The Importance of European Union Funding for Infrastructure Development in Latvia

In: Riga Technical University 53rd International Scientific Conference: Dedicated to the 150th Anniversary and the 1st Congress of World Engineers and Riga Polytechnical Institute / RTU Alumni: Digest

Abstract

Good infrastructure historically proved to be an indispensable precondition for the sustainable economic development of the nations; however national budget restrictions are leading governments, even in developed countries, to use structural funds and private financing for infrastructure projects as they are not able to fully finance them through the government budget. The paper deals with the problem of relocation of financing sources for infrastructure development in Latvia. In the paper the authors focus on road construction industry and aggregates market as well as the industry has a huge need for raw materials: sand, gravel and granite, and searches continually for cheap sources for road construction, maintenance and repair projects, thus having negative impact on quality of works and sustainable development.