Procedures For Planning of State Budget Resources for the Implementation of Programmes for Objective 3 of the European Union Structural Funds "European Territorial Cooperation" and Programmes of the European Neighbourhood and Partnership Instrument and for Making of Payments

Issued pursuant to
Section 24, Paragraph two, Clause 4 of the Law On the
Management of Programmes for Objective 3 of
European Union Structural Funds
"European Territorial Co-operation"

I. General Provisions

1. This Regulation prescribes the procedures by which State budget resources shall be planned for the implementation of programmes for Objective 3 of the European Structural Funds "European Territorial Cooperation" and programmes of the European Neighbourhood and Partnership Instrument (hereinafter - programmes) and of the projects financed thereby (hereinafter - project) and by which payments shall be made.

2. Resources shall be planned in the State budget:

2.1. for financial beneficiaries of programmes in Latvia:

2.1.1. for local governments and the institutions established thereby;

2.1.2. for planning regions;

2.1.3. for associations or foundations;

2.1.4. for local government or State capital companies, if the planned granting of State budget resources for the implementation of projects is not considered aid for commercial activity within the meaning of the Law On Control of Aid for Commercial Activity; and

2.1.5. for sectoral ministries and the institutions subordinate thereto;

2.2. for financial beneficiaries of programmes in the partner countries of the programme.

3. State budget resources shall be planned for the implementation of the following programmes:

3.1. the programmes to be implemented with the support of the European Regional Development Fund:

3.1.1. Latvia-Lithuania Cross-border Cooperation Programme;

3.1.2. Latvia-Estonia Cross-border Cooperation Programme;

3.1.3. Central Baltic Sea Region Cross-border Cooperation Programme;

3.1.4. Baltic Sea Region Transnational Cooperation Programme;

3.1.5. Inter-regional Cooperation Programme INTERREG IVC;

3.1.6. Urban Development Network Programme URBACT II;

3.1.7. ESPON 2013 Programme (European Spatial Planning Observation Network); and

3.1.8. programme for good administration of territorial cooperation programmes INTERACT II;

3.2. the programmes to be implemented with the support of the European Neighbourhood and Partnership Instrument:

3.2.1. Estonia-Latvia-Russia Cross-border Cooperation Programme; and

3.2.2. Latvia-Lithuania-Byelorussia Cross-border Cooperation Programme.

4. The financing sources of programmes shall be the co-financing of the European Regional Development Fund or the European Neighbourhood and Partnership Instrument and State budget financing in accordance with the amount of the national financing of Latvia.

5. The projects of programmes referred to in Paragraph 3 of this Regulation shall be financed in accordance with the proportions of the financing sources specified in the regulatory enactments of the European Union Structural Funds.

II. Planning of State Budget Resources Anticipated for Programmes, Technical Assistance Priorities and Projects of Programmes

6. Sectoral ministries and the institutions subordinate thereto shall plan the following in the budget of the relevant sectoral ministries for the programmes referred to in Paragraph 3 of this Regulation (except the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation):

6.1. resources for the current year and long-term liabilities of the State budget (shall be planned in a separate State budget programme or sub-programme as a State budget subsidy from general revenue for the provision of the co-financing of the European Regional Development Fund and the European Neighbourhood and Partnership Instrument and the State budget financing for the projects approved by sectoral ministries and the institutions subordinate thereto); and

6.2. refund of the co-financing to the State basic budget for projects of the relevant sectoral ministry and the institutions subordinate thereto (shall be planned as foreign financial assistance).

7. Co-financing shall be planned in the budget of the Ministry of Regional Development and Local Government as a State budget subsidy from general revenue for the current year, as well as long-term liabilities of the State budget as a subsidy from general revenue:

7.1. for the projects approved by the Ministry of Regional Development and Local Government and the institutions subordinate thereto in the programmes referred to in Paragraph 3 of this Regulation - in accordance with the financing schedule of the relevant project;

7.2. for the technical assistance priorities of a programme of annual contributions by the Republic of Latvia as a Member State of the programmes referred to in Paragraph 3 of this Regulation (except the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation - in accordance with the budget expenditure classification code "International cooperation";

7.3. for the technical assistance priorities of a programme of annual contributions by the Republic of Latvia as a Member State of the programmes referred to in Sub-paragraph 3.1.1 and 3.2.1 of this Regulation - as current expenditure and capital expenditure, in order to ensure the management and administration of programmes;

7.4. the financing on the part of Latvia for the part of the project in which the financial beneficiary of programmes from the Republic of Latvia is participating, if it requests State budget resources - State budget resources in the amount of 5 per cent shall be planned as follows for the programmes referred to in Sub-paragraphs 3.1.1, 3.1.2, 3.1.3 and 3.2 of this Regulation:

7.4.1. if the beneficiary of the State budget co-financing is the financial beneficiary referred to in Sub-paragraphs 2.1.1 and 2.1.2 of this Regulation, expenditure shall be planned according to the budget expenditure classification code "State budget subsidies and other transfers to local governments and to derived public persons partly financed from the State budget (except local governments)"; and

7.4.2. if the beneficiary of the State budget co-financing is the financial beneficiary referred to in Sub-paragraphs 2.1.3 and 2.1.4 of this Regulation, expenditure shall be planned according to the budget expenditure classification code "Subsidies and grants for merchants, associations and foundations, except agricultural production".

8. Co-financing of the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation shall be planned in the budget of the Ministry of Regional Development and Local Government as foreign financial assistance for the current year, as well as State budget long-term liabilities according to the anticipated priorities in the programmes, international agreements of the programmes and the division of the financing by years:

8.1. the co-financing of a programme, which is provided for the financial beneficiaries referred to in Sub-paragraphs 2.1.1 and 2.1.2 of this Regulation, shall be planned according to the budget expenditure classification code "State budget subsidies and other transfers to local governments and to derived public persons partly financed from the State budget (except local governments)";

8.2. the co-financing of a programme, which is provided for the financial beneficiaries referred to in Sub-paragraphs 2.1.3 and 2.1.4 of this Regulation, shall be planned according to the budget expenditure classification code "Subsidies and grants for merchants, associations and foundations, except agricultural production";

8.3. the co-financing of a programme, which is provided for the financial beneficiaries referred to in Sub-paragraph 2.1.5 of this Regulation, shall be planned according to the budget expenditure classification code "Transfers of the State budget maintenance expenditure";

8.4. the co-financing of a programme, which is provided for the financial beneficiaries referred to in Sub-paragraph 2.2 of this Regulation, shall be planned according to the budget expenditure classification code "International cooperation"; and

8.5. the co-financing of the European Community received for technical assistance priorities of programmes and the annual contributions of other Member States of the programme shall be planned as current expenditure and capital expenditure, in order to guarantee the operation of the management and control systems of programmes.

9. If the leading partner (the partner who signs the financing agreement with the managing authority) is the financial beneficiary referred to in Sub-paragraphs 2.1.2 and 2.1.5 of this Regulation in the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation, the part of the co-financing for a programme received by the relevant authority shall be planned in the State budget as a transfer from the State basic budget resources of foreign financial assistance to the State basic budget for the current year, as well as State budget long-term liabilities in accordance with the priorities anticipated in the project and the division of the financing granted by years:

9.1. the part of the leading partner for refund of the co-financing of a project shall be planned in the State budget according to the budget expenditure classification code "Refund of the maintenance expenditure to the State budget";

9.2. the part of the co-financing for project partners, which are the financial beneficiaries referred to in Sub-paragraphs 2.1.1 and 2.1.2 of this Regulation, shall be planned according to the budget expenditure classification code "State budget subsidies and other transfers to local governments and to derived public persons partly financed from the State budget (except local governments)";

9.3. the part of the co-financing for project partners, which are the financial beneficiaries referred to in Sub-paragraphs 2.1.3 and 2.1.4 of this Regulation, shall be planned according to the budget expenditure classification code "Subsidies and grants for merchants, associations and foundations, except agricultural production";

9.4. the part of the co-financing for project partners, which are the financial beneficiaries referred to in Sub-paragraph 2.1.5 of this Regulation, shall be planned according to the budget expenditure classification code "Transfers of the State budget maintenance expenditure"; and

9.5. the part of the co-financing for project partners, which are the financial beneficiaries referred to in Sub-paragraph 2.2 of this Regulation, shall be planned according to the budget expenditure classification code "International cooperation".

10. If the financial beneficiary referred to in Sub-paragraphs 2.1.2 and 2.1.5 of this Regulation in the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation is not the leading partner, the part of the co-financing received for a programme shall be planned in the budget of the relevant authority as a transfer from the State basic budget resources of foreign financial assistance to the State basic budget for the current year, as well as State budget long-term liabilities in accordance with the priorities anticipated in the project and the division of the financing granted by years:

10.1. the part of the co-financing for the maintenance expenditure shall be planned according to the budget classification code "Refund of the maintenance expenditure to the State budget"; and

10.2. the part of the co-financing for capital expenditure shall be planned according to the budget expenditure classification code "Refund of capital expenditure to the State basic budget".

III. Preparation of Requests for State Budget Resources for Programmes, Technical Assistance Priorities and Projects of Programmes

11. Sectoral ministries shall prepare the relevant requests for State budget resources in accordance with Paragraph 6 of this Regulation, and the Ministry of Regional Development and Local Government - in accordance with Paragraphs 7 and 8 of this Regulation.

12. If the Ministry of Regional Development and Local Government needs additional information for the preparation of a request for State budget resources, the financial beneficiary of a programme shall, after receipt of a written request for information, provide the necessary information within the deadline indicated by the Ministry of Regional Development and Local Government.

13. The Ministry of Regional Development and Local Government shall include the following information in the request for State budget resources:

13.1. the amount of financing allocated to the programmes referred to in Paragraph 3 of this Regulation in the relevant year;

13.2. the amount of State budget long-term liabilities;

13.3. the existing and additional financing necessary for the implementation of the projects of the financial beneficiaries for the programmes referred to in Sub-paragraphs 2.1.1, 2.1.3 and 2.1.4 of this Regulation, for technical assistance priorities of programmes, and for the implementation of the projects of the Ministry of Regional Development and Local Government and the institutions subordinate thereto; and

13.4. the co-financing of the financing sources of the programme - the European Regional Development Fund or the European Neighbourhood and Partnership Instrument - and State budget resources in accordance with the amount of the national financing of Latvia.

14. Sectoral ministries shall include the following information in the request for State budget resources:

14.1. the amount of the financing allocated to the project in the relevant year;

14.2. the amount of State budget long-term liabilities;

14.3. the existing and additional financing necessary for the implementation of the projects of sectoral ministries and the institutions subordinate thereto;

14.4. the co-financing of the financing sources of the project - the European Regional Development Fund or the European Neighbourhood and Partnership Instrument - and State budget resources in accordance with the amount of the national financing of Latvia;

14.5. the planned refund of the co-financing to projects of sectoral ministries and the institutions subordinate thereto from the European Regional Development Fund or the European Neighbourhood and Partnership Instrument in division by years for the entire duration of the implementation of the project; and

14.6. information regarding the co-ordination of the financing granted to a project with the Ministry of Regional Development and Local Government.

15. In order to receive the co-ordination referred to in Sub-paragraph 14.6 of this Regulation, a sectoral ministry shall submit a certified copy of the contract to the Ministry of Regional Development and Local Government. The Ministry of Regional Development and Local Government shall examine the information submitted by the sectoral ministry and provide an opinion whether funding is anticipated for the relevant project and in what amount.

16. Sectoral ministries, the institutions subordinate thereto and planning regions shall ensure that the co-financing of the European Regional Development Fund or the European Neighbourhood and Partnership Instrument for the refund of financial resources is paid into the State budget within 10 days after receipt thereof.

IV. Procedures for Making Payments

17. After adopting of the Law On the State Budget for the current year or amendments thereto, the following shall be prepared in accordance with the procedures specified in the regulatory enactments regarding the implementation of the budget:

17.1. sectoral ministries - a financial plan individually for each project as regards the approved project of the sectoral ministry and the institutions subordinate thereto, in accordance with Paragraph 6 of this Regulation; and

17.2. the Ministry of Regional Development and Local Government - an individual financial plan in accordance with Paragraphs 7 and 8 of this Regulation.

18. If the leading partner is the financial beneficiary referred to in Sub-paragraphs 2.1.1, 2.1.2, 2.1.5 and 2.2 of this Regulation in the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation, the Ministry of Regional Development and Local Government shall perform the transfer of the co-financing within the deadlines specified in the programme to the account of the leading partner in the Treasury, which is indicated in the financing agreement of the leading partner and the managing authority of the programme or in the approved current progress report of the project.

19. If the leading partner is the financial beneficiary referred to in Sub-paragraphs 2.1.3 and 2.1.4 of this Regulation in the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation, the Ministry of Regional Development and Local Government shall transfer the co-financing to the leading partner within the deadlines specified in the programme to the account of the authority, which is indicated in the financing agreement of the leading partner and the managing authority of the programme or in the approved current progress report of the project.

20. Payments to the leading partner within the scope of the programmes referred to in Paragraph 3 of this Regulation (except the programmes referred to in Sub-paragraphs 3.1.1 and 3.2.1 of this Regulation) shall take place in accordance with the procedures and deadlines specified in the programmes, as well as in accordance with the financing agreement of the leading partner and the managing authority of the programme.

21. Cabinet Regulation No. 752 of 15 September 2008, Procedures for Planning and Granting of State Budget Resources to Financial Beneficiaries from the Republic of Latvia for Programmes of Objective 3 of the European Union Structural Funds "European Territorial Cooperation" (Latvijas Vēstnesis, 2008, No. 150), is repealed.

Prime Minister V. Dombrovskis

Minister for Regional Development
and Local Government E. Zalāns

Translation © 2010 Valsts valodas centrs (State Language Centre)