are:

-to increase the share and accelerate the deployment of renewable energy by i) implementing smart electricity grid management solutions both at transmission and distribution levels, ii) increasing the grid capacity to accommodate a higher integration of variable renewable energy and iii) introducing new frameworks for energy communities and self-consumers;

-to address energy poverty by supporting and promoting energy communities;

-to address internal and cross-border energy transmission and distribution bottlenecks by digitalising, modernising and securing the national electricity transmission and distribution networks, and by introducing provisions for electricity network optimisation;

-to support electricity storage and to increase energy security by investing in the installation of a Battery Energy Storage System and in cybersecurity solutions for critical energy transmission infrastructure; and

-to increase the uptake of sustainable biomethane by creating a regional biomethane injection point and by establishing a legal framework for injecting sustainable biomethane into the existing natural gas network.

Of the four measures in the Latvian REPowerEU chapter, two have a cross-border and multi-country dimension and effect. The investment measure covering the installation of a Battery Energy Storage System is precisely aimed at complementing a cross-border project implemented by Latvia, Lithuania, Estonia and Poland aimed at ensuring full synchronisation of the Baltic States’ electricity networks with the Continental Europe network. This investment also encompasses ancillary activities aimed at enhancing cybersecurity of critical infrastructures and at ensuring stable operation of the transmission network after the synchronisation, in view of a greater integration of renewable energy sources. The investment on upgrading, digitalising and securing the electricity transmission and distribution networks also has a cross-border and multi-country dimension and effect, as it is expected to contribute to removing bottlenecks in energy flows and to facilitating the integration of renewable energy sources in the networks.

The two investments account for 99% of the estimated costs of the chapter.

The REPowerEU chapter contributes to addressing recommendations to reduce overall reliance on fossil fuels (country-specific recommendation 4.1 2023) by accelerating the deployment of renewables (country-specific recommendation 4.2 2023), and to ensure sufficient capacity of interconnections to increase security of supply and continue synchronisation with the EU electricity grid (country-specific recommendation 4.3 2023).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the ‘Do not significant harm’ Technical Guidance (2021/C58/01).

G.1. Description of the reforms and investments for non-repayable financial support

Reform 7.1.r. Transforming the national energy sector

The objective of this measure is to reduce overall reliance on fossil fuels and to advance Latvia’s goal of becoming a green energy exporting country.

The reform aims at i) introducing a regulatory framework laying down the conditions and procedures for the registration and operation of energy communities, and supporting vulnerable groups of society; ii) introducing amendments to norms on electricity trade and consumption promoting self-consumers and owners of micro-generator facilities; iii) laying down conditions for a more optimised use of existing transmission and distribution networks; and iv) laying down conditions for increasing the uptake of sustainable biomethane to be injected into existing natural gas network.

The reform shall cover the following elements.

1. The reform shall create a regulatory framework for energy communities by i) setting the conditions and procedures for registering and operating the energy communities, ii) introducing an obligation for electricity traders to offer at least one product for the purchase of electricity from energy communities, and iii) introducing an obligation for local and regional authorities to channel part of the electricity produced within an energy community, or of the economic benefit derived from it, to vulnerable groups.

2. The reform shall i) introduce the possibility of using the electricity generated on the facility of one electricity user to cover the consumption needs of another facility of the same user, with the only restriction that the facilities shall be located in the national territory and connected to the national grid; ii) create an obligation for electricity traders to offer at least one product for the purchase of electricity from self-consumers operating a micro-generator facility; and iii) introduce the condition that energy sharing be possible beyond the multi-apartment building without the need to create an energy community.

3. The reform is expected to contribute to the optimisation of the use of grid capacity by electricity generation and storage facilities. It shall i) allow access to a grid connection point for power plants that might use different generation technologies and whose combined generating capacity exceeds the capacity of the grid connection point, and ii) provide conditions for the operation of such combined generating capacities and for turning on and off certain generation facilities.

4. The reform shall lay down the conditions under which sustainable biomethane transported outside the natural gas transmission and distribution networks is injected into the natural gas network.

The implementation of the measure shall be completed by 31 December 2025.

Investment 7.2.i. Security and stability of energy supply, and synchronisation with the Union grid

The objective of this investment is to increase the security and stability of energy supply, and to support the synchronisation of the national electricity grid with the Continental Europe electricity networks.

The investment shall result in:

i) the installation of a 60 MW Battery Energy Storage System in Rēzekne;

ii) the implementation of a cybersecurity solution for critical energy transmission infrastructure;

iii) the development of a concept, and the purchase and installation of software solutions, for the smart management of renewable electricity connections to the national electricity transmission grid.

The investment is expected to be implemented by the national transmission system operator. The activity under point iii) is expected to be implemented in cooperation with the national distribution system operator, as well as with Estonian and Lithuanian transmission system operators.

The implementation of the measure shall be completed by 31 December 2025.

Investment 7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks

The objective of this investment is to contribute to the clean energy transition and to increase electricity security by increasing the electricity grid capacity and flexibility to accommodate a greater integration of variable renewable energy, by refurbishing transmission networks, and by digitalising distribution networks. The investment shall cover the following elements.

1. To increase the national electricity grid capacity and flexibility to accommodate a greater integration of variable renewable energy, the investment shall deliver 70 MW of new electricity grid capacity, the construction of a digital substation in Kuldīga and the refurbishment of a substation in Carnikava.

2. To modernise energy transmission lines and increase the security and stability of electricity supply, the investment shall result in the replacement of at least 150 km of existing medium-voltage overhead power lines with cable lines.

3. To digitalise the electricity distribution network for a more efficient and flexible management of energy flows, the investment shall result in:

- the implementation of an advanced smart distribution management solution;

- the purchase and installation of remotely controlled medium voltage circuit breakers on cable lines in transformers substations and on lines at different switching points.

4. Two studies shall be completed that are expected to contribute to Latvia’s development towards becoming a green energy exporting country. The objective of the first study is to determine the maximum amount of renewable energy that could be connected to the electricity transmission network and assess the impact of higher renewable energy sources volumes on the network. The second study has the objective of estimating electricity consumption growth and electrification potential over a 10-year timeframe. Furthermore, an Environmental Impact Assessment for an electricity transmission line project between Ventspils, Brocēni and Telšiai shall be carried out.

The implementation of the measure shall be completed by 31 August 2026.

Investment 7.4.i. Increasing the uptake of sustainable biomethane

This measure is aimed at increasing the uptake of sustainable biomethane in line with the sustainability and greenhouse gas emissions savings criteria from Articles from 29 to 31 and the rules on food and feed-based biofuels set out in Article 26 of the revised Renewable Energy Directive 2018/2001/EU, and related implementing and delegated acts. The measure shall result in:

i) the construction of a new regional sustainable biomethane injection point (BIP).

ii) the purchase and installation of an IT solution for the management of the new regional BIP, including the introduction of biomethane leak detection and prevention standards.

The implementation of the measure shall be completed by 31 August 2026.

G.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Nr	Related measure (reform or investment)	Milestone / target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)	Indicative timeline for completion	Description and clear definition of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
215	7.1.r. Transforming the national energy sector	Milestone	Regulations establishing a framework for registering and operating energy communities	Legal provisions indicating the entry into force of the regulations	N/a	N/a	N/a	Q4	2024	Entry into force of the regulations of the Cabinet of Ministers, which shall: - set the conditions and procedures for registering and operating energy communities; - introduce the obligation for local and regional authorities to direct a part of the amount of electricity produced in the energy community, or the economic benefit obtained from it, to vulnerable groups of society; - introduce the obligation for electricity traders to offer at least one product for the purchase of electricity from energy communities.
216	7.1.r. Transforming the national energy sector	Milestone	Legislation amending norms on electricity trade and consumption	Legal provisions indicating the entry into force of the legislation amending the norms on electricity trade and consumption	N/a	N/a	N/a	Q1	2024	Entry into force of amendments to the norms on electricity trade and consumption, which shall introduce: - the condition that energy sharing be possible beyond the multi-apartment building without the need to create an energy community; - the possibility to use the amount of electricity produced in the facility of one electricity user to cover the consumption needs of another facility of the same user, regardless of the location of the facilities. The only limitations are that the facilities shall be i) located in the territory of the Republic of Latvia and ii) switched on for the existing electricity transmission and distribution system in the Republic of Latvia. - the obligation for electricity traders to introduce at least one product for the purchase of electricity from self-consumers operating a micro-generator facility.
217	7.1.r. Transforming the national energy sector	Milestone	Regulation on electricity network optimisation	Legal provisions indicating the entry into force of the Regulation	N/a	N/a	N/a	Q4	2025	Entry into force of regulation of the Cabinet of Ministers: - allowing access to a grid connection point for power plants that might use different generation technologies and whose combined generating capacity exceeds the capacity of the grid connection point; - providing conditions for the operation of such combined generating capacities and for turning on and off certain generation facilities.
218	7.1.r. Transforming the national energy sector	Milestone	Regulations on biomethane transported outside the natural gas transmission and distribution systems	Legal provisions indicating the entry into force of the Regulations	N/a	N/a	N/a	Q4	2025	Entry into force of the regulations of the Cabinet of Ministers, which shall: - lay down the conditions for the injection of sustainable biomethane transported outside the natural gas transmission and distribution system into the common natural gas supply system; - enable small biomethane producers to inject their produced sustainable biomethane into the common natural gas supply system.
219	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Milestone	Regulation governing the installation of a Battery Energy Storage System	Legal provisions indicating the entry into force of the Regulation	N/a	N/a	N/a	Q4	2024	Entry into force of the regulation of the Cabinet of Ministers on the legal framework for the investment in the installation of a Battery Energy Storage System in Rēzekne.
220	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Milestone	Contracts for the installation of a 60 MW Battery Energy Storage System and an IT solution for transmission network management	Contracts awarded	N/a	N/a	N/a	Q2	2025	Awarded contracts for the installation of a 60 MW Battery Energy Storage System in Rēzekne and an IT solution for transmission network management
221	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Target	Battery Energy Storage System (BESS)	N/a	MW	0	60	Q4	2025	A 60 MW Battery Energy Storage System (BESS) has been installed in Rēzekne.
222	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Milestone	IT solution for power transmission network management	IT solution for power transmission network management implemented	N/a	N/a	N/a	Q4	2025	An IT solution for power transmission network management has been implemented. This shall include: - the implementation of a cybersecurity solution for critical energy transmission infrastructure; - the development of a concept, and the purchase and installation of software solutions, for the smart management of renewable electricity connections to the national electricity transmission grid.
223	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Regulations governing investments in the national electricity transmission and distribution networks	Legal provisions indicating the entry into force of the regulations governing investments in the national electricity transmission and distribution networks	N/a	N/a	N/a	Q4	2024	Entry into force of Cabinet of Ministers’ regulations governing investments related to new electricity grid capacity, substations, transmission lines and smart energy distribution management.
224	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Target	Additional electricity grid capacity	N/a	MW	0	70	Q2	2026	New electricity grid capacity developed for a total of 70 MW. This shall be achieved by building two new 110 kV substations and by increasing the capacity of five existing 110 kV substations.
225	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Completion of substations’ works	The construction of a new substation and the refurbishment of an existing substation have been completed	N/a	N/a	N/a	Q2	2026	1) Completion of the construction of a digital substation in Kuldīga. 2) Completion of the refurbishment of a substation in Carnikava.
226	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Target	Overhead electricity network converted into cable network	N/a	Km	0	150	Q2	2026	150 km of the existing medium-voltage overhead power lines have been replaced with cable lines.
227	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Smart distribution network management solution	A smart distribution network management solution has been introduced	N/a	N/a	N/a	Q2	2026	A smart grid management solution has been introduced. This shall consist of: - the implementation of an advanced smart distribution management system (ADMS) solution; - the purchase and installation of at least 285 remotely controlled medium voltage circuit breakers.
228	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Studies and environmental impact assessment	Studies and environmental impact assessment have been completed	N/a	N/a	N/a	Q2	2026	Completion of two studies and one Environmental Impact Assessment. The first study shall include: - A determination of the maximum amount of renewable energy sources that can be connected to the electricity transmission network under different scenarios; - Calculations on the expected impact of set renewable energy sources volumes on the safety and stability of the transmission network and identification of possible solutions related to this. The second study shall include: - Estimates of electricity consumption growth and electrification potential over a 10-year timeframe; - A forecast methodology for capacity adequacy and network development planning. The Environmental Impact Assessment shall identify the most environmentally friendly and cost-efficient options for the construction of an electricity transmission line project between Ventspils, Brocēni and Telšiai.
229	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	Regulations governing investments in the biomethane sector	Legal provisions indicating the entry into force of the Regulations governing investments in the biomethane sector	N/a	N/a	N/a	Q4	2024	Entry into force of the regulations of the Cabinet of Ministers on the legal framework for the investments in the construction of a regional biomethane input point and in the purchase of an IT solution for the management of the input point.
230	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	Award of contracts for the construction of a regional biomethane injection point and for an IT solution for its smart management	Notification of the award of contracts	N/a	N/a	N/a	Q2	2025	Awarded contracts for the construction of a regional biomethane injection point and for an IT solution for the smart management of the injection point.
231	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	Regional biomethane injection point completed	Completion of construction				Q4	2025	Completion of the construction of a regional biomethane injection point. All biomethane injected in existing pipelines via the new point shall meet the sustainability and greenhouse gas emission savings criteria set out in Articles 29-31, and the rules on food and feed-based biofuels set out in Article 26, of the revised Renewable Energy Directive 2018/2001/EU, and related implementing and delegated acts.
232	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	IT solution for the management of the new regional sustainable biomethane injection point (BIP)	IT solution purchased and implemented	N/a	N/a	N/a	Q2	2026	An IT solution for the management of the new regional sustainable biomethane injection point (BIP) shall be purchased and installed. This solution shall enable the following services: - biomethane injection point capacity access management; - Representation of biomethane injection point metered data in common gas user platform; - Maintaining biomethane producer and transmission network user relations for allocations on gas entry point; - Management of gas entry point capacities, nominations and allocations; - Automatic data integration between metering points and system for issuing Guarantees of Origin. Methane and biomethane leakage detection and prevention standards shall be introduced as an integral part of the security requirements.

2.Estimated total cost of the recovery and resilience plan

The estimated total cost of the recovery and resilience plan of Latvia is EUR 1 969 244 522.

The estimated total cost of the REPowerEU chapter is EUR 134 743 378.

SECTION 2: FINANCIAL SUPPORT

1.Financial contribution

The instalments referred to in Article 2(2) shall be organised in the following manner:

1.1.First Instalment (non-repayable support):

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name
77	2.3.2.3.i. Closing the digital divide for socially vulnerable pupils and educational institutions	Milestone	Entry into force of a regulatory framework laying down procedures for the organisation and implementation of remote learning
80	2.4.1.r. Broadband infrastructure development	Milestone	Adoption of technical requirement for connected and automated driving
81	2.4.1.r. Broadband infrastructure development	Milestone	Adoption of a common model for the development of the last mile
98	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Milestone	Entry into force of the law balancing the rights of tenants and landlords
104	3.1.1.5.i. Development and equipping of educational institutions’ infrastructure	Milestone	Definition of qualitative and quantitative criteria adopted
110	3.1.2.r. Access to social and employment services in support of minimum income reform	Milestone	Adoption of the strategic framework for further development of the minimum income support system
186	6.2.1.r. Modernisation of the process of identifying money laundering, investigating economic crimes and judicial proceedings	Milestone	Entry into force of amendments to the Law on the prevention of money laundering and terrorist and proliferation financing
209	6.4.2.r. Improvement of the Competition Environment	Milestone	Entry into force of regulatory framework for improving the competition environment and reducing corruption risks in public procurement.
213	6.4.4.r. IUB IT and analytical capacity building	Milestone	Adoption of criteria for identifying risky market sectors, customers and purchases
		Instalment Amount	EUR 231 000 000,00

1.2.Second Instalment (non-repayable support):

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name
7	1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies	Milestone	Entry into force of support programme for improving energy efficiency in residential buildings
10	1.2.1.2.i. Increasing energy efficiency in business in the form of a combined financial instrument	Milestone	Entry into force of the Support Programme for Entrepreneurial Energy Efficiency
13	1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency	Milestone	Entry into force of the legal framework for a support programme to improve energy efficiency in municipal infrastructure, which supports projects with a planned reduction of primary energy or CO2 by at least 30 %.
16	1.2.1.4.i. Improving the energy efficiency of public sector buildings, including historical buildings	Milestone	Entry into force of support programme for improving energy efficiency in national and historical buildings
22	1.3.1.r. Disaster management system adaptation to climate change, rescue and rapid response services	Milestone	Publication of a report on implementation of the disaster risk management system
27	2.1.1.r. Modernisation of national processes and services and digital transformation	Milestone	Establishment of a framework for unified governance management of ICT development activities in public administration
28	2.1.1.r Modernisation of national processes and services and digital transformation	Milestone	Establishment of a normative framework for receiving support in the field of digital transformation of public administration processes and services
31	2.1.2.r. Increasing efficiency and interoperability in the use of national ICT resources	Milestone	Establishment of the legal framework for receiving support in the area of development of central systems and platforms of public administration and consolidation of computing infrastructure services
37	2.1.3.r. Development of the national economic data and digital services economy	Milestone	Entry into force of the legal framework for receiving support in the field of transformation of economic data management
40	2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage	Milestone	The European Digital Innovation Hub (EDIH) has been established
41	2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage	Milestone	Regional business support centres provide new digital transformation support functions
42	2.2.1.r. Creating the full cycle of business digital transformation support with regional coverage	Milestone	Establishment of a digital maturity test system for entities to identify the actions needed by the entities and state support.
69	2.3.2.r. Digital skills for the digital transformation of society and government	Milestone	The normative framework strengthens and implements a common framework for assessment of basic digital skills, identification and planning of training needs and assessment
70	2.3.2.r. Digital skills for the digital transformation of society and government	Milestone	Amendments have entered into force to normative acts on national higher education standards, envisaging achievement of digital competence study results at the corresponding levels of the Latvian Qualification Framework.
85	3.1.1.1.i. Improvement of the network of regional and local roads	Target	Renovated or rebuilt regional and local roads for the safe accessibility of the county administrative centres and their services and jobs and for the full functioning of the new municipalities.
89	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Milestone	The legal basis for implementing support for capacity building of local governments has been adopted
93	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Milestone	Adoption of a support programme for the development of industrial parks and territories in the regions
99	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Milestone	Adoption of a housing affordability strategy
100	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Milestone	Government regulation on the construction of low-rent dwellings
105	3.1.1.5.i. Development and equipping of educational institutions’ infrastructure	Milestone	Adoption of decisions by local councils on the reorganisation of at least 20 general secondary education institutions
107	3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and services	Milestone	A support programme has been adopted for local governments for the purchase of electric buses for the performance of the municipal functions and related services
112	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Selection of state and local government buildings where environmental adaptations shall be carried out
118	3.1.2.2.i. Development of a forecast tool	Milestone	Conclusion of contract for the development of algorithms for the forecasting model, the development of technical specifications for information system and the supervision of system development
121	3.1.2.3.i. Resilience and continuity of the long-term social care service	Milestone	Development of standard construction design
131	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	Adoption of a digital health strategy
132	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	Development of a human-centred, comprehensive, integrated healthcare delivery model through the development of an investment strategy and recommendations for the development of integrated and epidemiologically safe health care
135	4.1.1.1.i. Support for public health research	Milestone	Adoption of a methodology for three studies to improve public health policy planning and implementation in the field of antimicrobial resistance, vaccination and infectious diseases
138	4.1.1.2.i. Support for strengthening the health infrastructure of university and regional hospitals	Target	Number of projects which received a positive opinion of the Technology Commission on the eligibility of equipment for the provision of the relevant state-funded services
149	4.3.1.r. Sustainability of health care, strengthening governance, efficient use of health resources, increase of the total public budget in the health sector	Milestone	Coordination mechanism approved to assess, develop and implement new healthcare service delivery models services
151	4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare	Milestone	Adoptions of a methodology for the study on the quality and availability of non-hospital secondary healthcare
154	5.1.r. Innovation system governance and private research & development investment motivation	Milestone	Development of a long-term national strategy for each of the RIS3 areas and establishment of a Strategic Steering Board for each of the RIS3 areas
159	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Milestone	Reform of the governance of higher education institutions
166	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Adoption of work plan for public authorities to curb the shadow economy 2021-2022
167	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Entry into operation of a taxpayer rating system, optimisation of controls
170	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Target	Implementation of the national research programme “Reducing the shadow economy to ensure the sustainable development of the country”
178	6.1.2.2.i. Capacity building of the Customs Laboratory	Milestone	Purchased and installed spectrophotometer for use in the Customs Laboratory
179	6.1.2.2.i. Capacity building of the Customs Laboratory	Milestone	Purchased and installed spectrophotometer for use in Airport customs control point
196	6.3.1.r. Modernisation of public administration	Milestone	Approved Plan for Modernisation of Public Administration
198	6.3.1.r. Modernisation of public administration	Milestone	Concept of the Single Service Centre approved as a prerequisite for the provision of centralised services
206	6.3.1.4.i. Growth of non-governmental organisations to strengthen social security representation and monitor public interests	Milestone	Publication of the framework for the support of non-governmental organisations in areas of: - social resilience; - advocacy of public interest
208	6.4.1.r. Creation of a register of public procurement contracts	Milestone	A register of public procurement contracts made available.
210	6.4.3.r. Development and implementation of a professionalisation strategy	Milestone	Adoption of a strategy for the professionalization of procurers
211	6.4.3.r. Development and implementation of a professionalisation strategy	Milestone	Amendments to the relevant legal acts, regulation and internal procedures
		Instalment Amount	EUR 388 000 000,00

1.3.Third Instalment (non-repayable support):

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name
1	1.1.1.r. Greening the Riga Metropolitan Range Transport System	Milestone	Coordinated approach for passenger transport planning, ordering and organisation of the Riga metropolitan area
19	1.2.1.5.i. Modernisation of electricity transmission and distribution networks	Target	Notification of contracts award to projects approved for EUR 80 000 000.
29	2.1.1.1.i. Administration modernisation and digital transformation of services, including business environment	Target	Descriptions of ICT solutions development activities developed and harmonised
32	2.1.2.1.i. Centralised platforms, systems and services	Target	Approval of development plans for the creation, transformation or deployment of centralised ICT functions and shared services
33	2.1.2.1.i. Centralised platforms, systems and services	Target	Adoption of harmonised descriptions of the development activities of centralised ICT solutions
38	2.1.3.r. Development of the national economic data and digital services economy	Milestone	Legal framework for the functioning of the national platform for the circulation of data
57	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Milestone	Incentives and responsibilities for companies to educate and train their employees and creation of more opportunities and rights for employees to participate in learning
60	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Milestone	Development of the Individual Learning Accounts (ILA) approach
74	2.3.2.2.i. Development of state and local government digital transformation skills and capabilities	Milestone	Digital skills and competence framework developed
79	2.3.2.3.i. Closing the digital divide for socially vulnerable pupils and educational institutions	Target	Number of ICT equipment units for the target group (learners)
84	3.1.1.r. Administrative territorial reform	Milestone	Entry into force of a new “Municipality Law”
94	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Milestone	Award of contracts for the development of industrial parks in the regions
111	3.1.2.r. Access to social and employment services in support of minimum income reform	Milestone	Entry into force of legislative amendments to improve the minimum income support system
122	3.1.2.3.i. Resilience and continuity of the long-term social care service	Target	Conclusion of agreements with local governments on the implementation of projects
124	3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional disabilities	Milestone	Description of the vocational rehabilitation service adopted
127	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Milestone	A retraining and up-skilling offer, with a focus on digital skills, has been established to clients (unemployed, jobseekers, persons at risk of unemployment) of the State Employment Agency for the job-rich recovery of the economy by implementing active labour market policy measures
128	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Milestone	Development of a digital tool for skills assessment
143	4.2.1.r. Provision of human resources and upskilling	Milestone	Human resources development strategy
144	4.2.1.r. Provision of human resources and upskilling	Milestone	Adoption of Human Resources Mapping in Healthcare
147	4.2.1.1.i. Support for the implementation of the human resources development system.	Milestone	A coordinating mechanism for health workforce training established
152	4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare	Milestone	Study on the quality, accessibility and availability of non-hospital secondary healthcare
155	5.1.1.1.i. Development and continuous operation of a fully-fledged innovation system governance model	Target	Mobilising the human resources needed
161	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Target	Consolidation of higher education institutions
169	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Publication of handbook for compliance risk management
171	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Implementation of the research results
174	6.1.1.3.i. Personnel training with analytical platform and consultancy	Target	Training of staff to work with the analytical platform
181	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Joint design – construction contract signed
184	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Procurement and conclusion of a contract for the supply and installation of X-ray cargo control equipment
200	6.3.1.1.i. Open, transparent, fair and accountable public administration	Milestone	Competence framework available, including training programmes
202	6.3.1.2.i. Professionalisation of public administration and administrative and capacity building	Milestone	Competence framework available, including training programmes
		Instalment Amount	EUR 318 000 000,00

1.4.Fourth Instalment (non-repayable support):

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name
8	1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies	Target	Approved projects representing at least EUR 40 097 400
12	1.2.1.2.i. Increasing energy efficiency in business in the form of a combined financial instrument	Target	Approved projects representing at least EUR 108 000 000
14	1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency	Target	Award of contracts for the implementation of energy efficiency improvement projects for local government buildings and infrastructure for at least EUR 27 838 800
17	1.2.1.4.i. Improving the energy efficiency of public sector buildings, including historical buildings	Target	Notification of contract award for representing at least EUR 16 769 200
21	1.2.1.5.i. Modernisation of electricity transmission and distribution networks	Milestone	Entry into force of regulatory framework to ensure the transmission of electricity produced from RES to networks (including the use of forests and other public land for wind energy production) and to promote the development of wind energy infrastructure.
25	1.3.1.2.i. Investments in flood risk reduction infrastructure	Milestone	Construction contracts awarded for half the total number of rebuilding and renewal
35	2.1.2.2.i. National Federated Cloud of Latvia	Target	Number of platforms or systems operated by shared service providers through shared cloud services
43	2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and Regional Contact Points	Target	Number of digital transformation roadmaps issued to entities other than small and medium-sized enterprises, mid-caps and the public sector by the European Digital Innovation Hub (EDIH)
45	2.2.1.2.i. Support for the digitisation of processes in commercial activities	Target	Number of entities supported to digitise processes in commercial activity and for which the result of the digital maturity test improved, against the previous test result, after receipt of the grant and realisation of the project
47	2.2.1.3.i. Aid for business introduction of new products and services	Target	Number of projects supported
50	2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators	Target	Number of loans granted
58	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Milestone	Developing the concept of skills funds
63	2.3.1.2.i. Development of key digital skills of enterprises	Target	Number of businesses to whom the acquisition of basic digital skills has been ensured
66	2.3.1.4.i. Development of the approach to individual learning accounts	Target	Adults supported to acquire digital skills through individual learning account resources
71	2.3.2.1.i. Digital skills for citizens, including young people	Target	Number of citizens with improved digital self-service skills who have participated in technological innovation activities
75	2.3.2.2.i. Development of state and local government digital transformation skills and capabilities	Target	Public administration (state and local government) employees with advanced digital skills, including e-learning
86	3.1.1.1.i. Improvement of the network of regional and local roads	Target	Renovated or rebuilt, regional and local roads for the safe accessibility of the county administrative centres and their services and jobs and for the full functioning of the new municipalities
90	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Milestone	Completion of the assessment of local government public services, identifying shortcomings and measures to improve them
91	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Target	Number of local government employees trained
101	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Target	Number of apartments within approved projects
108	3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and related services	Target	Amount of funding under contracts concluded for the purchase of electric busses for the performance of the municipal functions and related services
113	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Signatureof contracts for ensuring access to public facilities in the buildings of public and local authorities
115	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Selection of specific target group for improving physical access to housing
119	3.1.2.2.i. Development of a forecast tool	Milestone	Completion of technical specifications for social security forecasting tool information system
133	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	The genome reference of the Latvian population has been established (Latvia’s participation in the Genome for Europe project – GoLatvia project)
139	4.1.1.2.i. Support for strengthening the health infrastructure of university and regional hospitals	Target	Achievement of budget execution as measured by overall procurement in projects improving the infrastructure of university and regional hospitals amounting to at least EUR 59 800 000 of total budget EUR 149 500 000
141	4.1.1.3.i. Support for strengthening health infrastructure of secondary outpatient service providers	Target	Achievement of budget execution as measured by overall completion of projects improving the infrastructure of secondary outpatient providers amounting to at least EUR 4 250 000 of total budget EUR 8 500 000.
145	4.2.1.r. Provision of human resources and upskilling	Milestone	New remuneration model for healthcare staff implemented
146	4.2.1.r. Provision of human resources and upskilling	Milestone	Adoption of a model for health workforce planning
153	4.3.1.1.i. Support for assessing and improving the quality and accessibility of non-hospital secondary healthcare	Milestone	Mainstreaming results of quality, availability and accessibility of non-hospital secondary care study into health policy developments
157	5.1.1.2.i. Support instrument for research and internationalization	Milestone	Cabinet Regulations adopted
160	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Milestone	Higher education reform
168	6.1.1.r. Strengthening analytics and developing data management in the field of tax administration and customs	Milestone	Entry into operation of a basket of data-based services for each segmentation group of taxpayers
172	6.1.1.1.i. Modernisation of existing analytical solutions	Milestone	Entry into operation of upgraded analytical solutions
173	6.1.1.2.i. Development of new analytical systems	Milestone	Entry into operation of new analytical systems
182	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Building permit received
193	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Target	New training programme development
195	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Milestone	Establishment of a training centre
214	6.4.4.r. IUB IT and analytical capacity building	Milestone	Upgrade of publications management system completed
215	7.1.r. Transforming the national energy sector	Milestone	Regulations establishing a framework for registering and operating energy communities
216	7.1.r. Transforming the national energy sector	Milestone	Legislation amending norms on electricity trade and consumption
219	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Milestone	Regulations governing the installation of a Battery Energy Storage System
223	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Regulations governing investments in the national electricity transmission and distribution networks
229	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	Regulations governing investments in the biomethane sector
		Instalment Amount	EUR 387 000 000,00

1.5.Fifth Instalment (non-repayable support):

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name
2	1.1.1.r. Greening the Riga Metropolitan Range Transport System	Milestone	Reform of public transport RMA
15	1.2.1.3.i. Improving municipal buildings and infrastructure by promoting the transition to renewable energy technologies and improving energy efficiency	Target	Reduction in primary energy consumption in municipal buildings and infrastructure
24	1.3.1.r. Disaster management system adaptation to climate change, rescue and rapid response services	Target	Total fire area for wild fires over the 5-year period (2020-2024)
53	2.2.1.5.i. Fostering the digital transformation of media companies	Target	Number of platforms and digital solutions created
56	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Target	Share of adults (25-64) involved in adult learning in the last four weeks prior to the survey (%)
95	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Target	Letters of intent/contracts concluded
96	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Target	Construction of industrial parks/territories where public infrastructure is developed in the regions
109	3.1.1.6.i. Purchase of zero-emission vehicles for the performance of municipal functions and related services	Target	Number of electric school buses purchased
116	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Milestone	Signature of contracts to adapt the housing of persons with disabilities
129	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Target	Unemployed, jobseekers, people at risk of unemployment with improved skills
136	4.1.1.1.i. Support for public health research	Milestone	Public health research carried out to improve public health policy planning and implementation in the field of AMR, vaccination and infectious diseases
158	5.1.1.2.i. Support instrument for research and internationalization	Target	Commitment of funding
176	6.1.2.1.i. Linking railway x-ray equipment to BAXE and use of artificial intelligence for rail freight scanning image analysis	Milestone	Railway customs control points’ scanners connected to x-ray images exchange system BAXE
180	6.1.2.3.i. Improvement of customs control of received postal items at Airport customs control point	Milestone	A line for intelligent scanned and automatic sorting/analysis of postal items introduced at the Airport customs control point
187	6.2.1.1.i. Establishment of AML Innovation Hub to improve the identification of money laundering	Milestone	An IT platform for the exchange of knowledge and documents and for the coordination of cooperation between the stakeholders
188	6.2.1.2i. Strengthening the capacity to investigate economic crime	Milestone	Progress report on implementation of the action plan is approved
189	6.2.1.2i. Strengthening the capacity to investigate economic crime	Target	Proportion of detected criminal proceedings of environmental crimes
190	6.2.1.2i. Strengthening the capacity to investigate economic crime	Target	Number of certified economic crime investigators in “Certified Anti Money Laundering Specialist (CAMS)” programme
191	6.2.1.2i. Strengthening the capacity to investigate economic crime	Target	Equipment for law enforcement officials
192	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Milestone	Entry into force of the law and other legal acts related to the justice training centre
197	6.3.1.r. Modernisation of public administration	Milestone	Review of progress in the implementation of the Plan for Modernisation of Public Administration approved
204	6.3.1.3.i. Development of the innovation ecosystem of public administration	Milestone	Entry into force of the regulatory framework in relation to the innovation eco-system
205	6.3.1.3.i. Development of the innovation ecosystem of public administration	Milestone	Ensuring the financial sustainability of the Innovation Lab
217	7.1.r. Transforming the national energy sector	Milestone	Regulation on electricity network optimisation
218	7.1.r. Transforming the national energy sector	Milestone	Regulations on biomethane transported outside the natural gas transmission and distribution systems
220	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Milestone	Contracts for the installation of a 60 MW Battery Energy Storage System and an IT solution for transmission network management
221	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Target	Battery Energy Storage System (BESS)
222	7.2.i. Security and stability of energy supply, and synchronisation with the Union grid	Milestone	IT solution for power transmission network management
230	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	Award of contracts for the construction of a regional biomethane injection point and for an IT solution for its smart management
231	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	Regional biomethane injection point completed
		Instalment Amount	EUR 258 000 000,00

1.6.Sixth Instalment (non-repayable support):

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name
3	1.1.1.1.i. Competitive rail passenger transport within the common public transport system of the city of Riga	Target	Length of electric rail lines created and existing railway upgraded for passenger transport
4	1.1.1.1.i. Competitive rail passenger transport within the common public transport system of the city of Riga	Target	Construction of battery train charging infrastructure
5	1.1.1.2.i. Environmentally friendly improvements to the public transport system of the city of Riga	Target	Zero-emission transport investments (electric buses and charging stations)
5a	1.1.1.2.i. Environmentally friendly improvements to the public transport system of the city of Riga	Milestone	Public transport infrastructure projects completed
6	1.1.1.3.i. Complete bike riding infrastructure	Target	Length of newly built or renovated cycle infrastructure in the city of Riga and Pieriga (part of Riga Metropolitan Area)
9	1.2.1.1.i. Improving the energy efficiency of multi-apartment buildings and transition to renewable energy technologies	Target	Reduction of primary energy consumption in multi-apartment buildings with improved energy efficiency
11	1.2.1.2.i. Increasing energy efficiency in business in the form of a combined financial instrument	Target	Planned GHG emission savings
18	1.2.1.4.i. Improving the energy efficiency of public sector buildings, including historical buildings	Target	Reduction of primary energy consumption in public buildings with improved energy efficiency
20	1.2.1.5.i. Modernisation of electricity transmission and distribution networks	Target	Connection points for electric vehicles charging and/or microgeneration installation
23	1.3.1.1.i. Disaster management system adaptation to climate change, rescue and rapid response services	Target	Construction of nearly 0 -energy-consumption disaster management and emergency response centres
26	1.3.1.2.i. Investments in flood risk reduction infrastructure	Target	Number of investment projects completed
30	2.1.1.1.i. Administration modernisation and digital transformation of services, including business environment	Target	Delivery of ICT solutions for modernised public administration functions (including systems)
34	2.1.2.1.i. Centralised platforms, systems and shared services	Target	Number of centralised ICT platforms and systems set up and in operation
36	2.1.2.2.i. National Federated Cloud of Latvia	Target	Number of platforms or systems operated by shared service providers through shared cloud services
39	2.1.3.1.i. Data availability, sharing and analysis	Target	Sectors for which relevant datasets are available on the national data circulation platforms, including controlled distribution platforms, geoportal or open data portals
44	2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and Regional Contact Points	Target	Number of digital transformation roadmaps issued to entities other than small and medium-sized enterprises, mid-caps and the public sector by the European Digital Innovation Hub (EDIH)
44a	2.2.1.1.i. Support for the establishment of Digital Innovation Hubs and Regional Contact Points	Milestone	Support for the digital transformation of small and medium-sized enterprises and mid-caps, as well as the public sector, by the European Digital Innovation Hubs (EDIH)
46	2.2.1.2.i. Support for the digitisation of processes in commercial activities	Target	Number of entities supported to digitise processes in commercial activity and for which the digital maturity test result improved, against the previous test result, after receipt of the grant and realisation of the project
48	2.2.1.3.i. Aid for business introduction of new products and services	Target	Number of projects supported
49	2.2.1.3.i. Aid for business introduction of new products and services	Target	Private finance attracted
51	2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators	Target	Number of loans granted
52	2.2.1.4.i. Financial instruments to facilitate the digital transformation of economic operators	Target	Private finance attracted
54	2.2.1.5.i. Fostering the digital transformation of media companies	Target	Number of projects supported
59	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Target	Piloting skills funds
61	2.3.1.r. Development of a sustainable and socially responsible support framework for adult learning	Target	Piloting the individual learning account approach
62	2.3.1.1.i. Delivering high-level digital skills	Target	Number of professionals (business, academic and public sector) and students with advanced digital skills in quantum technologies, HPC and language technologies
64	2.3.1.2.i. Development of key digital skills of enterprises	Target	Number of businesses to whom the acquisition of basic digital skills has been ensured (in line with exclusion list described in the RRP for compliance with the DNSH Technical Guidance (2021/C58/01).)
65	2.3.1.3.i. Development of a self-managed learning approach for ICT specialists	Target	Number of ICT specialists trained in a non-formal learning approach
67	2.3.1.4.i. Development of the approach to individual learning accounts	Target	Adults supported to acquire digital skills through individual learning account resources
68	2.3.2.r. Digital skills for the digital transformation of society and government	Target	Upskilling digital skills 16-74: citizens with at least basic digital skills.
72	2.3.2.1.i. Digital skills for citizens, including young people	Target	Number of inhabitants with improved digital self-service skills who have participated in technological innovation activities
73	2.3.2.1.i. Digital skills for citizens, including young people	Target	Number of municipalities with digital skills development programmes for young people
76	2.3.2.2.i. Development of state and local government digital transformation skills and capabilities	Target	Public administration (state and local government) employees who have developed digital transformation skills, including e-learning;
83	2.4.1.2.i. Broadband or very high capacity network “last mile” infrastructure development	Target	Number of households, businesses, schools, hospitals and other public buildings which have access to the broadband connections to a very high capacity network
92	3.1.1.2.i. Strengthening the capacity of municipalities to improve the efficiency and quality of their operations	Target	Number of local government employees trained
97	3.1.1.3.i. Investments in business public infrastructure for the development of industrial parks and areas in regions	Target	Creation of new jobs in the industrial parks with average salaries above the average salary in the respective economic sector
102	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Target	Number of apartments within approved projects
103	3.1.1.4.i. Establishing a financing fund for the construction of low-rent dwellings	Target	Number of apartments built
106	3.1.1.5.i. Development and equipping of educational institutions’ infrastructure	Target	Developing and equipping educational institutions’ infrastructure
114	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Target	Completion of construction to ensure access to public facilities in state and local government buildings providing
117	3.1.2.1.i. Measures to promote access to public services and employment for people with disabilities	Target	Accessibility of the housing environment for persons with disabilities ensured
120	3.1.2.2.i. Development of a forecast tool	Milestone	Development of a forecasting tool
123	3.1.2.3.i. Resilience and continuity of the long-term social care service	Target	Provision of new places for long-term care services close to family settings for 852 persons of retirement age
125	3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional disabilities	Milestone	Adaptation of building infrastructure, including promotion of environmental accessibility and energy efficiency, and improvement of the technical and material equipment
126	3.1.2.4.i. Synergistic development of social and vocational rehabilitation services for the promotion of the resilience of people with functional disabilities	Milestone	Adoption of a new standard for social and vocational rehabilitation services for the promotion of the resilience of people with functional impairments have been established and approved
130	3.1.2.5.i. Participation in the labour market of unemployed, jobseekers and people at risk of unemployment	Target	Unemployed, jobseekers, people at risk of unemployment with improved skills
134	4.1.1.r. Sustainability and resilience of a human-centred, comprehensive, integrated healthcare system	Milestone	Methodological management in the field of oncology ensured
137	4.1.1.1.i. Support for public health research	Milestone	Entry into force of amendments to legal acts aimed to improve public health policy planning and implementation in the fields of antimicrobial resistance (AMR), vaccination and infectious diseases
140	4.1.1.2.i.Support for strengthening the health infrastructure of university and regional hospitals	Target	Number of hospitals with improved infrastructure
142	4.1.1.3.i. Support for strengthening health infrastructure of secondary outpatient service providers	Target	Number of secondary outpatient providers with improved infrastructure
148	4.2.1.1.i. Support for the implementation of the human resources development system	Milestone	Simulation approach introduced in the healthcare learning process
150	4.3.1.r. Sustainability of health care, strengthening governance, efficient use of health resources, increase of the total public budget in the health sector	Target	Mainstreaming of new healthcare service delivery models as part of publicly funded healthcare services
156	5.1.1.1.i. Development and continuous operation of a fully-fledged innovation system governance model	Milestone	Publishing of a monitoring report providing information on each RIS3 area, the operation of the innovation management model and long-term financing.
162	5.2.1.r. Reform of Higher Education and Scientific Excellence and Governance	Target	Share of state-founded higher education institutions affected by governance changes
163	5.2.1.1.i. Research, development and consolidation grants	Target	Consolidation grants
164	5.2.1.1.i. Research, development and consolidation grants	Target	Academic Career Grant agreements signed
165	5.2.1.1.i. Research, development and consolidation grants	Target	In-house R & D grant agreements signed
175	6.1.2 r. Remote and centralised analysis of scanned images at Customs Control Points	Target	Share of cargo images scanned by Latvian customs control points analysed remotely and centrally
177	6.1.2.1.i. Linking railway x-ray equipment to BAXE and use of artificial intelligence for the analysis of rail freight scanning images	Milestone	Rail Freight scanned image analysis platform introduced
183	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	The cycle of the enclosing structures has been completed
185	6.1.2.4.i. Creation of infrastructure for the performance of control services in Kundziņsala	Milestone	Cargo control x-ray equipment installed
194	6.2.1.3.i. Establishment of a single training centre for the development of the qualifications of judges, court staff, prosecutors, assistant prosecutors and specialised investigators (interdisciplinary matters)	Target	Implementation and adoption of training programmes
199	6.3.1.r. Modernisation of public administration	Target	Share of direct public administration human resources receiving accounting and human resource management services centrally.
201	6.3.1.1.i. Open, transparent, fair and accountable public administration	Target	Number of public administration employees trained in at least one of the programmes
203	6.3.1.2.i. Professionalisation of public administration and administrative and capacity building	Target	Number of public administration employees trained in at least one of the programmes
207	6.3.1.4.i. Growth of non-governmental organisations to strengthen social security representation and monitor public interests	Target	Beneficiaries of the support programme
212	6.4.3.r. Development and implementation of a professionalisation strategy	Milestone	Entry into force of legal acts implementing centralization of procurement
224	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Target	Additional electricity grid capacity
225	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Completion of substations’ construction works
226	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Target	Overhead electricity network converted into cable network
227	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Smart distribution network management solution
228	7.3.i. Upgrading, digitalising and securing the electricity transmission and distribution networks	Milestone	Studies and environmental impact assessment
232	7.4.i. Increasing the uptake of sustainable biomethane	Milestone	IT solution for the management of the new regional sustainable biomethane injection point (BIP)
		Instalment Amount	EUR 387 244 522,00

SECTION 3: ADDITIONAL ARRANGEMENTS

1.Arrangements for monitoring and implementation of the recovery and resilience plan

The implementation of the plan shall be coordinated by the Ministry of Finance.

The Ministry of Finance shall perform the functions of the Managing Authority; these shall be separated from its other functions, including those of the Audit Authority.

The Ministry of Finance as the Managing authority is in charge of the development of the management and control system of the plan, coordinating the reporting process during the implementation of the plan (a half-yearly report on the compilation and progress of the plan) and other functions. The Central Financing and Contract agency (CFCA) has been designated as an intermediary body delegated with responsibilities for implementation, control and monitoring of the plan.

The Audit Authority, which is independent from the other departments of the Ministry of Finance in its planning, auditing, reporting and opinion, shall develop a plan audit strategy and prepare a summary of the audits carried out to accompany the request for payments. The sectoral ministries and the State Chancellery shall perform the responsibilities related to the implementation of the plan

The necessary administrative resources for the management and monitoring functions of the plan shall be provided within the existing resources of responsible institutions, making use of additional human resources needed. The involvement of the authorities in the implementation of the plan takes place within the defined framework of their core activities and functions. Financing of sectoral ministries for the implementation of the plan shall be allocated in accordance with the relevant national procedures for the financing from the state budget.

A separate budget programme for Recovery and Resilience plan-related financial flows is provided in the state budget, which ensures the traceability and separability of the financial flows.

2.Arrangements for providing full access by the Commission to the underlying data

The Ministry of Finance, as the central coordinating body for Latvia’s recovery and resilience plan and its implementation, is responsible for overall coordination and monitoring of the plan. Data related to the implementation and monitoring of the plan shall be stored in the existing EU funds management and control system KPVIS. KPVIS shall be adapted to the requirements under Regulation (EU) 2021/241 for data collection, progress reports and payment requests, including to collect indicators and other information necessary to demonstrate and report the achievement of milestones and targets. KPVIS shall be used by all actors involved in the implementation of the plan, including beneficiaries and monitoring authorities between the CFCA, line ministries and Audit Authority and others. Sectoral ministries shall continuously manage and update information in the KPVIS on the progress and results of the plan, on the checks carried out, controls, including deficiencies identified and all corrective actions taken.

In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of the relevant agreed milestones and targets in Section 2.1 of this Annex, Latvia shall submit to the Commission a duly justified request for payment of the financial contribution. Latvia shall ensure that, upon request, the Commission has full access to the underlying relevant data that supports the due justification of the request for payment, both for the assessment of the request for payment in accordance with Article 24(3) of Regulation (EU) 2021/241 and for audit and control purposes.

(1) Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
(2) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
(3)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(4) This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
(5) Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
(6) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
(7)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(8) This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
(9) Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
(10) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
(11)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(12) This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
(13) Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
(14) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
(15)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(16) This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
(17) Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
(18) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
(19)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(20) This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
(21) Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
(22) Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.
(23)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(24) This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.
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