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Cooperation Programme document Latvia – Lithuania Programme 2014-2020

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Latvia – Lithuania Programme

2014-2020

Cross-border Cooperation Programme

under the European Territorial Cooperation (ETC) objective

17 July, 2014


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Table of Contents

SECTION 1: STRATEGY OF THE PROGRAMME ...................................................... 4

1.1. Strategy for the cooperation programme's contribution to the Union strategy for smart, sustainable and inclusive growth and to the achievement of economic, social and territorial cohesion ...................................................... 4

1.2. Justification of the financial allocation .................................................. 21

SECTION 2: DESCRIPTION OF THE PRIORITY AXES ............................................ 25

2.1. Priority Axis 1: Sustainable and clean environment through cooperation .. 25

2.2. Priority Axis 2: Improvement of labour mobility and employment............ 31

2.3. Priority Axis 3: Social inclusion as a precondition of territorial development ............................................................................................................. 37

2.4. Priority Axis 4: Improved quality of living through efficient public services and administration ................................................................................... 41

2.5. Performance framework ..................................................................... 44

2.6. Categories of intervention .................................................................. 45

2.7. Planned use for the Technical Assistance budget ................................... 48

SECTION 3: FINANCING PLAN .......................................................................... 50

SECTION 4: INTEGRATED APPROACH TO TERRITORIAL DEVELOPMENT ................. 53

SECTION 5: IMPLEMENTING PROVISIONS FOR THE COOPERATION PROGRAMME ... 55

5.1. Identification of the relevant authorities and bodies .............................. 55

5.2. Procedure for setting up the Joint Secretariat ....................................... 56

5.3. A summary description of the management and control arrangements .... 57

5.4. The apportionment of liabilities among the participating Member States in case of financial corrections imposed by the Managing Authority or the European Commission ............................................................................................ 62

5.5. Use of the Euro ................................................................................. 62

5.6. Involvement of partners .................................................................... 62

SECTION 6: COORDINATION ........................................................................... 64

SECTION 7: REDUCTION OF ADMINISTRATIVE BURDEN FOR PROJECT PARTNERS .. 66

SECTION 8: HORIZONTAL PRINCIPLES .............................................................. 68

8.1. Sustainable development ................................................................... 68

8.2. Equal opportunities and non-discrimination .......................................... 68

8.3. Equality between men and women ...................................................... 69

ANNEX 1 Tables and figures ............................................................................. 70

ANNEX 2 Document list .................................................................................. 72

ANNEX 3 Action Plan for calculation of baselines and targets for result indicators ... 73

ANNEX 4 Annual instalments of the Technical Assistance co-financing ................... 76


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ABBREVIATIONS USED

AA – Audit Authority

CA – Certifying Authority

ERDF – European Regional Development Fund

ESF – European Social Fund

ESI Funds - European Structural and Investment Funds

ETC – European Territorial Cooperation

EU – European Union

Europe 2020 – European Union’s strategy for smart, sustainable and inclusive growth

EUSBSR - European Union Strategy for the Baltic Sea Region

FLC – First Level Control

GoA - Group of Auditors

JPC – Joint Programming Committee

JS – Joint Secretariat

Long-term development documents – National Reform Programme (for Latvia abbreviation used for document ‘National Reform Programme for Europe 2020 implementation’; for Lithuania – ‘National Reform Agenda’)

MA – Managing Authority

Medium-term development documents – for Latvia abbreviation used for document ‘National Development Plan 2014-2020’; for Lithuania – ‘2014-2020 National Progress Programme’

MC – Monitoring Committee

National coordination bodies – National sub-committees established in Latvia and committee in Lithuania for coordination of ETC programmes

NGO – Non-governmental organisation

Programme - Latvia and Lithuania Cross-border Cooperation Programme 2014-2020

Regulation (EU) No 1299/2013 - Regulation of the European Parliament and of the Council on specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal

Regulation (EU) No 1303/2013 – Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No 1083/2006

TA – Technical Assistance

TO – Thematic objective

2007-2013 Programme - Latvia and Lithuania Cross-border Cooperation Programme 2007-2013


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SECTION 1:

STRATEGY OF THE PROGRAMME

1.1. Strategy for the cooperation programme's contribution to the Union

strategy for smart, sustainable and inclusive growth and to the

achievement of economic, social and territorial cohesion

The Latvia – Lithuania Cross-border Cooperation Programme 2014-2020 has been prepared jointly by Latvia and Lithuania. The Ministry of Environmental Protection and Regional Development of the Republic of Latvia and the Ministry of Interior of the Republic of Lithuania have been following the principle of partnership and established a Joint Programming Committee for developing and preparing the Programme.

Latvia and Lithuania have built a robust cooperation relationship during the implementation of the 2007-2013 Programme. The implementation of the Programme will lead this cooperation into a new level by providing key contributions to the European Union’s strategy for smart, sustainable and inclusive growth (Europe 2020) and the achievement of economic, social and territorial cohesion, with a focus on support fields that match the development needs and interests of Programme regions.

The Programme objective is to contribute to the sustainable and cohesive socio-economic development of the Programme regions by helping to make them more competitive and attractive regions for living, working, and visiting.


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1.1.1. Programme area: geographical coverage and population

The area of the Programme includes the following NUTS III regions:

Latvia: Kurzeme, Zemgale, Latgale

Lithuania: Klaipėda, Telšiai, Šiauliai, Panevėžys, Utena, Kaunas counties.

The regions involved in the Programme cover the Latvian and Lithuanian border regions, as well as Kaunas county which has significant cooperation experience of implementing projects during the 2007-2013 Programme.

Please see a map of the Programme Area in Annex 1 (Figure 1).

The Programme area includes Southern Latvia and Northern Lithuania. It covers a territory that extends from the Baltic Sea in the West to the external border of the EU with Russia and Belarus in the East. The eligible area covered by the Programme is 80 160 km2, of which 38 890 km2 is in the territory of Latvia and 41 270 km2 is in Lithuania. It shares a 588 km land border between the two countries. The territory covered is predominantly rural. It includes forests and a significant amount of Baltic Sea coastline. The region also contains important strategic transport routes (Via Baltica and Via Hansaetica), as well as the ports of Liepāja, Ventspils, and Klaipėda, plus a number of smaller ports.

The total population of the Programme area is 2.6 million inhabitants (comprising approximately 800 thousand people in Latvia and 1.8 million in Lithuania [2012 data]). An overall decrease of approximately 400 000 people is estimated to have occurred in the Programme area since 2007. Depopulation trends have been similar both in Latvia and Lithuania. The reported population decrease in the Programme area from 2009 to 2012 for Latvia (7.4%) was slightly higher than in Lithuania (7.2%).

Population density in the Programme area is relatively low. The average population density in the Programme area is 32 inhabitants per km2. However, in Latvia it is significantly lower, at 21 inhabitants per km2. In Lithuania the figure is 43 inhabitants per km2.

The area contains the following larger urban settlements. In Latvia: Ventspils, Liepāja, Jēkabpils, Jelgava, Rēzekne and Daugavpils. In Lithuania: Klaipėda, Panevėžys, Šiauliai, Telšiai, Utena and Kaunas. Regional differences in population density of the Programme area depend mainly on whether a region has a large settlement or regional centre in the territory. Latvian regions are quite similar as density varies only from 20 to 23 inhabitants per km2. Bigger differences are found in Lithuania where densities can range from 21 inhabitants per km2 in Utena county to 42 inhabitants per km2 in Klaipėda county, and 73 inhabitants per km2 in Kaunas county. Direct correlations exist between population density and the socio-economic development of the region (i.e. the greater the population density the easier it is to ensure access to infrastructure and services and vice versa for lower population densities).

The Programme Strategy (Section 1.1.) is divided into thematic subtopics. These provide brief overviews of the current socio-economic situation in the Programme area.


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The overview of the socio-economic situation is described in selected subtopics, which explain the Programme area’s main social and economic challenges. Opportunities for cross-border cooperation are described for each of the subtopics. Analysis of the socio-economic situation was carried out taking into account the potential scope of the Programme, possible impact of the cross-border cooperation and common needs and problems. Therefore the subtopics conclude with a list of challenges and opportunities that will be tackled by the Programme. This is also the basis for the choice of thematic objectives (TOs), which are described as Priority Axes in Section 2.

1.1.2. Employment and labour mobility

Latvia and Lithuania share a mix of similar and differing economic development trends. Latvia’s economy is concentrated in the capital city of Rīga (which in 2010 produced more than 50% of national GDP), but the Programme regions combine 26% of the national GDP. In Lithuania, while much of the economy is concentrated in the capital city of Vilnius, there are several development centres that are spread throughout the country (Vilnius county with 38% of the national GDP, Kaunas county with 19%, Klaipėda county with 12% [Eurostat]). In total, the Programme regions combine 53% of the two countries’ overall national GDP.

Employment

Economic development is also influenced by unemployment levels in the Programme area. Since 2010, employment has recovered in general throughout the Programme area. Nevertheless, the Programme area’s unemployment rate is still higher than national and EU averages. Slight differences occur on a regional level with the lowest unemployment rates being reported in Klaipėda county, Kurzeme, Telšiai county and Kaunas county.

Annex 1 (Table 1) provides data concerning unemployment rates in the Programme regions (%).

Despite positive trends, long-term unemployment in the Programme area is higher than in the EU. This mirrors national trends and indicates problems related to skills gaps that prevent and hinder unemployed people from reacting positively to labour market changes. Limited employment opportunities exacerbate the risk of structural unemployment (e.g. in 2012 the long-term unemployment rate in Latvia was 7.8% and in Lithuania it was 6.6%). While this situation is improving, rates indicate serious challenges in the Programme area as long-term unemployment rates remain far behind pre-crisis levels (in 2008 the long-term unemployment rate in Latvia was 2.1% and 1.1% in Lithuania). This matter represents a major challenge for the Programme and highlights a clear need to lessen and overcome skill mismatches in order to supply the labour market’s actual needs.

The Programme regions also face high youth unemployment (e.g. the average rates reported for 2012 were 28.5% in Latvia and 26.7% in Lithuania. Rates were even higher in the Programme regions). Hence, it remains important to create opportunities for young people to obtain skills that are relevant for the labour market. This is important not only for existing participants of the labour market, but also for young graduates and students entering the labour market. Work


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possibilities and employment around the border regions for young people can be hampered by a combination of limited access to information about employment possibilities, and also limited physical access to workplaces from remote areas.

The Programme has recognised the need to focus on increasing labour mobility and plugging skills gaps by assisting peoples’ ability to obtain skills that match labour market needs.

Economic activity and employment in the regions are affected by the numbers of small and micro enterprises, as well as levels of business creation and self-employment (small and micro-enterprises predominate and represent the biggest share of the Programme area’s business sector).

In the Programme area, state-supported business development systems are operating (providing services for both start-ups and existing enterprises). Nevertheless, statistics reveal that additional business support measures are necessary in the regions to stimulate employment and create new employment opportunities. The Programme is an appropriate tool for creating new and improving existing cross-border business support measures in its territory.

In the Programme area, the average number of businesses is lower and micro-sized firms are less significant to the economy than in the EU (92.2% of all businesses). The number of micro-enterprises in Latvia comprises 87.8% of all businesses and in Lithuania the figure is 87.9% of all businesses. Competitiveness of regional economies also remains low. Furthermore, self-employment rates (as a percentage of total employment) are below the EU average (15% in 2011 [Eurostat]), being 9% in Lithuania, and 10% in Latvia.

The registration of new enterprises has experienced positive trends and the economy is slowly recovering. There has been a 20% increase of newly registered enterprises in the Programme area from 2010 to 2012 (21% in Latvian regions and 19% increase in Lithuanian regions). However, these trends in the Programme area are not as positive as those at national levels (e.g. Latvia as a whole had a 26% increase in newly registered enterprises and in Lithuania the figure was 35%).

What is more, in the Programme area (from 2010 to 2012) numbers of enterprises removed from the register also decreased slower than on national level. From 2010 to 2012 in Latvian regions number of enterprises removed from the register decreased by 33% (while the overall decrease in Latvia was 50%). In Lithuanian regions there was no significant change in the number of enterprises removed from the register (increase of 0.1%; while the overall decrease in Lithuania was 10%). In addition, survival rates of enterprises in Latvia and Lithuania (especially in second and later years of existence) are below the EU average.

Cross-border entrepreneurship contributes to economic development of the Programme regions and therefore cross-border business support will provide opportunities for businesses to access new markets, resources, labour, and technology. It is also important to promote networking between enterprises and communicate the benefits of knowledge exchange. Businesses involved in cross-border entrepreneurship need information on: how to attract investments; how to understand legal and practical requirements of labour recruitment; how to find appropriate partners; and how to acquire necessary legal advice. In addition,


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improving communications and utility infrastructures is a pre-requisite for facilitating the development of productive cross-border business activity.

Summarising, the Programme’s key task centre’s on a need to create additional employment opportunities through cross-border cooperation. This will involve providing opportunities for people to obtain the skills that are required by the labour market. It also includes supporting business creation and improving the entrepreneurship environment, promoting self-employment, as well as facilitating cooperation between businesses and educational organisations.

Labour mobility

Physical limitations, such as reduced mobility, are considered to be a very strong impediment to regional development. The Programme area is covered with a basic network of transport infrastructure, connecting medium and large settlements, but the number of connection links inside and across the regions between smaller settlements is limited. Also the quality of cross-border road infrastructure is low and affects regional development as it impacts unfavourably on the accessibility of jobs/employment places for local inhabitants, and economic activity.

Access to materials and facilities can take longer and be more costly and employee mobility is another factor that can be adversely affected by transport infrastructure limitations. Four main cross-border roads along the 588 km border between Lithuania and Latvia ensure transport links between key economic centres (Liepāja – Klaipėda; Jelgava – Šiauliai; Bauska – Panevėžys and Daugavpils – Utena). These strategic sections are rather distant and do not allow timely connection between smaller and regional towns.

Three specific areas of cross-border road sections (with a continuous road connecting both sides of the border) have been identified by Latvia and Lithuania as priorities for reconstruction by the Programme to improve cross-border mobility. All selected sections are evenly spread across the cross-border area. Road reconstruction will have a direct positive impact on labour mobility as it will improve links between key regional towns across the border, thereby ensuring easier access to jobs and employment opportunities, as well as improved access to services.

Annex 1 (Figure 2) provides a map locating the cross-border road sections that are to be reconstructed with support from the Programme.

Road section No 1 (see Annex 1, Figure 2) has regional importance as it connects Bauska city (10 060 inhabitants [2011]) in Latvia with Lithuania’s regional road network, which enables access to the nearby regional towns of Pasvalys (7756 inhabitants) and Joniškis (9900 inhabitants [2012]).

Road section No 2 (see Annex 1, Figure 2) ensures connection to the nearby regional centre of Jēkabpils city (24 608 inhabitants [2011]) in Latvia and regional roads network in Lithuania, which enables access to regional towns such as Biržai (11 903 inhabitants), Rokiškis (13 844 inhabitants) and Kupiškis (6980 inhabitants)

Road section No 3 (see Annex 1, Figure 2) connects Grobiņa with Mažeikiai. The road connects regional centres and is a significant transport link between Mažeikiai city (36 278 inhabitants) in Lithuania and Liepāja city (82 413 inhabitants) in Latvia.


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The aforementioned analysis identifies the main challenges involved with employment and labour mobility (taking into account the actual needs, the Programme’s scope, and the potential for cross-border cooperation). Programme aims have been agreed related to these challenges.

The Programme aims to:

- support cross-border entrepreneurship, self-employment and provide indirect business aid for increased economic activity (including infrastructure necessary for cross-border cooperation);

- create new opportunities for people to obtain skills required by the labour market;

- promote cross-border employment and facilitate information exchange on job demands and required skills;

- improve cross-border road sections referred to above in order to increase labour mobility, as well as accessibility to services.

1.1.3. Cultural and natural heritage, environment

Cultural and natural heritage

Development of cultural and natural heritage services and objects offers useful and effective opportunities for harnessing tourism potential in ways that ensure sustainable management and preservation of important regional resources. Such approach is acknowledged by the Programme regions’ development strategies that highlight the potential of cultural tourism and natural heritage as drivers for local development and economic diversification.

In general there is a lack of comparable data at regional level in both countries regarding the use of cultural and natural heritage. However, the available statistical indicators point out several trends. While between 2009 and 2012 the number of visitors accommodated in the Programme area increased by an annual average of 11% over this four year period, the Programme area is still under-developed and is not fully capitalising on potential opportunities from cultural and natural heritage services and products.

The Programme regions also are characterised by a general slower growth in these sectors than national growth levels. All Programme regions (except Kaunas and Zemgale) registered lower average annual growth (2009 – 2012) of accommodated visitors than respective country averages. However, it should be noted that the Programme regions are quite different. Two Lithuanian regions (Kaunas and Klaipėda) and one Latvian region (Kurzeme) in 2012 accounted for almost 75% of all visitors accommodated in the Programme area.

A positive annual growth rate for visitors accommodated in the Programme area was recorded between 2009 and 2011. However, starting from 2012, data reveals negative trends as annual growth of visitors accommodated in the Programme area has decreased by 6%. Kurzeme in Latvia suffered more than a 10% decrease, while an increase of less than 3% was noted in Lithuania’s Panevėžys county, Šiauliai county and Utena county. The Programme expects that its support for natural and cultural heritage projects will help to sustain and boost visitor


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interest in the Programme area. Results will aim to contribute to a positive trend of increased numbers of tourists and visitors in the regions.

In relation to the natural heritage, the Programme is planning to focus on development of natural heritage objects and services in the Programme regions, as well as those objects and services that are at risk of degradation (including by human impacts). These are to include natural sites with tourism potential, natural and historical landscapes and monuments in rural and urban areas, parks and other natural heritage sites.

Cultural heritage’s potential will be utilised to create a more favourable living environment in the regions (which is one of the preconditions for sustainable regional development).

In the Programme area there is a significant amount of cultural heritage objects, as well as strong cultural ties and connections that will be further utilised by institutions. In both countries, the system for registering and monitoring cultural heritage is established and managed by respective government bodies (i.e. Latvia’s State Inspection for Heritage Protection, and Lithuania’s Department of Cultural Heritage).

Some of the most visited sites in the both countries are located in the Programme area. A few examples include: Rundāle castle in Zemgale, which is one of the most outstanding architectural monuments in Latvia; Aglona basilica in Latgale is one of the biggest centres of Baltic Catholicism and hosts many art objects; the Curonian Spit is a UNESCO World Heritage Site in Klaipėda County which is an outstanding example of a landscape of sand dunes under constant pressure from natural forces; and Aukštaitija National Park is the oldest of Lithuania’s five national parks.

Cultural heritage objects in the Programme area are very diverse in terms of their significance and potential. They range from very local sites (like historical cemeteries or castle hills with limited accessibility) to sites and objects with regional and national importance (like historical castles, architectural monuments, historically significant art collections, etc.). Hence the following elements of cultural heritage are therefore considered as a priority for cross-border cooperation in the Programme: cultural sites with potential for visitors; monuments; museums; historical preservation; art and architectural preservation; and digital preservation of cultural heritage.

A significant number of organisations are involved in working with cultural heritage and, via cooperation, are enhancing the quality and accessibility of cultural heritage products and services. In addition, cross-border cooperation will contribute to conserving and revitalising cultural and natural heritage for future generations and will make the sites more accessible to the public.

Moreover, Latvian and Lithuanian cross-border regions face a number of joint challenges (e.g. necessity to improve cultural and natural heritage objects, joint promotion and management, etc.) that are more efficiently tackled by cross-border approaches.


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Summarising, a main challenge in the Programme area relates to capitalisation of under-used potential of cultural and natural heritage, as well the need for sustainable management measures. Joint environmental resources

The Programme area is characterised by a rather clean natural environment. Biodiversity is relatively rich and pollution is normally limited to larger cities.

Environmental conditions in the Programme area are affected by agriculture, industry and services. These three key economic areas are mostly dependent on access to natural resources such as land, water and raw materials. Some differences exist among Programme regions. In Zemgale, agriculture forms up to 14.2% of gross added value and the figure is 9.3% in Kurzeme (in comparison, Latvia’s overall agricultural sector is 5% [2011]). In Lithuanian regions, the impact of agriculture to gross value added is at least twice as big as in the country in general (e.g. 3.8% in Lithuania, with two exceptions being Kaunas and Klaipėda counties with 3.2% and 2.4% respectively). One of the main threats to biodiversity is large agricultural mono-farming (growing of monocultures).

The situation is similar with industry. In Lithuanian regions the impact on industry in terms of gross value added (all regions above 24%, with 33.7% in Telšiai and 33.7% in Utena) is bigger than in Latvia (from 20.3% in Latgale to 27.3% in Zemgale). Development of municipal areas, industry and agriculture can not only reduce natural areas and alter land use pattern, but these can also have an influence on the environment. Land degradation, decreases in natural soil fertility levels, and reduction of biodiversity can all result from such developments.

Both countries share significant natural resources in the Programme area. The Programme area includes six national parks. These are, in Lithuania: Aukštaitija national park, Žemaitija national park and Kuršių Nerija national park; in Latvia: Ķemeru national park (partially), Rāznas national park and Slīteres national park.

In the Programme area there are 392 NATURA 2000 territories including nature reserves, restricted areas, nature parks, marine protected areas, protected landscape areas, nature monuments and micro-reserves.

The number of protected areas in the Programme territory is even larger, as not all of them are classified as NATURA 2000 territories. The Programme area also includes a number of regional parks, seashore and resorts as well as nature reserves established for protection and research of the landscape due to their scientific and historical value.

In order to ensure preservation of the nature heritage, restrictions have been set on some forms of development actions in the protected areas. These vary from minor restrictions in landscape areas to stronger controls in nature reserves. However it is acknowledged that the level of understanding about the importance of environmental protection and sustainable use of protected territories is insufficient and should be increased for officials and among wider public.

The Programme territory includes four river basins (Nemunas, Venta, Lielupe and Daugava river basins) as well as a number of smaller rivers. Acknowledging the importance of preventing water resources from pollution, both countries are


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members of the United Nations Organisation/EEC Convention for Cross-border watercourse and international lakes protection and utilisation (17.03.1992), and share the opinion that sustainable and joint management solutions for preventing pollution in cross-border rivers is needed.

The core problems of the Baltic Sea coast relate to pollution from chemical materials, erosion of coastal areas and waste landfills. The quality of Baltic Sea coastal waters is of great significance for the development of tourism and fisheries in the Programme area.

Member States on national level have dedicated significant amounts of EU funding to address environmental issues such as waste treatment and water supply infrastructure. The Programme therefore aims to focus on local challenges that are most efficiently tackled by cross-border cooperation. The territorial approach can be very effective at dealing with pollution risks. It also allows maximising added value when planning and carrying out infrastructure projects. It helps to ensure a balance between environment and development, encouraging more harmonised and sustainable actions on both sides of the border.

As evidenced by the 2007-2013 Programme, joint environmental risk management actions have proved to be an effective solution to various problems including improved safety of residents and visitors. Coordinated approaches have also facilitated synergies and cost efficiencies in other environmental management fields such as decreased pollution from hazardous and/or harmful combustion products and other toxic substances. Cross-border cooperation has helped to improve response times to incidents and extreme situations, as well as improved the organisation of fire and flood protection measures.

Summarising, a main issue to be tackled in the Programme area is a lack of sustainable management solutions concerning joint environmental resources (protected areas, river basins, impact of industry and agriculture, environmental risk management and prevention, etc.).

Improving municipal environments

Programme regions in both countries are less economically and industrially developed than capital cities. Approximately 40% of inhabitants of the Programme territory are living in 10 main urban settlements. These are, in Latvia: Daugavpils, Jelgava, Jēkabpils, Liepāja, Rēzekne and Ventspils; in Lithuania: Kaunas, Klaipėda, Panevėžys and Šiauliai. However a number of smaller municipalities in the Programme area are also significant to regional development.

In addition to the socio-economic issues noted in section 1.1.2, municipal zones can also suffer from environmental problems. There are number of territories in the Programme area that have previously been planned, used or built-up for economic activity, but currently are partially or fully abandoned and cause environmental problems. These problems can affect the immediate area as well as neighbouring households.

This is evidenced by statistical data on households that have reported environmental concerns. In five Programme regions (Kurzeme and Zemgale in Latvia; Klaipėda, Telšiai and Kaunas in Lithuania) registered percentage of


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households facing environmental problems (i.e. pollution and other environmental degradation) is higher than national averages.

In Latvia, whilst the overall percentage of households facing environmental problems (i.e. pollution, grime and other environmental degradation) has decreased from 28.7% in 2010 to 21.6% in 2012, the regions with more developed manufacturing and industry (Ventspils and Liepāja in Kurzeme, Dobele and Jelgava in Zemgale) registered a ratio above the national average (Kurzeme – 27.5%, Zemgale 25.4%). In Lithuania the overall percentage of households facing environmental problems (i.e. pollution and other environmental degradation) in the regions has increased from 12% in 2012 to 15% in 2012. The regions with more developed manufacturing and industry (Klaipėda county with 27%, Telšiai county with 17% and Kaunas county with 18%) registered a ratio above the national average.

Cross-border cooperation shall thus be used to provide added value by improving municipal environments through infrastructure planning and experience exchanges in best practices. The knowledge transfer processes will concentrate on sustainable development of problematic areas and establishing sustainable infrastructure.

Summarising, the main issue to be tackled in the Programme area relates to under-developed territories that suffer from urban/municipal environment risks, including visual and structural degradation and other hindrances to economic development. The Programme focuses on supporting improvements of territories where environmental problems impede economic development, including strategic investments in urban and municipal areas that have a potential for cross-border business development.

The aforementioned analysis identifies the main challenges involved with cultural and natural heritage and the environment (taking into account the actual needs, the Programme’s scope, and the potential for cross-border cooperation). Programme aims have been agreed related to these challenges.


- support joint development and use of tools for sustainable management of existing cultural and natural heritage objects, including development of sustainable products and services based on cultural and natural heritage;

- create more efficient and joint management of environmental resources and associated risks, including investments in infrastructure and equipment;

- improve the municipal environment, especially focusing on sites and territories with environmental problems that impede economic development.


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1.1.4. Social inclusion and combating poverty

Social services and social inclusion

While the Latvian and Lithuanian economies are recovering from the global economic crisis, poverty and social exclusion still affect a significant proportion of the population in Programme area.

From 2008 to 2011 there has been a notable increase of people either under the risk of poverty or social exclusion (increasing from 33.8% to 40.1% in Latvia, and from 27.6% to 33.4% in Lithuania). When comparing data in regions participating in the Programme with the EU average, a significant gap is visible.

However, social exclusion is a broader concept than poverty, encompassing not only insufficient level of income, but also inability to participate adequately in economic, social, political and cultural life. Various indicators reveal that economic and social pressures on inhabitants in the Programme area are well above EU averages (confirmed by social exclusion indicators such as inability to heat homes adequately or experiencing arrears in utility bills and mortgage or rent payments).

Preventing social exclusion is one of the priorities indicated in Latvian and Lithuanian medium-term development documents. It is also considered a common challenge by regional development plans targeted at improving quality of life through improved social services. These plans support a wide range of social inclusion measures including improvement of infrastructure.

In the Programme area, services by social workers, social care services, as well as social and occupational rehabilitation organisations are provided by the state and municipal institutions to people who live in poverty or who are in other social risk situations. However, due to a lack of resources and capacities, these services in the Programme area are still under-developed and need to be improved in order to ensure their accessibility, and that their availability is sufficient.

Sharing existing experience concerning the provision of social services and social integration of socially excluded persons through cross-border cooperation will add value to the development of more efficient solutions that can be designed to meet the particular needs of socially excluded people in a specific area. In the field of social services and inclusion, cooperation can often lead to significant synergies across borders (in addition to actions funded on national level), thereby enabling the improvement of these services. Cross-border cooperation will be used to help disseminate and develop new solutions in both countries in collaborative ways. Investments in infrastructure, as well as developments in new social services will improve general quality of life in the Programme area.

Regeneration of deprived urban and rural communities

Main statistical indicators on economic development highlight that the Programme area remains under-developed from an economic perspective. For example average gross salary in the Programme regions is below national averages (excluding Klaipėda county) and unemployment rates in the regions are above (excluding Kurzeme, Klaipėda and Kaunas county) national averages.


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Social and material deprivation of the communities is characterised by indicators measuring levels of economic stress and inability to afford certain goods or services (e.g. ability to pay rent, mortgage or utility bills; afford an annual holiday away from home; enjoy common consumption goods) and to cover unexpected expenses. Material deprivation indicators confirm that in the Programme area a number of territories and communities face serious deprivation risks.

Social inclusion is a complex challenge, described not only by necessity to tackle material deprivation, but also facing problems such as unemployment, poor skills, low incomes, poor housing and living conditions, municipal environmental problems (see analysis in section 1.1.3) and low social participation. Deprived territories and communities also often experience poor public infrastructure that can create socially excluded areas when combined with concentrations of material poverty, low economic inactivity, crime and other indicators. This is visible also in the Programme area (see analysis in section 1.1.2).

As the Programme regions face both deprivation and exclusion problems, the Programme aims to continue supporting social inclusion actions and improvements of small infrastructure to improve living conditions in the municipalities and reducing the number of households facing various aspects of social and material deprivation. It is planned to focus cross-border co-operation actions at urban and rural community level to: avoid further deprivation problems; encourage social participation; and improve public infrastructure in communities and territories.

Using small-scale cross-border activities can help local communities to exchange best practices experiences in social issues and build up networks in education, culture, sport, and leisure activities. Improvement of public infrastructure in deprived communities and territories, as well as exchanging practices in infrastructure planning, can also contribute to halting further deprivation in local communities.

The aforementioned analysis identifies the main challenges involved with social services and inclusion (taking into account the actual needs, the Programme’s scope, and the potential for cross-border cooperation). Programme aims have been agreed related to these challenges.


- improve assistance and services that lead to social inclusion of socially disadvantaged groups, including development and modernisation of infrastructure.

- strengthen local communities in the Programme area through small-scale social cooperation and improvement of local infrastructure in order to avoid further deprivation and minimise social exclusion risks.


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1.1.5. Public services

The Programme regions are characterised by close proximity of cities and municipalities across the borders (Klaipėda to Liepāja – 97 km; Jelgava to Šiauliai – 87 km; Daugavpils to Utena – 78 km; etc.). Cross-border cooperation aimed at combating cross-border crime, as well as ensuring safety and security of civil society can be useful in such areas.

In 2006, the Latvian and Lithuanian governments signed an ‘Agreement between the Government of the Republic of Lithuania and the Government of the Republic of Latvia on Cooperation in Combating Organised Crime and other Offences and on Joint Actions in Border Regions’. This established a legal framework for cooperation actions centred on protecting and ensuring civil security.

Cross-border crime has become an increasing concern for the EU and the Programme area is not an exception. Taking into account that necessary legal preconditions have been established, the Programme aims to support actions to prevent and deal with cross-border crime and improve civil safety in the Programme area. Cross-border cooperation allows for improved harmonisation of systems for ensuring public safety. It also allows for activities involved in combating crime more effectively. Strong cooperation between responsible institutions is required due to their different legal and practical aspects.

Regions are much more adversely affected than capital cities by depopulation, poor infrastructure and low population density. Hence, the effectiveness and accessibility to regional public services remains of utmost importance. Subsequently, regional development plans highlight the benefits from improving the efficiency of local public services. Cross-border cooperation for the public services allow to seek synergies in legal and administrative cooperation, as well as allows to capitalise on positive experience through mentoring and transfer of good practices. Added value is visible in various fields such as risk prevention, research and innovation (for example, decreasing administrative burden in the regions) and others. In addition to the legal and administrative cooperation, involvement of society in decision making processes is a valuable tool to increase efficiency and transparency of public services.

Key challenges for public administrations in the Programme area are described in previous sections of the document, however there is a potential to increase capacity and quality of services provided by Latvian and Lithuanian national, regional and local institutions. The Programme area shows potential for e-government in both countries (Latvia – 31%, Lithuania – 22%, EU average is 31%; [Eurostat], 2010).Evidence from the 2007-2013 Programme indicates useful potential for e-government cooperation projects in various public sector fields that can be built on and strengthened.

Experience from the 2007-2013 Programme also shows that cross-border cooperation on public administration projects in the field of public services provide opportunities for effective (including financially feasible) problem solving that would be a challenging task if done separately by each region or partner. Cooperation between administrations continues either in the same area or is


17

progressing by implementing joint projects in other areas. This continuity reinforces the durability and strength of such cooperation.

Summarising, a key issue in the Programme area is the low efficiency of public services caused by capacity bottlenecks and lack of cooperation.

The aforementioned analysis identifies the main challenges involved with the field of public services (taking into account the actual needs, the Programme’s scope, and the potential for cross-border cooperation). A Programme aim has been agreed related to these challenges.


- improve efficiency of public services in civil protection, safety and security and other areas.


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1.1.6. Strategy of the Programme to address the needs in the regions

and contribution to the Europe 2020

Multi-level programming tasks were carried out to ensure a justified basis for the selection of the Programme’s priorities. This included:

− analysis of national and regional statistical data in order to identify main problems and challenges and quantify the needs of the Programme area;

− research on the existing cooperation experience by performing quantitative and qualitative evaluation of projects from the 2007-2013 Programme;

− analysis of the medium and long-term development documents of the Member States and Programme regions and defining of the Programme priorities;

− cooperation with stakeholders in regional seminars and public consultations;

− development of a justified intervention logic for the Programme; − aligning of priorities with the European Commission Services’ agreed

position on the development of the Partnership Agreements and programmes in Latvia and Lithuania.

Analyses and other actions taken to facilitate the programming process were carried out to ensure that objectives and targets are aligned to the regional and national strategies, which in turn are contributing to the medium-term development documents that lead to the achievement of the Europe 2020 targets.

Table 1: A synthetic overview of the justification for the selection of TOs

and investment priorities

Selected TO Selected Investment

Priority

Justification for selection

TO 6 - preserving and protecting the environment and promoting resource efficiency

(c) conserving, protecting, promoting and developing natural and cultural heritage

(d) protecting and restoring biodiversity and soil and promoting ecosystem services, including through Natura 2000, and green infrastructure

(e) taking action to improve the urban environment, to revitalise cities, regenerate and decontaminate brownfield sites (including conversion areas), reduce air pollution and promote noise-reduction measures

Extract from section 1.1.3. of the OP:

Strong potential of cultural and natural heritage to be used for tourism and recreational purposes

Necessity to capitalise on advantages of the region for local inhabitants and visitor

Cross-border cooperation potential to manage natural and cultural resources in regions in more efficient ways

Need to support the authorities to deal with regional and local environment problems

Increasing number of persons living in households facing environmental problems

Contribution to the Europe 2020 ‘Sustainable growth’ targets

Contribution to the EUSBSR, Priority Areas ‘Bio’, ‘Tourism’ and ‘Culture’


19

TO 8 - promoting sustainable and quality employment and supporting labour mobility

(a) supporting the development of business incubators and investment support for self-employment, micro-enterprises and business creation

(ETC) promoting sustainable and quality employment and supporting labour mobility by integrating cross-border labour markets, including cross-border mobility, joint local employment initiatives, information and advisory services, and joint training


Lack of indirect business support and business infrastructure in the regions

Slow growth of business creation in regions

Business creation and competitiveness of regions is a strong priority for both Member States

Necessity to reduce high long-term and youth unemployment

Need to decrease mismatches between professional skills and labour market needs

Need to improve road sections that contribute to cross–border mobility

Contribution to the Europe 2020 ‘Inclusive growth’ target

Contribution to the EUSBSR, Priority Areas ‘Transport’ and ‘Education’

TO 9 - promoting social inclusion, combating poverty and any discrimination

(a) Investing in health and social infrastructure which contributes to national, regional and local development, reducing equalities in terms of health status, and transition from institutional to community-based services

(b) providing support for physical, economic and social regeneration of deprived communities in urban and rural areas


Social exclusion and poverty risk is significant in the programme regions

High long-term unemployment rate creates social pressure

Poor socio-economic conditions in rural and urban communities cause deprivation in the regions

Need to improve social services and infrastructure

The potential of socially excluded groups is not adequately explored nor used

Contribution to the Europe 2020 ‘Inclusive growth’ targets

TO 11 - enhancing institutional capacity of public authorities and stakeholders and efficient public administration

(ETC) enhancing institutional capacity of public authorities and stakeholders and efficient public administration by promoting legal and administrative cooperation, as well as cooperation between citizens and institutions


Cross-border cooperation is required to combat cross-border crime and civil protection issues

Close proximity of regions is a potential for joint services and administration cooperation

A legal framework for cross-border cooperation is in place thus the Programme can focus on actual cooperation activities

Contribution to the Europe 2020 ‘Inclusive growth’ targets

Contribution to the EUSBSR, Priority


20

Area ‘Neighbours’

The Member States decided that the Programme will contribute towards four TOs. The TOs have been translated into the Programme priorities. This selection is based on the Programme area’s characteristics and the identified needs and challenges that may potentially be solved via cross-border cooperation. Each of the selected TOs contributes to the achievement of the Programme objective.

Details regarding contributions to the Europe 2020 strategy are described in Section 4 of the Programme document, and a review of key TO contributions is noted in Annex 1 (Figure 3 - overview of specific objectives of the Programme).


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1.2. Justification of the financial allocation

The financial allocation to the Programme thematic objectives (Priorities) has been designed to effectively achieve the Programme results using the resources available.

The Programme is co-financed by the ERDF. The total ERDF support to the Programme is 54 966 201 EUR, 6% of which (or 3 297 972 EUR) shall be allocated for the TA purposes.

The rationale for the financial commitment to each Priority include: expected results to be achieved; planned types of actions under each Priority, as well as types of investments to be made. The implementation and financial performance and experience from the 2007–2013 Programme was taken into account.

27% of the total Union support (excluding TA) shall be allocated to Priority 1. In total three specific objectives are defined and should be achieved under this Priority. To achieve Priority 1’s expected results (increased number of visitors in the Programme area; improved cooperation between institutions involved in joint management of environmental resources; decrease of municipal territories with environmental problems in the Programme area; and support to economic development) a rather large share of the Programme funding needs to be reserved. Investments in infrastructure are foreseen under Priority 1.

35% of the total Union support (excluding TA) shall be allocated to Priority 2. In total two specific objectives should be achieved under this Priority. Important Programme results to be achieved relate to improve economic activity in the Programme area; provide new business opportunities; and increase cross-border mobility in the Programme area. The Programme has earmarked 9 200 000 EUR (17% of total Programme funding) for improvement of cross-border road infrastructure by selecting three cross-border road sections. Planned investments will improve labour mobility and access to services, as well as connect regional towns where main services and employment opportunities are available.

20% of the total Union support (excluding TA) shall be allocated to Priority 3. In total two specific objectives shall be achieved under this Priority - increasing number of people benefitting from joint social inclusion measures and social services, as well as decreasing numbers of people facing deprivation related-problems. These represent a considerable part of the Programme objectives.

18% of the total Union support (excluding TA) shall be allocated to Priority 4. One specific objective will be implemented under this Priority as the Programme aims to achieve increased efficiency of public services by introducing new cross-border cooperation solutions.

The Ex-ante evaluation report states that the financial allocations are well justified, reasonable and logic, acknowledging that there is a financially feasible balance between the thematic objectives, results and planned allocation of the Union support.


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Table 2: Overview of the Programme investment strategy

Priority

Axis ERDF

support

(EUR)

Proportion

of the total

Union

support to

the

cooperation

programme

- ERDF

TO Investment priorities Specific objectives

corresponding to the

investment priorities

Result indicators

corresponding to the

specific objective

Sustainable and clean environment through cooperation

13 950 422 27% TO6

Preserving and protecting the environment and promoting resource efficiency

(c) conserving, protecting, promoting and developing natural and cultural heritage

To increase numbers of visitors in the Programme area through improving and developing cultural and natural heritage objects, services and products

Overnight stays of visitors in the Programme area

(d) protecting and restoring biodiversity and soil and promoting ecosystem services, including through Natura 2000, and green infrastructure

To improve joint management of environmental resources

Joint management actions of environmental resources

(e) taking action to improve the urban environment, to revitalise cities, regenerate and decontaminate brownfield sites (including conversion areas), reduce air pollution and promote noise-reduction measures

To regenerate public areas with environmental problems

Number of households facing pollution , grime and other municipal environment problems


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Support to labour mobility and employment

18 083 880 35% TO 8

promoting employment and supporting labour mobility

(a) supporting the development of business incubators and investment support for self-employment, micro-enterprises and business creation

To create employment opportunities through support to entrepreneurship

Growth of newly established businesses

(ETC) promoting sustainable and quality employment and supporting labour mobility by integrating cross-border labour markets, including cross-border mobility, joint local employment initiatives, information and advisory services and joint training

To increase job opportunities by improving mobility and skills of workforce

Number of people receiving new skills matching labour market needs

The increased of traffic intensity on the renovated roads

Social inclusion as a precondition of territorial development

10 333 646 20% TO9

Promoting social inclusion and combating poverty

(a) investing in health and social infrastructure which contributes to national, regional and local development, reducing inequalities in terms of health status, promoting social inclusion through improved access to social, cultural and recreational services and the transition from institutional to community-based services

To improve social infrastructure and services for promotion of social inclusion

Number of people benefitting from joint social inclusion measures and social services

(b) providing support for physical, economic and social regeneration of deprived communities in urban and rural areas

To improve living conditions in deprived communities and territories

Number of households facing pollution and other municipal environmental problems

Improved 9 300 281 18% TO 11 (ETC) enhancing institutional To improve efficiency of Number of new solutions


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quality of living through efficient public services and administration

Enhancing institutional capacity and ensuring an efficient public administration

capacity of public authorities and stakeholders and efficient public administration by promoting legal and administrative cooperation, as well as cooperation between citizens and institutions

public services by strengthening capacities and cooperation between institutions

applied to the public services


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SECTION 2:

DESCRIPTION OF THE PRIORITY AXES

2.1. Priority Axis 1: Sustainable and clean environment through cooperation

TO 6: Preserving and protecting the environment and promoting resource efficiency

The Programme’s support to cultural and natural heritage is one of the conditions for sustainable economic development (positively affecting tourism, improving the local living environment, and in general providing additional dimensions to local economies).

The Programme aims to capitalise on positive visitor trends in the regions by focusing on: the development of existing, or creation of new, objects/services/products of cultural and natural heritage; creating and improving joint management practices; as well as capitalising on the potential of organisations working with cultural and natural heritage. Cultural heritage restoration is also supported for creative re-use of old or abandoned buildings for cultural purposes, or to develop and preserve traditional skills.

Experience from the 2007-2013 Programme shows that joint solutions provide added value in this field. For instance, exchange of practices and development of joint products (such as joint tourism routes) improved the attractiveness of the region as a whole. In addition, research and knowledge transfer in relation to sustainable management techniques for cultural and natural heritage will be supported through projects in order to detect and share best practices in the regions.

The Programme anticipates that the cultural and natural heritage objects, services and products that are created or improved will have positive impacts on increased visitor numbers in the Programme area.

Expected result: Increased numbers of visitors in the Programme area

Investment Priority 1:

Conserving, protecting, promoting, and developing natural and cultural

heritage

Specific objective:

To increase numbers of visitors in the Programme area through improving

and developing cultural and natural heritage objects, services and products


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ID Indicator Measureme

nt Unit

Baseline

Value

Baseline

Year

Target Value

(2023)

Source

of Data

Frequency

of

reporting

1.1.R1 Overnight stays of visitors in the Programme area

Units 3 085 435 2013 3 548 250

(+15% more than in 2013)

National statistics bureaus

Once, 2023

Anticipated results can be affected by different factors. Hence, the Programme focuses on one specific area of interventions, namely: improving cultural and natural heritage objects and infrastructure, as well as developing joint services, products and plans based on natural and cultural heritage objects.

Indicative list of actions to be supported

- preservation of cultural and natural heritage sites, including improvement of infrastructure and equipment;

- developing and promoting of cultural and natural heritage services, including e-services;

- creation of joint tourism routes and products;

- joint marketing of cultural and natural heritage objects, routes, and products.

Output indicators

ID Indicator Measurement

unit

Target value

(2023)

Source of data

1.1.O1 Change of number of visits to supported sites of cultural and natural heritage and attractions

Percentage

5% Progress reports

Guiding principles for the selection of operations

See section 5.3 for description of project selection principles.


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Protecting and restoring biodiversity and soil and promoting ecosystem

services, including through Natura 2000, and green infrastructure

Specific objective:

To improve joint management of environmental resources

The Programme area has a number of environmental issues that should be addressed through cooperation and joint management. These can be realised either by further developing existing cooperation experiences, or supporting the creation of new cooperation networks and joint management activities.

The Programme expects that rivers, lakes, protected areas, coastal areas, and marine environments (around the shared sea border between Latvia and Lithuania) will benefit from improved management, services and infrastructure, as well as joint actions in order to minimise negative impacts linked to agriculture and industry.

Programme actions for protecting biodiversity can include the creation of biodiversity datasets (for example, collection of data on biodiversity) within and outside Natura 2000 sites. This will help fill existing gaps in biodiversity data for the Programme area’s Natura 2000 network.

Taking into account that there are rather negative attitudes and misinformation (e.g. perception of activities that are allowed/forbidden in protected territories) in the wider public and within local governments, joint and improved management of protected territories should also address issue of attitudes and availability of information.

Planned interventions will have positive impacts in terms of a cleaner and healthier environment in the Programme area, and joint management solutions will be created. The Programme expects to see that planned interventions would beneficially increase the intensity of cooperation in the Programme area and would contribute to joint management of environmental resources.

Expected result: Improved cooperation between institutions involved in joint management of environmental resources

ID Indicator Measurem

ent Unit

Baseline

Value

Baselin

e Year

Target

Value

(2023)

Source of

Data

Frequency

of

reporting

1.2.R1

Joint management actions of environmental resources

Units 22 2013 27 Programme monitoring system

Once, 2023


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- joint environmental risk (flood, fire, pollution, etc.) management actions and infrastructure and equipment;

- joint environmental resource management (river basins, protected areas, lakes, etc.) actions and improvement of infrastructure and equipment;

- education of society and awareness raising on nature protection impacts;

- exchange of practices, trainings and seminars on sustainable environmental resource management and protection.

Output indicators


unit

Target value

(2023)

Source of data

1.2.O1 Institutions implementing joint sustainable solutions for natural resource management

Units

17 Progress reports




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Taking action to improve the urban environment, to revitalise cities,

regenerate and decontaminate brownfield sites (including conversion

areas), reduce air pollution, and promote noise-reduction measures

Specific objective:

To regenerate public areas with environmental problems

Visual and structural degradation of public infrastructure and urban/municipal environmental problems are factors that hinder economic potential and wellbeing of inhabitants in the region. Hence, the Programme recognises the necessity to create favourable conditions for living and starting and developing businesses. The Programme aims to focus on regenerating sites with environmental problems to foster economic development in the regions.

Cross-border cooperation contributes to the exchange of experience in urban and municipal planning for developing sites with environmental problems into the territories where economic development is fostered and living conditions improved. Taking into account that regions from both sides of the border face similar problems (such as decrease of population and relatively low economic activity), cross-border cooperation will help to find new solutions on how to develop the potential of territories where municipal environment problems are apparent.

The Programme expects that planned regeneration of municipality-owned territories (with environmental problems) will positively impact on the Programme area’s potential for economic development, and it will contribute to improved living conditions. Expected result: Improved municipal environment for inhabitants and support to economic development.

ID Indicator Measurem

ent Unit

Baseline

Value

Baselin

e Year

Target

Value

(2023

)

Source of

Data

Frequenc

y of

reporting

1.3.R1

Number of households facing pollution grime and other municipal environmental problems

Percentage 17.2% 2013 16.5% National statistics

Once, 2023

Anticipated results can be affected by different factors. Hence, the Programme focuses on one specific area of interventions, namely: solving environmental problems by improving urban/municipal territories and establishing infrastructure


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and utility connections for future development. The main purpose of regeneration support for areas with environmental problems involves creating favourable conditions for living, as well as for starting and developing businesses.


- improvement of public infrastructure in municipal territories with environmental problems, e.g., cleaning of territory, deconstructing of old buildings;

- experience exchange in municipal planning (including pilot activities) of development of sites with environmental problems.

Activities should be aimed at solving existing municipal environmental problems and fostering business development.

Output indicators


unit

Target value

(2023)

Source of data

1.3.O1 Rehabilitated urban and municipal space with potential for fostering economic development

Square meters

160 000*

* could be reviewed

Progress reports




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2.2. Priority Axis 2: Improvement of labour mobility and employment

TO 8: promoting sustainable and quality employment and supporting labour mobility

In this investment priority the Programme aims to contribute to positive trends in employment by supporting business creation, development of micro-enterprises, and self-employment.

Population density in the Programme regions is substantially lower than in the capital cities of both countries meaning that access to consumer markets are relatively limited. Hence, infrastructure and connections necessary for establishing a business are even more important. The Programme is planning to support measures that will encourage and generate creation of local employment.

The cooperation of local small businesses and self-employed people should be encouraged as it is vital for the existence and development of small rural business (including the ability to reach the market and sell local products such as bio-food, craft goods, souvenirs, etc.).

Under this investment priority the Programme specifically focuses on providing support for business creation, micro-enterprises, and self-employment by further developing and creating business support services, as well as improving/creating infrastructure to ensure indirect business support.

The Programme anticipates that its support will contribute to increase of business creation (evidenced by increased numbers of newly established businesses) in the regions.

Expected result: Improved economic activity in the Programme area and new business opportunities provided


Unit

Baseline

Value

Baseline

Year

Target

Value

(2023)

Source

of Data

Frequency

of

reporting


Supporting the development of business incubators and investment

support for self-employment, micro-enterprises, and business creation

Specific objective:

To create employment opportunities through support to entrepreneurship


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2.1.R1 Growth of newly established businesses

Percentage 6619 newly registered enterprises

2012 Increase by 10 % in comparison to 2012

(7280 newly registered enterprises in 2023)

National statistics data

Once, 2023

Anticipated results can be affected by different factors. Hence, the Programme focuses on one specific area of interventions, namely: support to employment by improving business support services and infrastructure. The main result relates to evidence of a stable increase in newly established businesses that ensure sustainability of the Programme investments.


- development of basic municipal infrastructure necessary for business creation and support (utilities, connections for business environment, etc.);

- development of business support services with cross-border dimensions;

- promotion of innovative ICT solutions and technologies used for improving business support services;

- joint awareness raising on cross-border business opportunities;

- training, coaching and mentoring for potential cross-border businesses;

- networking of entrepreneurs.

Output indicators


unit

Target value

(2023)

Source of data

2.1.O1 Business support services improved/created as result of the cross-border cooperation

Units

14 Progress reports

2.1.O2 Improved or created business support infrastructure objects that ensure indirect business support

Units

11 Progress reports




Promoting sustainable and quality employment and supporting labour

mobility by integrating cross-border labour markets, including cross-border


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The Programme regions (and both countries in general) face typical unemployment dynamics involving increased numbers of unemployed people with lower education. Rather high unemployment is also recorded among people with vocational education. Long-term and youth unemployment has been high, indicating a mismatch between actual skills and skills demanded by labour market.

The Programme regions face other common problems related to: poor quality of educational infrastructure; education and training programmes that do not reflect labour market needs; the necessity to increase practical experience for students from higher and vocational education institutions; and a need to promote vocational education.

Under this investment priority, the Programme specifically focuses on: cooperation between businesses and education organisations (improvement of trainings, exchanges, field practices, etc.); cooperation between education organisations to improve their services and training programmes, as well as necessary infrastructure; promotion of cross-border employment information exchange about demand of jobs and required skills.

Another aspect of labour mobility that the Programme is planning to improve under this Investment Priority 2 is improved cross-border road infrastructure. This will contribute to increased labour mobility by ensuring access to services and working places, as well as connect regional towns where main services and employment opportunities are available. It is planned that improved mobility will be evidenced by increased traffic intensity on reconstructed road sections.

Member States agreed on cross-border road sections to be improved in the Programme area.

Road sections to be improved in Latvia are:

• road classification code: V1028 Bauska –Bērzi – Lithuanian border; 7.44-14.625 km; length 7.185 km;

• road classification code: P75 Jēkabpils – Nereta – Lithuania border; 56.09 - 60.50 km Nereta –Sleķi 0-1.2 km; length 5.61 km;

• road classification code: P106 Ezere – Embute - Grobiņa – Lithuania border; 0-14 km; length 14.00 km.

Road sections to be improved in Lithuania are:

• road classification code: 2912 Žeimelis - Vileišiai – Latvian border; 0.0-5.1 km; length 5.1 km;

mobility, joint local employment initiatives, information and advisory

services and joint training

Specific objective:

To increase job opportunities by improving mobility and skills of workforce


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• road classification code: 3647 Pandėlys – Suvainiškis – Latvian border; 13.3-18.3 km; length 5 km;

road classification code: 163 Mažeikiai – Latvian border; 0.0- 9.19 km; length 9.19 km.

The Programme expects to see an increase of job opportunities due to the upgrading of skills matching labour market needs and improved labour mobility.

Expected results:

- Increased employment opportunities through obtaining skills according to labour market needs;

- Increased cross-border mobility in the Programme area.

ID Indicator Measuremen

t Unit

Baseline

Value

Baseli

ne

Year

Target

Value

(2023)

Source of

Data

Frequenc

y of

reporting

2.2.R1

Change of numbers of people receiving upgraded skills matching labour market needs

Persons Around 1000 persons received upgraded skills as a result of improved training programmes

(matching labour market needs in the 2007-2013 Programme)

2013 ~ 1200 (increase of 20%)

2007-2013 Programme

Once, 2023

2.2.R2

Traffic intensity on the renovated roads

Percentage

See Annex 3 ‘“Calculation of baselines and targets for result indicators – Action Plan”

2013 See Annex 3 ‘“Calculation of baselines and targets for result indicators – Action Plan’

Information from national road administrations

Once, 2023


- Improvement and creation of educational infrastructure/improvement and purchase of equipment;

- mobility and training programmes to increase entrepreneurship;

- involvement of entrepreneurs and employed persons in lifelong learning and other support activities in order to improve labour market competitiveness;


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- trainings, exchanges, internships and international field practices;

- cooperation between businesses and educational institutions;

- job fairs and information exchange about job demands and skill requirements;

- improvement of cross-border road infrastructure .

Territories and beneficiaries

Road sections to be reconstructed are located in the Programme area and can be identified according to the road classification codes.

The Project partners to carry out road reconstructions are:

- in Latvia: State Joint Stock Company ‘Latvijas Valsts Ceļi’;

- In Lithuania: State institution ‘Lietuvos automobilių kelių direkcija’.

Output indicators


unit

Target value

(2023)

Source of data

2.2.O1 Number of participants in joint education and training schemes to support youth employment, educational opportunities and higher and vocational education across borders

Units 700 Progress reports

2.2.O2 Created or improved educational and training infrastructure objects planned for joint use


2.2.O3 Total length of reconstructed or upgraded roads in the border area

Km 46,085 Progress reports

Guiding principles for the selection of projects under Priority Axis 2

The Programme aims to continue with the same project selection principles that were established in the 2007-2013 Programme. See section 5.3. for a detailed description.

The only exception in a form of direct award procedure will be applied to projects contributing to the result indicator ‘the increase of traffic intensity on the renovated roads’ and output indicator ‘total length of reconstructed or upgraded roads in the border area / km’, as Project partners are obliged to reconstruct the road sections described in the section above. Up to EUR 9 200 000 of the programme’s ERDF resources are earmarked for this purpose.

The Project partners will have to submit the project applications and comply with the general principles of project selection in the Programme described in the section 5.3.


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The following rules will apply to the bodies receiving a direct award:

- if during the implementation of the project, the costs will exceed (for example, as a result of the public procurement) available funding earmarked in the Programme and in the Subsidy Contract, the bodies must cover the costs (exceeding earmarked funding) from other sources than project funding while implementing the activities in the planned amount;

- if during the implementation of the project, the actual costs will be below available funding earmarked in the Programme, unspent funding will be ‘returned’ to the Programme and committed for the projects selected via open calls under the same TO and investment priority.


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2.3. Priority Axis 3: Social inclusion as a precondition of territorial

development

TO 9: Promoting social inclusion and combating poverty

Social services are established in the Programme regions and each have specific requirements for their assistance to various target groups (e.g. elderly people, people with physical and mental disabilities, people in crisis situations, large families, unemployed people etc.). In addition to the state, municipalities, and municipal organisations that are providing social services, there is a strong NGO involvement that should be capitalised.

As a general rule, institutional care in the Programme area is more expensive, resource demanding and not flexible enough to react to the needs of target groups. Hence, social services are moving away from institution-based approaches and increasingly favouring community-based care. Cross-border cooperation is becoming more important, as practices in implementing social services and ensuring access to labour market and public services for disadvantaged groups varies across the Programme regions.

In addition to helping to modernise social services, the Programme aims to contribute to improved social inclusion in the Programme area. This will be achieved by providing opportunities for people at risk of social exclusion. Opportunities will include: improved access to public services; improving and developing high-quality social services through wider community and NGO involvement; supporting social rehabilitation to allow people at risk from poverty and exclusion to re-gain their social status and inclusion in the labour market.


Investing in health and social infrastructure which contributes to national,

regional and local development, reducing inequalities in terms of health

status, promoting social inclusion through improved access to social,

cultural and recreational services and the transition from institutional to

community-based services

Specific objective:

To improve social infrastructure and services for promotion of social

inclusion


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Expected result: People benefitting from joint social inclusion measures and social services


Unit

Baseline

Value

Baseline

Year

Target

Value

(2023)

Source

of Data

Frequency

of

reporting

3.1.R1 Number of people benefitting from joint social inclusion measures and social services

Percentage See Annex 3 ‘“Calculation of baselines and targets for result indicators – Action Plan’


Survey Once, 2023


- improvement of infrastructure and equipment necessary for social services;

- improvement of competences of specialists providing social services;

- improvement/development of services and infrastructure/equipment for people at risk of social exclusion;

- integration of people at risk of social exclusion in the labour market.

Output indicators


unit

Target value

(2023)

Source of data

3.1.O1 Created/improved social services and infrastructure

Units

15 Progress reports

3.2.O2 Created/improved social inclusion measures





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The main statistical indicators on economic development point out that rural and municipal areas are under-developed (please see Section 1.1) and there is a wide range of social problems that should be tackled, including deprivation of municipal communities.

The Programme recognises that within its scope, the most efficient way how to contribute to the regeneration of deprived communities is small scale social cooperation projects, including small scale infrastructure for deprived communities and territories. Social and material deprivation is also measured through housing and living conditions in settlements. This is evidenced by households reporting pollution grime and other municipal environmental problems (see analysis in section 1.1.4).

Taking into account that Programme plans to fund also small scale infrastructure projects for deprived communities, it is expected that municipal environmental problems in communities will decrease (and less households will report on such problems in the Programme area). In addition, the Programme aims to continue supporting social inclusion actions to improve living conditions in the municipalities also contributing to reduced social deprivation.

Activities supported under this investment priority are seen as instruments to strengthen communities via ‘people to people’ projects. The focus is on solving practical local and community level problems within diverse social themes.

The Programme anticipates that its support for regeneration of deprived urban and rural communities will help to tackle the most pressing social issues that those communities are facing.

Expected result: Decreased number of people facing deprivation related-problems


Unit

Baseline

Value

Baseline

Year

Target

Value

(2023)

Source

of Data

Frequency

of

reporting

3.2.R1 Number of households facing pollution, grime and other municipal environment

Percentage 17.2% 2013 16.5% National statistics

Once, 2023


Providing support for physical, economic, and social regeneration of

deprived communities in urban and rural areas

Specific objective:

To improve living conditions in deprived communities and territories


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problems


- implementation of local social cooperation activities for deprived communities;

- improvement or creation of small scale infrastructure for deprived communities (excluding basic public infrastructure);

- joint mapping and actions for solving problems in deprived communities;

- education and training activities for deprived communities.

Output indicators


unit

Target value

(2023)

Source of data

3.2.O1 Number of deprived communities participating in the regeneration activities

Units

36 Progress reports




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2.4. Priority Axis 4:

Improved quality of living through efficient public services and

administration

TO 11: Enhancing institutional capacity of public authorities and stakeholders and efficient public administration

At national levels, both Member States recognise the need to improve the efficiency of public services, but taking into account the regional character of the Programme, challenges are even more evident. Regions are much more adversely affected than capital cities by depopulation, poor infrastructure and low population density. Hence, the effectiveness of, and accessibility to public services is of utmost importance and regional development plans highlight the need for improving the efficiency of public services.

Supporting improvement of efficiency of public services also fosters synergy with Priority Axes 1, 2 and 3. Complementarity benefits can be generated by combining support for public services with actions tackling employment and mobility, as well as social and environment challenges. Results can combine to create positive impacts in terms of quality of life and sustainable development for the regions.

Cooperation between organisations providing services is a very important element of improving the efficiency of public services. In the field of security and cross-border crime there are necessary legal arrangements in place between both Member States. Hence, the Programme aims to provide support for actions to combat and prevent cross-border crime and improve civil security.

In relation to services, not covered by other Programme Priorities, cross-border cooperation presents benefits through increased availability of services; exchange of best practices; cost effectiveness; and establishing traditions for cooperation that leads to durability and serves as a precondition for further development. Therefore the Programme aims to ensure cooperation of organisations providing public services and cooperation between citizens and institutions.

The Programme shall focus its interventions on the delegated functions of the public bodies in order to ensure concentration of the expected results. It is expected that synergies in legal and administrative cooperation will be sought by the Project


Enhancing institutional capacity of public authorities and stakeholders and

efficient public administration by promoting legal and administrative

cooperation, and cooperation between citizens and institutions

Specific objective:

To improve efficiency of public services by strengthening capacities and

cooperation between institutions


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partners, as well as capitalisation on positive experience through mentoring, including transfer of good practices. Added value is visible in various fields such as risk prevention, research and innovation (for example, decreasing administrative burden in the regions) and others. In addition to the legal and administrative cooperation, involvement of society in civic decision making is a valuable tool to increase efficiency and transparency of public services.

Expected result: Increased efficiency of public services by introducing new cross-border cooperation solutions

ID Indicator Measure

ment

Unit

Baseline

Value

Baselin

e Year

Target Value

(2023)

Source of

Data

Frequen

cy of

reportin

g

4.1.R1

Number of joint solutions improving the public services

Units See Annex 3 ‘“Calculation of baselines and targets for result indicators – Action Plan’


Survey Once, 2023


- cross-border cooperation actions in protection and security of civil society;

- capacity building and development of cooperation between Latvian and Lithuanian national, regional and local institutions on topics not covered by other priorities of the Programme;

- development and implementation of trainings and mentoring activities;

- transfer of good practices;

- involvement of society in civic decision making;

- small scale infrastructure and equipment for community capacity building;

- promotion of legal and administrative cooperation that creates synergies;

- improvement of technical and infrastructure capacities and tools to tackle disasters and/or crime.


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Output indicators


unit

Target value

(2023)

Source of data

4.1.O1 Number of institutions, participating in cooperation

Units

46 Progress reports




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2.5. Performance framework

Table 4 Performance framework

Performance framework values are based on the past performance of the 2007-2013 Programme (financial absorption, achievement of indicators) and expected timeframe for the Calls for Proposals in the Programme. Taking into account that by 2018 only first Call projects will be reporting on their achievements, a cautious approach was used when modelling the Performance framework.

Priority

Axis

Indicator

Type

ID Implementation step,

financial, output or result

indicator

Measureme

nt unit,

where

appropriat

e

Mile-stone

for 2018

Final target

(2023)

Source of

data

Explanation of the

relevance of the

indicator, where

appropriate

Priority Axis 1

Financial indicator

Expenditure EUR 1 395 042 13 950 422 Monitoring system

Priority Axis 1

Output indicator

1.2.O1 Institutions implementing joint sustainable solutions for natural resource management

Units 2 17 Progress reports

Priority Axis 1

Output indicator

1.3.O1 Rehabilitated urban and municipal space with potential for fostering economic development

Square meters

16 000 160 000 Progress reports

Priority Axis 2

Financial indicator


Priority Axis 2

Output indicator

2.1.O1 Business support services improved/created as result of the cross-border cooperation


Priority Axis 2

Output indicator

2.2.O1 Number of participants in joint education and training schemes to support youth employment, educational opportunities and higher and vocational education across borders


Priority Output 2.2.02 Created or improved educational Units 2 13 Progress


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Axis 2 indicator and training infrastructure objects planned for joint use

reports

Priority Axis 3

Financial indicator


Priority Axis 3

Output indicator

3.1.O1 Created/improved social services and infrastructure


Priority Axis 3

Output indicator

3.1.O2 Created/improved social inclusion measures


Priority Axis 3

Output indicator

3.2.O1 Number of deprived communities participating in the regeneration activities


Priority Axis 4

Financial indicator

Expenditure EUR 930 028 9 300 281 Monitoring system

Priority Axis 4

Output indicator

4.1.O1 Number of institutions, participating in cooperation


2.6. Categories of intervention

Tables 5-8: Categories of intervention

Table 5: Dimension 1 Intervention field

Priority Axis Code EUR amount

Priority Axis 1 094 Protection, development and promotion of public cultural and heritage assets

2 790 084


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Priority Axis 1 095 Development and promotion of public cultural and heritage services

2 790 084

Priority Axis 1 085 Protection and enhancement of biodiversity, nature protection and green infrastructure

1 116 034

Priority Axis 1 086 Protection, restoration and sustainable use of Natura 2000 sites 1 116 034

Priority Axis 1 087 Adaptation to climate change measures and prevention and management of climate related risks e.g. erosion, fires, flooding, storms and drought, including awareness raising, civil protection and disaster management

1 255 538

Priority Axis 1 089 Rehabilitation of industrial sites and contaminated land 4 882 648

Priority Axis 2 103 Sustainable integration into the labour market of young people, in particular those not in employment, education or training, including young people at risk of social exclusion and young people from marginalised communities, including through the implementation of the Youth Guarantee

2 260 485

Priority Axis 2 104 Self-employment, entrepreneurship and business creation including innovative micro, small and medium sized enterprises

2 260 485

Priority Axis 2 102 Access to employment for job-seekers and inactive people, including the long-term unemployed and people far from the labour market, also through local employment initiatives and support for labour mobility

13 562 910

Priority Axis 3 112 Enhancing access to affordable, sustainable and high-quality services, including health care and social services of general interest

6 716 870

Priority Axis 3 109 Active inclusion, including with a view to promoting equal opportunities and active participation, and improving employability

3 616 776

Priority Axis 4 096 Institutional capacity of public administrations and public services related to implementation of the ERDF or actions supporting European Social Fund (ESF) institutional capacity initiatives

9 300 281


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Table 6: Dimension 2 Form of finance


Priority Axis 1

Priority Axis 2

Priority Axis 3

Priority Axis 4

01 Non-repayable grant 51 668 229

Table 7: Dimension 3 Territory


07 Not applicable -

Table 8: Dimension 6 Territorial delivery mechanisms


- 07 Not applicable -


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2.7. Planned use for the Technical Assistance budget

Actions to be supported under the TA budget

In general, the TA budget will finance the actions necessary for Programme administration, monitoring and control, and support of the Project partners in order to ensure successful implementation of the projects.

Examples of the actions to be financed under the TA budget (but not limited to) are:

- administration and management of the Programme;

- individual consultations;

- information seminars;

- partner and thematic seminars;

- information through the Programme website;

- regular monitoring of the projects.

National co-financing of the TA budget is 930 197 EUR (22% co-financing rate). 53% of TA budget (493 004 EUR) will be financed by Latvia, 47% (437 193 EUR) by Lithuania. Detailed breakdowns of national co-financing by each Member State are presented in Annex 4 ‘“Annual instalments of the Technical Assistance co-financing’.

Output indicators


unit

Target

value(2023)

Source of data

TA.O1

Events, seminars, workshops and trainings organised for publicity, information and capacity building about the Programme

Number of events 50 Information from the Programme

TA.O2

Participants at different Programme events (conferences, workshops, seminars, trainings)

Number of participants

1800 Information from the Programme

TA.O3

Consultations held by the JS staff Number of consultations


TA.O4

Site visits to the projects Number of site visits



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Categories of intervention

Table 9: Dimension 1 Intervention field


TA 121 Preparation, implementation, monitoring and inspection

2 787 972

TA 122 Evaluation and studies 170 000

TA 123 Information and communication

250 000

Table 10: Dimension 2 Form of finance


TA 01 Non-repayable grant 3 297 972

Table 11: Dimension 3 Territory


- 07 Not applicable -


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SECTION 3:

FINANCING PLAN

3.1. Financial appropriation from the ERDF (in EUR)

Table 12

Fund 2014 2015 2016 2017 2018 2019 2020 Total

ERDF 2 198 648 5 496 620 8 244 930 10 993 240 10 993 240 10 99 3240 6 046 282 54 966 201

IPA amounts (where

applicable) Not applicable

ENI amounts (where

applicable) Not applicable

Total 2 198 648 5 496 620 8 244 930 10 993 240 10 993 240 10 993 240 6 046 282 54 966 201


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3.2. A Total financial appropriation from the ERDF and national co-financing (in EUR)

Table 13: Financing plan

Fund Basis for calculation

of Union support Union support

(a)

National counterpart (b) = (c) +

(d))

Indicative breakdown of the national

counterpart

Total funding

(e) = (a) + (b)

Co-financing rate (f) = (a)/(e)

For information

National Public

funding (c)

National private funding

(d)

Contributions

from third countries

EIB contributions

Priority Axis 1

ERDF Total eligible cost 13 950 422 2 461 839 2 092 563 369 276 16 412 261 85% Not applicable Not applicable

IPA Not applicable ENI Not applicable

Priority Axis 2

ERDF Total eligible cost 18 083 880 3 191 273 2 712 582 478 691 21 275 153 85% Not applicable Not applicable IPA Not applicable

ENI Not applicable

Priority Axis 3

ERDF Total eligible cost 10 333 646 1 823 585 1 550 047 273 538 12 157 231 85% Not applicable Not applicable

IPA Not applicable ENI Not applicable Priority Axis 4

ERDF Total eligible cost 9 300 281 1 641 226 1 395 042 246 184 10 941 507 85% Not applicable

Not applicable


TA ERDF Total eligible cost 3 297 972 930 197 930 197 0 4 228 169 78% Not applicable

Not applicable


Total

ERDF Total eligible cost 54 966 201 10 048 120 8 680

432 1 367 688

65 014 321

84.55%

Not applicable Not applicable IPA Not applicable ENI Not applicable

Total Total all Funds

Total eligible cost 54 966 201 10 048 120 8 680

432 1 367 688

65 014 321

84.55% Not applicable Not applicable


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3.3. A Total financial appropriation from the ERDF and national co-financing (in EUR)

Table 14

Priority Axis Thematic objective Union support National counterpart Total funding

Priority Axis 1 – Sustainable and clean environment through cooperation

Protecting the environment and promoting resource efficiency

13 950 422

2 461 839 16 412 261

Priority Axis 2– Support to labour mobility and employment

Improvement of employment and labour mobility trough education and skills development

18 083 880

3 191 273 21 275 153

Priority Axis 3 –

Social inclusion as precondition of territorial development

Promoting social inclusion and combating poverty

10 333 646

1 823 585 12 157 231

Priority Axis 4 –

Improved quality of living through efficient public services and administration

Enhancing institutional capacity and ensuring an efficient public administration

9 300 281

1 641 226 10 941 507

TA Not applicable 3 297 972 930 197 4 228 169

TOTAL 54 966 201 10 048 120 65 014 321

Table 15: Indicative amount of support to be used for climate change objectives

Priority Axis Indicative amount of support to be used for

climate change objectives (EUR)

Proportion of the total allocation to the

programme (%)

This table is generated automatically on the basis

of tables on categories of intervention under each

Priority Axis

Total


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SECTION 4:

INTEGRATED APPROACH TO TERRITORIAL DEVELOPMENT

Contribution of the Programme to the planned interventions towards macro-

regional and sea basin strategies

Each of Programme’s Priority Axes contributes to the objectives of the Europe 2020. Both countries at national levels use similar approaches for development planning. These feature national long-term goals that are set in the long-term development documents and subsequently integrated in medium-term development documents for 2014-2020 to highlight main challenges and solutions.

The Programme area is in the territory of the Baltic Sea basin and in general the Programme actions contribute towards achievement of the EUSBSR.

Priority Axis 1 contributes to achievement of the Europe 2020’s ‘Sustainable growth’ objective. In the Partnership Agreement between the European Commission and Latvia and Lithuania, the environment has been identified as key area for ETC programmes.

In regards to the EUSBSR, Priority Axis 1 contributes to the ‘Save the Sea’ objective and more specifically to Priority Area ‘Bio‘ by supporting joint management interventions of protected areas. In addition, other interventions can contribute to the ‘Connect the Region’ objective, as well as and the Priority Areas concerning ‘Tourism’ and ‘Culture’ by capitalising on cultural and natural heritage resources in the Programme area.

Priority Axis 2 contributes to achievement of the Europe 2020’s ‘Inclusive growth’ objective. Benefits can be gained from synergies in entrepreneurship and education, as well as transport infrastructure. These are indicated as key areas for ETC programmes in the Partnership Agreement between the European Commission and Latvia on connectivity and accessibility, as well as transnational exchanges in employment and education/training in the Partnership Agreement between the European Commission and Lithuania. Interventions in Priority Axis 2 are designed to tackle these challenges.

In regards to the EUSBSR, Priority Axis 2 contributes to the ‘Connect the Region objective, and more specifically to the Priority Area ‘Transport’ by supporting mobility of local inhabitants through improving road infrastructure in Programme regions. Part of Priority Axis 2 can also contribute to the ESUBSR objective concerning ‘Increase prosperity’ and the Priority Area ‘Education’ by tackling unemployment challenges in both Member States.


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Priority Axis 3 contributes to achievement of the Europe 2020’s ‘Inclusive growth’ objective. In the Partnership Agreements between the European Commission and Latvia and Lithuania, poverty and social exclusion have been highlighted as key problems, especially in the regions of both countries. Therefore both Member States aim to create joint solutions for tackling the most pressing problems.

In regards to the EUSBSR, Priority Axis 2 contributes to the ‘Increase prosperity’ objective by focusing on interventions related to creation and improving of joint social services and infrastructure, as well as regenerated deprived communities.

Priority Axis 4 contributes to achievement of the Europe 2020’s ‘Smart growth’ objective. In the Partnership Agreements between the European Commission and Latvia and Lithuania, a number of areas are mentioned where cooperation and joint approaches to the problems and opportunities might provide effective solutions. The Programme aims to support development and improvement of public services in these areas.

In regards to the EUSBSR, Priority Axis 2 contributes to the ‘Connect the Region’ objective, and more specifically to the ‘Neighbours’ horizontal area, by supporting cooperation between institutions and between institutions and inhabitants.


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SECTION 5:

IMPLEMENTING PROVISIONS FOR THE COOPERATION

PROGRAMME

5.1. Identification of the relevant authorities and bodies

Authority/body Name of the

authority/body and

unit

Head of the authority/body

(position or post)

The MA The Ministry of Environmental Protection and Regional Development of the Republic of Latvia

Deputy State Secretary

The CA N/A N/A

The MA The Ministry of Environmental Protection and Regional Development of the Republic of Latvia

Head of Internal Audit Department

The body to which payments will be made by the European Commission is:

the MA

the CA

Authority/body Name of the

authority/body and

unit

Head of the authority/body

(position or post)

Body or bodies designated to carry out control tasks

Latvia: State Regional Development Agency

Lithuania: decentralised system

Head of Territorial Cooperation Project Control Department

Lithuania: decentralised system

Body or bodies designated to be responsible for carrying out audit tasks

The AA

The Ministry of Environmental Protection and Regional Development of the Republic of Latvia (supported by the Group of Auditors)

Latvia: Head of Internal Audit Department


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5.2. Procedure for setting up the Joint Secretariat

The JS will be set up by the MA in accordance with Article 23 of Regulation (EU) No 1299/2013.

The JS will be located in Riga, hosted by the Ministry of Environmental Protection and Regional Development of the Republic of Latvia. The change of the JS hosting institution has been initiated after internal evaluation and restructuring in order to facilitate mutual coordination between MA and JS, focus on simplification of processes and correlation of functions thus allowing for more flexible and efficient use of resources.

The intention is to keep existing arrangements (division of functions among the MA and the JS and staff for the new Programme) while adjusting them to the new regulatory requirements. It is foreseen to use experience from the 2007-2013 period, particularly in terms of employing international staff, preferably with balanced numbers of representatives from both Programme countries who speak either Latvian or / and Lithuanian to ensure adequate level of assistance in preparation and implementation of projects.

The staff of the JS will be mainly recruited during 2015 and partially in 2016 according to the intensity of the Programme implementation. During the recruitment process both smooth finalisation of the 2007-2013 Programme as well as transfer of knowledge and resources to ensure active start of the new Programme will be ensured. Monthly payments to cover partially lodging expenses in Riga to other than Latvian residents shall be covered from the JS TA budget in amounts agreed by the MC.

Another modification in comparison with the 2007-2013 period is that the Member States have agreed that the JS will have a branch office in Vilnius (which will be hosted by the Public Establishment ‘Joint Technical Secretariat’ [VšĮ ‘Jungtinis Techninis Sekretoriatas’]). Details of the operation of the branch office in Vilnius will be laid down with administration contract between the Ministry of Environmental Protection and Regional Development of the Republic of Latvia and VšĮ ‘Jungtinis Techninis Sekretoriatas’.

The staff of the JS will be employed under Latvian law. The staff of the branch office will be employed under Lithuanian law.

The tasks of the JS and its branch office will vary during the implementation cycle of the Programme and shall include (among others): providing information to potential beneficiaries about funding opportunities and assisting beneficiaries in preparation and implementation of operations; project monitoring; involvement in the assessment of the project applications (at least administrative check and eligibility check); providing information about the Programme and projects; and communicating Programme results in the Programme regions.


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5.3. A summary description of the management and control arrangements

This section contains elements of the management and control system:

Designation of the main implementation structures

The MA, AA and the JS in establishment and conducting their tasks will be governed by Latvian law. The FLC and national bodies will be governed by the respective national law.

Managing Authority:

The Ministry of Environmental Protection and Regional Development of the Republic of Latvia continues was the MA from the 2007-2013 programming period. Therefore accumulated knowledge, administrative capacity, arrangements and staff are already in place.

The MA will be responsible for managing the Programme in accordance with the principle of sound financial management. It will perform the duties laid down in Article 125 and 126 of Regulation (EU) No 1303/2013 and Article 23 of Regulation (EU) No 1299/2013.

Monitoring Committee:

The Member States participating in the Programme will set up a joint MC within three months from the date of the notification of the European Commission’s decision approving the Programme.

The Programme’s MC will comprise representatives from both national and regional level as well as relevant partners from both participating countries. In order to ensure continuity between the preparation, implementation, and monitoring of the Programme it is foreseen to involve in the MC the same partners involved in the Programme’s preparation.

The MC will perform the duties listed in Article 47 of Regulation (EU) No 1303/2013 and Article 12 of Regulation (EU) No 1299/2013 and will make decisions on the selection of projects. The MC’s Rules of Procedure will be agreed by the MC at its first meeting.

Audit Authority:

The Ministry of Environmental Protection and Regional Development of the Republic of Latvia continues as the AA from the 2007-2013 programming period. The AA shall perform the duties listed in Article 127 of Regulation (EU) No 1303/2013 and Article 25 of Regulation (EU) No 1299/2013 including:

- the system audits to verify whether the management and control systems of the Programme are functioning effectively and assess systems assurance level;

- the audits of the accounts to verify expenditure that was incurred, during the relevant reference period and ensure for each accounting year, before the submission of the accounts to the European Commission, that the results of any audit or control activity are adequately reflected in the accounts when in


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audits or in controls that have detected ineligible expenditure or amounts at risk;

- the audits of operations on the basis of an appropriate sample to verify expenditure declared to the EC.

The AA shall plan the systems audits, audits of the accounts and audits of operations in such a way that each year it would be able to gain sufficient confidence whether the management and control system functions effectively, so as to provide a reasonable assurance that statements of expenditure presented to the European Commission are correct and as a consequence reasonable assurance that the underlying transactions are legal and regular.

The AA shall assess whether the Programme’s management and control system is working:

- according to the framework laid down in the Programme Document, according to the regulations of the EU, the Republic of Latvia and the Republic of Lithuania;

- with sufficient efficiency to minimise the potential failures and irregularities and ensure sufficient confidence about the legality and correctness of expenditure declared to the European Commission.

The AA shall ensure that audit work takes account of internationally accepted standards and that the audit opinion is in accordance with such standards (such as INTOSAI, IFAC and IIA), audit manuals and other specific documents including internal quality review procedures for audit process.

The AA shall present to the European Commission within eight months of the approval of the Programme an audit strategy covering the bodies which will perform the audits, the method to be used, the sampling method for audits of operations and the indicative planning of audits to ensure that the main bodies are audited and that audits are spread evenly throughout the programming period.

The AA is assisted by the GoA comprising a representative from each Member State. Audits of operations will be carried out by auditors designated by the Member States. The GoA will be coordinated by the AA. In addition, the AA will provide the auditors with guidance and manuals to perform the audits. Each member of the GoA representing a participating Member State shall carry out audits of operations on the basis of a sample provided by the AA.

The audits of operations to be carried out by the GoA members are limited to the Project partners located in the territory of the participating Member State represented by the GoA member.

The national member of the GoA reports the audit results to the AA. The AA will coordinate audit work for the whole Programme area.

By 31 December each year the AA:

- submits to the European Commission an Annual Control Report setting out the findings of the audits carried out during the previous 12 month-period ending on 30 June of the year concerned in accordance with the Audit


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Strategy of the Programme and reporting any shortcomings found in the systems for the management and control of the Programme;

- issues an opinion, on the basis of the controls and audits that have been carried out under its responsibility, as to whether the management and control system functions effectively, so as to provide a reasonable assurance that statements of expenditure presented to the European Commission are correct and as a consequence reasonable assurance that the underlying transactions are legal and regular.

By 15 February of the following financial year, the AA:

- provides the European Commission with an opinion of the AA, establishing whether the accounts give a true and fair view, whether expenditure for which reimbursement has been requested from the European Commission is legal and regular, and whether the control systems put in place function properly. The opinion shall also state whether the audit work puts in doubt the assertions made in the management declaration.

Management verifications

In accordance with Article 23(4) of Regulation (EU) No 1299/2013 the Member States are responsible for designating the body for carrying out verifications under point (a) of Article 125(4) of Regulation (EU) No 1303/2013 for carrying out such verifications in relation to Project partners on its territory (the FLC).

The Ministry of Environmental Protection and Regional Development of the Republic of Latvia will be responsible for setting up, coordinating and controlling the FLC system in Latvia. A centralised system will be used where the body carrying out FLC functions is the State Regional Development Agency. The approach of the 2007 – 2013 Programme will be continued.

Rules and procedures of establishing the FLC system in Lithuania are retained and continued from the 2007-2013 programming period. The Ministry of the Interior of the Republic of Lithuania will be responsible for setting up, coordinating and controlling the FLC system in Lithuania. A decentralised system introduced by the Ministry of the Interior of the Republic of Lithuania will be used. Lead partners/Project partners will choose external auditors using public procurement procedure and following requirements set by the Ministry of the Interior of the Republic of Lithuania. FLC costs will be included in the Lead partners’/Project partners’ budgets in the Application Form and will be covered from the project expenditure.

Management verifications of TA expenditure used by the MA, AA, JS and its branch office shall be arranged by respective Member State ensuring adequate separation of functions.


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Programme language

The official language for implementing the Programme shall be English.

Territories and beneficiaries

Organisations from all Programme regions can participate as Project partners in all Programme Priority Axes (if not stipulated differently for the respective Programme Priority).

The Programme uses the term ‘Lead partner’ or ‘Project partner’ in order to describe beneficiaries. A project supported from the Programme will be implemented by at least two Project partners (at least one from each Member State). During project implementation the Project partners will follow the ‘Lead partner’ principle: one of the Project partners shall be designated as the Lead partner according to Article 12 of the Regulation (EU) No 1299/2013. The Lead partner will be responsible for signing a Subsidy Contract on behalf of all Project partners.

The following organisations can apply as Lead and Project partners in the Programme:

- public authorities (national institutions, regional and local authorities);

- public equivalent bodies which means any legal body governed by public or private law:

o (a) established for the specific purpose of meeting needs for the general interest and not having industrial or commercial character,

o (b) having legal personality, and

� either financed, for the most part, by the state, or regional or local authorities,

� or other bodies governed by public law; or subject to management supervision by those bodies,

� or having an administrative, managerial or supervisory board, where more than half of the members are appointed by the state, regional or local authorities or by other bodies governed by public law;

- Non-governmental organisations (NGOs) constituting legal bodies that have been established for the specific purpose of meeting needs for the general interest and not having an industrial or commercial character, and having legal personality.

Target groups

The main target groups of the Programme are inhabitants and visitors of the Programme area.


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Assessment and selection of projects

The Programme will ensure that the projects selected will efficiently contribute to the Programme objectives. The Programme funding will be awarded via open calls and a direct award procedure:

- open call is a generally adopted procedure. Open calls will be launched according to a decision of the MC until the Programme’s funds are completely allocated;

- a direct award procedure will apply for a list of projects agreed between both Member States during the Programme preparation, under Priority Axis 2 (Investment Priority 2) for reconstruction of roads (information about the activities to be financed here are indicated in section 2.2. above concerning Priority Axis 2, Investment Priority 2);

- during programme implementation, the Member States may agree on additional direct award procedure.

Details concerning submitting of applications, assessment, selection and eligibility requirements of projects will be approved by the MC and described in the Programme Manual, which will be a legally binding document for the project applicants, project implementers, and the Programme implementing bodies.

Assessment and selection of projects will begin after Project proposals are received. Project assessment will consist of administrative check, eligibility check performed by the JS, and quality assessment ensured by the MA/JS. Upon necessity, the Member States might be asked to provide their opinion on the eligibility of the Project partners from their territory prior to a project’ approval by the MC. Assessment results will be submitted to the MC, which will be responsible for taking project approval/ rejection decisions. The MA/JS will officially inform the applicants about the results of the project selection. The MA, assisted by the JS, will prepare and sign the Subsidy Contract for the Lead partner of approved projects.

Project applications will be submitted through the Programme’s e-monitoring system established and monitored by the MA/JS. Assessment and monitoring of the projects will be carried out using the same system.

Complaints:

Complaints shall be submitted by the Lead partner. Complaints concerning the MC and the MA/JS decisions shall be submitted to the MA and will be examined and answered by the MA/JS. The MA shall review the complaint and if necessary shall ask the MC for an opinion. Based on the provided information by the MC, the MA answers the complaint. Complaints on the decisions of the GoA will be submitted to the AA. Complaints on the procedures under responsibility of Latvian FLC will be submitted to the corresponding National Authority. Complaints on the procedures under responsibility of Lithuanian FLC will be submitted according to provisions set within the FLC services contract. The complaint procedures will be described in detail in the Programme Manual.


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5.4. The apportionment of liabilities among the participating Member States

in case of financial corrections imposed by the Managing Authority or the

European Commission

Member states participating in the Programme will take responsibility for the use of the Programme’s ERDF co-financing in the following way:

- the MA shall ensure that any amount paid as a result of an irregularity is recovered from the Lead partner. Project partners shall repay the Lead partner any amount unduly paid to the respective partner;

- if the Lead partner does not succeed in securing repayment from other partners, or if the MA does not succeed in securing repayment from the Lead partner, the Member State on whose territory the Project partner concerned is located shall reimburse the MA for the amount unduly paid to that partner;

- in case of corrections arising from systemic errors or MC decisions, Member States jointly bear the financial consequences, whereby each Member State is responsible in proportion to the ERDF paid out to Project partners per Member State;

- in case of irregularity that result from fault or negligence by the MA, AA and/or the JS, the Member State hosting the MA, AA and/or the JS shall be responsible for reimbursing the amount concerned to the budget of the EU;

- In case of irregularity for the TA budget used by the MA, the AA, the JS or the branch office, the respective Member State hosting the MA, the AA, the JS or the branch office shall bear full liability for this expenditure.

5.5. Use of the Euro

Official currency of Latvia is Euro.

Lithuania has a long-term official fixed exchange rate of Litas against the Euro (3.4528 Litas per 1 Euro) (This exchange rate will be used until Lithuania will introduce Euro [preliminary – until 31st of December 2014] as the official currency of Lithuania).

Expenditure incurred in a currency other than Euro shall be converted into Euro by the beneficiaries in accordance with Article 28 of the Regulation (EU) No 1299/2013.

5.6. Involvement of partners

The drafting of the Programme was organised in compliance with the partnership approach as referred to in Article 5 of Regulation No 1303/2013. The JPC established by the Ministry of Environmental Protection and Regional Development of the Republic of Latvia and Ministry of the Interior of the Republic of Lithuania has coordinated the preparation of the Programme and has involved the partners (national and regional representatives, social partners, and experts from specific


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fields) in the preparation of the Programme. Members of the JPC were nominated by the responsible national authority for each Member State.

A wide partnership for the programming process has been achieved through thematic seminars held in both Member States. The seminars attracted more than 150 participants, including civil society representatives. They represented both partners from projects funded from the 2007-2013 Programme and organisations previously not involved in implementation of cross-border cooperation projects. The partners discussed the needs and challenges in the Programme regions and defined the topics relevant for cross-border cooperation in the Latvia – Lithuania programme area.

The intervention logic has been defined in consensus between the JPC based on the Member States’ priorities, analysis of the regional needs, and outcomes of thematic seminars. All comments and recommendations submitted by institutions involved in the JPC, when supported by other members of the JPC, have been incorporated in the Programme, or taken into consideration during its elaboration.

A public hearing was carried out during the 2nd quarter of 2014 in both Member States, to communicate and clarify the needs that the Programme is addressing. Also, the aim of this public hearing was to continue the dialogue and gather feedback from different partners and focus groups, as well as to increase awareness about the Programme.

Many of the partners currently involved in the preparation of the Programme are foreseen to be involved in the MC. Continuity between the preparation and implementation contributes to good implementation of the Programme and its objectives.


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SECTION 6:

COORDINATION

This section of the Programme document provides an overview about the coordination between the Programme and other funding instruments in the programme territory. It is essential to create synergies between efforts by different funding instruments, and at different levels, in order to allow financing of complementary actions by the Programme.

It is essential for the Programme to avoid duplication with other ESI Funds and other EU-funded initiatives and programmes.

The following mechanisms will support synergies and prevent overlapping:

- when submitting Project proposals, Lead partners and Project partners will ensure that the proposed project is not financed by other EU-funded programmes and they will give an outline on how the project is linked with any national and regional programmes and policies;

- coordination with relevant institutions responsible for the implementation of EU-funded programmes will be ensured by the JS, the MA, Latvian and Lithuanian National Authorities prior to the financing decisions on projects being made by the MC. Due diligence analysis will clarify whether projects applying for funding from the Programme have not already received financing from regional, national, or EU programmes;

- the Member States will strive for coordination of activities with other programmes that operate in the same territory, as well as with relevant national and regional policies and programmes, by using measures for national coordination;

- In Latvia, an advisory work group is set up to monitor the quality of development of ETC 2014–2020 programmes. Advisory group comprises representatives from line ministries, MAs of other EU funds, regions and social partners.

After the approval of the Programme, national coordination bodies will be established in both Member States.

The national coordination body in Latvia will ensure advisory functions in ETC programme implementation for the national responsible authority. The national coordination body will provide advice about coordinating complementarity and prevention of overlapping investments from other financial instruments/programmes. Within the national coordination body, representatives from line ministries, MAs of other EU funds, regions and social partners will be involved.


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The national coordination body in Lithuania will be an advisory body, comprising ministries’ representatives and other stakeholders. The main functions of the national coordination body will be to advise the Lithuanian members of the MCs about ETC programmes, mainly concerning eligibility of Lithuanian partners and purposefulness of their activities in the received project applications. The national coordination body will also be involved in disseminating information about the ETC programmes.


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SECTION 7:

REDUCTION OF ADMINISTRATIVE BURDEN FOR PROJECT

PARTNERS

During the period 2007-2013 a number of key administrative challenges for the partners were observed. These included requirements concerning copying/duplication of supporting project documents, long reimbursement processes, and lack of co-financing for the projects.

Simplification provisions were made during the period 2007-2013 (e.g. a simplified payment system involving a two-step check of the Project progress reports. Outcomes help to speed up payments to Project partners).

The following steps are proposed in order to reduce administrative burden for Lead and Project partners during 2014-2020 programming period.

‘Only once’ encoding principle

The ‘Only once’ encoding concept uses a new IT system for managing Programme interventions and in particular for the exchange of data. It allows for storage and sharing of data so that Project partners are asked to provide data and information only once. This reduces administrative burdens on them.

The Project partners are enabled to provide all data (project applications, progress reports, project change requests, etc.) requested for compliance electronically. A database system stores and shares the information between all programme authorities and bodies. Clear guidelines will be available on the information requested and the level of detail that is needed.

For Project partners this results in easier access and more cost-efficient administration of the project as the administrative burden is reduced. Claims are handled faster and there is a considerable reduction in time spent on the application and follow up processes. Transparency is improved because the Project partners are able to check the progress of their application in real time.

By applying this principle, efficiency of the Programme would be increased (significant amounts of time are lost in the existing system while waiting for official/signed documents for submission of progress reports, clarifications, letters, etc.). Monitoring and control system would also be improved by the ‘Only once’ system.

The main actions planned by the Programme are to elaborate the information system and the guidelines, and to organise training for potential applicants/Project partners.

The ‘Only once’ encoding principle is anticipated to be operational before launching the first call.


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Flat rate concept

In the Programme, Project partners can apply a flat rate for staff costs and administration costs.

By applying this principle, administrative burden will be reduced and delivery of payments will be speeded up. There will no longer be any need to trace every co-financed Euro to individual supporting documents, and the amount of supporting documents will decrease. Communication about the Programme funding rules to potential Project partners will be easier, and time spent on hourly rate calculations, timesheets, work agreement clarifications will be saved. The amount of change requests in the projects will be lower and reporting to the centralised FLC will be faster.

The main actions planed by the Programme are to develop rules and a methodology for Project partners, adjust information system and organise trainings for potential applicants/Project partners.

Exact flat rates will be based on calculations provided by the Programme. The time frame for this work will aim to start before launching the first call for proposals.

Other instruments

In addition, the Programme will consider and implement actions in order to reduce administrative burdens at project level. Options that might be considered on a case-by-case basis for each call for proposals shall be subject to the decision of the MC (and shall be stipulated in the Programme Manual) are the following (but are not limited to):

- pre-payments;

- more flexible approach of project budget (a certain percentage that can be reported in different work packages/budget lines without prior accept etc.);

- simplified procedure for introducing modifications in the approved projects.


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SECTION 8:

HORIZONTAL PRINCIPLES

8.1. Sustainable development

The Programme contributes to sustainable and cohesive socio-economic development in the border region by making it more competitive for economic and business development, as well as an attractive place for people to live, work, and visit. Sustainable development of the Programme area includes the following economic, social, and environmental dimensions:

- a safe and healthy life for current and future generations;

- a cooperative and prosperous economy and society for all;

- wise and efficient use and management of natural and renewable natural resources;

- raising high level of awareness among different actors and at all levels of society about the elements and processes leading to sustainability;

- sustainable transport.

The Programme will help to secure long-term improvements in quality of life through the creation of sustainable communities that are able to: manage and use resources efficiently and wisely; tap the ecological and social innovation potential of the economy; and ultimately ensure improved prosperity, environmental protection, and social cohesion for the long term.

Sustainable development will be taken into account as a horizontal principle during Programme implementation processes. All projects financed by the Programme will be asked to follow and demonstrate their contributions to the principle of sustainability (in economic, social, ecological, and cultural dimensions). Where appropriate, projects will also be required to apply environmental and spatial impact assessments. Project contributions to sustainable development principles will be monitored by the Programme. Project selection criteria concerning sustainable development will be described in the Programme Manual.

8.2. Equal opportunities and non-discrimination

The aim of this horizontal priority is not only to ensure equal opportunities for men and women but also to secure equal access to new opportunities for all people, and especially for socially excluded groups. The Programme’s emphasis on equal opportunity principles will help people from the border regions to: make full use of physical infrastructure; participate in education and training activities; upgrade skills or acquire new ones; and get any other direct or indirect assistance with a view to remain or become an active participant in economic and social life.


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Hence, the Programme’s implementation processes will help secure equal opportunities for socially excluded groups and assist them to take part in different measures and receive support. Programme activities will also facilitate a support framework for the aforementioned groups, with an emphasis on disadvantaged people and without prejudice to their gender, racial or ethnic origin, religion or belief, disability, age, or sexual orientation.

Activities financed by the Programme will particularly contribute to the following areas:

- promoting the interest of one or more groups at risk of discrimination on the basis of their gender, ethnic origin or race, religion or belief, disabilities, age, sexual orientation;

- promoting the integration of non-discrimination and equal opportunity initiatives with respect to employment, social inclusion, education, etc.

Projects financed by the Programme will be asked to follow universal design principles that refer to a broad-spectrum of equality issues including considerations during construction works, product and service developments. Specific requirements in relation to the universal design will be described in the Programme Manual. Where appropriate, projects will be asked to follow the principle of equal opportunities and non-discrimination principles and spatial impact assessments. The relevant criterions and follow-up implementation processes will beset by Programme implementing bodies.

8.3. Equality between men and women

Equal opportunities are an important component of the Programme’s strategic level objectives. Particular recognition is given to tasks and measures in the Programme concerning equal opportunities for men and women.

Programme support will cover many areas thereby consolidating gender equality and ensuring equal opportunities for men and women who are interested in seeking education, upgrading their skills, and improving employment. The 2007 – 2013 Programme experience shows that activities implemented during projects impacted on both men and women (without discriminating for or against one gender), therefore no specific requirements are necessary. For example, social inclusion projects helping persons with disabilities to integrate in the job market helped both men and women – the same approach is used through all of projects.

Taking into account experience from the previous programming period, Member States agreed that any specific actions or measures on Programme level to promote gender equality principles are not intended (and no specific selection criteria are foreseen) to favour the development of projects dealing with this issue.

Cooperation Programme documentLatvia – Lithuania Programme 2014

Figure 1: Programme Area:

Figure 2: Location of cross-

Cooperation Programme document Lithuania Programme 2014-2020

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ANNEX 1

TABLES AND FIGURES

:

-border road sections to be developed by the Programmethe Programme:


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Figure 3: Overview of specific objectives of the Programme

Table 1: Unemployment rates in Programme regions, %

2009 2010 2011 2012

Latvia (national average) 17.1 18.7 16.2 14.9

Kurzeme 15.0 15.9 15.1 13.0 Zemgale 19.7 22.5 18.5 17.3 Latgale 17.7 19.2 18.7 20.7 Lithuania (national average) 13.7 17.8 15.4 13.2

Klaipėda county 14.2 18.1 13.0 9.1 Panevėžys county 14.5 23.2 20.6 16.3 Šiauliai county 14.5 19.1 17.3 16.5 Telšiai county 16.8 22.5 19.3 14.8 Utena county 10.1 21.3 23.8 23.0 Kaunas county 13.2 16.9 13.3 10.7


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ANNEX 2

DOCUMENT LIST

Annex 2 includes list of the documents and statistics used to carry out the socio-economic analysis of the Programme area.

1) http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=nama_r_e3gdp&lang=en

2) Statistics from national statistical bureaus (www.csb.gov.lv;http://www.stat.gov.lt/) and http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=lfst_r_lfu3rt&lang=en

3) http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tsdsc330&plugin=0

4) http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Youth_unemployment

5) http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/files/countriessheets/2013/lithuania_en.pdf

6) http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/files/countriessheets/2013/latvia_en.pdf

7) https://www.lursoft.lv/lursoft-statistika/Statistikas-dati-Latvijas-regionu-griezuma&id=511;http://osp.stat.gov.lt/en/temines-lenteles51

8) http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=File:One-to-fiveyear_survival_rates_of_enterprises,_2010,_business_economy,_%28%25%29.png&filetimestamp=20130604082504#file

9) http://data.csb.gov.lv/Selection.aspx?px_path=transp__Ikgad%C4%93jie%20statistikas%20dati__T%C5%ABrisms&px_tableid=TU0091.px&px_language=lv&px_db=transp&rxid=09cbdccf-2334-4466-bdf7-0051bad1decd; http://osp.stat.gov.lt/en/rodikliai48

10) http://www.csb.gov.lv/statistikas-temas/iekszemes-kopprodukts-datubaze-30011.html

11) http://osp.stat.gov.lt/en/rodikliai42

12) Euro-barometer survey ‘Attitudes of Europeans towards the issue of biodiversityhttp://ec.europa.eu/public_opinion/flash/fl_290_en.pdf

13) http://helcom.fi/Documents/Ministerial2013/Associated%20documents/Supporting/PLC-5.5%20Extended%20Summary%20for%20MM2013.pdf

14) www.csb.gov.lv; http://www.stat.gov.lt/en/

15) http://www.csb.gov.lv/statistikas-temas/monetara-nabadziba-un-ienakumu-nevienlidziba-datubaze-30062.html

16) http://osp.stat.gov.lt/en/rodikliai18

17) Katherine Duffy. Social Exclusion and Human Dignity in Europe: Background Report for the Proposed Initiative. Council of Europe. 1995.

18) http://epp.eurostat.ec.europa.eu/portal/page/portal/income_social_inclusion_living_conditions/data/database

19) http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Glossary:Severe_material_deprivation_rate

20) http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_mdes04&


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ANNEX 3

ACTION PLAN FOR CALCULATION OF BASELINES AND TARGETS FOR RESULT

INDICATORS

1. Result indicator - 2.2.R2 ‘Traffic intensity on the renovated roads’

Source for baseline and target data:

- data request from national road administrations about actual and planned traffic intensity on renovated roads.

Source for data in 2023: - data request from national road administrations about actual changes in

traffic intensity on renovated roads.

Legal background for use of survey as method of setting the baseline: - EU DG Regio Guidelines ‘The Programming Period 2014-2020 Guidance

Document on Monitoring and Evaluation – European Regional Development Fund and Cohesion Fund – Concepts and Recommendations’.

Each result indicator requires a baseline value (art. 6, ERDF regulation, art. 5, CF regulation; art. 16, ETC regulation). A baseline is the value of a result indicator at the beginning of the programming period (for example, the number of start-ups in that year for a priority that intends to drive up the number of start-ups in a region). It can be available from statistical or administrative data. Especially for smaller interventions, it can be necessary to generate unavailable information, for example by surveys. Action plan to establish the baseline values:

− information request to be sent to the national road administrations by 15 July 2014;

− deadline for submission of data - 15 August, 2014; − calculation of baseline and target value – 1 September, 2014.

Alternatives, if data is not available:

- National road administrations will be asked to provide other data characterising the reconstructed roads, for example, actual and expected travel times in order to establish common data between both countries that could be used as alternative to the proposed result indicator.


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2. Result indicator - 3.1.R1 ‘Number of people benefitting from joint

social inclusion measures and social services’


- Survey of municipal institutions and NGOs (providing social services and promoting social inclusion) to establish the number (and the trend during the 2007 – 2013 period) of people benefitting from joint social inclusion measures and social services in the Programme area.

Source for data in 2023: - Survey of municipal institutions and NGOs of actual number of people

receiving improved social services through cooperation and benefitting from joint social inclusion measures.

Collected data will allow establishing the trend on how people living in the Programme area are benefitting from joint social services and inclusion measures (specifically improved from cooperation)) and will allow understanding about the wider implications and effects of cooperation, especially in the social sphere. The Programme expects that improved services will lead to increased number of persons benefitting thus confirming the added value of cooperation. Legal background for use of survey as method of setting the baseline:

- EU DG Regio Guidelines ”The Programming Period 2014-2020 Guidance Document on Monitoring and Evaluation – European Regional Development Fund and Cohesion Fund – Concepts and Recommendations”.


− information request to be sent by 15 July, 2014; − deadline for submission of data - 15 August, 2014; − calculation of baseline and target value – 1 September, 2014.


- Data from national statistics bureaus/regional and municipal administration about number of people using social services in the Programme regions could be used, however they lack the cooperation element thus, if necessary, data should be carefully analysed before using it for setting baselines and targets.


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3. Result indicator - 4.1.R1 ‘Number of joint new solutions applied

improving to the existing public services’


- Survey of other cross-border cooperation programmes operating in the Programme area (if necessary and in case of lack of data, municipalities might surveyed as well) to quantify the impact of cross-border cooperation on improvement of public services.

Source for data in 2023: - Survey on actually improved public services in the Programme area from the

cross-border cooperation. The Programme expects that projects will contribute to the increased efficiency of public services by introducing new cross-border cooperation solutions. Collected data will allow establishing actual trends of improving public services through cooperation. The baseline will be established based on the data provided on how new cooperation solutions are applied to public services. Legal background for use of survey as method of setting the baseline:

- EU DG Regio Guidelines ”The Programming Period 2014-2020 Guidance Document on Monitoring and Evaluation – European Regional Development Fund and Cohesion Fund – Concepts and Recommendations”.


− information request to be sent by 15 July, 2014; − deadline for submission of data - 15 August, 2014; − calculation of baseline and target value – 1 September, 2014.


- Data from municipalities about public services improved through cooperation will be number of people using social services in the Programme regions could be used, however they lack the cooperation element thus, if necessary, data should be carefully analysed before using it for setting baselines and targets.


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ANNEX 4

ANNUAL INSTALMENTS OF THE TECHNICAL ASSISTANCE CO-FINANCING

Table 1 National contributions to TA budget 2015 - 2022 Member State National co-financing of the TA budget, EUR

Latvia 493 004

Lithuania 437 193

Total 930 197

Table 2 Annual contributions by Member States in TA budget 2015-2022

2015 2016 2017 2018 2019 2020 2021 2022 2015-2022

Latvia 61 625 61 625 61 625 61 625 61 626 61 626 61 626 61 626 493 004

Lithuania 54 649 54 649 54 649 54 649 54 649 54 649 54 649 54 650 437 193

Total 116 274

116 274

116 274

116 274

116 275

116 275

116 275

116 276

930 197