RIGA, June 14 (LETA) - The government today supported allocation of EUR 10.9 million in loans for 39 municipal investment projects.

The largest loan of EUR 1.3 million was issued to Gulbene Region Council for reconstruction of a section of Vidus Street. The second largest loan of EUR 1.2 million was also granted to Gulbene municipality for reconstruction of a section of Brivibas Street.

A EUR 1 million loan will be granted to Dienvidkurzeme Region Council for improving energy efficiency of a building at 54 Liela Street in Grobina.

The Environmental Protection and Regional Development Ministry informed LETA that a total of 15 municipalities had applied for loans in the second round of projects.

The most popular reason for taking out a loan is transport infrastructure development or reconstruction. A total of 23 such projects were supported in 11 municipalities.

Loans issued for municipal investments project may not exceed 85 percent of the project's total cost, while local governments must provide co-financing of no less than 15 percent of the project's cost.

Projects for which local governments take out loans must be completed by the end of 2023. First project applications had to be submitted to the Environmental Protection and Regional Development Ministry by April 1.