Investments - Latvia

PRB monitoring

▪ LGS planned a total RP3 asset value for new investments of 71M€₂₀₁₇, of which 87% for new major investments. LGS planned four new major investments for RP3, of which one has not started.

▪ LGS planned RP3 new investments represent 1% of the Union-wide total amounts of the assets for new investments. LGS planned to invest more in infrastructure compared to the Union-wide median (55% vs 27% respectively), and less for ATM systems (28% vs 47%).

▪ LGS overspent +0.4M€₂₀₁₇ (+1.2%) in costs related to investments during RP3 (+0.9M€₂₀₁₇ in en route and -0.5M€₂₀₁₇ in terminal), according to the reporting tables. However, in the monitoring reports, LGS reported an overspending of +0.6M€₂₀₁₇ (-2.0%). No explanation for the differences has been provided.

▪ LGS reported 0.2M€₂₀₁₇ funding from Union assistance programmes in RP3, which is consistent with SESAR Deployment Manager data.

Value of the assets for New Investments included in the Performance Plan Latvia | LGS

Determined and additional asset value by investment category

Total value of the asset for new investments (M€2017)	70.98	% of total
New major investments (above 5M€ each)	61.61	87%
Included in the performance plan	61.61	87%
Additional	0.00	0%
Other new investments (below 5M€ each)	9.37	13%

Determined asset value: en route and terminal

Total value of the asset for new major investments (M€2017)	61.61	% of total
En route	34.63	56%
Terminal	26.98	44%

Determined asset value by type of investment

Total value of the asset for new major investments (M€2017)	61.61	% of total
ATM systems	17.26	28%
CNS systems	10.53	17%
Infrastructure	33.83	55%
Other	0.00	0%
Unknown	0.00	0%

Asset value for new investments: ANSP compared to Union-wide

Costs related to investments included in the Performance Plan Latvia | LGS

New and existing investments

Determined costs	2020D	2021D	2022D	2023D	2024D	RP3
Total costs of new and existing investments (M€2017)	5.35	6.05	5.95	6.90	6.14	30.38
New major investments	0.11	0.21	0.59	1.28	1.87	4.06
Other new investments	0.28	1.70	2.06	3.12	2.38	9.55
Existing investments	4.95	4.13	3.30	2.50	1.89	16.78

Actual costs	2020A	2021A	2022A	2023A	2024A	RP3
Total costs of new and existing investments (M€2017)	5.41	5.86	6.15	6.74	6.83	30.99
New major investments	0.11	0.21	0.59	1.09	1.10	3.10
Other new investments	0.35	1.51	2.26	3.15	4.61	11.88
Existing investments	4.95	4.13	3.30	2.50	1.11	16.00

Difference (A-D)	2020	2021	2022	2023	2024	RP3
Total difference (M€2017)	0.06	(0.19)	0.20	(0.17)	0.69	0.60
New major investments	0.00	0.00	0.00	(0.19)	(0.77)	(0.96)
% change of actual with respect to determined	0%	+0%	0%	-15%	-41%	-56%
Other new investments	0.06	(0.19)	0.20	0.02	2.24	2.33
% change of actual with respect to determined	+23%	-11%	+10%	+1%	+94%	+116%
Existing investments	0.00	0.00	0.00	0.00	(0.78)	(0.77)
% change of actual with respect to determined	0%	0%	+0%	+0%	-41%	-41%

Costs of investments by nature - En route

Determined costs	2020D	2021D	2022D	2023D	2024D	RP3
Total costs of new and existing investments (M€2017)	3.30	3.74	3.75	4.38	3.63	18.80
Depreciation	2.00	2.39	2.62	3.05	2.60	12.66
Cost of capital	1.30	1.35	1.14	1.33	1.03	6.14
Cost of leasing	0.00	0.00	0.00	0.00	0.00	0.00

Actual costs	2020A	2021A	2022A	2023A	2024A	RP3
Total costs of new and existing investments (M€2017)	3.30	3.31	3.88	4.49	4.72	19.69
Depreciation	2.00	2.12	2.81	3.48	3.72	14.12
Cost of capital	1.30	1.19	1.07	1.01	1.00	5.58
Cost of leasing	0.00	0.00	0.00	0.00	0.00	0.00

Difference (A-D)	2020	2021	2022	2023	2024	RP3
Total difference (M€2017)	0.00	(0.43)	0.12	0.11	1.09	0.89
Depreciation	0.00	(0.27)	0.19	0.42	1.12	1.46
Cost of capital	0.00	(0.16)	(0.07)	(0.31)	(0.03)	(0.57)
Cost of leasing	0.00	0.00	0.00	0.00	0.00	0.00

Costs of investments by nature - Terminal

Determined costs	2020D	2021D	2022D	2023D	2024D	RP3
Total costs of new and existing investments (M€2017)	2.05	2.31	2.20	2.52	2.51	11.58
Depreciation	1.49	1.78	1.75	2.05	1.93	9.00
Cost of capital	0.56	0.53	0.44	0.47	0.58	2.59
Cost of leasing	0.00	0.00	0.00	0.00	0.00	0.00

Actual costs	2020A	2021A	2022A	2023A	2024A	RP3
Total costs of new and existing investments (M€2017)	2.05	2.37	2.27	2.25	2.11	11.04
Depreciation	1.49	1.63	1.77	1.74	1.64	8.26
Cost of capital	0.56	0.73	0.50	0.51	0.47	2.78
Cost of leasing	0.00	0.00	0.00	0.00	0.00	0.00

Difference (A-D)	2020	2021	2022	2023	2024	RP3
Total difference (M€2017)	0.00	0.06	0.08	(0.28)	(0.40)	(0.54)
Depreciation	0.00	(0.15)	0.02	(0.31)	(0.29)	(0.73)
Cost of capital	0.00	0.21	0.06	0.03	(0.11)	0.19
Cost of leasing	0.00	0.00	0.00	0.00	0.00	0.00

Costs by new major investments

Determined costs	2020D	2021D	2022D	2023D	2024D	RP3
Total costs of new and existing investments (M€2017)	0.11	0.21	0.59	1.28	1.87	4.06
New technical, ACC and tower building	0.09	0.13	0.14	0.31	0.66	1.33
Integration of new systems in Tech & TWR buildings	0.00	0.00	0.00	0.00	0.05	0.05
ATC System modernization	0.02	0.06	0.37	0.71	0.74	1.89
Radar modernization and WAM	0.00	0.03	0.09	0.26	0.42	0.79

Actual costs	2020A	2021A	2022A	2023A	2024A	RP3
Total costs of new and existing investments (M€2017)	0.11	0.21	0.59	1.09	1.10	3.10
New technical, ACC and tower building	0.09	0.13	0.14	0.14	0.14	0.64
Integration of new systems in Tech & TWR buildings	0.00	0.00	0.00	0.00	0.00	0.00
ATC System modernization	0.02	0.06	0.37	0.75	0.65	1.85
Radar modernization and WAM	0.00	0.03	0.09	0.19	0.32	0.62

Difference (A-D)	2020	2021	2022	2023	2024	RP3
Total difference (M€2017)	(0.00)	0.00	0.00	(0.19)	(0.77)	(0.96)
New technical, ACC and tower building	(0.00)	(0.00)	0.00	(0.17)	(0.52)	(0.69)
Integration of new systems in Tech & TWR buildings	0.00	0.00	0.00	0.00	(0.05)	(0.05)
ATC System modernization	(0.00)	(0.00)	0.00	0.05	(0.09)	(0.05)
Radar modernization and WAM	0.00	0.00	0.00	(0.07)	(0.10)	(0.17)

Expected benefit and impact per new major investment Latvia | LGS

New major investments	Expected benefit per KPA	SAF	ENV	CAP	CEF
New technical, ACC and tower building		X	X	X
Radar modernization and WAM		X
ATC System modernization		X		X
Integration of new systems in Tech & TWR buildings		X	X	X	X

New major investments	Expected impact	Network	Local	Non-performance
New technical, ACC and tower building		X
Radar modernization and WAM			X
ATC System modernization			X
Integration of new systems in Tech & TWR buildings			X

New major investments	SES mandated	Partnership	ATM systems
			ATM system	CP/MP
New technical, ACC and tower building
Radar modernization and WAM
ATC System modernization			X	X
Integration of new systems in Tech & TWR buildings			X	X

Public funding granted for total CAPEX (CEF/TEN-T)

Actual funding declaration vs payments

Funding declared (M€2017)	2020	2021	2022	2023	2024	RP3
Total included in the funding declaration (reporting tables)	0.06	0.08	0.02	0.02	0.00	0.17
SDM Payment	-0.24	0.03	0.23	0.16	0.00	0.18
Difference between total funding declared vs received	0.30	0.04	(0.21)	(0.15)	0.00	(0.01)