On July 28, 2010, Norway, Iceland and Liechtenstein (hereinafter referred to as the donor states) signed a framework agreement with the European Commission about financial support to 14 countries, including Latvia.
In October 2010 the donor states opened negotiations with Latvia about signing the Memorandum of Understanding on the Implementation of the Norwegian Financial Mechanism 2009-2014.
On March 29, 2011 the Memorandum of Understanding was approved by the Cabinet of Ministers (Regulation issued by the Cabinet of Ministers No. 252 „About the Memorandum of Understanding between the Republic of Latvia and the Kingdom of Norway on the Implementation of the Norwegian Financial Mechanism 2009-2014”).
On April 28, 2011 the Memorandum of Understanding on the Implementation of the Norwegian Financial Mechanism 2009-2014 between the Republic of Latvia and the Kingdom of Norway was signed.
The overall objectives of the Norwegian Financial Mechanism 2009-2014 are to contribute to the reduction of economic and social disparities in the European Economic Area and to strengthen the bilateral relations between Norway and the Beneficiary States through financial contributions in the following priority sectors:
- Carbon Capture and Storage;
- Green Industry Innovation;
- Research and Scholarships;
- Human and Social Development;
- Justice and Home Affairs;
- Promotion of Decent Work and Tripartite Dialogue.
The total amount of the financial contribution is 800 million EUR in annual tranches of 160 million EUR over the period running from May 1, 2009 to April 30, 2014, inclusive.