Contracting Authority: United Nations Office for Project Services (UNOPS) as the implementing agency of the project “Norwegian Support to the Western Balkans Development, Norway for You – Serbia”

CALL FOR PROPOSALSSupport to Beginners in Business and to Development of

Existing Businesses through Procurement of the Equipment and Provision of Services

- Guidelines for applicants -

Reference No: CFP 04-2019

Table of Contents

1. Background.......................................................................................................................................32. Justification of the Intervention....................................................................................................43. Objectives of the Call......................................................................................................................54. Subject of the Call for Proposals...................................................................................................65. Financial allocation..........................................................................................................................66. Guidelines for the Applicants – LOT 1...........................................................................................7

6.1 Core Eligibility Criteria............................................................................................................76.1.1 Applicants.........................................................................................................................76.1.2 Business............................................................................................................................7

6.2 The Project Selection..............................................................................................................86.3 The Grant Amounts..................................................................................................................86.4 Duration of Projects................................................................................................................86.5 The Process...............................................................................................................................86.6 Non-eligible Activities and Costs..........................................................................................86.7 Selection Criteria.....................................................................................................................96.8 Documentation to be submitted..........................................................................................10

7. Guidelines for the Applicants – LOT 2.........................................................................................117.1 Core Eligibility Criteria..........................................................................................................11

7.1.1 Registration....................................................................................................................117.1.2 Ownership.......................................................................................................................117.1.3 Number of employees...................................................................................................127.1.4 Finances..........................................................................................................................127.1.5 Legal issues....................................................................................................................127.1.6 Other................................................................................................................................12

7.2 The Project Selection............................................................................................................127.3 The Grant Amounts................................................................................................................137.4 Duration of Projects..............................................................................................................137.5 The Process.............................................................................................................................137.6 Non-eligible Activities and Costs........................................................................................137.7 Selection Criteria...................................................................................................................137.8 Documentation to be submitted..........................................................................................15

8. Cross-cutting Issues......................................................................................................................169. Instructions for Submission of the Documentation and the Deadline..................................1610. Branding and Visibility Requirements....................................................................................1611. Monitoring, Reporting and Evaluation...................................................................................1612. Additional Considerations........................................................................................................17

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13. Documents Attached to this Call (List of Annexes)..............................................................1714. Indicative Timeframe.................................................................................................................17

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1. Background

The “Norwegian Support to the Western Balkans Development, Norway for You - Serbia” is a two-year project financed by the Kingdom of Norway and implemented by United Nations Office for Project Services (UNOPS).

Overall objective of the Project is to contribute to a more balanced socio-economic development in Serbia by increasing employment opportunities, support social cohesion and improve local infrastructure in the less developed areas. Special focus will be given to inclusion of youth, women and vulnerable groups in the labour market. Also, the Project will establish an information security framework for e-governance in Serbia.

Project is designed to be implemented on the territory of underdeveloped areas in Serbia, in total 91 local self-governments classified in third and fourth group of development1.

There are four results that the Project will achieve:

Result 1: Improved Access to Employment Result 2: Enhanced Social Inclusion Result 3: Improved Living Conditions and Local Infrastructure Result 4: Information Security of the Government of Serbia Strengthened

The key stakeholders and the direct beneficiaries of the Project are the local self-governments and their institutions and organisations, regional development agencies, civil society organisations, business support organisations, as well as individual beneficiaries, youth, women and vulnerable and marginalised groups. The final beneficiaries are the inhabitants of the underdeveloped areas where the Project will be implemented.

The Project will coordinate its activities with the key line national-level institutions, while observing the national strategies, laws and relevant development documents, which will contribute to its sustainability, ensure national ownership and develop national capacities.

All Project activities will be undertaken in partnership with the Government of Serbia, in cooperation with the national and local institutions, with the aim of allowing them to respect the legal requirements and, where relevant, EU accession criteria. This will ensure national ownership and help develop national capacities.

All project activities will have good governance, human rights, gender equality, environment and climate and anti-corruption as transversal themes, the application of which in local policies and regulations will increase social cohesion.

1 In line with the Regulation on the Single List of Development of Regions and Local Self-Governments, Official Gazette of the Republic of Serbia No. 104/2014.

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List of 91 municipalities from the third and the fourth group of development eligible for participation in the Project activities:

Aleksinac, Alibunar, Babušnica, Bač, Bajina Bašta, Batočina, Bela Balanka, Bela Crkva, Blace, Bogatić, Bojnik, Boljevac, Bosilegrad, Brus, Bujanovac, Ćićevac, Čoka, Crna Trava, Ćuprija, Despotovac, Dimitrovgrad, Doljevac, Gadžin Han,

Golubac, Irig, Ivanjica, Kladovo, Knić, Knjaževac, Koceljeva, Kovačica, Kovin, Kraljevo, Krupanj, Kučevo, Kuršumlija, Lebane, Leskovac, Ljig, Ljubovija, Loznica, Lučani, Mali Iđoš, Mali Zvornik, Malo Crniće, Medveđa,

Merošina, Mionica, Negotin, Nova Crnja, Nova Varoš, Novi Bečej, Novi Pazar, Odžaci, Opovo, Osečina, Paraćin, Petrovac na Mlavi, Plandište, Preševo, Priboj, Prijepolje, Prokuplje, Raška, Ražanj, Rekovac, Sečanj, Šid, Sjenica,

Smederevska Palanka, Sokobanja, Srbobran, Surdulica, Svilajnac, Svrljig, Titel, Trgovište, Trstenik, Tutin, Ub, Varvarin, Veliko Gradište, Velka Plana, Vladičin Han, Vladimirci, Vlasotince, Žabalj, Žabari, Žagubica, Žitište, Žitorađa.

2. Justification of the Intervention

Social inclusion reflects in participation of all employable persons in paid work, especially the members of vulnerable groups. Inclusion of these categories is the means to reducing the risk of poverty, exclusion and dependence on the benefits of the social welfare system.

Despite progress registered in recent years, high unemployment remains one of key problems in Serbia. That problem, in particular, hits youth, women and vulnerable and marginalised persons.

In Serbia, 125 out of 145 municipalities have development levels lower than the national average, while 91 are below 80% of the national average. Average salaries in those municipalities are at least 25% lower than the national average2 and unemployment rate is much higher.

Inhabitants of rural areas are in more difficult situation comparing to inhabitants of urban areas. Percentage of the people living under the poverty line is twice as large in rural areas compared to urban areas. In 2013, 12 percent of inhabitants of rural areas was absolutely poor, compared to 6.3 percent in urban areas.3

Although generally speaking a large number of citizens in Serbia today could be classified as vulnerable or marginalised, the risk of falling into categories of one or both of the factors is much more obvious for particular social groups, such as youth, disabled, women or Roma. And this goes especially when it comes to accessibility to labour market for any member of the said groups. Some of the available data4

show that Roma and especially Roma women are being significantly discriminated against in the labour markets in Central and South East Europe, including Serbia.

2 Source: Statistical Office of the Republic of Serbia 3 Source: http://socijalnoukljucivanje.gov.rs/wp-content/uploads/2014/11/Drugi-nacionalni-izvestaj-o-socijalnom-ukljucivanju-i-smanjenju-siromastva-final.pdf 4 O’Higgins, Niall – Roma and Non-Roma in the Labour Market in Central and South Eastern Europe, Roma inclusion working Papers, UNDP Bratislava, 2012

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While unemployment amongst non-Roma males in Serbia stood at 21%, the rate for Roma males was at 39%, the situation is even more unfavourable with Roma and non-Roma women, where the rates are 67% and 37% respectively. However, these figures in reality are even higher, since the survey did not take into consideration those who are not registered as unemployed.

According to the National Employment Service (NES) official data, participation of young people up to 30 years of age in the registered unemployment rate amounts to 27.5 percent, while for persons older than 50 years that rate is 28.3 percent. In relation to the educational structure, the total number of people with no qualifications and low-skilled (I and II level) on the NES register is 186,817 which represents nearly a third (33 percent) of the total number of unemployed persons. People with the secondary level of education (III - V grade) represent 51 percent, while the share of persons with higher education (VI - VIII level) is only 16 percent. More than 387,000 persons, or 68 percent have been unemployed longer than 12 months, which puts them in a category of long-term unemployment.

This “Norway for You - Serbia” Project intervention is designed to contribute to enhancing social cohesion by increasing employment opportunities and decreasing unemployment in underdeveloped areas of Serbia.

Sector of small and medium enterprises (SME) can be generator of jobs, and “backbone” of economic development.

The SMEs sector represents an important segment of the Serbian economy. It is estimated that SMEs represent 99.8% of active business entities, they provide 2/3 of employment and turnover in non-financial sector, participate with 43.2% in export of non-financial sector, and generate 32% of the Serbian GDP. The average number of employees per SME is 2.4, which indicates one of the key weaknesses of this sector compared to the European Union member countries, where the average number of employees is 4.2. This additionally points out high fragmentation and low competiveness of the Serbian SMEs. Furthermore, every third enterprise operates in retail and wholesale sector, while SMEs in processing industries work in low technological areas, creating low value added products, which in turn means weaker market position and lower profit margins. SMEs are insufficiently export oriented: from the total number of registered SMEs only 4.3% are exporters.5

The SMEs in South and East Serbia have the half of the productivity compared to the Belgrade Region, while those in Šumadija and Western Serbia are around about 70% behind.6 The conditions for the start-up activities and enterprise development are equally uneven with significant differences in the survival rates.

The Project will therefore support the existing and newly registered entrepreneurs and enterprises to increase their productivity and to lowered costs of production which should lead to improvement of their competitiveness on the market and enable creation of new jobs.

The Government’s Economic Reform Programme (ERP)7 recognises progress that Serbia has made to improve business environment and to reduce grey economy. It acknowledges that numerous obstacles remained in place, such as limited access to finances for SMEs and entrepreneurs. It also recognised advancements related to industrial development and establishment of more efficient state system for promotion of investments and export. 

Considering these analysis, the ERP among other recommends further improvement of business environment and incentives to private investments, establishment of schemes to support SMEs, continuation of the public administration reform, and in particular establishment of more transparent and less burdening para-fiscal system.

5 The Strategy for Development of Small and Medium–sized Enterprises, Entrepreneurship, and Competitiveness 2015 – 2020 http://www.privreda.gov.rs/wp-content/uploads/2017/01/Strategija-I-Plan_eng_poslednje.pdf 6 http://www.privreda.gov.rs/wp-content/uploads/2016/09/Izvestaj-O-Stanju-MSPP-2014-25-Decembar-2015.pdf 7 http://www.mfin.gov.rs/UserFiles/File/strategije/ERP%202017-2019(1).pdf

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This approach also provides an opportunity for the applicant to contribute to greater social impact. The evaluation criteria includes assessment of expected impact of the project, including added-value elements, such as, promotion of gender equality and equal opportunities, addressing needs of disabled people and youth and rights of minorities, promotion of anticorruption, impact on environment and climate etc.

3. Objectives of the Call

Overall objective of the Call is to contribute to more balanced socio-economic development in Serbia by increasing employment opportunities and support social cohesion in the less developed areas.

Specific objective of the Call is to contribute to creation of at least 70 jobs through improvement of operations of existing enterprises and establishment of new business entities.

4. Subject of the Call for Proposals

Open Call for Proposals includes two lots:

LOT 1: Support to creation of new businesses

To support establishment of new business entities to be registered as entrepreneurs or in line with criteria of the Call, with an equivalent of up to USD 11,400.00 per grant, for purchasing equipment and services.

LOT 2: Support to improving productivity of the existing businesses and creation of new jobs

To fund improvement of business operations which will result in job creation with an equivalent of up to USD 11,400.00 per grant, for purchasing equipment and services.

Only new equipment is eligible for procurement under this Call along with the related cost of transport, customs and insurance. Of-the-shelf software are considered as equipment.

Provision of services8 contributing to enhancing the quality of existing, or development of new products, increased productivity, supporting development of products with higher added value, enabling introduction of innovations, and facilitating market expansion – optional accounting for maximum of 20% of the grant value.

Both, for LOT 1 and LOT 2, special attention will be given to applications addressing unemployment of youth, woman and vulnerable and marginalised groups.

5. Financial allocation

The overall indicative amount made available under this Call for Proposals is USD 798,000 (in RSD), divided in two lots:

LOT 1: Support to creation of new business – indicative available amount is USD 399,000 (in RSD). Maximum value per grant USD 11,400.00 (in RSD)

LOT 2: Support to improving productivity of the businesses and creation of new jobs – indicative available amount is USD 399,000 in RSD). Maximum value per grant USD 11,400.00 (in RSD)

8 The eligible services under this Call include introduction of international quality standards, certification and attestation of procured equipment, introduction of new technological processes, trainings for usage of the equipment or enhancement of technological processes, branding of products and development of software. The minimum value of requested service should be at least 570 USD per unit.

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The “Norway for You - Serbia” Project reserves right to relocate funds between Lot 1 and Lot 2, depending on the quality of applications.

The “Norway for You” Project does not have an obligation to spend all funds available for this activity and will fund only quality projects that meet specified criteria.

Applicant’s Cost-share

For LOT1 an Applicants’ cost share cash contribution is required in the amount of 10% of the total project eligible costs.

For LOT 2 an Applicants’ cost share cash contribution is required in the amount of 20% of the total project eligible costs.

6. Guidelines for the Applicants – LOT 1

6.1 Core Eligibility Criteria

6.1.1 Applicants1) An applicant9 has to be registered with the National Employment Service at the time of

submitting the Application. Proof of registration within the National Employment Service will be required.

2) Persons from a category of youth, women and vulnerable or marginalised groups are strongly encouraged to apply and their applications will have special consideration during the evaluation process.

3) The applicant must be Serbian citizen, with permanent residency in one of the 91 LSGs where “Norway for You - Serbia” Project is implementing its activities10.

4) The applicant who has received grant or equipment through UNOPS implemented programmes or projects over the past 24 months is not eligible to apply.

5) One applicant can submit only one project proposal. One applicant can be awarded with only one grant.

6.1.2 Business1) Business to be registered for production and/or provision of services will be taken into

consideration, excluding the following categories:

a. Production of controlled substances, including:- tobacco industry- producers of alcoholic drinks (except grape vine producers registered under the

code 11.02 as per Classification of Activities of the Statistical Office of the Republic of Serbia http://www.stat.gov.rs/media/2622/klasifikacija-delatnosti-2010.pdf)

9 The Applicant is a physical person registered with National Employment Service. If approved, the pre-condition for the applicant, in order to receive grant funds, is to register the business entity as the entity will be the grant beneficiary. 10 List of eligible municipalities is available in Section 1. Background.

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- producers of weapons and military equipment- production and trade of oil and petroleum products- organisation of games of chance, lottery and similar activities

b. Execution of construction works (however, production of construction materials is allowed)

c. Traffic and transportd. Tradee. Printing and multiplication of audio and video recordings, including printing services11

f. Production of steel and synthetic fibres and extraction of coalg. Consulting, accounting, marketing and market research services.

2) Only purchase of new equipment (including software, if justified) will be supported, along with the related cost of transport and insurance. Off-the-shelf software is considered as equipment. Procurement of passenger and transportation vehicles is not eligible equipment. The minimum value of requested equipment should be at least USD 570 per unit.

3) Procurement of seeds will be supported with up to 50% of the project value. Also, purchase of raw materials will be supported with up to 20% of the project value.

4) If approved for funding, the applicant must be a full-time employee of the newly registered business and may not be employed elsewhere. The applicant must be actively involved in all aspects of the business on a day-to-day basis.

5) The newly registered business entity must be operational throughout the year and permanent in nature. Proposals to initiate part-time or seasonal businesses will not be considered.

6) The newly registered business entity must be based on the territory of one of the 91 LSGs included in the “Norway for You - Serbia” Project.

7) The business plan must demonstrate a reasonable chance of success. 8) The newly registered business entity must not be an expansion of an existing business12.

6.2 The Project Selection

1) The projects that will be awarded are going to be selected through a competitive process. 2) “Norway for You - Serbia” Project will award only positively evaluated projects.3) The project proposal will be dismissed if it was not submitted according to the requirements and

criteria of this Call, or is incomplete, or is submitted after the deadline. This decision will be final.4) The evaluation list with the evaluation criteria is in the section 6.7 Selection Criteria.

6.3 The Grant AmountsThe minimum value of the grant is USD 3,420 (in RSD) and the maximum value of the grant is USD 11,400 (in RSD).

6.4 Duration of ProjectsPlanned duration of the intervention may not exceed 12 (twelve) months. This period includes registration of the business, procurement and installation of equipment and capturing projected results, as well as the acceptance of the final report.

6.5 The Process 1) Applicant submits project proposal in required format (the list of required documents is in

Section 6.8) and time (see Section 9).

11 This restriction relates to enterprises registered under the group 18 including all sub-groups. The call does not exclude printing services such as production of printing equipment and etc. registered under other business activity codes.12 Activities related to registering new business activities within already registered business entity, activation of inactive or closed business entities will not be supported. In addition, applicant has to register business for its own business activities and not as a part of the already existing business entity.

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2) The Evaluation Team appraises the proposals and informs the candidates on the decisions made.

3) In due time, the candidates whose project proposals are appraised positively are being invited to an interview with the Evaluation Team. The candidate will be expected to justify and verbally elaborate the proposal and to answer additional questions asked by the Evaluation Team.

4) The grantee secures functional premises for the business, in accordance with the line law. If rented, a contract for renting the premises (or letter of intention) must be submitted.

5) Only after this stage is completed, the final decision on who the actual awardees are will be made.

6) The candidate is informed that the grant has been approved. Only then, the grantee starts with registration process with the Serbian Business Registers Agency (SBRA) (the costs of the registration will be paid by the grantee and cannot not be considered as the grantee’s financial contribution) and registers as full-time employee.

7) The grantee signs the contract with UNOPS/”Norway for You - Serbia” Project.8) In line with the UNOPS procurement rulebook provided by the “Norway for You - Serbia” Project,

grantee procures equipment and services according to the specification provided during application process (see below for the list of necessary documentation).

9) The grantee starts with the business and registers full-time employee(s). 10) The grantee provides the “Norway for You - Serbia” Project auditors at any time full insight in the

way the project is implemented and business is carried out and managed.11) The grantee submits final report on the status of the business not later than 1 December 2020.

6.6 Non-eligible Activities and CostsFollowing activities and expenditures will not be considered eligible:

1) Purchase of expendable materials13, as well as passenger and transportation vehicles (e.g. tractors etc.)

2) Renting, constructing or renovating business premises3) Costs aimed at covering any kind of existing debts or losses, accrued bank interests, or penalties4) Costs already covered by other sources of funding.5) Travel, catering, scholarships and/or training services costs not founded in project rationale.6) Research or promotional activities, not founded in project rationale.7) All costs originating before the project beginning. 8) Operational costs (costs of fuel, land-line/mobile telephone, electricity and public heating and

etc.).

6.7 Selection Criteria Proposals will be selected based on the following:

Criteria Criteria Description Maximum points

Relevance of the business idea

(25)

Subject of the business idea Is the business idea well defined? Are planned activities clear and achievable? Does the proposal envisage the production?

Potential market for the business idea Is there a need for this product/service according to the market

analysis? Client/customer identification, selling strategy- and competition

analysis are well defined?

555

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13 Expendable materials consider office supplies, spare parts or other consumables of low value that lose their identity after regular use.

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Capacities for implementation of the business

idea(10)

Human resource capacities Does the applicant have sufficient skills/ experience related to the

business idea that was applied with?

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Sustainability of the business

(15)

Sustainability Sustainability will be assessed through the applicant’s ability to use and maintain the equipment and achieve the set targets in a post project period. The following factors will be considered:

Will the applicant have sufficient technical expertise to maintain equipment operational and in use?

Will the applicant have sufficient funding to maintain the equipment and cover other costs deriving from its use (e.g. maintenance, repairs, tests, insurance, and tax)?

What will be the impact on environment/climate (e.g. energy consumption, waste quantities, recycling)14

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5

5

Actual and potential job

creation(25)

Actual job creation15

Maximum points will be awarded for projects whose business plans clearly show creation of additional new jobs during the lifetime of the project: 10 points for 1 new job, 20 points for 2 or more new jobs.

Potential job creation Projects with a longer-term impact on employability will be

awarded with additional points. Maximum points will be awarded for projects whose business plans show clear potential for creation of new jobs within a 3-year period: 3 points for 1 potential new job, 5 points for 2 or more potential new jobs.

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Social Impact(15)

Social impact Is the applicant a person belonging to a category of youth, women

and vulnerable or marginalised? Does the proposal envisages employment or other benefits for

youth, women and vulnerable or marginalised persons? Whether the applicant will register and run business in rural area? What will be impact on respect of human rights, gender equality

and anti-corruption?

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Budget and costs-effectiveness

(10)

Budget Is pricing policy realistic and satisfactory?

Cost-effectiveness An assessment of cost-effectiveness will take into account the

benefits arising from the activities compared to the projected budget of the activity. More specifically, the assessment will include ratio between “Norway for You” Project investment and number of new jobs created.

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Only the applications that have been given a total score of a minimum 70 points will be considered for the award.

14 The projects must be environmentally friendly in terms of compliance with the current environmental policy. Thus, ecological impact will be assessed through a scope wider than the minimum legal requirements 15 Creation of one full-time job is mandatory and it includes self-employment of an applicant. In the category “Actual job creation” points will be awarded only for additional new jobs.

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The “Norway for You - Serbia” Project reserves the right to conduct a site validation visit, to validate information related to applicants’ eligibility, management and administrative capacity of the applicant as well as to validate the project proposal and data provided by the applicant. A site validation visits may include meetings with applicant and other relevant persons and visits to any part of the premises/sites for the purposes related to the application.

6.8 Documentation to be submittedThe documentation has to be submitted in Serbian language, and must contain the following:

1) Filled-in Project Proposal Submission Form (Annex 1) with signature of the applicant, scanned and transferred into PDF format

2) Filled-in Application Form (Annex 2) in the original MS Office Word format and an identical copy with signature of the applicant, scanned and transferred into PDF format

3) Detailed Project Budget Proposal (Annex 3), in Excel format and an identical copy with signature of the applicant, scanned and transferred into PDF format. Please note that all purchases that are to be made by funds provided through the “Norway for You - Serbia” grant must be budgeted without VAT, i.e. – please list the amounts in the budget accordingly. Please list what you expect to be purchased through the “Norway for You - Serbia” grant funds and what would be your contribution (e.g. raw materials, etc.). Please note that your contributions to the project realisation must include VAT.

4) The Co-funding Statement (Annex 4)5) Detailed technical specifications for the equipment or services requested in the proposal (e.g.

purpose, make, model, validity of the offer, delivery time etc.) with the price offer (without VAT) from minimum one supplier. If it is not possible for you to obtain specific price offer, please submit price benchmarking with the market analysis on availability of the required technical items. The Project does not have any specific form for this file. Only new equipment can be purchased.

6) Printed ID card or photocopy of the first page of the passport 7) Proof that the applicant is registered with the National Employment Service 8) The applicant’s CV 9) Credit Bureau Report of the applicant 10) A certificate that no criminal proceedings are conducted against the applicant and that no

investigation has been launched, issued after the date of publication of the Public call – 21 May 2019 (issued by the competent Basic Court)

11) Certificate that the applicant is not criminally convicted, issued after the date of publication of the Public call – 21 May 2019 (issued by the local unit of Police Administration of the Ministry of Interior Affairs)

12) Signed Administrative checklist (Annex 5).

The applicant must have all requested forms filled out appropriately. Insufficient information or failure to provide inputs for requested boxes in the attached forms will render the application ineligible for further processing and the application will be dismissed.

Before signing the contract with UNOPS the grantee will need to submit following administrative documents:

1. Certified photocopy of the registration documents with the SBRA (APR) 2. Certified photocopy of the assigned PIB 3. Certified photocopy/-ies of registration(s) as the full time employee(s) 4. Certified copy of the ownership of the premises, or certified copy of the lease contract for

the premises 5. Statement that applicants is not using incentives on the same grounds from other

institutions or donors during the period of implementation of activities (Annex 6) 6. Administrative checklist signed (Annex 7)

“Norway for You” Project retains the right to request additional documents, if need be.

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7. Guidelines for the Applicants – LOT 2

7.1 Core Eligibility Criteria7.1.1 Registration Entrepreneurs and Companies (hereafter ‘Enterprises’)16 registered at the Serbian Business

Registers Agency (SBRA) and classified into Micro and Small Companies17 in accordance with the financial statements for 201818

Enterprises registered on the territory of the 91 LSGs19 Enterprises established between 1 January 2014 and 31 December 2018 for an unlimited

duration and with an active status in SBRA20

Enterprises registered for production or services, excluding the following categoriesa. Production of controlled substances, including:

- tobacco industry, - producers of alcoholic drinks,- producers of weapons and military equipment,- production and trade of oil and petroleum products- organization of games of chance, lottery and similar activities

b. Execution of construction works (however, production of construction materials is permitted)

c. Traffic and transportd. Tradee. Printing and multiplication of audio and video recordings, including printing servicesf. Production of steel and synthetic fibres and extraction of coalg. Consulting, accounting, marketing and market research services

7.1.2 Ownership The enterprise has a majority domestic ownership21

The enterprise has a majority private ownership

7.1.3 Number of employees At least 1 employee (on the date of the publishing of the Call). If the owner is full-time employee

of the enterprise, this criteria is met.

7.1.4 Finances The enterprise has a net profit on the date 31 December 201822

The enterprise does not have negative equity

16 Company is defined by the Law on companies ("Official Gazette of the Republic of Serbia" No. 36/2011, 99/2011, 83/2014 and 5/2015) 17 Entrepreneurs, Micro and Small Enterprises as defined by the Article 6 of the Law on Accounting available at http://www.mfin.gov.rs/UserFiles/File/zakoni/2013/ZAKON%20O%20RACUNOVODSTVU.pdf 18 Source of information: Statistical Annex for 2018. 19 List of eligible LSGs is provided in Section 1 of this document 20 Source of information: Certified photocopy of the registration documents with the Serbian Agency for business registration (SRBA)21 A minimum of 51% of the domestic private ownership is required. Sources of information: For entrepreneurs: Certified photocopy of the registration documents with the Serbian Agency for business registration (SRBA) and photocopy of a personal ID card; For companies: Constitutive Act of a Company (Decision on Incorporation or Memorandum of Association with all amendments issued), Certified photocopy of the registration documents with the Serbian Agency for business registration (SRBA)/ “United Registration Application” (Jedinstvena registraciona prijava osnivanja) for SRBA or and photocopy of a personal ID card for a domestic natural person, a photocopy of a passport for foreign person 22 Source of information: Income Statement (Profit and Loss Account) and Balance Sheet for 2018

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The enterprise is not in bankruptcy or liquidation proceeding The enterprise is regularly paying its obligations towards employees and has no outstanding

debt for social contributions The enterprise is regularly paying due taxes to both local and national tax offices23

The bank accounts of the enterprise were not blocked due to the unpaid obligations for a period longer than 40 days during the year 2018

The bank accounts of the enterprise were not blocked (0 days) due to the unpaid obligations during the year 2019

7.1.5 Legal issues The owner(s) and responsible persons of legal entity have not been criminally convicted or under

on-going criminal investigation24

The enterprise has not been issued with prohibition of performing their activities within two years before submitting the application25

Is not using incentives on the same grounds26 from other institutions or donors during the period of implementation of activities27

The enterprise owns business premises or has a valid long-term leasing agreement The enterprise is not producing anything that infringes copyright, trade mark or intellectual

property laws

7.1.6 Other Purpose of provisioning of equipment is in line with the current business activity Only new equipment is eligible for procurement under this call along with the related cost of

transport, customs and insurance. Of-the-shelf software are considered as equipment. The minimum value of requested equipment should be at least 1,140 USD per unit.

The applicant who has received grant or equipment through UNOPS implemented programmes or projects over the past 24 months are not eligible to apply.

One application per applicant can be submitted. Two or more companies with the same owner can also submit only one application.

7.2 The Project Selection1. The projects that will be awarded are going to be selected through a competitive process. 2. “Norway for You - Serbia” Project will award only projects evaluated as best.3. The project proposal will be dismissed if it was not submitted according to the requirements

and criteria of this Call, or is incomplete, or is submitted after the deadline. This decision will be final.

4. The evaluation list with the evaluation criteria is in the section 7.7 Selection Criteria.

7.3 The Grant AmountsThe minimum value of the grant is USD 5,700 (in RSD) and the maximum value of the grant is USD 11,400 (in RSD).

23 Source of information: The certificate of the competent tax administration that the applicant has paid all tax obligations until the date of publication of the call (certificate must not be issued before date of publication of the call) - original or certified copy of the certificate24 Source of information: The certificate that owner(s) and responsible person of legal entity have not been criminally convicted or under criminal investigation – original or certified copy of the certificate 25 Source of information: The certificate that the applicant has not been issued with executive measure of prohibition of performing their activities within two years before submitting the application 26 This includes incentives for procurement of equipment and introduction of services as requested from the Project. The applicant may be eligible to use incentives from the National Employment Service for engagement of new employees, for example27 Source of information: Statement that the applicant is not using incentives on the same grounds from other institutions or donors during the period of implementation of activities

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7.4 Duration of ProjectsPlanned duration of the intervention may not exceed 12 (twelve) months. This period includes procurement and installation of equipment, registration of full time employee(s) and capturing projected results, as well as the acceptance of the final report.

7.5 The Process 1) Applicant submits project proposal in required format (the list of required documents is in

Section 7.8) and time (see Section 9). 2) The Evaluation Team appraises the proposals and informs the candidates on the decisions

made. 3) In due time, members of the Evaluation Team will pay filed visit to legal entities, whose

applications were positively assessed. In exceptional cases, applicant may be invited to an interview with the Evaluation Team. The candidate will be expected to justify and verbally elaborate the proposal and to answer additional questions asked by the Evaluation Team.

4) The applicant secures functional premises for the business, in accordance with the line law. If rented, a contract (or letter of intent) for renting the premises must be submitted to the Project.

5) Only after this stage is completed, the final decision on who the actual awardees are will be made.

6) The candidate is informed that the grant has been approved. 7) The grantee signs the contract with UNOPS/”Norway for You - Serbia” Project.8) In line with the UNOPS procurement rulebook provided by the “Norway for You - Serbia” Project,

grantee procures equipment according to the specification provided during application process (see below for the list of necessary documentation).

9) The grantee starts with the business and registers full-time employee(s)10) The grantee provides the “Norway for You - Serbia” Project auditors at any time full insight in the

way the project is implemented and business is carried out and managed.11) The grantee submits final report on the status of the business not later than 1 December 2020.

7.6 Non-eligible Activities and CostsFollowing activities and expenditures will not be considered eligible:

1) Purchase of raw-materials or any other expendable materials28, as well as passenger and transportation or other type of vehicles (e.g. tractors etc.)

2) Renting, constructing or renovating business premises3) Costs aimed at covering any kind of existing debts or losses, accrued bank interests, or penalties4) Costs already covered by other sources of funding5) Travel, catering, scholarships and/or training services costs not founded in project rationale6) Research or promotional activities, not founded in project rationale7) All costs originating before the project beginning. 8) Operational costs (costs of fuel, land-line/mobile telephone, electricity and public heating and

etc.)

7.7 Selection Criteria

Proposals will be selected based on the assessment of the following: Criteria Criteria Description Maximum

pointsSubject of the business idea

Is the business idea well defined? Are planned activities clear and achievable?

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28 Expendable materials consider office supplies, spare parts or other consumables of low value that lose their identity after regular use.

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Relevance of the business

idea(25)

Does the proposal enhance quality of existing or envisage development of new products?

Potential market for the business idea Is there market potential for the business idea? Is the market

clearly assessed? Up to five points will be awarded to projects with proven market potential in local and international markets, based on market analysis.

Client/customer identification, selling strategy- and competition analysis are well defined?

5

5

5

Capacities for implementatio

n of the business idea

(10)

Human resource capacities Does the project team have experience and expertise to

realise the business idea? 10

Sustainability of the business

(15)

Sustainability Sustainability will be assessed through the applicant’s ability to use and maintain the equipment and achieve the set targets in a post project period. The following factors will be considered:

Will the applicant have sufficient technical expertise to maintain equipment operational and in use?

Will the applicant have sufficient funding to maintain the equipment and cover other costs deriving from its use (e.g. maintenance, repairs, tests, insurance, and tax)?

What will be the impact on environment (e.g. energy consumption, waste quantities, recycling)29

5

5

5

Actual and potential job

creation (25)

Actual job creation30

Maximum points will be awarded for projects whose business plans clearly show creation of additional new jobs during the lifetime of the project: 10 points will be awarded for creation of 1 additional job and 20 points will be awarded for creation 2 or more jobs.

Potential job creation Projects with a longer-term impact on employability will be

awarded with additional points. Maximum points will be awarded for projects whose business plans show clear potential for creation of new jobs within a 3-year period: 3 points for 1 potential new job, 5 points for 2 or more potential new jobs.

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5

Social impact31 (15)

Social impact Does the applicant have production facilities in rural area? Is the owner of the applicant enterprise a person belonging

to a category of youth, women and vulnerable or marginalised?

Does the proposal envisages employment or other benefits for youth, women and vulnerable or marginalised persons?

Does the proposal include corporate social responsibility activities i.e. measures that make a positive impact on the local communities?

What will be impact on respect of human rights, gender equality and anti-corruption?

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3

3

3

29 The projects must be environmentally friendly in terms of compliance with the current environmental policy. Thus, ecological impact will be assessed through a scope wider than the minimum legal requirements 30 Creation of one full-time job is mandatory. In the category “Actual job creation” points will be awarded only for additional new jobs. 31 Social impact parameters will also be assessed based on past performance as well as projections

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Budget and cost-

effectiveness (10)

Cost Share Contribution The minimum cost share contribution is 10% of the total

project value. Applicants with cost share contribution higher than the required will be awarded with additional points. Cost share contribution may be up to 49% of the total project value.

Cost-effectiveness An assessment of cost-effectiveness will take into account

the benefits arising from the activities compared to the projected budget of the activity. More specifically, the assessment will include ratio between “Norway for You - Serbia” Project investment and number of new jobs created.

5

5

Only the applications that have been given a total score of a minimum 70 points will be considered for the award.

The Project reserves the right to conduct a site validation visit, to validate information related to applicants’ eligibility and assess past performance, management and administrative capacity of the applicant as well as to validate the project proposal and data provided by the applicant. A site validation visits may include meetings with responsible persons and key operational and business personnel and visits to any part of the premises/sites for the purposes related to the application.

7.8 Documentation to be submitted

The applicant must submit the following documents in Serbian language: Filled-in Proposal submission form (Annex 1) with signature of the responsible person and stamp

of the applicant’s enterprise, scanned and transferred into PDF format. Please note that all purchases that are to be made by funds provided through the “Norway for You - Serbia” grant must be budgeted without VAT, i.e. – please list the amounts in the budget accordingly. Please list what you expect to be purchased through the “Norway for You - Serbia” grant funds and what would be your contribution. Please note that your contributions to the project realisation must include VAT.

Statement that applicants is not using incentives on the same grounds from other institutions or donors during the period of implementation of activities (Annex 3)

The Co-funding Statement (Annex 4) Certified photocopy of the registration documents with the Agency for business registration

(APR) Photocopy of the assigned PIB Balance sheet and Income statement for years 2018, 2017 and 2016.

Entrepreneurs with simple bookkeeping who do not keep the Balance sheets, must submit the Income statement only; Entrepreneurs who are in the flat-rate taxation system, instead of the balance sheet and income statement, must submit Turnover according to the current account (accounts) registered in banks, for each business year and Decision on flat-rate taxation.

Statistical annex for years 2018, 2017 and 2016.Entrepreneurs with simple bookkeeping must submit a document that proves the average number of employees, signed and stamped.

Certificate on payment of all obligations based on public revenues, issued after the date of publication of the Public call – 21 May 2019

Certificate on payment of all obligations based on local public revenues, issued after the date of publication of the Public call – 21 May 2019

A certificate that no criminal proceedings are conducted against the owners and responsible persons of the enterprises and that no investigation has been launched, issued after the date of publication of the Public Call – 21 May 2019

A certificate that the owners and responsible persons of the business entity are not criminally convicted, issued after the date of publication of the Public Call – 21 May 2019

Certificate that no prohibition has been pronounced to the business entity on performing activities during the period from two years, issued after the date of publication of the Public Call 21 May 2019

At least one pro-forma invoice for provision of requested equipment and/or service

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Detailed technical specification of requested equipment and/or consultancy Printed ID card or photocopy of the first page of passport for all owners of the business entity If applicable, the market research

8. Cross-cutting Issues

Four crosscutting issues in Norway’s development policy are human rights, gender equality, environment and climate and anti-corruption. The Applicant should thus consider and elaborate on how their project will enhance respect of human rights, gender equality and anti-corruption, while also describing how its implementation will limit potential impacts on environment and climate, with particular emphasis on sustainability and resilience.

9. Instructions for Submission of the Documentation and the Deadline

The Application documents must be submitted in the following manner:

Exclusively via email in PDF format (signed, stamped and scanned) and in original editable format, while using Word or Excel. Signed, stamped and scanned versions must contain exactly the same application documents as the electronic versions in original editable format. In case of discrepancies, signed, stamped and scanned version will prevail.

The total email size of the application should not exceed 17 MB, as that is the maximum allowed email message size by the UNOPS server. If the application is larger than 17 MB, documents should be sent in series of emails, with each email not exceeding 17 MB size thresholds. Each part of the application should be numbered in the email subject field.

Applications must be submitted to the email address: rsoc.applications@unops.org. Automatic notification of the delivery would follow upon successful submission of email application.

The email application must be sent with the email subject consist of the reference number of the call for proposals (CFP 04-2019) including the number of the Lot (Lot 1 or Lot 2) and the name of the applicant;

The deadline for the submission of applications is 15 August 2019. Applications must be received before midnight-local time on the closing date of the Call for Proposal.

Applicants are kindly advised to submit the application timely, as late deliveries due to slow internet connection or other network/hardware/software related problems may lead to disqualification of the application. Only applications received by UNOPS mail server before the deadline will be accepted.

Requests for clarification should be submitted to the email address below: rsoc.cfp.clarifications@unops.org by 2 August 2019 latest.

Applications sent by any other means (e.g. by fax or by post or by hand delivery) or delivered to other emails different from the ones stated in the CFP will be rejected. Hand-written applications will not be accepted.

UNOPS reserves the right to request the original versions of submitted documents from applicants where/when original documentation is required by the Evaluation Team.

10. Branding and Visibility Requirements

The grantee must take all necessary steps to promote the Kingdom of Norway financial contribution to the Action. These activities include but are not limited to clear visual identification of the action at site, partaking in various media activities and events including activities designed to raise the awareness of specific or general audiences of the overall Norway support to Serbia. These include but are not limited to on-camera and other media interviews, participation in high level events and relevant on-line and in person surveys on Project related topics. In these applicants must comply with communications and visibility requirements as set by “Norway for You - Serbia” Project.

The Project will provide the grantees with adequate guidelines and other information prior to beginning of the project implementation.

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11. Monitoring, Reporting and Evaluation

The grantees must monitor their own projects and make relevant records, including photos if need be.

The grantee will be expected to submit the final report on the carried out activities at the end of the project.

“Norway for You - Serbia” Project will monitor implementation and audit grantees. The grantee can be audited at any time during the project implementation and subsequent actions may be taken according to the assessment’s findings.

12. Additional Considerations

The grantee will be obligated to keep all the records related to the project implementation for one year after the project completion.

The grantee cannot sell or in any other way transfer ownership over the equipment obtained through the implementation of the project for at least two years after completion of the project.

When vulnerable and marginalised groups are involved in project implementation, the applicant must clearly indicate how these groups will be involved in and/or benefit from the project.

Selected beneficiaries will be required to provide full project proposal and budget forms in English language.

13. Documents Attached to this Call (List of Annexes)

LOT1:

Annex 1 – Project Proposal Submission Form Annex 2 – Application Form Annex 3 – Project Budget Annex 4 – Co-Funding Statement Annex 5 – Administrative Checklist Annex 6 – Statement on Incentives form Other Institutions and Donors Annex 7 – Administrative checklist after registration (to be completed in the second phase for the registration of the business)

LOT2:

Annex 1 – Project Proposal Submission Form Annex 2 – Application Form Annex 3 – Statement on Incentives from Other Institutions and DonorsAnnex 4 – Co-Funding Statement Annex 5 – Administrative Checklist

14. Indicative Timeframe

Activity Timeframe/ DeadlinePublishing the Call for Proposals 21 May 2019Implementation of the Info Sessions for the Call In the period from 3 to 20 June

2019 and 29 July to 2 August 2019

Deadline for Submission of the Project Proposals 15 August 2019 Evaluation of the Project Proposals October 2019*Interviews / field visits October – November 2019Information on the Evaluation Results November 2019Signing of Grant Agreement December 2019

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*Duration of evaluation process may vary, depending on the number of received applications.

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