Text consolidated by Valsts valodas centrs (State
Language Centre) with amending law of:
6 December 2023 [shall come
into force on 9 December 2023].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima1 has adopted and
the President has proclaimed the following law:
Law on Management of European
Union Funds for the 2021-2027 Programming Period
Chapter I
General Provisions
Section 1. Terms Used in the Law
The following terms are used in the Law:
1) responsible institution - a sectoral ministry or the
State Chancellery which as an intermediary body implements a part
of the functions of the managing authority specified in
Regulation (EU) No 2021/1060 of the European Parliament and of
the Council of 24 June 2021 laying down common provisions on the
European Regional Development Fund, the European Social Fund
Plus, the Cohesion Fund, the Just Transition Fund and the
European Maritime, Fisheries and Aquaculture Fund and financial
rules for those and for the Asylum, Migration and Integration
Fund, the Internal Security Fund and the Instrument for Financial
Support for Border Management and Visa Policy (hereinafter -
Regulation No 2021/1060);
2) eligible State budget co-funding - a part of the
State budget funding which is planned in addition to the funding
of European Union fund to cover the eligible expenditures of a
project;
3) beneficiary -
a) an institution of direct or indirect administration,
derived public entity, another State institution the project
application of which is approved in accordance with the
procedures laid down in this Law;
b) a natural person who has not been registered as a performer
of economic activity and does not intend to perform economic
activity or a natural person or an association of such persons
who or which has been registered as a performer of economic
activity or intends to perform economic activity (hereinafter -
the natural person) and whose project application has been
approved in accordance with the procedures laid down in this
Law;
c) a legal person registered in the Republic of Latvia
according to the legal form and legal status of the person or an
association of such persons (hereinafter - the legal person) the
project application of which has been approved in accordance with
the procedures laid down in this Law;
d) a legal person which implements financial instruments in
accordance with Article 2(9)(e) of Regulation No 2021/1060;
4) planning documents - a partnership agreement and the
European Union's Cohesion Policy Programme for 2021-2027
(hereinafter - the Programme);
5) project applicant - an institution of direct or
indirect administration, derived public entity, another State
institution, the natural person, and also the legal person which
submits a project application;
6) project application - an aggregate of information
and documents regarding the planned project submitted by a
project applicant in the Cohesion Policy Funds Management
Information System in order to apply for the funding necessary
for the project from the European Regional Development Fund, the
European Social Fund Plus, the Cohesion Fund, or the Just
Transition Fund (hereinafter collectively - the European Union
funds, each separately - the European Union fund);
7) file of a project - a project application, project
application evaluation documents, civil legal contract
(hereinafter - the Contract) or agreement on project
implementation, and other documents related to the project;
8) project - a project application which corresponds to
the project application evaluation criteria and which is approved
by the co-operation institution;
9) project application selection - the process from
sending the notification of a call for open project application
selection or a call for submitting project applications in a
restricted project application selection until the moment when
the decision to approve or reject a project application or an
opinion on the compliance with the conditions included in the
decision has come into effect;
10) project application selection methodology - a
document which contains a description of the types of project
application evaluation criteria, development and evaluation
principles, and also of the principles for project application
selection;
11) project application selection regulations - an
aggregate of documents where information on the procedures for
the submission of project applications and the evaluation
thereof, the project application evaluation criteria, the
methodology for the application of such criteria, a draft
contract or agreement on project implementation, and other
information necessary for project application selection is
included;
12) project application evaluation criteria -
conditions in accordance with which a project application is
assessed and the decision on its approval, approval with a
condition or rejection is taken;
13) methodology for the application of the project
application evaluation criteria - a document which contains
an explanation of the application of each criteria for the
project application evaluation;
14) co-operation institution - an institution of direct
administration which, in the amount laid down in this Law, as an
intermediate body implements a part of the functions of the
managing authority specified in Regulation No 2021/1060;
15) State budget co-funding rate - the eligible State
budget co-funding in per cent against the total eligible
expenditures of a project.
Section 2. Purpose of the Law
The purpose of this Law is to ensure efficient and transparent
implementation of the European Union funds in Latvia in
accordance with the principles of sound financial management.
Section 3. Scope of Application of
the Law
(1) The Law prescribes the rights and obligations of the
authorities involved in the management of the European Union
funds and the beneficiary, the procedures for the taking,
contesting, and appeal of the decisions taken by the involved
authorities, and also the amount of the State budget co-funding
rate.
(2) Chapter III of this Law shall not apply to financial
instruments. Other provisions of this Law shall be applied when
implementing financial instruments insofar as not laid down
otherwise in Regulation No 2021/1060.
(3) The Ministry of Environmental Protection and Regional
Development as the ministry of the respective sector shall ensure
the methodological management for the planning and making of
investments in territorial development and the coordination of
the use of territorial tools, and also monitor and evaluate such
investments in territories.
Section 4. Management of European
Union Funds
Management of the European Union funds shall be the
preparation, harmonisation, and approval of the necessary
planning documents, the establishment of a management and control
system of the European Union funds, the implementation of
financial instruments, the development of the project application
evaluation criteria, the selection of project applications, the
control, auditing, monitoring, and assessment of the management
and control system of European Union funds and projects, the
approval of expenditures made within the projects, the
preparation and submission of reviews to the European Commission,
and also the development and maintenance of the Cohesion Policy
Funds Management Information System.
Section 5. Rights to Receive Funding
of European Union Funds
Submission of a project application in accordance with this
Law shall not impose any obligation on the authority involved in
the management of the European Union funds to grant funding to a
project applicant for the project implementation.
Section 6. State Budget Co-funding
Rate
The State budget co-funding rate shall, when approving the
project, not be higher than the minimum necessary one with which
the national co-funding rate specified in the conditions for the
implementation of the specific aid objective if the State budget
co-funding is intended in the abovementioned conditions for the
implementation of the specific aid objective. The maximum amount
of the State budget co-funding shall, when approving the project,
be calculated against the total eligible expenditures of a
project.
Section 7. Horizontal Principles
The authorities responsible for the coordination of the
horizontal principle referred to in Article 9 of Regulation No
2021/1060, and also the principles of 'energy efficiency first'
and 'climate-proofing', the rights and obligations thereof shall
be determined by the Cabinet.
Section 8. Legal Force of
Documents
If documents have been submitted through the Cohesion Policy
Funds Management Information System, irrespective of whether they
contain the detail 'signature', the following documents shall
have legal force:
1) a project application, contract, or agreement on project
implementation and the amendments thereto, and also other
documents related to project implementation;
2) documents related to the project application selection
which need approval or agreement from the authorities involved in
the management of the European Union funds, their delegated
representatives, or experts involved in the project application
selection.
Chapter II
Provision of Management of European Union Funds and Project
Implementation
Section 9. Authorities Involved in
the Management of European Union Funds
(1) Management of European Union funds shall be provided by
the following authorities involved in the management of European
Union funds:
1) managing authority;
2) responsible institution;
3) co-operation institution;
4) audit authority;
5) accounting authority;
6) monitoring committee.
(2) In order to achieve the objective of this Law, the
authorities involved in the management of European Union funds
shall develop methodology materials and co-operate with other
authorities in accordance with the procedures laid down in the
State Administration Structure Law.
(3) In order to perform efficiently the obligations referred
to in Section 11, Paragraph three and Section 12, Paragraph three
of this Law, especially in cases when the co-operation
institution requires support in sectoral policy issues, the
co-operation institution and the responsible institution or
another institution of direct administration may enter into an
interdepartmental agreement, agreeing thereupon with the managing
authority.
Section 10. Managing Authority,
Obligations and Rights Thereof
(1) The functions of the managing authority shall be fulfilled
by the Ministry of Finance.
(2) The managing authority has the following obligations:
1) to ensure efficient management of the implementation of the
European Union funds;
2) to ensure the development of planning documents by taking
into account partnership and multilevel management principle;
3) to develop and submit a description of the management and
control system to the audit authority;
4) to monitor the activity of the responsible institutions and
co-operation institution in accordance with Article(72)(1)(d) of
Regulation No 2021/1060;
5) to ensure management of technical assistance of the
European Union funds and efficiency of the implementation
thereof, including performing the obligations of the responsible
institution referred to in this Law for the implementation of
this task;
6) to ensure performance of the management information,
publicity and communication measures of the European Union funds,
including to fulfil the functions of the coordinator responsible
for communication in accordance with Article 48 of Regulation No
2021/1060;
7) to provide information to the responsible institutions, the
co-operation institution, and the accounting authority within the
limits of its competence;
8) to provide information on projects of strategic importance
to the European Commission in accordance with Article 72(1)(a) of
Regulation No 2021/1060;
9) to develop methodology for the project application
selection in accordance with Article 72(1)(a) of Regulation No
2021/1060, to submit it for approval to the monitoring committee
on the basis of Article 40(2)(a) of Regulation No 2021/1060;
10) to develop the procedures referred to in Article 69(6) of
Regulation No 2021/1060 according to the competence thereof;
11) to develop a strategy for combating fraud and corruption
in accordance with Article 72(1)(b) of Regulation No
2021/1060;
12) to ensure the assessment of investments of the European
Union funds in accordance with the requirements of Article 44(1)
of Regulation No 2021/1060;
13) to provide the information at the disposal thereof to the
accounting authority for the preparation of the payment
application and closure of accounts and to approve that the
expenditures to be included in the closure of accounts are
eligible in accordance with Article 72(1)(b) of Regulation No
2021/1060;
14) to develop the management declaration in accordance with
Article 72(1)(b) of Regulation No 2021/1060 within the limits of
its competence;
15) to perform the functions referred to in Article 42(1),
Article 43(1), Article 69(10) and (11), and Article 72(1)(c) of
Regulation No 2021/1060;
16) to develop the project application evaluation criteria,
and also the methodology for the application of such criteria in
accordance with the procedures and in the amount laid down by the
Cabinet in accordance with Article 72(1)(a) of Regulation No
2021/1060;
17) to ensure the management of the programme in accordance
with Article 72(1) of Regulation No 2021/1060;
18) to perform other obligations laid down in this Law.
(3) The managing authority has the following rights:
1) to propose and conduct control and auditing of the
implementation of the European Union funds;
2) to request information which is necessary for the provision
of the management of European Union funds from the authorities
involved in the management of European Union funds and
beneficiaries;
3) to temporarily suspend further declaration of the
expenditures made within the scope of the programme, priority,
specific aid objective, or project to the European
Commission.
(4) The Ministry of Finance shall ensure that the functions
fulfilled thereby as the managing authority in accordance with
this Law are separated from the other functions thereof,
including from those which it fulfils as the beneficiary.
Section 11. Responsible Institution,
Obligations and Rights Thereof
(1) The functions of the responsible institution shall be
fulfilled by the Ministry of Economics, the Ministry of Finance,
the Ministry of the Interior, the Ministry of Education and
Science, the Ministry of Climate and Energy, the Ministry of
Culture, the Ministry of Welfare, the Ministry of Transport, the
Ministry of Justice, the Ministry of Health, the Ministry of
Environmental Protection and Regional Development, and the State
Chancellery.
(2) When performing the obligations laid down in Paragraph
three of this Section, the responsible institution shall be under
functional subordination of the Minister for Finance which is
implemented in the form of supervision. The Minister for Finance
shall implement the supervision with the intermediation of an
authorised official (the head of the managing authority).
(3) The responsible institution has the following
obligations:
1) to participate in the development of planning
documents;
2) in conformity with the planning documents, to ensure the
achievement of the results of a specific aid objective, including
the supervision of the achievement of the output and result
indicators;
3) to develop the conditions for the implementation of the
specific aid objective referred to in Section 19, Clause 13 of
this Law;
4) to develop the project application evaluation criteria, and
also the methodology for the application of such criteria in
accordance with the procedures and in the amount laid down by the
Cabinet in accordance with Article 72(1)(a) of Regulation No
2021/1060;
5) on the basis of Article 40(2)(a) of Regulation No
2021/1060, to submit the criteria referred to in Clause 4 of this
Paragraph for approval to the monitoring committee;
6) to develop the procedures referred to in Article 69(6) of
Regulation No 2021/1060 within the limits of its competence;
7) within the limits of its competence, to provide information
to the responsible authorities involved in the management of the
European Union funds which is essential in the performance of the
obligations of these authorities;
8) in accordance with Article 72(1)(e) of Regulation No
2021/1060, to enter data in the Cohesion Policy Funds Management
Information System on result indicators of the specific aid
objective if they do not directly arise from the data entered in
the system in accordance with Section 12, Paragraph three, Clause
6 of this Law;
9) to develop the methodology for simplified costs if the
total costs of the project do not exceed the amount of the costs
specified in Article 53(2) of Regulation No 2021/1060;
10) to use the Cohesion Policy Funds Management Information
System for the supervision of the achievement and implementation
of the specific aid objective;
11) to develop an aid programme or ad hoc aid project
and to submit it for initial assessment to the Ministry of
Finance in accordance with the procedures laid down in the Law on
Control of Aid for Commercial Activity;
12) within the limits of its competence, to ensure the
thematic evaluation of the investments of the European Union
funds;
13) to perform other obligations laid down in this Law.
(4) The responsible institution has the right to request and
receive information from the authorities involved in the
management of the European Union funds which is necessary for the
implementation of the specific aid objective and for the
performance of other obligations of the responsible
institution.
(5) The responsible institution shall ensure that the
functions fulfilled thereby as the responsible institution in
accordance with this Law are separated from the other functions
thereof, including from those which it fulfils as the
beneficiary.
[6 December 2023]
Section 12. Co-operation
Institution, Obligations and Rights Thereof
(1) The functions of the co-operation institution shall be
fulfilled by the Central Finance and Contracting Agency.
(2) When performing the obligations laid down in Paragraph
three of this Section, the co-operation institution shall be
under functional subordination of the Minister for Finance which
is implemented in the form of supervision. The Minister for
Finance shall implement the subordination with the intermediation
of an authorised official (the head of the managing
authority).
(3) The co-operation institution has the following
obligations:
1) according to the competence, to provide information to the
authorities involved in the management of the European Union
funds which is essential in the performance of the obligations of
these authorities;
2) to fulfil the function referred to in Article 46 of
Regulation No 2021/1060, including to provide consultations to
project applicants on the submission and updating of project
applications according to the conditions included in the decision
to approve the project application with a condition;
3) to fulfil the functions of the project application
selection in accordance with Article 72(1)(a) of Regulation No
2021/1060, except for that laid down in Section 10, Paragraph
two, Clause 8 and 9 and Section 11, Paragraph three, Clause 4 of
this Law;
4) to enter into an agreement on the implementation of
financial instruments;
5) to consult beneficiaries on project implementation;
6) to perform the functions referred to in Article 72(1)(e) of
Regulation No 2021/1060, except for that laid down in Section 11,
Paragraph three, Clause 8 of this Law;
7) to ensure supervision and control of project
implementation, supervision of achievement of project objectives
and output indicators, to analyse problems of the project
implementation and to submit proposals to the responsible
institution, managing authority and monitoring committee for the
improvement of project implementation;
8) to carry out random ex-ante controls of the
procurement of projects;
9) to develop the procedures referred to in Article 69(6) of
Regulation No 2021/1060 according to the competence thereof;
10) to verify and approve the expenditures included in the
payment request of the beneficiary which is eligible;
11) to provide the information at the disposal of the
co-operation institution to the accounting authority for the
preparation of the payment application and closure of
accounts;
12) to provide information to the public, to ensure publicity
and communication in issues related to project
implementation;
13) taking into account the legal form and the legal status of
the project applicant, to enter into a contract or agreement with
the beneficiary on project implementation in accordance with that
laid down in Article 72(1)(a) of Regulation No 2021/1060;
14) to carry out the tasks of the programme management in
accordance with Article (72)(1)(b) of Regulation No 2021/1060,
except for that laid down in Section 10, Paragraph two, Clauses
11, 13, and 14 of this Law;
15) to fulfil other obligations laid down in this Law.
(4) The co-operation institution has the right to request and
receive information from the authorities involved in the
management of the European Union funds, from the project
applicant and the beneficiary which is necessary in order to
enter into a contract or agreement on project implementation, and
also to ensure the project supervision.
(5) The Central Finance and Contracting Agency has the right
to request and receive direct access to the data in the State
information systems in such amount which is necessary for the
performance of the obligations of the co-operation
institution.
(6) The Central Finance and Contracting Agency shall ensure
that the functions fulfilled thereby as the co-operation
institution in accordance with this Law are separated from the
other functions thereof, including those which it fulfils as the
beneficiary.
Section 13. Audit Authority,
Obligations and Rights Thereof
(1) The functions of the audit authority shall be fulfilled by
the Ministry of Finance.
(2) The audit authority has the following obligations:
1) to fulfil the functions specified in Articles 77 and 78 of
Regulation No 2021/1060;
2) to evaluate the methodology for simplified costs in
accordance with Article 94(2) of Regulation No 2021/1060 and
other tasks assigned by the European Commission which are related
to the introduction of the European Union funds;
3) to inform the Cabinet if it has information at its disposal
on significant risks that may impact the implementation of the
European Union funds.
(3) The audit authority has the following rights:
1) to request and receive information from the authorities
involved in the management of the European Union funds and from
other authorities, and also from the beneficiaries which is
necessary for the performance of its obligations, including to
receive, process, and store personal data of natural persons in
accordance with Regulation (EU) No 2016/679 of the European
Parliament and of the Council on the protection of natural
persons with regard to the processing of personal data and on the
free movement of such data, and repealing Directive 95/46/EC;
2) in order to ensure the accuracy and reliability of the
audit opinion and the annual control report provided to the
European Commission, to carry out checks that are not directly
related to the specific project, however, that may impact the
conformity of the project with the legal acts of the European
Union and the Republic of Latvia or the efficiency of the use of
the European Union funds;
3) to request and obtain direct access to data in the State
information systems in such amount which is necessary for the
performance of the obligations of the audit authority.
(4) The Ministry of Finance shall ensure that the functions
fulfilled thereby as the audit authority in accordance with this
Law are separated from the other functions thereof, including
those which it fulfils as the managing authority and the
beneficiary.
Section 14. Accounting Authority,
the Obligations and Rights Thereof
(1) The function of the accounting authority shall be
fulfilled by the Treasury.
(2) The accounting authority has the following
obligations:
1) on the basis of the decision of the managing authority
referred to in Section 10, Paragraph three, Clause 3 of this Law,
to temporarily suspend further declaration of the expenditures
made within the scope of the programme, priority, specific aid
objective, or project to the European Commission;
2) to perform the functions referred to in Article 76 of
Regulation No 2021/1060.
(3) The accounting authority has the following rights:
1) to perform verifications of the introduction of the
European Union funds that are necessary for the approval of the
reports to be submitted to the European Commission;
2) to request information from the authorities involved in the
management of the European Union funds which is necessary for the
approval of the reports to be submitted to the European
Commission;
3) to request and obtain direct access to data in the State
information systems in such amount which is necessary for the
performance of the obligations of the accounting authority.
(4) The Treasury shall ensure that the functions fulfilled
thereby as the accounting authority in accordance with this Law
are separated from the other functions thereof, including those
which it fulfils as the beneficiary.
Section 15. Monitoring Committee and
Composition Thereof
(1) The monitoring committee has the obligation to monitor the
process of implementation of the European Union funds and to
perform other obligations specified in Article 40 of Regulation
No 2021/1060.
(2) The monitoring committee is a collegial authority and its
institutional composition shall be approved by the Cabinet in
conformity with that laid down in Article 39 of Regulation No
2021/1060. The staff of the monitoring committee shall be
approved by the chairman of the monitoring committee.
(3) The the head of the managing authority shall be the
chairman of the monitoring committee.
(4) The managing authority shall ensure the performance of the
functions of the monitoring committee.
(5) The monitoring committee may establish one or several
sub-committees for the discussion of certain issues.
(6) The types of documents to be examined in the monitoring
committee and sub-committees, the procedures for the submission
thereof and agreement thereupon, the procedures for the
preparation and course of the meetings, and other issues of
internal procedures and activities of the monitoring committee
and the sub-committee shall be determined in the regulations of
the monitoring committee and the sub-committee to be developed by
the monitoring committee. The regulations shall be approved by
the monitoring committee in accordance with Article 38(2) of
Regulation No 2021/1060.
Section 16. Transparency of
Activities of the Monitoring Committee
(1) The monitoring committee shall inform the public of its
activities and decisions taken. The meetings of the monitoring
committee shall be open. The issuing of information shall be
restricted in accordance with the laws and regulations regarding
the issuing of information, the processing and protection of
data.
(2) The procedures for applying for participation in the
meetings of the monitoring committee, the restrictions for
participation and the procedures for the course of the meetings,
and also the procedures by which the public is informed of the
decisions taken shall be determined by the regulations of the
monitoring committee.
Section 17. Obligations and Rights
of the Procurement Monitoring Bureau
(1) The Procurement Monitoring Bureau has the following
obligations:
1) to ensure ex-ante control of the documentation of a
public procurement and the course of the procurement procedure of
the projects in accordance with the procedures stipulated by the
Cabinet;
2) to develop methodology for the performance of
ex-ante control of the public procurement documentation
and process of procurement procedure of the projects (hereinafter
- the ex-ante control methodology).
(2) The Procurement Monitoring Bureau has the right to request
information from the authorities involved in the management of
the European Union funds and the beneficiaries which is necessary
for the performance of the obligations referred to in Paragraph
one of this Section.
Section 18. Obligations and Rights
of the Beneficiary
(1) The beneficiary has the following obligations:
1) to ensure project implementation in accordance with the
legal acts of the European Union and the Republic of Latvia and
contract on project implementation if the beneficiary is the
natural person or legal person;
2) to ensure project implementation in accordance with the
legal acts of the European Union and the Republic of Latvia and
agreement on project implementation if the beneficiary is an
institution of direct or indirect administration, derived public
entity or another State institution;
3) to ensure that the funding granted for the project is used
in accordance with the principle of sound financial management,
by taking into account the principles of economy, efficiency, and
effectiveness;
4) to ensure that the expenditures made within the scope of
the project are directly related to the achievement of the
project objectives and conform to the conditions for the use of
the funding granted for project implementation;
5) to inform the co-operation institution immediately of any
changes and circumstances that can affect the project
implementation;
6) to ensure the retention and sustainability of project
results, taking into account and in accordance with the
conditions and periods specified in Article 65 of Regulation No
2021/1060 and Section 19, Clause 13 of this Law;
7) to ensure a separate accounting of the expenditures of each
project or suitable accounting code system in respect of all
transactions related to the project;
8) to provide reports, information on the project
implementation, and other documents related to the project
implementation, using the Cohesion Policy Funds Management
Information System;
9) to ensure access to originals of all the documents related
to the project implementation and to the accounting system, and
also to the implementation site of the relevant project for the
representatives of the authorities involved in the management of
the European Union funds, the European Commission, the European
Anti-fraud Office, the European Public Prosecutor's Office, the
European Court of Auditors, and the Procurement Monitoring
Bureau;
10) to ensure timely provision of information;
11) to ensure the accumulation of the data and information
necessary for the evaluation of investments on the implemented
projects.
(2) The beneficiary has the following rights:
1) to receive project funding from the sources of funding
which have been determined in accordance with the contract or
agreement on project implementation if the project is implemented
in accordance with the legal acts of the European Union and the
Republic of Latvia and a contract or agreement on project
implementation, taking into account the laid down procedures and
time limits;
2) to implement the project together with a co-operation
partner in conformity with the procedures and conditions laid
down in accordance with Section 19, Clauses 2 and 13 of this
Law;
3) to receive information necessary for the project
implementation from the institutions involved in the management
of the European Union funds and the Procurement Monitoring
Bureau.
Section 19. Competence of the
Cabinet in the Ensuring of Management of the European Union
Funds
In order to ensure the management of the European Union funds,
the Cabinet shall determine:
1) the requirements for the establishment of the management
and control system of the European Union funds;
2) the procedures by which the authorities involved in the
management of the European Union funds shall ensure the
introduction of the European Union funds, including the project
application selection, the content of the project application
selection regulations, the amount of the development of the
project application evaluation criteria and the methodology for
the application thereof and the procedures for the assessment of
conformity of the project applicant with the exclusion provisions
referred to in Section 22 of this Law, the content and the
procedures for the entry into and amendment of contracts and
agreements for project implementation, including the procedures
for making an unilateral declaration and unilateral termination
notice, and also the conditions for the attraction of project
co-operation partners;
3) the procedures for the planning of resources in the State
budget, and also procedures for the examination of payment
requests, making payments and drawing up payment application and
closure of accounts to be submitted to the European
Commission;
4) the procedures for the provision and verification of
information on the application of value added tax within the
framework of projects and taking of the decision to include the
value added tax in the eligible costs of projects;
5) the procedures for ensuring functions of the audit
authority in the management of the European Union funds;
6) the provisions and procedures for the application of
simplified costs;
7) the procedures for the performance of on-the-spot
verification of a project;
8) the procedures by which the co-operation institution shall
perform the random ex-ante control of the procurement
documentation and the course of the procurement procedure of the
project and the procedures by the Procurement Monitoring Bureau
shall perform the random ex-ante control of the
documentation of the public procurement and the course of the
procurement procedure of the project, and also shall develop and
update the ex-ante control methodology;
9) the procedures for reporting irregularities established in
the implementation of the European Union funds, for the
writing-off, withholding, or recovery of the expenditures made
incorrectly, and also for the application of proportional
financial correction;
10) the procedures for the publication of information on
projects and ensuring compliance with the requirements of
publicity, communication and visual identity of the European
Union funds;
11) the procedures for the monitoring and evaluation of the
introduction of the European Union funds;
12) the procedures for developing and maintaining the Cohesion
Policy Funds Management Information System, including the
electronic data exchange system;
13) the objective of the specific aid objective, the available
funding, the national co-funding rate, the requirements for a
project applicant, the requirements for project co-operation
partners (if any are invited), the conditions for the aided
activities and for the eligibility of costs, including the
conditions for granting aid for commercial activity (if
applicable), and the procedures for implementing the specific aid
objective of the European Union fund indicated in the
programme;
14) the procedures for the implementation of financial
instruments, the available funding, the conditions for the
activities to be supported and for the eligibility of costs;
15) the procedures for the implementation of technical
assistance of the European Union funds;
16) the procedures for the examination and approval of
information by the co-operation institution on the indicators
related to project participants in accordance with Regulation
(EU) No 2021/1057 of the European Parliament and of the Council
of 24 June 2021 establishing the European Social Fund Plus (ESF+)
and repealing Regulation (EU) No 1296/2013.
Chapter III
Project Application Selection and Deciding on Project
Applications
Section 20. Project Application
Selection
(1) Project application selection may be:
1) open - if an equal competition among project applications
takes place for approval of the project application and granting
of the funding of the European Union fund;
2) restricted - if the range of project applicants who are
invited to submit project applications is previously known. In
such case, all project applications which meet the project
application evaluation criteria shall be approved and financed if
none of the exclusion provision referred to in Section 22 of this
Law apply to the project applicant.
(2) Co-operation institution shall select project applications
in accordance with the project application selection methodology
and project application selection regulations. Project
application selection regulations shall be developed and, after
agreement thereupon with the responsible institution and the
managing authority, approved by the co-operation institution.
(3) Only such project application evaluation criteria shall be
included in the project application selection regulations which
have been approved in accordance with Article 40(2)(a) of
Regulation No 2021/1060 by the monitoring committee.
(4) A notification of a call for open project application
selection and a reference to the website on which the project
application selection regulations have been published, and also a
notification of the extension, discontinuation, or termination of
project application selection shall be submitted by the
co-operation institution for publication in the official gazette
Latvijas Vēstnesis.
(5) A project applicant shall draw up and submit a project
application in accordance with the requirements of the project
application selection regulations.
(6) The decision of the monitoring committee on the approval
of project application evaluation criteria and decision of the
co-operation institution on the approval of project application
selection regulations shall be indisputable and not subject to
appeal.
Section 21. Project Application
Evaluation Committee
The co-operation institution shall establish a project
application evaluation committee for the evaluation of project
applications, consisting of at least one representative from the
responsible institution which supervises the relevant specific
aid objective and of a representative from the relevant sectoral
ministry (if applicable). The Cabinet may determine other
additional conditions for the establishment of the project
application evaluation committee if it arises from the legal acts
of the European Union and the Republic of Latvia. The
representative of the managing authority may participate in the
meeting of the project application evaluation committee in the
capacity of an observer.
Section 22. Provisions for Exclusion
of Project Applicants
(1) The co-operation institution shall reject a project
application if any of the following cases is applicable to the
project applicant who is the natural or legal person:
1) the project applicant or a person who is a member of the
executive board or supervisory board or a general representative
of the project applicant, or a person who is authorised to
represent the project applicant in activities related to a
subsidiary, has been found guilty of any of the following
criminal offences under such a prosecutor's penal order or court
judgement that has come into effect and is indisputable and not
subject to appeal:
a) establishment or leading of a criminal organisation,
involvement in such organisation or in an organised group
included within such organisation, or in another criminal
formation, or participation in criminal offences committed by
such organisation;
b) accepting bribes, giving of bribes, misappropriation of a
bribe, intermediation in bribery, unauthorised receipt of
benefits or commercial bribery, unlawful requesting, receiving,
and giving of a benefit, trading with influence;
c) fraud, misappropriation, or money laundering;
d) evading from tax payments and payments equivalent
thereto;
e) terrorism, terrorism financing, establishment or
organisation of a terrorist group, travelling for terrorism
purposes, justification of terrorism, invitation to terrorism,
terrorism threats or recruitment and training of a person for
committing acts of terrorism;
f) human trafficking;
2) the project applicant has, under such decision of the
competent authority in the relevant field, a prosecutor's penal
order, or a court judgment which has come into effect and become
indisputable and not subject to appeal, been found guilty of and
punished for a violation manifesting as:
a) employment of one or several persons if they do not have
the necessary work permit or they are not entitled to reside in a
European Union Member State;
b) employment of a person without entering into a written
employment contract, failing to submit an informative return on
employees for such person which has to be submitted for persons
who commence work within the time limit specified in the laws and
regulations governing taxes;
3) the project applicant has, under such a decision of the
competent authority in the relevant field or a court judgement
which has come into effect and has become indisputable and not
subject to appeal, been found guilty of infringing the
competition rights which manifest as a vertical agreement aimed
at restricting the possibility for a purchaser to determine the
resale price, or a horizontal cartel agreement, except when the
relevant authority has, when establishing an infringement of
competition rights, released the project applicant from a fine or
reduced the fine within the scope of the co-operation leniency
programme;
4) insolvency proceedings have been declared for the project
applicant, a case of legal protection proceedings have been
initiated for the applicant, or legal protection proceedings are
being implemented, the economic activities of the project
applicant have been suspended or discontinued, or the project
applicant is being liquidated;
5) the decision of the co-operation institution referred to in
Section 26 of this Law on the prohibition to participate in the
project application selection has come into effect.
(2) The co-operation institution shall not exclude a project
applicant from participation in project application selection if
from the day when the following cannot be contested and
appealed:
1) the court judgment, the prosecutor's penal order, or the
decision taken by another competent authority in relation to the
violations referred to in Paragraph one, Clause 1 and Clause 2,
Sub-clause "a" of this Section, three years have passed up to the
date of submitting the project application;
2) the court judgment or the decision taken by another
competent authority in the relevant field in relation to the
violations referred to in Paragraph one, Clause 2, Sub-clause "b"
and Clause 3 of this Section, 12 months have passed up to the
date of submitting the project application.
Section 23. Types of Decisions of
the Managing Authority and the Co-operation Institution
(1) If a project applicant is the natural or legal person, a
decision of the managing authority and co-operation institution
shall be an administrative act.
(2) If a project applicant is an institution of direct or
indirect administration, a derived public entity, or another
State institution, the decision of the managing authority and the
co-operation institution shall not be an administrative act.
(3) The decision referred to in Paragraph two of this Section
shall be issued in writing and it shall contain the following
parts:
1) the name and address of the managing authority or the
co-operation institution;
2) addressee - the project applicant;
3) the finding of facts;
4) the justification of the decision;
5) a separate list of legal rules applied;
6) the rights assigned to the addressee and the rights
rejected;
7) the conditions (if applicable);
8) the procedures for contesting the decision of the
co-operation institution.
Section 24. Approval, Approval with
a Condition or Rejection of a Project Application in Open Project
Application Selection
(1) In the open project application selection, the
co-operation institution shall, on the basis of the opinion
provided by the project application evaluation committee, take
the decision to approve, to approve with a condition, or to
reject a project application.
(2) The decision to approve a project application shall be
taken if all of the following conditions are met:
1) none of the exclusion provisions referred to in Section 22
of this Law is applicable to the project applicant;
2) the project application meets the project application
evaluation criteria;
3) funding is available for the project implementation within
the framework of the project application selection round of the
specific aid objective.
(3) The decision to reject a project application shall be
taken if at least one of the following conditions has set in:
1) at least one of the exclusion provisions referred to in
Section 22 of this Law applies to the project applicant;
2) a project application does not meet project application
evaluation criteria and rectification of deficiency in accordance
with Paragraph four of this Section can affect a project
application in fact;
3) funding is not available for the project implementation
within the scope of the project application selection round of
the specific aid objective;
4) the project applicant has created artificial conditions or
provided information significantly inadequate for the factual
circumstances in order to gain advantage over other project
applicants or for the co-operation institution to take a
favourable decision for it.
(4) The decision to approve a project application with a
condition shall be taken if the project applicant needs to carry
out the activities stipulated by the co-operation institution to
ensure that the project application completely meets the project
application evaluation criteria and that the project could be
implemented appropriately. Conditions shall be included in the
decision and compliance therewith shall be controlled by taking
into account the project application selection regulations. If
any of the conditions laid down in the decision are not met or
are not met within the time limit specified in the decision, or
if a project application does not meet the project application
evaluation criteria due to the information submitted by the
project applicant, a project application shall be regarded as
rejected.
(5) If a project application is submitted after the final date
for submission of project applications, it shall not be assessed.
The co-operation institution shall inform the project applicant
thereon. If a project application is rejected due to the reasons
referred to in this Paragraph and the project applicant appeals
the rejection to the court, the court judgment of the District
Administrative Court on the relevant issue is not subject to
appeal.
Section 25. Approval, Approval with
a Condition or Rejection of Project Applications in Restricted
Project Application Selection
(1) In a restricted project application selection, the
co-operation institution shall, on the basis of the opinion of
the project application evaluation committee, take the decision
to approve, to approve with a condition, or to reject a project
application.
(2) The decision to approve a project application shall be
taken if all of the following conditions are met:
1) none of the exclusion provisions referred to in Section 22
of this Law is applicable to the project applicant;
2) the project application meets the project application
evaluation criteria.
(3) The decision to reject a project application shall be
taken if at least one of the following conditions has set in:
1) the project applicant is not invited to submit a project
application;
2) at least one of the exclusion provisions referred to in
Section 22 of this Law applies to the project applicant.
(4) The decision to approve the project application with a
condition shall be taken if the project applicant needs to carry
out the activities stipulated by the co-operation institution to
ensure that the project application completely meets the project
application evaluation criteria and that the project could be
implemented appropriately. Conditions shall be included in the
decision and compliance therewith shall be controlled by taking
into account the project application selection regulations.
(5) If the project applicant does not fulfil the conditions
laid down in the decision on the approval of a project
application or does not fulfil them within the time limit
specified in the decision or if a project application does not
correspond to the project application evaluation criteria due to
the information submitted by the project applicant, a project
application shall be regarded as refused.
Section 26. Decision to Prohibit to
Temporarily Participate in Project Application Selection
The co-operation institution is entitled to take the decision
to determine a prohibition for the natural or legal person or a
person who is a member of the executive board or supervisory
board or a general representative of the relevant legal person,
or a person who is authorised to represent a project applicant in
activities related to a subsidiary, to participate in project
application selection for a period which does not exceed three
years from the day of coming into effect of the decision if such
person:
1) has knowingly provided false information that is essential
for the evaluation of the project application;
2) when implementing a project, has knowingly provided false
information to the co-operation institution or acted otherwise
ill-intentioned in relation to the project implementation that
has served as the basis for deduction or recovery of expenditures
made inappropriately and the co-operation institution has
exercised the right to withdraw unilaterally from the contract
regarding a project implementation;
3) has created artificial conditions or knowingly provided
information significantly inadequate for the factual
circumstances in order to gain advantage over other project
applicants or for the co-operation institution to take a
favourable decision for it.
Section 27. Contesting and Appeal of
Decisions
(1) A project applicant may contest the decision of the
co-operation institution referred to in Sections 24, 25, and 26
of this Law to the managing authority within one month after the
coming into effect thereof. The administrative act issued by the
managing authority regarding the contested decision of the
co-operation institution may be appealed by submitting an
application to the relevant courthouse of the District
Administrative Court. The decision of the managing authority
referred to in Section 23, Paragraph two of this Law is not
subject to appeal.
(2) An opinion of the co-operation institution on compliance
with the condition included in the decision referred to in
Section 24, Paragraph four and Section 25, Paragraphs four and
five of this Law shall be contested and appealed in accordance
with the same procedures and within the same time limits as the
decision on the compliance with the condition included in which
the opinion has been prepared.
(3) When contesting the decision, the applicant may only
request to declare this decision unlawful in the court but it may
not request the issuing of a favourable administrative act.
(4) The head of the managing authority shall take a decision
on the basis of the opinion of the application examination
committee.
(5) The managing authority shall establish the application
examination committee consisting of at least one representative
from the responsible institution which has the relevant specific
aid objective under its supervision and a representative from the
relevant sectoral ministry (if applicable) if they have not been
members of the relevant project application evaluation
committee.
Section 28. Period for Taking a
Decision
(1) The co-operation institution shall take the decision to
approve, to approve with a condition, or to reject the project
application within three months after the end date for the
submission of project applications.
(2) If the period specified in Paragraph one of this Section
cannot be conformed to due to objective reasons, the co-operation
institution may extend it for a period that is not longer than
six months from the end date for the submission of the project
application, notifying the project applicant thereof. The
decision to extend the period may be contested at the managing
authority but is not subject to appeal.
Section 29. Adjusting a Project
Application
Within the scope of an open project application selection, a
project application after submission thereof until taking of the
decision to approve, to approve with a condition, or to refuse it
may not be adjusted. Within the scope of a restricted project
application selection, the co-operation institution shall ensure
consultancy advice for the preparation of a project application
in accordance with the procedures stipulated by the co-operation
institution without changing the substance of the project
application.
Chapter IV
Procedures for Settlement of Disputes Regarding Implementation of
European Union Fund Project
Section 30. Procedures for
Settlement of Disputes if a Beneficiary is the Natural or Legal
Person
If a beneficiary is the natural or legal person, disputes
referring to the performance of the contract for project
implementation, including the disbursement, continuation of
disbursement, or recovery of the financial resources granted,
shall be settled in accordance with the civil legal procedures.
The documents and decisions which are prepared and taken for the
performance of the activities referred to in the first sentence
of this Section shall not be examined in accordance with the
procedures of administrative proceedings.
Section 31. Procedures for
Settlement of Disputes if a Beneficiary is an Institution of
Direct or Indirect Administration, Derived Public Entity or
Another State Institution
(1) If disagreements arise between a beneficiary which is an
institution of direct or indirect administration, a derived
public entity, or another State institution and the co-operation
institution regarding the decision taken within the scope of the
agreement in relation to the disbursement of the funding granted,
continuation of disbursement or another decision and an agreement
has not been reached through negotiations, the beneficiary may
appeal it to the managing authority.
(2) The managing authority shall evaluate an application of
the beneficiary referred to in Paragraph one of this Section and
take one of the following decision within a month after receipt
of the application:
1) to leave the decision of the co-operation institution
non-amended;
2) to revoke the decision of the co-operation institution
entirely or in any part thereof and, where appropriate, to assign
the co-operation institution to examine objections of the
beneficiary repeatedly, by taking into account the instructions
of the managing authority;
3) to issue another decision in terms of content.
(3) If the period specified in Paragraph two of this Section
cannot be conformed to, it may be extended for a period that is
not longer than four months from the day of receipt of the
application, notifying the applicant thereof.
(4) The managing authority shall acquire information that is
necessary to take the decision referred to in Paragraph two of
this Section by applying the procedures for the co-operation of
institutions and for the acquisition of information in the
administrative proceedings in the institution.
(5) The decision taken by the authority referred to in
Paragraph two of this Section is not subject to appeal.
Section 32. Period for Providing
Objections in a Dispute Regarding the Financial Resources
Granted
If a dispute relates to the disbursement, continuation of
disbursement, or recovery of the financial resources granted, the
beneficiary may submit objections to the co-operation institution
or, in the case referred to in Section 31 of this Law, to the
managing authority within one month from the day of coming into
effect of the decision of the managing authority. Upon a reasoned
request from the beneficiary or due to other objective
circumstances, the co-operation institution may extend the
abovementioned period.
Section 33. State Fee for Referring
to Court
The co-operation institution shall not pay the State fee when
applying to a court of general jurisdiction regarding a
contractual dispute.
Chapter V
Availability of Information and Eligibility of Costs
Section 34. Right to Become
Acquainted with the File of a Project
(1) A project applicant has the right to become acquainted
with the file of the submitted project at any stage of the
process, taking into account that laid down in Paragraph two of
this Section.
(2) A project applicant is entitled to become acquainted with
the evaluation materials of the submitted project application,
including expert opinions, minutes and decisions of the
evaluation committee, only after the decision to approve, to
approve with a condition, or to reject the project application
has come into effect. The issuing of information shall be
restricted in accordance with the laws and regulations regarding
the issuing of information, the processing and protection of
data.
(3) The co-operation institution shall provide the information
referred to in Paragraph two of this Section within 10 working
days after the receipt of the request or within five working days
after the receipt of the request shall invite the project
applicant to get acquainted with the requested information at a
time mutually acceptable for the institution and applicant.
Section 35. Freedom of
Information
(1) The file of a project of the natural or legal person shall
be restricted access information until the time when the decision
to approve the project application or reject it or an opinion on
the compliance with the conditions included in the decision has
come into effect. The file of the project shall be available in
the amount and in accordance with the procedures laid down in
Article 49 of Regulation No 2021/1060, and also other laws and
regulations regarding the issuing of information, the processing
and protection of data after coming into effect of the
abovementioned decision or opinion.
(2) The file of a project of an institution of direct or
indirect administration, a derived public entity, or another
State institution shall be generally accessible information,
except for the summary of the project budget, including the plan
for the indicative project costs. Information on the
abovementioned project shall be available in the amount and in
accordance with the procedures laid down in Article 49 of
Regulation No 2021/1060, and also in other laws and regulations
regarding the issuing of information, the processing and
protection of data after the final date for the submission of
project applications. The information referred to in Section 34,
Paragraph two of this Law in relation to the evaluation of the
project application shall be available after the decision to
approve the project application, to approve it with a condition,
or to reject it has come into effect.
Section 36. Eligibility Period of
Costs Incurred in the Project
Costs incurred in the project may be regarded as eligible if
they have been incurred and paid after 1 January 2021 and another
period is not provided in the conditions for the eligibility of
costs laid down in accordance with Section 19, Clause 13 of this
Law.
Transitional Provisions
1. The Law on the Financial Instruments of the European Union
PHARE Programme and Transitional Programme (Latvijas
Republikas Saeimas un Ministru Kabineta Ziņotājs, 2006, No.
14) is repealed.
2. The Cabinet shall, by 31 August 2022, issue the regulations
referred to in Section 7 and Section 19, Clauses 1, 2, 3, 4, 5,
7, 8, 9, 10, 11, 12, 15, and 16 of this Law.
3. The Cabinet shall, by 31 December 2026, issue the
regulations referred to in Section 19, Clauses 6, 13, and 14 of
this Law.
Informative Reference to European
Union Directives
The Law contains legal norms arising from Directive 2009/52/EC
of the European Parliament and of the Council of 18 June 2009
providing for minimum standards on sanctions and measures against
employers of illegally staying third-country nationals.
The Law has been adopted by the Saeima on 7 April
2022.
President E. Levits
Rīga, 20 April 2022
1 The Parliament of the Republic of
Latvia
Translation © 2025 Valsts valodas centrs (State
Language Centre)