Home » News » An additional 35 million euros has been allocated for the renovation of apartment buildings :: Dienas Bizness

An additional 35 million euros has been allocated for the renovation of apartment buildings :: Dienas Bizness

On Tuesday, the Cabinet of Ministers approved amendments to the EU funds support program “Promote the increase of energy efficiency in residential buildings”, allocating additional funding for the renovation of buildings, as well as clarifying certain norms on procurement and combination of support.

Along with the amendments, Altum has been granted additional funding in the amount of 35 million euros to increase the energy efficiency of multi-apartment residential buildings, which will allow the implementation of projects that meet the conditions included in the Cabinet regulations, submitted to Altum by 11 January this year. It is planned that approximately 150 more apartment buildings will receive support (in the form of guarantees and grants) within the framework of this funding.

“Measures to promote the energy efficiency of buildings can become an effective tool for restoring economic activity, helping entrepreneurs and the Latvian economy to overcome the consequences of the Covid-19 pandemic, as well as helping residents to manage housing and reduce heating costs.

The allocation of additional funding to this program will create additional investments in the Latvian economy and construction sectors, which will create new jobs. It is important to point out that more than 60% of the money invested in house renovation remains in the Latvian economy. Investments in housing insulation are also an important source of support for Latvian building material producers, “points out the Minister of Economics Jānis Vitenbergs.

The house renovation program is especially important because it will promote economic activity in the regions, because so far the most active projects in the program for housing renovation have been submitted from the regions of Latvia. Completed building renovation projects so far show a significant reduction in energy consumption – if before the renovation of the house the average energy consumption was 165 kWh per year, then after renovation works it is on average 67% lower or 54 kWh per year, which is a significant saving for residents.

By 11 January this year, when project acceptance was suspended, Altum had submitted a total of 885 project applications for a provisional amount of € 375 million. At the same time, amendments to the regulations of the Cabinet of Ministers envisage new conditions for the selection of suppliers.

The Regulations stipulate that all authorized persons of apartment owners who implement energy efficiency improvement measures within the framework of this support program must further apply Cabinet Regulation No. 104 of 28 February 2017 “Regulations on the Procurement Procedure and its Application Procedures for Projects Financed by the Customer”. are designed and contain minimum (minimum) requirements in order to create the simplest possible procedure for concluding supply, service and works contracts.

At the same time, the regulations of the Cabinet of Ministers have clarified the norms regarding the merging of state aid in order to comply with the regulatory enactments regulating the field of state aid.

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