seminar craiova march last 276slides

7/27/2019 Seminar Craiova March Last 276slides

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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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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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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


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


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


technical expertise?(notably knowledge of the

issues to be addressed.)

5 II.4.1 and

III.1


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



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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



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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



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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



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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 .



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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.


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.



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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.



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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



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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



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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
http://www.fjuventude.pt/http://www.fjuventude.pt/


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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
http://www.sre.raa.pt/http://www.sre.raa.pt/http://www.sre.raa.pt/


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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


Evaluation

Programming

Identification


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