CALL FOR PROPOSALS FOR TERRITORIAL ACTION PLAN PROJECTS - SKHU/1802 Restricted call

Deadline: Nov 12, 2018  
CALL EXPIRED

Application package

All documents related to the Call are available on the Programme website which can be downloaded as Application package. The package contains several guides, manuals, sup- porting materials and legislations that help the correct interpretation of the Call. Applicants may also participate on personal consultations with the members of the Joint Secretariat if needed. The package includes the following documents:

Call for proposals Predefined annexes

•   Annex I.A – Declaration of the Beneficiary /SK/

•   Annex I.B – Declaration of the Beneficiary /HU/

•   Annex III – Declaration on State aid

•   Annex IV – Declaration on SME qualification

•   Annex IX – Declaration on partnership Guides and manuals

•   Visibility guide for projects

•   Guide on eligible expenditures

•   Guide on indicators

•   IMIS 2014-2020 application manual

Supporting materials

•   The new SME definition - User guide and model declaration

•   General guidelines for developing a business plan

•   Template of the Partnership Agreement

•   Template of the Subsidy Contract

Guiding legislations

•   Commission Regulation (EU) No 1407/2013

•   Commission Regulation (EU) No 651/2014 as amended by Commission Regulation (EU) 2017/1084

•   Annex I. of the Treaty

•   44/2016. (III.10.) Government Decree in relation with state aid rules

Assessment grids

Amendments to the Call and the updated Application packages are published on the pro- gramme website. Please note that due to possible amendments, Applicants should check the Programme website regularly.

 

Basic principles

Intervention logic

The complexity of the PA3 determines comprehensive interventions including infrastructural and soft elements. Since these interventions are difficult to deal within single projects, Appli- cants had to create Territorial Action plans for Employment [TAPE] first and divide the pro- posed interventions into separate project proposals creating an interrelated chain of operations. The aim of the action plan was to

•   thoroughly analyse the target area and identify the change needed on,

•   match territorial needs with the eligible actions of the PA,

•   set adequate objectives, clarify the target groups and the expected results,

•   define appropriate steps for the implementations,

•   accompanied by necessary inputs and

•   identify the outputs that will be used by the relevant target groups.

These principles also have to be kept during the elaboration of separate project proposals submitted for the second round of the selection procedure [hereafter: project]. Each project shall be developed further as a part of the TAPE, but at the same time, they have to be fully functional as standalone operations as well. This means all projects have to:

•   precisely identify challenges to be tackled,

•   match objectives with the eligible actions,

•   set the objectives and the expected results clearly with the qualitative description of the change,

•   set activities that are adequate for the implementation,

•   assign them with necessary resources (budget, time, capacity), and

•   define the tangible outputs (final products, services and solutions).

Each project shall be developed according to the original proposal drafted in TAPE. The sub- stantial parts of the projects e.g. the mission, expected results and target groups cannot be modified. Flexible parts e.g. composition of the project partnership, budget, duration or target values of some indicators can be adjusted to the present circumstances.

 

Key elements of the TAPE

Structure of the TAPE

Ensuring the TAPE’s consistency, key elements of the approved action plans have to be re- spected in the present call as well. Each TAPE contains minimum three projects creating synergic or complementary relations. In this context, projects are able to fulfil their mission only if all related projects are realized as well. Therefore submitted projects for the present Call can be approved if all projects included into the TAPE were submitted and

•   recommended for approval or

•   recommended for approval with conditions.

The project can be approved even if other projects within the TAPE were rejected, if the ful- filment of the key output indicators can be ensured by other projects and the loss of the syn- ergic or complementarity effects can be eliminated.

The structure of the TAPE can be modified in the following cases:

1. a)  new project can be added into the structure if responsibilities derived from the Lead

   Beneficiary principle shall be optimized by splitting of a particular project or if change in project partnership composition requires modification of the structure as well;

2. b)  project can be omitted from the structure if the fulfilment of the key output indicators can be ensured by other project(s) and the loss of the synergic or complementarity ef- fects can be eliminated.

However applicants shall note that the structure of the TAPE can be modified only with the full respect of the conditions set in the Call for proposals /SKHU-1703/ as follows:

•   each TAPE has to include minimum 3 maximum 8 project proposals created in line with the list of eligible actions;

•   each TAPE has to contain minimum one Key action project and one predefined sup- plementary project called Coordination and communication project;

•   project proposals having no remarkable synergic or complementary relationship with other projects within the TAPE therefore having no direct or indirect effect on em- ployment or labour mobility objectives cannot be supported.

Eligible actions

Eligible actions serve as guidelines and frame for the proposed projects. Each project shall be developed in line with one of the key or supplementary eligible actions.

Key actions

1. 1)  Development of local products and services creating new working places

2. 2)  Improving cross-border labour mobility

 

Supplementary actions

3. 3)  Modernization and structural transformation of specific areas

4. 4)  Launching integrated cross-border employment initiatives

5. 5)  Business services promoting employment

6. 6)  Joint education and training programmes

7. 7)  Coordination and communication services

Actions chosen for the proposed projects can be modified only in case of supplementary ac- tions if the objective of a particular project was not matched correctly to the action.

Project partnerships

The implementation of the TAPE is undertaken by wide partnership of local actors [Consorti- um] from both member states. Having the TAPE structured is also important from the ‘Lead Beneficiary principle’ point of view. Keeping the Lead Beneficiaries’ responsibility the lowest, members of the Consortium shall form individual project partnerships between Beneficiaries with similar or additional objectives. Composition of the project partnerships can be modified if any member of the proposed partnership step back from the second round of the selection procedure respecting the following conditions:

•   Lead Beneficiary of the CCP can be replaced only by organization that is already the member of the Consortium;

•   the modification of the project partnership can be accepted if the target value of the key indicator CO02 - Number of enterprises receiving grants (pcs) indicated in TAPE was not decreased after the submission of the separate projects. This basically means that an SME beneficiary can be replaced only by another SME;

If Beneficiaries undertaking the CCP are not involved into any other key or supplementary project eligible applicants can be only the following type of institutions:

•  regional, county or local municipalities,
•  European groupings of territorial cooperation,  development agencies,
•  local action groups.

Total budget of the TAPE

During the second round of the selection procedure Applicants have to respect the maximum ERDF allocation approved by the Monitoring Committee during the first round of the selection procedure and the available total budget predefined for each eligible action in the present Call. The approved ERDF contribution can be freely reallocated between projects or Benefi- ciaries if substantial parts of each project (mission, expected results, target groups) remain ensured.

 

Target value of linked indicator

All projects have to contribute to the fulfilment of the result indicator directly or indirectly as a part of the TAPE. At the same time, each project has to fulfil at least one Common and pro- gramme specific output indicator. Since some output indicators are linked to other parame- ters of the TAPE (e.g. amount of the ERDF contribution), Applicants can modify the target values of these key indicators as follows:

1) Projects submitted for the present call can be approved if the target value of the key indicator CO02 - Number of enterprises receiving grants (pcs) set in the TAPE was not decreased in the submitted projects;

2) Projects submitted for the present call can be approved if the target value for the key indicator CO08 - Employment increase in supported enterprises set in the TAPE was decreased in the submitted projects in line with conditions set in the first Call for pro- posals /SKHU-1703/ as follows:

 

(TABLE NOT AVAILABLE)

 

Project durability

Projects comprising investment in infrastructure or productive investment shall be maintained in the target area for at least five years or at least three years in the case of SMEs, after the final payment to the Beneficiary. Please note that projects shall repay the community contri- bution if within the maintenance period the Beneficiary is subject to any of the following:

1. a)  cessation or relocation of a productive activity outside the programme area;

2. b)  a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage;

3. c)  a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

 

Eligible actions

All projects have to be developed in line with the selected eligible action. Eligible actions serve as guidelines for the project development that determine the scope of objectives, timeframe for the implementation and the size of the total budget as well. In general, key action projects must create new working places or enhance labour mobility directly while pro- jects developed in line with supplementary actions shall support or exceed the efficiency of the key action ones. This means that projects and individual project partnerships shall be created by Beneficiaries with similar or additional objectives. In case this is not possible ap- plicants have to choose the more relevant action with a special care on conditions set for both actions.

Key actions

1. Development of local products and services creating new working places

Within this action projects with the following objectives can be supported:

•   development of market based local products and services,

•   improvement of public services in the field of education, health and social services.

Specific conditions

•   Projects developed in line with this action have to directly create new working places at relevant enterprises or institutions.

•   Activities concerning products of the soil and of stock farming produced by primary agricultural production sector are not supported.

•   Activities concerning processing of agricultural products are supported in case the fi- nal product is not considered as primary agricultural. The list of agricultural products is set by the Annex I. of the Treaty.

•   Activities concerning hotel and accommodation services, restaurant and catering ser- vices, direct trade and commercial services (e.g. retail services) are not supported in the frame of this action.

2. Improving cross-border labour mobility

Within this action projects with the following objectives can be supported:

•   construction of new cross-border roads, bridges and infrastructure for ferries,

•   development of private transport services,

•   development of accommodation facilities for commuting workers.

  Specific conditions

•   All projects have to improve cross-border labour mobility with direct link to projects creating new working places.

•   Construction of cross-border roads, bridges and infrastructure for ferries with TEN-T relevance not supported.

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 Projects aiming to improve public transport services are not supported. Supplementary actions

3. Modernization and structural transformation of specific areas

Within this action, projects aiming to renovate and/or modernize specific areas contributing to structural transformation can be supported.

Specific conditions

•   Projects have to contribute to transition of an economy from low productivity and la- bour intensive economic activities to higher productivity and skill intensive activities ensuring new ways or higher level of utilisation.

•   Specific areas are considered as rust belts, declining industrial zones, poorly main- tained or unused industrial, agricultural or public facilities.

4. Launching integrated cross-border employment initiatives

Within this action, projects aiming to establish

•   joint employment initiatives,

  (e.g. facilitating unemployed persons returning on the labour market)

•   labour market cooperation initiatives, and
  (e.g. concluding employment pacts between education institutions and employers)

•   innovative employment projects can be supported.
  (e.g. special programs with emphasis on the employability of Roma people)

5. Business services promoting employment

Within this action, projects aiming to establish

•   background services promoting cross border employment,

  (e.g. creation of databases, providing consultancy services, creation of websites etc.)

•   new business services and cross-border cooperation of business support structures, and (e.g. reducing administrative burdens)

•   development of networks to support employment (e.g. IT systems) can be supported.

6. Joint education and training programmes

Within this action, projects aiming to

•   explore training needs and provide joint education and training services,

•   raise awareness among employers in field of discrimination, and projects aiming to

•   ensure common use of expert and consultancy services can be supported.

  Specific conditions

 Joint education and training services shall be created in line with training needs of the labour market of the target area.

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 Development of new training or education curricula is supported only if the activity meets at least one of the following criteria:

o the education activity introduces new specialization as a part of the basic edu- cation portfolio;

o the training represents innovative approach for which curricula or external ex- perts are not available on the market;

o the training is applied for a special target group which requires unique sup- porting materials;

o Beneficiary maintains training activities at least for five years after the reim- bursement of the last payment.

7. Coordinationandcommunicationservices

Within this action, projects ensuring the consistency of the action plan are supported. CCP projects shall include the following activities:

•   coordinating the implementation of the TAPE,

•   providing risk management during the implementation of the TAPE,

•   communicating and capitalizing the TAPE,

•   supporting project management tasks for Regional aid projects,

•   carrying out communication tasks for each project.

 

Eligible applicants Location criteria

Applicants are eligible if they have their seats or regional/local branch offices registered in the programme area. The programme area covers 13 NUTS III level eligible regions adjacent to the Slovak-Hungarian border. In Slovakia 5 self-governing regions and in Hungary 8 NUTS III level regions are eligible as set out in the following table:

 

(TABLE NOT AVAILABLE)

 

Exclusion criteria

Applicants are eligible if:

•   their legal personality is in accordance with the legislation of Slovakia and Hungary

  and are exclusively legal entities;

•   they have fulfilled their obligations relating to the payment of social security contribu- tions and/or the payment of taxes in accordance with the legal provisions of the coun- try 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;

•   they are not bankrupt or being wound up, are not having their affairs administered by the courts, have not entered into an agreement with creditors,

•   they have not suspended business activities, are not the subject of proceedings con- cerning those matters, or are not in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

•   they have not been convicted of an offence concerning their professional conduct by a judgement which has the force of ‘res iudicata’;

•   they have not been guilty of grave professional misconduct proven by any means which the Managing Authority or the National Authority can justify;

•   they have not been 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;

•   they are not subject to a conflict of interests connected to their participation in the present Call;

•   they are not guilty of misrepresentation in supplying the information required by the MA/NA as a condition of participation in the Call or in failing to supply information;

•   they have not attempted to obtain confidential information or to influence the Monitor- ing Committee or the MA/NA/JS during the assessment process of the current or a previous Call.

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Eligible SMEs

In the present Call small and medium enterprises are eligible since new working places shall be primarily created in the private sector. In general, SMEs shall be able to use financial as- sistance for economic growth, for the expansion of their business activities and financial effi- ciency and to employ more citizens living in the target area. The Programme aims to support enterprises which have relevant experience in their profile, stable service or product portfolio and balanced financial history. Enterprises can be eligible if the following criteria regarding their financial background are fulfilled at once.

Minimum duration of operation

Enterprises have to be active on the market at least in the last two fiscal years (2017, 2016). If any action of the TAPE requires the foundation of a new enterprise stakeholders may found a new enterprise for the project purposes in duly justified cases until the submission deadline of the present Call.

No public debts

Enterprises cannot have any public debts at the time of submission of the Application form neither option for instalment payment of public debts.

Positive equity

Enterprises must have positive equity in the last fiscal year not less than the lowest amount of the prescribed capital stock.

Each SME Beneficiary has to prepare and submit a business plan for the implementation phase and the following 3 years of sustainability period according to the guidelines intro- duced in the Application package. For more information please see the document “General guidelines for developing a business plan”.

Exclusion criteria for SMEs

Enterprises cannot be supported if one of the following criteria is fulfilled:

•   they are in difficult situation (according to Regulation 651/2014/EU);

•   their activities have been suspended;

•   they are under bankruptcy proceeding, liquidation, final settlement;

•   they are involved in court cases in respect of their own operations;

•   they are under sanction concerning national or EU support;

•   they have not fulfilled their obligation relating to the payment of social security contri-

  butions or the payment of taxes in accordance with the national legal provisions;

•   they have been the subject of judgement which has the force of ’res iudicata’ for fraud, for corruption, for severe breach of contract in connection to obligations stem- ming from public procurement rules or rules governing the use of Community funding or national subsidies, for involvement in a criminal organization or for any other illegal activity detrimental to the Community`s financial interests;

•  they are subject to a conflict of interests connected to their participation in the present Call.

Identification of the small and medium-sized enterprises

The Managing Authority reserves the right to ask for guarantees from the SMEs beneficiaries and to determine the means of safeguarding the future claims for the contracting procedures

 

Any entity engaged in an economic activity is considered to be an enterprise irrespective of its legal form and the way in which it is financed. In other words, any organisation producing products or services to satisfy market needs in order to reach profit shall be considered as an enterprise. Legal forms of the enterprises may be various. This includes in particular, self- employed persons and family businesses engaged in craft or other activities and partner- ships or associations regularly engaged in an economic activity. In the present call only en- terprises falling into the category of small and medium-sized enterprises [SMEs] stipulated in Annex (1) of the regulation 651/2014/EU can be supported.

The main factors determining whether an enterprise is an SME are the staff headcount and either turnover or balance sheet total. 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. They are taken into account from the date of closure of the accounts. The amount selected for the turnover is calculated excluding value added tax (VAT) and oth- er indirect taxes.

Medium-sized enterprise

The category of medium-sized enterprises 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 does not exceed EUR 43 million.

Small and micro-sized enterprise

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. 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. Individual entrepreneurs are considered as micro enterprises.

 

Partner or linked enterprises

The above described ceilings apply to the figures for individual enterprises only. According to the Article 3 of the Annex I of the 651/2014/EU, an SME can be considered as independent in case it has no participation in other enterprises and no enterprise has a participation in it. Furthermore the SME

•   holds of less than 25% of the capital or voting rights (whichever is the higher) in one or more other enterprises and/or

•   outsiders do not have a stake of 25% or more of the capital or voting rights (whichev- er is the higher) in it.

  The SME may still be ranked as autonomous, and thus as not having any partner enterpris- es, even if this 25% threshold is reached or exceeded by any of the following investors:

•   Public investment corporations, venture capital companies and business angels.

•   Universities and non-profit research centres.

•   Institutional investors, including regional development funds.

•   Autonomous local authorities with an annual budget of less than 10 million euro and

  fewer than 5,000 inhabitants.

  In case the enterprise can be considered as partner or linked enterprise the data to apply to the headcount of staff and the financial amounts should be aggregated according to Article 6 of Annex I of the 651/2014/EU regulation.

  For more information please see the document “The new SME definition - User guide and model declaration”.

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Partnership requirements

Beneficiaries shall be experienced and their profile shall be in line with the role and activities described in the project. Project partnerships shall be composed of Beneficiaries that are linked professionally to the project and may have major contribution and impact within the partnership. The partnership should include organisations that are relevant for dealing with the common challenge or capitalizing on the joint asset identified by the project. Beneficiaries having no clear contribution to project objectives within the project partnership will be with- drawn from the partnership.

The minimum requirement for the project partnership is to have at least one Slovak and one Hungarian partner. In line with the Article 12 (3) Regulation No 1299/2013 of the Council and the European Parliament this requirement is automatically fulfilled by the organisations oper- ated in the form of European Groupings of Territorial Cooperation type of legal bodies. The maximum limit for the project partnership is six Beneficiaries and four associated partners. Enterprises cooperating under a single project should be autonomous enterprises from each other.

Cooperation criteria

The strength of the partnership can be described via four cooperation criteria. Beneficiaries are required to fulfil at least three of the following criteria:

Joint development

The criterion is fulfilled if the project idea is jointly developed by the Beneficiaries.

Joint implementation

The criterion is fulfilled if activities, outputs and results are jointly carried out and each Bene- ficiary is responsible for at least one core activity.

Joint staffing

The criterion is fulfilled if each Beneficiary has internal management staff that are jointly re- sponsible for the project implementation.

Joint financing

The criterion is fulfilled if at least 5% of project budget is used at each Beneficiary.

The Joint development and Joint implementation are obligatory for all projects; the third crite- ria to be fulfilled can be either cooperation in the staffing and/or in the financing of the pro- ject.

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Type of beneficiaries

Lead Beneficiary

Beneficiaries involved into project partnerships shall appoint one organization among them- selves to act as Lead Beneficiary. Lead Beneficiary will bear the responsibilities to represent the whole project towards the Managing Authority, Joint Secretariat, Certifying Authority and Audit Authority. The Lead Beneficiary shall meet the following requirements:

•   assume responsibility for ensuring the implementation of the entire project;

•   lay down the arrangements with the other partners in an agreement comprising provi- sions that, inter alia, guarantee the sound financial management of the funds allocat-

  ed to the projects, including the arrangements for recovering amounts unduly paid;

•   ensure that expenditure presented by all Beneficiaries has been incurred in imple- menting the operation and corresponds to the activities agreed between all the Bene-

  ficiaries.

  The Subsidy contract is concluded between the Managing Authority and the Lead Beneficiary setting out the conditions for support for the entire project. As a result the Lead Beneficiary is considered to be the organization that is legally responsible for the delivery of the whole pro- ject. General tasks of the Lead Beneficiary regarding the implementation of the project in- clude:

•   submission of the Application form;

•   ensuring the delivery of the tangible outputs stipulated in the Application form;

•   ensuring that all Beneficiaries carry out activities in line with the Application form;

•   ensuring that all activities are carried out in line with the approved time plan;

•   collecting the partners claims verified by the relevant body,

•   submission of the project progress reports;

•   submission of the project’s financial claims;

•   receiving payment of the ERDF support and distributing it amongst the partners;

•   recovering amounts paid in error to other partners in the project;

•   submission of Follow-up reports after the closure of the project.

  Cross-border beneficiary

  The minimum setup of the partnership is that the Lead Beneficiary has at least one cross- border partner which has its seat in the other country. In case there is more than one partner with registered seat in Slovakia, Slovak partners shall appoint one organization among them- selves as Main cross-border beneficiary. The role of the Main cross-border beneficiary is to conclude the National co-financing contract on behalf of all Slovak beneficiaries.

Associated partner

Beneficiaries not willing to be engaged financially in the Programme may act as associated partners receiving no direct financial support. Associated partners basically participate as professional guarantee or observers who are benefitting indirectly from the project results. Despite no direct financial assistance Associated partners may also contribute to the fulfil- ment of the relevant indicators.

 

Project requirements

Timeframe

Starting dates

Applicants shall plan project starting dates and project durations cautiously taking into con- sideration several factors like the length of the contracting and procurement procedures, the availability of necessary human resources, cash-flow conditions of the Beneficiaries and the seasonal weather conditions if relevant as well. The implementation of the projects within the TAPE can run parallel or sequentially in line with their synergic or complementarity relations. Applicants shall set the starting dates in line with the following conditions:

•   each TAPE implementation shall start until 1/8/2019;

•   the maximum duration for the implementation of the TAPE is 48 months;

•   implementation of any project approved in PA3 has to be finished until 30/6/2023;

•   starting dates of projects shall be adjusted to 1st day of the months;

•   implementation of any project can start after the submission of the Application form at own risk;

Please note that final starting dates will be set during the contracting procedure.

Project durations

Beneficiaries shall set the possibly shortest implementation time that is still safe for the reali- zation. The implementation of the CCP can be started maximum 4 month before the first re- lated project and may be finished maximum 4 months after the last related project closes. The maximum duration times regarding eligible actions are listed in the following table:

 

(TABLE NOT AVAILABLE)

 

Please note that the Joint Secretariat may decrease the project durations all along the as- sessment or contracting procedure if the timeframe of the project activities are overestimat- ed.

Contracting procedure

The contracting procedure can be included into the project implementation time or may pre- cede the realization. The Contracting starts with the notification of the Lead Beneficiary and lasts approximately 4 months. The Subsidy contract can be concluded after all mandatory annexes are submitted to the Joint Secretariat. According to this:

1. a)  In case of projects starting before 1st of August 2019 the contracting procedure starts parallel to the project implementation. Specific annexes shall be ready until the pro- ject starting date at the latest.

2. b)  In case of projects starting after 31st of July 2019 the contracting procedure starts 4 months before the indicated starting date of the project. Specific annexes shall be ready 4 month before the project starting date at the latest.

Institutions that are not allowed to start project implementation without the signed Subsidy contract shall set the starting date after 31st of July 2019. Please note that Managing Authori- ty may cancel the contracting procedure and withdraw from the Subsidy Contract if the Bene- ficiary is not able to submit mandatory annexes until the given deadline. Please see the following graphics for examples.

 

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