================================================================================ LATVIA PRODUCTIVE CAPACITY AUTHORITY AND ENERGY SECURITY ACT Saeima of the Republic of Latvia, 14th Saeima, 2026 Session Prepared by Imran Cooper, The Amanuensis May 2026 VERIFICATION NOTES: THIS BILL IS THE LATVIA ADAPTATION OF THE PRODUCTIVE CAPACITY AUTHORITY ARCHITECTURE, ANCHORED ON ALTUM AND THE 9 FEBRUARY 2025 BALTIC SYNCHRO: The Latvia Productive Capacity Authority and Energy Security Act is the Latvian adaptation of the architecture proposed at federal scale for the United States (three variants), at national scale for India, the United Kingdom, Poland (with energy security), Ukraine (with reconstruction + energy security), Indonesia (Danantara-coordinated), and Taiwan (with energy resilience), and at sub-national scale for Alaska. The sibling drafts are filed contemporaneously at imran.theamanuensis.com/historical-apoplexy/compendium. The Latvia adaptation is distinguished by two structural features. First, ENERGY SECURITY is elevated as a co-equal Title, anchored on the historic disconnection of the Latvian electricity grid from the BRELL ring (Belarus-Russia-Estonia-Latvia-Lithuania 2001 agreement under Moscow's centralised dispatch) and synchronisation with the Continental Europe Synchronous Area (CESA) on **9 February 2025 at 14:05 EET** — the largest single-event reorientation of national- grid governance in post-1991 Latvian history (ENTSO-E confirmation 9 Feb 2025; eusbsr.eu; en.wikipedia.org Baltic states synchronization with CESA; futurium.ec.europa.eu 28 Feb 2025; DIIS; NATO ENSEC COE). Second, the Authority is structured on the operational chassis of **Altum** (JSC Development Finance Institution Altum), the indigenous Latvian state-owned development finance institution that already operates the loan, guarantee, and venture-capital financial- instrument framework for state-supported areas (altum.lv; nasdaqbaltic.com 2025 Q2 report; Altum Strategy 2025-2027 in final approval as of Q2 2025). LATVIA FISCAL AND PROGRAMME FRAMEWORK (verified 2025-2026, shared with the Latvia Food Assurance Act verification set): - Republic of Latvia: population ~1.88 million; EU member since 1 May 2004; eurozone member since 1 January 2014; NATO member since 29 March 2004; 119 municipal-level local governments under the 2020-2021 administrative-territorial reform. - Currency: Euro (€). - Saeima (Latvijas Republikas Saeima): unicameral parliament, 100 members. 14th Saeima elected October 2022; 15th Saeima election October 2026. - Constitution: Satversme (1922 / restored 1993). - Latvia RRF: **€1.97 billion total** EU NextGenerationEU allocation. Third payment €293M (9 May 2025), fourth penultimate payment €371.2M (8 May 2026). Sources: fm.gov.lv; eureporter.co; lsm.lv; ec.europa.eu reforms-investments. LATVIAN STATE FINANCING AND ENERGY-SECTOR CHASSIS: - **JSC Development Finance Institution Altum** (AS "Attīstības finanšu institūcija Altum"): state-owned development finance institution providing loans, guarantees, and venture-capital investments in state-defined priority areas; Strategy 2025-2027 in final approval as of Q2 2025. Sources: altum.lv; nasdaqbaltic.com 2025 Q2 report; Altum Corporate Governance Report 2024 (April 2025); news.eu.nasdaq.com Audited 2024 Annual Report. - **Latvenergo AS**: the state-owned electricity generation utility, the dominant Latvian generator; operates the Daugava hydroelectric cascade (Pļaviņas, Ķegums, and Rīga hydroelectric power plants). - **Augstsprieguma tīkls AS (AST)**: the state-owned electricity transmission system operator; executed the disconnection from BRELL and the Baltic Synchro to CESA on 9 February 2025. - **AS Sadales tīkls**: the state-owned electricity distribution network operator. - **Latvenergo natural-gas operations**: post-2022 Russian-invasion divestment from Russian gas; pivoted to LNG via the Klaipėda LNG terminal (Lithuania) and the Inčukalns underground gas storage facility in Latvia. - **VAS Latvijas dzelzceļš (LDz)**: state-owned railways. - **Latvijas Pasts**: state postal service. - **Latvijas Banka**: central bank within the eurozone framework. LATVIA ENERGY-SECTOR ANCHORS AND THE 9 FEBRUARY 2025 BALTIC SYNCHRO: - **Baltic Synchro to Continental Europe Synchronous Area (CESA): 9 February 2025, 14:05 EET.** Estonia, Latvia, and Lithuania jointly disconnected from the IPS/UPS Soviet-era grid and the 2001 BRELL Agreement (Belarus-Russia-Estonia-Latvia-Lithuania) and synchronised with the Continental European grid managed by ENTSO-E. The largest single-event reorientation of national-grid governance in post-1991 Latvian history. Sources: en.wikipedia.org Baltic states synchronization with CESA; eusbsr.eu Baltic States Synchronise with Europe; entsoe.eu ENTSO-E confirms successful synchronization (9 Feb 2025 official announcement); DIIS Baltic States' synchronization with the continental grid; NATO ENSEC COE BRELL Desynchronisation Assessment; futurium.ec.europa.eu 28 Feb 2025. - Latvian electricity mix: significant hydropower share via Latvenergo's Daugava cascade (Pļaviņas, Ķegums, Rīga); biomass and combined-heat-and-power; growing wind and solar deployment post-Synchro; remaining natural-gas generation pivoted to LNG supply (Klaipėda LNG terminal + Inčukalns storage). - Baltic offshore-wind potential: substantial offshore wind capacity in the Latvian Baltic Sea exclusive economic zone under development; Latvia-Estonia ELWIND joint offshore-wind project is a load-bearing future-capacity programme. - Russian gas independence: Latvia ended Russian gas imports in 2022; current natural-gas supply pivoted to LNG. - NATO eastern-frontier security context: Latvia is a NATO member on the eastern frontier of the Alliance; the 9 February 2025 Baltic Synchro removed the last major operational dependency on Russian-controlled infrastructure. LATVIAN CONSTITUTIONAL AND PHILOSOPHICAL ANCHORS: - Satversme (Constitution of the Republic of Latvia, 1922 / restored 1993): Preamble (added 2014): duty of every citizen to care for themselves, their loved ones, and the common good of society and the state. Article 1: Latvia is an independent, democratic Republic. Article 2: The sovereign power of the State of Latvia is vested in the people of Latvia. Article 89: fundamental human rights protection. Article 109: right to social security. Article 116: rights restrictions only for protection of others, democratic structure, public safety, welfare, morals. - **Barricades of 1991 (Barikādes, 13-27 January 1991)**: the civilian defense of Latvian independence against Soviet OMON forces at the Saeima, Cabinet of Ministers, Latvian Television, Latvian Radio, the Latvian Telegraph Agency, and other critical infrastructure. Five Latvians killed defending the barricades. The Barricades are the living national-memory anchor for citizen-led defense of democratic institutions and the philosophical foundation for the citizen-shareholder structure proposed by this Act: the Personal Productive Asset entitlement is the modern operational expression of the Barricades' principle that Latvian sovereignty is defended by Latvian citizens collectively. - Krišjānis Barons (1835-1923): "Father of the Dainas" — the Latviešu Dainas corpus of approximately 217,996 Latvian folk songs anchors Latvian national identity and the cooperative- cultural-memory tradition. - Dziesmu un deju svētki (Latvian Song and Dance Celebration, since 1873): UNESCO Masterpiece of the Oral and Intangible Heritage of Humanity. The continuous Latvian cooperative cultural tradition mobilising tens of thousands of singers and dancers from every Latvian municipality. The philosophical anchor for Latvian collective cooperative capacity at population scale and the operational precedent for citizen mobilisation that the Civic Robot Corps of Latvia inherits. - Atmoda (Awakening), late 1980s: the Latvian national-liberation movement. - 4 May 1990 Declaration on the Restoration of Independence and 21 August 1991 Constitutional Law on the Statehood of the Republic of Latvia. - Latvian cooperative tradition (kooperatīvs): pre-Soviet agricultural and consumer cooperatives; reviving post-1991 particularly in agriculture. REPLICATION THRESHOLD ANCHORS (same as US federal, India, UK, Poland, Ukraine, Indonesia, Taiwan, and Alaska variants): - Boston Dynamics Atlas, Tesla Optimus, Apptronik Apollo, Agility Robotics Digit, Unitree G1/R1, foundation-model robotic intelligence ecosystem (see prior verification notes). - Latvian engineering and IT capacity: Riga Technical University (founded 1862), University of Latvia (1919), Latvian University of Life Sciences and Technologies; growing Latvian IT and robotics sector with EU coordination. LATVIAN REGIONAL FRAMEWORK: - **5 statistical planning regions**: Rīgas, Vidzemes, Kurzemes, Zemgales, Latgales. These regional designations provide the natural delivery-unit structure for an Authority operating at Latvia's small-jurisdiction scale (~1.88M population). - **119 municipalities** under the 2020-2021 administrative- territorial reform — the operational local-government tier beneath the planning regions. - Strategic significance: Latgale region borders Russia and Belarus; Kurzeme region hosts critical Baltic-Sea infrastructure including the Liepāja and Ventspils ports. EXPLICITLY NOT CITED: Norway Government Pension Fund Global, Polish Bank Gospodarstwa Krajowego, Indonesian Danantara, or any non-Latvian sovereign-asset or development-bank chassis as a chartering model for this Act. Altum + Latvenergo + AST + the Latvian RRF + Latvenergo's existing public-corporation framework are sufficient as the Latvian institutional stack per the per- jurisdiction-indigenous doctrine. UNVERIFIED (flag for final-pass verification before public distribution): - Latvian state budget 2026 final total - Altum 2024 audited balance sheet figures (refresh against altum.lv 2024 Annual Report) - Latvian RRF total disbursement after fourth payment (€1.97B total minus cumulative disbursed) - Latvenergo current generation portfolio mix post-Baltic-Synchro - ELWIND project status as of Q2 2026 ================================================================================ SAEIMA OF THE REPUBLIC OF LATVIA Latvijas Republikas Saeima 14th Saeima / 2026 Session ================================================================================ LIKUMPROJEKTS / DRAFT LAW IESNIEDZIS ________ (Saeimas deputāti) INTRODUCED BY ________ (Members of the Saeima) PAR LATVIJAS RAŽOŠANAS JAUDAS IESTĀDI UN ENERĢĒTISKĀS DROŠĪBAS NODROŠINĀJUMU CONCERNING THE ESTABLISHMENT OF THE LATVIAN PRODUCTIVE CAPACITY AUTHORITY AND THE PROVISION OF ENERGY SECURITY LIKUMS / A LAW ================================================================================ LONG TITLE / GARAIS NOSAUKUMS ================================================================================ LATVIJAS REPUBLIKAS LIKUMS PAR RAŽOŠANAS JAUDAS IESTĀDI UN ENERĢĒTISKĀS DROŠĪBAS NODROŠINĀJUMU A LAW OF THE REPUBLIC OF LATVIA concerning the establishment of the Latvian Productive Capacity Authority (Latvijas ražošanas jaudas iestāde, "LRJI") as a state-owned joint-stock company on the operational chassis of JSC Development Finance Institution Altum; the establishment of the Civic Robot Corps of Latvia (Latvijas Pilsoņu Robotu Korpuss, "LPRK") as a public-good labour body; the conferral of a Personal Productive Asset entitlement (Personiskā Ražošanas Aktīva Tiesība) on every Latvian citizen ordinarily resident in the Republic, identified by Personas kods and enrolled through the existing Valsts sociālās apdrošināšanas aģentūra (VSAA) and Latvija.lv unified state-service portal infrastructure; five Regional Delivery Units (Reģionālās piegādes vienības) corresponding to the five statistical planning regions (Rīgas, Vidzemes, Kurzemes, Zemgales, Latgales); ENERGY SECURITY elevated as a co-equal Title coordinating with Latvenergo AS, Augstsprieguma tīkls AS (AST), AS Sadales tīkls, and the post- Baltic-Synchro (9 February 2025) Continental Europe Synchronous Area integration; coordination with the Latvian Recovery and Resilience Plan (€1.97 billion EU NextGenerationEU allocation); explicit declination to establish any new Latvian personal income tax, corporate income tax, value added tax, excise duty, or other Latvian tax of any kind for the funding of the Authority; explicit preservation of Latvijas Banka, Altum (beyond authorised coordination), Latvenergo, AST, Sadales tīkls, VAS Latvijas dzelzceļš, Latvijas Pasts, and all other existing Latvian institutions; consistency with the Satversme and the philosophical heritage of the Barricades of 1991, Krišjānis Barons, and the Dziesmu un deju svētki cooperative-cultural tradition; and provision for connected purposes. ================================================================================ LEGISLATIVE ROUTING NOTE ================================================================================ This Draft Law (Likumprojekts) is for introduction in the Saeima of the Republic of Latvia during the 14th Saeima, 2026 Session. Suggested committee referrals: - Budžeta un finanšu (nodokļu) komisija (Budget and Finance / Tax Committee) — lead committee for fiscal provisions and Altum coordination - Tautsaimniecības, agrārās, vides un reģionālās politikas komisija (National Economy, Agrarian, Environmental, and Regional Policy Committee) — for productive-capacity provisions and energy coordination - Aizsardzības, iekšlietu un korupcijas novēršanas komisija (Defence, Internal Affairs, and Anti-Corruption Committee) — for the strategic-security and energy-resilience provisions - Sociālo un darba lietu komisija (Social and Labour Affairs Committee) — for Personal Productive Asset entitlement and VSAA coordination - Eiropas lietu komisija (European Affairs Committee) — for RRF coordination - Cilvēktiesību un sabiedrisko lietu komisija (Human Rights and Public Affairs Committee) — for the Satversme-consistency provisions Funding Architecture: Four load-bearing channels: (a) State-budget annual appropriation starting with €200 million for FY2027; (b) Altum-coordinated lending and guarantees up to €600 million cumulative outstanding (Article 12); (c) Latvian RRF coordination where consistent with existing RRP investment and reform lines (Article 13); (d) Operating revenue from at-cost sales of goods produced by the Authority and the Civic Robot Corps of Latvia. No new Latvian taxation is established by this Act. ================================================================================ TITLE I — SHORT TITLE, FINDINGS, DECLARATIONS ================================================================================ ARTICLE 1. SHORT TITLE. This Act may be cited as the "Latvia Productive Capacity Authority and Energy Security Act 2026" (Latvijas ražošanas jaudas iestādes un enerģētiskās drošības likums 2026). ARTICLE 2. FINDINGS. The Saeima finds: FINDING 1 — ALTUM AS INDIGENOUS LATVIAN CHASSIS. Latvia already operates JSC Development Finance Institution Altum (AS "Attīstības finanšu institūcija Altum"), the state-owned development finance institution providing loans, guarantees, and venture-capital investments in state-defined priority areas. Altum is the indigenous Latvian chassis for productive-capacity financing at sovereign scale and is the natural Latvian-institutional anchor for the Authority under this Act, consistent with the per-jurisdiction-indigenous doctrine applied across the sibling international Productive Capacity Authority adaptations. FINDING 2 — BALTIC SYNCHRO ESTABLISHED LATVIAN ENERGY SOVEREIGNTY. On 9 February 2025 at 14:05 EET, Estonia, Latvia, and Lithuania jointly disconnected from the IPS/UPS Soviet-era electricity grid and the 2001 BRELL Agreement under Moscow's centralised dispatch, and synchronised with the Continental Europe Synchronous Area (CESA) managed by ENTSO-E. The Baltic Synchro is the largest single-event reorientation of national-grid governance in post-1991 Latvian history. Energy security is now anchored on European solidarity rather than Russian-controlled dispatch. This Act elevates Energy Security as a co-equal Title of the Authority's mandate to consolidate and extend the strategic gains of the Baltic Synchro. FINDING 3 — LATVIAN RECOVERY AND RESILIENCE FUNDING ALREADY IN DEPLOYMENT. The Latvian Recovery and Resilience Plan, with a total €1.97 billion EU NextGenerationEU allocation, has already disbursed multiple tranches including the €293 million third payment (9 May 2025) and the €371.2 million fourth penultimate payment (8 May 2026). The Authority coordinates with the existing Latvian RRP framework where consistent with approved investment and reform lines. FINDING 4 — REPLICATION THRESHOLD AND LATVIAN ENGINEERING CAPACITY. Replication-threshold humanoid robotic manufacturing technology arrived in Q4 2025 through Q2 2026 (see Verification Notes). Latvia hosts engineering capacity at Riga Technical University, the University of Latvia, the Latvian University of Life Sciences and Technologies, and a growing Latvian IT sector. Latvia is positioned to deploy this technology under Latvian productive- capacity infrastructure rather than to import the goods the technology will produce. FINDING 5 — BARRICADES OF 1991 ANCHORS THE CITIZEN-SHAREHOLDER STRUCTURE. The Barricades of 1991 (13-27 January 1991), in which Latvian civilians built barricades to defend the Saeima, the Cabinet of Ministers, Latvian Television, Latvian Radio, the Latvian Telegraph Agency, and other critical infrastructure against Soviet OMON forces, established the living national- memory principle that Latvian sovereignty is defended by Latvian citizens collectively. Five Latvians died defending the Barricades. The Personal Productive Asset entitlement under this Act is the modern operational expression of that principle: every Latvian citizen holds a non-transferable share in Latvian productive-capacity infrastructure, structurally inheriting the Barricades' principle that the Republic is the common endeavour of its citizens. FINDING 6 — DZIESMU UN DEJU SVĒTKI ANCHORS COOPERATIVE CULTURAL CAPACITY. The Latvian Song and Dance Celebration (Dziesmu un deju svētki), continuous since 1873, inscribed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity, mobilises tens of thousands of Latvian singers and dancers from every municipality in a continuous cooperative- cultural tradition. The Civic Robot Corps of Latvia inherits the operational precedent of Dziesmu un deju svētki: structured citizen mobilisation at population scale, anchored on cooperative- cultural memory, sustained across generations. FINDING 7 — KRIŠJĀNIS BARONS AND THE DAINAS ANCHOR LATVIAN NATIONAL CULTURAL MEMORY. Krišjānis Barons (1835-1923), "Father of the Dainas," edited the Latviešu Dainas corpus of approximately 217,996 Latvian folk songs that anchor Latvian national identity and the cooperative-cultural-memory tradition. The Authority's philosophical foundation rests on the principle that Latvian collective capacity, demonstrated by the Dainas, the Barricades, and Dziesmu un deju svētki, is fully sufficient to operate productive-capacity infrastructure at the scale Latvia requires. ARTICLE 3. DECLARATIONS. DECLARATION 1 — PERSONAL PRODUCTIVE ASSET ENTITLEMENT. The Saeima declares that every Latvian citizen ordinarily resident in the Republic of Latvia, identified by Personas kods, shall enjoy as a matter of statutory right under this Act a Personal Productive Asset entitlement (Personiskā Ražošanas Aktīva Tiesība) consisting of one non-transferable Productive Capacity Share, the annual distribution of dividends from inter-regional pooled productive- capacity revenue, and access to at-cost basic-needs goods produced by the Civic Robot Corps of Latvia. DECLARATION 2 — EXISTING LATVIAN INSTITUTIONS UNAFFECTED. Nothing in this Act affects the establishment, functions, governance, or operation of: (a) Latvijas Banka (the central bank within the Eurosystem); (b) Altum (JSC Development Finance Institution Altum), beyond the coordination expressly authorised by Article 12; (c) Latvenergo AS, Augstsprieguma tīkls AS (AST), AS Sadales tīkls, VAS Latvijas dzelzceļš, Latvijas Pasts, and other state-owned enterprises (beyond Title V coordination); (d) Valsts sociālās apdrošināšanas aģentūra (VSAA), Valsts ieņēmumu dienests (VID), Nacionālais veselības dienests, and other state agencies, beyond the coordination expressly authorised by this Act; (e) The Latvian Recovery and Resilience Plan, beyond the coordination expressly authorised by Article 13; (f) Latvian consumer and agricultural cooperatives in the kooperatīvs tradition; (g) The Saeima, the Cabinet of Ministers (Ministru kabinets), the President of the Republic (Valsts prezidents), the Constitutional Court (Satversmes tiesa), the Supreme Court (Augstākā tiesa), and the Satversme. DECLARATION 3 — NO NEW LATVIAN TAXATION. No new Latvian IIN, UIN, PVN, akcīzes nodoklis, or other Latvian tax of any kind is established, extended, or increased by this Act. DECLARATION 4 — MUNICIPAL AND REGIONAL AUTONOMY RESPECTED. Nothing in this Act diminishes the constitutional and statutory autonomy of the 119 Latvian municipalities or the five statistical planning regions. The Regional Delivery Units under Title IV operate in coordination with, not in displacement of, municipal and regional structures. ================================================================================ TITLE II — ESTABLISHMENT OF THE AUTHORITY ================================================================================ ARTICLE 4. ESTABLISHMENT. (1) There is hereby established the Latvian Productive Capacity Authority (Latvijas ražošanas jaudas iestāde, "LRJI" or "the Authority") as a state-owned joint-stock company under the Cabinet of Ministers, structured on the operational chassis of JSC Development Finance Institution Altum and the framework of the Law on the Development Finance Institution and the Law on Public Persons' Capital Shares and Capital Companies. (2) The State of Latvia, represented by the Cabinet of Ministers, is the sole shareholder. The Minister of Finance exercises the shareholder rights on behalf of the State. ARTICLE 5. SUPERVISORY BOARD (PADOMES). (1) The Authority is supervised by a Supervisory Board of eleven members. (2) Members include: (a) The Chair, appointed by the Cabinet of Ministers on the proposal of the Prime Minister, confirmed by the Saeima; (b) The Minister of Finance, ex officio; (c) The Minister of Economics, ex officio; (d) The Minister of Climate and Energy, ex officio; (e) The Minister of Welfare, ex officio; (f) One member designated by the Chair of the Altum Supervisory Board, as the standing interface between LRJI and Altum; (g) One member designated by Latvenergo AS as the standing energy-sector interface; (h) Three members representing the Latvian cooperative sector, Latvian trade unions (Latvijas Brīvo arodbiedrību savienība, LBAS), and the Latvian employers' confederation (Latvijas Darba devēju konfederācija, LDDK); (i) One member representing Latvian civil society and the academic community (Riga Technical University / University of Latvia / Latvian University of Life Sciences and Technologies). ARTICLE 6. MANAGEMENT BOARD (VALDE). (1) The Authority is managed by a Management Board of five members, appointed and recalled by the Supervisory Board. (2) The Board includes a Chairman (Valdes priekšsēdētājs), a Vice- Chairman for Productive Capacity, a Vice-Chairman for Energy Security and Baltic Synchro Coordination, a Vice-Chairman for Regional Delivery and Civic Robot Corps Operations, and a Vice- Chairman for Finance and Altum Coordination. ARTICLE 7. POWERS OF THE AUTHORITY. The Authority has the power to: (a) Establish, capitalise, and govern five Regional Delivery Units (Reģionālās piegādes vienības) under Article 17; (b) Issue Productive Capacity Shares under Article 14; (c) Acquire, hold, manage, lease, sell, and dispose of property including replication-threshold robotic manufacturing equipment; (d) Enter contracts with the Cabinet of Ministers, ministries, Altum, Latvenergo, AST, Sadales tīkls, Latvian municipalities, Latvian cooperatives, the European Commission RRF coordination, and private vendors; (e) Coordinate with Altum under Article 12 for borrowing and guarantees up to €600 million cumulative outstanding; (f) Coordinate with the Latvian Recovery and Resilience Plan under Article 13; (g) Distribute Productive Capacity Dividends under Article 15 through the existing VSAA and Latvija.lv infrastructure; (h) Charter the Civic Robot Corps of Latvia (Latvijas Pilsoņu Robotu Korpuss) under Title V; (i) Coordinate with Latvenergo, AST, and Sadales tīkls for energy coordination under Title VI; (j) Issue regulations and rules within the scope of its mandate. ================================================================================ TITLE III — FUNDING ARCHITECTURE ================================================================================ ARTICLE 8. PRINCIPLES OF FUNDING. Four load-bearing channels per the Legislative Routing Note; no new Latvian taxation. ARTICLE 9. NO NEW TAXATION. No new Latvian IIN, UIN, PVN, akcīzes nodoklis, or other Latvian tax of any kind is established by this Act. ARTICLE 10. INITIAL APPROPRIATION. (1) For the financial year 2027 there is appropriated from the Latvian state budget the sum of €200 million for the establishment of the Authority. (2) Subsequent annual appropriations shall be made in the ordinary annual budget Law. ARTICLE 11. STATE-TREASURY SHAREHOLDING. The State of Latvia subscribes one hundred per cent (100%) of the initial share capital of the Authority in the amount of €200 million as the founder's contribution under Article 10. ARTICLE 12. ALTUM COORDINATION. (1) The Authority and JSC Development Finance Institution Altum shall enter a Coordination Agreement (Sadarbības līgums) within twelve months of the establishment of the Authority, providing for Altum loans, guarantees, and venture-capital co-investment in Authority-operated productive-capacity facilities up to a cumulative outstanding principal of €600 million. (2) Coordination shall be consistent with the Altum Strategy 2025-2027 priority areas and the Law on the Development Finance Institution. (3) The Authority does not direct, control, or modify Altum's operations. ARTICLE 13. LATVIAN RRF COORDINATION. (1) The Authority may receive co-financing from the Latvian Recovery and Resilience Plan (€1.97 billion total EU NextGenerationEU allocation) where consistent with the Latvian RRP investment and reform lines approved by the European Commission and the Council of the European Union. (2) The Authority does not displace any existing Latvian RRP investment or reform line. ARTICLE 14. PRODUCTIVE CAPACITY SHARES. (1) The Authority shall issue Productive Capacity Shares (Ražošanas jaudas akcijas) as follows: (a) ONE Productive Capacity Share to every Latvian citizen ordinarily resident in the Republic of Latvia on the effective date of this Act, identified by Personas kods; (b) ONE Productive Capacity Share to every person born thereafter to an ordinarily-resident parent, upon birth registration; (c) ONE Productive Capacity Share to every person acquiring ordinary residence in the Republic of Latvia thereafter and obtaining a Personas kods, upon completion of a one-year ordinary-residence period. (2) Productive Capacity Shares are non-transferable. (3) A Share may be inherited by an ordinarily-resident Latvian citizen through ordinary inheritance law. (4) ONE PERSON, ONE SHARE. ARTICLE 15. ANNUAL DISTRIBUTION. (1) Seventy per cent (70%) of all productive-capacity revenue received by each Regional Delivery Unit under Title IV shall be remitted to the Authority for inter-regional pooling. Each Regional Delivery Unit retains the remaining thirty per cent (30%) for regional-level operations. (2) Seventy-five per cent (75%) of the inter-regional pool shall be distributed annually to Productive Capacity Shareholders, equally per share, through the existing VSAA and Latvija.lv infrastructure. (3) The remaining twenty-five per cent (25%) is retained by the Authority for operating reserves, Altum-coordinated debt repayment, and expansion capital. (4) The annual distribution shall be made on a date determined by the Authority with a target date of 18 November (Latvijas Republikas Proklamēšanas diena / Proclamation of the Republic of Latvia Day) in each year, symbolically connecting the Personal Productive Asset entitlement to Latvian constitutional sovereignty. ================================================================================ TITLE IV — FIVE REGIONAL DELIVERY UNITS ================================================================================ ARTICLE 16. FIVE REGIONAL DELIVERY UNITS. (1) The Authority establishes five Regional Delivery Units (Reģionālās piegādes vienības, "RPV") corresponding to the five statistical planning regions of Latvia: (a) RPV Rīgas (Rīga region, capital region); (b) RPV Vidzemes (Vidzeme region, northeastern Latvia); (c) RPV Kurzemes (Kurzeme region, western Latvia including Liepāja and Ventspils ports); (d) RPV Zemgales (Zemgale region, central-southern Latvia); (e) RPV Latgales (Latgale region, eastern Latvia bordering Russia and Belarus — strategic-security priority). (2) Each RPV is administered by a Director appointed by the Authority Board with the advice of the relevant regional planning region administration and the relevant municipal leaderships. (3) Each RPV operates within the legal framework of the Latvian municipalities within the region, coordinated through the Latvian Association of Local and Regional Governments (Latvijas Pašvaldību savienība, LPS). ================================================================================ TITLE V — CIVIC ROBOT CORPS OF LATVIA ================================================================================ ARTICLE 17. ESTABLISHMENT. (1) There is hereby established within the Authority a public-good labour body to be known as the "Civic Robot Corps of Latvia" (Latvijas Pilsoņu Robotu Korpuss, "LPRK" or "the Corps"). (2) The Corps operates replication-threshold robotic manufacturing equipment for at-cost basic-needs goods production and other service lines. ARTICLE 18. SERVICE LINES. The Corps shall operate: (a) At-cost goods production and distribution (coordinating with the Food, Resource, and Commodity Assurance Programme under the sibling Latvia Food Assurance Act); (b) Latgale-priority distribution (the eastern Latvian region bordering Russia and Belarus, with strategic-security significance and historic patterns of geographic and economic marginalisation that warrant priority Corps deployment); (c) Daugava-cascade hydropower coordination with Latvenergo for Corps-operated maintenance and modernisation services at the Pļaviņas, Ķegums, and Rīga hydroelectric power plants; (d) Baltic offshore-wind deployment coordination with Latvenergo, AST, and the Latvia-Estonia ELWIND joint project for Corps- operated installation and maintenance services; (e) Coordination with Latvian agricultural cooperatives (kooperatīvs), including LPKS Latraps, for Corps-operated value-added processing of Latvian-grown agricultural output; (f) Healthcare-supply-chain logistics coordination with the Nacionālais veselības dienests and Latvian hospital networks; (g) Strategic-reserves coordination with the Latvian National Armed Forces (Nacionālie bruņotie spēki, NBS) and the Zemessardze (National Guard) given Latvia's NATO eastern- frontier position; (h) Coordination with the Latvian Song and Dance Celebration (Dziesmu un deju svētki) infrastructure for cooperative- cultural-capacity expansion in Corps service-line operations. ARTICLE 19. HUMAN WORKFORCE. (1) The Corps employs a human workforce of Latvian ordinarily- resident citizens, with regional preference and explicit Latgale-region recruitment priority. (2) The Corps shall: (a) Maintain a wage floor of 120% of the Latvian national minimum wage (minimālā mēneša darba alga); (b) Provide social-insurance contributions through VSAA at the standard employer-side rate; (c) Coordinate with Latvian vocational secondary education and the Latvian university sector for apprenticeship pipelines; (d) Provide explicit pathways from Corps employment to the Latvian civil service (Valsts dienests), to the Latvian National Armed Forces, to the Zemessardze, and to state- owned enterprises. ================================================================================ TITLE VI — ENERGY SECURITY AND BALTIC SYNCHRO COORDINATION ================================================================================ ARTICLE 20. ENERGY SECURITY AS A CO-EQUAL MANDATE. The Saeima declares that ENERGY SECURITY of the Republic of Latvia is a co-equal Title of the Authority's mandate alongside productive capacity and the Civic Robot Corps. The structural reasons are: (a) The 9 February 2025 Baltic Synchro disconnection from BRELL and synchronisation with the Continental Europe Synchronous Area (CESA) consolidated Latvian energy sovereignty; sustaining and extending those gains is a permanent national priority; (b) The Daugava hydroelectric cascade (Pļaviņas, Ķegums, Rīga) operated by Latvenergo is a load-bearing Latvian indigenous energy asset that requires sustained modernisation investment; (c) The Baltic offshore-wind build-out under the Latvia-Estonia ELWIND project and other developments is the principal Latvian future-capacity programme; (d) NATO eastern-frontier security context requires energy resilience independent of any Russian-controlled infrastructure. ARTICLE 21. LATVENERGO AND AST COORDINATION. (1) The Authority and Latvenergo AS shall enter a Coordination Agreement within twelve months of the Authority's establishment, providing for Corps-operated deployment and maintenance services for Latvenergo's electricity-generation portfolio, including the Daugava hydroelectric cascade and Latvenergo's growing renewable-energy portfolio. (2) The Authority and Augstsprieguma tīkls AS (AST) shall enter a parallel Coordination Agreement providing for Corps-operated grid-deployment and maintenance services in support of the post-Baltic-Synchro Latvian grid integration with CESA. (3) The Authority does not direct, control, or modify Latvenergo or AST operations. ARTICLE 22. BALTIC OFFSHORE-WIND COORDINATION. The Authority shall coordinate with Latvenergo, AST, the Ministry of Climate and Energy, and the Latvia-Estonia ELWIND joint offshore- wind project for Corps-operated deployment and maintenance services for Latvian Baltic Sea offshore-wind capacity. ARTICLE 23. STRATEGIC RESERVES AND NATO EASTERN-FRONTIER SECURITY. (1) Recognising Latvia's NATO eastern-frontier position, the Authority shall maintain strategic reserves of basic-needs goods, distributed across the five Regional Delivery Units with priority allocation to the Latgale region, sufficient to support Latvian civil-defence requirements consistent with the Ministry of Defence (Aizsardzības ministrija) and Latvian National Armed Forces planning. (2) The strategic reserves are managed in coordination with the Latvian National Armed Forces and the Zemessardze. ================================================================================ TITLE VII — IMPLEMENTATION PHASES ================================================================================ ARTICLE 24. FOUR-PHASE IMPLEMENTATION. PHASE I — ESTABLISHMENT (Months 0-12). Authority established; Supervisory Board and Management Board appointed; five RPVs seated; Productive Capacity Shares issued via Personas kods + VSAA + Latvija.lv; Altum Coordination Agreement signed. PHASE II — INITIAL CORPS OPERATIONS (Months 12-36). Civic Robot Corps of Latvia commences operations in Rīga and Kurzeme regions (urban centres + port infrastructure); Latvenergo + AST Coordination Agreements signed; initial Altum-coordinated borrowing up to €300 million drawn. PHASE III — LATVIA-WIDE OPERATIONS (Months 36-72). Corps operations extend to all five RPVs with priority Latgale deployment. Baltic offshore-wind ELWIND coordination operational. Annual Productive Capacity Dividend in regular distribution on 18 November. PHASE IV — STEADY-STATE OPERATING POSTURE (Month 72 onward). Authority reaches steady-state. No sunset. ================================================================================ TITLE VIII — GENERAL PROVISIONS ================================================================================ ARTICLE 25. EFFECTIVE DATE. (1) Articles 1 (Short Title) and 25 (Effective Date) take effect on the date this Act is promulgated in the Latvijas Vēstnesis. (2) Remaining provisions take effect on 1 July 2027. (3) The Cabinet of Ministers shall issue implementing regulations (Ministru kabineta noteikumi) within 120 days of promulgation. ARTICLE 26. SEVERABILITY. If any provision is held invalid by the Constitutional Court (Satversmes tiesa), the invalidity does not affect other provisions that can be given effect. ARTICLE 27. SATVERSME CONSISTENCY. This Act is enacted consistent with the Satversme of the Republic of Latvia and the philosophical heritage of the Barricades of 1991, Krišjānis Barons and the Dainas, and the Dziesmu un deju svētki cooperative-cultural tradition. ARTICLE 28. INTERPRETATION. In this Act — "the Authority" or "LRJI" means the Latvian Productive Capacity Authority established under Article 4; "the Corps" or "LPRK" means the Civic Robot Corps of Latvia established under Article 17; "RPV" means a Regional Delivery Unit established under Article 16; "Altum" means JSC Development Finance Institution Altum; "Latvenergo" means Latvenergo AS; "AST" means Augstsprieguma tīkls AS; "VSAA" means Valsts sociālās apdrošināšanas aģentūra; "Latvian RRF" means the Latvian Recovery and Resilience Facility allocation under the EU Recovery and Resilience Facility; "Baltic Synchro" means the 9 February 2025 synchronisation of the Estonian, Latvian, and Lithuanian electricity grids with the Continental Europe Synchronous Area, managed by ENTSO-E; "planning region" means a Latvian statistical planning region (Rīgas, Vidzemes, Kurzemes, Zemgales, or Latgales); "kooperatīvs" means a Latvian cooperative; "ordinarily resident" has the meaning given by Latvian residence law. ================================================================================ - END - ================================================================================