Established under the guidance of the Ministry of Foreign Affairs through expanding the functions of the Central Finance and Contracting Agency (CFCA), the Latvian Development Cooperation Agency started its work in 2022. The main task of the new agency is to promote the participation of implementers of Latvian development cooperation projects in projects financed by foreign international donors.

In the summer of 2023, the Agency launched an independent external audit to receive a positive assessment from the European Commission. This will allow Latvia as the lead partner to take charge of the Commission’s development cooperation projects without intermediaries. This means that the Agency as the lead partner will be able to implement the so-called delegated cooperation or indirect management projects. Currently, Latvia does not have any institution with such an assessment from the Commission.