guidelines for applicants€¦ · web viewand. european agency for reconstruction in serbia and...

Ministry of Regional Development and Public Works of Bulgaria

and

European Agency for Reconstruction in Serbia and Montenegro

Neighbourhood Programme

Bulgaria – Serbia & Montenegro 2004

Local Capacity Building

Guidelinesfor grant applicants

responding to the call for proposalsfor 2004

Open Call for ProposalBudget line: BG2004/016-785 04SER01/02/001

Reference: BG2004/016-785.01.01/Grants04SER01/02/001-04SER01/11/066

Deadline for receipt of applications: July 17 th 2006

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NOTICEPlease note that the procedure has changed. The evaluation of your application will only be performed if your concept note is provisionally selected. Your application will then undergo the evaluation. The eligibility conformity check will only be performed for the proposals that have been provisionally selected according to the score obtained after the final evaluation, on the basis of the supporting documents which will be requested by the Joint Evaluation Committee and the Declaration by the applicant signed and sent together with the application.

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Table of contents

1. THE NEIGHBOURHOOD PROGRAMME...........................................................................................4

1.1 BACKGROUND........................................................................................................................ 4

1.2 OBJECTIVES OF THE PROGRAMME AND PRIORITY ISSUES FOR YEAR 2004................4

1.3 FINANCIAL ALLOCATION PROVIDED BY THE CONTRACTING AUTHORITY....................6

2. RULES OF THIS CALL FOR PROPOSALS.......................................................................................9

2.1 ELIGIBILITY CRITERIA............................................................................................................92.1.1 Eligibility of Applicants: who may apply?.........................................................................................92.1.2 Partnership and Eligibility of Partners...........................................................................................122.1.3 Eligible actions: actions for which an application may be made....................................................132.1.4 Eligibility of costs: costs, which may be taken into consideration for the grant.............................18

2.2 HOW TO APPLY, AND THE PROCEDURES TO FOLLOW..................................................222.2.1 Application form............................................................................................................................ 222.2.2 Where and how to send the applications......................................................................................222.2.3 Deadline for receipt of applications...............................................................................................232.2.4 Further information........................................................................................................................ 23

2.3 EVALUATION AND SELECTION OF APPLICATIONS..........................................................25

2.4 SUBMISSION OF SUPPORTING DOCUMENTS FOR PROVISIONALLY SELECTED PROPOSALS29

2.5 NOTIFICATION OF THE CONTRACTING AUTHORITY’S DECISION..................................312.5.1 Content of the decision......................................................................................................................312.5.2 Indicative time table........................................................................................................................... 31

2.6 CONDITIONS APPLICABLE TO IMPLEMENTATION OF THE ACTION FOLLOWING THE CONTRACTING AUTHORITY'S DECISION TO AWARD A GRANT..................................................32

3. LIST OF ANNEXES........................................................................................................................... 34

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1. THE NEIGHBOURHOOD PROGRAMME

1.1 BACKGROUND

The Commission Communication of 11th March 2003 “Wider Europe – Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours” proposed that “the European Union should aim to develop a zone of prosperity and a friendly neighbourhood with whom the European Union enjoys close, peaceful and co-operative relations.”As one element of this Wider Europe policy, the EC prepared a Communication focused on the possibility of creating a New Neighbourhood Instrument supporting cross-border and regional/trans-national co-operation along the external borders of the Union as of 2007: “Paving the way for a New Neighbourhood Instrument”. The concept of the Neighbourhood Programme refers to programmes to be implemented on the new external borders of the European Union due to the enlargement process. As the first step to pave the way for the new instrument, in the years 2004-2006 Neighbourhood Programmes are to be implemented on the new external borders.The main operational challenge of the Neighbourhood Programmes is to improve co-ordination between the various financing instruments concerned within the existing legislative and financial framework. For this purpose, a responsible authority is to be nominated in each Candidate Country, and a wide partnership at regional, local and non-governmental level should be involved, as it is presently done in the Member States. The Neighbourhood Programme funding is to be allocated from the appropriate external instruments (PHARE, TACIS and CARDS). Each Neighbourhood Programme has to organize a single call for proposals, and a single selection process for the allocation of the internal and external funding.The Neighbourhood Programme between Bulgaria and Serbia and Montenegro is the result of a joint programming effort of the relevant national authorities and various regional partners involved in the programme. The priorities defined within the Joint Programming Document (JPD) under the Neighbourhood Programme between Bulgaria and Serbia and Montenegro (2004-2006) aim at fostering socio and economic cohesion by increasing cross border relations mainly through the implementation of actual interventions on the territory and its economy and through the support of inter-linkages among the local actors and the local communities. The eligible area for the Cross-Border Cooperation Neighbourhood Programme between Bulgaria and Serbia and Montenegro covers the borderline length between the two Countries and, in line with the EC Guidance Note, eligible areas are determined at level NUTS III (EUROSTAT).The joint actions play a key part in the process of preparation of Bulgaria and Serbia and Montenegro for accession, in particular through the improvement of the administrative capacity of local/ regional actors. The project represents thus an important element in the preparations for implementation of EU regional policy and coordination of structural instruments. The proposed grant scheme is in line with the National Economic Development Plan of the Republic of Bulgaria over the 2000-2006 period, and namely with priority 4 “Developing Cross-border Cooperation” under the indicative programme for “Balanced and Sustainable Regional Development” .This Call for Proposals is implemented jointly on both sides of the border. For Bulgarian side of the border the Contracting authority is the Ministry of Regional Development and Public Works. For Serbia and Montenegro side of the border the European Agency for Reconstruction is the Contracting authority. The Applicants and partners from both sides of the border will be financed from different sources, Bulgarian from PHARE and Serbian from CARDS funds. In case of integrated projects one single project will be financed from two sources. The Joint Technical Secretariat (JTS) located in Pernik, Bulgaria will be responsible for management of the Call for Proposals. The JTS will also be responsible for contacts with applicants and beneficiaries and for project/programme reporting.

1.2 OBJECTIVES OF THE PROGRAMME AND PRIORITY ISSUES FOR YEAR 20044

The project is related to Priorities 1 (‘’Promoting sustainable economic development’’) and 2 (‘’Support to social, social and economic cohesion’’) of the Joint Programming Document for PHARE CBC/CARDS Neighbourhood Programme between the Republic of Bulgaria and Serbia & Montenegro for the period 2004-2006. (JPD can be found on the web site of Bulgarian Ministry for Regional Development and Public Works (www.mrrb.government.bg) and the web site of the Ministry for International Economic Relations of the Republic of Serbia (MIER) (www.mier.sr.gov.yu)The Local capacity building grant scheme corresponds to the following measures from JPD, by placing emphasis firstly on the JPD Priority 2

Measure: 2.1. Regional and local co-operation between institutions and communities - The measure encourages cross-border co-operation between organizations, central government offices, agencies, institutions and communities at regional/local level for a better management of public services and an enhanced interaction for a genuine participatory development.

This measure is based on the involvement of stakeholders in the local development process by the adoption of an effective bottom-up approach. The aim is to establish and create favourable conditions to further effective cross-border co-operation. In particular the measure supports various kinds of co-operation among different typologies of actors: public entities (municipalities, central government, etc.), local agencies and NGOs. These actions can be focused mainly on the better provision of public services and facilities, the definition and the provision of policy recommendations suitable for an enhanced cross-border co-operation and on various actions for public awareness.

Measure: 2.2. Enhancing cross-border social and economic cohesion - The creation of co-operation structures for providing joint cross-border services to businesses of the eligible region and especially SMEs, mainly through the promotion of strategic cross-border network of intensified enterprise co-operation, the promotion of local initiatives and innovations for employment and entrepreneurship and the joint promotion of products to existing or new markets.

This measure supports the creation and the development of common business facilities and information networks (organization of cross-border trade fairs/exhibitions and business meetings/events, common market research & marketing activities, websites and regional portals, etc.), as well as assistance to the process of standard certification in order to ensure quality of products and services and strengthening of support services to businesses (development of networks and databanks, organization of expositions, creation of printed material, organization of business meetings – workshops). The development and implementation of joint cross-border tourism packages (integrated packages) as well as the implementation of joint commercial/trading projects in various strategic fields will benefit of this measure’s support.

The promotion of interventions and investments on environmental friendly agriculture as well as all possible combinations with bio-agriculture and eco-tourism, organic farming, etc. could be supported. Projects aiming at exploiting synergies between environment and tourism could also be favoured. Interventions to set up joint mechanisms to prevent and cope with environmental disasters would be financed. The measure covers also potential projects to prevent water and land pollution.

The Local capacity building grant scheme supports to a certain extent the future implementation of projects under JPD Priority 1 while giving the opportunity to identify, formulate and preliminary prepare small-scale investment initiatives for further implementation under the Neighbourhood Programme over the next coming years (2005 and 2006):

Measure: 1.1. Improving business related infrastructure - The measure aims at improving actual infrastructures that are concretely impacting on cross-border economic development, business and trade, transports and logistics, services and tourism. This measure will focus mainly on developing those actual types of small-scale infrastructure bearing cross-border importance with the aim at reinforcing potential for local based economic activities in the area and create the conditions for the enhancement of the local economic competitiveness, especially when its cross-border dimension represents an opportunity to be exploited.

Measure: 1.2. Safeguard and management of natural environment - The measure supports structural and infrastructure interventions for protection, safeguard, promotion and management of the natural environment, biodiversity and natural resources. The measure aims at promoting specific cross-border interventions to

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http://www.mier.sr.gov.yu/

http://www.mrrb.government.bg/

increase the safeguard and clearing of environmental resources as well as the re-cultivation and protection of lands. This will be mainly done through an effective exchange of experiences and the establishment of joint activities.

1.2.1 Overall objectives

The overall objectives of the local capacity building grant scheme are:a. To maximize the social and economic cohesion between the border area by encouraging

contacts and co-operations at various levels;

b. To exploit and manage the border area’s territory in a co-coordinates and integrated way between the two sides of the border, thus creating the basis for a sustainable economic development;

c. To support an integrated approach for addressing regional disparities in the border region; by strengthening and development of joint initiatives across the border, the projects should stimulate real cross-border co-operation in the regions, seen as one single unit;

1.2.2 Specific objective

The Specific objective of the current grant scheme is: To increase the capability of local and regional authorities, as well as their socio-economic

partners, to develop and implement projects with clear cross-border impact and in line with the NP JPD Bulgaria - Serbia and Montenegro (2004-2006);

1.2.3 Priority areas

The Local Capacity Building Grant Scheme will finance projects in the following priority areas:

Support for strengthening cross border cooperation networks - The rationale behind is to involve partnerships of cooperating districts/municipalities from the both sides of the border and based on jointly developed strategy addressing limited number of topics and joint priorities. It aims at providing the basis for future programming approaches within, and by, the regions thus allowing for the concentration of available resources on a limited number of objectives, which have been agreed by local and regional partnerships.

Support to Local Development Organizations Increasing the number and capacities of area-based, local development organisations (LDO), which can take on the role of ‘development agents’ or project promoters is an essential part of the development process. LDO functions might include the promotion of regions for inward investment; establishing links with private sector developers; looking for funding to support local initiatives and developing public-private partnerships. Therefore the grant scheme aims also at promoting the development of LDO in the border region with strong networking, regional promotion and project development skills.

Support to project development - This specific field of intervention aims to increase regional absorption capacity by supporting the preparation of strategically important projects across the border, which should be ready for implementation in the next two years of the NP. The rationale behind is to prepare a project-pipeline of small-scale investment projects, and mostly such with direct impact on the cross border economic development, business and trade, transports and logistics, services and tourism. The vision behind such investment initiatives should clearly demonstrate a cross-border impact as well as the potential to foster further economic activities in the area and create the conditions for the enhancement of the economic competitiveness.

1.3 FINANCIAL ALLOCATION PROVIDED BY THE CONTRACTING AUTHORITY

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1.3.1. Financial Provision for Bulgaria

The overall indicative amount made available under this Call for Proposals for Bulgaria is 2 680 000 Euro [Phare support is at the amount of EUR 2 280 000, of which EUR 1 200 000 are allocated for investment support and EUR 1 080 000 for Institution Building, and National Co-Financing amounts to the total of EUR 400 000]. The Contracting Authority reserves the right not to award all available funds.

1.3.2. Financial Provision for Serbia and Montenegro

The overall indicative amount made available under this Call for Proposals is 1 550 000 Euro for Serbia and Montenegro. The Contracting Authority reserves the right not to award all available funds.

Size of grants

For Bulgaria any grant1 award under this programme must fall between the following minimum and maximum amounts

for Component 1 and Component 2 minimum amount: EUR 50 000 maximum amount: EUR 100 000

and for Component 3 minimum amount: EUR 50 000 maximum amount: EUR 200 000

For Serbia and Montenegro any grant2 award under this programme must fall between the following minimum and maximum amounts

minimum amount: EUR 50 000 maximum amount: EUR 300 000

Nota Bene: The Joint Evaluation Committee reserves the right to recommend reduction of grant costs if they are deemed excessive.

In addition, no grant may exceed 90 % of the total eligible costs of the action [Please, refer also to section 2.1.4 below].

NOTE: Only for Bulgarian Applicants! In case, an applicant is a SME no grant may exceed 50 % of the total eligible costs of the action [Please, refer also to section 2.1.4 below].

The balance must be financed from the applicant’s or partners’ own resources, or from sources other than the European Community budget.

IMPORTANT

Minimum beneficiary’s co-financing3 will be 10 % of the total cost of the action.

1 Grant requested – means the amount requested by Phare Programme under this project. For component 1and 2- Grants not less than 50 000 euro and not exceeding 100 000 Euro shall be considered eligible; For component 3 - Grants not less than 50 000 euro and not exceeding 200 000 Euro shall be considered eligible;

2 Grant requested – means the amount requested by CARDS Programme under this project. Grants not less than 50 000 euro and not exceeding 300 000 Euro shall be considered eligible;

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NOTE: Only for Bulgarian Applicants! In case, an applicant is a SME minimum beneficiary’s co-financing will be 50% of the total cost of the action.

Co-financing is to be provided by the beneficiaries in order to demonstrate local commitment. Contribution in kind is not allowed. No resources, which have been assisted by Phare/CARDS or other EC support, may be taken into account as own contribution. Furthermore, project proposals financed by other Phare/CARDS or EU source could not apply.

3 Beneficiary’s co-financing : the co-financing amount must be available, necessary for carrying out the action, clearly specified in the budget for the action, actually incurred during the implementation of the action and recorded and identifiable in the Applicant’s and/or partners’ accounts or tax documentation.

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2. RULES OF THIS CALL FOR PROPOSALS

These guidelines set out the rules for the submission, selection and implementation of actions financed under this call, in conformity with the provisions of the Practical guide (available on the Internet at this address: http://www.europa.eu.int/comm/europeaid/tender/practical_guide_2006/index_en.htm )

2.1 ELIGIBILITY CRITERIAThere are three sets of eligibility criteria, relating to:

organizations which may request a grant [Please refer to section 2.1.1], and their partners [Please refer to section 2.1.2];

actions for which a grant may be awarded [Please refer to section 2.1.3];

types of cost which may be taken into account in setting the amount of the grant [Please refer to section 2.1.4];

2.1.1 Eligibility of Applicants: who may apply?

In order to be eligible for a grant, applicants/cross-border applicants must:

For component 1 - Support for Strengthening Cross Border Cooperation Networks

be legal persons, and

be non-profit-making legal organization and

be one of the following types of organisations: public administrations [municipalities]; representative institutions of citizens; educational institutions; municipalities; regional development organizations, Euro-regions, NGOs, cultural institutions, health institutions, professional organizations etc. and

be located within an eligible Bulgarian district or Serbian district or to be registered branch in one of the eligible districts [for more details, please, refer to section 2.1.3] and

be nationals of Republic of Bulgaria and/or of Republic of Serbia and Montenegro;

be registered at least 6 months before the deadline for submission of this Call for proposals and

be directly responsible for the preparation and management of the action with their partners, not acting as an intermediary and

have stable and sufficient sources of finance to ensure the continuity of their organization throughout the action and, if necessary, to play a part in financing it and

be experienced and able to demonstrate their capacity to manage activities corresponding with the size of the action for which a grant is requested.

IMPORTANT

Profit-making organizations, district administrations and political parties are not eligible.

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http://www.europa.eu.int/comm/europeaid/tender/practical_guide_2006/index_en.htm

For component 2 - Support to Local Development Organizations


be

non-profit-making organization for Serbia and Montenegro;

non-profit-making organization or SME for Bulgaria;

and be one of the following types of organisations: Chambers of commerce; business support agencies;

Euro-regions, NGOs; local development funds; labour chambers and employment offices; business incubators, business sectors representative bodies; educational institutions; etc.; Only for Bulgarian Applicants! be Small or Medium Sized Enterprise according to the requirements of the Bulgarian SMEs Act; and

be located within an eligible Bulgarian district or Serbian district or to be registered branch in one of the eligible districts [for more details, please, refer to section 2.1.4.] and

be nationals of Republic of Bulgaria and/or Republic of Serbia and Montenegro;

be registered at least 6 months before the deadline for submission and




IMPORTANT

District administrations and political parties are not eligible.

For component 3 - Support to Project Development


be non-profit-making organization and

be one of the following types of organisations: regional and local public administrations, public authorities, regional development organizations, public utilities, public institutions or NGOs, authorities responsible for nature protection or nature parks management and public administrations, business sector representative bodies, municipal and entities; regional institutions and authorities; rural communities; municipalities, professional organizations, health institutions, educational institutions etc. and

be located within an eligible Bulgarian district or Serbian district or to be registered branch in one of the eligible districts [for more details, please, refer to section 2.1.3] and

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be nationals of Republic of Bulgaria and/or Republic of Serbia and Montenegro;

be registered at least 6 months before the deadline for submission and




IMPORTANT

Profit-making organizations, district administrations and political parties are not eligible.

IMPORTANT

In case of Bulgarian applicants Civil servants or other officials of the central and District Governor’s administrations, regardless of their administrative situation, must not apply or be involved under this Call for proposals either as Applicant or Partner.

In case of Serbian applicants civil servants may not receive funding from the grant, they may participate in the implementation of the project and their salaries may be presented as co-financing contribution.

Note: For Bulgarian applicants: In case when municipality’s servants are proposed as part of the team, please provide evidence [statement/declaration, issued by the authorized public body] that proposed servants are not civil servants.

IMPORTANTGrants may not have the purpose or effect of producing a profit for the beneficiary. “Profit” is defined as a surplus of aggregate receipts over costs for the action in question at the time when the request is made for final payment of a grant for an action.

2) Potential applicants/cross-border applicants may not participate in calls for proposals or be awarded grants if:

a. they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

b. they have been convicted of an offence concerning professional conduct by a judgement which has the force of res judicata (i.e., against which no appeal is possible);

c. they are guilty of grave professional misconduct proven by any means which the contracting authorities can justify;

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d. they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the contracting authority or those of the country where the action is to take place;

e. they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organization or any other illegal activity detrimental to the Communities' financial interests;

f. they have been declared to be in serious breach of contract for failure to comply with their contractual obligations in connection with a procurement procedure or other grant award procedure financed by the Community budget.

Applicants/cross-border applicants are also excluded from participation in calls for proposals or the award of grants if, at the time of the call for proposals, they:

g. are subject to a conflict of interests;

h. are guilty of misrepresentation in supplying the information required by the contracting authority as a condition of participation in the call for proposals or fail to supply this information;

i. have attempted to obtain confidential information or influence the joint evaluation committee or the contracting authority during the evaluation process of current or previous calls for proposals.

In the cases referred to in points (a), (c), (d), (f), (h) and (i) above, the exclusion applies for a period of two years from the time when the infringement is established. In the cases referred to in points (b) and (e), the exclusion applies for a period of four years from the date of notification of the judgment.

In part VI of the grant application form [“Declaration by the Applicant”], applicants must declare that they do not fall into any of the above categories (a) to (f).

2.1.2 Partnership and Eligibility of Partners

1) Applicants must act with partner organizations from the eligibility border regions, as specified hereafter:

Partners: In case of a SIMPLE PROJECT, applicant organizations must have at least one

partner from the other side of the border [Serbian/Bulgarian]. This is a mandatory requirement;

In case of a COMPLEMENTARY PROJECT the Bulgarian and Serbian applicants act in the proposals as mutual partners. This is a mandatory requirement;

In case of an INTEGRATED PROJECT the applicant and Cross border applicant act in the proposals as mutual partners. This is a mandatory requirement; The applicant organization may act with other Bulgarian/Serbian partner organizations, other than those stated above. However that is not a mandatory requirement.

Applicant’s partners participate in implementing the action, and the costs they incur are eligible in the same way as those incurred by the grant Beneficiary. They must therefore satisfy the same eligibility criteria as applicants.

IMPORTANT

Partners located outside the eligible area (please refer to 2.1.3 below) are not eligible for funding under this Call for Proposals. Partnership is not to be substantiated by legal documents. In this regard the partnership statement in

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the Application form [section III.2] will need to be filled-in, signed and stamped by all partners. It stands for co-operation and mutual agreement to ensure that the action have a strong cross-border nature, directly linked with the rationale of the CBC characteristics.

The following are not partners and do not have to sign the “partnership statement”

AssociatesOther organizations may be involved in the action. Such associates play a real role in the action but may not receive funding from the grant with the exception of per diem or travel costs. Associates do not have to meet the eligibility criteria referred to in section 2.1.1 and 2.1.2. The associates have to be mentioned in part IV - “Associates of the Applicant participate in the Action” of the Grant Application Form.

Subcontractors

The grant beneficiaries have the possibility to award contracts to subcontractors. Subcontractors are neither partners nor associates, and are subject to the procurement rules set out in Annex IV to the standard grant contract.

The applicant will act as the lead organization and, if selected, as the contracting party (the "Beneficiary").

2.1.3 Eligible actions: actions for which an application may be made

Definition: An Action [i.e. project] is composed of a set of activities.In order to be eligible the projects must fall into one of the categories listed bellow:

a. Simple Projects:

Projects have to be prepared by the applicant4 in co-operation with the partner/s from the other side of the border. In this case only one application is to be presented.

For this type of project the participation of at least one partner from the other side of the border is compulsory. The action expenditures are considered eligible for all partners, i.e. the applicant and his partner/s.

Direct and clear cross-border impact should be ensured. These projects should gain cross-border effect taking place mostly or exclusively on one side of the border but for the benefit of both partners;

CARDS budget will finance only the applicants from the Serbian side of the border while the applicants from Bulgarian side will be financed exclusively from PHARE budget

b.Complementary Projects:

Complementary projects have to be prepared as a result of cross border co-operation. Activities should take place on both sides of the border and show strong coherence (e.g. in content, partnership, impact).One application is submitted on each side of the border , one for Bulgarian partner, to be funded from Phare, one for the Serbian partner, to be funded from Cards. The Serbian partner will not be funded from the Phare programme and the Bulgarian partner will not be funded from the

4 4 Applicant - organisation, legal person or administrative unit that submits an application with a view to obtain a subsidy/grant and in case their project proposal is selected by the Joint Evaluation Committee will receive the subsidy/grant in order to realise the activities of the project. Applicant is responsible for the coordination of all involved project partners, harmonising project activities, establishing and maintaining regular contact with all project partners in each of the participating countries and preparing reporting on the project, including financial reporting.The Applicant in each country is responsible for the implementation of the project in line with the conditions and implementation modalities as outlined in the subsidy/grant contract. The contract obliges the Applicant to ensure the correct use of funds from Phare or CARDS respectively, and to comply with the conditions and requirements with respect to reporting, auditing and repayment.

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Cards programme. Project activities to be implemented on the different sides of the border are complementary. Clear reference should be made in the application referring to the mirror “neighbour” project, which could be either a new or mirror to already existing projects (PHARE, CARDS or other projects).

The complementary projects are not necessarily carried out parallel in time, but if so, and both project applications are submitted to the programme, two different applications should be prepared. Since these projects are registered independently, it is important to indicate the complementary project to facilitate the evaluation of the proposals. It is also possible to have more than one complementary project to a proposal. In this case all complementary projects should be indicated.

Complementary projects have to be applied for separately in each partner country comprising of actions to be carried out on one side of the border, therefore only one contract will be signed for each mirror project and the project budget should not be divided by countries. At least one partner from the other side of the border (which won’t be funded) is compulsory.

This type of project might include the extension of the impact of an already implemented project/investment on the other side of the border (e.g. adaptation of best practices). This means that there could be a time shift in the implementation of similar activities.

When complementary projects are planned to be realised parallel in time, the two applications have to be prepared in a way that allows even separate implementation, in case one of the projects is rejected during the selection process.

Special attention should be given to identify the cross-border impact of such mirror activities.

c. Integrated projects The project is developed jointly and foresees joint implementation of activities by the participating project partners from Bulgaria and from Serbia & Montenegro. The integrated project application is submitted by the Applicant and on behalf of the project partners. Partners on either side of the border contribute different elements to a single project. Separate grant contracts will be signed with the “Applicant” and the “Cross-border Applicant5”; one in both participating countries. Single reporting system will be set up in order to harmonize the implementation of the different “national” parts of the joint projects.This means that in case of integrated projects Applicants and partners from different side of the border will be financed from two different sources.

The applicant organization may also have partnership with organizations on the same side of the border. However, this is not a mandatory requirement. [Please refer to section 2.1.3].

In this case only one Application Form is to be filled in, containing all the activities of the joint project, where the details concerning the national project parts should be described in the annexes. The applicant however needs to submit two Annexes B: Project budget, for Applicant and for

5 Cross-border Applicant : organisation, legal person or administrative unit that co-ordinates the activities of a project in the partner states other than the Applicant and in case their project proposal is selected by the Joint Evaluation Committee will receive the subsidy/grant in this state. Cross-border Applicant is applicable only in case of an integrated project. The contract obliges the Cross-border Applicant to ensure the correct use of funds from Phare or CARDS respectively, and to comply with the conditions and requirements with respect to reporting, auditing and repayment. In case of secondary procurement the cross-border applicant will act as the contracting authority for its side of the border.

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Cross-border applicant separately. There should be one applicant organization from both participating countries (both of whom will be receiving funding from PHARE and CARDS, respectively), who will co-ordinate the activities and financial matters on its side of the border. These organizations should be indicated in the Section II of the Grant Application Form and they will be contracted and will hold the responsibility for the national project parts.

This type of project is rational in case of networking or harmonized actions that have activities on both sides of the border and are a prerequisite for the success to each other.

It is important that in case one of the projects is rejected during the selection process, the other one also will be eliminated (due to the fact that in this case the separate implementation is not possible).

In case the integrated or complementary projects are approved by the Joint Evaluation Committee, both Applicants will receive funding. The Bulgarian project part will be financed from PHARE, whereas the Serbian from the CARDS budget. Applicants from Bulgaria will be responsible for distributing funds to their (financing) partners in Bulgaria, whereas applicants from Serbia and Montenegro will be responsible for transferring funds to their partners in Serbia and Montenegro.

Duration: The duration of the action may not exceed 12 months.

Sectors or themes: Small Scale non-investment Local Capacity Building Grant Scheme aims to promote sustainable economic development in the border region and to provide support to social, institutional and economic cohesion. Activities have to be related to the following priority areas:

Component 1: Support for strengthening cross border cooperation networks;Component 2: Support to local development organizations;Component 3: Support to project development.

Location: Actions must take place in one or more of the following countries: Republic of Bulgaria and Serbia & Montenegro.

For Bulgaria, the following districts with their relevant municipalities are eligible: District of Vidin – Municipality of: Belogradchik, Boynitsa, Bregovo, Vidin,

Gramada, Dimovo, Kula, Makresh, Novo Selo, Ruzhintsi, Chuprene;

Municipalities are at the total number of 11 ; District of Montana – Municipality of: Berkovitsa, Boychinovtsi, Brusartsi,

Valchedram, Varshets, Georgi Damyanovo, Lom, Medkovets, Montana, Chiprovtsi, Yakimovo;

Municipalities are at the total number of 11 ; District of Sofia –Municipality of: Godech, Dragoman, Kostinbrod, Svoge,

Slivnitsa;

Municipalities are at the total number of 5 ; District of Pernik – Municipality of: Breznik, Zemen, Kovachevtsi, Pernik,

Radomir, Tran15

Municipalities are at the total number of 6 ; District of Kyustendil – Municipality of: Bobovdol, Boboshevo, Kocherinovo,

Kyustendil, Nevestino, Rila, Sapareva Banya, Dupnitsa, Treklyano;

Municipalities are at the total number of 9;

For Serbia and Montenegro, the following districts with their relevant municipalities are eligible:

District of Bor – Municipality of: Bor, Kladovo, Majdanpek, Negotin;

Municipalities are at the total number of 4 ; District of Zajecar – Municipality of: Boljevac, Zajecar, Knjazevac, Sokobanja;

Municipalities are at the total number of 4 ; District of Nisava – Municipality of: Nis, Niska Banja, Aleksinac, Gadzin Han,

Doljevac, Merosina, Razani, Svrljig;

Municipalities at the total number of 8 ; District of Pirot – Municipality of: Babusnica, Bela Palanka, Dimitrovgrad, Pirot;

Municipalities are at the total number of 4 ; District of Jablanica – Municipality of: Bojnik, Vlasotince, Lebane, Leskovac,

Medvedja, Crna Trava;

Municipalities are at the total number of 6 ; District of Pcinja – Municipality of: Bosilegrad, Bujanovac, Vladicin Han, Vranje,

Presevo, Surdulica, Trgoviste.

Municipalities are at the total number of 7 ;

IMPORTANT

Activities outside the above-mentioned area are not eligible for funding under this Grant Scheme.

Types of action

Indicative list of activities per component that may be financed under this Call can be found bellow:

For Component 1 - Support for Strengthening Cross Border Cooperation Networks

a. Support for the internal management aspects of regional/local administrations;

b. Creation of networks as the basis of regional partnerships by which information, experience and best practice can be exchanged;

c. Training courses and workshops on programme and project preparation;

d. Elaboration of regional and sub-regional cross-border strategies: local development plans; local action plans; small-scale urban and rural spatial development plans, etc;

e. Carrying out detailed stakeholder analysis, review the roles and capacities of stakeholders to engage in the development process;

f. Partnership building and promotion of project based partnerships.

g. Transfer of know-how and integration of institutional/ capacity building specific areas of common interest [e.g. approximation with the EU requirements];

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a. Developing marketing strategies;

b. Support to implementation of joint research projects with direct relevance to the border region;

c. Organizing training sessions, conferences and seminars to local entrepreneurs;

d. Counselling and advising in business start up, business planning, technology transfer, patents, legal affairs, finances and marketing;

e. Information services for /to the entrepreneurs active in the border region;

f. Support to the development of new, competitive products, services and technologies.

a. cross-border investment plans;

b. feasibility studies for cross-border infrastructures;

c. cross-border development plans, feasibility studies and environmental impacts assessments;

d. establishment of cross-border monitoring systems for natural safeguard;

e. joint database for controlling pollution and assessing environmental impact;

f. support to marketing or certifying local products;

g. pollution prevention plans for the border area;

h. actions for introducing or adopting environmental friendly agriculture;

i. Exploitation of synergies between environment and tourism.

The following types of actions are also eligible to be implemented by Applicants only in Serbia and Montenegro:

improvement of local transport facilities: bus stops, parking lots and lanes for heavy traffic, signposts, shortcuts, road illuminations, checkpoints improvement;

improvement of cross-border accessibility of business activities including enhancement of tourism attractions;

improvement of enterprises and business units accessibility to actual cross-border infrastructures, facilities and connections, including logistics and inter-modality;

small business non-financial facilities and actual services for cross-border activities (lots equipped for local marketplaces, premises and facilities for settling small businesses);

The following types of actions are ineligible:

Actions concerned only or mainly with individual sponsorship for participation in workshops, seminars, conferences, congresses;

Actions concerned only or mainly with individual scholarship for studies or training courses;

Actions concerning Infrastructure acts [with the exception for Component 3, where the eligible activities are described above];

Actions without real cross-border impact;

For Component 2 - Support to Local Development Organizations

For Component 3 - Support to Project Development

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Actions related to profit-making activities;

Actions started before candidates have signed the contract for awarding a grant;

Actions linked to political parties;

Actions covered by other community programmes.

The following types of actions are ineligible to be implemented by Applicants only in Bulgaria:

Actions which fall within the general activities of competent state institution or state administration services, including local government;

Actions with provisions for financing the usual (routine) activities of the local organizations, especially covering their running costs;

Actions related to charitable donations;

Number of proposals and grants per applicant:

a. For Bulgarian side: An applicant in Bulgaria may not submit more than one proposal under this Call and may not be awarded with more than 1 [one] grant under this call for proposals.[i.e. an applicant may apply for only one component].

b. For Serbian side: An applicant in Serbia and Montenegro may submit more than one proposal and may be awarded with more than 1 [one] grant under this call for proposals. However, the Joint evaluation committee may decide to limit the number of grants per applicant.

2.1.4 Eligibility of costs: costs, which may be taken into consideration for the grant

Only “eligible costs” can be taken into account for a grant. These are detailed below. The budget is therefore both a cost estimate and a ceiling for “eligible costs”. Note that eligible costs must be based on real costs, not lump sums [except for travel and subsistence costs and indirect costs].

Recommendations to award a grant are always subject to the condition that the checking process, which precedes the signing of the contract, does not reveal problems requiring changes to the budget. The checks may give rise to requests for clarification and may lead the Contracting Authorities to impose reductions6.

It is therefore in the applicant’s interest to provide a realistic and cost-effective budget.

Eligible direct costs

To be eligible under the call for proposals, costs must: be necessary for carrying out the action, be provided for in the contract annexed to these Guidelines

and comply with the principles of sound financial management, in particular value for money and cost-effectiveness;

have actually been incurred by the beneficiaries or their Bulgarian/Serbian partners during the implementing period for the action as defined in Article 2 of the Specific Conditions, whatever the time of actual disbursement by the beneficiary or a partner; this does not affect the eligibility of costs for preparing the final report and as the case may be, of the final expenditure verification and final evaluation. The costs incurred by the beneficiaries ‘associates are not eligible (with the exception of subsistence and/or travel costs).

6 Please note that possible modifications of the budget may not lead to an increase of the amount of the grant requested from the European Commission nor of the percentage of the co-financing.

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Costs are considered to have been incurred during the implementation period of the Action if the costs of goods/services/works are used/provided/delivered during the implementation period of the Action. The relevant contracts may have been awarded by the Beneficiary or his partners before the implementation period of the Action started, provided the provisions of Annex IV to the contract were respected. Such costs must be paid for before the final report is finalized.

be recorded in the Beneficiary’s or Beneficiary’s Bulgarian/Serbian partners' accounts or tax documents, be identifiable and verifiable, and be backed by originals of supporting documents.

Subject to those conditions and where relevant to the contract-award procedures being respected, eligible direct costs borne by the Beneficiary and his partners include:

the cost of staff assigned to the action, corresponding to actual salaries plus social security charges and other remuneration-related costs; salaries and costs must not exceed those normally borne by the Beneficiary or his partners, as the case may be, unless it is justified by showing that it is essential to carry out the action;

travel and subsistence costs for staff and other persons taking part in the action, provided they do not exceed those normally borne by the Beneficiary or his partners, as the case may be; any flat-rate reimbursement of the subsistence costs must not exceed the rates published by the European Commission at the time of signing the contract (available at following Internet address: http://europa.eu.int/comm/europeaid/perdiem/index_en.htm);

purchase or rental costs for equipment and supplies (new or used) specifically for the purposes of the Action, and costs of services, provided they correspond to market rates; Eligible expenses cover only purchase of small equipment items and small supplies, if these form an integral part of the action. In addition, either PCs or laptops can be procured under supplies, while the procurement of laptops should be properly justified for the purpose of the specific action and will be eligible only if such have not already been supplied under other PHARE/CARDS funded projects. However these costs must not exceed 20% for supplies of the total PHARE/CARDS grant.

the cost of consumables;

subcontracting expenditure;

IMPORTANT

If the implementation of grants involves procurement of services or supplies by the grant beneficiary, contract award procedures, set out in Annex IV must be applied.

costs arising directly from the requirements of the contract (dissemination of information, evaluation specific to the action, audit, translation, printing, insurance, etc.) including financial service costs (in particular the cost of transfers and financial guarantees);

local office expenses - only in case of justified need that an office is to be established especially for the purposes of the project. Expenses for handling existing office of the beneficiary and/or its partners may be eligible only as indirect costs.

Contingency reserve

A contingency reserve not exceeding 5% of the direct eligible costs may be included in the Budget of the Action. It can only be used with the prior written authorisation of the respective Contracting Authority.

Eligible indirect costs (overheads)A lump sum not exceeding 7% of the total amount of eligible costs of the Action may be claimed as indirect cots to cover the administrative overheads incurred by the beneficiary for the Action.

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http://europa.eu.int/comm/europeaid/perdiem/index_en.htm

Indirect costs are ineligible if the Beneficiary receives in other respects an operating grant from the European Commission.

IMPORTANT

Indirect costs are eligible if they do not include costs already assigned to another heading of the contract budget.

Contributions in kind

Any contributions in kind made by the Beneficiary or the Beneficiary’s partners or any other source, which must be listed in Section I.4 of the application form, do not represent actual expenditure and are not eligible costs. They may not be treated as co financing by the Beneficiary. The cost of staff assigned to the Action is not a contribution in kind and may be considered as co-financing in the Budget for the Action when paid by the Beneficiary or his partners.However, the Beneficiary must undertake to make such contributions as stated on the application form if the grant is awarded.

Ineligible costs

The following costs are not eligible:

debts and provisions for losses or debts;

interest owed;

items already financed in another framework;

purchase of land and buildings except where necessary for the direct implementation of the action, in which case ownership must be transferred to the final beneficiaries and/or local partners, at the latest by the end of the action;

currency exchange losses;

taxes, including VAT, unless the Beneficiary (or the Beneficiary’s partners) cannot reclaim them and the applicable regulations authorize coverage of taxes;

costs for project application;

credits to third parties

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2.2 HOW TO APPLY, AND THE PROCEDURES TO FOLLOW

2.2.1 Application form

Applications must be submitted using the application form (Annex A), Budget (Annex B), Logical Framework (Annex C), CVs (Annex E) and Works (Annex F) (where applicable only), annexed to these Guidelines. The application form (Annex A) includes a concept note which must also be completed.Applicants should keep strictly to the format of the application and fill in the paragraphs and the pages in order. Applicants must apply in English language. Guidelines for applicants will be translated into Bulgarian and Serbian languages only for informative reasons. In case of difference between the English and Bulgarian/Serbian version, the one in English will prevail.

Please complete the application form carefully and as clearly as possible so that it can be assessed properly.

The applicant should be precise and provide enough detail to ensure the application is clear, particularly as to how the aims of the action will be achieved, the benefits that will flow from it and the way in which it is relevant to the programmes objectives.

The application package is available on the web site of the Ministry of Regional Development and Public Works, Republic of Bulgaria: www.mrrb.government.bg / (Latest Tenders); and on the web site of the Joint Technical Secretariat: http://npgrants.info/

The link to the Neighbourhood programme Bulgaria – Serbia and Montenegro – Local Capacity Building Grant Scheme Call for proposals is also available on the web site of the Ministry of International Economic Relations in Serbia and Montenegro www.mier.sr.gov.yu

The following internet sites provide a link to the above mentioned site: www.mier.sr.gov.yu and www.ear.eu.int

Any error related to the points listed in the Checklist [section V of the grant application] or any major inconsistency in the application form (e.g. the amounts mentioned in the budget are inconsistent with those mentioned in the application form) may lead to the immediate rejection of the proposal.Clarifications will only be requested when information provided is unclear, thus preventing the Contracting Authorities from conducting an objective assessment.

Hand-written applications will not be accepted.Please note that only the application form [Annex A] and the published annexes which have to be filled in (Annex B - budget, Annex C - logical framework, CVs (Annex E) and Works (Annex F) (where applicable only)) will be transmitted to the evaluators and assessors.It is therefore of utmost importance that these documents contain ALL relevant information concerning the action. No supplementary annexes should be sent.

2.2.2 Where and how to send the applications

Applications must be received in a sealed envelope by registered mail, private courier service or by hand-delivery [a signed and dated certificate of receipt will be given to the deliverer] at the address below:

Postal address and address for hand delivery or by private courier service

Republic of Bulgaria, PernikDimova mahala Neighbourhood3, Kozludui Str. Joint Technical Secretariat

Applications sent by any other means [e.g. by fax or by e-mail] or delivered to other addresses will be rejected.

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http://www.ear.eu.int/




Applications [Application Form including Concept Note, Budget, and Logical Framework] must be submitted in one original and 2 printed copies. The complete application form, budget and logical framework must also be supplied in electronic format (floppy disc or CD-Rom). The electronic format must contain exactly the same proposal as the paper version enclosed. Each component of the application (application form including concept note, budget and logical framework) must be submitted in a separate and unique electronic file [for ex. the application form must not be split into several different files].

IMPORTANT

The Checklist [Section V of the grant application form] and the Declaration by the applicant [Section VI of the grant application form] must be stapled separately and enclosed in the envelope.

So as to facilitate the processing of application, please present the original dossier and 2 copies in A4 size, each bound.

IMPORTANTThe outer envelope must bear the:

- reference number and

- the title of the call for proposals and

- the title and number of component and

- the type of project ( integrated, complementary or simple project)

- the full name and address of the applicant and

- the words "Not to be opened before the opening session", in Bulgarian: “Да не се отваря преди откриването на търга” and in Serbian “Ne otvarati pre uvodne sednice”

Applicants must verify that their application is complete using the checklist [section V of the grant application form]. Incomplete applications will be rejected.

2.2.3 Deadline for receipt of applications

The deadline for the receipt of applications is 17 July 2006 at 16:00 local time. Any application received after the deadline will automatically be rejected even if the postmark indicates a date preceding the deadline or if the delay is due to the private courier service.

2.2.4 Further information

Implementing Agency in MRDPW, in co-operation with the Ministry for International Economic Relations of the Republic of Serbia (MIER), assisted by the Joint Technical Secretariat (JTS) in Pernik will be together responsible for:

Dissemination of information

Public awareness campaign

Instructions to applicants

Provision of “questions and answers”

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Organization and conduction of info days in the eligible Bulgarian / Serbian districts.

Serbian applicants may also contact MIER for any further information, (contact person Ms. Kristina Askovic, tel./fax 011.3346.591, 011.3346.874; e-mail: [email protected], address : Ministry for International Economic Relations, Vlajkovićeva 10, 1000 Belgrade)

Questions may be sent by e-mail or by fax no later than 21 days before the deadline for the receipt of the proposals to the address listed below, indicating clearly the reference of the Call for Proposals:

e-mail: [email protected]: 00359 (76) 60 12 53fax: 00359 (76) 60 05 46Replies will be given no later than 11 days before the deadline for the submission of proposals.

Questions that may be relevant to other applicants, together with their answers, will be published on the internet site: www.mrrb.government.bg (Latest Tenders), and on the web site of the Joint Technical Secretariat: http://npgrants.info/ The following internet sites provide a link to the above mentioned site www.mier.sr.gov.yu and www.ear.eu.int.The information sessions will be held in the eligible regions. Dates and venues will be published later in the daily newspapers in Bulgaria and Serbia and Montenegro and on the following Internet addresses:

www.mrrb.government.bg (Latest tenders); http://npgrants.info/ ; and www.mier.sr.gov.yu.

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http://npgrants.info/


http://www.ear.eu.int/


http://npgrants.info/


mailto:[email protected]

mailto:[email protected]

2.3 EVALUATION AND SELECTION OF APPLICATIONS

Applications will be examined and evaluated by the Joint Evaluation Committee comprising members from both Bulgaria and Serbia and Montenegro. Evaluation sessions will be held at the offices of the Joint Technical Secretariat with the possible assistance of external assessors. All actions submitted by applicants will be assessed according to the following steps and criteria:

(1) STEP 1: OPENING SESSION AND ADMINISTRATIVE CHECK

The following will be assessed:

The deadline has been respected. If the deadline has not been respected the proposal will automatically be rejected [please, refer to section 2.2.3];

The application form satisfies all the criteria mentioned in the Checklist [Section V. of the grant application form].

If any of the requested information is missing or is incorrect, the proposal may be rejected on that sole basis and the proposal will not be evaluated further;

Following the opening session and the administrative check, the Joint Technical Secretariat will send a letter to all applicants, indicating whether their application was received prior to the deadline, informing them of the reference number they have been allocated , whether their application has satisfied all the criteria mentioned in the checklist and whether their concept note has been recommended for evaluation. 7

(2) STEP 2: EVALUATION OF THE CONCEPT NOTE

The concept notes having respected the deadline and satisfied the criteria mentioned in the checklist will undergo an evaluation of the relevance of the action, its methodology and sustainability, as well as of the operational capacity and expertise of the applicant.

The concept note will be given an overall score out of 50 as shown in the Evaluation grid below. This first evaluation will lead to a provisional selection. Only those which will have passed this first selection will see their full application assessed.

Please, note that the scores awarded to this concept note are completely separate from those given in the second phase.

Concept Note evaluation Grid1. Summary of the action NO SCORE2. Relevance 252.1 How relevant to the needs and constraints of the target country(ies) or region is the

proposal and how does it show CBC impact?.............................................................................................................................(5)

2.2 How appropriately are the problems and the needs identified? ………………………….. (5)2.3 How clearly defined and strategically chosen are those involved (final beneficiaries,

target groups) ?................................................................................................................(5)2.4 How relevant is the proposal to the objectives and guiding principles of the call for

proposals? ………………………………………………………………………………………(5)2.5 Does the proposed action have an added value by reference to other interventions? …(5)3. Methodology and Sustainability 153.1 Are the activities proposed appropriate, practical, and consistent with the objectives and expected results... (5)3.2 Is the partners' level of involvement and participation in the action satisfactory? ……………(5)3.3 Are the expected results of the action likely to have a sustainable impact on the target groups? Will it have multiplier effects? ………………………………………………………………..(5)4. Operational capacity and expertise. 104.1 Does the applicant have sufficient experience in project management? ………………... (5)

7 Please note that the length of period between the opening session and the sending of this letter will depend on the number of proposals received

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4.2 Do the applicant and partners have sufficient technical expertise (notably knowledge of the questions to be addressed)? …………………………………………………………..………(5)

TOTAL SCORE 50Please note:Scoring:

The evaluation criteria are divided into sections and subsections. Each subsection will be given a score between 1 and 5 in accordance with the following guidelines: 1 = very poor; 2 = poor; 3 = adequate; 4 = good; 5 = very good.Only the applicants who have been given a total average score of minimum 30 points will have their full application forms evaluated.

Following the evaluation of the concept note, the Joint Technical Secretariat will send a letter to the applicants, whose concept note has been evaluated, indicating the scores obtained for this first part of the evaluation whether their full application form will be evaluated. 8

(3) STEP 3: EVALUATION OF THE APPLICATION FORM

An evaluation of the quality of the proposals, including the proposed budget, and of the capacity of the applicant and his partners, will be carried out in accordance with the evaluation criteria set out in the Evaluation Grid included below. There are two types of evaluation criteria: selection and award criteria.

The selection criteria are intended to help evaluate the applicants' financial and operational capacity to ensure that they:

have stable and sufficient sources of finance to maintain their activity throughout the period during which the action is being carried out and, where appropriate, to participate in its funding;

have the management capacity, professional competencies and qualifications required to successfully complete the proposed action. This also applies to any partners of the applicant;

The award criteria allow the quality of the proposals submitted to be evaluated in relation to the objectives and priorities set, and grant to be awarded to actions which maximize the overall effectiveness of the call for proposals. They enable the selection of proposals which the Contracting Authorities can be confident will comply with its objectives and priorities and guarantee the visibility of the Community financing. They cover such aspects as the relevance of the action, its consistency with the objectives of the call for proposals, quality, expected impact, sustainability and cost-effectiveness.

Please note:Scoring:The evaluation criteria are divided into sections and subsections. Each subsection will be given a score between 1 and 5 in accordance with the following guidelines: 1 = very poor; 2 = poor; 3 = adequate; 4 = good; 5 = very good.

Note on Section 1. Financial and operational capacity

If the total average score is less than 12 points for section 1, the Joint Evaluation Committee will reject the proposal.

Note on Section 2. Relevance

If the total average score is less than 16 points for section 2, the Joint Evaluation Committee will reject the proposal.

Provisional selectionFollowing the evaluation, a table listing the proposals ranked according to their score and within the available financial envelope will be established as well as a reserve list following the same criteria.

8 Please note that the length of period between the opening session and the sending of this letter will depend on the number of proposals received

25

Note: The scores awarded in this phase are completely separate from those given to the concept note of the same application.

Application Form Evaluation GridSection Max Score AF1. Financial and operational capacity 201.1 Do the applicant/cross-border applicant and partners have sufficient

experience of project management? 5 II.4.1 and III.1

1.2 Do the applicant/cross-border applicant and partners have sufficient technical expertise? (Notably knowledge of the issues to be addressed.) 5 II.4.1, III.1

and CV’s1.3 Do the applicant/cross-border applicant and partners have sufficient

management capacity?(Including staff, equipment and ability to handle the budget for the action)?

5 II.4.2, III.1 and CV’s

1.4 Does the applicant/cross-border applicant have stable and sufficient sources of finance? 5 II.4.2

2. Relevance 252.1 How relevant is the proposal to the objectives and one or more of the priorities of the call for proposals? (Including avoiding duplication and creating synergies with other EC initiatives.)Note: A score 5 (very good) will only be allocated if the proposal is Integrated or Complementary Project and specifically addresses at least one priority.

5 I.1.6.1

2.2 How relevant is the proposal to the needs and constraints of the target region and how does it show CBC impact? Note: Only Integrated and Complementary Project could obtain a 5 (very good)

point

5 I.1.6.2

2.3 How relevant and strategic are the selected partners? 5 I.1.8.52.4 How clearly defined and strategically chosen are the target groups

(intermediaries, final beneficiaries)?5 I.1.6.3

2.5 Have the needs of the target groups proposed and the final beneficiaries been clearly defined and does the proposal address these appropriately?

5 I.1.6.4

3. Methodology 253.1 Are the activities proposed appropriate, practical, and consistent with the

objectives and expected results5 I.1.7& I.1.8.5.

3.2 How coherent is the overall action design? (in particular, does it reflect an analysis of the problems involved, take into account

external factors and anticipate an evaluation?)

5I.1.8

3.3 Is the partners’ level of involvement and participation of in the action satisfactory?

Note: Only Integrated and Complementary Project could obtain a 5 point

5 I.1.7 & I.1.8.5

3.4 Is the action plan clear and feasible? 5 I.1.93.5 Does the proposal contain objectively verifiable indicators for the outcome of the action?

5 Logframe

4. Sustainability 154.1 Is the action likely to have a tangible impact on its target groups? 5 I.2.14.2 Is the proposal likely to have multiplier effects? (Including scope for

replication and extension of the outcome of the action and dissemination of information.)

5 I.2.2 and I.2.3

4.3 Are the expected results of the proposed action sustainable:- financially (how will the activities be financed after the funding ends?)- institutionally (will structures allowing the activities to continue be in place at

the end of the action? Will there be local “ownership” of the results of the action?)

-at policy level (where applicable) (what will be the structural impact of the action — e.g. will it lead to improved legislation, codes of conduct, methods, etc?)?

5 I.2.4

5. Budget and cost-effectiveness 155.1 is the ratio between the estimated costs and the expected results satisfactory? 5 I.35.2 Is the proposed expenditure necessary for the implementation of the action? 5 x 2 I.3

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Maximum total score 100

(4) STEP 4: Eligibility of the applicant and partners.

The eligibility verification, based on the supporting documents requested by the Joint Evaluation Committee (see 2.4) will only be performed for the proposals that have been provisionally selected according to their score and within the available financial envelope.

The Declaration by the applicant [Section VI of the grant application form] will be cross-checked with the supporting documents provided by the applicant. Any missing supporting document or any incoherence between the Declaration by the applicant and the supporting documents may lead to the automatic rejection of the proposal on that sole basis;

The eligibility of the applicant, the partners, and the action will be verified according to the criteria set out in sections 2.1.1, 2.1.2, 2.1.3, and 2.1.4.

Following the above analysis and if necessary, any rejected proposal will be replaced by the next best placed proposal in the reserve list that falls within the available financial envelope, which will then be examined for the eligibility of its applicant and the partners.

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2.4 SUBMISSION OF SUPPORTING DOCUMENTS FOR PROVISIONALLY SELECTED PROPOSALS

Applicants who have been provisionally selected or listed under the reserve list will be informed in writing by the Joint Evaluation Committee. They will be requested to supply the following documents in order to allow the respective Contracting Authority to verify the eligibility of the applicants and their partners:

1. The statutes or articles of association of the Applicant organisation9 and of each partner organisation. Where the Contracting Authorities have recognised the applicant’s eligibility for another call for proposals under the same budget line (PHARE or CARDS respectively) within 2 years before the deadline for receipt of applications, the applicant may submit, instead of its statutes, copy of the document providing the eligibility of the applicant in a former Call (e.g.: copy of the special conditions of a grant contract received during the reference period), unless a change in its legal status has occurred in the meantime.

2. Copy of the Applicant’s accounts for the year 2005 (the profit and loss account and the balance sheet for the previous financial year for which the accounts have been closed).

3. A financial identification form conforming to the model attached at Annex D, certified by the bank to which the payments will be made. This bank must be located in the country where the applicant is registered. If the applicant has already signed a contract with the European Commission, a copy of the previous financial identification form may be provided instead, unless a change in its bank account occurred in the meantime.

In addition, the following supporting documents are also required:2.4.1. for all Bulgarian NGOs, SMEs, acting as Applicants/Cross-border Applicants or Partners:

Copy of the certificate for current Legal Status (issued not later than 12 months prior to the date of application) Copy of Tax and VAT registration;Copy of BULSTAT registration;Copies of certificates issued by National Social Security Institute and Regional Tax Administration Office for lack of obligations (issued not later than 12 months prior to the date of application) or plan for rescheduling of the debts in case of existing such; Information for the certified auditor - copy of the diploma and the registration number of the auditor with the Institute of the Certified Public Accountants in Bulgaria and copy of the court registration in case of auditing companies;

Sworn statement that the Applicant is not applying or receiving other funds in the form of grant for the same project activities;Copy of Special Conditions or Description of Action or latest report if applicable (only in case of already existing complementary/mirror projects).

Only in case the applicant is a Bulgarian SME should submit the following Declaration certifying that the applicant is in conformity with all state aid regulations and in particular

with the de minimis rule, i.e. has not received funding (state aid or grant, including the present one he is applying for) exceeding 100 000 Euro over the last 3-year period (as per Annex J-notary certified)

Duly signed and sealed, notary certified declaration, in accordance with article 3, paragraph 5 of the Bulgarian SMEs Act, supported with documentary evidence; (as per Annex K)

2.4.2. For all Bulgarian Public Bodies (municipalities, universities, schools, etc.) acting as Applicants/Cross-border Applicants or Partners:

Copy of Tax registration;Copy of BULSTAT registration;

9 Where the applicant and/or (a) partner(s) is a public body created by a law, a copy of the said law must be provided.28

Information for the certified auditor - copy of the diploma and the registration number of the auditor with the Institute of the Certified Public Accountants in Bulgaria and copy of the court registration in case of auditing companies

Sworn statement that the Applicant is not applying or receiving other funds in the form of grant for the same project activities;Copy of the Special Conditions or Description of the Action or latest report, if applicable (only in case of already existing complementary/mirror projects).

2.4.3. For all Serbian NGOs, acting Applicants/Cross-border applicants or Partners:

Certified copy of the court (or applicable) registration, not older than 30 days is enclosed (original or notary certificated copy; legalized translation in English);Statutes or Articles of association (faithful translation in English);Copy of the most recent balance sheet and income statement are enclosed;

Sworn statement that the Applicant is not applying or receiving other funds in the form of grant for the same project activities;

2.4.4. For all Serbian Public Bodies (municipalities, universities, schools, etc.) acting as Applicants/Cross-border applicants or Partners:

Certified copy of Serbian court (or applicable) registrations are enclosed (legalized translation in English);Statutes or Articles of association (or applicable) - (faithful translation in English);Copy of the most recent annual financial report

Sworn statement that the Applicant is not applying or receiving other funds in the form of grant for the same project activities;

The supporting documents requested must be supplied in the form of originals or if photocopies of the said originals – should bear “true copy” and signature.

Where such documents are not in English, it is strongly recommended, in order to facilitate the evaluation a faithful translation into the language of the call for proposals of the relevant parts of these documents, proving the applicant’s eligibility, must be attached and will prevail for the purpose of analyzing the proposal.

IMPORTANTIf these documents are not provided before the set deadline [5 working days from the receipt of the letter sent by the Contracting Authority], the application will be rejected.

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2.5 NOTIFICATION OF THE CONTRACTING AUTHORITY’S DECISION

2.5.1 Content of the decision

In case of Bulgarian Applicants the Contracting Authority will be the Ministry of Regional Development and Public Works. In case of Serbian Applicants the Contracting Authority will be the European Agency for Reconstruction.

Applicants will be informed in writing of the Contracting Authority’s decision concerning their application.

A decision to reject an application or not to award a grant will be based on the following grounds:

the application was received after the closing date;

the application was incomplete or otherwise non-compliant with the stated administrative conditions;

the applicant or one or more of its partners was not eligible;

the action was ineligible [e.g. the action proposed is not covered by the programme, the proposal exceeds the maximum duration allowed, the requested contribution is higher than the maximum allowed, etc];

the proposal was not relevant enough and/or the applicant's financial and operational capacity was not sufficient;

the proposal was considered technically and financially inferior to the proposals selected;

although the proposal fulfils the quality criteria required for a favourable opinion, another proposal of a similar nature was awarded a higher score;

several proposals were submitted by the same applicant and selected for financing, but the applicant does not have the financial and operational capacity required to implement the actions all together – for the Serbian applicants only

one or more of the requested supporting documents were not provided before the set deadline;

The respective Contracting Authority's decision to reject an application or not to award a grant is final.

2.5.2 Indicative time table10

The date on which the contracting authority plans to inform the applicants about the outcome of the opening session and the administrative check is 27 July 2006 /this date is indicative only/.

The date on which the contracting authority plans to inform the applicants about the outcome of the evaluation of the concept note is 27 August 2006 /this date is indicative only/.

The date on which the contracting authority plans to inform the applicants about the outcome of the evaluation of the full application form is 17 October 2006 /this date is indicative only/.

The date on which the contracting authority plans to announce the award decision after having verified the eligibility of applicant and partners is 20 November 2006 /this date is indicative only/.

10 Deadlines should be provided, explaining the length according to the numbers of proposals received. 30

2.6 CONDITIONS APPLICABLE TO IMPLEMENTATION OF THE ACTION FOLLOWING THE CONTRACTING AUTHORITY'S DECISION TO AWARD A GRANT

Following the decision to award a grant, the Beneficiary will be offered a contract based on the Contracting Authority's standard contract [please, refer to Annex G: Standard Grant Contract – please note that different templates are provided for Bulgarian/Serbian applicants]. The date planned for the start of actions, following the signing of the contract by the parties, is 1 December 2006 /this date is indicative only/. The action should be finalized before 30 November 2007.

The contract will, in particular, establish the following rights and obligations:

Auditor/Audit firm

Audit costs should be included in the project budget.

For Bulgarian applicants: An external audit of the accounts of the Action will be carried out by a Certified Auditor. Audit costs are set to the maximum of 1000 Euro. Information on the Audit firm which will carry out the expenditure verification(s) referred to in Article 15.6 of Annex II to the standard grant contract, if such verifications are required, will have to be included in Article 5.2 of the Contract

For Serbian applicants: An external audit of the accounts of the Action will be carried out by a Certified Auditor. Audit costs are normally between 2-3% of the total amount of the project. The Serbian applicant should propose a certified auditor to the Contracting Authority for approval after being awarded a contract. The auditor will be selected from the list of the certified auditors in accordance with the PRAG rules for sub-contracting.

Final amount of the grantThe maximum amount of the grant will be stipulated in the contract. As explained in point 2.1.4, this amount is based on the budget, which is itself only an estimate. As a result, it will be final only once the action has ended and the final accounts have been presented [please, refer to Articles 17.1 and 17.2 of the General Conditions].

Failure to meet the objectivesIf the Beneficiary fails to implement the action as undertaken and agreed in the contract, the contracting authorities reserve the right to suspend payments, and/or to terminate the contract please, refer to Article 11 of the General Conditions]. The respective Contracting Authority's contribution may be reduced, and/or the respective contracting authority may demand full or partial repayment of the sums already paid, if the Beneficiary does not fulfil the terms of the contract [please refer to Articles 12.2 and 17.4 of the General Conditions].

Amendments to the contract and variations within the budgetAny amendment to the contract must be set out in a written addendum to the original contract [Please refer to Article 9.1 of the General Conditions]. However, some amendments (addresses, bank account, etc.) may simply be notified to the Contracting Authority [please refer to Article 9.2 of the General Conditions].

The description of the Action (Annex 1 to the contract) and budget items may vary from the original figures provided that the following conditions are met:

(1) they do not affect the basic purpose of the action; and

(2) the financial impact is limited to a transfer between items within a single main budget heading or to a transfer between the main budget headings involving a variation of less than 15% of the original amount (as the case may be modified by addendum) of each relevant main budget heading.

In such instances, the Beneficiary may make alterations to the budget, and inform the respective Contracting Authority.

This method may not be used to amend the heading for overhead costs and contingency reserve [please refer to Article 9.2 of the General Conditions].

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In all other cases, a written request must be made in advance to the respective Contracting Authority and an addendum is required.

ReportsReports must be drafted in English. Narrative and financial reports conforming to the models attached to the contract are to be supplied together with payment requests [other than the first instalment of pre-financing].

Additional informationIn accordance with Article 2.2 of the General Conditions, the respective Contracting Authority may request additional information.

Payments

The Beneficiary will receive pre-financing which will be 80% of the grant amount (see Article 15.1 option 1 of the General Conditions).

The final balance will be paid upon submission by the Beneficiary and approval by the respective Contracting Authority of the final report (see article 15.1 of the General Conditions).

Payments will be made to an Action-specific bank account or sub-account which identifies the funds paid by the respective Contracting Authority and allows calculating the interests produced by these funds.

Accounts of the actionThe Beneficiary must keep accurate and regular records and dedicated, transparent accounts of the implementation of the action [Please, refer to Article 16.1 of the General Conditions]. It must keep these records for seven years after payment of the balance.

Expenditure verificationA report on the verification of the Action’s expenditures, produced by an approved auditor must be attached to the request for final payment.In an expenditure verification report conforming to the model attached at Annex VII to the contract, the auditor will certify that the costs declared by the Beneficiary are real, exact and eligible in accordance with the Contract (see Article 15.6 of the General Conditions).The contract will permit the Commission, the European Anti-fraud Office and the European Court of Auditors to carry out both record-based and on-the-spot inspections of the action (See Article 16.2 of the General Conditions).

PublicityAppropriate visibility and credit must be given to the grant made by the European Union, for example, in reports and publications stemming from the action or during public events associated with the action, etc. [Please refer to Article 6 of the General Conditions].

Implementation contractsWhere implementation of the action requires the Beneficiary to award procurement contracts, it must award the contract to the tenderer offering the best value for money, that is to say, the best price-quality ratio, in compliance with the principles of transparency and equal treatment for potential contractors, care being taken to avoid any conflict of interests. To this end, the Beneficiary must follow the procedures set out in Annex IV to the contract.

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3. LIST OF ANNEXES

Documents to be fulfilled by the Applicant: Annex A: Grant Application Form [Word Format]Annex B: Budget [Excel format]Annex C: Logical Framework [Excel format]Annex D: Financial identification formAnnex E: CVs of the project team [Word Format]Annex F: Works (for Component 3 and where applicable only) [Explanatory Note; Preliminary Works Design or Detailed Works Design; Indicative Priced Bill of Quantities –calculated in Euro]

Documents for Information:

Annex G: Standard Contract [Word format], available at the following address: http://europa.eu.int/comm/europeaid/tender/gestion/cont_typ/st/index_en.htm

Annex H: Daily allowance rates [Per diem], available at the following address: http://europa.eu.int/comm/europeaid/perdiem/index_en.htm

ANNEX I: MODEL PROMISSORY NOTE (FOR BULGARIAN APPLICANTS ONLY)

ANNEX J: DECLARATION CERTIFYING THAT THE APPLICANT IS IN CONFORMITY WITH ALL STATE AID REGULATIONS AND IN PARTICULAR WITH THE DE MINIMIS RULE

ANNEX K: DECLARATION, IN ACCORDANCE WITH ARTICLE 3, PARAGRAPH 5 OF THE BULGARIAN SMES ACT

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http://europa.eu.int/comm/europeaid/perdiem/index_en.htm

http://europa.eu.int/comm/europeaid/tender/gestion/cont_typ/st/index_en.htm