Translated using ChatGPT service.
The Ministry of Economics (MoE) has developed and submitted for inter-institutional coordination a report on the reorganization of small state-owned limited liability companies. The plan aims to consolidate small state-owned enterprises, thereby saving state budget funds and reducing bureaucracy.
The Ministry of Economics is the first ministry to initiate the merger of small companies under its supervision and will continue efforts in this direction, promoting optimization and efficiency. This approach will eliminate overlapping functions among companies directly or indirectly owned by the state and reduce their maintenance costs.
“This initiative sends a clear signal that public administration is capable of change – it can abandon unnecessary bureaucracy, optimize its resources, and become more efficient. We are taking the lead by merging the state-owned enterprises under our supervision, proving that reforms are achievable. Our goal is not only to save budget funds – we are building a modern, purposeful state support system for entrepreneurship, technology, and innovation. Latvia must be able to act boldly to become a more competitive, secure, and sustainable country in the future,” emphasized Minister of Economics Viktors Valainis.
The report proposes a two-phase reorganization. In the first phase, three small state-owned companies will be merged:
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SIA “Latvijas Nacionālais Metroloģijas Centrs” (LNMC) and SIA “Latvijas Standarts” (LVS), both under the supervision of the Ministry of Economics,
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and SIA “Latvijas Proves Birojs” (LPB), under the supervision of the Ministry of Finance.
As the functions and services of these companies are similar in content, merging them would allow for more efficient use of state-allocated funds, improve service quality, promote technological development and innovation, and provide a unified support platform for entrepreneurs and developers of technologically intensive ideas — a single Technology Development Centre (VKTA). LVS and LPB would be merged into LNMC, which would carry out VKTA functions going forward, with a focus on conformity assessment, quality assurance, and technical compliance. This phase is scheduled to be completed by July 2026.
The optimization will affect human resource management, record-keeping, financial accounting, the use of information and communication technologies, procurement, as well as facility and infrastructure management. This will ensure reduced administrative costs, improved service quality and efficiency, less fragmentation, and the creation of a unified and professional support platform for all VKTA functions. Initial estimates suggest that the potential financial benefit from this merger could amount to approximately EUR 250,000.
In the second phase, functions related to conformity assessment will be further consolidated and centralized into one VKTA. This will affect:
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VSIA “Latvian Environment, Geology and Meteorology Centre” (water, air, soil, and radioactivity analysis, calibration of measuring instruments),
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VSIA “Latvian State Roads” Road Laboratory of the Road Competence Centre (construction material testing),
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AS “Sadales tīkls” Metrology Laboratory (electricity quality measurements and equipment calibration),
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AS “Augstsprieguma tīkls” Technical Expertise Department (testing of electrical systems and environmental parameters),
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VAS “Riga International Airport” Environmental Noise Measurement Laboratory, and
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AS “Latvijas valsts meži” Mineral Materials Testing Laboratory.
To begin implementation of the reorganization, the conceptual report must be approved by the Cabinet of Ministers.