---------- Forwarded message ----------
From: TERRA Mileniul III <[EMAIL PROTECTED]>
Date: Mar 22, 2006 4:05 PM
Subject: [Mediu] PRESS RELEASE: Fists fly for EU funds in Latvia
To: Lista mediu <[EMAIL PROTECTED]>
Press release: March 22, 2006
Fists fly for EU funds in Latvia
Riga, Latvia -- The sight of Latvian business people literally fighting this week to get access to millions of EU regional aid has provoked strong criticism from environmental groups over the low quality, 'first come-first served' approach to EU funds disbursement preferred by Latvia's authorities. Police officers were required to get involved in order to maintain some order and prevent brutal fights among those queuing, but a shake-up of Latvia's procedures for EU funds would avoid such scenes in the future, the NGOs said, and also bring about better quality projects.
Queues of business people started forming outside the Latvian Investment and Development Agency on March 16 to submit project applications to the "Support for modernisation of infrastructure in enterprises" program, which is financed through the European Regional and Development Fund. [1] The program's EUR 33.45 million funds ran out within three hours of the official opening on March 20, with 56 applications accepted and a lot more disappointed people left outside.
Environmental NGOs in Latvia believe that this current approach favours low-quality projects that are of marginal strategic importance from the economic and environmental points of view. They are critical of this 'first come-first served' approach and the evaluation system for project proposals which neglect the impact of selected projects on the environment, employment and regional development. [2]
Alda Ozola, of Latvian Green Movement and CEE Bankwatch Network's Latvian EU Coordinator, explained: "Under the current Latvian system, when projects are submitted the only question that needs to be answered regarding its impact on the environment is "whether the project will affect the environment", and the answer provided in the sample application form and always used by applicants is that there will be no impact. But every activity is going to have some impact, either positive or negative. The system also favours businesses based in Riga or the Riga region, leaving almost no chance for the modernisation of business infrastructure in other towns or rural areas."
For the 2004-2006 EU Funds programming, these problems were pointed out in 2004 and 2005 by NGOs to the Latvian monitoring committee on EU funds and to responsible state institutions. However the NGOs' advice was ignored.
Like other new member states, Latvia now has to move very quickly with decisions for the programming of EU funds for the 2007-2013 period, with total allocations for Latvia (from both the structural funds and the Cohesion fund) of EUR 4 billion at stake. Environmental NGOs are actively following the process and submitting comments about priorities and other ongoing problematic areas.
Alda Ozola concluded: "Although the implementation system and financing criteria are still to be discussed in Latvia for the 2007-2013 period, we certainly hope that some benefit will come from this week's fight outside
the Latvian Investment and Development Agency. It should now strike decision-makers in the Latvian ministries between the eyes that in the future they are going to have to apply quality criteria when it comes to distributing taxpayers' money via the EU funds."
For more information, contact:
Alda Ozola
Latvian Green Movement/CEE Bankwatch Network
Meza Street 4, Riga
Tel.: + 371 9173047
[EMAIL PROTECTED]
Notes for editors:
1. The program supports business projects that are focused on the modernisation of infrastructure and production tools. Since the demand for modernisation is high, it has been very popular with Latvian businesses. The program closed soon after EU funds implementation for the 2004-2006 period started in mid-2004 after all the money available was allocated for business projects. This additional EUR 33.45 million was recently found due to the shuffling of money from other programs and due to changes in the exchange rate.
2. The same approach of 'first come-first served' has also been used in the implementation of programs focused on the development of rural tourism, infrastructure and equipment in farming and the modernisation of fishing vessels.
==========================
Greig Aitken
Media coordinator
CEE Bankwatch Network
Bratislavska 31
602 00 Brno
Czech Republic
Tel. + (420) 545 214 431, ext 19
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