Guidelines for Applicants for Applicants(1).pdf · Guidelines for Applicants for the 3 rd CfP of the HU-HR IPA CBC Programme 2007-2013 _____ 6 (e.g. the Hungary-Croatia Pilot Small

Guidelines for Applicants

of the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013

CCI Number: 2007 CB16 IPO 003

for the third Call for Proposals launched on 22 November 2011

Reference number: HUHR/1101

Approved by JMC decision No 32/2011 (27.10)

Guidelines for Applicants for the 3rd CfP of the HU-HR IPA CBC Programme 2007-2013 ______________________________________________________________________________

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LIST OF CONTENTS

1. INTRODUCTION....................................................................................................5

1.1 PROGRAMME BACKGROUND ......................................................................5

1.1.1 The Hungary-Croatia IPA Cross-border Co-operation Programme ............5

1.1.2 The first Call for Proposals.........................................................................6

1.1.3 The second Call for Proposals ...................................................................7

1.2 BACKGROUND OF THE GUIDELINES FOR APPLICANTS ..........................7

1.3 HOW TO USE THE GUIDELINES FOR APPLICANTS .................................11

1.3.1 The system of documents for the third Call for Proposals (the CfP).........11

1.3.2 The structure of the present Guidelines ...................................................13

1.4 STEPS TOWARDS A ‘GREEN PROGRAMME’ ............................................15

2. SUBJECT OF THE CALL FOR PROPOSALS ....................................................17

2.1 ELIGIBLE ACTIONS AND AVAILABLE FUNDING OF THE CALL FOR PROPOSALS.......................................................................................................18

2.2 FINANCING OF PROJECTS .........................................................................20

3. ELIGIBILITY RULES ...........................................................................................28

3.1 ELIGIBILITY OF PROJECT PARTNERS / LEAD BENEFICIARIES..............28

3.1.1 Eligible Project Partners / Lead Beneficiaries...........................................28

3.1.1.1 Legal status.......................................................................................28

3.1.1.2 Operational background ....................................................................29

3.1.1.3 Geographical location........................................................................29

3.1.1.4 Professional and financial background..............................................31

3.1.2 Exclusion criteria......................................................................................32

3.1.3 Summary .................................................................................................33

3.1.4 Eligibility of partnerships ..........................................................................34

3.1.4.1 The Lead Beneficiary ........................................................................35

3.1.4.2 The Project Partners .........................................................................36

3.1.4.3 Project Partners from Adjacent Regions............................................37

3.1.4.4 Associated Partners ..........................................................................38

3.1.5 Balanced partnerships .............................................................................39

3.2 ELIGIBILITY OF ACTIVITIES ........................................................................39

3.2.1 Priority 1 – Area of intervention 1.1 Sustainable and Attractive Environment .....................................................................................................40

3.2.2 Priority 1 – Area of intervention 1.2 Sustainable Tourism in the Mura-Drava-Danube River Area.................................................................................46

3.2.3 Priority 2 – Co-operative Economy and Intercommunity Human Resources Development ....................................................................................................47


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3.3 ELIGIBILITY OF COSTS................................................................................56

3.3.1 General rules ...........................................................................................56

3.3.1.1 Eligibility period of expenditure..........................................................58

3.3.1.2 Geographical eligibility of expenditure...............................................59

3.3.2 Eligibility by category of costs ..................................................................59

3.3.2.1 Preparation costs ..............................................................................60

3.3.2.2 Staff cost ...........................................................................................61

3.3.2.3 Travel and accommodation ...............................................................63

3.3.2.4 Service ..............................................................................................65

3.3.2.5 Equipment/Supply .............................................................................67

3.3.2.6 Investment/Works .............................................................................67

3.3.2.7 Administrative costs ..........................................................................68

3.3.3 Ineligible expenditure ...............................................................................70

3.3.4 Special eligibility rules for costs in Croatia ...............................................71

3.3.5 Revenues generated by the projects........................................................72

4. SUBMISSION RULES .........................................................................................73

4.1 SUBMISSION TECHNICALITIES ..................................................................73

4.1.1 Content of the application package..........................................................73

4.1.2 Language of the CfP and of the project proposals ...................................74

4.1.3 Submitting the project proposals..............................................................74

4.1.4 Approval of data management / Privacy policy ........................................76

4.1.5 Completeness of the project proposal......................................................76

4.1.6 Rejection of the project proposal..............................................................78

4.1.7 Handling of complaints.............................................................................80

4.2 DOCUMENTS TO BE SUBMITTED...............................................................81

4.2.1 List of documents to be submitted ...........................................................82

4.2.1.1 List of documents to be submitted alongside the printed AF .............83

4.2.1.2 Documents to be submitted on the electronic data device (CD-Rom, DVD or pen drive) .......................................................................................103

4.2.2 Details on documents to be submitted in case of projects with works components ....................................................................................................104

4.2.3 Ownership issues of land and buildings subject to works components of projects ...........................................................................................................106

4.2.4 Documents that need only to be submitted by the time of contracting....110

4.3 CROSS-BORDER CO-OPERATION CRITERIA..........................................112

4.4 HORIZONTAL POLICIES ............................................................................121

4.5 STATE AID RULES .....................................................................................123

4.5.1 Background............................................................................................124

4.5.2 The definition of SME (small and medium-sized enterprise) ..................125

4.5.3 Applicable State aid rules ......................................................................126


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4.5.3.1 Regional investment and employment aid.......................................126

4.5.3.2 Training aid .....................................................................................128

4.5.3.3 Aid for research and development projects .....................................129

4.5.3.4 Aid for technical feasibility studies...................................................132

4.5.3.5 Aid to young innovative enterprises.................................................132

4.5.3.6 Aid for disadvantaged and disabled workers ...................................133

4.5.3.7 Cultural aid......................................................................................135

4.5.3.8 De minimis aid.................................................................................136

4.5.3.9 Services of General Economic Interest (public service), SGEI ........137

4.5.3.10 Legal background..........................................................................139

4.5.4 State aid rules for Croatia ......................................................................139

4.6 PROJECT DEVELOPMENT ASSISTANCE.................................................140

4.6.1 Information days ....................................................................................140

4.6.2 Partner search forum .............................................................................141

4.6.3 JTS and JTS Information Point ..............................................................141

5. PROJECT SELECTION.....................................................................................143

5.1 Description of the selection process ........................................................143

5.1.1 Submission ............................................................................................143

5.1.2 Formal and eligibility assessment ..........................................................143

5.1.3 Completion of documents ......................................................................144

5.1.4 Quality assessment................................................................................144

5.1.5 Clarification during quality assessment ..................................................144

5.1.6 The scoring of project proposals ............................................................145

5.1.7 Assessment of the conformity with State aid rules .................................145

5.1.8 Decision.................................................................................................145

5.1.9 Contracting ............................................................................................146

5.1.10 Correspondence ..................................................................................146

6. PROJECT IMPLEMENTATION .........................................................................146

6.1 CONTRACTING PROCEDURES.................................................................146

6.1.1 Contracting procedure for the Community funding.................................147

6.1.2 Contracting procedure for the state contribution in Hungary ..................148

6.1.3 State contribution in Croatia...................................................................149

6.2 IMPLEMENTATION RULES ........................................................................150

6.2.1 Reporting and payment procedures.......................................................150

6.2.1.1 Regular project reports....................................................................150

6.2.1.2 Exceptional reports .........................................................................153

6.2.1.3 The decommitment rule...................................................................153

6.2.2 Procurement rules for projects ...............................................................154

6.2.3 Communication requirements towards projects .....................................162

6.3 DESCRIPTION OF THE MONITORING AND INFORMATION SYSTEM.....164


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7. LIST OF ABBREVIATIONS...............................................................................166

8. LIST OF TABLES ..............................................................................................167

APPENDIX 1 – Eligible Project Partners / Lead Beneficiaries in Croatia .........168

APPENDIX 2 – Types of establishing documents..............................................169

APPENDIX 3 – Recommended content for feasibility assessment ..................176

1. INTRODUCTION

1.1 PROGRAMME BACKGROUND

1.1.1 The Hungary-Croatia IPA Cross-border Co-operation Programme The Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013 (hereinafter referred to as the Programme) operates within the 2007-2013 European Union financial framework as a so-called IPA programme. The Instrument for Pre-accession Assistance (established by Council Regulation No 1085/2006 and regulated by Commission Regulation (EC) No 718/2007) is implemented through five components, one of them being Cross-border Co-operation. This component has the objective of promoting good neighbourly relations, of fostering stability, security and prosperity in the mutual interest of all countries concerned, and of encouraging their harmonic, balanced and sustainable development. Within the above-mentioned component the Republic of Hungary and the Republic of Croatia co-operate relying on the framework of a common Programme and based on a joint institutional background. The two countries, having undertaken a joint strategic planning effort, laid down their development priorities in a joint programming document (hereinafter referred to as the Programme Document). Its strategy was approved by the Task Force, responsible for drafting, on 11 April 2007. The Programme Document received the endorsement of the European Commission on 13 March 2008 by Decision Ref. No C(2008)911. The Programme can be regarded as the successor of the Slovenia-Hungary-Croatia Neighbourhood Programme 2004-2006 for the Hungarian-Croatian cross-border region in the 2007-2013 EU financial perspective and as such it builds on the initiatives and results of the Neighbourhood Programme, as well as on those of previous cross-border PHARE programmes between the two Participating Countries


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(e.g. the Hungary-Croatia Pilot Small Projects Fund 2002 and 2003 and the PHARE External Border Initiative). The vision of the Programme Document is to turn the Hungarian-Croatian cross-border region into a successful co-operation region of joint heritage and, as the Programme slogan states, into ‘a cross-border region where rivers connect, not divide’. This vision is supported by the long-term overall objective of facilitating culture and knowledge based development on the basis of the successful management of natural and cultural heritage and intense socio-economic interactions between the two sides of the eligible programme area. The Programme introduces five specific objectives and three priorities (the Technical Assistance Priority is used for the management of the Programme) to aid the implementation of the above goals and objectives in the EU framework 2007-2013. For further information please refer to the Programme Document, available for download in Hungarian / Croatian / English language from the Programme’s website: - http://www.hu-hr-ipa.com/hu/letoltesek/programdokumentum-hu-hr, - http://www.hu-hr-ipa.com/hr/preuzimanje-datoteka/programski-dokument-hu-hr, - http://www.hu-hr-ipa.com/en/download/rogramming-document.

1.1.2 The first Call for Proposals The first Call for Proposals of the Programme was launched on 26 March 2009 with a submission deadline of 24 June. Out of the 67 project proposals received, 49 had a Hungarian Lead Beneficiary and in 18 project proposals the Lead Beneficiary organisation was coming from Croatia. The total amount of Community funding made available under the Call for Proposals was 11.668.388,00 EUR, the aggregated request for Community funding amounted to a total of 16.539.434,96 EUR. The Joint Monitoring Committee of the Programme selected the projects to be co-financed on its meeting held in Varaždin on 9 December 2009, as well as on the meeting on 19 October 2009 in Osijek (Action 1.2.1). The total aggregated Community funding accepted by the JMC for the 42 selected projects was a maximum of 12.311.357,00 EUR. For further information on the first Call for Proposals and the projects awarded subsidy, please refer to the Programme’s website:


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http://www.hu-hr-ipa.com/en/news/first-call-for-proposals-list-of-selected-projects-and-statistics/12.

1.1.3 The second Call for Proposals The second Call for Proposals was launched on 10 June 2010, the submission deadline expired on 15 September. Altogether 94 project proposals were received with 75 proposed Lead Beneficiaries from Hungary and with 19 project partnerships led by a Croatian Lead Beneficiary. The total Community funding in the Call for Proposals amounted to 11.070.000,00 EUR, whereas the aggregated request for Community funding was a total of 23.004.062,56 EUR. The Joint Monitoring Committee selected the projects to be co-financed on its meeting held in Đurđevac on 30 and 31 March 2011. The total aggregated Community funding accepted by the JMC for the 60 selected projects was a maximum of 13.970.247,80 EUR. More information about the second Call for Proposals and the projects awarded subsidy can be found on the Programme’s website: http://www.hu-hr-ipa.com/en/news/second-call-for-proposals-revised-list-and-statistical-data/70.

1.2 BACKGROUND OF THE GUIDELINES FOR APPLICANTS The present document has been elaborated in line with and with respect to the following documents and pieces of legislation: - Programme Document of the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013, endorsed by the European Commission on 13 March 2008 by Decision Ref. No C(2008)911, - Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA), - Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-


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Accession Assistance (IPA) – hereinafter referred to as the IPA Implementing Regulation, - Commission Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund, when specifically referred to, - Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities, - Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the Euro-pean Communities, - Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, - Commission Regulation (EC) No 800/2008 of 6 August 2008 on declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block Exemption Regulation, GBER), - Commission Decision 2005/842/EC of 28 November 2005 on the application of Article 86 (2) of the EC Treaty to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest, - Commission Decision C (2007) 2034 on the ‘Rules and Procedures for Service, Supply and Works Contracts Financed from the General Budget of the European Communities for the Purposes of Cooperation with Third Countries’, - Government Decree No 49/2007 of 26 March 2007 on the national institutions involved in the implementation of certain programmes related to European territorial cooperation funded by the European Regional Development Fund, the Instrument for Pre-Accession, and the European Neighbourhood and Partnership Instrument, (in Hungary)


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- Ministerial Decree of the Minister for Local Self-governments and Regional Development No 34/2007 of 17 November 2007 on the designation of a Hungarian intermediate body for the implementation on certain programmes related to territorial cooperation under the European Regional Development Fund, Instrument for Pre-Accession and the European Neighbourhood and Partnership Instrument, (in Hungary) - Ministerial Decree of the Minister for National Development and Economy No 5/2009 of 18 March 2009 on rules of use and legal titles of State aid under certain programmes related to territorial co-operation, co-financed by the European Regional Development Fund and the Instrument for Pre-Accession in the 2007-2013 programming period, (in Hungary) - Government Decree No 160/2009 of 3 August 2009 on the implementation of certain programmes related to European territorial cooperation, funded by the European Regional Development Fund and the Instrument for Pre-Accession in the programming period 2007-2013, (in Hungary) - Act on the confirmation of the Framework Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia in the framework of the implementation of the assistance under the Instrument for Pre-Accession Assistance (IA-OG 10/2007), (in Croatia) - Financing Agreement between the Government of the Republic of Croatia and the Commission of the European Communities concerning the ‘Hungary-Croatia IPA Cross-border Co-operation Programme’ under the Instrument for Pre-accession Assistance, done at Zagreb and Brussels, on 1 December 2008, (in Croatia) - Act on the confirmation of the Financing Agreement between the Government of the Republic of Croatia and the Commission of the European Communities concerning the ‘Hungary-Croatia IPA Cross-border Co-operation Programme’ under the Instrument for Pre-accession Assistance (IA-OG 10/2009, IA-OG 8/2011), (in Croatia) - Financing Agreement between the Government of the Republic of Croatia and the Commission of the European Communities concerning the ‘Hungary-Croatia IPA Cross-border Co-operation Programme’ under the Instrument for Pre-accession Assistance, signed in Brussels on 18 January 2011 and in Zagreb on 25 March 2011 (the latter date being the date of the entry into force), (in Croatia)


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- Regulation of the scope and the content of responsibilities of the bodies responsible for managing the Instrument for Pre-accession Assistance (OG 34/2008, OG 77/2010, OG 69/2011), (in Croatia) - Decree on the nomination of the persons responsible for managing the Instrument for Pre-accession Assistance (OG 34/2008), (in Croatia) - Decree on amendments to the Decision on the nomination of the persons responsible for managing the Instrument for Pre-accession Assistance (OG 125/2008, OG 6/2009, OG 83/2009, OG 105/2009, OG 14/2010, OG 77/2010, OG 113/2010, OG 72/2011), (in Croatia) - Regulation on the Value Added Tax (OG 149/2009, OG 89/2011), (in Croatia) - Instruction on exercising the customs and tax exemptions based on Article 13 of Annex A to the Framework Agreement between the European Commission and the Government of the Republic of Croatia concerning the participation of the Republic of Croatia in the European Community’s aid programmes, Article 25 Paragraph (1) Point e) and Article 26 Paragraph (2) Points b) and d) of the Framework Agreement between the Government of the Republic of Croatia and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia in the framework of the implementation of the assistance under the Instrument for Pre-Accession Assistance (IPA) (OG 41/2008), (in Croatia) - Law on the regional development of the Republic of Croatia (OG 153/2009), (in Croatia) - Project Implementation Handbook for the Hungary-Croatia IPA Cross-border Co-operation Programme, approved by the Managing Authority on 8 June 2011, - Guidelines for Implementing Information and Publicity Requirements for the Projects in the Hungary-Croatia IPA Cross-border Co-operation Programme (Project Communication Guidelines), approved by the Managing Authority on 7 June 2011. The items of legislation cited above mostly contain rights and duties relevant for programme implementing structures, yet some of them lay down rules also relevant to the project level (e.g. the IPA Implementing Regulation in connection to the


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eligibility of costs). Based on this, Project Partners / Lead Beneficiaries should have a basic knowledge of the legislation governing the cross-border Programme.

1.3 HOW TO USE THE GUIDELINES FOR APPLICANTS The documentation serving the implementation of the Programme has multiple layers and should be read and used in a differentiated way. The present Guidelines for Applicants (hereinafter referred to as the Guidelines) aims at avoiding duplications with other documents of the Programme, thus, in order to get a comprehensive understanding of the Programme’s rules, Project Partners / Lead Beneficiaries are expected to familiarise themselves with the whole set of documents before preparing their project proposals. Please note: The present version of the document is only relevant in connection to the third Call for Proposals under the cross-border Programme. The document is subject to changes without prior notice; eventual modifications will be communicated via the Programme website. Before finalising your project proposal, please visit the website once more for any eventual changes.

1.3.1 The system of documents for the third Call for Proposals (the CfP) a) The Programme Document is the basis on which the cross-border

Programme is to be implemented. Besides providing a thorough situation analysis, the Programme Document formulates the joint strategy of the Hungarian-Croatian border region for the period 2007-2013. Its basic description of the Priorities and Areas of interventions of the Programme presents a stable basis which the individual actions and their eligible activities can build upon. The Programme Document furthermore contains the implementation provisions concerning the programme implementing structures and the description of the main procedures, including project development, selection and implementation.


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Whenever you have a question concerning the strategy or the structure of implementation of the Programme, you should consult the Programme Document to find the answers.

b) The purpose of the present Guidelines is to detail the framework rules and

principles that govern various aspects of programme and project implementation. It comprises chapters about eligibility and about submission technicalities, furthermore it details the selection process and provides insight into project implementation issues.

If you are looking for answers whether your planned project activities and the related costs are eligible, if you would like to familiarise yourself with the rules of the submission of project proposals or if you are interested in basic questions that will arise when managing a future project under the Programme, the Guidelines is the document that will provide you with the necessary information.

c) The Handbook to Tourism Projects (hereinafter referred to as the Handbook)

complements the present Guidelines by detailing aspects relevant for potential project partnerships planning to submit joint tourism development projects. You will find that in some instances the Guidelines refers to certain chapters of the Handbook for specialised and/or more detailed information.

If you are planning a tourism project under Action 1.2.2, 1.2.3, 1.2.4 or 1.2.5, please read the referenced chapters of the Handbook, next to the general rules presented in the Guidelines.

d) The Call for Proposals (hereinafter referred to as the CfP) provides the basis

for the submission of project proposals and for the selection of projects to be co-financed under the Programme.


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The CfP is a concise document that indicates you the amount of funding available under each Action of the Programme, the minimum and maximum size of subsidy, and submission information, among others. Please read it carefully in order to get to know the basic rules of applying.

e) You will find additional documents as annexes either to the Guidelines or to

the CfP. Some of them provide further information (e.g. the sample Subsidy Contract or the assessment grids) and some are necessary to draft your project proposal (see the Application Form (hereinafter referred to as the AF), together with the guidance on how to fill it in properly).

Please use the additional documents and annexes when elaborating your project proposal.

1.3.2 The structure of the present Guidelines The Guidelines consists of the following main parts:

• two chapters with pieces of basic information (Chapter 1-2), • a chapter about eligibility issues (Chapter 3), • a chapter about issues connected to the submission of project proposals

(Chapter 4), • a chapter on project selection procedures (Chapter 5) and • a chapter on project implementation (Chapter 6).

To aid you in browsing the document, the Guidelines has been fitted with a list of contents and a list of abbreviations (Chapter 7).

The information icon (displayed to the left) indicates items recommended for further reading. In every case it provides a reference to either another Chapter of the present Guidelines or to an individual document connected to the Programme where additional relevant information can be found.


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A few basic definitions before you begin to browse the Guidelines:

• Lead Beneficiary: the organisation assuming the leading role in the project partnership. It is selected by the Project Partners from their own ranks. It is responsible for the overall project towards the programme implementing structures, both financially and content-wise. Nevertheless, it also acts as a Project Partner: in connection to its own project part.

To learn more about the role of the Lead Beneficiary, please refer to Chapter 3.1.4.1 of the Guidelines.

• Project Partner: an organisation actively participating in the implementation of a project. It can be located across the border from the Lead Beneficiary (Cross-border Project Partner), it can be operating in the same country as the Lead Beneficiary (Domestic Project Partner) and it can come from the so-called adjacent regions of the eligible programme area (Project Partner from Adjacent Region). The Project Partner has to have its own project part and a budget in the AF corresponding to the activities it implements. Please consider that balanced funding is an important criterion of quality assessment. Please also note that only as many Project Partners can be involved in one project as there are places for them in the AF.

Please consult Chapters 3.1.4.2 and 3.1.4.3 of the Guidelines for more information on the types of partner organisations under the Programme.

• Associated Partner: an organisation that aids the implementation of the project without receiving funding for its related activities. They are mostly professional associations, policy makers and end users.

More detailed rules on the participation and the status of Associated Partners can be found in Chapter 3.1.4.4 of the Guidelines. Please note that only as many Associated Partners can be involved in a given project as there are places for them on AF Sheet 3.


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• Beneficiary: this term relates to all Project Partners / Lead Beneficiaries that receive funding from the Programme. Associated Partners are not be regarded as Beneficiaries since their costs are not eligible under the CfP.

• Project: this term refers to a coherent set of interconnected activities,

directed towards a common goal and necessary to the achievement thereof, implemented by defined actors in a defined timeframe and matched by a corresponding budget. Projects to be implemented in the framework of the cross-border Programme are special in as far as a substantial part of the budget is financed by Community funding. The project activities are described in the AF, along with the Project Partners implementing them. The timeframe is limited by the CfP for every Action of the Programme.

• Project part: a group of activities within the project as a whole, implemented by a defined actor (Project Partner) in a defined timeframe (indicated in the AF) and matched by a corresponding budget (see separate budget tables in the AF). The project part is the responsibility of the Project Partner implementing it, both from a professional and a financial point of view, especially with respect to the fact that each Project Partner is responsible for irregularities in the expenditure which it has declared. For further information on how project parts and projects as a whole are connected, please refer to the rules set in connection to the Lead Beneficiary principle, the organisations participating in the partnership, the eligibility of costs and in connection to project implementation (Chapters 3.1.4, 3.1.1, 3.3 and 6 of the Guidelines, respectively).

1.4 STEPS TOWARDS A ‘GREEN PROGRAMME’ The Programme Document in its vision and strategy (Chapter 4.1) puts great emphasis on the protection of the environment and on environmental sustainability both at programme- and at project level. In order to adapt these goals to the level of the present CfP, the following ideas are introduced to support the environmental consciousness of the project development and submission process.


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Please read the suggestions below and try to consider them as much as possible. The implementing structures of the Programme wish to be partners in the development of environmentally friendly project proposals, therefore you are free and encouraged to add your own innovative solutions to the following line of ‘green thoughts’:

- Please prefer recycled paper to normal, bleached paper – both while preparing your project proposal and while implementing your project.

- Please only print documents of the CfP e.g. the present Guidelines if this is

absolutely necessary. Black and white printing is more advantageous than colour printing. Please be sure to print double-sided.

- The AF contains colours in order to make orientation and use easier. When

submitting your project proposal, it is fine to print the AF and the supporting documents to be produced by you in black and white.

- Please do not print empty pages of the AF which are not relevant to your

project proposal.

- If you copy supporting documents (e.g. establishing document), please try to create double-sided copies.

- Please try to avoid the use of an unreasonable amount of plastic – when

separating parts of your project proposal in the folder/binding, use simple separation sheets instead of putting the different sections into plastic sheet protectors.

- Please consider setting up a selective waste collection system in your

office.

- If you plan partner meetings, workshops, fairs etc. please try to avoid catering using plastic cups and tableware. In general, try to organise events in a way that does not produce much waste.


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2. SUBJECT OF THE CALL FOR PROPOSALS With reference to the amended Chapter 9 of the Programme Document of the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013 and to the Decision of the EC approving the new financial framework of the Programme (both documents still to be accepted by the EC), the Programme will be entitled to an overall amount of 52.433.025,00 EUR1 of Community funding for the period of the 2007-2013 financial perspective. This funding is designated to support activities in the Hungarian-Croatian border region that contribute to the following goals:

• Increasing environmental stability and attractiveness of the Drava valley and surrounding natural and rural areas,

• Creating sustainable joint regional tourism product of the Mura-Drava-Danube zone and in surrounding natural and rural areas,

• Synergetic and co-operative economies of both sides, • Developing and managing common cultural heritage to promote cultural

values, traditions and to develop tourism, • Utilising advantages of intense cultural and educational interaction between

people, educational and civil organisations. Based on these specific objectives, contained in Chapter 4 of the Programme Document, the National Development Agency of Hungary, acting as the Managing Authority of the Programme (hereinafter referred to as the MA) and also as the National Authority in Hungary, furthermore the Ministry of Regional Development, Forestry and Water Management in Croatia, acting as the National Authority in Croatia (hereinafter referred to as the NA), in co-operation with the JTS, launch the third CfP of the Programme.

1 Includes Technical Assistance sources of Priority 3 which are used for the management of the Programme and are thus not available for projects.


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SUSPENSIVE CLAUSE

Please note that the decision-making of the Joint Monitoring Committee on the selection of projects to be supported from the present Call for Proposals is subject to the adoption of the Commission Decision concerning the new financial allocations for the years 2012 and 2013, furthermore it is dependant on the signature of the Amendment to the Financing Agreement between the Government of the Republic of Croatia and the Commission of the European Communities, regarding the same new financial allocations.

2.1 ELIGIBLE ACTIONS AND AVAILABLE FUNDING OF THE CALL FOR PROPOSALS In the frame of the third CfP 21.036.735,00 EUR of Community funding is available to projects to be selected for funding under the cross-border Programme. The above amount is complemented on both the Hungarian and the Croatian side by state contribution according to Chapter 2.2 of the Guidelines. The following table contains basic information on Priority axes, Areas of interventions and Actions. The displayed financial allocations of the CfP are indicative and can be subject to changes depending on the results of the project assessment procedure and on the number and the subsidy needs of the submitted project proposals. Table 1: Indicative budget of the third CfP with amounts in EUR

Priority / Area of intervention / Action Available Community funding (in EUR)

Priority 1 – Sustainable Environment and Tourism 19.021.277,00

1.1 Sustainable and Attractive Environment

1.1.1 Development of landscapes in the Mura-Drava-Danube area and its natural and rural surroundings

1.000.000,00

1.1.2 Environmental planning activities and minor public actions to improve the quality of the environment in the natural areas

366.187,00


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Priority / Area of intervention / Action Available Community funding (in EUR)

1.2 Sustainable Tourism in the Mura-Drava-Danube River Area

1.2.2 Development of infrastructure for active and ecotourism: visitor centres, forest schools, water sport infrastructure, bicycle routes, trekking-hiking paths, rentals

1.2.2 – Component 1: Bicycle paths 8.458.748,00

1.2.2 – Component 2: Development of infrastructure for active and ecotourism in the river border area

6.364.959,00

1.2.3 Thematic routes of cultural heritage 1.572.991,00

1.2.4 Promotion of the river area as a single tourism product 629.196,00

1.2.5 Private investment attraction 629.196,00

Priority 2 – Cooperative Economy and Intercommunity Human Resource Development

2.015.458,00

2.1 Co-operative Economy

2.1.2 Cross-border labour market mobility promotion 300.000,00

2.1.3 Joint research, development and innovation 500.000,00

2.1.4 Joint local planning, strategies, programmes 415.458,00

2.2 Intercommunity Human Resources Development

2.2.1 Cross-border education, training and exchange projects 500.000,00

2.2.3 Bilingualism actions 300.000,00

Total: 21.036.735,00

In the present CfP only the Actions contained in the table above are open to apply for, therefore only those projects can gain support which target one of the


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Actions in the table. One project proposal can target only one Action, although one Lead Beneficiary can submit (and one Project Partner can participate in) more than one project proposal.

For more detailed information on the Actions, their content and the relevant eligible project activities, furthermore for indicative lists of Project Partners / Lead Beneficiaries, please refer to Chapter 3.2 of the Guidelines.

2.2 FINANCING OF PROJECTS The eligible expenditure in the Programme is based on the public expenditure which means that on programme level Community funding and national public funding is counted as the sources of eligible expenditure. Under national public funding, state contribution and own contribution of those entities are calculated which are public or which provide the latter from sources they receive from public law bodies or from associations of one or more regional or local authorities or public law bodies (the state budget, budget of a regional or local government). For projects this will practically mean that – in case of a positive decision on funding – a maximum of 85 per cent of the total eligible public expenditure of the project would be financed from Community funding and the rest from state contribution and from own contribution. The share of state contribution will vary depending on the Participating Country and the share and type of the own contribution to the project, as well as on the applicable State aid rules (on the latter see Chapter 4.5 of the Guidelines and Annex 5, State aid rules per Activity). The share of Community funding will also depend on the applicable State aid rules. Note: Lead Beneficiaries will for the Community funding of the project stipulate a Subsidy Contract with the Managing Authority, for the state contribution part the Lead Beneficiary and each Project Partner individually has to conclude a related Subsidy Contract for the State Contribution with VÁTI Hungarian Nonprofit Ltd. for Regional Development and Town Planning on behalf of the National Development Agency in Hungary, or with the Ministry of Regional Development, Forestry and Water Management in Croatia. The conclusion of the Subsidy Contract for the Community funding is a prerequisite to the stipulation of the subsidy contracts for the state contribution.


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The ratio of own contribution is calculated based on the eligible costs of the given Project Partner budget, that is, the given project part. Community funding may finance expenditure incurred in the projects up to a limit of 20 per cent of the amount of the Community funding to the cross-border programme in NUTS 3 regions or, in the absence of NUTS classification, equivalent areas, adjacent to the eligible areas for the Programme.

The adjacent rule is detailed in Article 97 of the IPA Implementing Regulation.

State contribution in Hungary: In general, all Hungarian Project Partners / Lead Beneficiaries are eligible to receive state contribution, the amount of which will be transferred to them in one amount as an advance payment after the conclusion of the Subsidy Contract for the State Contribution. Rules to calculate state contribution in Hungary for public organisations, in general: 1) In case the Project Partner / Lead Beneficiary belongs to the category of:

- 'központi költségvetési szerv (311-es vagy 312-es gazdálkodási forma kód2,)’,

it does not have any obligation to contribute to the project, therefore 85 per cent would be the ratio of Community funding and 15 per cent that of the state contribution. In cases where own contribution is presented in the project part, the amount of the state contribution will be decreased with the amount of the own contribution. (In case the presented own contribution in the project part is above 15 per cent, the amount of the Community funding – as well as the 85 per cent share – will be decreased.)

2 Forma kódok: ld. 9001/2002. (SK 3.) KSH-közlemény 2. sz. Melléklete.


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2) In case the Project Partner / Lead Beneficiary has the following status:

- ‘államháztartás költségvetéséből finanszírozott nem központi költségvetési szerv (3-mal kezdődő gazdálkodási forma kóddal rendelkező szerv, kivéve a 311-es vagy 312-es gazdálkodási forma kóddal rendelkezőket)’; or

- ‘561-es vagy 562-es gazdálkodási forma kód szerinti szervezet‘; or - ‘a költségvetési szervek gazdálkodására vonatkozó szabályokat

alkalmazó, 5-tel vagy 6-tal kezdődő gazdálkodási forma kóddal rendelkező, nem költségvetési szervként működő jogi személy, amennyiben a pályázat során felhasználni tervezett önerőt az államháztartás költségvetéséből kifejezetten a pályázat céljára (nem működési célra) kapja',

it has to bring minimum 5 per cent of own contribution which is part of the total eligible public expenditure of its project part. (Total eligible costs and total eligible public expenditure of its project part is equal this time.) In these cases the calculation method is the following: After the deduction of the minimum 5 per cent of own contribution from the total eligible costs, the amount of Community funding is determined in maximum of 85 per cent of the total eligible public expenditure. (In case the share of own contribution is more than 15 per cent of the total eligible public expenditure, amount of Community funding is decreased proportionately.) The amount of state contribution is calculated at last after the deduction of the amount of own contribution and Community funding from the total eligible public expenditure. The maximum share of the state contribution is 10 per cent of the amount of total eligible public expenditure. (For instance, in relation to 100 per cent of total eligible costs in the project part, counting with 5 per cent of own contribution, the state contribution would be 10 per cent and the remaining 85 per cent would be the ratio of Community funding.) Rules to calculate state contribution in Hungary for private organisations, in general: In case the Project Partner / Lead Beneficiary is

- a private entity (magánjogi jogi személy), or


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- any other organisation not falling under the categories listed under points 1) and 2) under the title ‘Rules to calculate state contribution in Hungary for public organisations, in general’,

it has to bring minimum 5 per cent of own contribution which must be deducted from the total eligible costs of its project part. From the remainder of the total eligible costs (called ‘total eligible public costs’) maximum 85 per cent will be the Community funding and 15 per cent the state contribution. (For instance, in relation to 100 per cent of total eligible costs in the project part, counting with 5 per cent of own contribution, the remaining 95 per cent would be divided and the ratio of Community funding would be 80,75 per cent, while the state contribution would be 14,25 per cent in this case.) State contribution in Croatia: Project Partners / Lead Beneficiaries with private entity (non-budgetary organisations) will be supported with state contribution in Croatia. Non-budgetary organisations (neproračunski korisnici) includes all legal persons that are not direct users of the state budget of the Republic of Croatia. They have to be registered in one of the following registers: Registar udruga (in the Ministry of Administration of Croatia), Registar zaklada (in the Ministry of Administration of Croatia) and Registar udruga – knjige udruga više razine (in the Ministry of Economy, Labour and Entrepreneurship). Since private entities are exempt from providing own contribution, the Republic of Croatia will provide 15 per cent of state contribution of the total eligible costs of the project part. In case the Project Partner / Lead Beneficiary contributes to the project with own contribution, the following rules are applicable to calculate state contribution in Croatia:

• In case the Project Partner / Lead Beneficiary is a private entity, it is not obliged to contribute to the project budget with own resources. However, if it decides to do so, its own private contribution must be deducted from the total eligible costs of its project part. From the remainder of the total eligible costs (called ‘total eligible public costs’) 85 per cent will be the Community funding and 15 per cent the state contribution. (For instance, in relation to 100 per cent of total eligible costs in a project part where there is no own


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contribution, 85 per cent would be the ratio of Community funding and 15 per cent that of the state contribution.)

• In case the Project Partner / Lead Beneficiary is a public entity, it has to bring 15 per cent of own contribution which is part of the total eligible public expenditure of its project part. Therefore the own contribution has to reach 15 per cent of the total eligible costs of the project part, and the remaining part – maximum 85 per cent – will be the Community funding. (For instance, in relation to 100 per cent of total eligible costs in the project part, counting with 16 per cent of own contribution, the remaining 84 per cent would be the ratio of Community funding.)

For more detailed information on public and private entities, please consult Chapter 3.1.1.1 of the Guidelines.

Please note that if roundings are necessary connected to the calculation of the sources of funding, this will not work according to rules of mathematics. In general, the Community funding part is rounded down to whole cents, and the state contribution is rounded up to whole cents. The following table contains the maximum rates of Community funding per Actions, the minimum and maximum size of subsidy from Community funding for the individual Actions, the maximum period of implementation for projects and the project selection procedure to be applied.


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Table 2: Community funding, sizes of subsidy from Community funding, duration of projects and selection procedures per Actions

3rd Call for Proposals Currency: EUR

Sizes of subsidy from Community

funding Priority / Area of intervention / Action

Selection procedure

Maximum project duration (Months)

Maximum rate of

Community funding Mini-

mum Maxi-mum

Priority 1 – Sustainable Environment and Tourism

1.1 Sustainable and Attractive Environment

1.1.1 Development of landscapes in the Mura-Drava-Danube area and its natural and rural surroundings

One-step 24 85,00% 200.000 1.000.000

1.1.2 Environmental planning activities and minor public actions to improve the quality of the environment in the natural areas

One-step 16 85,00% 50.000 300.000

1.2 Sustainable Tourism in the Mura-Drava-Danube River Area

1.2.2 Development of infrastructure for active and ecotourism

1.2.2 – Component 1: Bicycle paths

One-step 20 85,00% 100.000 2.000.000

1.2.2 – Component 2: Development of infrastructure for active and ecotourism in the

One-step 20 85,00% 100.000 1.000.000


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Selection procedure


Maximum rate of


mum Maxi-mum

river border area

1.2.3 Thematic routes of cultural heritage

One-step 16 85,00% 50.000 400.000

1.2.4 Promotion of the river area as a single tourism product

One-step 16 85,00% 50.000 200.000

1.2.5 Private investment attraction

One-step 16 85,00% 50.000 200.000

Priority 2 – Cooperative Economy and Intercommunity Human Resource Development

2.1 Co-operative Economy

2.1.2 Cross-border labour market mobility promotion services

One-step 16 85,00% 50.000 200.000

2.1.3 Joint research, development and innovation

One-step 16 85,00% 50.000 500.000

2.1.4 Joint local planning, strategies, programmes

One-step 16 85,00% 50.000 300.000

2.2 Intercommunity Human Resources Development

2.2.1 Cross-border One-step 12 85,00% 100.000 200.000


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Selection procedure


Maximum rate of


mum Maxi-mum

education, training and exchange projects

2.2.3 Bilingualism actions One-step 12 85,00% 10.000 100.000

Important note: The minimum duration of project implementation is, for project proposals of all Actions, 4 months. Furthermore, project proposals must respect the maximum timeframe available for project implementation as individually indicated in connection to the relevant Action. Project proposals that fail to comply with the (general) minimum and (Action-dependant) maximum project duration cannot be considered eligible. Please also note that project proposals have to take into consideration that different minimum and maximum sizes of subsidy were defined for the different Actions. These sizes of subsidy have an influence on the minimum and maximum project size on one hand and can have an effect on the funding rate on the other hand. Project proposals that fail to comply with the minimum and maximum sizes of subsidy cannot be considered eligible.


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3. ELIGIBILITY RULES

3.1 ELIGIBILITY OF PROJECT PARTNERS / LEAD BENEFICIARIES

3.1.1 Eligible Project Partners / Lead Beneficiaries Project Partners / Lead Beneficiaries have to fulfil eligibility criteria concerning their legal status, their operational background, their geographical location and their professional and financial background. At the same time, they must not be subject to any of the exclusion criteria. Last but not least the proposed partnership, too, has to meet the respective requirements. Please note that in line with point 1.1 of the Programme Document, CfP within the Programme’s framework will be open to non-profit organisations of both Participating Countries. This basic eligibility criterion will be closely observed throughout the submission process of project proposals and during project implementation.

3.1.1.1 Legal status In general, the following organisations are eligible to apply for the Community funding allocated to the Programme: 1) Public authorities, meaning legal entities established and governed by public law,

assigned with special competencies and performing tasks in public interest; 2) Bodies governed by public law (in line with Directive No. (EC) 18/2004), meaning

organisations - established for the specific purpose of meeting needs in the general interest,

not having an industrial or commercial character, - having legal personality, and - being either financed, for the most part, by the state, regional or local

authorities or by other bodies governed by public law; or being subject to management supervision by those bodies; or having an administrative,


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managerial or supervisory board, more than half of whose members are appointed by the state, regional or local authorities or by other bodies governed by public law.

3) Non-profit organisations governed by private law, established for the specific

purpose of meeting needs in the general interest, not having an industrial or commercial character, having legal personality.

For a list of bodies governed by public law in Croatia please consult Appendix 1 of the Guidelines.

3.1.1.2 Operational background Project Partners / Lead Beneficiaries have to prove an operation of at least one year, counted back from the day of the submission of the project proposal. Cases of legal succession can be accepted when proving the necessary operational background, provided that the predecessor- and the successor organisation together can cover at least one year of continuous operation.

3.1.1.3 Geographical location Project Partners / Lead Beneficiaries have to have their headquarters in Hungary or Croatia and their headquarters or a regional/local branch has to be registered and acting in the eligible Programme area as defined in point 1.2 of the Programme Document: Hungary (NUTS 3 level regions located along the border)

• Zala County (HU223) • Somogy County (HU232) • Baranya County (HU231)

Croatia (NUTS 3 equivalent regions located along the border):


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• Međimurska County (HR 016) • Koprivničko-križevačka County (HR 015) • Virovitičko-podravska County (HR 022) • Osječko-baranjska County (HR 025)

(NUTS 3 equivalent regions adjacent to the eligible programme area for Croatia):

• Varaždinska County (HR 014) • Bjelovarsko-bilogorska County (HR 021) • Požeško-slavonska County (HR 023) • Vukovarsko-srijemska County (HR 026)

As the basic rule, the headquarters of the organisation has to be in the eligible Programme area. However, exceptions can be possible in cases where the different organisational setup of a Project Partner / Lead Beneficiary makes it necessary. In a situation where the headquarters of the Project Partner / Lead Beneficiary is not located in the eligible Programme area but it has a regional/local branch office there, two setups can be distinguished: In case the national/regional organisation’s headquarters in Hungary or Croatia is not registered in the eligible programme area and the local branch office is a legal entity then the local branch office has to be the Project Partner / Lead Beneficiary and in case of contracting it shall be the (Lead) Beneficiary. In case the national/regional organisation’s headquarters in Hungary or Croatia is not registered in the eligible programme area and its local branch office is not a legal entity then the national/regional organisation has to be the Project Partner / Lead Beneficiary and in case of contracting it shall be the (Lead) Beneficiary. In this second case, the organisation shall prove its distinct role in the border region with the following: 1) just as it is the case with the national/regional organisation, the local

organisational unit as well has to justify at least one year of operation in the eligible programme area, counted back from the day of the submission of the project proposal;

2) the leader of the branch office has to be an authorised representative of the legal person to act in connection to the implementation of the relevant project part; and


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3) project activities have to be implemented in the eligible programme area and must have a cross-border character, with local staff being involved in project management.

Please note that in case the headquarters of a Project Partner is located in a NUTS 3 equivalent region adjacent to the eligible programme area for Croatia but the branch office without legal personality to participate in the project is operating in a NUTS 3 equivalent region located along the border, the organisation will be considered as a Project Partner from Adjacent Region. However, if within the same geographical setup (headquarters in the adjacent area and branch office in the ‘regular’ eligible programme area) the branch office is a legal person in its own right, the organisation will be considered as a ‘regular’ Project Partner. Please also note that in connection to associations in case of which only the ‘branch office’, meaning a member association / local unit (HU: tagszervezet, HR: članica udruge), is operating in the eligible programme area but the headquarters lies outside of it, and this ‘branch office’ is not a legal entity, it is not enough to prove an existence of at least one year for the local unit – its operation also has to be supported by the submission of the latest accepted detailed activity report covering the activities of the last closed year. The document has to be certified by both the head of the local unit and the legally authorised representative of the association.

3.1.1.4 Professional and financial background Since implementing cross-border projects requires reliable capacities, Project Partners / Lead Beneficiaries will be measured against a set of criteria related to their professional and financial background. 1) Project Partners / Lead Beneficiaries have to take direct responsibility for the

preparation and management of the proposed project activities both from a professional and financial point of view and may not act as intermediaries.

2) Project Partners / Lead Beneficiaries must be experienced and must prove their financial and administrative capacity to manage their share of activities in the planned project (ensuring pre-financing and own contribution, where relevant).


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3) Project Partners / Lead Beneficiaries have to have proper project management experience matching the scale of funding they are requesting from the present CfP.

Note: An indicative list of Project Partners / Lead Beneficiaries can be found as part of the description of the individual Actions of the Programme, containing some of the organisations most likely to apply for funding under the respective Action. For further information please refer to Chapter 3.2 of the present Guidelines.

3.1.2 Exclusion criteria In general, and stemming from the definition of the eligible Project Partners / Lead Beneficiaries under the Programme, for-profit legal entities (undertakings) such as bodies with industrial and/or commercial character are not eligible for support, nor are natural persons and individuals. All Project Partners / Lead Beneficiaries shall prove their professional and financial liability by not falling under any of the cases presented below. Project Partners / Lead Beneficiaries cannot receive funding if one or more of the following cases apply to them: 1) they are bankrupt or being wound up, are having their affairs administered by the

courts, have entered into an agreement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

2) they have been convicted of an offence concerning their professional conduct by

a judgement which has the force of ‘res iudicata’;

3) they have been guilty of grave professional misconduct proven by any means which the Managing Authority or the National Authority can justify;

4) they have not fulfilled their obligations relating to the payment of social security

contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the Managing Authority or those of the country where the contract is to be performed;


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5) they have been the subject of a judgement which has the force of ‘res iudicata’

for fraud, corruption, involvement in a criminal organisation or for any other illegal activity detrimental to the Community’s financial interests;

6) following another procurement procedure or grant award procedure financed by

the Community budget, they have been declared to be in serious breach of contract for failure to comply with their contractual obligations;

7) they are subject to a conflict of interests connected to their participation in the present CfP;

8) they are guilty of misrepresentation in supplying the information required by the MA/NA as a condition of participation in the CfP or in failing to supply information;

9) they have attempted to obtain confidential information or to influence the Joint

Monitoring Committee (hereinafter referred to as the JMC) or the MA during the assessment process of the current or a previous CfP.

Note: Both Project Partners and Lead Beneficiaries are obliged to certify declarations (part of the application package, see Chapter 4.1.1 of the Guidelines) annexed to the AF that refer to the non-existence of the above listed circumstances.

3.1.3 Summary Based on the above, the conditions to be fulfilled simultaneously by all Project Partners / Lead Beneficiaries are:

• being a non-profit legal person governed by public or private law for the purposes of public interest,

• having the headquarters or a regional/local branch in the eligible programme area (or if not, are being in line with the special rules on geographical location, described in Chapter 3.1.1.3 of the Guidelines),

• having stable and sufficient professional and financial sources, • being experienced in order to be able to manage activities similar to the ones

in the proposal, • being directly responsible for the project and not act as an intermediary, and


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• not falling under the listed exclusion criteria. Project proposals in which the Project Partners / Lead Beneficiaries fail to meet the eligibility criteria will not be further evaluated.

3.1.4 Eligibility of partnerships In order to be considered eligible, Project Partners / Lead Beneficiaries have to act in partnership with at least one cross-border Project Partner from the (from their point of view) other side of the Hungarian-Croatian border, and all Project Partners / Lead Beneficiaries must satisfy the eligibility criteria set for Project Partners / Lead Beneficiaries as described above. Project partnerships will have to certify a Partnership Statement with each other, to be attached to the AF, as well as a Partnership Agreement, to be signed after the project has been selected for funding from the Programme.

You can find the Partnership Statement among the documents of the application package (as referred to in Chapter 4.1.1 of the Guidelines). The Partnership Agreement template constitutes Annex 7 of the Guidelines. The template is a sample which can be tailored to your partnership’s needs. Minimum obligatory elements will be defined during the contracting stage.

Paragraph (1) of Article 96 of the IPA Implementing Regulation establishes as compulsory the Lead Beneficiary principle in cross-border programmes. In accordance with this, all partnerships have to designate one Project Partner among themselves to act as Lead Beneficiary who will submit the project proposal on behalf of the entire partnership and who shall be responsible for ensuring the implementation of the entire project. Based on the Lead Beneficiary principle, the organisations involved in a project, according to their financial and professional commitment and responsibilities may be classified as follows: • Lead Beneficiary • Project Partner

- Cross-border Project Partner


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- Domestic Project Partner - Project Partner from Adjacent Region

• Associated Partner

3.1.4.1 The Lead Beneficiary One Lead Beneficiary has to be nominated for each project. This particular organisation will bear the responsibility of representing and mediating the whole project towards the programme implementing structure. The MA will conclude the Subsidy Contract with the Lead Beneficiary, and the Lead Beneficiary will be responsible for transferring the Community funding received for the project to its Project Partners. The Lead Beneficiary will have to ensure the smooth co-operation and communication inside the partnership and it will oversee the fulfilment of the project activities which constitute the individual responsibilities of the various Project Partners. In all cases the Lead Beneficiary has to have the necessary financial and human resources in order to coordinate the management of the project, as well as the required financial liquidity in order to smoothly implement their own project part from a financial point of view. According to Paragraph (1) of Article 96 of the IPA Implementing Regulation ‘the Lead Beneficiary shall assume the following responsibilities: a) it shall lay down the arrangements for its relations with the final beneficiaries

participating in the operation in an agreement comprising, inter alia, provisions guaranteeing the sound financial management of the funds allocated to the operation, including the arrangements for recovering amounts unduly paid;

b) it shall be responsible for ensuring the implementation of the entire operation; c) it shall be responsible for transferring the Community contribution to the final

beneficiaries participating in the operation; d) it shall ensure that the expenditure presented by the final beneficiaries

participating in the operation has been paid for the purpose of implementing the operation and corresponds to the activities agreed between the final beneficiaries participating in the operation;


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e) it shall verify that the expenditure presented by the final beneficiaries participating

in the operation has been validated by the controllers referred to in Article 108.’ In accordance with the above, the Lead Beneficiary has to fill in and certify a declaration, attached to the AF, taking on responsibilities in connection to the project and its partnership.

For additional information please consult the Declaration of the Lead Beneficiary among the documents of the application package (as referred to in Chapter 4.1.1 of the Guidelines).

Note: Due to the exceptional nature of their participation in projects co-financed under the Programme, Project Partners from Adjacent Regions cannot be nominated to be Lead Beneficiaries in cross-border projects.

3.1.4.2 The Project Partners Partnerships must have partners from both sides of the Hungarian-Croatian border, all of them satisfying the eligibility criteria for Project Partners / Lead Beneficiaries. The minimum setup is to have at least one Cross-border Project Partner next to the Lead Beneficiary organisation. Nevertheless, further partners like more Cross-border and Domestic Project Partners can be involved into the implementation of the project in case they, as well, satisfy the eligibility criteria for Project Partners / Lead Beneficiaries and in case the content of the project justifies their participation. The expenditures of such Project Partners are eligible for funding if the rules set in the CfP in connection to expenditures are respected. Project Partners are partners who receive Community funding from the project – through the Lead Beneficiary. Based on the above definition, Project Partners must have a project part of their own and a budget in the AF corresponding to the activities it implements. Please consider that balanced funding is an important criterion of quality assessment. Please also note that only as many Project Partners can be involved in one project as there are places for them in the AF. The role of the Project Partners in the implementation of joint projects is as much important as that of the Lead Beneficiary. Based on the Lead Beneficiary principle and on Paragraph (4) of Article 96 of the IPA Implementing Regulation, each Project


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Partner is responsible for irregularities in the expenditure which it has declared. The differences lie in the administrative and overall coordination of the project development and implementation process. Therefore the partnership shall define the roles in such a way that the implementation of the project is ensured and the possible risks that might occur because of the lack of administrative and management capacities, as well as the ones resulting from internal and external communication, are minimised. Project Partners, too, are required to have the necessary financial and human resources in order to implement their own share of the project, as well as the necessary financial liquidity in order to smoothly implement the project part from a financial point of view, with special regard to pre-financing. In accordance with the above and in connection to the declaration of the Lead Beneficiary, the Project Partners as well have to fill in and certify individual declarations to be attached to the AF, supporting, among others, their professional and financial capacity.

For additional information please consult the Declaration of the Project Partner among the documents of the application package (as referred to in Chapter 4.1.1 of the Guidelines).

3.1.4.3 Project Partners from Adjacent Regions Based on Paragraph (1) of Article 97 of the IPA Implementing Regulation, in duly justified cases, Community funding may finance expenditure incurred in implementing projects or parts of projects up to a limit of 20 per cent of the amount of the Community funding to the cross-border programme in NUTS level 3 regions or, in the absence of NUTS classification, equivalent areas, adjacent to the eligible areas for that Programme. With view to this possibility, point 1.2 of the Programme Document allows Project Partners coming from these adjacent regions to participate in projects financed under the Programme. Project Partners from Adjacent Regions are Project Partners with the same rights and responsibilities as attributed to other Project Partners, except that a Project Partner from Adjacent Region can, stemming from the exceptional nature of its


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participation in the project, not assume the role of Lead Beneficiary. The amount of Community funding to be reimbursed to Project Partners from Adjacent Regions (to one organisation alone or to several organisations cumulated) can amount to a maximum of 20 per cent of the total Community funding of the individual project in which these partners participate.

3.1.4.4 Associated Partners In specific cases in addition to the Project Partner(s) and the Lead Beneficiary so-called Associated Partners can be involved to support the implementation of the project. The Associated Partners are those organisations which may contribute to the professional implementation of the project and/or may give support to it without receiving any Community funding and state contribution. Associated Partners have to fulfil the eligibility criteria concerning legal status (see Chapter 3.1.1.1 of the Guidelines), valid for Project Partners / Lead Beneficiaries, and they shall be external stakeholders influenced and/or interested by the project. Associated Partners can incorporate professional associations, business and trade organisations, local, county, regional and national administrations, policy makers and end-users. In any case they have to be nominated in the AF.

Please note that an Associated Partner cannot take the role of Lead Beneficiary and cannot be designated as the compulsory Cross-border Project Partner.

Please also note that it is possible to involve only as many Associated Partners into the project as there are corresponding places on AF Sheet 3. For the present CfP, this number is limited to three organisations. Additional organisations can of course observe the implementation of the project but they cannot be nominated formally as Associated Partners. Associated Partners do not receive any funding from the project, thus Associated Partners are not referred to when Project Partners are considered from a financial or legal point of view.


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3.1.5 Balanced partnerships The Programme is emphasising the development of balanced partnerships with a rational and efficient division of tasks and responsibilities. The partnership shall be composed of partners that may be linked professionally to the project and that may have significant contribution and impact within the partnership. In order for a partnership to operate effectively it must aggregate partners with common needs and objectives, while specific knowledge and expertise have to be ensured throughout. One-sided project partnerships will not receive funding, however good the professional content of the project proposal, since they will not be able to accomplish the requested minimum criterion, the actual involvement of at least one Cross-border Project Partner providing active, provable contribution. When composing an individual partnership, the fulfilment of the joint criteria described in Paragraph (2) of Article 95 of the IPA Implementing Regulation (and detailed in Chapter 4.3 of the Guidelines) have to be observed. All Project Partners shall be aware of the activities, deadlines, responsibilities, furthermore of the risk factors occurring in case of not performing according to the Subsidy Contract and the project proposal as approved by the JMC. The Project Partners shall be able to produce measurable outcomes and results and these shall be linked to the Programme / Action objectives. To be able to maintain the effectiveness of the partnership, the number of Project Partners shall be limited to the actual professional and/or financial need of the given project.

3.2 ELIGIBILITY OF ACTIVITIES In the present Chapter of the Guidelines you will find for each Action opened by the CfP the indicative list of eligible project activities. The tables also contain indicative information on the Project Partners / Lead Beneficiaries most likely to apply and a reference to the applicable State aid rules for the Action’s eligible activities. For an overview of the Priorities, Areas of intervention and Actions of the cross-border Programme, please refer to Table 1 (see Chapter 2.1 of the Guidelines).


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Important note: Please be aware that in case of Actions where projects with a works component can be eligible for funding, the projects should possess constructions plans ready for submission to acquire the building permit (engedélyezési szintű tervdokumentáció) if the activity is subject to building permit. Please also note that projects receiving funding under the present CfP can, during project implementation, either finance the elaboration of construction plans or the implementation of the construction of the coherent activities.

Important note: If you plan a project proposal which targets Actions 1.2.2 to 1.2.5, please carefully read the ‘Handbook to Tourism Projects’ for information on the eligible activities, furthermore Annex 5 for information on State aid rules relevant to the eligible activities.

3.2.1 Priority 1 – Area of intervention 1.1 Sustainable and Attractive Environment

Action 1.1.1 – Development of landscapes in the Mura-Drava-Danube area and its natural and rural surroundings

Content of the projects

The aim of the Action is the development of landscapes in the Mura-Drava-Danube area (and its natural and rural surroundings) in order to create a more sustainable and naturally valuable environment and more attractive locations for ecotourism. This involves the protection and development of river landscape and other connected valuable natural sites through planning and minor landscape protection and rejuvenation actions of unprotected areas and river zones of neighbouring areas with valuable natural and rural landscape character and heritage. Special attention has to be paid to those actions which support sustainable water management measures and also support targets of the Water Framework Directive. The foreseen activities also include the support of more ecologic and traditional land use forms, the development of unique landscape values and minor reforestation actions in the surroundings of tourism sites.

Indicative list of eligible activities


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Eligible activities with possible works components

• infrastructure developments serving the protection of nature and natural values, developments for the protection and conservation of unique landscape values (ecological restoration and rehabilitation of natural sites; small-scale silvicultural actions, construction of protection facilities, etc.)

• small-scale landscape protection and rehabilitation actions targeting

unprotected areas valuable from a nature conservation or landscape protection perspective (i.e. they host specific natural values, represent important ecological corridors or they are part of the rural heritage of the region)

• protection and development of river landscape, rehabilitation of water

ecosystems and connected natural sites (e.g. rehabilitation of oxbows and side branches; strengthening river embankments, halting the erosion of riverbeds)

• elimination of illegal landfills, rehabilitation of contaminated sites, including the

removal of land mines • activities to protect, enhance and restore surface- and groundwater resources • flood protection and control through the rehabilitation of flood plains;

improving the natural state of flood plains through the creation and regeneration of wetlands, and by extending floodplain areas receiving regular flooding (e.g. by the removal of unused summer dykes)

For those activities with works components which aim at a geographically incoherent development (i.e. works activities at sites with great distance from each other) it is important to present the activities’ added joint cross-border effect which can only be achieved by the joint implementation of the project parts. Please note that this effect will be an important aspect when considering a project proposal for approval.

Eligible activities without works components


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• preparation and designation of cross-border nature conservation areas (e.g. protected areas, biosphere reserves), improving the level of protection of already existing nature conservation areas

• introducing new nature-friendly techniques in forestry to replace clear-felling, improving the species composition of forests by replacing non-native wood species with autochthonous ones

Auxiliary activities (not eligible alone), without works components

• elaboration of environmental rehabilitation and landscape rehabilitation plans

• exploration of negative impacts along the border (e.g. mining activities), measuring noise- and air pollution, vibration and environmental contamination, elaboration of plans reducing or abolishing these negative impacts

• fostering the co-operation between institutions and authorities

• awareness-raising activities for environmentally friendly land use, farming and sharing best practices

• communication activities (preparation of joint websites, publications etc.)

Indicative list of Project Partners / Lead Beneficiaries

• Water management authorities, water directorates, other public bodies, agencies

• Environmental management authorities, public bodies, agencies • Management organisations of national parks and environmental protection

areas • County, regional or euro-regional development/management organisations • County local governments and their institutions • Municipality local governments and their institutions • Associations of local governments and their institutions • Universities, research institutes and museums • Civil organisations


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• Non-governmental non-profit organisations (NGO-s)

Applicable State aid rules

Concerning the State aid rules to be applied please refer to Annex 5 of the Guidelines (State aid rules per Activity) and also to Chapter 4.5 of the Guidelines.

Action 1.1.2 – Environmental planning activities and minor public actions to improve the quality of the environment in the natural areas


The Action supports the creation of environmental rehabilitation and landscape rehabilitation plans, the assessment and databases of landscape values, landscape characters and attractions, furthermore it fosters environmental risk prevention planning. Minor environmental actions with local impact outside of built up areas with relevance to the border river ecosystem (e.g. local cleaning of waterways, forests and meadows, protection and reconstruction of habitats along rivers and in the surrounding of sites of tourism) are also eligible. The nature protection actions have to adapt biodiversity elements as well (e.g. joint biodiversity action plans). Partnership with environmental authorities and associations and a participatory approach are preferable.



• establishment of joint monitoring systems and development of related ICT infrastructure, serving the protection of nature, natural values, or tracing pollution or allergen agents

• creation and/or harmonisation of flood and pollution forecast systems, establishment of joint monitoring systems, purchase of necessary equipment



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• elaboration of joint biodiversity action plans with the aim of protecting nature and biodiversity

• elaboration of joint programmes, studies, strategies for the improvement of

environmental protection • harmonisation of existing plans, preparation and implementation of

joint/correlated management plans (environmental risk prevention plans, management plans of nature conservation areas, flood risk management plans, floodplain management plans)

• joint cross-border programming and initiatives (joint management of river

catchment areas and of thermal water resources) • fostering the co-operation between existing and new national parks, nature

parks and NATURA 2000 areas, sustainable activities to increase the number of visitors

• definition of new protected areas with harmonised management, assuring

the connectivity of NATURA 2000 sites, elaborating tools and methods to ensure the joint management of visitors

• harmonisation of nature conservation regulations and official lists of

protected plant and animal species, coordination of flood prevention activities and of the management of contamination issues

• elaboration of documents enhancing the harmonisation and joint

development of river basin management plans (e.g. water management methods with minimal negative impacts on nature and the environment)

• coordination of administrative arrangements within river basin districts,

development of joint strategies against the pollution of water • exchange of best practices between institutions and authorities

• organising joint events to promote the protection of the environment (e.g.


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social events collecting waste or preserving natural habitats in the border area or along border rivers)

• activities (e.g. joint conferences and professional workshops between

national, regional and local environmental agencies, joint websites and publications) raising awareness about environmental issues, exchange of information between relevant authorities and organisations, identification and promotion of common natural values

• (multilingual) short films presenting the natural values of the border region,

unconventional actions focusing on environmental threats in the border region

• developing (bilingual) curricula and implementing courses focusing on

environmental protection (e.g. special curricula for public servants promoting sustainable development or promoting energy-saving best practices for productive investments)

• developing a common professional nomenclature as the basis for future cross-border co-operation


• Water management authorities, water directorates, other public bodies, agencies

• Environmental management authorities, public bodies, agencies • Management organisations of national parks and environmental protection

areas • County, regional or euro-regional development/management organisations • County local governments and their institutions • Municipality local governments and their institutions • Associations of local governments and their institutions • Universities, research institutes and museums • Civil organisations • Non-governmental non-profit organisations (NGO-s)


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3.2.2 Priority 1 – Area of intervention 1.2 Sustainable Tourism in the Mura-Drava-Danube River Area Following the logic of the Programme Document and ensuring a strategic approach towards joint tourism development in the cross-border area, the opening of Actions 1.2.2 to 1.2.5 in the framework of the present CfP was preceded by the implementation of Action 1.2.1, the elaboration of a Regional Tourism Product Plan. The project partnership which created the Regional Tourism Product Plan was selected by the Joint Monitoring Committee on 19 October 2009, following an open CfP, published on 26 March 2009. The Subsidy Contract for the Community funding of project HUHR/0901/1.2.1/0002 (Lead Beneficiary: University of Pannonia, project title: ‘Regional Tourism Product Plan of the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013’) was signed on 1 April 2010, with a period of implementation of 12 months. The modules covered by the project were, based on the Specific Guidelines for Applicants of Action 1.2.1, the following:

Module 1 – Overall concept for the whole eligible area Module 2 – Database, analysis

Task 2.a) Set up of GIS basis (for the zones ‘B’ and ‘C’) Task 2.b) Data collection (attractions and services) Task 2.c) Landscape and spatial analysis, evaluation

Module 3 – Marketing strategy Task 3.a) Summary of the overall concept (from Point 1.) Task 3.b) Market analysis Task 3.c) Product strategy


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Task 3.d) Strategies for touristic sub-regions Task 3.e) Marketing communication and promotion plan Task 3.f) Corporate Design manual Task 3.g) Actions of investment promotion Task 3.h) Tourist information system plan

Module 4 – Plan for bicycle networks of the region Module 5 – Plan of water related types of tourism Module 6 – Plan of trekking, hiking Module 7 – Plan of equestrian tourism

For a summary of the Regional Tourism Product Plan and for detailed information on the content of Actions 1.2.2 (both Component 1 and 2), 1.2.3, 1.2.4 and 1.2.5 please refer to the Handbook, published as part of the present CfP and available for download from the Programme’s website: http://www.hu-hr-ipa.com/en/news/handbook-to-tourism-projects-on-the-programme-website--httpwwwhu-hr-ipacomennews/83. For the core content of the relevant Actions (e.g. content of the projects, indicative list of eligible activities) please refer to the Handbook. Concerning the State aid rules to be applied please refer to Annex 5 of the Guidelines (State aid rules per Activities) and also to Chapter 4.5 of the Guidelines.

3.2.3 Priority 2 – Co-operative Economy and Intercommunity Human Resources Development

Action 2.1.2 – Cross-border labour market mobility promotion


By the setting up of labour market mobility services, including job fairs, data bases, websites and employment pacts, projects under this Action should contribute significantly to the development of labour market mobility across the border.


Eligible activities


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• measures that open up the border to cross-border labour market migration

• exchange of trainees, elaboration of education schemes/grants

• promotion of the use of ICT facilities in order to improve the co-operation between labour market organisations

• promotion of tele-working and e-learning

• programmes promoting the creation of jobs, innovative employment projects

• exchange of experts, mutual employment of experts and other professional staff

• harmonisation of labour market statistics, joint monitoring activities, exchange of information, joint labour market studies and research

• preparation of training needs analyses for purposes of giving directions for the labour market

• actions promoting the inclusion of elderly people, people with disabilities and of minority individuals into the labour market, efforts undertaken to ensure equal opportunities

• elaboration and delivery of specialised joint training programmes in vocational schools in sectors where a lack of particular skills was identified

• creation of job opportunities for persons with low levels of education/qualification and for people with disabilities

• creating and promoting pathways to integration and re-entry into employment for disadvantaged people

Auxiliary activities (not eligible alone), with possible works components

• improvement of the infrastructural background of cross-border labour market mobility providing institutions – maximum 70 per cent of the eligible


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project budget


• County, regional or euro-regional development/management organisations • County local governments and their institutions • Municipality local governments and their institutions • Associations of local governments and their institutions • National non-profit organisations with local office registered in the eligible

programme area • Development agencies • Business development foundations • Professional (trade) organisations, chambers, labour centres • Universities, colleges and their non-profit organisations • Research institutes • Foundations, associations, civil organisations • Non-profit enterprise promoting organisations • Non-governmental non-profit organisations (NGO-s) • Management organisations of incubators, IT parks, trade, service and

logistic centres (public companies)



Action 2.1.3 – Joint research, development and innovation


The Action supports efforts by university and non-university institutions, as well as private organisations in co-operation with R&D centres undertaken in order to increase the joint RDI capacity of the border region. There should be a bias towards sustainable, environmentally friendly technologies in case of natural science projects. Such co-operations have to take advantage of technological development from a sustainable perspective.


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• development of infrastructural and equipment capacities in the field of research in order to implement and/or participate in larger joint R&D programmes – maximum 70 per cent of the eligible project budget


• enhancing the planning, organising and implementing of joint framework research programmes

• development of a common database in order to identify R&D capacities in the border region

• establishment and development of cross-border innovation networks

• enhancing co-operation and knowledge transfer of new methods, forums between scientific institutions and actors of the economy

• elaboration of feasibility studies, engineering design documents, architectural plans, environmental impact assessments linked to the joint development of RDI facilities

• improving co-operation between innovation service institutions

• improvement of the accessibility of the business and R&D services provided on both sides of the border

• development of strategies and plans for using mutual human resources


• County, regional or euro-regional development/management organisations • County local governments and their institutions • Municipality local governments and their institutions • Associations of local governments and their institutions


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• National non-profit organisations with local office registered in the eligible programme area

• Development agencies • Business development foundations • Professional (trade) organisations, chambers, labour centres • Universities, colleges and their non-profit organisations • Research institutes • Foundations, associations, civil organisations • Non-profit enterprise promoting organisations • Non-governmental non-profit organisations (NGO-s) • Management organisations of incubators, IT parks, trade, service and




Action 2.1.4 – Joint local planning, strategies, programmes


This Action fosters joint local-regional planning, strategies drawn up jointly by municipalities and/or deconcentrated state bodies in order to contribute to the joint planning capacity of the region and to the continuity in the planning of developments in the common socio-economic space of the border area. Intermediary level plans drawn up by several settlements are eligible, furthermore territorial plans with cross-border relevance and sectoral plans for the whole border region are envisaged. Major infrastructural planning with cross-border relevance is also supported. Partnership with environmental authorities and associations and a participatory approach are preferable.



The Action does not support works components.


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Action 2.1.4 – Joint local planning, strategies, programmes


• strengthening cross-border joint planning practices • establishment or harmonisation of existing common development

documentation, preparation of joint feasibility studies

• preparation of joint major infrastructure development planning projects


• County, regional or euro-regional development/management organisations • County local governments and their institutions • Municipality local governments and their institutions • Associations of local governments and their institutions • National non-profit organisations with local office registered in the eligible

programme area • Development agencies • Business development foundations • Professional (trade) organisations, chambers, labour centres • Universities, colleges and their non-profit organisations • Research institutes • Foundations, associations, civil organisations • Non-profit enterprise promoting organisations • Non-governmental non-profit organisations (NGO-s) • Management organisations of incubators, IT parks, trade, service and





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Action 2.2.1 – Cross-border education, training and exchange projects


The Action supports joint cross-border education and other training projects between educational institutions and other organisations in order to strengthen co-operation in the educational sector and to develop local and regional development capacities of the border area. Activities include common training programmes, staff and student exchanges, as well as the harmonisation of curricula, especially in the fields relevant to the development of the region (environmental actions, ecotourism).


Eligible activities

• development of common curricula and of joint training facilities

• accreditation of adult training institutions and programmes (in both countries)

• development of distance-learning training modules

• organisation of joint events, workshops and conferences

• activities related to the establishment of networks and the co-operation among labour market institutions, technical colleges and universities

• adaptation of methods and best practice for life-long learning


• construction, reconstruction or enlargement of multifunctional buildings that can be used for various events – maximum 70 per cent of the eligible project budget

Auxiliary activities (not eligible alone), without works components

• purchase of educational and vocational accessories


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Action 2.2.1 – Cross-border education, training and exchange projects


• Universities, colleges • Educational and teaching organisations and their non-profit organisations • Civil organisations • Chambers • County local governments and their institutions • Municipality local governments and their institutions • Development agencies, associations of local governments and their

institutions, • National non-profit organisations with local office registered in the eligible

programme area • Labour centres • Business development foundations • Associations • Trade unions • Non-governmental non-profit organisations (NGO-s)



Action 2.2.3 – Bilingualism actions


The Action supports a wide variety of bilingualism actions – the promotion of each other’s language in the border region in order to help ease the reluctance to co-operate with partners from the other side of the border, as well as to create a visitor friendly border area and to help share cultural goods in all languages spoken in the area. The promotion of language training particularly in Hungarian and Croatian on the other side of the border (but also minority and world languages) is recommended. The bilingualisation of communicative tools such as signs, forms and broadcasts is to be supported along with the translation of art, popular science and documentary pieces relevant to the border area.


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All language training programmes should be free of charge for the participants.


Eligible activities

• activities to reduce language barriers

• enhancing the networks of youth organisations

• creation of bilingual media coverage related to the cross-border area


• construction, reconstruction or enlargement of multifunctional buildings that can be used for various events – maximum 70 per cent of the eligible project budget


• Universities, colleges • Educational and teaching organisations and their non-profit organisations • Civil organisations • Chambers • County local governments and their institutions • Municipality local governments and their institutions • Development agencies, associations of local governments and their

institutions, • National non-profit organisations with local office registered in the eligible

programme area • Labour centres • Business development foundations • Associations • Trade unions • Non-governmental non-profit organisations (NGO-s)



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3.3 ELIGIBILITY OF COSTS

3.3.1 General rules The verification of project expenditures will be conducted through a system of controllers, operating within the framework of the following organisations: � Hungary – VÁTI Nonprofit Ltd. and its Territorial Offices (Pécs, Zalaegerszeg), � Croatia – Ministry of Regional Development, Forestry and Water Management of

the Republic of Croatia. The eligible expenditures listed in the project proposal, approved by the JMC and stipulated in the Subsidy Contract can only be reimbursed after the Lead Beneficiary provides proof of progress of the activities implemented and after declarations on validation of expenditure issued by the respective Control Body (hereinafter referred to as the CB), as well as the applications for reimbursement are received by the JTS. Related to the first condition, please note that in the project proposal all costs have to be described in as much detail as possible. For the purpose of providing relevant and exhaustive information, please use AF Sheets 11, Budgets (cells named ‘Detailed description of the budget line’). The JMC is entitled to reduce or entirely cut costs that are not supported by detailed reasoning. In general, eligibility rules concerning expenditure are applied for all Actions of the Programme. When defining eligible and ineligible costs, Articles 34 and 89 of the IPA Implementing Regulation are taken into account. However, in case of some cost types, further restrictions can apply or maximum percentages can be defined in the Guidelines for Applicants in order to direct the cost structure of projects towards the objectives of the related Actions.


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Costs are generally eligible if they fulfil all following criteria:

• they have been actually incurred and paid by the Lead Beneficiary or the Project Partners and they can be verified on the basis of original invoices or other accounting documents of equivalent probative value,

• they are directly related to the project, necessary for developing, starting and/or implementing the project and they are planned in the approved project budget,

• they have been incurred within the eligibility period of the project, • they comply with the principles of efficiency, economy and expediency, • as a general rule3 they have been incurred in the eligible programme area, • they are compliant with programme-level, national and EU rules and

legislation. Important note: In accordance with Paragraph (1) of Article 121 of the IPA Implementing Regulation, procurement procedures in the whole eligible programme area, both on Hungarian territory and on Croatian territory, ‘shall follow the provisions of Chapter 3 of Part 2, Title IV of Regulation (EC, Euratom) No 1605/2002 and Chapter 3 of Part 2, Title III of Regulation (EC, Euratom) No 2342/2002, as well as Commission Decision C(2007) 2034 on the rules and procedures applicable to service, supply and work contracts financed by the general budget of the European Communities for the purposes of cooperation with third countries, with the exclusion of Section II.8.2’.

For more detailed information on public procurement rules to be applied, please consult Chapter 6.2.2 of the Guidelines.

All expenditure must be validated by the Control Bodies designated to perform verification activities. Costs that are not in accordance with the rules on the eligibility of expenditures, costs arisen during project implementation, having disposition of eligible expenditures but being above their scope, furthermore costs not included in the list of eligible expenditures must be paid from own financial sources. Any modifications can only be undertaken based on a written request.

3 In exceptional cases expenditure incurred outside the programme area can be accepted as eligible cost, please consult Chapter 3.3.1.2 (Geographical eligibility of expenditure) of the Guidelines.


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Other restrictions might be valid up to the decision of Participating Countries. Please be informed either with the support of the Control Bodies in the respective country or by consulting national level Partner Guidelines on the Programme website: http://www.hu-hr-ipa.com/en/download/partner-level-guidelines-hungary-and-croatia.

3.3.1.1 Eligibility period of expenditure According to Paragraph (1) of Article 89 of the IPA Implementing Regulation, expenditure under the cross-border Programme can be eligible if it has actually been paid between 1 January 2007 and 31 December of the third year following the last budgetary commitment, for projects or parts of projects implemented within Member States (Hungary), and on or after 1 December 2008 or respectively on or after 25 March 2011 (see the dates of the signature of the Financing Agreements) for projects or parts of projects implemented within Beneficiary Countries (Croatia). The precondition of the eligibility of expenditure is that the project has been approved by the JMC, that the Subsidy Contract for the Community funding has been signed and that the expenditures of the project are eligible according to Paragraph (3) of Article 34 and to Article 89 of the IPA Implementing Regulation, according to national level eligibility rules, and finally according to the eligibility criteria of the CfP as well. The period of implementation of a project may not start before the date of the receipt of the project proposal by the JTS. The Project Partners and Lead Beneficiaries can hereafter start implementing their projects, keeping in mind that the approved project activities might differ from the ones planned in the project proposal, as the JMC has the right to select a project for funding with certain conditions to be fulfilled. These conditions shall be applied when preparing the Subsidy Contract and only those expenditures can be reimbursed which are connected to project activities included in the Subsidy Contract. Having regard to the time schedule of project implementation indicated in the project proposal, project implementation may also start after the decision of awarding a subsidy and the first invoices directly related to the project, meaning invoices not connected to preparation costs, can be eligible for reimbursement from the Programme.


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The final date for the implementation of the project, and thus the final date for the eligibility of costs incurred, shall be specified in the Subsidy Contract.

3.3.1.2 Geographical eligibility of expenditure As a general rule, eligible costs shall be incurred in the eligible programme area. On project level a maximum of 20 per cent of the Community funding can be assigned to Project Partners from Adjacent Regions, in line with the adjacent rule (see Paragraph (1) of Article 97 of the IPA Implementing Regulation). In exceptional cases expenditure incurred outside the programme area as defined in the 1st sub-paragraph, (i.e. expenditure incurred outside the ‘eligible area’ and outside the ‘adjacent areas’), may be eligible if the project could only achieve its objectives with that expenditure. Another precondition of the eligibility of the expenditure is that these expenditures, incurred outside the programme area, have to be identified clearly within the budget of the respective Project Partner / Lead Beneficiary and within the project activity concerned. (Both the exact geographical location of the costs and of the activities have to be clearly identified.)

3.3.2 Eligibility by category of costs The eligible costs are aggregated in so-called thematic budget headings gathering all the costs that are alike. The following cost categories, presented in the budget tables as main budget lines, are considered eligible:

• Preparation costs • Staff cost • Travel and accommodation • Service • Equipment/Supply • Investment/Works • Administrative costs

It is important to note that, irrespective of the category, all costs have to be identified and reasoned in proper detail, otherwise the respective project part (and


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by this, the whole project) might face budget reductions in spite of a positive decision on supporting the project proposal. Identification means as a minimum that the following are clear from the project proposal: the purpose of the arising cost, the activity to which it contributes and the actor (e.g. target group, expert etc.) which it supports. Reasoning is of key importance especially in cases when the need of for certain costs is not evident, when the planned cost of the service/equipment/work is higher for some reasons as compared to ordinary cases (in this situation the reasons have to be justified), or when costs are planned in parallel to more than one Project Partner while aiming at the same goal and contributing to the same activity.

3.3.2.1 Preparation costs Preparation costs represent a special eligible expenditure that may be incurred in the preparation/development phase of the project. The expenditure can be an eligible cost if it is in line with following conditions: - Preparation costs can only be eligible if they were incurred on or after 1 January

2007 for projects or parts of projects implemented in Hungary, and for projects or parts of projects implemented in Croatia on or after the date of the signature of the Financing Agreements (1 December 2008 and 25 March 2011) – and for both countries before the start date of the project;

- Preparation costs shall be incurred linked to activities implemented in the eligible programme area;

- Preparation costs should be backed by documentation proving direct links with the approved project and they should be listed in the approved AF.

The rate of the preparation costs shall not exceed 10 per cent of the total eligible project costs of each Project Partner, and they should be proportionate with the complexity of the project. The following costs can be reimbursed as project preparation costs: - Technical plans – costs of authorisation and plans; - Studies, statistics, databases and researches – preparation of feasibility studies,

environmental impact assessments, cost-benefit analyses, costs of conditional public procurement and of public procurement expertise, preliminary assessment


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of demands, target group analysis, market research, need assessment, position paper, other relevant studies;

- Costs of permits – costs incurred in relation to permits required by national legislation;

- Project meetings and travel costs – travel costs of employees of the Project Partners / Lead Beneficiary, including per diems and accommodation connected to project preparation, e.g. to the organisation of partnership meetings; costs connected to the organisation of meetings between the Lead Beneficiary and Project Partners and/or stakeholders, Associated Partners;

- Translations and interpretation – from and to English, Hungarian and Croatian languages.

Generally, project preparation costs are to be considered eligible in case they have been incurred respecting the relevant legislation in force (e.g. laws on public procurement, laws on accounting), and they can be verifiable on the basis of original invoices and/or other accounting documents of equivalent value (receipts, vouchers etc.).

3.3.2.2 Staff cost The costs of staff are expenditures incurred connected to the personnel involved in the implementation of the project on behalf of the Project Partner(s) or the Lead Beneficiary. The staff should be directly employed by the Project Partner or Lead Beneficiary with a valid work contract. The employee can work full-time or part-time for the project. In instances where the given organisation does not have the adequate professionals to perform the tasks related to the project, they can employ/contract external experts for these tasks. These costs shall be budgeted under the cost category Services related to project management. Staff costs shall be clearly connected to the project and its activities. Staff cost as a main budgetary line is divided into two sub-categories. Their planning shall be in accordance with the following:

a) Salary of staff (direct project management) Direct project management costs are expenditures incurred by the project staff directly involved in the administrative and daily implementation of the project activities. These costs include the wages of the project manager, the financial


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manager, the project assistant etc. but do not refer to experts necessary for the implementation of the project, for example a technical supervisor or other experts employed by the Project Partners and the Lead Beneficiary; Note: Please pay attention to the fact that the total management costs shall not exceed 10 per cent of the total eligible project costs of each Project Partner. Total management costs include the costs incurred under the budgetary line Salary of staff – direct project management, as well as the costs under the budgetary line Service – services related to project management.

b) Salary of staff (team members) Team members’ costs are expertise-type expenditures that are directly related to the project activities and that are incurred by the employees of the Project Partner(s) or of the Lead Beneficiary. These types of costs are, among others, the cost of personnel in charge with the preparation of a study or conducting research work, or the cost of other expertise necessary for the implementation of the project. Other examples involve trainers working on the project and employed by one of the Beneficiary organisations.

Expenditures accountable as staff cost are the following: - Gross salaries (including income taxes) and related contributions (e.g.

employers’ affixes) for persons employed by organisations involved in the project as Project Partner(s) or as Lead Beneficiary;

- Proportional wages (parts of wages) are eligible in connection to employees working part-time on project activities, having other parts of their working time devoted to other operations;

- Allowances in case they are due on the basis of the employment contract. Personnel costs are eligible under the following conditions: - The reimbursable personnel costs must be proportional with the qualification of

the human resources involved, with the amount of work dedicated and with the salaries for similar categories of work in the respective Participating Country, furthermore those usual at the Beneficiary organisation;

- They must be documented and traceable; - They must have a legal basis (contracts, agreements etc.).


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The remuneration of civil servants is eligible exclusively if it is related to the project activities and not related to their usual day-to-day management tasks and statutory responsibilities, furthermore if national level legislations allow these costs to be reimbursed.

3.3.2.3 Travel and accommodation Travel expenses – including fares, accommodation and per diems – are eligible costs if they are incurred by the staff involved in the implementation of the project, being employed by the Project Partner(s) or by the Lead Beneficiary, performing tasks directly related to the project activities. Travel costs are eligible according to the relevant national legislation of Hungary and Croatia, respectively. As a general rule for travelling, the most economic way of transportation has to be used. In general, the following travel and accommodation costs are eligible, provided they are clearly connected to project implementation: - Travel cost of project staff – can include the following means of transportation:

a) Travelling by car – it is allowed to use a private or company car only if it is the most economic way of transportation and it is proven to be a time-saving solution;

b) Travelling by rail/bus/ship/plane – as a general rule the most economical and efficient way of transport should be used;

c) Local travel fares (bus, underground, taxi etc.); d) Insurance fees – to cover the costs of insurance for the whole trip.

- Accommodation costs – Accommodation and meal costs can be reimbursed if

they are in a reasonable price range and if the per diem does not cover them. - Per diems of the project staff – The per diems shall be defined by the employer.

They must not exceed the rate set by the European Commission (hereinafter referred to as the EC) on the following website: http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/. Per diems can be paid to project staff that travel abroad for the purpose of the


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project. Per diems generally cover meal, accommodation and local travel expenses. In case of receiving per diems other subsistence costs are not eligible.

Practical information: In case the per diem covers meal, accommodation and local travel, please fill in the per diem in the budget and leave accommodation costs empty. If the per diem does not cover accommodation, please fill in the per diem and the accommodation costs budget line, respectively. Important note concerning Croatia: According to the relevant national legislation in Croatia (Kolektivni ugovor za državne službenike i namještenike, NN 93/2008, for inland travel, and Odluka o visini dnevnice za službeno putovanje u inozemstvo za korisnike koji se financiraju iz sredstava državnog proračuna, NN 8/2006, for travelling abroad) it is possible to finance per diems in inland and abroad. In case you plan the travel connected to the project implementation, it is eligible but only applicable in accordance with the maximum per diem rate defined by the EC, as explained above. Based on this, in case the Croatian Project Partner / Lead Beneficiary plans to travel inland or abroad and the per diem does not cover accommodation, please fill in the per diem and the accommodation costs budget line respectively and separately, taking into the consideration that both: the per diem counted according to the Croatian legislation and the accommodation together cannot exceed the EC per diem rate. Please also note that in Croatia the Control Body for Croatia is in charge of technical issues related to the per diem costs, they will act as information sources for Project Partners / Lead Beneficiaries in relation to these issues.

Travelling costs of external experts shall be included in the service contracts and should be budgeted under the Service main budgetary line. Expenses of private consumption are not eligible as partial amounts of an invoice and of actual per diems and travel expenses.


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3.3.2.4 Service External services are costs incurred through the involvement of a third party who is contracted by the Project Partner(s) or by the Lead Beneficiary for the implementation of a project activity or a part of it. Services directly related to the project and subcontracted to a third organisation/person are eligible for the cost categories listed below under the following conditions: - The work of external experts is essential to the implementation of the project; - Rates charged by the external expert are reasonable and are in relation to the

level of experience and expertise, as well as to the quality of the service offered; - The selection of the experts is in compliance with the public procurement rules

and regulation in force; - The external expertise is not provided by a Project Partner, by the Lead

Beneficiary or by an Associated Partner. - The external expertise is not provided by experts who are concerned as owners

of / in the property of the organisation [this is a conflict of interests regarding PRAG chapters 2.3.6 (Other essential points) and 2.4.14 (Ethics clauses)].

The following cost categories can be taken into account: - Technical plans. - Studies, statistics, databases and researches – professional external expertise in

connection to the preparation of studies and other documents.

Please note that if an internal expert is already included in the budget at the line Staff cost, the same activity cannot be included at the external expertise costs and vice versa.

- Conferences, seminars – fees of lecturers/performers/trainers/experts. The

organisation of events includes also costs like the translation of documents, rental costs, catering etc. (All these costs should be budgeted under sub-budget line 4.3 in the Application Form.)

Activities closely related to the organisation of events can be externalised based on the activity type as well (e.g. transportation, translation, rental activities etc.). These costs shall be eligible only if they are not included in the costs of


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conferences and seminars, and in this case lists of participants have to be provided.

- Conferences, seminars, trainings (participants) – expenditure related to the participation of people on the events of the project (e.g. travel costs of members of the target group).

- Project events/meetings (for project team members and Project Partners).

(These cost should be budgeted exclusively under sub-budget line 4.5 in the Application Form.)

- Services related to project management – in case the Project Partner(s) or the

Lead Beneficiary do not have the required qualified personal/staff necessary for the management of the project, they have the possibility to outsource the activities or to hire one or more external expert in order to provide help or to manage the implementation of the project.

Note: Please pay attention to the fact that the total management costs shall not exceed 10 per cent of the total eligible project costs of each Project Partner. Total management costs include the costs incurred under the budgetary line Salary of staff – direct project management, as well as the costs under the budgetary line Service – services related to project management.

- Costs related to the implementation of procurement procedures – costs of public

procurement experts if they are directly linked to the project and are necessary for its implementation.

- Costs of supervisor of engineering. - Costs related to communication – costs related to all aspects of promotion,

visibility and publicity specific to the project, based on the rules included in Chapter 6.2.3 of the Guidelines.

- Other services – the type of expenditure must be defined in the project proposal

and has to be directly related to the project (e.g. property insurance).


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3.3.2.5 Equipment/Supply Purchase of equipment is eligible only if the items are essential and directly related to project implementation and if they are listed in the approved project budget. All equipment shall be necessary and shall exclusively be used for project implementation, having a clear contribution to the achievement of the project’s objectives. Supplies should be selected with regard to the relevant public procurement rules. This budget line can support the purchase of new equipment, as well as the rent of equipment. Costs related to second-hand equipment are not eligible according to Letter (f) of Paragraph (3) of Article 34 of the IPA Implementing Regulation. For example the following costs connected to equipment can be eligible: - Content-related equipment like laboratory equipment or special measuring

equipment; - Office equipment (purchase of computers, office furniture etc.) shall be eligible in

duly justified cases, if related to the project management and if necessary for the implementation of the project.

Costs of stationery (like paper, pencils), equipment and other supplies of small value (e.g. toner) should be budgeted under Administrative costs (Real costs) instead of Equipment/Supply.

3.3.2.6 Investment/Works - Construction of buildings, works and infrastructure – these costs comprise

expenditure related to construction activities. - Reconstruction, renovation of buildings, works and infrastructure – these costs

comprise expenditure related to works needed for the alteration, reconstruction, expansion of a used building.


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Please note that these costs are eligible only if the description of the Action targeted by the project contains activities connected to works components in the indicative list of eligible activities. For information on whether an Action supports the implementation of works components and on eventual thresholds in the project budgets, please refer to Chapter 3.2 of the Guidelines or (in case of tourism development projects) to Chapter 4 of the Handbook. These costs will be reimbursable if they are directly linked to project implementation. Construction shall be in accordance with all legal measures and codes (construction, hygienic and safety) in force in the respective Participating Country. The contractors shall be selected according to the applicable regulations on public procurement. Purchase of land is an eligible expenditure only under the following conditions: - The purchase of the land is indispensable for project implementation; - The cost of the purchased land must not exceed 10 per cent of the total eligible

project cost; - The land shall be evaluated by an independent expert (the land evaluation must

not be older than 6 months); - The purchase price must not exceed the price recorded in the land evaluation

document.

3.3.2.7 Administrative costs Administrative costs shall not exceed 10 per cent of each Project Partner’s total eligible budget. The following costs are eligible administrative expenditures in the frame of the cross-border Programme: - Legal costs – includes legal consultancy fees and notary fees if they are directly

related to and are necessary for project implementation. - Costs of the project bank account opened by the Lead Beneficiary – charges for

transnational financial transactions, bank service charges (account fee, bank statement) in case of projects where a separate bank account has to be used in connection to project implementation.


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Note that the Lead Beneficiary has to open a separate EUR bank account and all Project Partners are advised to open a separate bank account or sub-account for the purposes of the project. The Community funding will be reimbursed to the LB to the project bank account, and so will be the state contribution to the PP-s (where relevant). Please note that Croatian LB-s and PP-s have to take into consideration the national legislation related to the payment procedures (platni promet) inside the Croatian territory but the consequences of the national level payment procedures (e.g. exchange rate risks) cannot be covered from the administrative costs.

- Real costs – costs of stationery (like paper, pencils), equipment and other

supplies of small value (e.g. toner), costs of copying are eligible as real cost. Telephone, fax, postage costs are also eligible as real cost.

- Rental costs (except rent of land or existing buildings) – the cost of renting an

office is considered to be eligible if it is proved to be directly related to and necessary for the project implementation with a rental contract.

- Overhead costs.

Overheads are costs to which separate invoices cannot be related, but there should be a method of calculation identified to generate the amount attributable to the implementation of project from general invoices issued to the given Project Partner organisation. Overhead costs shall not exceed 5 per cent of each Project Partner’s total eligible budget and shall not exceed 25 per cent of the total staff costs in each Project Partner’s budget. Expenditures such as heating, electricity, lighting, service charges can be considered as overheads.

Project Partners will be required to justify the proportion of the overhead costs they are reporting within the project, providing a method of calculation on a yearly basis. The basis for the calculation will be the total overhead costs of the respective organisation. Proving documents regarding the payment and the proportion rate applied by Project Partners shall be available for controllers during the verification procedure.


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- Costs of permits – costs incurred in relation to permits required by national legislation.

3.3.3 Ineligible expenditure The following expenditures are not eligible under the Programme: � taxes (direct taxes, real estate taxes, real estate acquisition taxes, gifts taxes,

inheritance taxes and other duties), including value added taxes, o except for value added taxes in Hungary, if the following conditions are

fulfilled: � they are not recoverable by any means, � they are borne by the Project Partner / Lead Beneficiary, � they are clearly identified in the project proposal;

o value added taxes in Croatia are not eligible in any case (see Chapter 3.3.4 of the Guidelines);

� customs and import duties or any other charges; � rent or leasing of land and existing buildings; � purchase of existing buildings; � the purchase of land for an amount exceeding 10 per cent of the total eligible

project budget; � costs of works components that exceed the relevant limit set in the respective

Action; � fines, financial penalties and expenses of litigation; � operating costs; � second hand equipment; � bank charges

o except the charges for transnational financial transactions; � conversion costs, charges and exchange losses associated with any of the

component specific EUR accounts, as well as other purely financial expenses, o except the separate account to be opened by the Lead Beneficiary for the

purposes of the project – the bank charges for opening and administering the accounts are eligible;

� costs of guarantees and similar charges, o except the cost of guarantees provided by a bank or other financial

institutions, to the extent that the guarantees are required by Community or national legislation;


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� contributions in kind (e.g. free use of rooms, equipment or other facilities, unpaid voluntary work, generally any contribution without money flow);

� interest on debt; � debts and provisions for losses or debts; � commissions and dividends, profit payments; � purchase of business shares and stock exchange shares; � subcontracted activities increasing the cost of the project without adding

proportionate value to it; � subcontracted activities to the Lead Beneficiary / Project Partner / Associated

Partner of the same project; � subcontracts in which the payment is defined as a percentage of the total cost of

the project, unless such payment is justified by the Project Partners or by the Lead Beneficiary with reference to the actual value of the work or services provided (e.g. success fee);

� any expenditures not directly related to the project and associated with the Project Partners or the Lead Beneficiary;

� any costs – with the exception of preparation costs (see in Chapter 3.3.2.1, Preparation costs) – incurred before or beyond the project implementation period as defined in the Subsidy Contract (in Articles 2.1 and 2.2);

� any forms of double funding of expenditures: expenditure which is already supported by a Community or other national or international subsidy.

The list of ineligible expenditures is not exhaustive. Without prejudice to the provisions of Paragraphs (1) to (4) of Article 89 of the IPA Implementing Regulation, further rules on eligibility of expenditure may be laid down by the Participating Countries of the cross-border Programme.

3.3.4 Special eligibility rules for costs in Croatia In the Programme the main activity of the Control Bodies (CB) is the verification of the expenditures at partner level in the respective national territory. VAT (Porez na dodanu vrijednost, PDV) expenditures/exemptions occurred during the programming period in the Republic of Croatia are addressed by the CB in the Republic of Croatia, according to the respective pieces of legislation4 as well as the

4 Pravilnik o porezu na dodanu vrijednost (OG 149/2009; www.nn.hr), Pravilnik o izmjenama i dopunama Pravilnika o porezu na dodanu vrijednost (OG 89/2011).


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procedures in Croatia, defined in the official document called Guidelines for Croatian Project Partners (in Croatian: Upute za hrvatske projektne partnere IPA prekograničnog programa Mađarska-Hrvatska 2007.-2013.), available on the Programme website: http://www.hu-hr-ipa.com/en/download/partner-level-guidelines-hungary-and-croatia). According to the present legislation and procedures in Croatia, VAT is considered as non-eligible cost in the EU-funded programmes. Project Partners / Lead Beneficiaries in the Republic of Croatia are paying the costs to the contractors (consultants) related to the project without VAT and without customs. The guidelines to the procedure of issuing the VAT exemption for the Project Partners / Lead Beneficiaries from the Republic of Croatia is handled by the CB in Croatia, designated in the Ministry of Regional Development, Forestry and Water Management. Project Partners / Lead Beneficiaries from Croatia have to settle VAT exemptions related to their project costs with the respective CB in Croatia accordingly (Guidelines for Croatian Project Partners, latest version of July 2011, section: Porez na dodanu vrijednost – PDV, page 16). Project Partners / Lead Beneficiaries from the Republic of Croatia will only indicate net amount in the budget table, without the VAT. Note: Project Partners / Lead Beneficiaries in the Republic of Croatia are recommended to wait with the starting of procurements which include VAT until the VAT exemption for their project part is issued by the CB in Croatia, otherwise the VAT part of the costs cannot be deemed to be eligible.

3.3.5 Revenues generated by the projects In line with Article 35 of the IPA Implementing Regulation, if a project generates revenue it must be deducted from the eligible costs of the relevant project activity in full or pro-rata, depending on whether it was generated entirely or partly by the co-financed project activity. Revenues have to be taken into account that are earned by a project, during the period of its co-financing (i. e. from the start- to the end date of eligibility period of expenditure for the project), from sales, rentals, services, enrolment fees or other equivalent receipts with the exception of contributions from the private sector to the financing of projects.


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Where it is possible to objectively estimate the revenues in advance, projects should indicate the amount of possible revenues in the AF. Although Community funding is calculated on the basis of the total eligible expenditures after deduction of any revenue generated during the project period, contracts with Lead Beneficiaries will be stipulated without revenues taken into account. Realised net revenues will be deducted from the eligible costs of the relevant project activity, where net revenue is equal to the difference between the sum of revenue and operating costs. Project generated revenues have to be reported regularly by the Project Partners and by the Lead Beneficiary in the progress reports and in the final report and they have to be verified by the designated controllers at partner level. The Beneficiaries accept that the subsidy can under no circumstances result in a profit for themselves and that it must be limited to the amount required to balance income and expenditure for the project activity concerned. These provisions shall not apply to project activities that are subject to the rules on State aid related to public service compensation (see rules on State aid under title Altmark Trans, SGEI5 in Chapter 4.5.3.9 of the Guidelines).

4. SUBMISSION RULES

4.1 SUBMISSION TECHNICALITIES

4.1.1 Content of the application package

• Call for Proposals, • Guidelines for Applicants, • Handbook to Tourism Projects • Guidelines for filling in the Application Form (Annex 1 to the Guidelines), • Application Form,

5 Commission Decision 2005/842/EC on the application of Article 86 (2) of the EC Treaty to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest.


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• Declarations: o Declaration of the Lead Beneficiary, o Declaration of the Project Partner, o State aid declaration o Partnership Statement, o Declaration on the availability of own contribution, o Declaration on Value Added Tax (only relevant in Hungary),

• Checklist, • Assessment grid templates (Annex 2 and 3 of the Guidelines), • Assessment Summary template (Annex 4 of the Guidelines), • State aid rules per Activities (Annex 5 to the Guidelines), • Draft Subsidy Contract (Annex 6 to the Guidelines): for information

purposes only; the right of applying changes to the document is reserved, • Model Partnership Agreement (Annex 7 to the Guidelines): for information

purposes only; the right of applying changes to the document is reserved. The whole application package and other relevant documents (e.g. the Programme Document) can be reached on http://www.hu-hr-ipa.com.

4.1.2 Language of the CfP and of the project proposals The AF has to be filled in in English. Exceptions are certain supporting documents: they are to be submitted in the national languages (Hungarian or Croatian), depending on the Project Partner / Lead Beneficiary (see Chapter 4.2 of the Guidelines).

4.1.3 Submitting the project proposals Project proposals can be handed in personally by a delegated/accredited representative or can be sent by post with registered mail service or by courier service. The delivery deadline of project proposals in hard copy is:

12 March 2012, 17.00 p.m.


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a) Submission by personal delivery Project proposals should be submitted personally to the following delivery address:

HU-HR Joint Technical Secretariat VÁTI Nonprofit Ltd.

H-1016 Budapest, Krisztina krt. 99.

Reference number of the Call for Proposals: HUHR/1101

The technical details on how to submit project proposals on the last day of the deadline will be communicated on the Programme homepage: http://www.hu-hr-ipa.com. b) Submission by post with registered mail service or by courier service Project proposals should be sent to the following postal address:

HU-HR Joint Technical Secretariat VÁTI Nonprofit Ltd.

H-1016 Budapest, Gellérthegy u. 30-32.

Reference number of the Call for Proposals: HUHR/1101 The project proposals have to be received by the JTS (in case of personal delivery) or posted by the Lead Beneficiary (in case of postal or courier service submission) by the above indicated deadlines at the latest. The keeping of the deadline will be closely observed in case of all project proposals, regardless of the way of submission. In case of personal delivery the date of the ‘Proof of receipt’ issued by the JTS, in case of postal or courier service submission the date on the stamp of the post office where the package was submitted or the record of the courier on the time of submission proves the keeping of the submission deadline.


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Please note that project proposals which are handed in through any other channel (fax or e-mail) or are sent to the wrong address or after the given deadline will be rejected automatically.

4.1.4 Approval of data management / Privacy policy The Project Partners and the Lead Beneficiary, by submitting the project proposal to the present Call for Proposals, duly consent to the fact that the Data Manager (Hungarian National Development Agency) and the Technical Data Processor (VÁTI Nonprofit Ltd.) will manage all the personal data included in the application package and provided in the contracting or project implementation phase, in particular with regard to the data managed in the monitoring and information system (IMIS 2007-2013). Hungarian Act LXIII of 1992 on the Protection of personal data and transparency of public data shall apply to the protection of personal data and to the disclosure of information of public interest. The data are managed upon the voluntary consent of the Project Partner / Lead Beneficiary, according to Letter a) of Paragraph (1) of Article 3 of the above-mentioned Act.

4.1.5 Completeness of the project proposal The project proposal has to be sent in one package, the envelope/package has to be sealed and properly marked in such a way that it includes all these elements:

• The address to which the project proposal is submitted (see above in Chapter 4.1.3 of the Guidelines)

• The full name and address of the Lead Beneficiary • The reference number of the Call for Proposals – HUHR/1101 (see also

above in Chapter 4.1.3 of the Guidelines) • The acronym of the project proposal (as indicated in the AF) • The wording: »PROJECT PROPOSAL« • The wording: »Do not open« – 3rd Call for Proposals Hungary-Croatia

IPA Cross-Border Co-operation Programme 2007-2013 Prior to preparing the project proposal, please read all the documents of the application pack and check which supporting documents need to be submitted along with your project proposal (see Chapter 4.2 of the Guidelines). Request


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from your Project Partners to submit you all necessary data and documents in due time, only in this way will you be able to efficiently draft a complete project proposal. It is important to stress that the Lead Beneficiary bears the responsibility for the content of the project proposal. Project Partners and Lead Beneficiaries must keep strictly to the format of the AF as provided and must attach the required supporting documents (see Chapter 4.2 of the Guidelines). The sheets of the AF must be filled in, printed and attached to each other in the given order. The supporting documents have to follow each other in the sequence as provided in the list of Chapter 4.2.1.1. Please insert cover pages between the types of supporting documents. Documents which are not relevant for the given project proposal should be indicated as ‘Not relevant for the present project proposal’ on their respective cover sheets. Please find an example for a sequence of documents to be submitted (and their cover sheets):

I) Cover sheet for Establishing documents (i) Cover sheet for Establishing documents of the LB

- Establishing documents of the LB (ii) Cover sheet for Establishing documents of PP1

- Establishing documents of PP1

II) Cover sheet for Extracts from register (i) Cover sheet for Extract from register of the LB

- Extract from register of the LB (ii) Cover sheet for Extract from register for PP1

- Extract from register for PP1 etc.

The complete project proposal must be printed (one original and two identical copies), has to be bound, page numbered, must be divided into chapters and must have a table of contents at the beginning. The legally authorised representative of the Lead Beneficiary is to certify the AF on AF Sheet 16. Please do not forget to label the folders/parts of your project proposal: please indicate on each folder/part the project acronym and whether the item is the original project proposal or one of the two compulsory copies. Please note that it is the


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original version of the project proposal that has to contain all original documents – the copy versions can be entirely photocopies. Some documents of the application package have to be recorded in electronic form (on CD-Rom, DVD or Pen drive) as well. The list of documents to be handed in electronically can be found in Chapter 4.2.1.2 of the Guidelines. The labelling of the electronic device should contain the following information:

• Full name of the Lead Beneficiary • Reference number of the Call for Proposals – HUHR/1101 (see also

above in Chapter 4.1.3 of the Guidelines) • Acronym of the project proposal (as indicated in the AF)

Please note that it is the duty of the Lead Beneficiary to assure that the content of the printed project proposal is the same as the content of the electronic version. It is important to note that in case of discrepancies between the printed and electronic version, the original version of the printed and certified project proposal prevails. In case of questions concerning the compliance with the relevant deadline, the arrival date (in case of personal delivery) or the date of stamp (in case of postal / courier service delivery) of the original version of the printed and certified project proposal prevails. The AF has to be completely filled in in all its sections in English. Hand written Application Forms will not be considered. Please note that all declarations have to be certified by the legally authorised representative of the particular organisation issuing the declaration. Please respect the rules that apply to the order of signatures at your organisation. The declarations (as well as the AF) will be cross-checked during formal assessment with the specimens of signature in order to ascertain the authorisation of the signatory person(s) to certify the individual document.

4.1.6 Rejection of the project proposal

Please note that the column ’Cmpl’ in the formal and eligibility assessment grids (Annex 2 of the Guidelines) stands for the possibility of completion. If the column is crossed it means that in case the criterion is not fulfilled the


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project proposal will be rejected without the possibility of completion. The project proposal will be rejected if any of the requirements listed below is not fulfilled:

• The project proposal has been submitted on time. • The project proposal contains the certified AF and the following essential

supporting documents: (i) declaration of the Lead Beneficiary; (ii) declaration(s) of the Project Partner(s); (iii) Partnership Statement. (For the definition of ‘certified by the legally authorised representative of the respective organisation’, please read the definition in Chapter 4.2.1 of the Guidelines.)

• The AF published for the present CfP has been used for the project proposal. • The AF has been filled in on a computer and not by handwriting. • The AF has been filled in in English (technical terms in national languages are

acceptable). • The budget has been prepared in the format presented in the AF and has

been calculated in EUR. • The structure of financing of the project proposal is in line with Chapter 2.2 of

the Guidelines: size of subsidy from Community funding, minimum share of own contribution.

• The period of implementation of the project is the same or above the minimum- and does not exceed the (Action-dependant) maximum length set out in the Call for Proposals (Chapter 2.2, Table 2 of the Guidelines).

• The project proposal was submitted to the appropriate Action. • Next to the Lead Beneficiary at least one cross-border Project Partner eligible

for funding participates in the project. • The project fulfils minimum two criteria of a joint project (see Chapter 4.3 of

the Guidelines). • Concerning Action 1.2.3, the destination(s) / thematic route(s) of minimum

three settlements are involved in the project. Please note that rejected project proposals will not be returned to the Lead Beneficiaries, neither will project proposals recommended for funding. The project proposals that fulfil the conditions of the formal and eligibility check will proceed to quality assessment.


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4.1.7 Handling of complaints The Lead Beneficiary may file a complaint against a decision of the programme implementing structures that regards the rejection of a project proposal. The complaint can be filed in case the decision:

- infringes any provision stipulated in the Regulations of the European Union; - represents an infringement of the CfP.

The complaint has to be: - written in English;

- addressed to the Head of the MA and sent by post or courier service to the address indicated in the letter of rejection;

- filed by the legally authorised representative of the Lead Beneficiary; - posted within 7 calendar days following the notification regarding the rejection of the project proposal6 – unless otherwise regulated in the letter of rejection;

- containing clear and articulate reference to the nature of the infringement based on European Union Regulations or the CfP.

All complaints shall be considered and answered by the MA as the responsible body for handling complaints within 20 calendar days following the receipt of the complaint. This deadline can be extended once with an extra 45 calendar days in case further investigations are needed. The Lead Beneficiary is notified about the extension of the deadline. A complaint shall be automatically rejected, without any examination, in case: - it was not filed by the person entitled to submit a complaint;

- it was posted after 7 calendar days following the notification regarding the rejection of the project proposal – unless otherwise regulated in the letter of rejection;

- it does not contain clear and articulate reference to the nature of the infringement based on European Union Regulations or the CfP;

6 The date of the notification is proven by the signed and returned postal proof of delivery.


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- the subject and content of the complaint correspond with a complaint already filed and rejected;

- the complaint was not sent by post or courier service (i. e. via fax or e-mail) or was not sent to the address indicated in the letter of rejection.

4.2 DOCUMENTS TO BE SUBMITTED Beside the AF it is necessary to submit a number of supporting documents to make the project proposal complete. The format of some of these documents is prescribed by the CfP (see annexes, part of the application package), others do not have a set format but are determined by legislation and by everyday practice. In the following sub-chapters you will find the list of documents to be submitted along your AF, furthermore some detailed rules concerning documents to be submitted in case of projects with works components. Please observe closely the documents that cannot be sent in as completion (see column ‘Completion possible’ of the table under Chapter 4.2.1.1) – these documents also have been marked with bold letters. Furthermore, please be in line with the rules laid down in Chapter 4.1.5. of the Guidelines, with special respect to the fact that every project proposal has to contain one original and two identical copies of the project proposal in printed version (meaning AF plus supporting documents), furthermore one electronic data device (CD-Rom, DVD or pen drive).

For the names of establishing documents per types of organisations please refer to Appendix 2 of the Guidelines. When filling in the required declarations and statements (see documents to be submitted No. 7, 8, 9, 10 and 15), please follow the instructions contained in the footnotes of these documents.


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4.2.1 List of documents to be submitted

In the table below, ‘original document’, ‘certified by the legally authorised representative’, ‘issued by’, ‘the translation of an extract into English’ and ‘in conformity with the original document’ are to be understood as follows: - ‘original document’: prepared or officially issued by a

person/organisation, having the original certification on it (meaning that the ink of the signature is blue and not black as in case of photocopies);

- ‘certified by the legally authorised representative of the respective organisation’: signed by that person / those persons and in that way as authorised in the establishing document and/or in the specimen of signature to sign in the name of the organisation (Project Partner or Lead Beneficiary);

- ‘issued by’: certified by the institution/person producing or providing the document;

- ‘the translation of an extract into English’: the sentence ‘In conformity with the original document.’ has to be indicated on the translation which has to be certified by the legally authorised representative; extract means that the key pieces of information are filtered from the given document.


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4.2.1.1 List of documents to be submitted alongside the printed AF

Name of document

Description Compul-sory

Completion possible

Language Original or copy

Basic documents for all project proposals

1. Checklist

Checklist in the prescribed format – certified by the legally authorised representative of the Lead Beneficiary

Yes Not relevant In English One original document

2. Establishing documents of the Project Partners and of the Lead Beneficiary

(please read Appendix 2 of the Guidelines)

Statutes, articles of association, deed of foundation, establishing resolution or law etc. – certified by the legally authorised representative of the Project Partner / Lead Beneficiary

Yes Yes

In the original language, with the translation of an extract into English

One copy of the document in

original language and one original extract into

English for every Project Partner / Lead Beneficiary (both documents

have to be certified)

3. Extract from Extract from register / certification Yes Yes In the original One original


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Name of document


Completion possible


register

(please read Appendix 2 of the Guidelines)

of legal status for all Project Partners and the Lead Beneficiary – issued by the relevant registering authority – must not be older than 30 days at the time of submission

language document for every Project Partner and for

the Lead Beneficiary

4. Certification proving that the head of the branch office is an authorised representative of the organisation to act in connection to the implementation of the relevant project part

In case the regional / local branch of the Project Partner / Lead Beneficiary is not a legal entity and the national / regional organisation applies for funding – certified by the legally authorised representative of the Project Partner / Lead Beneficiary – it has to cover the whole implementation period of the project and has to contain proof that the head of the branch office will be entitled to act on behalf of the organisation in everyday project management matters

Only if relevant

Yes In the original language

One original document for every affected organisation

5. Latest In case an association applies for Only if Yes In the original One copy for


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Name of document


Completion possible


accepted detailed activity report

funding through its regional / local branch (member association) which is not a legal entity – the detailed report has to cover the activities of the last closed year

relevant language every affected organisation, certified by both the head of the local unit and the legally authorised representative of the association

6. Original specimen of signature of the legally authorised representative(s) of the Project Partner(s) and of the Lead Beneficiary

To be submitted for the legally authorised representative(s) of all Project Partners and of the Lead Beneficiary – optional in case of Associated Partners (only to be submitted in their case if they have certified the Partnership Statement)

In case of local governments in Hungary, specimens of signature issued by the monetary institution handling the local government’s account (banki aláíró karton) can also be accepted.

Yes Yes In the original language

One original document or one copy certified by a public notary for

every representative


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Name of document


Completion possible


In cases where in Croatia the organisation does not have such a document for its signatories, a statement about this, written in original language, can be accepted. The referenced statement also has to include that the signature provided on it is the signature of the specified person as it will be used during the course of submitting the project proposal and during the implementation of the project. The statement has to be certified by a public notary (javni bilježnik).

In case of mayors, county prefects and ministers in Croatia, the specimen of signature does not have to be provided.


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Name of document


Completion possible


7. Declaration of the Lead Beneficiary

Declaration in the prescribed format, compulsory to be submitted by the Lead Beneficiary – certified by the legally authorised representative of the Lead Beneficiary – please follow footnote of the declaration when filling in – please also fill in point 4.2 of the declaration on de minimis aid

Yes No7 In English One original document

8. Declaration of the Project Partner

Declaration in the prescribed format, compulsory to be submitted for every Project Partner separately (except for Associated Partners) – certified by the legally authorised representative of the Project

Yes No8 In English

One original document for every Project Partner (except for Associated Partners)

7 Please note that a completion of the document is only possible in a case where the prescribed format has been respected and the non-compliance is only due to misspellings, missing data etc. In case of declarations that have been submitted in a format other than prescribed by the application package, the project proposal has to be rejected.

8 See footnote No. 7.


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Name of document


Completion possible


Partner – please follow footnote of the declaration when filling in – please also fill in de minimis aid amount in section ‘Stipulations concerning State aid’ of the declaration

9. State aid declaration

Declaration in the prescribed format, compulsory to be filled in and to be submitted for every Project Partner and for the Lead Beneficiary separately – certified by the legally authorised representative of the organisation

Yes Yes In English

One original document for every Project Partner and for

the Lead Beneficiary

10. Declaration on the availability of the own contribution

Declaration in the prescribed format, compulsory to be submitted for every Project Partner and for the Lead Beneficiary separately – exceptions are a) Associated Partners from both countries; b) organisations that are 'központi

If relevant, see

Chapter 2.2 of the

Guidelines

Yes In English

One original document for every Project Partner and for

the Lead Beneficiary (for the exceptions see column


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Name of document


Completion possible


költségvetési szerv (311-es vagy 312-es gazdálkodási forma kód)’ or ‘nem költségvetési szerv formában működő közszféra szervezet’ (see ESA ’95) in Hungary; and c) organisations with private entity (non-budgetary organisations) in Croatia – the document has to be certified by the legally authorised representative of the Project Partner / Lead Beneficiary (please follow footnote of the declaration when filling in)

For private non-profit entities from Croatia a different declaration has to be drafted and submitted on the fact that due to their private non-profit status there is no obligation for them to make available own contribution for their project part.

‘Description’ to the left)


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Name of document


Completion possible


11. Partnership Statement

Statement in the prescribed format, compulsory to be filled in by the Project Partners and the Lead Beneficiary (optional to fill in for Associated Partners) and to be submitted by the Lead Beneficiary – certified by the legally authorised representatives of the Project Partners and of the Lead Beneficiary – all original signatures have to be provided on the same document

Yes No In English

One original document bearing

signatures from all Project Partners and from the Lead Beneficiary

(optionally from Associated Partners)

12. Curriculum Vitae (CV) of the project team members

CV shall be submitted for each project team member (staff costs/team members, see Chapter 3.3.2.2 b) of the Guidelines), indicating the position to be fulfilled in the project

It is recommended to use the Europass CV format, available for

Yes Yes In English

One original document for every project team member


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Name of document


Completion possible


download from:

http://europass.cedefop.europa.eu/

13. Attendance sheet and minutes of the preparatory meeting

If relevant, documents proving that at least one meeting was organised between the Project Partners / Lead Beneficiary before submitting the project proposal – one minutes and one attendance sheet per meeting – certified by the legally authorised representative of the Lead Beneficiary

If relevant in order to meet the require-ments of ‘joint

develop-ment’ (see Chapter 4.3

of the Guidelines)

Yes

Attendance sheet in original

language or in English, minutes in

English

Original documents or certified copies

14. Joint survey on demand

If relevant – certified by the legally authorised representative of the Lead Beneficiary – in case of so-called soft projects

If relevant in order to meet the require-ments of ‘joint

develop-ment’ (see

Yes In English One original document


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Name of document


Completion possible


Chapter 4.3 of the

Guidelines)

15. Terms of reference for procurement with suspension clause

If relevant – certified by the legally authorised representative of the organisation using the tender procedure – in case procurement procedures with suspension clause have already been initiated/managed

If relevant Yes In English Original

documents or certified copies

Documents relevant in connection to Hungarian project parts of project proposals

16. Declaration on Value Added Tax (VAT)

Declaration in the prescribed format, compulsory to be filled in by the Hungarian Project Partners and by the Hungarian Lead Beneficiary (except for Associated Partners) – certified by the legally authorised representatives of the Hungarian Project Partners and of the Hungarian Lead Beneficiary

Yes Yes In English

One original document for

every Hungarian Project Partner and for the

Hungarian Lead Beneficiary (except for Associated Partners)


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Name of document


Completion possible


(please follow footnote when filling in)

17. Declaration of support of the territorially competent National Park Directorate

In case of nature conservation projects concerning NATURA 2000 sites and protected areas where the National Park Directorate is not included in the project partnership – certified by the legally authorised representative of the National Park Directorate

If relevant Yes In the original language

One original document for every National Park Directorate concerned

18. Declaration of support of the territorially competent Environmental and Water Directorate

In case of water management projects where the Environmental and Water Directorate is not included in the project partnership – certified by the legally authorised representative of the Environmental and Water Directorate


One original document for

every Environmental and Water Directorate concerned

Documents relevant in connection to Croatian project parts of project proposals


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Name of document


Completion possible


19. Document issued by the Central Bureau of Statistics (Državni zavod za statistiku)

Obavijest o razvrstavanju poslovnog subjekta prema NKD-u 2007, obligatory for all Project Partners and Lead Beneficiaries from Croatia – certified by the legally authorised representative of the Croatian Project Partner / Lead Beneficiary


One copy for every Croatian Project Partner and for the

Croatian Lead Beneficiary

20. Declaration of support of the territorially competent County Environmental Management Authority (Županijska javna ustanova za upravljanje zaštićenim dijelovima prirode / Upravni odjel županije zaštitu

In case of nature conservation projects concerning protected areas where the County Environmental Management Authority is not included in the project partnership – certified by the legally authorised representative of the County Environmental Management Authority

In some cases the document will be issued by a department of the County administration.


One original document for every County Environmental Management Authority (or County

department) concerned


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Name of document


Completion possible


okoliša i prirode)

21. Declaration of support of the territorially competent Water Directorate

In case of water management projects where the Water Directorate is not included in the project partnership – certified by the legally authorised representative of the Water Directorate


One original document for every Water Directorate concerned

Supporting documents in case of all projects with works components

22. Feasibility assessment

One feasibility assessment for every individual works activity (investment) that exceeds 100.000 EUR as planned in the project part of the Project Partner / Lead Beneficiary – certified by the legally authorised representative of the Project Partner / Lead Beneficiary implementing the investment

For the recommended content please consult Appendix 3 of the

If relevant Yes In English

One original document for every relevant works activity


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Name of document


Completion possible


Guidelines.

23. Land or building registration certificate (tulajdoni lap, ZK uložak)

Land or building registration certificates – certified by the legally authorised representative of the Project Partner / Lead Beneficiary (original documents do not have to be certified) – one document per item (land, building) – must not be older than 30 days at the time of the submission



24. Necessary documentation about proof of ownership of land or buildings

In line with Chapter 4.2.3 of the Guidelines


As requested in Chapter 4.2.3 of the Guidelines

25. Documents supporting the financial aspects of construction activities

Detailed cost estimation by type of work, issued by a designer, indicating the main activities and within these the unit prices and the costs of materials and works




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Name of document


Completion possible


or

Detailed price quotation issued by a contractor, indicating unit prices and the costs of materials and works

– certified by the legally authorised representative of the Project Partner / Lead Beneficiary planning to implement the works component

26. Construction plans (engineering plans, descriptions)

Construction plan submitted for the building permit

or

In case the works activity is not subject to permission, the Project Partners / Lead Beneficiary should submit the technical description (műszaki leírás), the diagrammatical plan (vázrajz) and the general plan of the building site (átnézeti helyszínrajz) with




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Name of document


Completion possible


the lot number(s) indicated

– certified by the legally authorised representative of the Project Partner / Lead Beneficiary planning to implement the works component

27. Building permits

or

Documents certifying the exemption of the construction from building permit

Building permits, if already obtained

or

Notification of the procedure initiated for obtaining the building permit, certified by the respective authority in Hungary / responsible body in Croatia (authority / body responsible for issuing building permits)

or

Declaration certifying the exemption of the construction from building permit: issued by the designer or by the respective

Yes Yes


Original documents or

copies certified by a public notary, plus original extracts into English


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Name of document


Completion possible


authority in Hungary; or issued by the responsible body in Croatia

28. Environmental documentation of the investment in Hungary

Environmental permits

or

Certification that the Project Partner / Lead Beneficiary has initialised the assessment process, certified by the respective authority in Hungary (authority / body responsible for issuing environmental permits)

or

Declaration that the conduction of an environmental assessment or the attainment of environmental permits is not relevant, issued by the designer or by the respective authority in Hungary

Yes

(if there is a works

component on the

Hungarian side)

Yes



copies certified by a public notary, plus original

extracts in English

29. Environmental documentation of the investment in

Original approval of the responsible body for the acceptance of the intervention in

Yes

(if there is a Yes

In the original language, with the translation of an


copies certified by


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Name of document


Completion possible


Croatia the environment (Rješenje o prihvatljivosti zahvata na okoliš)

or

Certification of the responsible body in Croatia that the Project Partner / Lead Beneficiary has initialised the assessment process (or if it is the case: request of the Project Partner / Lead Beneficiary for exemption from environmental impact Assessment)

or

Declaration of the responsible body in Croatia that the conduction of an environmental assessment is not relevant according to the relevant national legislation in Croatia (Uredba o procjeni utjecaja zahvata na okoliš, OG 67/2009, 64/2008, http://www.nn.hr )

works component on the Croatian side)

extract into English a public notary, plus original

extracts in English


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Name of document


Completion possible


30. Photo documentation

The scene of the works activities has to be documented on photos – every photograph has to be identifiable through the indication of lot number and/or street name and house number

Yes Yes Not relevant Original

photographs or photocopies

31. Land evaluation by an independent expert

Necessary in cases where land is to be purchased from the project – to be issued by an independent expert – must not be older than 6 months at the time of submission

If relevant Yes


One original document plus an original extract in

English

32. Statement on cultural heritage in Croatia

Statement of the Croatian Project Partner / Lead Beneficiary whether the works component of the project is affecting the cultural heritage – certified by the legally authorised representative of the Croatian Project Partner / Lead Beneficiary planning to implement the works component


One original document for every relevant works activity


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Important: Please note that supporting document No. 2 (establishing documents of the Project Partner and of the Lead Beneficiary) and No. 3 (extract from register) are requested to verify the eligibility of the Project Partners / Lead Beneficiaries. In order to be suitable for judging eligibility issues of individual organisations, documents No. 2 and 3 have together to contain the following pieces of minimum information:

- The organisation is a legal person. - The organisation is of non-profit nature. - The organisation has been operating for at least one year before project submission. - The headquarters is in the eligible programme area. - In case of branch office applying, the existence and operation, location etc. of the branch office.


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4.2.1.2 Documents to be submitted on the electronic data device (CD-Rom, DVD or pen drive)

Name of document

Description Compulsory Completion possible

Basic documents

1. Application Form*

One Excel file, identical in content with the AF submitted on paper, in English

Please be sure to save the AF into a .xls file, instead of .xlsx or any other format

Yes Yes

2. Curriculum Vitae (CV) of the project team members

CV for each project team member (staff costs/team members, see Chapter 3.3.2.2 b) of the Guidelines), indicating the position to be fulfilled in the project – one Word or PDF file per CV – in English

Yes Yes

3. Minutes of the preparatory meeting

Minutes of at least one meeting that was organised between the Project Partners / Lead Beneficiary before submitting the project proposal – one Word file per meeting – in English

If relevant (see Chapter 4.3 of the Guidelines)

Yes

4. Joint survey on demand

Can be relevant in case of so-called soft projects – one Word or PDF file per survey – in English

If relevant (see Chapter 4.3 of the Guidelines)

Yes

Supporting documents in case of projects with works components


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Name of document

Description Compulsory Completion possible

5. Feasibility assessment (for the recommended content please consult Appendix 3 of the Guidelines)

One Word or PDF file per investment – in English

If relevant Yes

6. Photo documentation

The scene of the works activities has to be documented on photos – folder with JPG or other widely known image files (from digital camera or scanned from pictures)

Yes Yes

* Please note that the electronic version of the AF has to be in the Excel format as provided in the application package. Other formats (Word, PDF or other files) cannot be accepted.

4.2.2 Details on documents to be submitted in case of projects with works components Investment type projects with works components show more complexity as to the documentation to be handed in to the JTS than so-called soft projects. During project assessment the JTS has to ascertain that the requirements posed by the national legislation of the relevant Participating Country have been met since this is a prerequisite for concluding the Subsidy Contract with the Lead Beneficiary of a selected project. Based on the above, in case of project proposals with works components the details about documents to be submitted as parts of the project proposal as listed in Chapter 4.2.1 of the Guidelines are described below, with special regard to the Croatian legal background:


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1. feasibility assessment (megvalósíthatósági tanulmány) – see Appendix 3 of the Guidelines for the requirements as to the content;

2. land or building registration certificates (tulajdoni lap),

in Croatia the Zemljišno knjižni uložak (ZK uložak), issued by the respective Municipality court (Općinski sud);

3. detailed cost estimation, issued by a designer (tervezői költségbecslés),

indicating unit prices and the costs of materials and works; or detailed price quotations (árajánlat) related to construction activities, issued by a contractor, indicating unit prices and the costs of materials and works;

4. construction plans (tervdokumentáció) submitted for the building permit (építési

engedély); or in case works activity is not subject to permission: technical description (műszaki leírás), diagrammatical plan (vázrajz) and general plan of the building site (átnézeti helyszínrajz) with the lot number(s) indicated,

in Croatia the scale of plans is dependable on the type of the permit for buildings – please consult following legal basis: Zakon o prostornom uređenju i gradnji (NN 38/2009, 76/2007, http://www.nn.hr ), Section III. Gradnja (Building);

5. notification of the procedure initiated for obtaining the building permit, certified by

the respective authority: original document or copy certified by a public notary; or in case the activities are not subject to permission, a declaration certifying the exemption of the construction from building permit, issued by the designer or by the respective authority (or issued by the responsible body in Croatia), and certified by the duly authorised representative of the respective organisation (igazolás, hogy az építkezés nem engedélyköteles), in Croatia the notification of the procedure initiated for obtaining the building permit has to be in line with the legal basis in Croatia: Zakon o prostornom uređenju i gradnji (NN 38/2009, 76/2007, http://www.nn.hr ), furthermore in case of the restoration of cultural heritage, all permits have to be submitted according to the respective Croatian law about protecting the cultural heritage: Zakon o zaštiti i očuvanju kulturnih dobara (NN 69/1999, http://www.nn.hr ), Zakon o izmjenama i dopunama Zakona o zaštiti i očuvanju kulturnih dobara (NN 151/2003, 87/2009, http://www.nn.hr ),


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the legally binding building permit is a prerequisite for concluding the Subsidy Contract;

6. environmental impact assessment (környezeti hatásvizsgálat) and environmental

permits (környezetvédelmi engedélyek), if relevant (for the list of activities that involve compulsory environmental impact assessment in Hungary, see Government Decree No. 314/2005 of 25 December 2006) – if not yet attained, certification of the authority conducting the environmental impact assessment that the Project Partner / Lead Beneficiary has initialised the assessment process; or declaration that that the conduction of an environmental assessment or the attainment of environmental permits is not relevant in the respective case; the legally binding building permit will contain the results of environmental assessment, in Croatia: for the list of activities that involve compulsory environmental impact assessment in Croatia, please check the relevant legal basis [Uredba o procjeni utjecaja zahvata na okoliš (OG 67/2009, 64/2008, http://www.nn.hr )]. The prerequisite for concluding the Subsidy Contract with a project that has activities subject to environmental impact assessment in Croatia [see activities in the project proposals are listed in the legal basis (Uredba o procjeni utjecaja zahvata na okoliš)] is to submit, before contracting, the relevant legally binding documents: Rješenje kojim nadležno tijelo utvrđuje da za zahvat nije potrebno provesti procjenu utjecaja na okoliš9 or Rješenje o prihvatljivosti zahvata na okoliš10.

7. photo documentation about the scene of the works activities.

4.2.3 Ownership issues of land and buildings subject to works components of projects In case of infrastructural development projects, the Project Partners / Lead Beneficiaries must prove the quality of ownership or usage rights of the land and/or building involved in the works component. The ownership has to be proven by a land or building registration certificate from the relevant public registers, according to the national legislation.

9 In the case of exemption from environmental impact assessment. 10 In the case when environmental impact assessment is needed.


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Three cases can be distinguished: 1. In case the land or building is owned by the organisation (Project Partner or Lead

Beneficiary) implementing the works component, the investment is implemented on own property and only a land or building registration certificate from the relevant public register (HU: tulajdoni lap, HR: ZK uložak) is necessary.

Please note that a land or building registration certificate is always necessary in connection to project elements that are works components.

2. Situations can arise where the land or building is not in the exclusive ownership

(közös tulajdon / zajedničko vlasništvo) of the organisation (Project Partner or Lead Beneficiary) implementing the works component. In these cases the written consent of the joint proprietors (tulajdonostársak / suvlasništvo) has to be attached to the project proposal; in the document they must express that they agree with the implementation of the project and with the continuation of operation until 5 years from the end date of the project’s implementation period.

If the land or building constitutes a piece of undivided joint property (osztatlan közös tulajdon / nedjeljiv zajednički posjed), the usage agreement (használati szerződés / ugovor o pravu uporabe) between the joint proprietors, stipulated in a notarial document or private law contract of equal probative value (közjegyzői okirat vagy azonos bizonyító erejű magánokirat / javnobilježnički akt ili privatnopravni ugovor jednake dokazne vrijednosti), as well as the drawing about the functional division of the property (vázrajz a vagyontárgy funkcionális megosztásáról / nacrt funkcionalne podjele posjeda) have to be submitted together with the project proposal.

3. The land or building is not owned by the organisation (Project Partner or Lead

Beneficiary) implementing the works component:

a) If the ownership of the land and of the building located on it is divided (elválik a telek és az épület tulajdonjoga / vlasništvo nad zemljištem i građevine koja se na njemu nalazi je podijeljeno), the project could finance developments on a third party’s property. In these cases the owner of the land and the organisation (Project Partner or Lead Beneficiary) implementing the works component have to conclude a detailed contract, to be attached to the project proposal, ruling the implementation of the


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investment and how the ownership of the land and the building will be separately indicated in the public register.

b) If the organisation (Project Partner or Lead Beneficiary) implementing the

works component already rents, or wishes to rent, the land or building, which is in the ownership of the state or of a county/local government, targeted with the investment for the duration of the project and for subsequent operation, the relevant contract (bérleti szerződés / ugovor o najmu) must be annexed to the project proposal, together with the declaration of the owner of the property (tulajdonos hozzájáruló nyilatkozata / izjava vlasnika o suglasnosti) that it agrees with the submission of the project proposal, with the implementation and the subsequent operation for at least 5 years after the end date of the project’s implementation period. The contract must be one that is stipulated for a definite period of time no shorter than 10 years and it must ensure the exclusive use of the investment, according to the activities described in the AF and endorsed by the JMC, during the implementation of the project and in the following 5 years.

Note: Since in accordance with Paragraph (3) of Article 34 of the IPA Implementing Regulation the rent of land or existing buildings is not eligible under the Community funding, the related project costs cannot be reimbursed from the project budget but must be covered from the Project Partner’s / Lead Beneficiary’s separate resources outside the project. Only land or building in the ownership of the state or of county/local governments can be rented for project purposes.

c) If the land or building on which an investment is to be implemented is not

the property of the organisation responsible for the activity but the organisation acts as the trustee (kezelő / upravitelj posjedom) of the property, the trusteeship has to be proven by attaching to the project proposal the relevant contract or any other document proving the trusteeship relation (kezelői jogviszony / upravljačko pravo).

d) If the organisation (Project Partner or Lead Beneficiary) implementing the

works component wishes to purchase the land targeted with the investment from its current owner then the submission of a pre-contract on the purchase of the property (adásvételi előszerződés / kupoprodajni predugovor) is necessary attached to the project proposal. The contract can contain a suspending clause stating that the contract on the purchase will


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only be stipulated if the project receives funding. In all cases the land concerned must become the property of the Project Partner / Lead Beneficiary by the stipulation of the Subsidy Contract at the latest.

Note: In accordance with Paragraph (3) of Article 34 and Letter g) of Paragraph (3) of Article 89 of the IPA Implementing Regulation the purchase of land for an amount not exceeding 10 per cent of the eligible expenditure of the project can be eligible under the Community funding.

Please note that cases 2 and 3 related to the ownership issues of land and buildings subject to works components of projects, as described in English language, are valid for Croatian Project Partners / Lead Beneficiaries as well. If in exceptional situations related to case 2 (where the land or building is not in the exclusive ownership of the organisation implementing the works component) or case 3 (the land or building is not owned by the organisation (implementing the works component) situations occur where the above described procedures cannot be implemented due to specific legal elements in Croatia, such situations will be solved on a case-by-case basis, after further examination of the national level legislation in the Republic of Croatia.

In all cases the building and/or the land must:

• be free of any encumbrances (tehermentes / bez tereta), • not be the object of pending litigation (permentes / nije predmet parnice) and • not be the object of a claim (igénymentes / nije predmet zahtjeva) according

to the relevant national legislation. The land or building is free of encumbrances and is not an object of a claim if nobody has a claim, for the present or for the future, listed in the register (nyilvántartásban bejegyzett igény / zabilježba zahtjeva u registru) that could in any way and to any extent hinder the present or future owner of the property in exercising his or her ownership and usage rights. A claim is e.g. if on the extract from the register of the property in question one of the following entries [bejegyzés, széljegyzet / upis, uknjižba (u javni registar)] can be found:

- purchasing right (vételi jog / pravo prvokupa), repurchasing right (visszavásárlási jog / pravo nazadkupa),


110

- forcible collection right (végrehajtási jog / pravo prisilne naplate), - existence of a winding-up or liquidation procedure against the owner

(felszámolás vagy végelszámolás / stečajni postupak), - a construction or parcel-establishing prohibition (építési vagy telekalakítási

tilalom / zabrana parceliranja ili gradnje) based on a court or administrative decision, other construction restrictions (építési korlátozások / ograničenje gradnje),

- commencement of a parcel-establishing or expropriating procedure (telekalakítási vagy kisajátítási eljárás / postupak parceliranja ili eksproprijacije),

- appointing of an auction procedure (árverés / dražbeni postupak), - closure (zárlat / obustava poslovanja), - purchase with the retention of ownership (tulajdonjog fenntartással való

adásvétel / prodaja s pridržavanjem prava vlasništva), - suspension of a register procedure (felfüggesztett telekkönyvi eljárás /

suspenzija upisa u zemljišne knjige). The following encumbrances are not to be regarded as claims: mortgage (jelzálog / hipoteka), restraint on alienation and encumbrance (elidegenítési és terhelési tilalom / zabrana otuđenja i opterećenja), servitude (szolgalom / zasnivanje služnosti) and usufruct (haszonélvezet / ploduživanje). By the end of an investment type project’s period of implementation at least the record of the technological delivery session (műszaki átadás-átvétel jegyzőkönyve / zapisnik s tehničke primopredaje) must be presented, together with the statement of the responsible architectural supervisor (felelős műszaki vezető nyilatkozata / izjava nadležnog građevinskog nadzora). Until the final and valid permission of use (hatályos használatbavételi engedély / valjana uporabna dozvola) is attained, a temporary permission of use (ideiglenes használatbavételi engedély / privremena uporabna dozvola) can be accepted from the Beneficiary or it can submit the copy of the document (provided by the relevant authority) proving that the organisation has handed in its request for the initialisation of the permission procedure.

4.2.4 Documents that need only to be submitted by the time of contracting Please note that the present list is indicative and serves information purposes only.


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There are some documents that are not (only) requested to be submitted along the project proposal but are (also) prerequisites for concluding the Subsidy Contract in case the project is selected for funding. The following list orientates in connection to further steps to be taken if your project will be selected:

• Original documents proving the fulfilment of the conditions set by the JMC in its co-financing decision (e.g. modified AF Sheets, other documents, declarations, explanations etc.). Only relevant if the project was approved with conditions.

• Information on eventual changes in the data as supplied in the project

proposal, concerning the Lead Beneficiary or any Project Partner (e.g. name of legally authorised representative, specimen of signature, address, contact details, VAT status of Hungarian Project Partners / Lead Beneficiary etc.). Only relevant if there were changes in the data in the meantime.

• Original declarations of the Lead Beneficiary and of the Project

Partners, certified by the legally authorised representative, concerning the current non-existence of the reasons for exclusion as listed in Chapter 3.1.2 of the Guidelines. Relevant only in case of changes in the compliance with the aforementioned Chapter.

• Updated spending forecast according to the 4-month periods of project

implementation per each Project Partner / Lead Beneficiary recipient of subsidy. The document is to be prepared after the fulfilment of the conditions set by the JMC for contracting.

• Data of the bank account opened by the Lead Beneficiary for the

purposes of the project in EUR currency, to be submitted in form of an original statement signed by the bank. (Minimum data requirements: name and address of bank, IBAN number and SWIFT code of the account). There can be organisations (especially in the public sector) which cannot open a separate EUR account, these cases will be handled individually.

• Original specimen of signature, certified by a public notary, of the legally

authorised representative(s) of the Lead Beneficiary. Only relevant if the signatory party to the Subsidy Contract for the Community funding is not identical with the person who certified the AF.


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• Partnership Agreement, signed by all Project Partners and by the Lead Beneficiary (optional to sign for Associated Partners). Compulsory for every project. The template provided to the Lead Beneficiary can be extended but the compulsory content has to be present. The number of copies is regulated by Point 7 of Article 18 of the document. Three originals have to be submitted to the JTS.

• Originals of land or building registration certificates (issued and certified

by the respective institution which issues land or building registration certificates) or copies certified by a public notary. They cannot be older than 30 days at the time of submission and must be in the original language. Compulsory in case of projects with a works component.

• Original legally binding building permit documents or copies certified by a

public notary (if relevant, the environmental permit is taken into consideration in the issuing of the building permit in Hungary).

• Environmental impact assessment and environmental permits, if

relevant. Original documents or copies certified by a public notary. • In Croatia: Original approval of the responsible body for the acceptance

of the intervention in the environment11 (or a certified copy) or in the case of the exemption from environmental impact assessment original approval of the responsible body that the conduction of an environmental assessment is not relevant in the respective case12 (or a certified copy).

4.3 CROSS-BORDER CO-OPERATION CRITERIA The Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013 has a directly emphasised requirement for funding joint operations with identifiable cross-border benefit. This means that besides eligibility requirements all projects have to prove their cross-border dimension not only on activity level but also when creating the partnership. Project Partners have to act in partnership with at least one

11 Rješenje o prihvatljivosti zahvata na okoliš [Uredba o procjeni utjecaja zahvata na okoliš (NN 67/2009, NN 64/2008, www.nn.hr)]

12 Rješenje kojim nadležno tijelo utvrđuje da za zahvat nije potrebno provesti procjenu utjecaja na okoliš


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cross-border Project Partner from the other side of the Hungarian-Croatian border, one of them acting as Lead Beneficiary in the project. Paragraph (2) of Article 95 of the IPA Implementing Regulation lays down special requirements for establishing co-operations to implement cross-border projects awarded a subsidy within the framework of the Programme. The aim of these criteria is to develop sustainable cross-border partnerships with long lasting positive effects on the eligible programme area, with a real background and effective sustainability for the partnerships. The cross-border criteria defined by the Regulation are:

- joint development, - joint implementation, - joint financing, - joint staff.

Projects have to meet at least two of the four criteria in order to receive funding from the Programme. It is a minimum requirement for projects to meet two of the four criteria, nevertheless Project Partners / Lead Beneficiaries are encouraged to address more than two, or all of them, since these shall reflect the quality of their co-operation. Thus, when correctly applied, the cross-border criteria will increase the quality of the cross-border project itself. Given the nature of the cross-border Programme and other eligibility requirements of the CfP, the fulfilment of at least the joint financing and joint implementation requirements should not be a problem for the projects and the Project Partners / Lead Beneficiaries. Main characteristics of the Cross-border criteria: Joint development: The project proposal shall be built upon each Project Partner’s knowledge and experience, therefore project development should be a negotiation process from a very early stage on where the Project Partners / Lead Beneficiary present and refine the project idea, establish objectives, design activities, assume responsibilities and allocate budgetary items. It is preferable that the Project Partners designate the Lead


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Beneficiary together. Formerly elaborated joint studies or antecedent projects carried out by the Project Partners / Lead Beneficiary can also serve as a basis for the joint project. The Lead Beneficiary provides the attendance sheets and minutes of preparatory meetings, organised by the Project Partners / Lead Beneficiaries before the submission of the project proposal. Joint implementation: While the Lead Beneficiary bears the overall responsibility for the project, all Project Partners take responsibilities for different parts of the implementation on both sides of the border. There should be a clear, content-based interconnection among activities and objectives. The roles and inputs of all Project Partners and of the Lead Beneficiary in project management should be clearly described and the coherence with budget tables should be identifiable in the project proposal. The implementation can be realised through a common virtual workplace, a documentation centre or it can be supported with a joint monitoring system especially designed for and operated during the implementation of the project. The methodology of using these tools should be described in the relevant cell of the AF. Joint financing: A balanced financing means that each Project Partner and the Lead Beneficiary (except for Associated Partners) make their own financial contribution to the project. Each Project Partner’s and the Lead Beneficiary’s own contribution has to reach the minimum amount defined in the CfP and in the Guidelines. It is essential that eligible costs incur on both sides of the border and that they are proportional to the planned activities. There should be a clear coherence between planned project activities, roles and the planned budget; at least one of the main project activities should be financed in a balanced way. The financial and professional contribution of each Project Partner and of the Lead Beneficiary has to be confirmed by certifying the Partnership Agreement in the contracting phase. Joint staffing: The Project Partners and the Lead Beneficiary may allocate internal or external staff (administrative and professional) in order to implement the activities envisioned. In doing so, each Project Partner and the Lead Beneficiary should appoint at least one


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person who will be responsible for carrying out the operational day-to-day duties related to the implementation of the respective project part and who will work in a close working relation with the other members of staff of the project. In order to avoid duplication of functions at different organisations, there should be one senior project manager and one financial manager for the entire project (preferably under the supervision of the Lead Beneficiary). Staff members should be in close connection, they should exchange information regularly in order to ensure efficient project implementation. The structure of the project management (persons and their responsibilities) has to be described. In order to fulfil a given criterion, at least two of the listed parameters belonging to it have to be accomplished and proven by the Project Partners / Lead Beneficiary.

Joint development

Parameter Description Method of checking*

1 Documented conciliations

All Project Partners and the Lead Beneficiary should be involved in the joint development of the project from an early stage on.

Supporting documents: documents proving that at least one preparatory meeting was organised between the Project Partners and the Lead Beneficiary before submitting the project proposal. Attendance sheet and minutes have to be annexed to the project proposal.

2 Agreement on the Lead Beneficiary

All Project Partners and the Lead Beneficiary should jointly agree on who will be the Lead Beneficiary in the project.

Annex: Partnership Statement, certified by all Project Partners and the Lead Beneficiary (optional for Associated Partners).

3 Feasibility assessment

In case of so-called investment-type projects one feasibility assessment has to be prepared for every individual works activity

Supporting documents: existence of feasibility assessment (desirable structure explained in Appendix 3 of the Guidelines).


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Joint development

Parameter Description Method of checking*

(investment) exceeding 100.000 EUR as planned in the project part of the Project Partner / Lead Beneficiary.

4 Joint survey on demand

In case of so-called soft projects a description of needs and demand on the necessity of the planned project on both sides of the border can be prepared.

Supporting document: existence of joint survey on demand.

5

Antecedent INTERREG / PHARE CBC / INTERREG PHARE project13

The project aims at the implementation of a project prepared within an INTERREG, PHARE CBC or INTERREG PHARE project.

AF / Project description (Background) and Previous experiences: in the relevant cell the previous project awarded a subsidy has to be referred to. A cross-check of the project proposal and the antecedent project will be carried out whether it uses the attained results or not.

A project fulfils joint development if it satisfies at least two parameters.

Points to be given by the assessors: 0-2

* In connection to all four cross-border co-operation criteria Sheet 6 of the AF is an important source of information.

13 Please note that any double financing between the earlier and the present project must be avoided.


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Joint implementation

Parameter Description Method of checking

1 Balanced implemen-tation

Project activities are performed on both sides of the border.

AF / Partnership (role of each Project Partner in the project): At least one Hungarian Project Partner and one Croatian Project Partner (one of them as Lead Beneficiary) has a defined role in the project.

AF / Project pyramid (locations of activities): at least one project activity is located in Hungary and one project activity is located in Croatia.

2

All Project Partners and the Lead Beneficiary contribute to the project objectives

Each Project Partner and the Lead Beneficiary have a definite role and responsibility in obtaining the project objectives.

AF / Partnership (role of each Project Partner and of the Lead Beneficiary): each Project Partner, including the Lead Beneficiary, has a defined role in the project.

AF / Project pyramid: each Project Partner, including the Lead Beneficiary, performs an activity that belongs to a specific objective defined in the project.

3

Establishment of a joint monitoring system

One of the Project Partners (or the Lead Beneficiary) is responsible for the internal audit of the project during implementation.

AF / Project Description / Methodological approach: The methodology is described in the AF.

4

Use / establishment of a common virtual

Establishment and use of a common web-face (share point) or a documentation centre

AF / Project Description / Methodological approach: the methodology defines that a common web-face or a documentation centre


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Joint implementation

Parameter Description Method of checking

workplace for work. will be established / used.

A project fulfils joint implementation if it satisfies at least two parameters.


Joint financing

Parameter Description Method of check

1 Minimum own contribution

Each Project Partner and the Lead Beneficiary (except for Associated Partners and for those Project Partners which are not obliged to do so) must make its own contribution to the joint budget.

AF / Sources of funding: The contribution of each Project Partner, including the Lead Beneficiary, reaches the minimum amount described in the CfP and in the Guidelines.

2 Balanced allocation

Balanced allocation among Project Partners, including the Lead Beneficiary, according to their responsibilities.

AF / Project pyramid / Responsible partner organisations and AF / LB and PP budget sheets: Clear coherence between planned project activities, roles and planned budget by Project Partners / Lead Beneficiary.

3

Balanced financing of a main activity

Balanced allocation between at least one Hungarian and one Croatian Project Partner (eventually one of them as Lead

AF / LB and PP budget sheets: There is a clear definition of the particular main project activity carried out jointly by at least one Project Partner (eventually one of them as Lead Beneficiary) from each side of the


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Joint financing


Beneficiary) in connection to at least one main project activity*.

border.

A project fulfils joint financing if it satisfies at least two parameters.


* Main project activity: Activities that are carried out in order to reach the objective of the project. Project management activities such as writing financial and activity progress reports, organising technical meetings among Project Partners and the Lead Beneficiary, coordinating the development of a project part etc. are not considered to be main activities of a project.

Joint staffing


1

Joint project management system is established

Transparency and common understanding of structures, processes and responsibilities.

AF / Partnership (role of each Project Partner and of the Lead Beneficiary): a clear definition of functions and responsibilities is described in the AF.

2 No duplication of functions

The responsibilities of each member of the project management are defined. Responsibilities cannot overlap and must be clearly linked to a definite person.

AF / Project description.


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Joint staffing


3

Representation of each Project Partner and of the Lead Beneficiary

The Project Partners and the Lead Beneficiary are represented in the project staff by at least one responsible person.

Curriculum vitae of members of project staff, AF / Project budget per partner / Budget line 2. Staff costs.

A project fulfils joint staffing if it satisfies at least two parameters.


For measuring the cross-border character of the partnership and the project, the following system has been developed: Cross-border character

Measurement Description Criteria reached

Category ‘A’

The project fulfils each criterion of a joint project (4 out of 4).

The joint project staff, the planned activities and joint financing will ensure the joint implementation of a project with high cross-border character.

Category ‘B’

The project fulfils three criteria of a joint project (3 out of 4).

The project performs strong co-operation between Project Partners, including the Lead Beneficiary, this will ensure results on both sides of the border.

Category ‘C’ The project fulfils two criteria of a joint project (2 out of 4).

The project fulfils the minimum criteria of a joint project and is eligible for funding.

The project fulfils the

cross-border requirements.

Category ‘D’ The project does not The project is not a joint project The project


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Cross-border character

Measurement Description Criteria reached

fulfil any or only fulfils one of the criterion of a joint project (0 or 1 out of 4).

and is not eligible for funding. fails to fulfil the cross-border requirements.

4.4 HORIZONTAL POLICIES For the 2007-2013 financial perspective the EU introduces two main horizontal principles: the achievement and safeguarding of equal opportunities and the observation of sustainable development. According to the relevant regulations (Article 3 of the IPA Implementing Regulation), strategic EU documents (Gothenborg Agenda, Lisbon Strategy) and the Programme Document, horizontal principles have to be identified in all projects funded from the Programme. The Renewed European Sustainable Development Strategy was adopted by the European Council in June 2006. It is an overarching strategy for all EU policies which sets out how the needs of present generations can be met without compromising the ability of future generations to meet their needs. The Sustainable Development Strategy deals in an integrated way with economic, environmental and social issues and lists the following seven key challenges:

1. Climate change and clean energy (To limit climate change and its costs and negative effects on society and

the environment) 2. Sustainable transport (To ensure that the transport systems meet the society’s economic, social

and environmental needs whilst minimising their undesirable impacts on the economy, society and the environment)

3. Sustainable consumption and production (To promote sustainable consumption and production patterns) 4. Conservation and management of natural resources (To improve management and avoid overexploitation of natural resources,

recognising the value of ecosystem services) 5. Public health


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(To promote good public health on equal conditions and improve protection against health threats)

6. Social inclusion, demography and migration (To create a socially inclusive society by taking into account solidarity

between and within generations and to secure and increase the quality of life of citizens as a precondition for lasting individual well-being)

7. Global poverty (To actively promote sustainable development worldwide and ensure that the European Union’s internal and external policies are consistent with global sustainable development and its international commitments)

The Actions defined in Priority 1 of the Programme directly serve the environmental aspects of sustainable development, while Actions belonging to Priority 2 have positive impact on society.

When developing your project proposal you will have to show how your project addresses the EU horizontal policies referred to above. In order to successfully fill in the parts of the AF (on Sheet 5, Project description) that are directed towards these issues please read carefully the relevant sections of Annex 1 of the present Guidelines: ‘Guidelines for filling in the Application Form’.

Since the endorsement of the Programme by the EC on 13 March 2008, substantial advances have been made regarding the Danube Strategy and the growth strategy of the EU, ‘Europe 2020’. The former, proposed by the EC on 8 December 2010 and endorsed by the Member States on 13 April 2011, focuses on 11 priority areas, each co-ordinated by designated countries among which both Hungary and Croatia are represented. In the latter, the EU has set five ambitious objectives – on employment, R&D / innovation, climate change / energy, education, poverty / social exclusion – to be reached by 2020. As a concrete step, each Member State has adopted its own national targets in each of these areas. Finally, concrete actions at EU and national levels are also designed to underpin the strategy.

When developing your project proposal you are encoauraged to consult the content of both strategies and you are invited to point out eventual elements of your project proposal which are aligned to them. For more information


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regarding the Danube Strategy and Europe 2020, please visit the following websites: http://ec.europa.eu/regional_policy/cooperate/danube/index_en.cfm http://ec.europa.eu/europe2020/index_en.htm

4.5 STATE AID RULES Present Chapter aims at introducing the main rules on State aid as laid down in the Treaty on the Functioning of the European Union (TFEU) and in pieces of legislation of the European Union. These rules will be applied to all activities in all projects funded under the Programme.

For the detailed State aid rules to be applied in connection to the individual eligible project activities, please refer to Annex 5 of the Guidelines: State aid rules per Activities. Stipulations made by each Lead Beneficiary / Project Partner in their State aid declaration are directly affecting the State aid rules to be applied in connection to the individual eligible project activities. (Practically, signing the declaration and accepting the conditions therein would mean that the project activities are not falling under State aid rules in the majority of the cases14.)

The eligible costs indicated in the present Chapter are listed on the basis of the relevant State aid regulations. Projects implemented in the frame of this Programme however have to comply with the Programme eligibility rules (see Chapter 3 of the Guidelines). In case of any discrepancies, Programme eligibility rules prevail. Please note that the present Chapter contains the review of applicable State aid rules for project proposals in this Programme for information purposes. Decisions on the applied rules will be taken in the assessment process and can affect the contracting conditions of the selected project proposals in terms of the amount and ratio of Community funding and state contribution as well.

14 Exceptions can also be taken in the declaration, this will mean at the same time that the activities listed as exceptions will most probably be affected by State aid rules.


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4.5.1 Background According to Paragraph (1) of Article 107 of the TFEU, ‘any aid granted by Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market’. State aid rules apply only to measures that satisfy all of the criteria listed in Paragraph (1) of Article 107 of the TFEU (the aid is given from state resources, the Beneficiary is an undertaking etc). 1. State resources: The following sources are considered to be state resources: central budget, detached state funds, social insurance funds, sources of local and minority governments, and the financing influenced by State or through state companies. According to the rules of Council Regulation (EC) No 1083/2006 on laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund, in case of aids according to Paragraph (1) of Article 87 of the EC Treaty the maximum intensity of aid shall be observed (Paragraph (4) of Article 74) and all the documents for control shall be preserved by the Managing Authority. 2. Undertaking: The definition of undertaking includes not only economic actors, but all actors, independent of their legal character, which participate on the market and have effective economical activity on it, independently of their financing. Churches, associations, foundations or public companies can belong to this category. 3. Economic advantage: The aid should constitute an economic advantage that the undertaking would not have received on equal terms in the market. The advantage can be a payment but also for example: - tax allowance, - tax immunity,


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- deduction from tax base, - tax credit, - interest subsidy, - capital grant, - flat credit, - act of honour, - non-reimbursable subsidy etc. 4. Selectivity: State aid must be selective and thus affects the balance between certain firms and their competitors because it does not escalate to any participants of the economy, only to one region, sector or certain companies etc., meaning and offering economic advantage. ‘Selectivity’ is what differentiates State aid from so-called ‘general measures’ (which are measures of politics on the economy, concerning the whole country, and where all those undertakings that fulfil the prescribed requirements will automatically be subsidized). The selectivity criterion is also satisfied if the scheme applies to only a part of the territory of a Member State (this is the case for all regional and sectoral aid schemes). 5. Effect on competition and trade: The affected undertakings have to be active on the market where competition can be realistic between undertakings. This condition will be pre-supposed by the Commission, while the opposite must be attested by the Member State. The trade between Member States is obtained in most of the cases. An activity which has effect only on internal competitors, or the effect of which is locally restricted, or concentrated rather on a very small segment of the market, does not affect trade.

4.5.2 The definition of SME (small and medium-sized enterprise) Enterprise An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This includes, in particular, self-employed persons


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and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity. Staff headcount and financial thresholds determining enterprise categories a) The category of micro, small and medium-sized enterprises (SME-s) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. b) Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million. c) Within the SME category, a micro-enterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million. Above described enterprise categories are relevant for ‘autonomous enterprises’ which are not classified as a ‘partner enterprise’ or as a ‘linked enterprise’. The data to apply to the headcount of staff and the financial amounts are those relating to the latest approved accounting period and calculated on an annual basis. Further details on the used definitions, detailed applicable rules are to be found in Annex I., Commission Regulation (EC) No 800/2008 on declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (OJ L 214/3. 2008. 9.8.)

4.5.3 Applicable State aid rules

4.5.3.1 Regional investment and employment aid Regional investment and employment aid shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided that the following conditions are fulfilled.


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The aid shall be granted in regions eligible for regional aid, as determined in the approved regional aid map for the Member State concerned for the period 2007-2013. The investment must be maintained in the recipient region for at least five years, or three years in the case of SME-s, after the whole investment has been completed. This shall not prevent the replacement of plant or equipment which has become out-dated due to rapid technological change, provided that the economic activity is retained in the region concerned for the minimum period. The aid intensity in present gross grant equivalent shall not exceed the regional aid threshold which is in force at the time the aid is granted in the assisted region concerned. With the exception of aid granted in favour of large investment projects and regional aid for the transport sector, the fixed regional aid thresholds may be increased by 20 percentage points for aid awarded to small enterprises and by 10 percentage points for aid awarded to medium-sized enterprises. The fixed thresholds shall apply to the intensity of the aid calculated either as a percentage of the investment's eligible tangible and intangible costs or as a percentage of the estimated wage costs of the person hired, calculated over a period of two years, for employment directly created by the investment project or a combination thereof, provided that the aid does not exceed the most favourable amount resulting from the application of either calculation. Where the aid is calculated on the basis of tangible or intangible investment costs or of acquisition costs in case of takeovers, the Beneficiary must provide a financial contribution of at least 25 per cent of the eligible costs, either through its own contribution or by external financing, in a form which is free of any public support. However, where the maximum aid intensity approved under the national regional aid map for the Member State concerned exceeds 75 per cent, the financial contribution of the Beneficiary is reduced accordingly. If the aid is calculated on the basis of tangible or intangible investment costs, the following conditions shall also be applied. In the case of acquisition of an establishment, only the costs of buying assets from third parties shall be taken into consideration, provided that the transaction has taken place under market conditions. Where the acquisition is accompanied by other investment, the costs relating to the latter shall be added to the cost of the purchase. Costs related to the acquisition of assets under lease, other than land and buildings, shall only be taken into consideration if the lease takes the form of financial leasing and contain an obligation to purchase the asset at the expiry of the term of the lease.


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For the lease of land and buildings, the lease must continue for at least five years after the anticipated date of the completion of the investment project or three years in the case of SME-s. Except in the case of SME-s and takeovers, the assets acquired shall be new. In the case of takeovers, assets for the acquisition of which aid has already been granted prior to the purchase shall be deducted. For SME-s, the full costs of investments in intangible assets may also be taken into consideration. For large enterprises, such costs are eligible only up to a limit of 50 per cent of the total eligible investment costs for the project.

4.5.3.2 Training aid Training aid shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided that the conditions laid down as bellows are fulfilled: The aid intensity shall not exceed:

a) 25 per cent for specific training and b) 60 per cent for general training.

Specific training: means training involving tuition directly and principally applicable to the employee’s present or future position in the undertaking and providing qualifications which are not or only to a limited extent transferable to other undertakings or fields of work. General training: means training involving tuition which is not applicable only or principally to the employee’s present or future position in the undertaking, but which provides qualifications that are largely transferable to other undertakings or fields of work. Training shall be considered ‘general’ if, for example:

a) it is jointly organised by different independent undertakings or where employees of different undertakings may avail themselves of the training;

b) it is recognised, certified or validated by public authorities or bodies or by other bodies or institutions on which a Member State or the Community has conferred the necessary powers.

However, the aid intensity may be increased, up to a maximum aid intensity of 80 per cent, as follows:


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a) by 10 percentage points if the training is given to disabled or disadvantaged workers,

b) by 10 percentage points if the aid is awarded to medium-sized enterprises and by 20 percentage points if the aid is awarded to small enterprises.

In cases where the aid project involves both specific and general training components which cannot be separated for the calculation of the aid intensity, and in cases where the specific or general character of the training aid project cannot be established, the intensities applicable to specific training shall apply. The eligible costs of a training aid project shall be:

a) trainers' personnel costs, b) trainers' and trainees' travel expenses, including accommodation, c) other current expenses such as materials and supplies directly related to

the project, d) depreciation of tools and equipment, to the extent that they are used

exclusively for the training project, e) cost of guidance and counselling services with regard to the training

project, f) trainees' personnel costs and general indirect costs (administrative costs,

rent, overheads) up to the amount of the total of the other eligible costs referred to in points (a) to (e). As regards the former type of costs, only the hours during which the trainees actually participate in the training, after deduction of any productive hours, may be taken into account.

4.5.3.3 Aid for research and development projects Aid for research and development projects shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU. The aided part of the research and development project shall completely fall within one or more of the following research categories:

(a) fundamental research, (b) industrial research, (c) experimental development.


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When a project encompasses different tasks, each task shall be qualified as falling under one of the categories listed in the first subparagraph or as not falling under any of those categories. The aid intensity shall not exceed:

(a) 100 per cent of the eligible costs for fundamental research, (b) 50 per cent of the eligible costs for industrial research, (c) 25 per cent of the eligible costs for experimental development.

In the case of aid for a research and development project being carried out in collaboration between research organisations and undertakings, the combined aid deriving from direct government support for a specific project and, where they constitute aid, contributions from research organisations to that project may not exceed the applicable aid intensities for each beneficiary undertaking. The aid intensities set for industrial research and experimental development may be increased as follows:

(a) where the aid is granted to SME-s, the aid intensity may be increased by 10 percentage points for medium-sized enterprises and by 20 percentage points for small enterprises; and (b) a bonus of 15 percentage points may be added, up to a maximum aid intensity of 80 per cent of the eligible costs if:

(i) the project involves effective co-operation between at least two undertakings which are independent of each other and the following conditions are fulfilled:

– no single undertaking bears more than 70 per cent of the eligible costs of the co-operation project, – the project involves co-operation with at least one SME or is carried out in at least two different Member States, or

(ii) the project involves effective co-operation between an undertaking and a research organisation and the following conditions are fulfilled:

– the research organisation bears at least 10 per cent of the eligible project costs, and – the research organisation has the right to publish the results of the research projects insofar as they stem from research carried out by that organisation,


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(iii) in the case of industrial research, the results of the project are widely disseminated through technical and scientific conferences or through publication in scientific or technical journals or in open access repositories (databases where raw research data can be accessed by anyone), or through free or open source software. For the purposes of point (b)(i) and (ii) of the first subparagraph, subcontracting shall not be considered to be effective co-operation.

The eligible costs shall be the following:

(a) personnel costs (researchers, technicians and other supporting staff to the extent employed on the research project), (b) costs of instruments and equipment to the extent and for the period used for the research project; if such instruments and equipment are not used for their full life for the research project, only the depreciation costs corresponding to the life of the research project, as calculated on the basis of good accounting practice, shall be considered eligible, (c) costs for buildings and land, to the extent and for the duration used for the research project; with regard to buildings, only the depreciation costs corresponding to the life of the research project, as calculated on the basis of good accounting practice shall be considered eligible; for land, costs of commercial transfer or actually incurred capital costs shall be eligible, (d) cost of contractual research, technical knowledge and patents bought or licensed from outside sources at market prices, where the transaction has been carried out at arm’s length and there is no element of collusion involved, as well as costs of consultancy and equivalent services used exclusively for the research activity, (e) additional overheads incurred directly as a result of the research project, (f) other operating costs, including costs of materials, supplies and similar products incurred directly as a result of the research activity.

All eligible costs shall be allocated to a specific category of research and development.


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4.5.3.4 Aid for technical feasibility studies Aid for technical feasibility studies preparatory to industrial research or experimental development activities shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided that the following conditions laid down are fulfilled:

(a) The aid intensity shall not exceed for SME-s 75 per cent of the eligible costs for studies preparatory to industrial research activities and 50 per cent of the eligible costs for studies preparatory to experimental development activities; (b) for large enterprises, 65 per cent of the eligible costs for studies preparatory to industrial research activities and 40 per cent of the eligible costs for studies preparatory to experimental development activities.

The eligible costs shall be the costs of the study.

4.5.3.5 Aid to young innovative enterprises Aid to young innovative enterprises shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided that the following conditions laid are fulfilled:

(a) The Beneficiary shall be a small enterprise that has been in existence for less than 6 years at the time when the aid is granted. (b) The research and development costs of the Beneficiary shall represent at least 15 per cent of its total operating costs in at least one of the three years preceding the granting of the aid or, in the case of a start-up enterprise without any financial history, in the audit of its current fiscal period, as certified by an external auditor. (c) The aid amount shall not exceed EUR 1 million. However, the aid amount shall not exceed EUR 1,5 million in regions eligible for the derogation provided for in Letter a) of Paragraph (3) of Article 107 of the TFEU, and EUR


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1,25 million in regions eligible for the derogation provided for in Letter c) of Paragraph (3) of Article 107 of the TFEU. (d) The Beneficiary may receive the aid only once during the period in which it qualifies as a young innovative enterprise.

4.5.3.6 Aid for disadvantaged and disabled workers Aid for the recruitment of disadvantaged workers in the form of wage subsidies Aid schemes for the recruitment of disadvantaged workers in the form of wage subsidies shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided the following conditions laid down are fulfilled:

(a) The aid intensity shall not exceed 50 per cent of the eligible costs. (b) Eligible costs shall be the wage costs over a maximum period of 12 months following recruitment. However, where the worker concerned is a severely disadvantaged worker, eligible costs shall be the wage costs over a maximum period of 24 months following recruitment. (c) Where the recruitment does not represent a net increase, compared with the average over the previous twelve months, in the number of employees in the undertaking concerned, the post or posts shall have fallen vacant following voluntary departure, disability, retirement on grounds of age, voluntary reduction of working time or lawful dismissal for misconduct and not as a result of redundancy. (d) Except in the case of lawful dismissal for misconduct, the disadvantaged worker shall be entitled to continuous employment for a minimum period consistent with the national legislation concerned or any collective agreements governing employment contracts. If the period of employment is shorter than 12 months or, as the case may be, 24 months, the aid shall be reduced pro rata accordingly.


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Aid for the employment of disabled workers in the form of wage subsidies Aid for the employment of disabled workers in the form of wage subsidies shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided the following conditions laid down are fulfilled:

(a) The aid intensity shall not exceed 75 per cent of the eligible costs. (b) Eligible costs shall be the wage costs over any given period during which the disabled worker is being employed. (c) Where the recruitment does not represent a net increase, compared with the average over the previous twelve months, in the number of employees in the undertaking concerned, the post or posts shall have fallen vacant following voluntary departure, disability, retirement on grounds of age, voluntary reduction of working time or lawful dismissal for misconduct and not as a result of redundancy. (d) Except in the case of lawful dismissal for misconduct the workers shall be entitled to continuous employment for a minimum period consistent with the national legislation concerned or any collective agreements governing employment contracts. If the period of employment is shorter than 12 months, the aid shall be reduced pro rata accordingly.

Aid for compensating the additional costs of employing disabled workers Aid for compensating the additional costs of employing disabled workers shall be compatible with the common market within the meaning of Paragraph (3) of Article 107 of the TFEU and shall be exempt from the notification requirement of Paragraph (3) of Article 108 of the TFEU, provided the following conditions laid down are fulfilled:

(a) The aid intensity shall not exceed 100 per cent of the eligible costs.


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(b) Eligible costs shall be costs other than wage costs covered by in section ‘Aid for the employment of disabled workers in the form of wage subsidies’, which are additional to those which the undertaking would have incurred if employing workers who are not disabled, over the period during which the worker concerned is being employed.

The eligible costs shall be the following:

(a) costs of adapting premises, (b) costs of employing staff for time spent solely on the assistance of the disabled workers, (c) costs of adapting or acquiring equipment, or acquiring and validating software for use by disabled workers, including adapted or assistive technology facilities, which are additional to those which the Beneficiary would have incurred if employing workers who are not disabled, (d) where the Beneficiary provides sheltered employment, the costs of constructing, installing or expanding the establishment concerned, and any costs of administration and transport which result directly from the employment of disabled workers.

4.5.3.7 Cultural aid Cultural aid can be given only to activities that promote the preservation of significant culture and cultural heritage and that aim to save the endangered national cultural heritage. Eligible costs are the costs incurred in the course of the preservation of culture and cultural heritage and verifiably expended for this express purpose. The maximum intensity cannot exceed 100 per cent of the eligible costs. Cultural aid has to be notified preliminary to the EC. Until the approval of the Commission, cultural aid shall not be granted.


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4.5.3.8 De minimis aid The total de minimis aid granted to any one undertaking shall not exceed EUR 200.000,00 over any period of three fiscal years. The total de minimis aid granted to any one undertaking active in the road transport sector shall not exceed EUR 100.000,00 over any period of three fiscal years. The aid granter shall inform the undertaking in writing of the prospective amount of the aid (expressed as gross grant equivalent) and of its de minimis character, making express reference to the Commission Regulation (EC) No 1998/2006 and citing its title and publication reference in the Official Journal of the European Union. Aid payable in several instalments shall be discounted to its value at the moment of being granted. The beneficiary undertaking shall declare the prospective amount of de minimis aid granted in the previous three fiscal years. Records regarding de minimis aid shall be maintained for 10 years from the date on which it was granted, and such invitation of the granter the Beneficiary is obliged to present all the documents. On request of the EC information shall be provided on de minimis aid within 20 workdays. De minimis aid may be granted to undertakings in all sectors, with the exception of: (a) aid granted to undertakings active in the fishery and aquaculture sectors, as covered by Council Regulation (EC) No 104/2000 [10]; (b) aid granted to undertakings active in the primary production of agricultural products as listed in Annex I to the Treaty; (c) aid granted to undertakings active in the processing and marketing of agricultural products as listed in Annex I to the Treaty, in the following cases:

(i) when the amount of the aid is fixed on the basis of the price or quantity of such products purchased from primary producers or put on the market by the undertakings concerned, (ii) when the aid is conditional on being partly or entirely passed on to primary producers;


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(d) aid to export-related activities towards third countries or Member States, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity; (e) aid contingent upon the use of domestic over imported goods; (f) aid granted to undertakings active in the coal sector, as defined in Regulation (EC) No 1407/2002;

(g) aid for the acquisition of road freight transport vehicles granted to undertakings performing road freight transport for hire or reward; (h) aid granted to undertakings in difficulty.

4.5.3.9 Services of General Economic Interest (public service), SGEI a) Altmark Judgement:

If the activity of the recipient undertaking belongs to the public service obligation and the aid requires the conditions of the Altmark judgement15 of the European Court of Justice, the measure can not be qualified as State aid, according to Paragraph (1) of Article 107 of the TFEU, because it does not mean advantage for the certain undertaking. The conjunctive conditions of the judgement are the following:

• ‘The recipient undertaking must actually have public service obligations

to discharge, and the obligations must be clearly defined. • The parameters on the basis of which the compensation is calculated

must be established in advance in an objective and transparent manner. • The compensation cannot exceed what is necessary to cover all or part

of the costs incurred in the discharge of public service obligations, taking into account the relevant receipts and a reasonable profit for discharging those obligations.

• Where the undertaking which is to discharge public service obligations is not chosen pursuant to a public procurement procedure which would

15 Case No. C-280/00, Altmark Trans a. o. v. Nahverkehrgesellschaft [2003]


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allow for the selection of the tenderer capable of providing those services at the least cost to the community, the level of compensation needed must be determined on the basis of an analysis of the costs which a typical undertaking, well run and adequately provided with means of transport so as to be able to meet the necessary public service requirements, would have incurred in discharging those obligations, taking into account the relevant receipts and a reasonable profit for discharging the obligations.’

b) Rules of the Commission Decision 2005/842/EC on the application of Paragraph (2) of Article 86 of the EC Treaty to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ L 312/67 29. 11. 2005.) Assignment The Commission Decision can be used if the undertaking will be assigned with an official act (the form of the assignment is defined by the Member State) to operate services in general economic interest. The official act should contain the following: - the nature and the duration of the obligation, - the sole / special rights ensured to the undertaking, - the parameters of the calculation, control and the review of the compensation, - measures to avoid overcompensation and reimbursement. Compensation

The extents of the compensation cannot exceed all the costs related to the implementation of the public service obligation, also the reasonable profit and incomings shall be taken into account. The amount of the compensation contains the advantages granted in any form from the state or from state resources. The compensation can only be used for the operation of the certain services in general economic interest. Costs The costs that should be taken into account are all the costs of the operation of the public service obligation (if the undertaking carries out only such activities,


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then all of the costs, if it carries out other activities as well, then just those costs which belong to SGEI). Revenues The revenues that should be taken into account mean all the revenues from the services of general economic interests. If the undertaking has sole or special rights or receives other advantages from the state, these should be also calculated to the revenues. The Member State can decide that the whole or a part of the profits that are not from SGEI should be seen as appropriate for financing the SGEI activities. The reasonable profit is the extent of its own capital yield that takes into account the risk or risk proof of the undertaking, especially if the Member State ensures sole or special rights. If the undertaking carries out activity belonging into SGEI or also other activities as SGEI in its internal accountancy, the incomings and costs, as well as the parameters of their distribution should be represented.

4.5.3.10 Legal background

• Commission Regulation (EC) No 1998/2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid (OJ L 379/5 15. 12. 2006)

• Commission Regulation (EC) No 800/2008 on declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block Exemption Regulation) (OJ L 214/3. 2008. 9.8.)

• Commission Decision 2005/842/EC on the application of Paragraph (2) of Article 86 of the EC Treaty to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ L 312/67 29. 11. 2005.)

4.5.4 State aid rules for Croatia The Republic of Croatia, having signed the Stabilisation and Association Agreement (SAA) concluded with the EU (signed on 29 October 2001, entered into force on 1


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February 2005 16), is obliged to gradually harmonize its legal system with the acquis communautaire. Article 70 of the SAA, among other things, determines that State aid (državne potpore) cannot be given in cases involving a violation or a suspicion of a violation of the market competition. According to the same Article, criteria related to the State aid rule are directly applying in the Republic of Croatia. State aid law (Zakon o državnim potporama, NN 140/2005, http://www.nn.hr) determines that the proposals for giving State aid should be submitted for prior approval to the Croatian Competition Agency (Agencija za zaštitu tržišnog natjecanja – AZTN). This includes the prior obligatory opinion of AZTN on the laws that are in connection to the question of State aid. Rules concerning State aid from the acquis communautaire, according to the State aid Regulation (Uredba o državnim potporama, NN 50/2006, http://www.nn.hr), are published in Narodne novine NN (Official Gazette – OG) and are accompanied by special decisions (Decisions of the Croatian Government). The legal framework (laws, regulations, governmental decisions etc.) related to State aid can be found on the website of AZTN: http://www.aztn.hr/drzavne_p.htm.

4.6 PROJECT DEVELOPMENT ASSISTANCE During the period between the launching of the CfP and the submission deadline of project proposals the JTS of the cross-border Programme supports the project development efforts of the Project Partners / Lead Beneficiaries through several activities.

4.6.1 Information days After the CfP will have been launched, the JTS in co-operation with the JTS Information Point will organise information days in several locations in the eligible programme area, on both the Hungarian and the Croatian side. These events will 16

Council and Commission Decision of 13 December 2004 concerning the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part (2005/40/EC, Euratom)


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supply the Project Partners / Lead Beneficiaries with practical information on how to prepare their project proposals properly. The one-day events will provide ample opportunity to raise and to answer questions that are of interest to the Project Partners / Lead Beneficiaries. The dates and venues of the information days will be timely published on the Programme’s website.

4.6.2 Partner search forum In connection to the launch of the third CfP the organisation of a partner search forum is also foreseen. The event will present a useful opprtounity for stakeholders to find the appropriate future partners for their planned project initiatives. Based on the success of the previous partner search forum, held in Varaždin on 9 June 2010 in relation to the second CfP, the planned new occasion, too, will hopefully prove to be useful to potential Lead Beneficiaries and Project Partners. The date and venue of the event will be advertised on the official website of the Programme.

4.6.3 JTS and JTS Information Point Providing accurate and comprehensive information to Project Partners / Lead Beneficiaries is a prerequisite to an effective submission process of project proposals, and well-prepared project proposals are the basis for a successful selection procedure. The programme implementing structures, especially the JTS and the JTS Information Point, are prepared to provide Project Partners / Lead Beneficiaries with CfP-related information throughout the submission period of the CfP. The equal treatment of Project Partners / Lead Beneficiaries will be guaranteed in connection to the information to be disseminated and the opportunities for consultations, to the access to frequently asked questions (FAQ) and related answers and other personal, written or electronic correspondence between the Project Partners / Lead Beneficiaries and the JTS and JTS Information Point. In the course of the Call for Proposals, questions coming from both sides of the border may be asked from the Joint Technical Secretariat, the JTS Information Point in Croatia and in special cases (concerning State aid issues) from the designated contact person. The staff of the JTS is ready to help the Project Partners / Lead


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Beneficiaries by phone or via e-mail. Personal consultations are provided only at pre-arranged appointments at the given office hours. HUNGARY-CROATIA JOINT TECHNICAL SECRETARIAT: Contact persons and telephones:

Mr. Tvrtko Čelan +36-1-224-3206 Mr. János Rakonczai +36-1-224-3100, extension number 4245 Mr. Márton Szűcs +36-72-513-455 Ms. Marian Zelei +36-1-224-3201

E-mail: [email protected] Office hours: For personal consultation:

Wednesday and Thursday (9.00-12.00 and 13.30-16.00) We can accept phone calls:

Monday to Thursday (13.30-16.00) Institution: Hungary-Croatia Joint Technical Secretariat (at VÁTI Nonprofit

Ltd.) Address: H-1016 Budapest, Gellérthegy u. 30-32. Fax: +36-1-224-3291 JTS Information Point in Croatia: Contact person: Ms. Antonija Bedeniković E-mail: [email protected] Telephone: +385-31-221-848 Address: 31000 Osijek, Stjepana Radića 4. The FAQ will be published on the Programme’s website (http://www.hu-hr-ipa.com) in English as the working language of the Programme. Please note that, with respect to equal opportunities of Project Partners / Lead Beneficiaries, it will not be possible anymore to ask questions (or in any manner to contact the JTS) 3 working days prior to the submission deadline of the CfP.


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5. PROJECT SELECTION In line with Paragraph (1) of Article 95 of the IPA Implementing Regulation and in line with Point 1.1 of the Programme Document of the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013, the Programme shall finance joint operations which have been jointly selected by the Participating Countries through an open call system covering the whole eligible programme area. Ensuring the transparency of programme implementation, the programme implementing structures establish a coherent system of CfP, planning in advance the schedule for the publication of the individual Calls for Proposals for the whole programming period.

5.1 Description of the selection process

5.1.1 Submission Project proposals are submitted for an open CfP and are evaluated against the pre-defined set of criteria included in the CfP. The Project Partners / Lead Beneficiaries have no less than 90 calendar days to prepare their project proposals, to be specified in the CfP. These will be sent directly to the JTS where they will be registered upon receipt.

5.1.2 Formal and eligibility assessment The JTS is responsible for the assessment process. The formal and eligibility assessment will be provided for by the JTS's own staff. The assessors use the formal and eligibility assessment grid, published as part of the application package of the CfP. In case the project proposal does not fulfil completely all criteria as listed in Chapter 4.1.6 of the Guidelines, the MA, based on the results of the JTS, rejects the project proposal in writing in recorded, registered mail, indicating the reasons.


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For the reasons for rejection please consult Chapter 4.1.6 of the Guidelines.

5.1.3 Completion of documents In case the project fulfils the criteria of Chapter 4.1.6 of the Guidelines but the formal and eligibility adequacy cannot be judged properly due to a lack of submitted documents, or if other formal and eligibility deficiencies are identified, the JTS summons the Lead Beneficiary to submit the completion of documents within a given deadline. Completions can be made only one time during the formal and eligibility assessment process. Documents have to be submitted to the JTS in the way and format as defined for the letter for completion/clarification. If the deficiencies are not clarified properly, or if the Lead Beneficiary fails to keep the deadline for the submission of the completion, the MA rejects the project proposal in writing in recorded, registered mail, indicating the reasons.

5.1.4 Quality assessment The quality assessment will be provided for by the JTS with the involvement of external experts. The assessment will be conducted according to the pre-set criteria published in the CfP (see Annex 3 of the Guidelines: Quality assessment grid).

5.1.5 Clarification during quality assessment In case the technical adequacy cannot be judged properly or if deficiencies are identified, the JTS summons the Lead Beneficiary to submit the justification of the questioned subject within a given deadline. Clarifications can be made only one time during the quality assessment process. Documents have to be submitted to the JTS in the way and format as defined for the letter for completion/clarification.


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If the deficiencies are not clarified properly, or if the Lead Beneficiary fails to keep the deadline for the submission of the clarification, the project shall be evaluated based upon the information available.

5.1.6 The scoring of project proposals Every project proposal is evaluated by two quality assessors. The summarised score of a project proposal is calculated as the average of the two scores given by the assessors. If the two individual scores show a difference of more than 15 points, the project proposal has to be evaluated by a third quality assessor. The summarised score for the project proposal in this case will be the average of the two scores that are closest to each other. From the summarised scores of the project proposals the JTS creates a list of project proposals, containing the project proposals structured according to their score within the Actions of the CfP separately. The list of project proposals shall be the basis for the debate and the decision of the JMC on the funding of project proposals.

5.1.7 Assessment of the conformity with State aid rules It is during the quality assessment phase that the conformity of project proposals with the relevant State aid rules is being evaluated. Every project proposal (and within these, every project activity) will be examined in order to determine the State aid rules to be applied in the individual cases. Requests for clarification can be proposed, if necessary – these are to be communicated towards the Lead Beneficiary by the JTS.

5.1.8 Decision The assessment supports the work of the JMC, the actor responsible for making decisions on the funding of project proposals. The JMC shall be convened according to the rules laid down in its Rules of Procedure. Once the decisions of


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the JMC are legally binding, the MA informs the Lead Beneficiaries in writing in registered, recorded mail.

5.1.9 Contracting According to the decision of the JMC, project proposals selected for funding and project proposals put on the reserve list have to submit all necessary documents relevant for signing the Subsidy Contract.

5.1.10 Correspondence Please note that both the MA and the JTS keep in contact with the Lead Beneficiary via its contact person as indicated in relation to the individual project in the AF. Any consequences (e.g. the missing of deadlines for completion/clarification) resulting from supplying incorrect information (address, phone and fax number, e-mail address etc.) in the AF shall be born by the Lead Beneficiary.

6. PROJECT IMPLEMENTATION Please be aware of the fact that the working language of the Programme is English, therefore the language of project implementation and of communication between the Lead Beneficiary and the programme implementation structures will be English.

6.1 CONTRACTING PROCEDURES Please note that since the currency of the Subsidy Contracts for the Community funding and of the Subsidy Contracts for the State Contribution is EUR, Lead Beneficiaries are requested to open a separate bank account in EUR. For Project Partners, the opening of a EUR bank account is optional.


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Lead Beneficiaries from Croatia are also obliged to open a separate bank account in EUR. Lead Beneficiaries from Croatia have to be able to receive Community funding in EUR on that separate account from the Financial Transfer Unit in Budapest, and to transfer later on the Community funding in EUR from the same separate account to the Hungarian (and Croatian) Project Partners participating in their projects. Project Partners (except for Associated Partners) in Hungary can open a separate bank account for the project where the state contribution will be reimbursed to. Please also note that the JMC has the right to select project proposals for funding with a reduced budget in case the costs contained in the AF are not entirely in line with the eligibility criteria set by the IPA Implementing Regulation and/or the present Guidelines of the third CfP under the Programme. Project Partners / Lead Beneficiaries declare that they are aware of this possibility by certifying the Partnership Statement (see Point 9 of that document).

6.1.1 Contracting procedure for the Community funding The stipulation of the subsidy contracts is the legal basis and the prerequisite for funding projects selected for financing from the Programme by Community funding and matching state contribution. Following the finalisation of the model Subsidy Contract the procedure of contracting starts with the selection and the approval of projects by the JMC. Based on these decisions the MA notifies in writing the Lead Beneficiary of the approval, conditional approval or rejection of the project proposal. The letter of approval contains the list of documents to be submitted for contracting, the conditions of the JMC (if any) and the name and contact data of the programme manager responsible for the future project at the JTS. If the project was approved with conditions, the responsible programme manager of the JTS examines the documents submitted by the Lead Beneficiary in answer to the notification letter. If parts of the documentation requested in the notification letter are not properly submitted, a request for missing documents is issued and, if necessary, personal consultations and/or site visits, documented by the JTS, are held in order to


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assure compliance with the conditions set by the JMC and/or with the requirements relating to the documentation necessary for contracting. After the documents necessary for the drafting of the Subsidy Contract have been properly submitted and examined, the responsible programme manager of the JTS prepares and sends a note on the compliance of the documentation to the MA. Based on the project proposal, the conditions of the JMC (if any) and on the documentation submitted by the Lead Beneficiary, furthermore upon the issuing by the MA of the declaration on commitment, the responsible programme manager of the JTS prepares the Subsidy Contract of the project. Hereafter the draft Subsidy Contract is made subject to quality assurance. The finalised Subsidy Contract is copied and sent to the Head of the MA for signature. The Subsidy Contract is stipulated with the financial figures displayed in EUR. Once the subsidy contracts are signed, they are sent or are handed over to the Lead Beneficiary where the legally authorised representative signs them and returns all copies but one to the JTS. To prepare copies of the Subsidy Contract for the Project Partners is the responsibility of the Lead Beneficiary.

6.1.2 Contracting procedure for the state contribution in Hungary Based on Paragraph (1) of Article 19 of Hungarian Government Decree No 160/2009, in the Republic of Hungary automatic state contribution is ensured to the project parts of eligible Project Partners and Lead Beneficiaries whose projects have been selected for Community funding. As to the state contribution a 100 per cent advance will be provided. The contracting procedure for the state contribution to project parts in Hungary is partly parallel to, and partly based on, the contracting procedure for the Community funding for projects. Following the elaboration of the model Subsidy Contract for the State Contribution, the procedure of contracting starts based on the approved list of projects selected by the JMC. The controller responsible within the Control Body for the future project part notifies in writing the Project Partner / Lead Beneficiary about the documentation needed for contracting. If necessary, a request for missing documents can be issued.


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After the Subsidy Contract for the Community funding has been signed, furthermore after the necessary documents have been properly submitted and examined, the responsible controller requests the issuing of a declaration of commitment regarding the Hungarian state contribution for the given project part. After receiving the declaration of commitment from the Hungarian NA, the responsible controller prepares the Subsidy Contract for the State Contribution for the Project Partner / Lead Beneficiary. Copies of both the signed Subsidy Contract for the Community funding and the signed Partnership Agreement form annexes to the Subsidy Contract for the State Contribution. The draft Subsidy Contract for the State Contribution is made subject to quality assurance. The finalised Subsidy Contract for the State Contribution, with the financial figures displayed in EUR, is then sent to the Project Partner / Lead Beneficiary for signature. Upon return, the signed subsidy contracts for the state contribution are forwarded to the authorised official of VÁTI Nonprofit Ltd. who signs them on behalf of the National Development Agency in Hungary.

6.1.3 State contribution in Croatia Project Partners / Lead Beneficiaries with private entity (non-budgetary organisations) will be supported with state contribution in Croatia. Non-budgetary organisations (neproračunski korisnici) includes all legal persons that are not direct users of the state budget of the Republic of Croatia. They have to be registered in one of the following registers: Registar udruga (in the Ministry of Administration of Croatia), Registar zaklada (in the Ministry of Administration of Croatia) and Registar udruga – knjige udruga više razine (in the Ministry of Economy, Labour and Entrepreneurship). The Republic of Croatia will provide state contribution (co-financing) for project parts of Project Partners / Lead Beneficiaries coming from the above-mentioned categories of private non-profit entities in Croatia. The share of the state contribution will be 15 per cent of the total eligible costs of the respective project part and will be covered by the Ministry of Regional Development, Forestry and Water Management. The Financing Agreement between the Government of the Republic of Croatia and the Commission of the European Communities concerning the ‘Hungary-Croatia IPA Cross-border Co-operation Programme’ under the Instrument for Pre-accession


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Assistance, done at Zagreb and Brussels on 1 December 2008, contains provisions necessary for the management of state contribution17. The Subsidy Contracts for the State Contribution will be concluded in Croatia by the Ministry of Regional Development, Forestry and Water Management.

6.2 IMPLEMENTATION RULES The present Chapter on project implementation is intended to give the Project Partners and the Lead Beneficiary an overview of the framework of implementation conditions in case their project will be selected for Community funding. These shall be taken into account by the Project Partners / Lead Beneficiaries already when designing the project.

6.2.1 Reporting and payment procedures

6.2.1.1 Regular project reports As it is specified in the Programme Document and as it will be detailed in the Subsidy Contract, the payment of Community funding is linked to the submission and approval of progress reports. The Lead Beneficiary principle determines the reporting and financial tasks during project implementation.

It is important to note that detailed reporting and financial conditions will be laid down in the Subsidy Contract, the template of which constitutes Annex 6 of the present Guidelines.

During project implementation the following reports will have to be submitted by the Lead Beneficiary to the Joint Technical Secretariat:

17

Official letter sent from MRDFWM (HOS, IPA Component II) to the MA on 17 February 2009 (Class: 910-04/08-01/59, Number: 538-04-09-3)


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• Project level progress reports (at the latest 90 days following the end of each trimester),

• Project level final report (at the latest 90 days following the end of project implementation). Please note that in the follow-up phase of projects already implemented, the Lead Beneficiary has to submit upon request to the JTS project follow-up reports proving the sustenance of the project outputs. They cover 12-month periods from the end date of the project and have to be submitted within 15 calendar days from the end of the periods.

In terms of content, each report (progress and final) on project implementation will include the following:

• Project level activity report based on the verified activity reports of the Project Partners. The activity report shall contain information on implemented activities, it should for the period of reporting describe which phases and activities have been implemented, determine concrete outputs of individual activities, the implementation of set physical objectives (indicators) of the project, it should justify possible deviations from the time frame determined for the project and describe planned activities for the following reporting period. Documents proving that the activities have been implemented (e.g. presence lists, copies of informational/promotional material) will have to be attached to the report on implemented activities.

• Project level financial report based on the verified financial reports of

the Project Partners. The financial report should for the reporting period include expenditure connected to the implementation of activities by individual budget lines as well as data on already disbursed funding by individual budget line. A list of paid invoices, documents proving payments and other relevant documents will have to be submitted along with the financial report.

Progress reports on project implementation, including also the applications for reimbursement, are prepared by the Lead Beneficiary for 4-months reporting periods. The project level progress report must be submitted to the Joint Technical Secretariat within 90 calendar days following the conclusion of the reporting period. The final report must be submitted within 90 calendar days after the project completion date.


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The 90 calendar days submission period of the progress and final reports is added up of the days needed for the verification activities performed on partner level and the preparation and submission process of the project progress report by the LB. The flowchart below describes the steps to be taken by the Project Partners, the Lead Beneficiary and the programme implementing structures in connection to reporting on the implementation of the funded project.

Joint financial and

progress report of

the project and

application forreimbursement

Forwardingapplications for

reimbursement

Partner 2

Partner 3 Partner 4 Partner 5

Partner n

Lead Beneficiary (LB)

checks if the expenditure

of PP-s was validated

JTSverification of reports

and AfRs

Financial Transfer

Unittechnical transfer of

Community funding to the LB

Project Partners collect documentation proving their

expenditure, and get them validated by the ControlBodies

Expenditure validated at

national level

LB distributes Community funding to Project Partners

Certifying Authorityapproves payments and submits applications for

payment to EC

Financial management of projects

Managing Authorityapproves payments


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Partner reports will be verified by the following Control Bodies: In Hungary – VÁTI Nonprofit Ltd., Territorial Offices in Pécs and Zalaegerszeg, In Croatia – Ministry of Regional Development, Forestry and Water Management – Directorate for Budget, Finance and Accounting, Zagreb. The control of the progress reports on project level will be carried out by the Hungary-Croatia Joint Technical Secretariat. The monitoring of the Programme and of the projects will be handled in the common monitoring and information system specially developed for the needs of the programme implementing bodies. (For more information please refer to Chapter 6.3 of the Guidelines on the IMIS 2007-2013.)

6.2.1.2 Exceptional reports Under certain circumstances there will be possibility for requesting exceptional interim reports above the regular reports defined in the Subsidy Contract. Additional obligatory deadlines to submit reports may be set by the Managing Authority, especially in cases when a threat of losing funding for the Programme or the projects because of the decommitment rule – described in the Chapter below – is to be dealt with.

6.2.1.3 The decommitment rule According to the IPA Implementing Regulation, the Programme may have funding decommitted by the EC in case where the allocations set in the financial tables of the Programme are not translated into effective requests for payment within the set timeframe18. Should this loss of funding result from projects lagging behind their payment targets (based on the spending forecasts included in the AF), the Managing Authority can reduce the budgets of these projects.

18 Meaning n+3 years for the yearly allocations of the Programme, ‘n’ being the year of commitment.


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In order to avoid losing funding both at the project and at the programme level it is important that:

• in the project proposals carefully prepared, realistic spending forecasts are made;

• selected projects are ready to start implementation quickly after approval; • financial aspects are effectively monitored during implementation; • Project Partners and Lead Beneficiaries ensure regular, timely and full

reporting.

6.2.2 Procurement rules for projects Introduction and legal basis According to Commission Regulation (EC) No 718/2007 and other regulations relevant to the Programme19, each project contracted under the Programme has to manage procurements of services, supplies and works in accordance with external aid rules, i.e. the provisions of Commission Decision C (2007) 2034 ‘Rules and procedures for services, supply and works contracts financed from the general budget of the European Communities for the purposes of cooperation with third countries’, using the provisions and appropriate templates provided by the PraG (Practical Guide to contract procedures for EC external actions: http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm). The public procurements have to be carried out independently by the Lead Beneficiary and the Project Partners, however, the procedures will be subject to verification process and costs are only eligible for financing after validation of the procurement procedure. The procedures to be applied in case of irregularities revealed in public procurements in the present IPA Programme are those established for the Structural Funds Programmes set out in the following guidelines: http://ec.europa.eu/regional_policy/sources/docoffic/official/guidelines/correcti_en.htm.

19 See Paragraph 1 of Article 121 of the IPA Implementing Regulation.


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According to the terms set out in the PraG the Lead Beneficiary and the Project Partners act as Contracting Authorities, the management mode of the procurement procedure is decentralised and the control is ex-post. The Lead Beneficiary and the Project Partner(s) shall ensure the necessary expertise to carry out public procurement procedures. Eligibility criteria and other essentials The rule of nationality and origin Access to Community external assistance is defined in the basic acts regulating such assistance, in conjunction with the Financial Regulation. The corresponding rules on nationality and origin are listed in Annex A2 to the PRAG per basic act. Without prejudice to the specificity of each basic act which contains the eligibility provisions applying to the instrument, participation in the procurement procedures is normally open on equal terms to all natural and legal persons from: a) Member State of the European Union (Austria, Belgium, Bulgaria, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom); b) Member State of the European Economic Area (Iceland, Liechtenstein, Norway); c) Any country that is a beneficiary of the Instrument for Pre-accession Assistance (Croatia, The Former Yugoslav Republic of Macedonia, Turkey, Iceland, Albania, Bosnia and Herzegovina, Montenegro, Serbia, including Kosovo); d) Any country that is a beneficiary of the European Neighbourhood and Partnership Instrument (Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, Palestinian Authority of the West Bank and Gaza Strip, Russian Federation, Syria, Tunisia, Ukraine); e) Other counties defined under section 2.3.1 of the PRAG. Experts engaged by tenderers may be of any nationality.


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All supplies and materials purchased under a contract financed under a Community instrument must originate from the Community or from an eligible country (check both subchapters – The rule of nationality and origin and Exceptions to the rule on nationality and origin). The country of origin is deemed to be the country in which the supplies have undergone their last, economically justified, substantial transformation. Certificates of origin must be made out by the competent authorities of the supplies' or supplier's country of origin and comply with the international agreements to which that country is a signatory. For the purposes of verifying compliance with the nationality rule, the tender dossier requires tenderers to state the country of which they are nationals by presenting the documents usual under that country's law. The rule of origin applies to all items tendered and supplied. A product cannot originate in a country in which no production process has taken place. The country of origin is not necessarily the country from which the supplies have been shipped and supplied. Where there is only one country of production, the origin of the finished product is easily established. However, in cases where more than one country is involved in the production of supplies it is necessary to determine which of those countries confers origin on the finished supplies. The country of origin is deemed to be the country in which the supplies have undergone their last, economically justified, substantial transformation and the provisions of Article 24 of the Community Customs Code must therefore be applied on a case by case basis to those supplies. If the last substantial transformation has not taken place in a Member State of the European Union or one of the eligible recipient countries, the supplies cannot be tendered for the project. Certificates of origin must be made out by the competent authorities of the supplies' or supplier's country of origin and comply with the international agreements to which that country is a signatory. Exceptions to the rule on nationality and origin Exceptions to the rule on nationality and origin may be made in some cases. The award of such a derogation is decided on a case-by-case basis by the European Commission before the procedure is launched.


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Derogations may be justified on the basis of the unavailability of products and services in the markets of the countries concerned, for reasons of extreme urgency, or if the eligibility rules would make the realisation of a project, a programme or an action impossible or exceedingly difficult. Note, however, that the argument that a product of ineligible origin is cheaper than the Community or local product would not alone constitute grounds for awarding derogation. Grounds for exclusion Tenderers must be excluded from participation in procurement procedures if: a) They are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations; b) They have been convicted of an offence concerning their professional conduct by a judgment which has the force of res iudicata; (i.e. against which no appeal is possible); c) They have been guilty of grave professional misconduct proven by any means which the Contracting Authority can justify; d) They have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the Contracting Authority or those of the country where the contract is to be performed; e) They have been the subject of a judgment which has the force of res iudicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests; f) They are currently subject to an administrative penalty referred to in Paragraph (1) of Article 96 of the Financial Regulation (BUDGET). Tenderers must sign their applications including the declaration that they do not fall into any of the categories cited above. In cases of contracts with a value equal to or


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less than EUR 10.000,00 the Contracting Authority may, following a risk assessment, rule that the declaration is not needed. Administrative and financial penalties Without prejudice to the application of penalties laid down in the contract, candidates or tenderers and contractors who have made false declarations, have made substantial errors or committed irregularities and fraud, or have been found in serious breach of their contractual obligations may be excluded from all contracts and grants financed by the Community budget for a maximum of 5 years from the date on which the infringement is established, as confirmed following an adversarial procedure with the contractor. That period may be extended to 10 years in the event of a repeated offence within five years of the above-mentioned date. Visibility Contractors for services, supplies and works must take the necessary measures to ensure the visibility of the EU funding.

All the compulsory communication elements for Project Partners and Lead Beneficiaries are published in the ‘Guidelines for Implementing Information and Publicity Requirements for the Projects in the Hungary-Croatia IPA Cross-border Co-operation Programme’ (Project Communication Guidelines), available on the official website of the Programme: http://www.hu-hr-ipa.com/en/download.

Other essential points Conflict of interest20: Among other rules, any firm or expert participating in the preparation of a project must be excluded from participating in tenders based on this preparatory work, unless they can prove to the Contracting Authority that the involvement in previous stages of the project does not constitute unfair competition.

20 Conflict of interest is a situation in which the impartial and objective exercise of the functions is compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other shared interest with the Beneficiary.


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Awarding principles: All contract awards, partially or totally financed by the Community Budget, must respect the principles of transparency, proportionality, equal treatment and non-discrimination. No retroactive awards: Contracts are considered to take effect from the date of signature of the last signatory. Contracts or contract addenda cannot be awarded retroactively (i.e. after the end of the execution period) under any circumstances. This means that no disbursements can be effected and no supplies and services provided prior to the signature of the contract and/or addendum. All contracts must show the true dates of signature of the contracting parties. Use of standard documents: Standard contracts and document formats must be used. Record keeping: Unsuccessful tenders have to be kept for five years from the submission deadline of the tender. The contractual and financial documents have to be kept for a minimum period of seven years from payment of the balance and up to the date of the prescription of any dispute action in regard to the law which governed the contract. During and after this period, the Contracting Authority will treat the personal data in conformity with its privacy policy. The documents to be conserved must include all the preparatory documents as well as the originals of all tenders submitted and any related correspondence. Availability of funds: before initiating any procedure, the funds must be available. Environmental aspects: without prejudice to the principles governing the award of contracts, environmental matters should where possible be duly considered. This could e.g. include more environmental-friendly terms of reference/ specifications, increased use of electronic means, reduction in paper consumption (recto/verso prints) etc. Any deviation from the procedures set out in the Guidelines and PraG, requires the prior approval of the Managing Authority, and deviations need to be announced, where applicable and relevant, in the procurement notice. Procurement procedures The rules for applying the standard procurement are summarised in the table below. They are divided between those for services (e.g. technical assistance, experts, studies, provision of know-how and training), supplies (i.e., equipment and


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materials) and works (i.e. infrastructure and other engineering works). Once the Subsidy Contract has been signed (or in certain cases already before, under suspensive clause), the Project Partners and the Lead Beneficiary can proceed with tendering and contracting following these standard procedures. The thresholds given in the table are based on the maximum budget for the contract in question. Where contracts are subdivided in lots, the value of each lot shall be taken into account when calculating the overall threshold. Regardless of which procedure used, all the basic principles have to be respected (including eligibility, exclusion and selection criteria). Note that projects must not be split artificially to circumvent the procurement thresholds. The Beneficiary may award service, supply and works contracts to the subcontractors of a value of EUR 10.000,00 or less on the basis of a single tender. Please note that according to the PraG, published on the EuropeAid website in March 2011, in all cases the Contracting Authority must prepare a report explaining the manner in which the participant(s) in the negotiations were identified and the price was established, and the grounds for the award decision (see Annex a10b of the PraG for single tender procedures). IMPORTANT NOTE: The current Practical Guide to contract procedures for EC external actions (PraG) published on the relevant website of the European Commission is always prevailing: http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm.

Table 3: Tendering procedures and financial thresholds

Please note that the estimated timeframe of the above-mentioned procedures is: - 10-20 days in case of single tender,

- 30-75 days in case of framework contracts, - 40-90 days in case of competitive negotiated procedure or local open tender,

- 80-150 days in case of international tenders.

≤ € 10.000,00 > € 10.000,00 < € 200.000,00 ≥ € 200.000,00

SERVICES Single tender

1. Competitive negotiated 2. Framework contracts

International restricted

≤ € 10.000,00 > € 10.000,00 < € 60.000,00 ≥ € 60.000,00 < € 150.000,00 ≥ € 150.000,00

SUPPLIES Single tender Competitive negotiated

Local open

International open

≤ € 10.000,00 > € 10.000,00 < € 300.000,00 ≥ € 300.000,00 < € 5.000.000,00

≥ € 5.000.000,00

WORKS

Single tender Competitive negotiated Local open 1. International open

2. International restricted

6.2.3 Communication requirements towards projects The IPA Implementing Regulation defines the communication requirements of Project Partners and Lead Beneficiaries. Taking as well into consideration Commission Regulation (EC) No 1828/200621, Project Partners and Lead Beneficiaries are required to:

• ensure that those taking part in the project have been informed of the funding from the present Programme,

• provide clear notice to the effect that the project being implemented has been selected under the present Programme,

• ensure a statement included in any document, attendance or other certificate about the effect that the Programme was financed by the European Union,

• when communicating on all the matters related to the project, the Project Partners and the Lead Beneficiary should use their normal stationery but should always use the logo of the Programme, as well as the EU logo with the obligatory phrase ‘The project is co-financed by the European Union through the Hungary-Croatia IPA Cross-border Co-operation Programme’, as defined in the ‘Guidelines for implementing information and publicity requirements for the projects in the Hungary-Croatia IPA Cross-border Co-operation Programme’ (Project Communication Guidelines).

Among communication tools, Project Partners and Lead Beneficiaries are required to:

• produce promotional material about the project and • have at least one communication event.

At least one means of communication used by the project should be in line with bilingualism as one of the horizontal objectives of the Programme.

For more information on how to handle these requirements, please consult the Guidelines for filling in the Application Form.

21

Commission Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund (CHAPTER II, IMPLEMENTING PROVISIONS OF REGULATION (EC) No 1083/2006, Section 1 Information and publicity)

Guidelines for Applicants for the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013 ___________________________________________________________________________________________

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The Lead Beneficiary bears the responsibility on the project level for informing the public about the funding obtained from the European Union. Projects that finance infrastructure or construction have specific obligatory requirements. If the total Community contribution of the project exceeds 500.000,00 EUR, the Lead Beneficiary that implements the project consisting of infrastructure or construction activities is obliged to ensure that a billboard is put up on the site of the activity. Lead Beneficiaries are obliged to put up a permanent explanatory plaque that is visible and of significant size no later than six months after the completion of the project in case the total Community contribution of the project exceeds 500.000,00 EUR and if the project consists of the financing of infrastructure or of construction activities. For the compulsory design templates for the billboard and the permanent explanatory plaque please consult Annex 1 and Annex 2 of the ‘Guidelines for implementing information and publicity requirements for the projects in the Hungary-Croatia IPA Cross-border Co-operation Programme’. Communication is an essential part of the project and should be implemented continuously during the project lifecycle. Communication activities should support the projects by bringing their results and benefits to the awareness of the target groups. It is strongly recommendable to launch a project-specific website (or to reserve extra space for the subsidised project on the already existing website(s) of the Lead Beneficiary and Project Partners.) It is also recommendable to the Lead Beneficiary to be active in the media promotion of the project activities. All Project Partners / Lead Beneficiaries should ask themselves following questions when planning project-related communication activities:

• What would my project like to communicate and disseminate and what is the message?

• What communication tools will I use to achieve this? (Besides obligatory promotional material and the organisation of at least one communication event, should I use the web and mass media to easily disseminate the message?) What would my project like to achieve with the chosen communication tools?

• Which are the target groups I should communicate to in order to get the highest possible dissemination results?

• How will the communication tasks be divided between the Project Partners and the Lead Beneficiary?

• What is the indicative budget that I need for the communicate activities?


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The Managing Authority and the relevant Control Bodies will ensure the control of the implementation of the communication measures, including the examination of the content as well as the technical characteristics of the activities.

As already mentioned, all the compulsory communication elements for Project Partners and Lead Beneficiaries are published in the ‘Guidelines for Implementing Information and Publicity Requirements for the Projects in the Hungary-Croatia IPA Cross-border Co-operation Programme’ on the official website of the Programme: http://www.hu-hr-ipa.com/en/download. In case of joint tourism development projects please note that a special version of the Programme logo has to be used for the Actions within Area of intervention 1.2, Sustainable Tourism in the Mura-Drava-Danube River Area, as described in the Project Communication Guidelines.

6.3 DESCRIPTION OF THE MONITORING AND INFORMATION SYSTEM According to Letter b) of Article 103 of the IPA Implementing Regulation for the sound financial management of the Programme, the MA ensures that ‘there is a system for recording and storing in computerised form accounting records of each operation under the cross-border Programme and that the data on implementation necessary for financial management, monitoring, verifications, audits and evaluation are collected’. The support of the integrated management system of the Hungary-Croatia IPA Cross-border Co-operation Programme 2007-2013 is facilitated by the introduction and continuous operation of an efficient and reliable monitoring and information system (IMIS 2007-2013). The system supports the joint functions aimed at managing the funding allocated to the Programme and project level, as well as the flow of information among the Participating Countries. The common IMIS of the Programme is based on a management information system which allows data collection and monitoring on both programme and project level. The system provides the programme implementing structures (JMC, MA, CA, Audit Authority (hereinafter referred to as the AA), JTS, Information Point in Croatia and FTU) with a practical tool to perform their tasks and also fosters communication and the flow of information among the Participating Countries. Regarding the functionality of the IMIS 2007-2013, it supports the management of the cross-border Programme through the whole programme and project cycle. As a basic


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requirement, the system operates in accordance with the Lead Beneficiary principle. During the project life cycle, the system enables managing and monitoring different project-related tasks:

- project management (from contracting to closure, partner level data are also included in the e-submission of progress reports),

- financial management (management of Community funding, payment to Lead Beneficiaries, preparation of applications for payment to be submitted to the EC),

- programme level monitoring (indicators), - management of Technical Assistance projects, - storing data of irregularities, - reporting functions and statistics based on the data stored in the system.

The system permits the forwarding of data stored to the EC – in accordance with arrangements agreed between the Participating Countries and the EC. Considering the relatively high number of bodies and users involved in the implementation of the Programme, the system operates and is accessible online, via Internet. This solution facilitates simultaneous data input and flexible data storage capacity at all organisations of the programme implementing structure. The language of the system and of the data input is English. Concerning the technical details, the system works with a sophisticated access rights system (access to functions and data is restricted by organisational membership, level of hierarchy and geographic location). The system operates based on a workflow engine in order to support the operational tasks to be performed within the system. The system works with a JAVATM front end and an ORACLETM database. During the operation of the IMIS 2007-2013, it will be possible to capitalise efficiently on the experience gained during the introduction of the previous INTERREG monitoring and information system; in fact, certain modules of the previous IMIS, after some alteration, were suitable for further utilisation in the new period as well. The first IMIS was an integrated English-language monitoring and information system specifically developed for managing Interreg programmes and projects that Hungary was involved in, used by Member States taking part in the given programmes and by other Partner States. The IMIS has been in continuous operation since June 2005, providing efficient support for the project and programme level implementation of Interreg programmes.

Please note that after having successfully applied for funding and having concluded a subsidy contract for the project, the Lead Beneficiary and the Project Partners will have to use the IMIS to fulfil their reporting obligations. Related trainings will be organised for the future beneficiary organisations.


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7. LIST OF ABBREVIATIONS

Abbreviation Explanation

AA Audit Authority

AF Application Form

AZTN Croatian Competition Agency (Agencija za zaštitu tržišnog natjecanja)

CA Certifying Authority

CB Control Body

CfP Call for Proposals

EC European Commission

FAQ Frequently asked questions

HOS Head of the Operating Structure

ICT Information and communication technology

IMIS 2007-2013

Monitoring and information system

IPA Instrument for Pre-accession Assistance

IPA Implementing Regulation

Commission Regulation (EC) No 718/2007 of 12 June 2007

JMC Joint Monitoring Committee

JTS Joint Technical Secretariat

MA Managing Authority (National Development Agency, Republic of Hungary)

MRDFWM Ministry of Regional Development, Forestry and Water Management (Republic of Croatia)


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Abbreviation Explanation

NGO Non-governmental organisation

NUTS Nomenclature of Territorial Units for Statistics

R&D Research and development

RDI Research, development and innovation

SAA Stabilisation and Association Agreement

SME Small and medium enterprise

VAT Value added tax

8. LIST OF TABLES Table 1: Indicative budget of the third CfP with amounts in EUR – Page 18 Table 2: Community funding, sizes of subsidy from Community funding, duration of

projects and selection procedures per Actions – Page 25 Table 3: Tendering procedures and financial thresholds – Page 161


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APPENDIX 1 – Eligible Project Partners / Lead Beneficiaries in Croatia As the Republic of Croatia is not yet a Member State but a Candidate Country for the membership in the European Union, the list of bodies and categories of bodies governed by public law set out in Annex I of Council Directive (EC) 18/2004 does not include such bodies for Croatia. In case of the Republic of Croatia the source providing information about bodies governed by public law is the List of the Bodies of Public Governance (Popis tijela javne vlasti), published annually. The annual List of the Bodies of Public Governance is the main source for defining public bodies. It has to be considered when using the list that the public bodies included in it can only be eligible as Project Partners / Lead Beneficiaries if they also satisfy the eligibility criteria for the Project Partners / Lead Beneficiaries in the Programme, with special emphasis on the fact that they should be non-profit. The List of the Bodies of Public Governance has been published on the website of the Croatian Official Gazette (Narodne novine). The last version of the list published for the year 2010: Popis tijela javne vlasti za 2010. godinu (NN 19/2010). Please note that by the time of drafting the present Guidelines, a newer update has not yet been published. Non-profit bodies governed by private law (private entities, non-budgetary organisations) can be identified through their registration, as referred to in the table in Section 2) of Part B) of Appendix 2 of the present Guidelines (see establishing documents, certificates of legal status and types of extracts from register to be submitted for organisations in Croatia). Important note: For the eligibility of development agencies in Croatia please consult the table in Section 1) of Part B) of Appendix 2.

APPENDIX 2 – Types of establishing documents A) Organisations in Hungary

Type of organisation Name of establishing

document Registering authority Name of extract

Nonprofit gazdasági társaságok Alapító okirat Cégbíróság, cégbírósági nyilvántartás

Cégkivonat

Társadalmi szervezetek, köztestületek, alapítványok

Alapszabály, létesítő határozat, jogszabály

Megyei bíróság, bírósági nyilvántartás

Kivonat

Központi költségvetési szervek (pl. Közlekedésfejlesztési Koordinációs Központ, egyetemek, főiskolák, vízügyi igazgatóságok stb.)

Alapító okirat, létesítő határozat, jogszabály

Magyar Államkincstár, törzskönyvi nyilvántartás

Törzskönyvi igazolás

Helyi önkormányzatok Alapító okirat22 Magyar Államkincstár, törzskönyvi nyilvántartás


Önkormányzati költségvetési szervek

Létesítő határozat, jogszabály Magyar Államkincstár, Megyei Igazgatóságok


22

In case of local governments only the minutes of the last statutory meeting has to be submitted, this will in most cases be dated 2010, except for local governments where interim elections have been held.


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B) Organisations in Croatia 1. Public non-profit

Type of organisation Est. document 1. (Establishing legal

act)

Est. document 2. (Statute)

Registering authority Name of extract

Tijela državne uprave

Ministarstva, Središnji državni uredi, Državne upravne organizacije

Have to submit the reference, certified by the legally authorised representative of the organisation, to the number of the Official Gazette (Narodne novine) and to the legal act on which basis they have been established:

Zakon o izmjenama i dopunama Zakona o ustrojstvu i djelokrugu središnjih tijela državne uprave

Not relevant Not relevant Not relevant


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act)



Županija, grad, općina

The decision about establishing relevant county, town and municipality has to be part of the following legal act in Croatia:

Zakon o područjima županija, gradova i općina u Republici Hrvatskoj (OG 86/ 2006); te svi Zakoni o izmjenama i dopunama Zakona (OG 145/ 2010)

Statut

and

Copy of the official announcement of the results on the elections for county prefects / mayors of the Election Committee (Županijsko / gradsko / općinsko izborno povjerenstvo), certified by the legally authorised representative of the organisation

Not relevant Not relevant

Turistička zajednica (županije, grada, općine)

Establishing legal act on constituting the county, town or municipality tourist board

Statut Ministarstvo turizma Izvod iz upisnika turističkih zajednica

Hrvatska gospodarska Establishing legal acts Statut Not relevant Not relevant


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act)



komora

Hrvatska obrtnička komora

on constituting Croatian chamber of commerce and county regional chambers

Establishing legal acts on constituting Croatian chamber of trades and crafts and regional chambers

Razvojne agencije23

Poduzetnički centri24

Regionalne energetske agencija

Establishing legal act, in accordance with the respective national level legislation setting up the rules of establishing the

Statut

Sudski registar trgovačkih društava u Republici Hrvatskoj

https://sudreg.pravosudje.hr/Sudreg/

Izvod iz sudskog registra

23 Important note: Development agencies (razvojne agencije) in Croatia are eligible if they are in compliance with Article 20 of the Law on Regional Development of the Republic of Croatia (Zakon o regionalnom razvoju Republike Hrvatske, NN 153/2009), i.e. they are in the 100 per cent of ownership of a county (or several counties) or/and of a town/municipality (grad/općina) – this fact has to be proven with the documents cited in the above table.

24 Important note: Business centres (poduzetnički centri), Regional Energy Agencies (regionalne energetske agencije) and Technology-Innovation Centres (tehnološko-inovacijski centri) in Croatia are eligible if they are in the 100 per cent of ownership of a county (or several counties) or/and of a town/municipality (grad/općina), or any other non-profit institution(s) satisfying the eligibility criteria for LB-s and PP-s in the Hungary-Croatia IPA CBC Programme – this fact has to be proven with the documents cited in the above table. It should be clear from their establishing document and extract from register that they are exclusively non-profit and are established for the specific purpose of meeting needs in the general interest and are not having an industrial or commercial character.


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act)



Tehnološko-inovacijski centri

Sveučilišta, veleučilišta

Instituti

Škole

Pučka otvorena učilišta

Hrvatski zavod za zapošljavanje

organisation in question

index.jsp

Ustanove za upravljanje vodama

Ustanove za upravljanje šumama

Parkovi prirode

Županijske javne ustanove za upravljanje zaštićenim dijelovima prirode

Establishing legal act, in accordance with the respective national level legislation setting up the rules of establishing the organisation in question

Statut

Sudski registar trgovačkih društava u Republici Hrvatskoj

https://sudreg.pravosudje.hr/Sudreg/ index.jsp

Izvod iz sudskog registra


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act)



Lučke uprave

2. Private non-profit

Type of organisation

Est. document 1. (Establishing legal

act)



Sindikati25

Hrvatska udruga poslodavaca

See under ‘Name of extract’

Statut Ministarstvo gospodarstva, rada i poduzetništva

Izvod iz Registra udruga (knjige udruga više razine)

Udruge

or

Zaklade

See under ‘Name of extract’

Statut

including the written confirmation of the responsible office of state administration (ured državne uprave)

Ministarstvo uprave

http://www.uprava.hr/RegistarUdruga

or

http://www.uprava.hr/RegistarZaklada

Izvod iz Registra udruga Republike Hrvatske

or

Izvod iz Registra zaklada Republike

25

All trade unions (in Croatian: sindikati), except for the Trade Union of Pensioners (Sindikat umirovljenika) which is registered as an association at the Ministry of Administration.


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that the given statute is in compliance with the respective law

Hrvatske

APPENDIX 3 – Recommended content for feasibility assessment 1. Executive summary

The following have to be clear from this point: o Why is it necessary to implement the project? o What is the cross-border effect of the implementation?

Further aspects related to the project: o Description of the starting situation, indication of the project location o Description of the objectives, results, impacts of the project, underlining the

reasonability o Short description of the intended improvement of capacities, new or

upgraded activities/services and technical content o Implementation schedule o Introduction of the implementing organisation (Project Partner / Lead

Beneficiary) o Planned operational frame o Summary of the financial background

2. Project background

• Introduction of the projects’ Lead Beneficiary: o General description of the Lead Beneficiary: ownership, human capacity,

main profile and its connection with the project, similar improvements / implemented projects, especially the results of these and the follow up period / maintenance of the results should be highlighted.

• Economic, social, environmental basics / background information: o Only important and relevant background information should be mentioned.

Especially the natural and built environment and the issues that may have effect on the project have to be shown.

• Partners and forms of co-operation: o Ownership, human capacity, main profile and its connection with the

project, similar improvements / implemented projects and partnership/co-operation in the past (if any) has to described;

o Roles and responsibilities in the project, communication and co-operation in the project.

• Description of specialties: o Specialties which are important to understand the opportunities and limits

of the project in aspects of implementation, target group, risks, environment, technology, financing etc.


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3. Definition of demand/development needs and goals

• Evaluation of the current situation: o Staring information, data, procedures should be presented here to point

out the reasons which lead to the formulation of the goals and intended results. The result of the SWOT analysis should be mentioned (if there were any).

• Supply and demand analysis: o The supply and demand analysis has to show the needs related to the

future improvements made by the project. The needs of the main consumers / target group and the affecting main trends and expected changes should be outlined. Similar products/services/activities in the closer operational environment have to be described.

• Presentation of the target group(s): o Connected to the demand described above, the target groups have to be

determined (and their selection be reasoned) and the main composition has to be shown.

• Determination of goals (goals, expected results, effects, impacts): o From the viewpoint of goals, expected results, effects and impacts cross-

border impact have to be presented as well as the effect on the target groups, the stakeholders, the region, sustainability and the environment.

• Technical and vocational specification, description of project content: o Infrastructural conditions, preconditions have to be investigated,

accessibility might be a crucial point; o Expected technical content of the improvement; o Planned activities.

• Prediction of operational conditions: o Structure, main tasks and estimated costs of the operation.

4. Implementation of the project

• Project management: legal entity, structure, responsibilities, leaders and experts (qualification, relevant experience have to be described)

• Description of the detailed technical content: o It is important that the description has to prove that the presented technical

content ensures the proper technical conditions for the operation of the planned improvement.

• Detailed proposal for operation (technical and human capacity conditions, description of the provided services)

• Business and marketing plan (description of services, pricing, sales): o Generated value of the activity, uprising advantages for target group,

range (how will the improvement function);


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o Description of provided services, pricing, sales promotion with emphasis on at least the sustention period.

• Project (activity) schedule (schedule of the technical implementation as well as the preparatory and management workflows):

o Timing, sequence and interlacing of the activities, bottlenecks have to be shown;

o Realistic timing has to comply with the time needs of preparation, connected processes (e.g. public procurement, reporting, authority processes such as permission procedures etc.) and risk management.

• Information and publicity, communication • Assessment of the project’s environmental impact :

o With emphasis on environmental impacts on elements (water, land, living environment), procedures, structures and built environment. Instruments and actions to be used in the interest of the environment have to be highlighted.

5. Financial analysis

• Prediction of investment costs • Financial schedule • Sustainability • Revenues, handling of receipts

6. Risk analysis and risk management strategy

Estimation of risks deriving from the factors below has to be made: o Risks of technology (risks during preparation and implementation,

technological damage, breakdown); o Legal factor (related legal environment, regulatory changes); o Social factor (stakeholders, public opinion, possible resistance); o Financial-economic sustainability (operation costs, economic

environment); o Institutional factor (changes in the planned operational structure,

procurement procedures etc.). According to the estimation of risks a risk assessment/management strategy has to be prepared, reflecting on the potential uprising hazards.

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