The aim of the project is to prevent infrastructure disruption in Daugavpils city and create an alternative route for transit and freight transport, separating it from local public transport flows. The project “Construction of two-level Smiltenes Street transfer with transmissions up to the intersection of Smilšu and Kaunas streets in Daugavpils” is a sequential continuation 2007-2014. Investments in Daugavpils city transport infrastructure made during the planning period of the European Union funds improve and promote integrated linkage in the TEN-T network, developing the functions of urban transit hubs, increasing the highway street – Smilšu Street, Varshavas Street, Malu Street’s throughput capacity, improving the average speed of transport flow and shortening the time needed while at the same time promoting improvement of the quality of ecological and living environment for residents of the city. As a result of the project, the transfer will be built over the hub and the corresponding TEN-T railway lines, thus providing an alternative freight transport route. Within the framework of the project “Construction of two-level Smiltenes Street transfer with transmissions to the intersection of Smilšu and Kaunas Street in Daugavpils” the following activities are planned:1) Round I Smilšu Street reconstruction in the section from Kauņas Street to Māla iela including the construction of rotation circles and reconstruction of related engineering communications – 2.070 km²)II stage Construction of a transport vessel (bridge) over the railway Smilšu Street – public works – public infrastructure section 0.4 km. As a result of the implementation of the above mentioned activities, the possibility will be provided for cargo transport movement in a new route, creating an alternative to the existing transit route on 18 November Street – Daugavas Street in Daugavpils, thus facilitating traffic flow between city residential districts Jaunbūve – Chemistry – Vecā Forštadte and improving connectivity to the main road sections of the TEN-T road A6 (Riga-Daugavpils- Krāslava-Belarus border (Patarnieki), A13-Kietne (Daugava-Greekija border), A13 (Daugava-Greekija) border (Patarnieki), A13 (Daugava-Gebee border), A13 (Dauge-Greebee border), A13 (Kaugavpils-Kaugebee border), A13 (Kaugava-Georgian border) P67: Daugavpils-Bridges and P68: Daugavpils-Skrudaliena-Belarus border (Silene).Implementation of the project will provide an alternative route for transit traffic on the motorway A13, without entering the city centre, since transit cargos are planned to be redirected through the Sand and 1. The passenger street. Streets to be rebuilt and constructed within the framework of the project are 100 % in Daugavpils city territory. According to data collected by SJSC “Latvian State Roads” on traffic intensity at Daugavpils city borders and Special Support Objective 6.1.4. Linking urban infrastructure to the TEN-T network “Integration of development centres of national importance in the TEN-T network” and the analysis carried out in the preliminary assessment lead to the conclusion that both in the long term and in the short term, the volume of freight transport in Daugavpils has increased. There is also an increase in freight traffic flows on TEN-T roads. Given that Daugavpils is an important transport hub (both motorways and railways) in the Latgale region, the intensity of freight transport traffic remains high.Daugavpils municipality’s planned investments in production infrastructure and regional support programmes, as well as the establishment of Latgale Special Economic Zone promote the development of industrial territories. New production facilities are being created in the city, which consequently increase the number of trucks within the city. The Daugavpils Sustainable Development Strategy until 2030 identifies the desired long-term changes in the development of traffic infrastructure – high internal and external mobility. The project is included in the investment plan of Daugavpils City Development Programme 2014-2020. This is in line with action V1-1 “Improving the international reach of the city and integrating the TEN-T transport network”, which has resulted in a modernised transport infrastructure; Orderly transit traffic movement; The total cost of the project is EUR 13448451,37, of which:•Co-funding of the Cohesion Fund (CF) EUR 10970596.00 (85,00 % of the total eligible costs);•State budget grant EUR 1426048,36 (11.05 % of total eligible costs);•Daugavpils municipality funding for eligible costs EUR 509938.64 (3,95 % of the total eligible costs);•Daugavpils municipality’s funding for ineligible costs of 2020,37 will be started on 2020,37 March.