Agreement for the implementation of the project "Liepaja Industrial Park Infrastructure Development Round 1"

The Liepaja SEZ Authority concluded an agreement with the Central Finance and Contracts Agency (CFCA) on financing of the Recovery and Resilience Mechanism in the amount of 10 million EUR for the implementation of the project "Liepaja Industrial Park Infrastructure Development Round 1". As part of the project, it is planned to build electricity supply networks and three sections of streets with engineering communications (water supply, domestic sewerage, rainwater sewerage, heat supply networks) in the large area. This will allow partial opening of the formerly closed steel plant area for public access and create an opportunity to attract the first investors.

Continuing the transformation of the former steel plant "Liepajas Metalurgs" into a modern green industrial park, which was started in 2018, attracting public funding is a logical continuation of what has been done before. 

The Liepaja SEZ CEO Uldis Hmieļevskis, did not hide his satisfaction that this will give a push to start construction of the infrastructure, which is required for business in the territory of the former steel "Liepajas Metalurgs" and from planning switch over to practical activities “Attracting financing for the construction of infrastructure is a very important step in order to start establishment of the Liepaja Industrial Park and, within the next few years, to partially return the hitherto closed territory to residents and investors, and to make it a sustainable and modern business environment that will provide new, well-paid jobs. We consider the Liepaja Industrial Park as a modern, green industrial park for business companies, which operate abiding the principles of sustainability.”

The planned construction works of the "Liepāja Industrial Park Infrastructure Development Round 1" project must be completed by December 31, 2025. The territory of the Liepaja Industrial Park is planned to be developed into a modern business environment, the activity of which will be aimed at attracting technologically modern, innovative companies, which will promote the 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 industrialization promoting the principles of the circular economy.

By implementing the overall plan of the Liepaja Industrial Park, according to the approved strategy, it is planned to attract private investments of more than 275 million EUR and to create at least 1,500 new jobs.

The Liepaja Industrial Park is being developed by the Liepaja SEZ Authority and the municipality of Liepaja in the territory of the former steel plant "Liepajas Metalurgs". It borders Liepāja Lake, which is a protected NATURA 2000 area.

For reference:

• In 2018, a Letter of Intent was concluded between the Ministry of Economics, the Latvian Investment and Development Agency, SIA "FeLM", the Liepaja City Council and the Liepaja Special Economic Zone Authority for the development of the territory of the former steel plant "Liepajas Metalurgs".

• In 2021, the territory development program of the former steel plant "Liepajas Metalurgs" was approved, and an interdepartmental agreement was concluded with the Liepaja City Council on its implementation.

• In 2022, the local plan of the territory of the former steel plant "Liepajas Metalurgs" was approved.

• In 2022, a rehabilitation work program for the territory of the former steel plant "Liepajas Metalurgs" was completed.

• In 2023, the "Liepaja Industrial Park" (LIP) Development Strategy for the period from 2023 to 2028 was approved.

• In 2023, a number of construction projects have been developed to carry out construction works for the development of the infrastructure.

• In 2023, a project application was prepared and submitted for the first street construction works in the territory of the Liepaja Industrial Park and allocation of funding for the said works was received.

• In 2023, a lease agreement was concluded with SIA "Liepajas Steel" until December 31, 2025 for the dismantling and removal of the electric steel melting furnace.