Partnership Agreement for the European Union Investment Funds Programming Period 2014 – 2020 MODIFICATIONS: THE CABINET OF MINISTERS OF LATVIA ORDER NO363 (23.07.14.) RIGA 2014 FMPlans_230714_PA_updated; Partnership Agreement for the European Union Investment Funds Programming Period 2014 – 2020 TABLE OF CONTENTS ABBREVIATIONS AND TERMS USED ................................................................................................. 4 1. Alignment with the Union strategy of smart, sustainable and inclusive growth ......................... 7 1.1. Analysis of differences, development needs and growth potential .............................................. 7 Low economic productivity and dissatisfactory achievements in innovation, research and science .. 8 Quality of transportation infrastructure hindering economic development ....................................... 25 Inefficient use of resources ................................................................................................................ 29 High poverty and unemployment rate, especially long-term and youth unemployment. .................. 40 Insufficient quality and unconformity of education with the requirements of labour market ........... 48 Territorially unbalanced economic development .............................................................................. 63 1.2 Summary of Ex-ante evaluation ...................................................................................................... 77 1.3. Selected thematic objectives and investment priorities .................................................................. 80 Strengthening research, technological development and innovation ................................................ 80 Enhancing access to and use and quality of ICT ............................................................................... 82 Enhancing the competitiveness of SMEs, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF). ............................................................................................. 83 Supporting the shift towards a low-carbon economy in all sectors ................................................... 85 Promoting climate change adaptation and risk prevention and management .................................... 87 Protecting the environment and promoting resource efficiency ........................................................ 89 Promoting sustainable transport and removing bottlenecks in key network infrastructure ............... 96 Promoting stable, quality employment and supporting labour mobility ........................................... 98 Promoting social inclusion and combating poverty and any kind of discrimination ...................... 100 Investing in education, skills and lifelong learning ......................................................................... 104 Enhancing institutional capacity of public institutions and stakeholders and efficient public administration .................................................................................................................................. 110 1.4. INDICATIVE BREAKDOWN OF FUNDING BY THEMATIC OBJECTIVES (EUR) .......... 123 1.5. Horizontal principles .................................................................................................................... 126 1.5.1. Partnership principles ............................................................................................................ 126 1.5.2. Promotion of equality between men and women, non-discrimination and accessibility ...... 131 1.5.3. Sustainable development ....................................................................................................... 133 1.5.4. Horizontal policy aim ............................................................................................................ 135 1.6. List of ERDF, ESF, CF, YEI programmes, except the ones implemented within framework of European Territorial cooperation objective, as well as EAFRD and EMFF with indicative financing from ESI funds allocation by years ..................................................................................................... 137 1.7. Planned changes of structural funds investment by categories of regions ................................... 140 1.8. Transformation from ETC targeted investments to Growth and employment objectives ............ 140 1.9. Technical assistance transformation request EC .......................................................................... 140 1.10. Information on planned financing for Execution reserve allocation by ESI funds, where applicable, regional categories and not attributable financing volumes for calculation of Execution reserve (EUR) 141 2. Measures towards efficient implementation of ESI funds ............................................................ 142 2.1. Coordination of the Aid ................................................................................................................ 142 2.2. Ex-ante verification of compliance with the rules on additionally .............................................. 149 2.3. Summary on fulfilment of the ex-ante conditionalities ................................................................ 150 2.4. The methodology and mechanism to ensure consistency in the functioning of the performance framework ........................................................................................................................................... 167 2 FMPlans_230714_PA_updated; Partnership Agreement for the European Union Investment Funds Programming Period 2014 – 2020 2.5. evaluation of the necessity to increase administrative capacity of the institutions involved in OP management and control and, if applicable, of beneficiaries, and summary of actions to be implemented for this purpose, if necessary ............................................................................................................... 168 2.6. summary on the planned actions in the programmes for reduction of administrative burden for beneficiaries, including indicative schedule for their implementation ................................................ 173 3. Integrated development of the territories ....................................................................................... 178 3.1. Measures towards ensuring integrated development of the territories ......................................... 180 3.1.1. Local development directed by society ................................................................................. 180 3.1.2. Integrated territorial investments (ITI) .................................................................................. 181 3.1.3. Sustainable development of urban environment .................................................................... 181 3.1.4. ETC, areas of cooperation and EUSBSR .............................................................................. 184 3.1.5. Territories with the highest level of poverty, greatest risk of discrimination or social exclusion, especially in the risk groups. ........................................................................................................... 187 3.1.6. Demographic challenges in the regions ................................................................................. 188 4. implementation of efficient pa and operation programmes .......................................................... 190 4.1. E-funds ......................................................................................................................................... 190 3 FMPlans_230714_PA_updated; Partnership Agreement for the European Union Investment Funds Programming Period 2014 – 2020 ABBREVIATIONS AND TERMS USED HEI Higher Education Institutions RES Renewable energy sources ARACHNE EU risk scoring tool which can increase efficiency of selection of projects, management audits and support fraud detection, discovery, prevention. MFA Ministry of Foreign Affairs BEMIP Baltic Energy Market Interconnection Plan EUSBSR EU Strategy for the Baltic Sea Region COSME Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises CEF Connecting Europe Facility CFCA Central Finance and Contracting Agency OP Operational Programme NRS Natural Resources Tax EIB European Investment Bank EEA European Economic Area EPS Electronic Procurement System EMFF European Maritime and Fisheries Fund ESF Economic size category of agricultural farms EC European Commission EC Position Document European Commission Position Document, presented on 4 December 2012 EMT Electrical means of transportation EAFRD European Agricultural Fund for Rural Development MoE Ministry of Economics EHEA European Higher Education Area E-government Information technology solutions for supporting implementation of ESI ERDF European Regional Development Fund EU European Union EQAR European Quality Assurance Register Strategy „Europe 2020” Europe 2020: strategy for smart, sustainable and inclusive growth ESF European Social Fund ESI funds ESF; ERDF; CF;EAFRD; EMFF EU Council European Union Council Recommendations on Latvia’s National Recommendation Reform Programme 2013 and delivering Council Opinion on Latvia’s Convergence Programme 2012 - 2016 ESCO Energy Service Company ETC European Territorial Cooperation EUR Euro of European Union ISN Internal Security Fund FOP Fisheries operational programme MoF Ministry of Finances MIA Ministry of Internal Affairs