Having read the information report prepared by the Ministry of Economics “On the involvement of Joint Stock Company “Development Finance Institution Altum” in the Three Seas Initiative Investment Fund”, at the meeting on May 7 the Cabinet of Ministers supported the involvement of ALTUM in the Three Seas Initiative Investment Fund, a new financial instrument to support infrastructure projects in the transport, energy and digitalisation sectors in the Central and Eastern European region.
The planned amount of ALTUM’s investment in the Three Seas Initiative Investment Fund is 20 million euro. ALTUM’s contribution will be further coordinated with the European Commission for compliance with the European Union’s rules on the control of commercial activities.
The Minister of Economics Jānis Vitenbergs: “The Investment Fund aims to promote the development of strategic infrastructure in the region of the Three Seas, thereby increasing their interconnection. Given the impact of Covid-19 on Latvia’s economy, this will be another investment opportunity in the Latvian economy, which will allow the development of strategically important infrastructure projects that are essential for ensuring the economic growth of our region. The Fund’s investment allocation is set at 40% for investment in transport infrastructure, 40% for energy and 20% for digitalisation.”
The Three Seas Initiative Investment Fund is a joint initiative of the 12 Baltic, Black and Adriatic Sea countries with a view to promoting the financing and development of infrastructure projects. The Fund’s resources will come from institutions and other investors from the Three Seas countries around the world. The Three Seas Initiative Investment Fund is expected to total up to five billion euro. Poland and Romania have already contributed 500 million euro to the Fund. Estonia has also approved its participation in the Fund on 16 April 2020 and is preparing to organise another summit of the Three Seas countries in Tallinn in October.
The Three Seas Initiative Investment Fund complements and strengthens the use of certain financial instruments of the Three Seas countries and the European Union. It is a commercial and market-driven initiative that funds only profitable projects, and the Fund does not grant non-repayable subsidies or grants. Investors participate in the Fund as investors, but the Fund makes investment decisions independently. In the framework of cooperation, special attention is planned to be paid to the raising of private capital on the basis of the principles of the public-private partnership model.
The Three Seas Initiative Investment Fund is the economic dimension of the political platform – the Three Sea Initiative. The Three Seas Initiative currently involves 12 EU Member States between the Baltic, Black and Adriatic Seas: Austria, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. Its main partners are Germany, the European Union and the United States. The initiative reinforces cooperation with a view to developing energy, transport and digital infrastructure. The objectives of the initiative include economic growth, energy security and a united Europe.
As you know, on 26-27 February this year, an orientation conference was held in Riga for the Three Seas Fund bringing together representatives of the member states of the Fund, decision-makers, Latvian businessmen and other opinion leaders.
Additional information on the initiative can be found online on https://www.3seas.eu/