Successful application writing: calls and cases

Tata, 20 October 2009

Csaba Káncz, Director of Government Relations, MAPI

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Overview

New Hungary Development Plan What has changed in 2009? Grant areas and some cases Open calls Alerts for Applicants! MAPI track record Services Grant project management Some corporate clients Testimonials

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New Hungary Development Plan 2007-2013

Within the framework of EU cohesion policy Hungary will receive EUR 22.6 billion (HUF 6,150 billion) funding between 2007- 2013 to close the development gap between Hungary and the Western EU countries. The state gives 15% to this so total available funding is ca. HUF 8,000 billion.

6 priority areas: economy development, transport, social renewal, environmental protection and energy, regional development and state reform

15 Operational Programmes within NHDP: economic development, transport, energy and environment, social renewal, social infrastructure, state reform, electronic administration, 7 regional development, implementation

National Development Agency (www.nfu.hu) is in charge of development and planning related tasks

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Economic Development Programme (GOP/EDP)

Total allocation 2007-2013 (excl. TA): HUF 750 billion

Four priority axes:

R&D and innovation (263 BILL HUF) Complex development of entreprises (especially SMEs)

(241 BILL HUF) Creating Modern business environment (60 BILL HUF) JEREMIE type financial instruments (187 BILL HUF) forint)

Intermediary body: MAG Zrt. (www.magzrt.hu)

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Environment and Energy Programme (KEOP/EEOP)

EUR 4.9 billion is allocated for KEOP/EEOP including the 15% Hungarian state co-financing.

KEOP priority axes:

Healthy and clean settlements (wastewater, waste, drinking water)

Wise management of water (flood prevention, water management, remediation, recultivation)

Wise management of natural assets Increase of the usage of renewable energy sources Efficient energy usage Sustainable production and consumption patterns Project management Technical assistance

Intermediary body: Energy Centre Kht. www.fi.kvvm.hu

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NDP I. vs. NHDP

  NDP I. NHDP

Number of incoming grant applications (pc) 42 452 32 200

Granted applications (pc) 19 838 15 200

Grant amount requested (billion HUF) 1 604,6 3 430,5

Total grant available (billion HUF) 683,5 ~ 8 000

Total amount granted (billion HUF) 726 3 000

Total grant amount paid (billion HUF) 685 520

 

Grant amount requested GVOP / GOP (billion HUF) 350,5 600

Total amount granted GVOP / GOP (billion HUF) 160 450

Total grant amount paid GVOP / GOP (billion HUF) 152 ~ 20-30

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What has changed in 2009?

Boom in the field of grants: transfer of funds, more funds available for economic development to overcome economic crisis with a focus on safeguarding employment

Higher intensity rates (25-70%)

Large companies eligible for calls safeguarding workplaces, large projects and in the area of R&D

More favorable commitments: revenue stabilisation instead of revenue growth or employment retention

More rapid payment of grants (advance payment up to 40% of grant)

Changes will probably remain in 2010 due to economic crisis

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Machinery and technology development / investment Logistics centres and services Employment creation and retention IT and e-commerce Regional service centres R&D, innovation Tourism and accommodation development Training, education Industrial parks and zones Energy and environment Tax allowance and direct subsidy assessed by individual

Government decision (EKD)

Grant areas for corporations

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Client: Transdanubia Logisztikai Kft.Project: establishment of new logistics centerProject volume: around 1 billion HUF (33,3M EUR)Amount granted: 120M HUF (400 000 EUR)

Client: Horváth Rudolf Intertransport Kft. Project: enlargement of existing logistics centerProject volume: around 777M HUF (2,59M EUR)Amount granted: 250M HUF (833 000EUR)

Some cases: Logistics

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Client: Szilánk Zrt. Sector: glas manufacturerProject: procurement of new machinery and technologyProject volume: 522M HUF (1,74M EUR)Amount granted: 150M HUF (0,5M EUR)

Client: Kiener Hungária Kft. Sector: metal industryProject: technology developmentProject volume: 278M HUF (926M EUR)Amount granted: 52,7M HUF (175 600 EUR)

Some cases: Technology development

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Client: HENKELProject: training of employees Project volume: 81 million HUF (270 000EUR)Amount granted: 40 million HUF (133 300 EUR)

Client: Coca Cola Hungary Project: training of employees Project volume: 100M HUF (333 300EUR)Amount granted: 52,7M HUF (175 600 EUR)

Some cases: Training of employees

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Client: Medicontúr Orvostechnikai Kft.Sector: optical eye-lense production Project: procurement of new precision machinery and innovation development Project amount: 365M HUF (1,216M EUR)Amount granted: 182M HUF (0,6M EUR)

Client: Kienle + Spiess Hungary Kft. Sector: electrical enginesProject: research of energy efficient production of copper rotorsProject amount: 198M HUF (660 000 EUR)Amount granted: 86M HUF (286 600 EUR)

Some cases: Innovation, R&D

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Client: Shoe Box Kft.Sector: tradingProject: complex ERP systemProject amount: 40M HUF (133 300 EUR)Amount granted: 14M HUF (46 600 EUR)

Client: Rába-Lux Kft. Sector: lighting manufacturing and tradingProject: complex CRM systemProject amount: 20M HUF (66 600 EUR)Amount granted: 10M HUF (33 300 EUR)

Some cases: IT

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Client: Cover- Energia Szentes Kft.Sector: energyProject: construction of a biomass plant Project amount: 2,27 BILL HUFAmount requested: 800M HUF

Some cases: Environment

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Investment volume: at least 10 million EUR (ca. 2,7 billion HUF) Job creation potential: at least 10 employees Amount of subsidy: decided individually by GovernmentProvider: Ministry for National Development and Economy through mediation of ITD Hungary

Cases: Knorr-Bremse, Infineon, Sedesa

Some cases: Individual Government decision projects (EKD)

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Open calls I. – Technology development

Complex grant for projects with considerable effect on employment (GOP–2009–2.1.3) Pre-condition: development with a value of min. 1.500 M HUF and employment of min. 25 people Grant intensity: max. 5 - 35% (excluding the Central-Hungarian Region)Grant amount: 200 – 1.500 M HUFSubmission deadline: 9 March 2009– 31 December 2009 Eligible applicants: SMEs and large enterprises

Establishing new industrial sites (ROP)Precondition: creating 20 new workplacesGrant intensity: 25 – 50%Grant amount: 100 – 1.000 M HUFSubmission period: 30 June 2009 – 31 December 2009 Eligible applicants: SMEs and large enterprises

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Open calls II. – Logistics

Developing intermodal and regional logistics center (GOP–2009–3.2.1 and KMOP-2009-1.4.2) Grant intensity: • max. 40% in case of regional logistics centers (not applicable in the Central-

Hungarian region)• max 50% in case of intermodal logistics centers (25% in Budapest)

Grant amount: • 50 – 250 M HUF in case of regional logistics centers• 50 – 750 M HUF in case of intermodal logistic centres (max 600 M HUF in

Central Hungarian region)Submission deadline: 3 August 2009– 31 December 2010 Eligible applicants: SMEs and large enterprises

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Open calls III. – IT development

Development of flow management services and e-commerce (GOP–2009–2.2.3) Grant intensity: max. 50% (excluding the Central-Hungarian Region)Grant amount: 5 – 25 M HUFSubmission deadline: 31 August 2009– 31 December 2009 Eligible applicants: SMEs

Establishing and developing SaaS centres (GOP-2009-3.4.1)Grant intensity: max. 50% (excluding the Central-Hungarian Region)Grant amount: 50 – 300 M HUFSubmission period: 31 August 2009 – 31 October 2009 Eligible applicants: SMEs and large enterprises

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Local heat and cooling needs gained from renewable energy sources(KEOP–2009–4.2.0/B)Grant intensity: max. 30 – 60% (excluding the Central-Hungarian Region)Grant amount: 1 – 1.000 M HUFSubmission period: from 1 September 2009, continuously Eligible applicants: and large enterprises (large enterprises can apply only for geothermal development)

Electricity-, connected heat- and electricity-, and biomethan-production gained from renewable energy (KEOP–2009–4.4.0)Grant intensity: max. 30 – 60% (excluding the Central-Hungarian Region)Grant amount: 1 – 1.000 M HUFSubmission period: from 1 September 2009 continuouslyEligible applicants: SMEs and large enterprises

Open calls IV. – Environment protection

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Third-party finance with or without renewable energy recovery (KEOP–2009–5.2.0/A és KEOP–2009–5.2.0/B)Grant intensity: max. 20 – 25% (max. 35% in case of combined projects)Grant amount: 1 – 50 M HUF (3,5 – 200 M HUF in case of combined projects)Submission period: from 1 September 2009 continuously Eligible applicants: organisations dealing with third-party finance and ESCO organisations (only for maintenance organisations of public institutions, churches and foundations)

Energy development projects in buildings with or without renewable energy recovery (KEOP–2009–5.3.0/A és KEOP–2009–5.3.0./B)Grant intensity: max. 30 – 70% (besides the Central-Hungarian Region in case of combined projects)Grant amount: 1 – 500 M HUFSubmission period: from 1 September 2009 continuouslyEligible applicants: SMEs

Open calls V. – Environment protection

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Modernisation of district heat suppliers in the field of energy (KEOP–2009–5.4.0) Grant intensity: max. 10 – 50%Grant amount: 1 – 500 M HUFSubmission period: from 27 March 2009 continuouslyEligible applicants: district heat suppliers

Grant for employment retention combined with working hour reduction and training (TÁMOP–2.3.3.B/09/03 and TÁMOP–2.3.3.B/09/04 and TÁMOP–2.3.3.B/09/05Grant intensity: max. 25 – 100% Grant amount: 10 — 600 M HUF Submission period: 24 August 2009 – 31 October 2009Eligible applicants: large companies

Open calls VI. – Environment protection and retaining jobs

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Support for company innovation (GOP–2009–1.3.1/A and KMOP-2009-1.1.4) Grant intensity: max. 25 – 45%Grant amount: 15 – 350 M HUFSubmission period: 16 March 2009 – 15 February 2010Eligible applicants: SMEs and large enterprises

Encouragement of enterprise technology innovation with the aim to become a permanent supplier or to strengthen current status (GOP–2009–1.3.3)Grant intensity: max. 25 – 50% (excluding the Central-Hungarian Region)Grant amount: 15 – 400 M HUFSubmission period: 23 March 2009 – 5 February 2010 Eligible applicants: SMEs and large enterprises

Open calls VII. – R&D

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Support for accredited innovation clusters (GOP-2009-1.2.1 and KMOP-2009-1.1.3/A)Grant intensity: max. 25 – 50% Grant amount: 250 – 1 500 M HUFSubmission period: 31 August 2009 – 30 August 2010 Eligible applicants: SMEs and large enterprises

Support for enterprise innovation of accredited clusters (GOP-2009-1.3.1/B) Grant intensity: max. 25 – 60% (excluding the Central-Hungarian Region)Grant amount: 15 – 350 M HUFSubmission period: 31 August 2009 – 30 August 2010 Eligible applicants: SMEs and large enterprises

Enhancement of enterprise R&D capacity (GOP–2009–1.3.2 and KMOP-2009-1.1.5)Grant intensity: max. 50% (max. 25% in the Central-Hungarian Region) Grant amount: 200 – 1.500 M HUFSubmission period: 31 August 2009 – 5 July 2010Eligible applicants: SMEs and large enterprises

Open calls VIII. – R&D

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Annex list (agricultural products)

Applicants with labour fines might be excluded (check at www.ommf.gov.hu and www.egyenlobanasmod.hu)

Min. 1-2 closed financial years is required by some calls

Final permissions at the time of contract signing (construction permit, other permits)

Project completion period: max. 24 months (longer for R&D calls)

Maintenance commitments: - large companies: 5 years - SMEs: 3 years

Alerts for Applicants!

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MAPI track record

Above 95% success rateFull country coverage through regional networkAbove HUF 50 billion in grants secured during the first 5

years of operationOver 400 satisfied clients with a 98% return rateMore than 25 full-time dedicated employees with

extensive grant management skillsDedicated grant consultant of several banksOutstanding media relations and professional

competenceMembership in several Hungarian and international

organisationsCEO recipient of the „Young Manager of the Year 2006”

award

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Services

Grant consultancyDedicated grant alertsProject developmentGrant application preparationGrant monitoringGrant project managementAfter-care servicesDevelopment tax allowanceSpecial Governmental Decision projectsFeasibility studiesCost-benefit analyses (CBA)

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Grant project management

Preparation Operation After care

Identification of the most appropriate grant opportunities

Recommendations for an optimal financial-technicalstructure, grant scheme, risk-free undertakings

Grant scan

Success probability analysis

Establishment of goals and grant schemes

Preparation and submission of grant applications

Preparation of studies and analyses

Official project reviews, professional interest representation

Support to acquire missing documents throughout the submission process

Preparation of grant contracts

Compilation and submission of financial reports

Annual reportingafter project completion

Professional care for contractmodifications

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Some corporate clients

ALFÖLDI NYOMDA ALPHARMA ALPINE ARRK BILK KOMBITERMINÁL BÜCHL CITIBANK COATS COCA-COLA DANONE DECATHLON DEICHMANN DELOG DELPHI DHL ELMŰ ERICSSON EUROSPED FLEXTRONICS FRÜHWALD

GEDIAHEINEKENHENKELHÖDLMAYRINFINEONKIENLE & SPIESSKINGSPANKNORR-BREMSEMIZSEPACKPAKSI ATOMERŐMŰPANNUNIONPHILIP-MORRISROBUST ELECTRONICSSANOMASCA HYGIENESCHNEIDER ELECTRICSTI PETŐFI NYOMDASZILÁNKWEWALKAZALAKERÁMIA

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Testimonials„We are absolutely satisfied with the services of MAPI. Therefore, we have asked them to contribute to three grant application projects. All these three applications were successful, we received exactly what we asked for.”István Winkler CEO TRANSDANUBIA Logisztikai Kft.

„We like working with MAPI because of their flexible approach to problem solving. Their helpfulness and speed is exemplary, they always find a solution to our questions.” Csilla Gera HR Director Henkel Magyarország Kft.

„We can recommend MAPI to other companies planning to submit grant applications because of their helpfulness during grant preparation and follow up ... Compared with other grant writers they are much more flexible, faster and less bureaucratic.ˇˇGusztáv VargaDirector General Szilánk® Zrt.

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Thank you for your attention!

Csaba KánczDirector of Government Relations

Hungarian Grant Agency Zrt.

Tel.:+36-1-269-47-77 +36-1-270-70-60

www.mapi.hu

E-mail: csaba.kancz@mapi.hu