The Liepaja SEZ Authority has prepared project applications for attraction of external funding to maintain the degraded former factory territories and to create an attractive environment for business in the territory of the former ``Liepajas Metalurgs'' steel plant. As determined by the long-term development strategy of the Liepaja Industrial Park 2023-2038, which was supported by the Board of the Liepaja SEZ on April 25 this year and approved by the municipality of the City of Liepaja on April 27, rehabilitation of the territory, building new streets and engineering communications, creating an attractive environment for business will take place in several phases.
The approved Liepaja Industrial Park strategy, which was developed by the international company "KPMG Latvija", determines that the expected return to the national economy will amount to 1,500 new jobs, which will create additionally ~3,000 jobs in the related industries, while the annual taxes will contribute 11, 9 million EUR into the state budget and 16.1 million EUR into the municipal budget.
To implement the prospective development program of the territory of the former "Liepajas Metalurgs" plant and to attract external funding, the Liepaja SEZ Authority has prepared three project applications for a total amount of EUR 38,720,000, whereof the pre-financing will be provided by the municipality of the City of Liepaja.
The prepared project applications envisage transformation of the territory of the former "Liepajas Metalurgs" plant from a previously closed territory to publicly accessible one, elimination of the historical environmental pollution and construction of new streets with all the necessary engineering communications. It is planned to build new streets of the length of 2.94 km in the 1st phase, 0.6 km in the 2nd phase, and 0.73 km in the 3rd phase.
The entire 205 ha area is planned to be developed into a modern industrial park, the activity of which will be aimed at attracting technologically modern, innovative companies, which will promote development of the production of high added value products and will be in line with the prerequisites of the European green course for the development of environmentally friendly, circular economy principles promoting industrialization.
According to the approved long-term development strategy of the Liepaja Industrial Park 2023-2038, establishment of the Liepaja Industrial Park is one of the most ambitious and important industrial development projects in the City of Liepaja in the recent years, which will be implemented by the Liepaja Special Economic Zone Authority in cooperation with the municipality of the City of Liepaja in line with the "Liepaja City and Southern Kurzeme District Development Program 2022-2027".
To ensure implementation of the abovementioned Project, it is initially planned to create sustainable infrastructure: a street network, rebuilding electrical networks and water supply systems, building heating networks, etc., and opening the territory of the Liepaja Industrial Park to the local community. To attract the Liepaja Industrial Park tenants, particular attention will be paid to targeted selection - attracting investors which prove their readiness and ability to ensure their operations based on the principles of sustainability.
The Liepaja SEZ Authority, which has undertaken to develop the territory of the Liepaja Industrial Park, abiding to the mentioned basic principles, has extensive experience in the development of industrial zones in the City of Liepaja. In recent years, companies operating in the Liepaja SEZ have demonstrated high productivity, as well as higher wage rates than the national average. Investors, with whom the Liepaja SEZ Authority has established close cooperation, maintain consistently high in interest in additional development opportunities in the City of Liepaja, thus establishment of a new industrial park is closely related to the willingness of entrepreneurs to carry out economic activities right here.
Taking into consideration, that the territory of the Liepaja Industrial Park is large, the development of the park is planned to be implemented in several phases. In the first phase, it is planned to attract funding from the Recovery and Resilience Mechanism, which is intended for the development of national industrial areas for arrangement of the infrastructure, and in the following phases other public or private financial sources will be attracted funds.
Well-thought-out development of the Liepaja Industrial Park will increase both direct and indirect tax revenues in the state and local government budgets and will ensure rational use of the free electricity capacity, railway infrastructure and other engineering communications available in the territory of the former "Liepajas Metalurgs" steel plant, creating a modern, innovative and environmentally friendly "greenest” industrial park in Europe – SMART, GREEN, INNOVATIVE.