A new mechanism to guide large and strategic investment projects

By approving amendments to the Regulation of the Coordination Council for Large and Strategically Significant Investment Projects, the Cabinet of Ministers decided in the 9 April meeting to improve coordination and decision-making on large and strategically important investment projects in Latvia.

The amendments to the Regulation introduce a more efficient decision-making process in the work of the Coordination Council for Large and Strategically Significant Investment Projects (hereinafter – Council) with the aim of monitoring the management and implementation of large and strategically significant investment projects in Latvia. The Council will be able to consider and decide on regulatory amendments, support mechanisms, complementary infrastructure or other investments and measures needed to implement specific investment projects. The amendments to the Council’s Regulation clarify the Council’s composition, functions, tasks and rights, as well as the frequency of its meetings.

“Our aim is to make the Council a central institution under the leadership of the Prime Minister, which identifies and monitors the progress of all major investment projects in Latvia, regardless of whether they are foreign investments in Latvia or development projects of Latvian companies with an investment volume of at least 10 million euros or an export volume of 5 million euros. We are also thinking about mechanisms to collect all information on such projects within the Council, not only including those that are updated through the Investment and Development Agency of Latvia but also through all Latvian municipalities, as well as business consulting companies,” emphasises the Minister of Economy Viktors Valainis. 

An operational working group on large and strategically important investment projects (“Working group”) will be set up to assess investment projects and prepare draft decisions more efficiently. The task of the Working group will be to prepare proposals for decisions to be taken by the Council on the successful implementation of investment projects of importance to the Latvian economy and to monitor the implementation of decisions taken at Council meetings. The Working group will be set up by the Ministry of Economy. 

The amendments also streamline the composition of the Council, making it six institutions – the Prime Minister, the Minister of Economy, the Minister of Finance, the Minister of Foreign Affairs, the Minister of Transport and the Minister of Environmental Protection and Regional Development. Simultaneously, the amendments prepared by the Ministry of Economy provide that the Chairman of the Council shall invite representatives of other state institutions, capital companies, as well as public organisations and social partners, who are affected and concerned by the issue to be discussed at the Council meeting, to participate in the Council meeting.

The Council’s assignment has also been clarified, which is to decide on the necessary measures to promote specific large and strategically important investment projects in order to facilitate the successful implementation of investment projects that are important for the Latvian economy. It also states that the Council’s agenda will be set by its Chairman, taking into account the proposals made by the Working group. The regularity of Council meetings has been clarified accordingly, with Council meetings to be convened as necessary, but at least every two months.

Finally, the tasks of the Investment and Development Agency of Latvia (hereinafter – Agency) as the Secretariat of the Council are clarified. The Agency will forward proposals and reports prepared by the Working group on the implementation of specific large and strategically important investment projects to the Council for consideration, monitor the implementation of Council decisions, and keep the Council and the Working group informed of progress in the implementation of decisions.

Detailed information on the amendments to Cabinet of Ministers Regulation No. 774 of 10 August 2010 “Regulations of the Coordination Council for Large and Strategically Significant Investment Projects” can be found in the Legal Acts Portal.

Author: Ministry of Economy