Obtaining EU funding for a greenfield project in Southern Romania

Transcription

1 Obtaining EU funding for a greenfield project in Southern Romania voestalpine Steel Service Center Romania SRL From submission through to evaluation and implementation... MMag. Stefan Einfalt, June 18th, 2012, AWO-Forum

2 voestalpine Group Overview voestalpine is a globally active Group with a number of specialized and flexible companies that produce, process and further develop high-quality steel products. The Group is represented by approximately 360 production and sales companies in more than 60 countries. With its highest quality flat steel products, voestalpine is one of Europe s leading partners to the automotive, energy, white goods and consumer goods industries. Furthermore, voestalpine is the world market leader in turnout technology, tool steel, and special sections, as well as number one in Europe in the production of special rails. The four divisions of the Group each occupy leading positions in their respective core segments. The voestalpine Group generated revenues of EUR 12.1 billion in the business year 2011/12 and has 46,500 employees worldwide. 2

3 voestalpine Group Leading Position in the Core Segments Steel Special Steel Metal Engineering Profilform Automotive Top European player Global leadership Global leadership Global leadership Top European player Top-three European supplier of high quality sheet and global top position in heavy plate for the most demanding applications. Worldwide leader in tool steel. Leading position in high-speed steel and special forgings. European market leader for rails and processed wire, world market leader for turnouts and complete railway systems; leading position in welding consumables and seamless tubes. Worldwide market leader in special sections and custom roll forming; leading position in precision strip. Top-three European player in the automotive supply industry for special components. as of April 1, 2012 Metal Forming Global leadership Leading worldwide provider of high-quality metal processing solutions, in particular special sections and precision steel coil as well as special components for the automobile industry. 3

4 voestalpine Steel Service Center Group Exactly tailored to your needs The network of competence for high-precision slit strip cut sheets cut shapes made of high-quality hot-rolled, cold-rolled and surface-finished thin sheets. 4

5 voestalpine Steel Service Center Group Always close to you Production locations Linz, Austria Tychy, Poland Giurgiu, Romania Holdings Cittadella, Italy Stuttgart, Germany Sales offices 23 locations in 21 countries (voestalpine Eurostahl) 5

6 Greenfield project voestalpine Steel Service Center Romania SRL To construct a voestalpine Steel Service Center at the site in Giurgiu, Romania

7 Location selected - Giurgiu, Romania The Sizesite of site, in approx. Giurgiu 4.0 hectares Direct rail link Connection to the river Danube Centrally located between core markets 7

8 Design for manufacturing halls and offices Hall 1 gross size 4787 m2 VM 3190 m2 FM 1590 m2 Hall 2 gross size 3797 m2 PR 2480 m2 FM 1324 m2 Total 8584 m2 8

9 5 stages of the subsidy process a single structure 1. Claiming 2. Preparation 3. Evaluation 4. Tendering 5. Reimbursement Preparation The "Lessons Learned" outlined below in relation to the application by voestalpine Steel Service Center Romania SRL have been structured in a manner that complies with the phases described.

10 Stage 1: "Claiming" - Lessons Learned In cooperation with the Management Authorities, voestalpine Steel Service Center Romania SRL submitted several claims, in order to bring about improvements in relation to unclear points in the guidelines. As a result of this, the funding authorities carried out appropriate changes with regard to all of the points in question... When submitting applications for funding, you should not passively accept any criteria or requirements that are incomprehensible or illogical. Instead, you should formulate explanations and suggested improvements based upon facts and documentary evidence. You have the power to help to shape the guidelines! 10

11 Stage 2: "Preparation" The following documents must be submitted with the application or must be shown prior to the signing of the financing agreement: 1. Legal acts Articles of Association Extract from the Commercial Register Certificate of inclusion in the Commercial Register Declaration confirming that the company is categorized as either a large, medium-sized or small enterprise in the sense of Annex 1 of the Registration Act 27/2006 Proof of entry in the register of associations and foundations / certificate of incorporation Deed of compliance relating to the incorporation of companies using state capital 2. Financial acts Official balance sheets from the past 2 years, including profit and loss account for the applicant and the partners 3. Other certificates Confirmation that the applicant is not in debt to the state Extract from the tax register relating to the applicant's legal and technical representative 4. Documents that certify the applicants contribution to the project Investment authorization from the Supervisory Board Extract from the Land Registry relating to the site Confirmation on the company's own liability that the site is not the subject of a dispute. Confirmation of credit rating from the bank in the event that a loan is involved Approval of finance from the company's banks Declaration by the partners relating to their shareholding as stated in the application for finance / consent of the partners, 50% of the investment amount for the duration of the project and an additional 15% for the following 3 years 11

12 Stage 2: "Preparation" The following documents must be submitted with the application or must be shown prior to the signing of the financing agreement: 5. Other documents Map of the project location Environmental permit, environmental impact assessment Building permit and other permits relating to the site and construction Ownership of the site, including an independent estimation of the value of the site Eligibility declaration: Confirmation that the company is not undergoing restructuring and is not subject to equalization or insolvency proceedings A statement to the effect that no state subsidies have been received during the last 10 years in respect of buildings and in the last 6 years in relation to sites Business plan Feasibility study Technical project description drawn up by a certified planning consultant Cost-benefit analysis, including cash flow CVs of all individuals that form part of the project team Other documentation (market study), if requested by the funding authority 12

13 Stage 2: "Preparation" Lessons Learned Scope of documents to be submitted voestalpine Steel Service Center Romania SRL around 400 pages of DIN A4 paper 13

14 Stage 3: "Evaluation" 3 steps 1 Administrative Approval Was the application submitted on time? Are the documents complete and in the correct form? (Financing application, Declaration of Eligibility Declaration of Commitment, Feasibility, CBA, ) Evaluation carried out by the local authority itself... 2 Eligibility Approval Is the right project being submitted under the right program? Do the objective and proposal correspond to the program guidelines? Evaluation carried out by the local authority itself... 3 Final Assessment Evaluation will take place in accordance with the list of criteria Evaluation carried out by an independent evaluator... 14

15 Stage 3: "Evaluation" - Criteria The final evaluation will be based on a publicly-available set of criteria. The points awarded to specific aspects of an application are also in the public domain. On a basic level, the criteria each come under one of the following five headings: Consistency with the objectives of SOP IEC Quality and Coherence Maturity Sustainability The beneficiaries' capability to implement the project 15

16 Stage 3: "Evaluation" Lessons Learned You must adhere strictly and precisely to ALL of your obligations in terms of information and publicity Sample documents can be found in the "Visual Identity Manual 16

17 Stage 4: "Tendering" - Principles Throughout the entire purchasing process, the following principles must be observed for every decision: Non-discrimination and equal treatment (Creation of the right conditions for genuine competition ) Mutual recognition (Acceptance of products, services and work legally available on the market in the European Union) Transparency (Publication of all information relating to the implementation of the process of awarding the contract) Proportionality (Ensuring that the needs of the beneficiary, the purpose of the contract and the requirements to be fulfilled are in agreement with each other.) Efficient use of public funds (Optimum balance to be achieved between quality and price.) Assuming responsibility (Definition of the duties and responsibilities of those involved in the purchasing process ). 17

18 Stage 4: "Tendering" - Stage model Stage Content 1 Planning of purchasing - Establishing requirements - Estimating the value - Selection of the procedure (in accordance with OUG 34/2006/instructions) 2 Drafting of the documents for awarding of the contract 3 Announcement/invitation to tender - Drafting the functional specifications - Specification of contractual clauses - Specification of minimum requirements with regard to suitability and selection (optional) - Specification of criteria for awarding the contract - Rules relating to participation and the avoidance of conflicts of interest - Drafting and publication of the announcement regarding participation in a local/national newspaper - Drafting and sending of the invitation to tender to at least 3 potential providers - Provision of documents relating to the awarding of the contract - Responding to requests for clarification 4 Implementation of the process - Receipt and registration of bids - Opening of bids - Assessment of bids - Drawing up report on the assessment of the bids and decision on awarding of the contract 5 Awarding of the contract - Communication of the results of the process to the bidders - Publication of the announcement regarding the awarding of the contract in a local/national newspaper - Signing of the contract 18

19 Stage 5: "Reimbursements Optimum preparation of the "reimbursement claims" constitutes a key factor in success for the entire sub-project "Subsidies": Only in connection with reimbursement claims is compliance with all guidelines described in "Stage 4: Tendering" monitored. Only in connection with reimbursement claims does the authority check that contracts have been concluded correctly with suppliers, that the client is correctly invoiced for products and services, that all proof of progress with construction is provided correctly and that the subsidized capital goods have been dealt with correctly from an accounting viewpoint. This all takes place as part of the obligatory submission of the "tender file" for all contracts awarded for which payments are requested in reimbursement claims. 19

20 Stage 5: "Reimbursements The tender file must include the following documents: Justification regarding the determination of the estimated value; Contract notice; Invitations; Proof that the contract notice has been transmitted to a local/national newspaper in order to be published; Proof that the invitations have been transmitted to at least three potential bidders; Tender documentation; Offers submitted to the Company and the bidders affidavits regarding the situations listed under item 3 above, in original; Requests for clarifications + issued clarifications; Evaluation and award minutes; Proof that the tender result has been communicated to the bidders; Proof that the tender result has been published in a local/national newspaper; Awarded contract. 20

21 Stage 5: "Reimbursements The following must now also be provided: The application for reimbursement The progress report Certified copies of the following documents marked "conforms to the original", with the stamp of the beneficiary and the signature of the legal representative: Invoices (with detailed description of the product purchased, the service provided or the work carried out), Payment documents, bank returns, other supporting documents or accounting documents, Audited accounts, analytical account forms showing the registration of primary documents in the accounts; For information and advertising: photographs, notices, announcements, documents showing proof of payment for radio and television advertising 21

22 Monitoring stage - indicators The success of the implementation of a project that has been submitted is monitored immediately after completion of the project and over a period of 5 years after completion of the project. Monitoring is carried out primarily on the basis of the following indicators: Tangible and intangible capital goods purchased Developed land Amount of financing from own funds (= total - subsidy) Increase in sales after implementation of project Jobs created and preserved Increase in proportion of exports 22

23 Lessons learned A brief summary Carry out a self-assessment with regard to the known evaluation catalog based on an existing business plan. Pay particular attention to K.O. criteria for submission. Aim to play a part in designing the guidelines by submitting claims. Find a competent consultancy with experience in dealing with the local authorities. It is often impossible to overcome a language barrier without massive losses. Find a competent law firm with experience in carrying out public tender procedures to support you. Ensure that the project team that is to prepare the documents for submission includes both technical experts and financial experts - involve the consultant who is to be responsible for contact with the authorities in ALL preparatory measures for the documents to be submitted. Be aware that considerable delays can occur in relation to the timelines originally published by the authorities and allow for this possibility. Work must not begin on the project before a decision has been reached on subsidies! 23

24 Thank you for your attention! 24