INVESTMENT COORDINATION

COUNCIL AT WORK

Valdis DombrovskisPrime Minister of Latvia

June 30, 2011

▌ Large and Strategically Significant Investment Project Coordination Council was established on August 10, 2010

▌ In 2010 and 2011 the council has held 8 meetings

▌ The council is chaired by Prime minister, involves Ministers of Economics, Finance, Transport, Education and Science, Foreign affairs, Environmental Protection and Regional development

▌ On ad hoc basis the representatives of municipalities, business organizations and NGOs are participating

▌ Secretariat functions performed by Investment and Development Agency

Investment Coordination Council:Brief Overview

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▌ Coordinate activities of different branches of government, municipalities and network companies in promoting the implementation of local and foreign investment projects

▌ Improve efficient use of public resources in supporting investment projects, coordinate application of support instruments and select most appropriate solutions

▌ Provide swift response to investor’s proposals and effective troubleshooting in case of problems

▌ Follow up completed projects and consider suggestions for improving procedures and fine-tuning support

Investment Coordination Council:Main Objectives

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▌ The very existence of the Council is a positive signal for investors, large projects receive adequate treatment

▌ After considering only few cases the cooperation between ministries and municipalities has significantly improved

▌ The format of the Council ensures rapid information exchange and effective enforcement of decisions

▌ Elimination of earlier observed situation where unclear division of responsibility between institutions could result in unclear project criteria and long decision period

Investment Coordination Council:Achievements

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▌ Suggestions on improving procedures for:▌ Allocation of EU funds▌ Granting construction permits▌ Connecting to electricity grid▌ Project development in sea-bed (for wind energy)

▌ Discussions of investment attraction strategy and selection of investment projects to be supported

▌ Discussion of implementation of FICIL suggestions

▌ Specific cases: Cemex, Saint-Gobain construction products, development of Eurasian logistics corridor

Investment Coordination Council:Considered Issues

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▌ Consistent implementation of Stabilization Plan,the goal of introducing euro in 2014

▌ Successful return to international financial markets in June 2011 (issue of 10year government bonds), completion of IMF&EC program by end of 2011

▌ Last phase of fiscal consolidation in 2011

▌ Stability of tax rates, avoiding revenue measures in 2012

▌ Implementing action plan to fight shadow economy

▌ Utilizing the opportunity to decouple political processes from non-transparent business interference

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Investment Climate Outlook

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Valdis Dombrovskis, Prime Minister of Latvia

36 Brīvības blvd., Rīga, LV-1520 www.mk.gov.lv

Thank you!