The Ministry of Finance has granted €480,337 worth of investment support to four local governments, the support measure is aimed at boosting local economies and can be applied for by all local governments.
The first four support recipients are the city governments of Maardu and Loksa and the rural municipality governments of Vaike-Maarja and Tapa, spokespeople for the Finance Ministry said.
"We also encourage other local governments to submit their applications as this measure helps revive local entrepreneurship as well as provide employment for people," Minister of Public Administration Jaak Aab (Center) said.
Aab added that most cities and rural municipalities are currently engaged in preliminary consultations with the ministry regarding their projects.
"Preliminary consultations are not mandatory for local governments, but they streamline the processing of applications and expedite the payout of funds," he said.
The support measure was prompted by the emergency situation caused by the coronavirus crisis and seeks to mitigate the economic effects of the crisis.
The deadline for support applications is November 15. The measure for increasing local governments' investments is planned to total €70 million.
Eligible for support are projects involving new objects that are not part of the 2020 budget. The support can be used for the construction, demolition and renovation of any objects as well as installation of utilities and purchase of furniture.
The minimum sum of support is €20,000. The maximum amount of support will be established by an order signed by the minister of public administration and the funds can be used by local governments on the basis of a list of projects approved by the Ministry of Finance. Own contribution is only required if a project includes non-eligible expenses.
The ministry will deliver its decision on granting support after the local government has selected the winning bidder, and the funds are transferred to the local government after a contract has been signed with the tenderer.
All contracts must be signed by mid-December at the latest in order for the Ministry of Finance to be able to transfer funds to local governments this year.
Local governments will be able to use said support until the end of 2021.
Editor: Helen Wright