APPLICATION MANUAL MINISTRY OF REGIONAL DEVELOPMENT AND PUBLIC WORKS. PHARE National Programme 2004 III part

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1 CONTRACTING AUTHORITY: MINISTRY OF REGIONAL DEVELOPMENT AND PUBLIC WORKS PHARE National Programme 2004 III part APPLICATION MANUAL Conditions and procedures for Bulgarian partners participating within operations approved by the relevant Steering committees for INTERREG III B and INTERREG III C How to apply for co-funding under Phare programme? Budget line: BG 2004/

2 Table of contents 1. PARTICIPATION IN INTERREG III B AND INTERREG III C PROGRAMMES FINANCIAL ALLOCATION PROVIDED BY THE CONTRACTING AUTHORITY WHAT IS THE ELIGIBILITY CRITERIA? WHO MAY APPLY? IS IT PARTNERSHIP WITH OTHER BULGARIAN ORGANIZATIONS ELIGIBLE? WHAT IS THE MAXIMUM DURATION OF THE ACTION? WHAT THE ELIGIBLE ACTIONS ARE? WHAT THE INELIGIBLE ACTIONS ARE? WHAT IS THE ELIGIBLE NUMBER OF PROPOSALS PER APPLICANT? WHAT ARE THE ELIGIBLE COSTS? HOW TO APPLY? WHAT IS THE PROCEDURES TO BE FOLLOWED? WHERE AND HOW TO SEND THE APPLICATIONS? WHAT IS THE DEADLINE? WHERE TO SEND MY QUESTIONS? WHAT ARE THE CRITERIA FOR EVALUATION? WHEN THE CONTRACTING AUTHORITY PLAN TO ANNOUNCE ITS DECISION? WHAT ARE THE CONDITIONS APPLICABLE TO IMPLEMENTATION OF THE ACTION? LIST OF ANNEXES...12 Annex A: Grant Application Form (Word format - to be filled in)...12 Annex B: Budget (Excel format - to be filled in)...12 Annex C: Administrative Compliance and Eligibility Grid (Word format - for Applicants information do not include in application dossier)...12 Annex D: Per Diems as of December 7, 2004 (Word format - for Applicants information do not include in application dossier)...12 Annex E: Draft Contract (Word format - for Applicants information do not include in application dossier)...12 Annex F: Implementation chart (Word format - for Applicants information do not include in application dossier) Page 2 of 12

3 1. PARTICIPATION IN INTERREG III B AND INTERREG III C PROGRAMMES A continued cohesion process within the whole European space is fundamental for further development of EU Member States and Candidate Countries. During this process regions lagging behind are supported in their integration efforts. As a consequence, Community Initiative INTERREG was designed in the past as one of the focuses of Structural Funds in order to promote cross-border (strand A), transnational (strand B) and later on also interregional (strand C) co-operation (the last strand was introduced newly in this funding period). Whilst the Republic of Bulgaria can refer to a relatively long record regarding the cross-border co-operation, which has been supported by both national funds and the Phare CBC Programme, the focus on the transnational and interregional cooperation was less intensive. Projects in INTERREG IIIB CADSES and INTERREG IIIC programmes are transnational (INTERREG IIIB) and interregional (INTERREG IIIC) in character; their co-operative implementation can only be guaranteed if the participating Non-Member States, to which the programmes are opened, especially the candidate countries, are given the opportunity to practically participate in the programme. Accession countries participating in INTERREG IIIB CADSES and INTERREG IIIC, among them also the Republic of Bulgaria, are also expected to contribute to the programme. This scheme will support a limited number of Bulgarian partners in transnational and interregional projects of INTERREG IIIB CADSES/INTERREG IIIC programmes and in general it will contribute to strengthening the capacity of the Republic of Bulgaria in order to increase Bulgarian participation in joint projects implemented under INTERREG IIIB CADSES/ INTERREG IIIC with a view to future membership in the European Union. The scheme will support activities carried out within the responsibility of Bulgarian partners within the framework of INTERREG IIIB/IIIC programmes. Only projects with participating Bulgarian partners that have already been approved for funding by the respective INTERREG Steering Committee can apply for a Phare grant. The grants under the Grant Scheme will be awarded to the Bulgarian partners directly as the projects have already been checked as parts of those joint transnational/interregional projects which have successfully gone through an evaluation process under Interreg III CADSES/Interreg IIIC. The procedure will be in full compliance with PRAG rules (section 6.3.2) for direct grant awards. The Bulgarian Government has planned to actively support and complement the EU initiatives and programmes for regional cooperation, while seeking to incorporate the latter into the national framework for regional development planning and programming. The overall objective of the programme is to prepare and facilitate the successful participation of Bulgaria in the INTERREG IIIB CADSES and INTERREG IIIC programmes. The programme purpose is to encourage and increase participation of the Bulgarian partners in INTERREG III strand B and strands C and prepare potential beneficiaries to develop and implement transnational and interregional projects in compliance with the main priorities/type of operations of the INTERREG IIIB/IIIC programmes: INTERREG IIIB (CADSES) PRIORITIES: Promoting spatial development approaches and actions for social and economic cohesion; Efficient and sustainable transport systems and access to the information society; Promotion and management of landscape, natural and cultural heritage; Environment protection, resource management and risk prevention. INTERREG III C - TYPE OF OPERATIONS: Regional Framework Operation; Individual Co-operation Projects; Network Development. Page 3 of 12

4 2. FINANCIAL ALLOCATION PROVIDED BY THE CONTRACTING AUTHORITY The overall indicative grant amount made available under this scheme is EUR. The contracting authority reserves the right not to award all available funds. The indicative amounts for the grant scheme sub-components are as follows: Sub-component 1: INTERREG III B EUR Sub-component 2: INTERREG III C EUR If the case might appear that during the awarding process not enough projects are identified to be financed under Interreg III B/C, the Contracting Authority can reallocate the funds between the subcomponents. Size of grants Any grant awarded under this programme must not exceed 75% of the amount in the co-financing statement signed by the Bulgarian partner (applicant for Phare grant). In addition the requested Phare grant amount could be maximum EUR. The balance must be financed from the applicant's own resources, or from sources other than the European Community budget. 3. WHAT IS THE ELIGIBILITY CRITERIA? These guidelines set out the rules for the submission and selection of actions financed under the programme, in conformity with the provisions of the Practical Guide 1. There are two sets of eligibility criteria, relating to: organisations which may request a grant, types of cost which may be taken into account in setting the amount of the grant WHO MAY APPLY? (1) In order to be eligible for a direct grant award, applicants must: be Bulgarian partner implementing a part of a joint transnational / interregional project approved for funding by the Interreg IIIB CADSES/Interreg IIIC Steering Committees under both strands of the programme; be public bodies or non-profit making organisations, have their headquarters in Bulgaria; be directly responsible for the preparation and management of the action, not acting as an intermediary; (2) Potential applicants may not be awarded grants 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 1 Available on the Internet at this address: Page 4 of 12

5 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 professional conduct by a judgement which has the force of res judicata (i.e., against which no appeal is possible); (c) they are 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 action is to take place; (e) they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests; (f) they have been declared to be in serious breach of contract for failure to comply with their contractual obligations in connection with a procurement procedure or other grant award procedure financed by the Community budget. Applicants are also excluded from participation if, at the time of the call for proposals, they: (g) are subject to a conflict of interests; (h) are guilty of misrepresentation in supplying the information required by the contracting authority as a condition of participation or fail to supply this information; (i) have attempted to obtain confidential information or influence the evaluation committee or the contracting authority during the evaluation process of current or previous calls for proposals. In the cases referred to in points (a), (c), (d), (f), (h) and (i) above, the exclusion applies for a period of two years from the time when the infringement is established. In the cases referred to in points (b) and (e), the exclusion applies for a period of four years from the date of notification of the judgment. Applicants must supply with their applications a sworn statement that they do not fall into any of the above categories (a) to (f) IS IT PARTNERSHIP WITH OTHER BULGARIAN ORGANIZATIONS ELIGIBLE? If the approved INTERREG operation consist more than one Bulgarian partner, they should apply for Phare funding together on the basis of their joint agreement. Furthermore, the coordination between the Bulgarian partners and segregation of tasks should be clearly explained and distinguished in item 1.5 and 1.6 of the Application form. In such case all Bulgarian partners should nominate one of them as Lead Applicant and other partners should be listed within the Application Form (part III, item 2). Lead Applicant and all the Partners must present filled, signed and stamped Partnership Statements in original (according to the model of the Application form part III, item 2.1). All awarded projects must be implemented in close partnership and coordination with the Leading INTERREG partner WHAT IS THE MAXIMUM DURATION OF THE ACTION? Duration of an action must be in compliance with Implementation chart of the INTERREG funded operation. In any case all activities must be completed three months before the end of the disbursement period - August 30, Page 5 of 12

6 3.4. WHAT THE ELIGIBLE ACTIONS ARE? The scheme will support activities carried out within the responsibility of Bulgarian partners within the framework of INTERREG IIIB/IIIC programmes. Only projects with participating Bulgarian partners that have already been approved for funding by the respective INTERREG Steering Committee can apply for a Phare grant. Eligible actions are: The actions which comprise a Bulgarian part of a joint transnational/interregional project approved for funding by the Interreg IIIB CADSES/Interreg IIIC Steering Committees under all Calls for Proposals made by relevant Joint Technical Secretariat; The action should address the following priorities and measures as described in the INTERREG IIIB CADSES Programme Complement, available at OR Тhe projects should respect the following specific eligibility criteria by type of operation as described in INTERREG IIIC Programme Complement, available at All Actions must take place in Bulgaria and in the countries of the partnering organisations of the INTERREG project. SPECIFIC CONDITIONS FOR ON-GOING PROJECTS: For those actions under implementation, funding can not be granted retroactively. All activities that have already been implemented must not be included within the Application form and costs already incurred for these activities should not be reimbursed. All activities implemented by Bulgarian partners must be implemented within the remaining implementation period of the INTERREG funded operations. The remaining implementation period of the INTERREG funded operations must be minimum 6 months WHAT THE INELIGIBLE ACTIONS ARE? individual sponsorships for participation in workshops, seminars, conferences, congresses; individual scholarships for studies or training courses; actions with provisions for financing the usual (routine) activities of the local organizations, especially covering their running cost; actions started before candidates have signed a contract for awarding a grants; actions linked to political parties; charitable donations; actions covered by other community programmes WHAT IS THE ELIGIBLE NUMBER OF PROPOSALS PER APPLICANT? An applicant may not submit more than one proposal WHAT ARE THE ELIGIBLE COSTS? Eligible costs are those costs defined in the original INTERREG funded operation. Only eligible costs can be taken into account for a grant according to Phare rules and must be incurred after the signature of the grant contract. These are detailed below. The budget is therefore both a cost estimate and a ceiling for "eligible costs". Note that the eligible costs must be based on real costs, not lump sums (except for travel and subsistence costs and indirect costs). Page 6 of 12

7 Recommendations to award a grant are always subject to the condition that the checking process which precedes the signing of the contract does not reveal problems requiring changes to the budget. The checks may give rise to requests for clarification and may lead the contracting authority to impose reductions. It is therefore in the applicant's interest to provide a realistic and cost-effective budget. Eligible direct costs To be eligible under the call for proposals, costs must: be necessary for carrying out the action, be provided for in the contract annexed to these Guidelines and comply with the principles of sound financial management, in particular value for money and cost-effectiveness; have actually been incurred by the beneficiaries or their partners during the implementing period for the action as defined in Article 2 of the Specific Conditions, whatever the time of actual disbursement by the Beneficiary or a partner; this does not affect the eligibility of final audit costs; be recorded in the Beneficiary's or the Beneficiary's partners' accounts or tax documents, be identifiable and verifiable, and be backed by originals of supporting documents. Subject to those conditions and where relevant to the contract-award procedures (Annex E-IV) being respected, eligible direct costs include: the cost of staff assigned to the action, corresponding to actual salaries plus social security charges and other remuneration-related costs; salaries and costs must not exceed those normally borne by the Beneficiary or his partners, as the case may be; travel and subsistence costs for staff taking part in the action, provided they do not exceed those normally borne by the Beneficiary or his partners, as the case may be; any flat-rate reimbursement must not exceed the scales approved annually by the European Commission; the cost of purchasing equipment (new or used) and services, provided they correspond to market rates; the cost of consumables and supplies; subcontracting expenditure; costs arising directly from the requirements of the contract (dissemination of information, evaluation specific to the action, audit, translation, printing, insurance, etc.) including financial service costs (in particular the cost of transfers and financial guarantees). Ineligible costs The following costs are not eligible: debts and provisions for losses or debts; interest owed; items already financed in another framework; purchases of land or buildings, except where necessary for the direct implementation of the action, in which case ownership must be transferred to the final beneficiaries at the end of the action; currency exchange losses; taxes, including VAT, unless the Beneficiary (or the Beneficiary s partners) cannot reclaim them and the applicable regulations authorise coverage of taxes. Contributions in kind Any contributions in kind made by the Beneficiary or the Beneficiary s partners, which must be listed separately at Annex B, do not represent actual expenditure and are not eligible costs. They may not be treated as co-financing by the Beneficiary. However, the Beneficiary must undertake to make such contributions as stated on the application form if the grant is awarded. Page 7 of 12

8 4. HOW TO APPLY? WHAT IS THE PROCEDURES TO BE FOLLOWED? Application Form and Budget Applications must be submitted on the Application form and Budget annexed to these Guidelines (as Annexes A and B). The Application form and Budget table are also available on web site at Applicants should keep strictly to the format of the application and fill in the pages in order. Action plan must be in full compliance with the Implementation chart and the timeframes of the INTERREG funded operation, with specified activities for the Bulgarian part of activities. If there is more than one Bulgarian partner involved for each one. Applicants must apply in English language. Please complete the application form carefully and as clearly as possible so that we can assess it properly. Be precise and provide enough detail to ensure the application is clear, particularly as to how the aims of the action will be achieved, the benefits that will flow from it and the way in which it is relevant to the programme's objectives. The procedure which has to be followed is described in Annex F: Implementation chart, enclosed to the Application Manual. Hand-written applications will not be accepted. Supporting documents Applications must be accompanied by the following supporting documents: (1). All kind of applicants (Bulgarian partners of the approved INTERREG project) must present the following documents: 1. Copy of the Application form for the INTERREG project presented to the relevant JTS; 2. Copy of the signed Contract for the INTERREG project with the relevant JTS; 3. Co-financing statement for financial contribution to the INTERREG project; 4. Statement of agreement with other Bulgarian partners participating in the operation (if applicable); 5. CV of the Project Leader (2). For all NGOs: 1. Statutes or articles of association (notary certificated copy); 2. The applicant s most recent annual report and accounts (the profit and loss account and the balance sheet for the previous financial year); 3. Court registration (notary certificated copy); 4. Present Legal Status (original or notary certificated copy issued not later than 6 months prior the date of application); 5. Copy of Tax and VAT registration; 6. Copy of BULSTAT registration; 7. Certificates for debts issued by National Social Security Institute and Regional Tax Administration Office for lack of obligations (issued not later than 6 months prior the date of application) or plan for rescheduling of the debts in case of existing (original or notary certificated copy); Page 8 of 12

9 (3). For municipalities, universities and other public bodies: 1. Documentary evidence for the statute of the applicant (Copy of State Gazette, etc.); 2. Copy of Tax registration; 3. Copy of BULSTAT registration; 4. Last Annual Balance Sheet and Profit and Loss accounts; The supporting documents requested must be supplied in the form of originals or photocopies certified as true by an authorised independent body. Where such documents are in a language other than Bulgarian or English, a faithful translation into one of the latter must be attached and will prevail for the purpose of interpreting the proposal. 5. WHERE AND HOW TO SEND THE APPLICATIONS? Applications must be received in a sealed envelope by registered mail, by private courier service or by hand-delivery (a signed and dated certificate of receipt will be given to the deliverer) to the address indicated below: Ministry of Regional Development and Public Works Phare CBC Implementing Agency, National Contact Point, Room , Kiril I Methodi Str., Sofia, 1202, Bulgaria Applications sent by any other means (e.g. by fax or by ) or delivered to other addresses will be rejected. Applications (Application form, Budget and Supporting documents) must be submitted in 1 (one) original and 2 (two) printed copies. Each hard copy should be marked with ОРИГИНАЛ or КОПИЕ respectively. The application form and budget must also be supplied in electronic format. The outer envelope must bear the reference number of the call for proposals (BG 2004/ ), the full name and address of the applicant, and the words "Not to be opened before the opening session" and "Да не се отваря преди откриването на търга". Applicants should verify that their application is complete by comparing it with the checklist included with the application form. 6. WHAT IS THE DEADLINE? Receipt of applications will be continuous. The applicant could apply not later than June 30, Grants will be awarded until the available amount of funds mentioned in item 2 is exhausted. Depending on the applications received and the funds requested this could happen before the a.m. date. 7. WHERE TO SEND MY QUESTIONS? Questions may be sent by or by fax to the addresses listed below, indicating clearly the reference of the call for proposals: fax: (2) Page 9 of 12

10 Questions that may be relevant to other applicants, together with the answers, will be published on the internet at 8. WHAT ARE THE CRITERIA FOR EVALUATION? Applications will be examined by the contracting authority for compliance with the following requirements (1) Administrative conformity Verification that the application is complete in accordance with the required supporting documents (as per item 4.). (2) Financial conformity The applicants should have stable and sufficient sources of finance to maintain their activity throughout the period during which the action is being carried out and to participate with financial contribution as specified in item WHEN THE CONTRACTING AUTHORITY PLAN TO ANNOUNCE ITS DECISION? Applicants will be informed in writing of the contracting authority's decision concerning their application. A decision to reject an application or not to award a grant will be based on the following grounds: the proposal exceeds the maximum duration allowed (all activities must be completed three months before the end of the disbursement period August 30, 2008); the requested contribution is higher than the maximum allowed; the applicant's financial capacity was not sufficient; proposals selected were considered of better quality according to the technical quality ranking specified in the evaluation of the INTERREG funded projects; The contracting authority's decision to reject an application or not to award a grant is final. The date on which the contracting authority plans to announce the decision following the completion of the award procedure is 30 days after receiving the complete application form accompanied by all required supporting documents. 10. WHAT ARE THE CONDITIONS APPLICABLE TO IMPLEMENTATION OF THE ACTION? Following the decision to award a grant, the Beneficiary will be offered a contract based on the contracting authority's standard contract annexed to these Guidelines (Annex E). Payments will be made to an Action-specific bank account or sub-account which identifies the funds paid by the Contracting Authority. Accounts of the action The Beneficiary must keep accurate and regular records and dedicated, transparent accounts of the implementation of the action (see Article 16.1 of the General Conditions). It must keep these records for seven years after payment of the balance. Page 10 of 12

11 Audit An external audit of the accounts of all the actions will be performed by an approved external auditor who is a member of an internationally recognised supervisory body. The Grant contracts will permit the Commission, the European Anti-Fraud Office and the European Court of Auditors to carry out both record-based and on-the spot inspections of the action (see Article 16.2 of the General Conditions). Publicity Appropriate visibility and credit must be given to the grant made by the European Community, for example, in reports and publications stemming from the action or during public events associated with the action, etc. (see Article 6 of the General Conditions). Implementation contracts Where implementation of the action requires the Beneficiary to award procurement contracts, it must award the contract to the tender offering the best value for money, that is to say, the best price-quality ratio, in compliance with the principles of transparency and equal treatment for potential contractors, care being taken to avoid any conflict of interests. To this end, the Beneficiary must follow the procedures set out in Annex IV to the contract. Page 11 of 12

12 11. LIST OF ANNEXES Annex A: Grant Application Form (Word format - to be filled in) Annex B: Budget (Excel format - to be filled in) Annex C: Administrative Compliance and Eligibility Grid (Word format - for Applicants information do not include in application dossier) Annex D: Per Diems as of December 7, 2004 (Word format - for Applicants information do not include in application dossier) Annex E: Draft Contract (Word format - for Applicants information do not include in application dossier) Annex F: Implementation chart (Word format - for Applicants information do not include in application dossier) Page 12 of 12

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