seminar craiova march last 276slides
TRANSCRIPT
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European Structural
Funds and Project Preparation &
Management
Romania
Business Development Support Services (BDSS)
Project
March, 2006
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SEMINAR AGENDADay 1
INTRODUCTION
STRUCTURAL FUNDS: BASICS AND PROCEDURES
STATE AID PRINCIPLES
EXAMPLES OF BUSINESS SUPPORT PROGRAMMES FROM SPAINAND PORTUGAL
Day 2
PROJECT CYCLE MANAGEMENT
ECONOMIC AND FINANCIAL ANALYSIS
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Seminar Objectives Learn SF as trainers and differences with Phare and other EU
programmes (leonardo, VIth Framework Pr)
Role of consultants in SF projects , what do you do?
And of consulting/engineering/law associations?
Networking ; how and when?
Public services and bodies , how do they propose and involvethemselves.
Role of associations in SF programming/
implementation of SME support.
RDAs, what is role ?????
Can you make money with SF projects?? In which areas? What arethe qualifications/skills which count?
Manuals, procedures, public procurement??
What do training centres do and how much is training in SFs?
Evaluation, quality control, PM ?
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What is the role of regional networks of institutions in the
programming and administrating of Structural Funds?
What does Regional Networking mean?
- Structural funds are a bottom-up process,
not top-down as pre-accession support
- Regional bodies (county councils, city halls,
consortia of public and private bodies,
chambers, etc.) have to network to propose,justify and CO-FINANCE potential
programmes, projects , etc.- and help monitor
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What is the your role in SFs ?Networks of institutions propose and administrate the programmes
National Policies
Regional Programming
and Monitoring
Programme Administration
(up to 7%)
Project Implementation
(management and delivery)
Tenders/grants
Ministries of European
Integration, Agriculture, Public
Works
ADRs (ERDF Infrast.), Sapard
(EAGF), Employment Agency
(ESF), ANIMMC (ERDF SMEs)?
Regional networks(have to co-
finance 25% in Objective 1 reg.)
- local authorities and private
bodies (CCIs, Associations, etc)
Business Service Providers
(ROCA associated and non-
ROCA), experts, private and
public Institutions
Programme approval
Regional Operating Pr.
+ Implementation Pr.
Project Reports
Programme status
Financial and
Operational Mon.
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What is the your role in SFs in Business support ?
National, Regional and Local Bodies
(MEI, ANIMMC, SAPARD, ADRs,County Councils, City Halls, etc.
Information /Counselling Networks
(EICs, IRCs, CDIMMs, Foundations,ANIMMC local, CCIs etc.)
Technical Services Networks
(ROCA, University networks, BICs, etc.)
Private Firms and Individual Experts
Professional associations
(AMCOR, Auditors,
Evaluators, Engineers)
Chambers and Business
Associations
Clients
Host
organisations
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DAY 1
STRUCTURAL FUNDS: BASICS
AND PROCEDURES
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The EU Budget 2000 - 06
Average annual budget 100.400 millionCommon Agricultural Policy
Internal Market Policies
External Actions/EUROPEAID
Administration
Reserves
Pre Accession/Phare, ISPA, Sapard
Enlargement/New Members
42.4%
30.3%
4.6%4.8%
0.6%
3.1%8.3%
STRUCTURAL AND COHESION FUNDS
6.0%
The EU Budget finances Internal Actions, Structural and Cohesion, the CAP,
External Actions, Enlargement Pre-Accession and Administration - this amounts
to around 100 billion EUR per year/ 200 billion for Structural and Cohesion funds
for the 7 years.
Definitions and Terminology of EU- Funded Projects
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E. Commission
Budget
TemporaryHuman
Resources
Loans andShareholdings
Studies andDirect Actions
Structuraland Financial
Support
Programmes
Paid d irect ly to
the beneficiary
by the
Commiss ion
Paid to the beneficiary/ ies indi rect ly,
eitherthro ugh a Member State (SF and
Init iat ives), a foreign go vernm ent or an
agency appointed by a State
(EuropeAi d)- in decentralized
programmes
Introduction: Review of European Structural Funds and other external Programmes
CommonAgricultural
Policy-
Guidance
section
Of the overall EC Budget, spent in grants, tenders and studies are most of
the structural funds and other financial support schemes, the CAP-
Guidance section, and Studies and direct actions
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European
Commission
National
decentralised
management
Direct Actions
(Pilot,
Innovative.)E. Comm issionmanagement
Mixed
management
Programmes,
act ions and other
support act iv i t ies
called and
negotiated directly
in Brussels
PUBLICATION:E.U. Official
Journal
Management and
Official
Announcement:
Commiss ion
Structural and
Cohesion Funds:
ERDF, ESF,
Fisheries and
EAGGF
PUBLICATION: in
national andregional Journals
Management and
Official
Announcement:
National
Government andRegions (RDAs)
E.U. Initiatives: 5%
of Structural funds
PUBLICATION: E.U.
Official Journal,
National Journals
Management and
Official
Announcement:
Commiss ion p lus
Regional and
nat ional uni ts of
coordinat ion
Budgetary l ines,
funds not
exhausted, pilotprojects
Publication in
EU website
Management and
PUBLICATION:
Commiss ion and
European
Parl iament
EU Grants and Programmes by Type of Management
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The EU Budget : Main support programmes and initiatives
Direct Support Programmes:
- Directly applied to EU Administration
- Proposals to Brussels / Luxemburg
- Support Funds and Programmes given to the best projects, Europewide
Indirect Support Programmes:
- Specific budget assigned to Member States: STRUCTURAL
FUNDS AND EC INITIATIVES (URBAN, INTERREG, LEADER,EQUAL)
- Member States must propose their budget support priorities
- EU Commission can accept ,reject or adapt MSs proposals)
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Main support programmes and initiatives
Direct Support Programmes
EC Initiatives (5% of Structural funds):
Direct Programmes
Framework programme R+D (now to the VIIth) TEN-TELECOM
LIFE
ALLURE
SAVE
LEONARDO
ALFA
JOPP
ECIP
CDI
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Main support programmes and initiatives
Direct Support Programmes (2)
ENTERPRISE INNOVATION
EUROPARTENARIAT
ETP - Japan
PHILOXENIA - Tourism
CULTURE 2000
EURATHLON
ENVIROMENTAL NGOs GRANTS MEDIA
etc...420 in total by the last count
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Structural & Cohesion Funds
Indirect Support Programmes :
- Specific budget assigned to Member States
- Member States must propose their budget support priorities
- EU Commission can accept ,reject or adapt Member Statesproposals
- Some budget funds applied directly to Commission-managed
projects (ex.European key road network, telecoms, etc.)
- The rest of fund programmes ,managed by National and /or
Regional Administrations
Purpose: reduce developmet and and life condititons disparities
among Member States convergence
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Structural & Cohesion Funds
ERDF ESF
EAGGF
FIFG
STRUCTURALFUNDS
(Obj.1, 2, 3)
COHESIONFUNDS < 75%
average GDP26,5 M EUR for 2000/6195 M EUR for 2000/6
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Structural Funds 2000- 06
Reserves for effective projects (4%)
General Programmes(90%), as presented in
General Community
Support (GCS) or the
Single Programming
Document (SPD) (for
small countries)
Community Initiatives
(5,35%): measures
proposed by the EC and
managed jointly: they
are four in 2000/06;
Interreg III, Urban II,
Equal , Leader+. They
are planned to
disappear in 2006?
Innovative actions (0,65%), Pilot Projects and studies
will increase in 2007-13
These funds are partially disbursed by national and regional governments
as tenders, grants, studies and other forms of financial support.
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Structural Funds
There are 4 Structural Funds namely:
- European Agricultural Guidance and Guarantee Fund(EAGGF);
- Financial Instruments for Fisheries Guidance (FIFG);
- European Regional Development Fund (ERDF);
- European Social Fund (ESF).
Adjoining the four Structural Funds, the Cohesion Fund providesstructural assistance to the four least developed Member States -Portugal, Spain, Greece and Ireland, financing projects concerning theenvironment or transport infrastructure. The Transition Facility Fundis targeted to enhance the capacity building of Accession States
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Structural Funds
European Regional Development Fund (ERDF):
Aims to reduce socio-economic imbalances between
regions of the Union: essentially it is aimed at businessgrowth and economic regeneration.
European Social Fund (ESF):Aims to put people into
employment by developing skills and training
opportunities by supporting: Active labour market
policies; Equal opportunities for all and promoting socialinclusion; Improving training and education and
promoting lifelong learning; Adaptability and
entrepreneurship; Improving the participation of women
in the labour market.
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Structural Funds
European Agricultural Guidance and Guarantee Fund(EAGGF) It is included within the CAP ,and Aims to
finance rural development projects ,such a s young
farmers,,investments and training, rural product
marketing,and rural areas development. (including the
LEADER+ ,EU Initiative).
Financial Instruments for Fisheries Guidance (FIFG)
Aims to finance fleet modernization,fishing quotas
programmes,protection specail marine cultivation ,area
protection.It is an instrument to complement the Overall
EU Fishing Policy.Marketing and Promotion of
products,Port infrastructure investment
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Structural Funds
Funding:Between 2000 and 2006, 95% of the Structural Fundsfinance, is distributed according to the EU's 3 'Objectives, of which,5% is allocated to the so-called Community Initiatives.
Objective 1 is funded by ERDF:Allocated to regions where
gross domestic product per head is less than 75% of the EU average.
Objective 2 is funded principally by ERDF but alsoby ESF:The Funds aim to help reduce the gaps in socio-economicdevelopment between the various regions and member states. Itcovers 18% of the European population.
Objective 3 is funded by ESF:The objective is aimed atfunding training and skills development.
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Structural Funds
(%)
69,7
11,5
12,3 0,5
Objective 1 Objective 2Objective 3 Fisheries
195.00O Million ,2000-06 period
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EC PROGRAMMES ARE SUPERSIVED BY THE DGs
EUROPEAN
COMISSION
EUROPEAID
Tacis
ALA
Meda
Cards/ EAR
FED
DG ENLARGEMENT
Phare (incl. Twinning)
ISPA
Sapard
Transition facility
DG REGIO
Structural funds
Interreg III
URBAN
DG RESEARCH DG ENTERPRISE DG EDUCATION
VIth Framework Pr. Competitiveness & Entrepreneurship Leonardo
Innovation, etc Tempus, etc.
DG EMPLOYMENT, etc.
Social Fund
Equal
DG AGRICULTURE
Leader +
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Proposed SF Budget for 2007 2013 Period (under discussion)
Last proposals by the Commission
(Billion EUR)
Regions subject to statistical effect: 22.14
Cohesion Fund: 62.99
Special programme for outermost regions: 1.1
Regions outside convergence: 48.31
Phasing- in for regions that were Objective 1 between 2000- 2006: 9.58
Cross-border cooperation: 4.7
External borders: 1.6
Transnational cooperation: 6.3
Networks: 0.6
Regions below 75 % of average GDP (Obj. 1): 177.8 (52%)
TOTAL 2007-13 : 336.1 Billion EUR
EAGGF, FIFG and two Initiatives would disappear, with only ERDF, ESF and
Cohesion Fund remaining, plus a fund for cross-border cooperation (EGCC).
How much will Romania finally get of this?
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Structural Funds: Principles
Clarity Member States & enterprises must understand why anincentive has been introduced, what it seeks to achieve and theactivities it is able to support
Simplicity The incentive should not be too complex toadminister. It should be simple and fast to apply as otherwise thetake-up rates would be low
Certainty Mechanisms must be put in place to limit the amountthat an incentive will cost. Enterprises need to obtain a quick
decision from Member States as to whether an activity qualifiesfor support or not
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Structural Funds: Principles
Compliance Any scheme must comply with relevant
national and EU legislation in force, including EU State
Aid
Non-discriminatory - Schemes should not benefit one
firm at the expense of another, nor adversely distort
existing market factors
Effectiveness A measure of the number of benefiting
firms, a method of impact assessment and cost
monitoring
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Structural : principles
All programmes co-financed within SFs are responsibility of theInstitutions of the State Members. They propose and classify the
projects within the National/Regional Strategic Plans and select the
best projects.
All projects financially supported by EU must be co-financed by localpublic or private sector.
A Follow up Committee supervises and controls implementation.
SF are not reimbursable.
In each Member State ,social and economic players can propose
and obtain SF support ,through the appropriate authorities on each
Programme.
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Structural Funds
EUROPEAN COMMISSION
STATES AND ITS REGIONS
FOLLOW UP COMMITTEES
Negotiates, approves, assigns
& pays MS
Manage, select,implement &evaluate
Follow up
MANAGEMENT AUTHORITIESApplication of
Programme and monitoring
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Structural Funds: Procedures
1.- EU Commission decides SF Regulations.
2.- EU Commission designs Priorities for each Objective.
3.- Member States design their own National Strategies and negotiatewith the EU Commission their own priorities, financial assignmentsand implementation rules.
4.- Programming Documents (Regional Dev. Plan, Reg. Oper.Programme, Sector Oper. Programme, etc.):
They describe the socio-economic context of the country or of thetarget regions of the SF, in accordance with the EU Objectives,pointing out priorities, objectives, management and financial tools,implementation, evaluation and control systems.
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Structural Funds: Procedures
5.- Member States create a document for each
Programme called: Programme Complement, elaborated
by the Institution that will manages them locally.
6.-Annual Management Report
7.- Follow up Committee Report
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Structural Funds: Procedures
Co-financing Objective 1: up to 75% total cost, and minimum 50% publicexpenses
in some cases, the % can reach 80 y 85% for certain Regions of
a State under Cohesion Fund or in ultra-peripheral Regions orperipheral islands.
Objective 2 and 3: up to 50% of the project total cost.
A limit for investments in income-generating infrastructures :
50% for Member States beneficiaries of Cohesion Fund
40% in all other regions under objective 1
25% in areas accepted under objective 2
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Structural funds - Instruments
Structural funds
Programme
administration (7%)
Financialinstruments
regional VCs,
guarantee funds,
credits, etc.)
Projects
(Infrastructure,
industrial,
employment,
etc.)
Grants (for social,training, to local
bodies, SMEs,
NGOs, etc.)
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Cohesion Fund
It is a tool to enhance the economic and social cohesion among EU
Countries,helping less developed ones within the EU.
The CF for 2000-06 is 18.000 million.
Beneficiaries of CF are those countries with a GNP lower than 90%
of the EU average,and follow a plan for economic convergence:
Ireland,Spain,Greece,Portugal.
Condition: If Beneficiary countries of the CF have an excessive
public deficit,CF are frozen until it is remedied.
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Cohesion Fund
Projects fall into two categories:
Environment: Projects that contribute to the overall EU objectives inEnvironmental Policy.
Priority is given to drinkable water supply, residual water treatment,andsolid waste management.Reforestation ,erosion control and protection ofthe environment are also eligible for finance.
Infrastructu re of Transp ort Projects
The financial support goes up to 80-85% total of Public investment cost.Presentation of projects to Brussels is made exclusively by the countryscentral Government.
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Contracting and implementing other EU
programmes
European Commission D.G.
MEASURES/
ACTIONS
Services, Works &
Goods (tenders) or
Grants
Contractors of projects orgrants (pr ivate sector,
regional and local
administ rat ions)
Calls for proposals:
DUTIES OF TASK MANAGER (OFFICER)
Definition and design of contents
Technical aid to projects
Monitoring and evaluation
Administrative and technical control
Facilitates the relationships with
Contracted by the
corresponding Directorate
General or Implementing
Agency
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Structural Funds:Community Initiatives
They are special Interventions by the EU Commission,proposing them to the Member States .These programmes canbe applied throughout the EU territory and are co-financed withSF ,with the aim to solve specific problems.
In the 2000-2006 period 4 Community Initiatives haveapproved.Each financed with Structural Funds:
INTERREG III: cross-border cooperation, transnational andinterregional (ERDF).
URBAN: regeneration of urban deteriorated areas (ERDF). LEADER+: rural development (EAGGF).
EQUAL: against discrimination in labour market (ESF).
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Structural Funds:Community Initiatives
They have a budget of 10.440 million, that is to say, 5,3% oftotal Budget of Structural Funds
They are special EU Commission interventions for specific
problems which serve as small SF actions.
They have 3 characteristics that give them added value versus
the rest of the support tools of the Structural Funds:
Enhancement of cross-border, trans-national cooperation.
European integration and convergence Intense participation of economic and social agents.
Promote the real cooperation among all participants.
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Community Initiatives : Interreg III
EU Community Initiative to promote integration and balanced development of theEU territories,where national borders must not be an impediment
Areas Objective 1 : up to 75%and 2 : up to 50
Beneficiaries: maritime,interior border regions1. Interreg A: Cross-Border Cooperation
2. Interreg B: Transnational Coperation3. Interreg C: Inter-regional Cooperation
Approach: Nature,Heritage,SMEs,work integration,sharing R+D and Culture,smallinfrastructures,legal and administrative cooperation,Transport,Experiencesexchange,Tourism,Maritime cooperation.Bottom-up
Selection criteria: unemployment,low income,social problems,environment
Budget : 4.875 + 480 PHARE million
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EU Community Initiative to regenerate socially and economically townsand/or neibourghoods to promote a sustainable development,by usinginnovative strategies in medium and small towns.
Areas Objective 1 : up to 75%
and 2 : up to 50%
Beneficiaries:Affected population per project :min 10.000
Approach: innovative solutions to existing problems
Selection criteria: unemployment,low income,social problems,environment
Budget : 700 million
Community Initiatives: Urban
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EU Community Initiative to fight all forms of discrimination and inequality inlabour market ,especially for asylum seekers
Areas Objective 1 : up to 75%
and 2 : up to 50%
Beneficiaries: geographical and sector Development Associations
Facilitate access to employment to handicapped people Fight racism and xenophobia
Promote entrepreneurship
Reinforce social economy
Selection criteria: cross-border cooperation,training,innovation,intergated
focus ,equal opportunities men and women.
Budget : 2.847 million
Community Initiatives: Equal
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EU Community Initiative to promote integrated development in rural areas
Areas Objective 1 : up to 75%
and 2 : up to 50%
Beneficiaries: Rural areas 10.000-100.000 inhabitants .Local ActionGroups(all socialeconomic groups)
Coherent strategy for the territory Interaction of different groups,network creation
Upgrade natural and cultural heritage
Help create jobs,better comunity organization,partnerships
Selection criteria: to be established by state members,and always in rural
areas.
Budget : 2.020 million
Community Initiatives: LEADER+
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Any EC grant funded by Structural funds or by direct Actions must fallbetween a range with a minimum and maximum amounts
A grant may not be for less than 50% of the total eligible costs of the Action.In addition, no grant may exceed 75 % (for Obj.1, with some exceptions goingto 85% or even 100%) of the total eligible costs of the action.
The balance must be financed from the applicant's or partners' ownresources, or from sources other than the European Community budget. WBand bilateral funds are accepted, if properly negotiated.
Example of call for proposal for a grant from DG Enterprise:http://europa.eu.int/comm/enterprise/funding/grants/themes_2005/calls_prop_2005.htm
GRANTS from SFs: Size of EC grants
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There are sets of eligibility criteria, relating to organisations
which may request a grant, actions for which a grant may be
awarded, types of cost which may be taken into account in
setting the amount of the grant.
1. Eligibility of applicants: who may apply
2. Partnerships and eligibility of partners
3. Eligible actions: actions for which an application may be made
4. Eligibility of costs: costs which may be taken into consideration
for the grant
Eligibility criteria
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1. Eligibility of applicants: who may apply- generally:
Non-profit-making legal persons
Organisations with their headquarters in the European Union
Be directly responsible for the preparation and management
of the action, not acting as an intermediary
Eligibility criteria
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Partnerships and eligibility of partners
Applicants may act individually or in consortium withpartner organisations; or, if partnership is obligatory under theprogramme, applicants must act in consortium with partnerorganisations.
Other organisations may be involved in the action. Suchassociates play a real role in the action but may not receivefunding from the grant. Associates do not have to meet theeligibility criteria, however, they must fulfil the general eligibilitycriteria.
Subcontractors are neither partners nor associates, andare subject to differents rules. The applicant will act as thelead organisation and, if selected, as the contracting party (the"Beneficiary"), private bodies will usually be subcontractors.
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Eligible actions: actions for which an application may be made
DurationThe duration of an action may not exceed a number of months Sectors or themesDescription of the specific sectors or themes to which the actions mustrelate
Location Actions must take place in one or more of the EU / Pre-accessioncountries: Type of actionsDescription of the type of actions which may be financed under theprogramme. The following types of action are ineligible: individual
sponsorships for participation in workshops, seminars, conferences,congresses, individual scholarships for studies or training courses; Number of proposals and grants per applicant
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Cost Eligibility
Eligible direct cost
Ineligible costs
Eligible indirect costs (overheads)
Contributions in Kind
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To be eligible under the call for proposals, costs must:
be necessary for carrying out the action,
have actually been incurred by the beneficiaries or theirpartners during the implementing period for the action;
be recorded in the Beneficiary's or the Beneficiary'spartners' accounts or tax documents, be identifiable andverifiable, and be backed by originals of supportingdocuments.
Eligible direct costs
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Normally eligible direct costs include:
the cost of staff assigned to the action, corresponding to actualsalaries plus social security charges and other remuneration-related costs;
travel and subsistence costs for staff taking part in the action,;
the cost of purchasing equipment (new or used) and services,provided they correspond to market rates;
the cost of consumables and supplies;
subcontracting expenditure;
costs arising directly from the requirements of the contract
(dissemination of information, evaluation specific to the action,audit, translation, printing, insurance) including financialservice costs (in particular the cost of transfers and financialguarantees).
Eligible direct costs
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The following costs are not eligible:
debts and provisions for losses or debts;
interest owed;
items already financed in another framework;
purchases of land or buildings, except where necessaryfor the direct implementation of the action, in whichcase ownership must be transferred to the finalbeneficiaries at the end of the action;
currency exchange losses;
taxes, including VAT, unless the Beneficiary (or theBeneficiarys partners) cannot reclaim them and theapplicable regulations authorise coverage of taxes.
Ineligible costs
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Any contributions in kind made by the Beneficiary
or the Beneficiarys partners, which must be listed
separately (Budget), do not represent actual
expenditure and are not eligible costs. They maynot be treated as co-financing by the Beneficiary.
However, the Beneficiary must undertake to make
such contributions as stated on the applicationform if the grant is awarded.
Contributions in kind
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Application forms and supporting documents
Applications must be submitted on the application form annexedto these Guidelines. The application form is also available on the
Europa web site.
Applicants should keep strictly to the format of the application
and fill in the pages in order.
Complete the application form carefully and as clearly as
possible so that it can be assessed properly. 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 tothe programme's objectives.
Hand-written applications will not be accepted.
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Applications must be accompanied by the following supporting
documents:
The statutes or articles of association of the applicant
organisation and where appropriate, of each partner
organisation;
The applicants most recent annual report and accounts (the
profit and loss account and the balance sheet for the previous
financial year);
Where the grant requested exceeds EUR 300 000 (EUR
75 000 for an operating grant), an external audit report
produced by an approved auditor, certifying the accounts for the
last financial year available and stating to what extent theapplicant has stable and sufficient sources of finance to
maintain its activity.
Other supporting documents required ( see format)
Supporting documents
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Applications will be examined and evaluated by the contractingauthority with the possible assistance of external assessors. All
actions submitted by applicants will be assessed according to
the following criteria:
1. Administrative compliance
Verification that the application is complete in accordance with the
checklist.
2. Eligibility of the applicants, partners and actions
Verification that the applicant, the partners (and the associateswhere
applicable), and the action are eligible according to the criteria set
out in the notice
Evaluation and selection of applications
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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 professional competencies and qualifications required tosuccessfully 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 grants to be
awarded to actions which Maximise the overall effectiveness of the call forproposals.
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.
Evaluation and selection of applications
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Section MaximumScore
ApplicationForm
1. Financial and operational capacity 20
1.1 Do the applicant and partners have sufficient
experience of project management?
5 II.4.1 and
III.1
1.2 Do the applicant and partners have sufficient
technical expertise?(notably knowledge of the
issues to be addressed.)
5 II.4.1 and
III.1
1.3 Do the applicant and partners have sufficient
management capacity?(including staff, equipment and ability to handle the
budget for the action)?
5 II.4.2 and
III.1
Example of scoring matrix
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Section MaximumScore
ApplicationForm
2. Relevance 25
2.1 How relevant is the proposal to the objectives and one or
more of the priorities of the call for proposals?
5 I.1.6(a)(b)
2.2 How relevant to the particularneeds and constraints ofthe target country/countries or region(s) is the proposal?
5 I.1.6(c)
2.3 How clearly defined and strategically chosen are those
involved (intermediaries, final beneficiaries, target groups)?
5 I.1.6(e)
2.4 Have the needs of the target groups proposed and the
final beneficiaries been clearly defined and does the proposal
address them appropriately?
5 I.1.6 (c)(f)
2.5 Does the proposal contain specific elements ofadded
value?
5 Passim
Example of scoring matrix
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Section Maximum
Score
Application
Form
3. Methodology 30
3.1 Are the activities proposed appropriate, practical, and consistent with the
objectives and expected results?
5 I.1.7
3.2 How coherent is the overall design of the action? 5 I.1.8
3.3 Is the partners' level of involvement and participation in the action
satisfactory?
5 I.1.8(e)
3.4 Is the target groups' and final beneficiaries' level of involvement and
participation in the action satisfactory?
5 I.1.8(e)
3.5 Is the action plan clear and feasible 5 I.1.9
3.6 Does the proposal contain objectively verifiable indicators for the
outcome of the action?
5 Logframe
Example of scoring matrix
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Section Maximum
Score
Application
Form
Sustainability 15
4.1 Is the action likely to have a tangible impact on its target groups? 5 I.2.1
4.2 Is the proposal likely to have multiplier effects? 5 I.2.2 & I.2.3
3 Are the expected results of the proposed action sustainable:
- financially (how will the activities be financed after the EC 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?)
5 I.2.4
Example of scoring matrix
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Section Maximum
Score
Application
Form
Budget and cost-effectiveness 10
5.1 is the ratio between the estimated costs and the
expected results satisfactory?
5 I.3
5.2 Is the proposed expenditure necessary for the
implementation of the action?
5 I.3
Note: Maximum Total score 100
Example of scoring matrix
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The Beneficiary usually receives some pre-financing. If the overallduration of the action does not exceed 12 months or if the grant does not
exceed EURO 100 000, the pre-financing will be 80% of the grant.
If the overall duration of the action exceeds 12 months and if the grantexceeds EUR 100 000, the first pre-financing instalment will be 80% of theforecast budget for the first 12 months of the action). In that case,subsequent pre-financing payments may be made upon submission by the
Beneficiary, and approval by the contracting authority, of an interim reportand a work plan and budget for the following period.
The final balance will be paid upon submission by the Beneficiary andapproval by the contracting authority of the final report Payments will be
made to an Action-specific bank account or sub-account which identifiesthe funds paid by the Contracting Authority
The Beneficiary must keep accurate and regular records and dedicated,transparent accounts of the implementation of the action It must keepthese records for seven years after payment of the balance.
Payments
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Audit
An external audit of the accounts of the Actions
implemented must be attached to:
any request for a further pre-financing payment if the
sum total of the earlier and the new pre-financing
payments exceeds EUR750
000;
any request for payment of the balance in the case of
a grant of more than EUR100 000; any payment request of over EUR 75 000 for the
financial year, in the case of an operating grant
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Example of Action Work Plan
Year 1
TIME Semester 1 Semester 2 Implementing
body
Act iv i ty 1 2 3 4 5
6
7 8
9
10 11 12 Example
Example Local partner 1
Execution
Activity
1(title)
Local partner 2
Preparation
Activity 3(title)
Local partner 1
Etc.
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Checklist
the dossier is complete and complies with the application form's
requirements one original and [] copies of all documents are annexed
an electronic copy of the file is enclosed where required
the dossier is typed and is in [language]
the declaration by the applicant (per diem) is signed and attached
if there are partners, the applicant has completed and signed a
partnership statement, also included
each partner has completed and signed a partnership statement and the
statements are included
the budget and the expected sources of funding are presented in the
format of the application form, completed and drawn up in
in the budget 's contribution is identified and
is a maximum of []% of the total eligible costs of the action
in the budget, overheads do not exceed 7 % of direct eligible costs
the logical framework matrix for the Action is included if requested
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Annex B. Budget for the Action1
Expenses Unit # of units Unit # of units
1. Human Resources
1.1 Salaries (gross amounts, local staff)4
1.1.1 Technical Per month 0 Per month 01.1.2 Administrative/ support staff Per month 0 Per month 0
1.2 Salaries (gross amounts, expat/int. staff) Per month 0 Per month 0
1.3 Per diems for missions/travel5
1.3.1 Abroad (staff assigned to the Action) Per diem 0 Per diem 0
1.3.2 Local (staff assigned to the Action) Per diem 0 Per diem 0
1.3.3 Seminar/conference participants Per diem 0 Per diem 0
Subtotal Hum an Resources 0 0
2. Travel6
2.1. International travel Per flight 0 Per flight 0
2.2 Local transportation Per month 0 Per month 0
Subtotal Travel 0 0
3. Equipment and supplies7
3.1 Purchase or rent of vehicles Per vehicle 0 Per vehicle 0
3.2 Furniture, computer equipment 0 0
3.3 Spare parts/equipment for machines, tools 0 0
3.4 Other (please specify) 0 0
Subtotal Equipm ent and suppl ies 0 0
4. Local office/Action costs8
4.1 Vehicle costs Per month 0 Per month 0
4.2 Office rent Per month 0 Per month 0
4.3 Consumables - office supplies Per month 0 Per month 0
4.4 Other services (tel/fax, electricity/heating, maintenance) Per month 0 Per month 0
Subtotal Local off ice/Action co sts 0 0
5. Other costs, services9
5.1 Publications10 0 0
5.2 Studies, research10 0 0
5.3 Auditing costs 0 0
5.4 Evaluation costs 0 0
5.5 Translation, interpreters 0 0
5.6 Financial services (bank guarantee costs etc.) 0 0
5.7 Costs of conferences/seminars10 0 0
5.8 Visibility actions
Sub total Other costs, services 0 0
Costs (in
EUR)3Unit rate (in
EUR)
All Years Year 12
Costs (in
EUR)
Unit rate
(in EUR)
Example of Action Budget
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Complete
Research
LOGICAL FRAMEWORK
Intervention Objectively verifiable Sources and means of Assumptions
logic indicators of achievement verification
Overall What are the overal l broader What are the key indicators relate What are the sources of
objectives ob jectives to which the act ion to the overall ob jec tives? information for these indicators?
will contribute?
Specific What specif ic objective is the Which indicators c learly show What are the sources of Which factors and condit ions outside
objective action intended to achieve to that the objective of the informat ion that exis t or can be the Benef ic iary's responsib ility
contribute to the overall objectives? action has been achieved? collected? What are the method are necessary to achieve that
required to get this information? objective? (external conditions)
Which risks should be takeninto consideration?
Expected The results are the outputs envisaged to What are the indicators to measur What are the sources of What external conditions must be met
results achieve the specific objective. whether and to what extent the information for these indicators? to obtain the expected results
What are the expected results? action achieves the expected on schedule?
(enumerate them) results?
Activities What are the key activities to be carried o Means: What are the sources of What pre-conditions are required before
and in what sequence in order to produce What are the means required to information about action the action starts?
the expected results? implement these activities, e. g. progress? What conditions outside the Beneficiary's
(group the activi ties by result) personnel, equipment, training, Costs direct control have to be met
studies, supplies, operational What are the action costs? for the implementation of the planned
facilities, etc. How are they classified? activities?
(break down in the Budget
for the Action)
Example of Logframe Matrix- Action
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STATE AID PRINCIPLES
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State Aid Regulations: DG Internal Market/Competition
Of course, whenever designing or launching a new scheme with SFs or
other EC programmes, the authorities have to check that EC State Aidrules are met.
This is very important once you are a Member of the EC, it is a cat-and-mouse game between national and regional bodies and EC officials asto the interpretation of the Rules. Fights and investigations arecommonplace.
Essentially simple: De Minimis rule applies (less than 100,000 EUR ofaid in three years to a single firm or related firms, which is generallyenough for most SMEs).
All aid beyond that has to be justified ex-ante (better) or ex-post (whenfairly sure, and unlikely the first few years after Accession). This can bedone by ANMMIC, the RDAs, Counties, Associations, or whoeverproposes a scheme within a grant application to benefit SMEs,cooperatives or self-employed.
The three Block Exemptions are usually accepted when justified indepressed areas. For the rest much more has to be justified to DGCompetition, with good lawyers and expert justification.
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State Aid Block Exemptions
Exemptions which apply to business support
(excluding De Minimis):
- SME Aid; depressed regions, innovation, specialsectors
- Training: all situations
- Financial Restructuring; financial distress in sectors
The Block Exemptions are justified expost (in theory,
but better check first), the others case by case.
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State Aid Regulations
General Summaries (SCAD) of State Aid regulations-
http://europa.eu.int/scadplus/leg/en/s12002.htm - State Aid De Minimis Rule:
http://europa.eu.int/scadplus/leg/en/lvb/l26065.htm
- State Aid SME Block Exemption:http://europa.eu.int/scadplus/leg/en/lvb/l26064.htm
- State Aid Training BE:http://europa.eu.int/scadplus/leg/en/lvb/l26063.htm
- State Aid Employment BE:http://europa.eu.int/scadplus/leg/en/lvb/l26091.htm
- State Aid in Agriculture (SCAD)-http://europa.eu.int/scadplus/leg/en/s12006.htm
- State Aid in Energy (SCAD)http://europa.eu.int/scadplus/leg/en/s1400EC
- State Aid in Transport-http://europa.eu.int/scadplus/leg/en/s12005.htm
- State Aid in Telecoms -http://europa.eu.int/scadplus/leg/en/s21012.htm#CADREJUR
Exercise
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Export credit and subsidy support programme- AREAS OF SUPPORT:
1) SME receives grant for fair, trips, promotion , brochures for up to
50,000 EUR
2) SME has option for accessing export credit of up 100,000 EUR withrate of Euroibor (in Romania that implies a subsidy of5% per yearfrom market rates) for up to 5 years
3) business export consultant for up to 80 person-days, at 50% subsidy(max 600 EUR/day)
4)Junior trainee expert 12 months with 750 EUR/month subsidy (+ 25% atleast by company)
5)Business premises can be rented for up to three years at 50% market
rate for offices with max of 100 m2 (10 EUR/m2/month)
6) Investment subsidy (reimbursable grant) of up to 40% of IT and/ormachinery acquisitions with up to 50,000 EUR.
OlteniaSM regions10 m EUR. STATE AID 146,000 EUR, redo the
scheme as you wish.-
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Examples of Business Support SF programmes
from Spain and Portugal
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Examples of SME Support Programmes: Spain
Competitiveness
Training Programmes
SME Internationalisation
Innovation and technology development
Financial Support Programmes Integrated schemes
Regional Programmes
Programme for Strengthening and Increasing SME
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ERDF funded programme launched by the Directorate-General for SMEPolicy, aims to provide assistance and encouragement for small andmedium-sized companies within the framework of a policy designed tostrengthen the fabric of Spanish SMEs.
Objective: To improve the competitiveness and quality of SMEs via thepromotion of the implementation of innovative systems.
The Aim of the Programme, with funds of EUR 300.51 million for2000-2006 are to implement: Measures based on ITCs and innovative business techniques. Regarding innovative business techniques, there are four
support programmes : design; quality systems; inter-companyco-operation networks; and process innovation- centred mainlyon aspects of SME management and organisation
Maximum % co-financing depends on the Region:
Intermediate organisations: IT investment 50% ceiling for investment
or advisory services. Max 50,000 EUR maximum and fixed rates forconsultants.
SMEs: a maximum of 65% for investments (objective 1) and 50% forexternal consultants, max of 10,000 EUR and fixed rates forconsultants.
Competitiveness
REDEPYME:Training, Information & Networking entrepreneurs
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Redepyme is an ESF-funded programme, which has started a network of
SMEs and entrepreneurs. The Madrid-based EOI Business School
Business was awarded the management of the programme.
The aim of the programme is to guide and assist the member companies
and also promote cooperation among them. In order to achieve this aim,
EOI maintains continual and individual contact with each of the business
owners by conducting a series of activities to keep them trained and
informed about issues of special interest for their business activity.
SMEs and entrepreneurs benefit from:
Up to three courses (short) per year for free Information sessions on important topics (taxes, registration, etc.)
Insertion in Virtual Fair and design of simple website for free
Small stand at a yearly Exhibition and Congress (60 EUR stand)
REDEPYME
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RESULTS 2003: More than 2,500 companies
in this Network in all the
Autonomous Communities
and from all business sectors
340 courses / 7.640 trained
entrepreneurs
6.250 counselling projects
implemented (BPs, on going
firms, etc.)
2.380 New companies
assisted
Promotion of New Exporters- PIPE 2000
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Instruments:
Technical Assistance: Consultancy during the 3 phases of the
programme. First phase by public staff and 2nd and 3rd byexternal and certified consultants
Financing rate: 80 % of total eligible costs subsidised. With a limitof 30.000 EUR per beneficiary company (33,000 EUR forObjective 1 regions). Chambers of Commerce co-finance the %between the EU (50-75% depending in region) co-financing rate
and the final user rate. Eligible expenditures: Hiring of consultants (compulsory),
travels, fairs, brochures and promotional material
Methodology: With the assistance of experts in the beneficiarycompanies prepare a autodiagnostic, including SWOT,
strategy, resources, commitment, etc. ( meetingsand workshops). Phase 1 Auto-diagnostic: Maximumwithin 2 Months
Output: With the results of the autodiagnostic, companies haveto decide whether to go for phases 2 and 3
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SME Finance and credit
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Only 15 % of external financing of Spanish SMEs is provided by externalinvestors- which includes venture and equity funds
Bank loans represent almost 60 % of external financing
Venture capitalas well as seed/start-up capital- is still relativelyunderdeveloped in most Spanis regions vs EU countries and USA (0,082% of GDP vs 0,128% of GDP in EU and 0,646% in USA)
Moreover, only about 25% of venture capital goes to hi-tech industries vs.80% in the USA and 84% in Israel (This 2004 lower)
Spanish regions have tried different equity and loan guarantee schemes,while other rely more on tax incentives
Each public scheme has different cost, impact and market distortionrelationship- generally national government schemes shy away from directinvestment
Financial Assistance to SMEs: SME facility .ICO(Instituto de Crdito Oficial)
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ERDF and ESF funds used, managed by State BankICO (second floor bank) and disbursed to SMEs by
selected commercial banks.
Instruments: Medium and long term financing of productive or
facility investments made by SMEs, with a limit of
1,5 M EUR, with 3, 5 and 7 periods (grace period of
1 year for 5 and 7 years). Rate of Euribor + 0,4%with variable or fixed rate. Only covers 70% of fixed
investment.
A separate micro-credit scheme, also financed by
ESF, has a limit of 25,000 EUR and three year (no
collateralsecurit necessar . Rate fixed at 6%
ICO(Instituto de Crdito Oficial)
Financial Assistance to SMEs: SME facility .
ICO(Instituto de Crdito Oficial)
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Results: Over nine years in which the SME Facility has been effective,
ICO has provided SMEs with loans worth EUR 14,676 million, to over180,000 enterprises. This has generated total investments of over EUR28,000 million (2 to 1 leverage). The average loan was EUR 80,000 forthe SME facility.
SME facility: the application can include all investments made in fixed
assets, with the following limits: If the project presented includes real estate investment, theinvestment will not exceed 80% of the amount of the total investmentto be financed.
If the project presented includes an investment in intangible
assets, the investment will not exceed 50% of the amount of the totalinvestment to be financed.
ICO(Instituto de Crdito Oficial)
SF funded a network of 21 EC-accredited BICs, 18 regional
venture funds and equity guarantee schemes plus partial funding
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q y g p p g
for the National Reinsurance Guarantee Agency
Some BICs were started up to 50% EU funds for infrastructure
and 75% for services. Nowadays, their financing is marginal Similar to other EU countries, the central government first, and
then regional governments, first invested directly and thenmoved back to guarantee or reinsure equity funds, so as toincrease leverage and outreach
Mutual guarantee funds (privately owned by subscribers) are aspopular as in Italy. They started in areas with cooperativetradition- and are now backed and/or reinsured by regional andReinsurance Guarantee Co.(CERSA), offering both loan andnow equity guarantees
Regional venture funds were started in all regions in the 80swith mixed results. Later they aimed at leveraging funds ofequity guarantee schemes and seed capital. They are alsosupported through a National Innovation Enterprise participativecredits (ENISA) (Convertible debt into equity at entrepreneurs
with EIF-funded), and through the 21 BICs and other bodies.
Today most Spanish Regions are heading towardsmixed -or integrated- schemes combining seed
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ed o teg ated sc e es co b g seedcapital with incubation and training support
Step Phase Tools / Programmes
Awareness- Seminars- Conferences
- Road-shows/ PLUS prizes or awards
Identification of potential entrepreneurs/
ideas
Testing, registration, IPR
-Technology transfer offices
- Universities/ RAICs
- Pre-incubation facilities PLUS grants atuniv, incubators ortechnology centres-
- Seed capital PLUS incubation
- Stand-alone incubators/ BICs
- Incubators at science/technology parks
- Incubators at technology or research
centres
Identification/ Training
Pre-incubation
First sales payment delivery
and payment
Recruitment of first
employees
Business Plan
-
Post- incubation management
Expansion of premises/staff
- Commercial offices
- Science/technology park premises PLUS
tax incentives
- Expansion venture capital
Incubation
Post- Incubation
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The Europe- requirement can help adoptnecessary policies (SME upgrading and fiscalreform) which lack public osupport
There are short term costs to reform, but no pain,no gain
Reform should not end with EU accession: EUcountries are not necessarily the lead to follow
Productivity enhancing policies should beimplemented with SFs (human capital, R&D,etc.),not only infrastructure or social programmes
Spain: Lessons for Accession Countries
Technological Innovation programme:
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Technological Innovation programme:Laboratory for Shoes cluster
Example: Spanish Aragon region, Laboratory for Quality Shoes in
Aranda
ERDF-funded programme, yet helped design and within thepolicies of the Directorate-General for Enterprise (technologycentres), aims to provide assistance and encouragement forsmall and medium-sized companies within the framework of apolicy designed to strengthen the fabric of Spanish SMEs.
Objective: To improve the competitiveness and quality of SMEShoes Industries via the promotion of the implementation ofinnovative systems with a Laboratory (small technology centre)for quality, training, etc.
Centre should deploy ICT and innovative management andproduction and design techniques. The Centre defined foursupport programmes : design; quality systems; inter-companyco-operation networks; and process innovation - centred mainlyon aspects of SME management and organisation.
T h l i l I i
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Technological Innovation programme:Laboratory for Shoes Cluster
Spanish Aragon region- Laboratory for Quality Shoes in Aranda
Beneficiaries: SMEs in Aragon of the leather and shoe sector,through their local shoe manufacturers association.
Eligible expenses: External consulting costs, related services,technical equipment for laboratory and computers.
Excluded were the investment in the buildings, furniture andoperating costs.
Procedures:With the laboratory the Aragon shoes industrieshave a tool for analysing the raw material and to improve themanufacture of shoes.
And with the laboratory the SME Aragon Shoes getting a similarquality of final product in the differents industries.
Programme costs, total funds of EU (ERDF) 50%: 240.500 EUR .Total costs of centre EUR 481.000 EUR for set-up. The centre laterapplied for R&D grants, regional grants, etc., for operationalphase.
Portugals EU Accession and Convergence
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Portugal s EU Accession and Convergence In 1974, the isolation and the backlog between Portugal and the
developed parts of Europe seemed to be enormous. Thedictatorship and the colonial war - since 1961 - resulted in bigeconomic, social, political and cultural underdevelopment. TheEuropean accession - result of a wide consensus of thePortuguese political elite- resulted in the transition todemocracy and a basic element of its consolidation.
After an agreement was reached in 1978 that Portugal would beaccepted within the EC, negotiations took from October 1978 toMarch 1985 along side those negotiations between theCommission and Spain. In retrospect, there is no doubt thatpolitical factors played a major role in the admission of thecountry to the EC, mainly the need to consolidate democracy.
The period of 1978 to 1984 was characterised by largemacroeconomic disequilibria. Portugal had to go through twoIMF supported stabilisation programs and benefited from EUpre-accession funds and a large loan to support democracy.
Portugals EU Accession and Convergence
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Portugal s EU Accession and Convergence In 1974, the isolation and the backlog between Portugal and the
developed parts of Europe seemed to be enormous. Thedictatorship and the colonial war - since 1961 - resulted in bigeconomic, social, political and cultural underdevelopment. TheEuropean accession - result of a wide consensus of thePortuguese political elite- resulted in the transition todemocracy and a basic element of its consolidation.
After an agreement was reached in 1978 that Portugal would beaccepted within the EC, negotiations took from October 1978 toMarch 1985 along side those negotiations between theCommission and Spain. In retrospect, there is no doubt thatpolitical factors played a major role in the admission of thecountry to the EC, mainly the need to consolidate democracy.
The period of 1978 to 1984 was characterised by largemacroeconomic disequilibria. Portugal had to go through twoIMF supported stabilisation programs and benefited from EUpre-accession funds and a large loan to support democracy.
Portugals EU Accession and Convergence
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Portugal s EU Accession and Convergence The inflation rate in Portugal during pre-accession was
particularly high and the government deficit was also high by
developed country standards. The unemployment rate wasreaching record levels after the crisis of 1982-83
Growth was also disappointing during the pre-accession period,from 1974 to 1986 Portugal lost about 6 percentage points in theconvergence rate to the EU. In 1986 the GDP per capita was only55% of the EU average, the smallest of all cohesion countries.
Greece and Spain were also experiencing a process of non-convergence
A large part of the economy was in the hands of the state, andlarge parts of manufacturing and services were closed to theprivate sector. The press and radio stations were almost all stateowned, the television was state property too. The labour marketwas heavily regulated with no possibility of laying people off.
Wages were set by negotiations between the state and unions
Portugals EU Accession and Convergence
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Portugal s EU Accession and Convergence
It was only after accession that Portugal had a cycle of high growthaccompanied by structural reforms. From 1987 to 1991, GDP growth
averaged 6.5%, about 3.5 percentage points above the EU average.
A major factor behind the remarkable growth rate was a terms-of-exports improvement of 24% in 1984-85, and a real devaluation of26% in the decade prior to 1985
Another factor was the structural reforms undertaken, whichincluded:
(i) fiscal reform
(ii) privatisation
(iii) labour market reforms
(iv) financial sector modernisation (v) infrastructure build-up
Portugals EU Accession and Convergence
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Portugal s EU Accession and Convergence
The investments in modernisation of the infrastructure fortransportation - roads and highways - in the construction of thecountry's drainage network, in telecommunication and regionaldevelopment, as well as in tourism infrastructure and key industries-for example car production- reached a level without precedent in thehistory of Portugal.
The large impact of trade in the economy is reflected in a jump in theratio of average exports and imports over GDP from 29% in 1985 to53% in 1995. Direct foreign investment also increased substantiallyin the early 1990s.
Portuguese per capita GDP, in terms of the purchasing power rosefrom 54% of the 1986 EEC/EU average to 74% by 2001. In 1986 the
per capita GDP was 4.200 euros and reached 11.100 by 2000.
The Community Funds: Financial Assistance
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According to the Portuguese authorities, the financial
support during Portugal's pre-accession period - between1980 and 1985 - was rather poor, about EUR 165 million andalso rather insignificant in the first three years following theaccession in 1986 about EUR 1,8 billion. - I CSF ( CommunityStructural Funds, 1989-1993) billion.
The extent of financial aid grew significantly from 1989 as aresult of the reform of the Structural Funds by entering intoforce of the First Community Support Framework.
Portugal has received the equivalent of 3% to 4% of GDP
annually ( ceiling of 4 % of GDP) , from structural funds andother Community initiatives, from 1989 to 2001. Under thecurrent Plan, the level of funds falls to slightly less than 3% in2006 (Agenda 2000).
The Community Funds: Financial Assistance
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Portugal received in Euros (at 1999 price)
- 10,96 billion - I CSF (1989-1993)
- 19,96 billion - II CSF (1994-1999)
and has another
- 22,82 billion by the III CSF (2000-2006)
The impact of the community funds in percentage of the GDPwas very significant, namely:
- 3,1 % of the annual GDP during the period of the I CSF
- 3,5 % of the annual GDP during the period if the II CSF
Besides the decisive importance of the entering into force ofthe CSF, a clear conclusion has to be drawn: some years werenecessary for Portugal to obtain an economic, political and
administrative maturity and to present good projects, todevelop good language skills and get acquainted with theeurocracy of the Brussels' corridors in order to be efficientreceivers of the accessible community funds.
Conclusions
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After 18 years the balance of the European option is undoubtedlypositiveand now we can confirm that no of other option could haveprotected the interests of Portugal better or created betterconditions for the Portuguese people.
The accession to the EC was a decisive step for the developmentand opening of the Portuguese economy. The overall structuralreforms initiated at that time, the successful amendments thedisequilibria of the macro-economy, the appropriate use of thecommunity funds, transformed Portugal a clearly positive exampleof the European integration.
This economic and social cohesion gave a unique opportunity toPortugal of modernisation and development. One of the moststriking results was the construction of an important transport
infrastructure. To mention one, in 1990 there were only 320 kms. ofhighway in Portugal, and by 2002 another 2.370 kms were built. Inthe field of the professional training, during the First CSF, an annualaverage of two hundred thousand people were employed and eightythousand new jobs were created.
Conclusions : Spain and Portugal
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Structural funds are not enough: also necessary are efficientpublic programmes of current and capital expenditure.
Money is fungible, so the Commission may refuse to financea white elephant, but the country can divert resources freedfrom Community contributions to other projects, to pursuethose projects- which may be harmful to the efficiency andgrowth of the economy.
Countries receiving large structural funds should be
encouraged to prepare an overall investment strategy for thepublic (and SME sector), which should be discussed with theCommission.
Programmes/ schemes submitted for financing should bedrafted according to the economic/social developmentstrategy; and attribute high priority to efficiency, equity and a
substantial portion targeted to the poorest. As usual, targeted SME support schemes with clear
beneficiary groups (sector or type of companies) have higherand more measurable impacts.
Conclusions: Spain and Portugal
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It is now widely recognised that a high level of transfers maycreate a subsidy culture. So the 4% of GDP limit to those
transfers is also a welcome ceiling. However, this limitdiscriminates against small poorer countries, and should becomplemented by a GDP per-capita limit.
The other negative impact of subsidies is the rent-seeking
activities that it creates in the recipient countries. TheCommunity is strengthening its auditing and procurementmechanisms, and establishing systems that are ascompetitive as possible in order to avoid corruption andfavouritism by national governments.
This is of the utmost importance if we want to avoid theeffects of the grabbing hand and promote a efficient andimpact-oriented system in a competitive Europe.
Advice, consultancy, mentoring andBusiness Information
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The Portuguese Business Association (AEP) provides technicalassistance and information to companies as well as supportthrough specific programmes. Company services are provided in
the following areas: Company Formation, Tax and Labour Laws
Innovation, Mediation and Industrial Ownership
Energy, Quality, Environment, Hygiene and Work Safety
Business Organisation and Management
Digital Economy, Internet, Information Systems
- Information to enterprises is available on line www.aeportugal.pt
- Information services, with access to large world-wide data-bases
- Information centre, reception and assistance with applications fordifferent incentives and support schemes
Advice, consultancy, mentoring andbusiness Information
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INFANTE - Programme for the promotion of quality andsecurity conditions of Portuguese food products.
INTERVIR- Programme for the Implementation of
measures leading to good environmental and energy-
saving practices in industry. PME - Training and Consultancy Support programme
for business development, with a view to improving the
competitive profile of companies. It is aimed at SMEs
and Micros
PRONACI - National Programme for training of middle
Management for Industry. First national programme with
the aim of improvement and qualification of middle-
management posts in the Portuguese industry.
Specific Programmes of AEP
bus ess o at o
Advice, consultancy, mentoring andbusiness Information
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Enterprise spin-offincubators are office spaces and
infrastructures- including technical and material
support - targeted to young entrepreneurs for the
start-up and/or development of their science and
technology based activities, usually from universities.
This measure is aimed at young graduates aged
between 18 and 35, wishing to create a NTBF or infirst phase of development for enterprises in their first
year of activity
Maximum 4 associates are allowed per enterprise.
All necessary information and application documentsare available online
There are 3 enterprise nests in Portugal: Porto,
Lisboa and Faro ( www.fjuventude.pt)
Regional Incentives; Scheme for the Aores
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Strength and modernisation of the Regional Economy andthe diversification of offer of goods and services, privileginginnovative initiatives that can contribute towardsenvironment protection, territory development, valuation ofthe endogenous resources, setting of the populations and
job creation.
Enterprises must:
- Be legally constituted or in phase of creation.
- Be in order with social security payments- Have an organized accountancy by the time of application
- Have a healthy economic and financial situation
- To have all necessary licenses and be registered to the
Industrial or Commercial Register Office
Regional Incentives; Scheme for the Aoresislands
Regional Incentives; Scheme for Aores islands
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Eligible investments: Investment in fixed assets: minimum
14 963 EUR and maximum149 639 EUR. For craftprojects, minimum investment: 2.493 EUR.
General conditions of eligibility:
a) Construction and adaptation of infrastructures and buildings;
b) Equipment
c) Software acquisition;
d) Vehicles or other means of transport, since that demonstrated itsessential for the project;
e) Technical accompaniment of the project and related studies with
exception of those carried out more than 12 months before application.
f) Investments in intangible assets for the improvement ofmanagement, namely investments for the increase of competitivenessfor internationalisation, innovation, sciences and technology, systemsof quality, safety and environment management, introduction of
communication (IT), distribution techniques, commercialisation,
g ;
SME Guarantee facility
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SME Guarantee facility Support the investment activity of innovative SMEs through increased
availability of loan finance. For SMEs of less than 100 employees,
guarantees will normally be provided free of charge.
Guarantees are normally limited to 50% of the investment cost and are
priced according to the perceived risk. The fund usually provides
guarantees to a group of firms in a form agreed with each financial
intermediary, rather than giving a direct guarantee for an individual
SME.
The risk covered by the facility must be additional to the risk the
intermediary would have underwritten in the normal course of its
business, for example enhanced access to debt finance for start-up
companies through less stringent eligibility criteria.
SME Guarantee facility
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Objective: To contribute to the adjustment of the financial
environment, so that it constitutes a suitable framework for
financial balance, and for the implementation of agressive
business strategies by SMEs;
- To stimulate innovative funding schemes, by broadening and
diversifying the offer of financial products and services
available to smaller enterprises. This will concur to correct
residual market weaknesses in the access to financial services
and products by SMEs;- To favour new enterprises start-ups and the access of new
agents to business, by providing entrepreneurs with the
possibility to secure funding in the adequate conditions.
Other types of financial supportinstruments
available
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available
Risk Capital Syndication Fund (RCSF) for SMEs
Its goal is to perform joint operations within the risk capital area,
through investment and financing of entities specialising in this
domain, in view of strengthening SMEs own capital
Establishment of a Loan Securitisation Guarantee Fund (LSGF) -to share the risk assumed by investors when purchasing bonds
that give them credit rights on SMEs.
Reinforcement of the Mutual Counter-Guarantee Fund (MCGF)
to ensure adequate levels of capitalisation and solvency.
Establishment of Mutual Guarantee Corporations to ensure the
required regional and sector coverage of this mechanism, thus
significantly
Sector specific: Automobile INAUTO
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To increase the national automobile industrys competitiveness,
through the support of technical abilities and strategic capacities ofthe enterprises development, and by establishing organisational andeconomic co-operations that allow to get and to support competitiveadvantages as a form of guaranteeing a better positioning in theinternational markets.
Produce strategic information, at market level, in order to contributefor the creation of a singular type of culture in this sector. Toestablish channels, between enterprises and scientific andtechnological system entities, that allow the increase oftechnological development and management, as a way of creatingnew qualifications in advanced production technologies and product
development.
Promote the interaction between components supplying companies,using cooperation nets.
Encourage activities that promote the national automobile industry,in order to contribute for the internationalisation and for the attraction
of new foreign investments.
Sector specific Tourism: SIDET
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To promote and diversify tourism activity and developmentin the Region of the Aores.
The aim of this measure is to support Tourism activities
which involve the following:
Fixed capital investment projects.
Tourism promotion projects developed by SMEs.
Tourism animation projects of developed by SMEs.
Companies whose speciality is the development of theagricultural space and the qualification of the human
resources and the environment are supported through
incentives.www.sre.raa.pt
Sector specific: Fishery- MARE
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To increase competitiveness and strengthen the economy of the threebasic sub sectors, namely fisheries, aquaculture and processingindustry.
To keep a sustainable exploitation of the fishing resources and developadditional sources for fish supplies.
To encourage better knowledge and professional skills of the fisheriessector
To promote diversity of the fishing communities and enlarge theirimportance through measures that develop small-scale coastal fishing.
To promote the scientific potential of the fisheries sector, guiding andsupporting Research & Development activities enabling more research
regarding production and a better knowledge of the ExclusiveEconomical Zone. (EEZ)
Minimum investment 15,000 - Projects exclusively related withproduction of vegetable oil and flour transformation are not allowed topresent its project to this system.
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DAY 2
EC Structural Funds Programming
and Project Cycle Management
ass ca on o e en er ngprocesses for technical assistance
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The following limits USUALLY apply to EC contracts
(see General Conditions for EC Contracts):
Up to 50.000 EUR contracts, Commission
Framework Contract (short list of 3) or direct award
Up to 200.000 EUR contracts, Framework
Contracts or restricted bidding (short list of 3 within Lot
of Framework)
Above 200.000 EUR contracts, Awarded after
international tender in EuropeAid (shortlist of 5 to 8)
(services)
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PART II
EC PROJECT CYCLE
MANAGEMT
OVERVIEW OF EC PROJECT CYCLE MANAGEMENT
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What is a project?ISO/PMI: A series of activities aimed at achieving
one or more specific objectives within a defined time
frame and with a defined budget
EC: A project is an instrument which is used tocontribute to the achievement of a larger goal
(e.g. a programme), which will in its turn supportsthe implementation of a broader policy
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What are project monitoring and
evaluation?Monitoring (EC): To assess whether the
project is reaching and/or is likely to reach
its objectives and results in a timely andefficient way
Evaluation (EC): To assess whether theproject has had impact intended and
reached its purpose and results in a timely
and efficient way
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The EC External Aid Project Cycle
Programming
Identification
FormulationImplementation
Evaluation& Audit
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The EC Project Cycle
EC: The way in which projects are
planned and carried out; it follows asequence beginning with an agreed
strategy, which leads to an idea for a
specific action, which then is formulated,
implemented, and evaluated with a view toimprove the strategy and define further
action
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Project Cycle Management
The management activities and the
decision-making procedures used duringthe life-cycle of a project, including key
tasks, roles and responsibilities, key
documents and decision options
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PCMis used to ensure that:
projects are supporting predefined overarchingpolicy objectives;
projects are relevant to an agreed strategy and to
the real problems of the target groups/beneficiaries;
projects are feasible meaning that objectives can
be achieved given the constraints of the operating
environment;
benefits are likely to be sustainable.
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The essential PCM principles are: use of Logical Framework Approach (LFA) to
formulate the project and analyse the problems;
production of good quality key documents in
each phase to ensure structured and well-informed decision making;
consulting and involving key stakeholders as
much as possible.
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Key documents in the PCM:
Programming
Identification
FormulationImplementation
Evaluation
Programming
Identification
FormulationImplementation
Evaluation
Decisions to take Documents to produce
Country
Strategy PaperPriority areas,
Sectors,
timetable
Which options
to study
further
Pre feasibility
studyProject
IdentificationSheet
Feasibility
study
Financial
Proposal
Decision
on funding
Financing
Agreement
Progress
& Monitoring
Report
Decision whether to
continue as plannedor reorient the project
Evaluation
Report
Decision
on how to use results
for planning
Project Identification, Formulation and Analysis
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What is Programming?
For EC development assistance:
establishment of general guidelines andprinciples for EU co-operation with a
country
For other types of EC programming:
establishment of main developmentpriorities
What is Identification:
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To add more details to the output of the
programming phase by:
identifying project ideas consistent with the set
priorities;
assessing their relevance and the feasibility;preparing a detailed Financing Proposal (MEDA
and Tacis) or Project Fiche (ALA or ACP);
preparing a financing decision for a Programme
or projects, or call for further studies/analyses
Identification and Formulation
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Tools: The core tools of the Identification andFormulation phases are:
1. Quality Assessment Criteria
2. Logical Framework Approach (LFA)
3. Institutional Capacity Assessment
4. Promoting Participatory approaches
5. Preparation of Terms of Reference
6. Identification, Action Programme and Project Fiche
7. Economic and Financial Analysis
Identification: Assessment Criteriaand Standards
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A. RELEVANT
1. Consistent with EC development and cooperation policies2. Consistent with partner government policies and sector programmes
3. Key stakeholders identified, institutional issues and local ownership
4. Problems appropiately analysed
5. Lessons learned from experience and linkages to other projects andprogrammes incorporated
B. FEASIBLE6. Preliminary objectives are clear and logical, address needs
7. Preliminary resource and costs clear and economic-financial analysiscarried out
8. Preliminary coordination and financing arrangements clear and supportinstitutional strengthening
9. (Not applicable to formulation)
10. Assumptions and risks identified and appear reasonable
11. Likely to be environmentally