cohesion policy 2007 2013 operational programme i...cohesion policy 2007-2013 erdf application form...

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Cohesion Policy 2007 – 2013 Operational Programme I

Investing in Competitiveness for a Better Quality of Life

European Regional Development Fund Guidance notes to the Application Form

Ref No. 20/2014

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Table of Contents

General Information ......................................................................................... 1 List of Acronyms .............................................................................................. 1 Chapter 1 – Submission of Eligible Applications .............................................. 2

1.1 General Test of Eligibility ................................................................... 2

1.1.1 Eligible Applicants ...................................................................... 2 1.1.2 Eligible Activities ......................................................................... 2

1.2 Project Eligibility and Selection Criteria ............................................. 3 1.2.1 Eligibility Criteria ......................................................................... 3 1.2.2 Project Selection Criteria ............................................................ 4

1.3 The Application Process .................................................................... 7 1.4 Selection process .............................................................................. 7

1.5 Basic Terms and Conditions .............................................................. 8

Chapter 2 – Step by Step Guidelines to the Application Form ....................... 10 Project Title ................................................................................................ 10

Section 1 – Information on the Applicant ....................................................... 12

1.1 Organisation’s Details ...................................................................... 12 1.2 Type of Organization ....................................................................... 12 1.3 Legal Status ..................................................................................... 13

1.4 VAT status of the activity carried out ............................................... 13 1.5 Involvement of any Other Local Organisation .................................. 13

1.6 Institutional Framework .................................................................... 14 1.7 Experience in EU Funded Projects and other projects .................... 14 1.8 Coordinating Body/ Line Ministry ..................................................... 15

Section 2 - State Aid ...................................................................................... 16 Section 3 - Added Value ................................................................................ 16

Section 4 - Operational Programme .............................................................. 17 4.1 Priority Axis ...................................................................................... 17

4.2 Operational Objectives .................................................................... 17

4.3 Focus Area of Intervention ............................................................... 17 4.4 Links with Priority Axis, Operational Objective/s and Focus Area selected ...................................................................................................... 17

Section 5 – Project Details ............................................................................. 18 5.1 Project Title ...................................................................................... 18

5.2 Nomenclature of Units for Territorial Statistics (NUTS Code) .......... 18 5.3 Project Intervention Code ................................................................ 18 5.4 Technical Description of the Investment .......................................... 20 5.5 Project Objectives ............................................................................ 20 5.6 Background and Justification ........................................................... 20

5.7 Results ............................................................................................. 21 5.8 Activities .......................................................................................... 21

5.9 Project Time Frame ......................................................................... 22 5.10 Target groups .................................................................................. 22 5.11 Other Related Activities ................................................................... 23

Section 6 – Performance Indicators ............................................................... 23 6.1 Output and Result Indicators .............................................................. 23 6.2 Verification of Output/Result Indicators ................................................ 23

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6.3 Impact Indicators ................................................................................ 23

6.4 Verification of Impact Indicators ........................................................... 23 6.5 Other Indicators .................................................................................... 24 6.6 Other targets ........................................................................................ 24

Section 7 – National priorities ........................................................................ 25 Section 8 - Links with the Community Strategic Guidelines and the National

Reform Programme ....................................................................................... 25 8.1 Community Strategic Guidelines ..................................................... 25 8.2 National Reform Programme ........................................................... 26

Section 9 - Horizontal priorities ...................................................................... 26 9.1 Equal Opportunities ......................................................................... 26 9.2 Sustainable Development ................................................................ 27

Section 10 – Financial details ........................................................................ 29 10.1 Estimated Budget Breakdown ......................................................... 29

10.2 Revenue Generation........................................................................ 30

10.3 Other Community Financing Sources .............................................. 34 Section 11 - Contracting and Implementation ................................................ 35

11.1 Public Procurement Table ............................................................... 35 11.2 Employment Contracts .................................................................... 36 11.3 Current Level of Implementation of Project .................................. 36

11.4 Implementation Schedule ............................................................. 36 11.5 Contracting and Disbursement Schedule ........................................ 37

Section 12 - Planning and Environmental Permits ......................................... 37

Section 13 – Publicity .................................................................................... 38 13.1 Obligatory Publicity Measures ...................................................... 39

13.2 Other Publicity Measures ............................................................. 39 13.3 Justification .................................................................................. 39

Section 14 – Readiness ................................................................................. 39

Section 15 - Sustainability of the Project........................................................ 40

Section 16 – Data Protection ......................................................................... 40 Section 17 - Conditionality and Risks ............................................................ 41 Section 18 - Additional Information ................................................................ 41 Section 19 – Declaration ................................................................................ 41

Section 20 – Checklist of Attachments .......................................................... 41 ANNEX I – Ranking Sheet ......................................................................... 42 ANNEX II – National Eligibility Rules ......................................................... 43 ANNEX III – Publicity Table (Example) ...................................................... 43

Cohesion Policy 2007-2013

ERDF Application Form (20/2014)

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General Information

Scope of the Guidelines

The scope of these guidelines is to provide assistance to Applicants when applying for projects part-financed by the European Regional Development Fund (ERDF) under the 2007-2013 Cohesion Policy Operational Programme I. The Managing Authority (MA) is responsible for the management of ERDF. The Planning & Priorities Coordination Division (PPCD) within the Parliamentary Secretariat for the EU Presidency 2017 & EU Funds, Ministry for European Affairs and Implementation of the Electoral Manifesto (MEAIM) is the MA in Malta. Potential Applicants are encouraged to read through the Guidance Notes thoroughly to avoid submitting ineligible applications.

The European Regional Development Fund (ERDF) The role of ERDF is to promote investment and correct the main regional imbalances of the European Union. Priority financing is aimed at: - Research and technological development, innovation and entrepreneurship; - ICT; - Sustainable tourism and cultural infrastructure in support of socio-economic development; - Transport investments and achieving a more balanced modal shift; - Environmental infrastructure, energy investments and risk prevention; - Urban regeneration; and - Educational investments and investments in health and social infrastructure. Furthermore infrastructural investment and productive investment which contributes to creating and safeguarding sustainable jobs continues to play an important role. All projects receiving co-financing must be in line with the Treaties establishing the European Community and the instruments adopted under it. Further information on ERDF could be accessed from the European Commission website:

http://ec.europa.eu/regional_policy/thefunds/regional/index_en.cfm Malta has drawn up the National Strategic Reference Framework (NSRF)

1, a document which

identifies a strategic plan outlining Malta’s vision for the period 2007-2013. The NSRF is supported by two Operational Programmes (OPs). Operational Programme I (OP I), is financed by the European Regional Development Fund (ERDF) and Cohesion Fund (CF) whilst Operational Programme II (OP II), is financed by the European Social Fund (ESF). The focus of these guidelines and application form is on CF under OP I. OPI, entitled, Investing in Competitiveness for a Better Quality of Life (as adopted by the EC on 04.03.2014) comprises of Priority Axes agreed upon between Malta and the European Commission. A revised version of the Operational Programme I is accessible on www.eufunds.gov.mt. Once the changes are approved by the European Commission, the approved version will be uploaded on the PPCD website. Projects submitted under this call for part-financing by ERDF under the 2007-2013 programming period must fit in the following Axis:

Priority Axis 2: Promoting Sustainable Tourism

1 http://www.mfin.gov.mt/page.aspx?site=MFIN&page=NSRF

http://www.eufunds.gov.mt/

http://www.mfin.gov.mt/page.aspx?site=MFIN&page=NSRF



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Focus Area: Product Development and Focus Area: Niche Market Development – This call is open for interventions undertaken by the relevant Public Entities

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The total indicative financial threshold of this call is €1.5 million. Prospective applicants should note the total indicative financial threshold of this call. Proposals are to remain within the budget of the call. The Managing Authority will consider increasing the allocation for this call to use any savings registered under this Priority Axis. Prospective Applicants should note that in all cases above ONLY projects that do NOT involve State Aid are eligible under this Call. The Application Form is available on the www.eufunds.gov.mt. The forms must be submitted both in electronic (in Word and PDF) and paper format. The latter should be signed, stamped and dated by the Applicant. Seven electronic copies

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and PDF. The applications should be submitted by noon (1200hrs) of Friday 4th

July 2014. Further instructions are given under Chapter 1, Section 1.3 of these notes. The Guidance Notes will explain how to complete the Application Form. A number of contact persons are included for certain sections of the application. It is the responsibility of the Applicant to seek the advice from the experts (those identified or others of the applicant’s choice) to ensure the full comprehension of certain concepts, terminology and processes. Submitting a signed application form is a formal statement by the applicant organisation that all the details in the application form are factually correct. It is also a confirmation that if the project is approved, the Applicant will carry out the project as described in the Application Form

4 and in line with the conditions stipulated in the Grant Agreement.

For further information on the implementation of Structural Funds in Malta, potential Applicants may wish to consult the Manual of Procedures which may be downloaded from www.eufunds.gov.mt.

2 Public entities eligible to apply under this call are Government Ministries, Government Departments and other

Public Entities, subject to the approval of their respective Permanent Secretaries. Local Councils are not eligible to apply under this call. 3 All of the electronic copies should include all relevant annexes and supporting documentation.

4Including any amendments that may be proposed by the Project Selection Committee/ Managing Authority in the

course of evaluation.





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List of Acronyms

CBA Cost-Benefit Analysis

CF Cohesion Fund

CSG Community Strategic Guidelines

DIER Department of Industrial and Employment Relations

DoC Department of Contracts

DOI Department of Information

EC European Commission

EE Energy Efficiency

EIA Environmental Impact Assessment

EIB European Investment Bank

EU European Union

FIT Feed-In Tariff

MA Managing Authority

MCCA Malta Competition and Consumer Affairs Authority

MEPA Malta Environment and Planning Authority

MFEI Ministry of Finance, the Economy & Investment

MRA Malta Resources Authority

MS Member State

NGOs Non Government Organisations

NRP National Reform Programme

NUTS Nomenclature of Units for Territorial Statistics

OPI Operational Programme I

OPII Operational Programme II

OPM Office of Prime Minister

PAHRO Public Administration HR Office

PPCD Planning and Priorities Co-ordination Division

PSC Project Selection Committee

RES Renewable Energy Sources

SAMB State Aid Monitoring Board

SEA Strategic Environment Assessment

SFD07-13 Structural Funds Database 2007-2013

TEN – E Trans European Network – Energy

TEN – T Trans European Network – Transport

VAT Value Added Tax

VOs Voluntary Organisations



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Chapter 1 – Submission of Eligible Applications

1.1 General Test of Eligibility

1.1.1 Eligible Applicants

Below is an elaboration of the type of applicants that are eligible to apply in this Call.

Public Sector Organisations including Government Ministries, Departments and other Public Entities are eligible to apply subject to the approval of their respective Permanent Secretaries. It should be noted that local councils, social partners, voluntary organisations (VOs), private individuals and undertakings (as per definition in Chapter 386, Article 2(1)

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well as organisations having links and/or an economic/commercial nature, are NOT the target groups of this call for proposals.

Applicants are reminded of the durability clause enshrined in Council Regulation (EC) 1083/2006 which states that an operation retains the contribution of the funds only if that operation does not, within five years from the completion of the operation undergo a substantial modification. Upon submitting a signed proposal, Applicants shall bind themselves to abide with this clause. Applicants should note that they should finance from their own funds any part of the investment that is damaged, stolen, becomes obsolete, etc.

1.1.2 Eligible Activities

Eligible activities

6 should fit within the list of eligible actions under the Focus Areas of

intervention under the Priority Axis open under this call and must be in line with Article 3 and 4 of Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999. Guidance on eligible actions for this call is found in Annex II to these Guidance Notes and these actions should also fit within the national eligibility rules which may be found on www.eufunds.gov.mt. The Applicant must be the owner of the holding (asset) where the activity will be undertaken and / or hold legal title for a period of not less than five years after project completion.

In accordance with Section 2 of these Guidance Notes, Applicants should confirm their position with respect to State Aid issues with the State Aid Monitoring Board. Applicants should note that project proposals involving State Aid WILL NOT be considered as eligible under this call. The involvement of State Aid is not necessarily tied to the Applicant, but to the nature of the activity.

5 Companies Act Chapter 386 Article 2(1): “undertaking” means a body corporate which carries on trade

or business. 6 Refer to Annex II of the Guidance Notes – Indicative eligible actions




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1.2 Project Eligibility and Selection Criteria

Projects received will be evaluated and ranked by a Project Selection Committee according to a set of eligibility and selection criteria (refer to Sections 1.2.1 and 1.2.2 and Annex I). These criteria have been approved by the Monitoring Committee in line with Article 65 of Regulation (EC) 1083/2006. To be considered for funding or to be placed on the reserve list, a project must pass all the Eligibility Criteria mentioned under Section 1.2.1 and must also obtain a minimum of 50% of the total marks allocated to the Selection Criteria mentioned in Section 1.2.2. The marks allocated to each selection criterion are provided in Annex I.

1.2.1 Eligibility Criteria

Eligibility criteria are a form of gateway assessment which ensures that all applications have reached a minimum standard. Projects which do not comply with the gateway eligibility criteria will not proceed to full appraisal and scoring. The project must fulfil the following criteria to be eligible for further assessment:

a) Complete application form: The Applicant must present a complete application form,

filled in with all relevant details and documentation, including complete annexes

(where applicable). Outline applications or incomplete applications shall not be

considered. All maps, diagrams and drawings should be of good quality and provide

clear information that can be readily understood by those who are not familiar with the

project. For a project where physical works are involved, an outline drawing or

plan of these works, clearly identifying the area for which funds are being

sought through Cohesion Policy support, should be enclosed. Any earlier or

future phases should also be highlighted to demonstrate integration;

b) Fits in with one or more of the focus areas of intervention: The project must fall

within the scope of the relevant focus area of intervention that is open for project

proposals. A list of the eligible actions is found in Annex II to these Guidance Notes;

c) Contribute towards objectives: The project must contribute towards at least, one of

the objectives of the Priority Axis under which it is being submitted;

d) Contribute towards indicators: The project must have clearly identifiable and

measurable targets that comply with at least one of the indicators set in the relevant

Priority Axis/ (output, result and/or impact). The Applicant must also provide a clear

explanation of how the proposed targets presented in the application form for ‘outputs,’

‘results’ and ‘impacts’ have been calculated and how they will be reached. For

example, if the project foresees the creation of a certain number of jobs, the Applicant

must identify where and how these jobs are expected to be created. The appropriate

level of detail must be provided;

e) Project remit within the mandate of the Beneficiary: Applicants must be publicly

mandated to carry out the task of the project. The project’s remit must fall within the

mandate of the Applicant. For example, in Malta, the upgrading of TEN-T road

infrastructure lies within the remit of the Roads and Infrastructure Directorate, within

Transport Malta. Consequently, any other agency applying for funds to upgrade a

TEN-T road will not be considered as an eligible Applicant, unless, the agency

provides a clear justification as to why they will be intervening in this context and

obtain the endorsement of this justification by the agency with the mandate, in this

case, Transport Malta;

f) Project leader from Beneficiary Organisation: The project leader carries the overall

financial and legal responsibility for the implementation of the project and hence,

his/her direct association with the Beneficiary organisation is fundamental, especially

with a view to ensure that the grant will be exclusively used for the purpose stipulated

in the project proposal;



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g) Proof of Co-financing (where applicable); In cases where Government is not co-

financing the project from the national budget, with the application form, Applicants

must produce:

1. A set of signed audited accounts of the last two financial years;

2. A joint declaration by the Executive/Head and Treasury/Financial Controller of the

organisation, stating that the organisation commits to co-financing obligations and

to finance any ineligible costs; and

3. Where it is clear that the audited accounts do not provide evidence of availability

of sufficient liquidity (cash or cash equivalent) to cover the co-financing and

ineligible costs, other sources of assurances, such as a bank guarantee7 should

be presented.

It is important to note that co-financing in kind is NOT eligible; and

h) Project implemented within/ for the direct benefit of the eligible territory: The

eligible territory for the Operational Programme is the whole territory of the Republic of

Malta. In cases of publicity /branding /marketing, actions may be aired or distributed

outside the territory, if the benefit is clearly for the territory.

Once the projects have passed the eligibility test, they will proceed with a project scoring system based on a number of selection criteria.

1.2.2 Project Selection Criteria

The selection stage is based on the amount of marks gained by the project on the basis of the criteria below. A minimum of 50% of the marks must be obtained for the project to be eligible for co-funding. If there are more projects then funds available attaining 50% of the marks, a ranking will be established which includes approved projects as well as projects on the reserve list.

a) Justified need to implement the Project: Under Section 5.6 of the Application Form,

the Applicant should provide a detailed justification of why the project is required; the

likely demand (perhaps the market failures that have brought about the specific local

problems that the project is intended to address) or the opportunity of which the

project will take advantage; why it is necessary; as well as, how the project will tackle

these problems. In the latter context, factual and statistical evidence to back up the

justification will render the application more robust. Details of any market research or

other preliminary work evidencing the need should be provided.

b) National Priorities: National priorities should be anchored in relevant Government

strategic documents (such as Budget and Pre-Budget Documents) or sectoral

strategies (e.g. Eco-Gozo Proposed action plan 2010-2012, The National Energy

Policy for the Maltese Islands). Projects will be scored in terms of their contribution to

national priorities and relevant policies by showing how the planned work fits in with

these strategies/programmes. The project proposal must identify the name of the

strategy, as well as, the relative extract of the strategy that relates to the project being

proposed.

c) Further contribution towards indicators: Marks will be awarded if the project can

demonstrate a clear contribution to the indicators (output/result/impacts) beyond the

minimum requirement. The Applicant must also provide a clear explanation of how the

targets for ‘outputs,’ ‘results’ and ‘impacts’ have been calculated and the method of

measurement that will be used. Additional 1-5 marks will be awarded if the project

7 All guarantees (including bank guarantees) should be clear and unequivocal that the co-financing will be provided

should the project be selected.



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proposals can demonstrate that they will contribute to the job creation indicator.

d) Project Sustainability: Projects need to demonstrate their sustainability after

completion. The project proponent must show how the benefits of the project will

continue to be delivered after grant support comes to an end. The Applicant should

ensure that the longer-term economic sustainability of the project is taken into account

and appropriate measures to make this a reality are put in place. An estimate of the

recurrent / operational costs should be included together with the proposed source of

funding post-completion. As part of the application process, this may be demonstrated

by the development of a financial feasibility study. In this regard, an idea of the annual

(operational) costs (covering at least 5 years following completion of the project)

involved in sustaining the termination of the grant should be provided. In case of

revenue generating projects, reference should also be made to Section 10.2 of these

guidance notes;

e) Readiness: Marks will be awarded for projects that are in an advanced state of

readiness, e.g. where Applicants have already prepared the tender dossier or

launched the tender or are in possession of the relevant environmental / planning

permits. In cases where cost benefit analysis is required, marks will be given if this has

been finalised or is in an advanced stage of drafting at the time of submission.

Evidence of readiness such as the provision of a planning permit reference number

should be provided.

f) Capacity of the Organisation: Capacity to implement the project is part of the

commitment of the Applicant towards the project. Projects cannot depend on external

expertise or contracted managers. Capacity is assessed both in terms of adequate

human resources, as well as, previous experience in the implementation of projects

co-financed through structural funds or other EU programmes. Organisations that

have had previous (positive) experience in the implementation of Cohesion Policy-

funded projects will be given additional marks. Consideration may also be given to

applications demonstrating previous experience in own-funded projects of similar size

and nature.

Organisations must present an organigram of the persons that will be involved in the

implementation of the project, especially in the day-to-day management and also state

what the different persons will be doing with regard to the implementation of the

project.

The Applicant must show how the project will be organised including full details of the

persons involved in the day-to-day management of the project, as well as the financial

management of the project especially since the systems used must show how the

grant will be used. Beneficiaries are also obliged to keep records which will be subject

to checks by horizontal stakeholders such as the Managing Authority and the

Certifying Authority, as well as, audits carried out by national audit institutions, as well

as, the European Commission and other European institutions.

g) Quality of the Application Form: Marks will be awarded for exceptional quality, e.g.

where market research was carried out to prepare a budget breakdown or where

quantitative data is provided. It should be noted that hastily prepared applications are

likely to be referred back or will fail to gain a positive recommendation during the

appraisal process. Contact details of experts are given for certain sections of the

application form. It is the responsibility of the Applicant to seek advice from the

experts (those identified or others of the Applicant’s choice) to ensure the full

comprehension of certain concepts, terminology and processes. Applicants are

advised to consult these guidance notes when filling the application.

h) Horizontal Priorities: Marks will be awarded to Applicants who make an effort to

integrate effectively the horizontal priorities into the project. Equal opportunities and

sustainable development are identified in Council Regulation 1083/2006 as horizontal



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themes that should be incorporated into Cohesion Policy Programmes. Low or no

points will be awarded for run of the mill statements.

Sustainable development as a horizontal theme is incorporated into Cohesion Policy

Programmes. All projects will consequently have to demonstrate how the three

dimensions of sustainable development – economic growth, social cohesion and the

protection of the environment – will be taken into account throughout the life of the

supported activity. The economic and social impacts of the projects are easily

identified in various sections of the project proposal and through other cross-cutting

themes, hence, the need to assess environmental sustainability, separately.

Applicants would be required to demonstrate that they have considered environmental

issues at all stages of the design of the project, where possible. The Applicant must

demonstrate how the project has been structured to ensure that environmental issues

will be mainstreamed throughout the project’s aims and operation. The project

proponent must think of environmental sustainability on different platforms:

i. Can compliance with relevant European and National environmental legislation and regulation be demonstrated?

ii. Describe the project’s environmental impacts (useful questions):

- Does the project increase resource efficiency and so limit/reduce adverse environmental impacts (reuse of buildings or previously developed sites and selection of material that takes account of environmental costs such as transport, extraction, processing and disposal)?

- Does it increase environmental awareness among citizens, businesses and tourists?

- Does it minimise environmental impacts in design, construction and operation of business, tourism or community infrastructure/buildings (in terms of landscape, visual impact, biodiversity, historic environment/archaeology, transport and access)?

- Does it demonstrate environmental good practice in project operation as well as delivery (green public procurement)?

- Does it protect and enhance the area’s environmental assets?

Projects must also contribute to the attainment of the horizontal priority/cross-cutting theme of Equal Opportunity.

Equal Opportunity has been identified as a horizontal theme of the Programme. The Beneficiary should give details of how this horizontal theme has been taken into account in the development of the project and what impact the project will have on the horizontal theme. E.g. What consultations have been carried out with equality groups in developing the project proposal? The beneficiary must show how this policy is being translated into action.

This refers to the theme of equal opportunities in its broadest sense to include also race and disability exclusion, etc. All projects will have to demonstrate how equal opportunities will be taken into account and/or mainstreamed throughout the life of the supported activity, through for example, ensuring accessibility to persons with disabilities or encouraging people from under-represented groups to participate in business start-ups.

Section 9 of these Guidance Notes provides details of contact persons (technical experts) that can be consulted by the Applicant in order to get ideas as to how best to achieve the integration of horizontal priorities into the project.

i) Carbon Impact – Government has set itself an ambitious target and it is important that Applicants reflect well on the issue of climate change (energy and resource efficiency) when designing projects. Project leaders must ask themselves whether the project addresses climate-change implications (for example through ensuring high insulation or high ventilation and cooling and conservation such as dual flush toilets and spray taps and use of renewable technologies for heat or power). Projects should



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aim to promote the achievement of a low to neutral Carbon impact and possibly go beyond this (to achieve a negative Carbon status) during, as well as after, project implementation. The contribution to the Carbon indicator is regarded over and above the effort made in contributing to other related indicators.

1.3 The Application Process

All applications must be made on the ERDF Application Form which can be

downloaded from www.eufunds.gov.mt.

The fragmentation of projects should be avoided at all times. If a number of projects, having the same objective are implemented by one organisation, then, these should be grouped into one project proposal even if the interventions will take place in different localities within the Maltese Islands.

All applications must be completed in full, signed, stamped and dated by the Project

Leader and endorsed by the executive / head of the organization. In the case of Public Sector organisations, all projects must be endorsed by the Permanent Secretary.

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Applicants should submit seven electronic copies on CD in Word and PDF format of

the Application Form. All copies must include all supporting documentation attached to the original Application Form.

A checklist of attachments is attached to the Application Form. For the application to

be considered complete and eligible, all attachments marked obligatory must be submitted with the Application Form.

The deadline for all submissions is noon (12.00hrs), Friday 4

th July 2014.

Applications received after this deadline WILL NOT BE CONSIDERED. Applicants are encouraged not to leave to the last day to submit their application.

All applications are to be delivered BY HAND to the MA at the following address:

Planning and Priorities Co-ordination Division Triq il-Kukkanja Santa Venera, SVR1411 Applicants should note that the PSC will NOT consider any project proposals that have been approved in a prior call and have been de-committed by the MA, whatever the reason would have been.

1.4 Selection process

The Project Selection Process relating to this Call for Project Proposals under the European Regional Development Fund (ERDF) 2007-2013 is expected to be concluded by September 2014

9. The Managing Authority will seek to inform all Applicants of the outcome of the

selection process by this date.

8 The Line Ministry is responsible to check and confirm eligibility of projects with the OP prior to submission of the

application/s. 9 Subject to the presentation of the Financial Assessment/Financial Feasibility/Cost Benefit Analysis with the Project

Application.




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1.5 Basic Terms and Conditions

If a project application is successful, EU Funds will be offered on rigorous terms and

conditions which will be stipulated in the Grant Agreement. In accepting the offer of EU Funds, the Applicant will take on responsibility for compliance with these terms and conditions. These include requirements to demonstrate satisfactory progress in delivering what the project has set out to achieve and adherence to an agreed pattern and time schedule of spending. Failure to meet these conditions and any false information given in the application may lead to the EU Funds being withdrawn and any EU Funds paid being recovered from the Applicant.

The Applicant is bound to prepare and update accordingly throughout the lifetime of the

project a Financial Assessment, Financial Feasibility or Cost Benefit Analysis prepared in accordance with Section 10.2.2 and 15 of these Guidance Notes. Applicants should be guided by the following table:

N.B. Applicants should note that the Financial Feasibility Study/ full Cost-Benefit Analysis should be prepared by independent consultants / service providers and the authors should be clearly identified on the front page of the study.

All projects are subject to audits and evaluations by both local and EC auditors and

programme evaluators. Officials from the MA and other horizontal stakeholders will also have rights of access to the project, all relevant documentation and the organisation implementing the project (known as the Beneficiary) and will carry out ‘Article 13 checks’ (physical and documentary) to establish that sufficient progress is being made in line with the EU Funds grant and that the Beneficiary has put in place systems of management and control that ensure the efficient implementation of the project in line with the relevant Rules and Regulations.

Structural Funds are public funds. If the project is selected for funding, the Applicant will be bound by the principles of good governance, sound financial management and the relevant national regulations pertaining to public funds. The Applicant will also ensure transparency and follow the principles of open competition while following the spirit of the Public Contracts Regulations. The same principles apply for all types of contracts (be it works; services; employment etc.) The Manual of Procedures

12 establishes guidelines

that are to be followed by all successful Applicants. By submitting the Application, the Organization is giving its automatic consent to

publishing (including on the internet) the details of the Organization and the project

10

Total Project Cost is the summation of Total Eligible Costs, VAT, Other Costs and any ineligible costs. 11

Refer to Section 15 with respect to Project Sustainability. 12

The Manual of Procedures 2007-2013 for Project Implementation can be downloaded from: eufunds.gov.mt

Total Project Cost10

Revenue Generating? Study required

€0 - €1,000,000

No None11

Yes Financial Assessment

€1,000,001 - €5,000,000 No Financial Feasibility Study

Yes

More than €5,000,001 No Full Cost Benefit Analysis

Yes

http://eufunds.gov.mt/en/Operational%20Programmes/Useful%20Links%20and%20Downloads/Pages/Useful-Links-and-Downloads.aspx



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(including budget and progress) in line with the obligations in the relevant Council and Commission Regulations and also in the Manual of Procedures.

The applicant organization should also be aware of the durability clause enshrined in

Council Regulation (EC) 1083/2006 which states that an operation retains the contribution of the funds only if that operation does not, within five years from the completion of the operation, undergo a substantial modification. Hence, if equipment is damaged, stolen or becomes obsolete during these five years, it must be replaced through the funds of the organization implementing the project. In this regard, Applicants are requested to confirm the adherence to this clause by signing the declaration in Section 19 of the application form.

The applicant organization should note that if the project is accepted, the Applicant will be

automatically giving his/her consent to have all the documents13

and data related to the project, (including invoices, receipts and documents related to contracts etc...) made available to all the relevant stakeholders including third party evaluators and auditors involved in the structural fund system (in line with the functions and responsibilities outlined in the Manual of Procedures for Structural Funds). The Managing Authority reminds the Applicant that it is the responsibility of the Applicant to inform any third parties that all data and information relating to the project will be shared with other stakeholders as per Section 16 of the Application Form.

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This refers to both the electronic and the paper copies of the document.



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Chapter 2 – Step by Step Guidelines to the Application Form

Project Title

Titles should be concise, descriptive of the project, unique and suitable to be continued as the permanent project name (not more than 10 words).

The Applicant This section provides basic details relating to the Applicant and the project itself including the addresses of the sites of the proposed interventions.

Non-Technical Short Summary of the Project/Project Phase

A short description of the proposed project should be included in the space provided. The description provided here will be included in the Structural Funds Database 2007-2013

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(SFD07-13) and shall be published on the PPCD website and used for other reports issued from time to time by the Managing Authority.

In this section, the Applicant has the opportunity to explain the highlights of the project proposal. The Applicant must always keep in mind that the persons evaluating and assessing the project might not be familiar with the technicalities of the project, its aims and the terminology used. This section will serve the assessor as a summary of the project and therefore the information should be self-explanatory. The rest of the application form contains specific sections for detailed information and therefore there is room for in-depth explanations.

Project Time Frame The project start date refers to the date when preparations on the project’s activities start or are envisaged to start (excluding drafting of the application form but including the date when a tender/call started being drafted). Prospective applicants are advised to observe the different procurement obligations, according to the type of entity applying under this call for proposals. The closing date refers to approximately two months following the last payment incurred through the grant. During these last two months, the Beneficiary would be expected to draw up the Closure Report.15

Budget The total eligible costs indicated under this section needs to reflect the cost of the total eligible activities (including VAT where this is being deemed to be eligible), and must be in line with Article 3 and 4 of Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5

th July 2006 on the European Regional Development Fund and repealing

Regulation (EC) No 1783/199 as well as the national eligibility rules (the National Eligibility Rules can be downloaded from the PPCD website: www.eufunds.gov.mt. Guidance on eligible actions for this call is found in Annex II of these Guidance Notes.

14

The Structural Funds Database 2007-2013 is a computerised system used for the maintenance of details about all projects financed by the structural funds, maintenance of financial control of allocated funds, automated drawing up of periodical reports and preparation of files to export data to the European Commission.

15

Further information with respect to the Closure Report may be found in Chapter 7 of the Manual of Procedures 2007-2013 for Project Implementation can be downloaded from: eufunds.gov.mt




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The ineligible costs are then to be identified separately. The ineligible cost indicated under this section needs to reflect any expenditure that will be incurred by the Applicant but that is not eligible for funding (e.g. ineligible VAT or expenditure outside the eligibility rules). The total project cost is the sum of eligible and ineligible costs. Finally, the Applicant is requested to indicate the total amount being requested as grant for the proposed project. This amount should include VAT (where this is an eligible costs) and any ESF related expenditure however it should exclude any ineligible costs.

Table of Contents The table of contents is linked to the headers of each sub-section. Once the Applicant has finished compiling the Application, click on the Table of Contents, right-click your mouse and select ‘Update Field’ and then choose ‘Update page numbers only’.



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Section 1 – Information on the Applicant

1.1 Organisation’s Details

This section should show the full name of the Applicant that will be the lead Applicant for the project. A project must have only ONE organization leading the project. Once the project is selected, this organization will be known as the Beneficiary. The Applicant must be eligible to apply for the European Regional Development Fund and must be aware of the responsibility this role implies throughout the auditable life of the project. The Applicant must be a public entity

16 with which the MA will sign a legally binding

agreement. The Applicant will be responsible for all matters associated with the European Regional Development Fund. These include project management and implementation, acceptance of EU Funds, launching tenders, contracting, processing of payments, reporting, monitoring, publicity, the retention of project documents and audits carried out on the project. The ownership of the Asset where the project intervention will be undertaken has to be of the Applicant. Relevant supporting documentation must be provided showing that the Applicant has title of ownership to the site or that the Applicant has exclusive use of the site for at least until 2020. The Project Leader is the person responsible for the implementation of the project and has the authority to take decisions during the course of implementation. The Project Leader must be from the Applicant organization since the Project Leader carries the overall financial and legal responsibility for the implementation of the project and hence, his/her direct association with the Beneficiary organization is fundamental, especially with a view to ensure that the grant will be used exclusively for the purpose stipulated in the project proposal. There shall be only ONE Project Leader responsible for the whole project, even if the project is composed of different components. In such cases, informal arrangements should be made to co-ordinate the different components. The Applicant organization should not nominate as Project Leader persons/officials who are already acting as Project Leaders in other approved projects. The Contact Person cannot be the same person as the Project Leader .The Contact Person must be a person with whom, in the absence of the Project Leader, the project can be discussed and to whom any queries can be referred. The contact person must also be from the Applicant’s organisation. It is extremely important to indicate as Contact Person someone who will be easily accessible and who will be well aware of all details concerning the project’s implementation. It is advisable to have a Contact Person to ensure smooth communication flows between the organisation and the relevant stakeholders. In both cases, email addresses provided should be the direct official email addresses of each of the two persons (generic official email addresses (e.g [email protected]) should be provided where applicable. Personal email addresses should be avoided.

1.2 Type of Organization

From the options provided please indicate the type of organization the Applicant falls under.

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Public entities eligible to apply under this call are Government Ministries, Government Departments and other

Public Entities, subject to the approval of their respective Permanent Secretaries. Local Councils are not eligible to

apply under this call.

mailto:[email protected]



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1.3 Legal Status

In this section please indicate the legal status of the Applicant. Below please find some related definitions:

Public Sector Organisations are Government Ministries, Departments and other Public Entities, subject to the approval of their respective Permanent Secretary. Local Councils are not eligible to apply under this Call. Public equivalent body - the term public equivalent body, according to the definition described in the EU legislation on Public Procurement (Council Directive 93/36/EEC of 14 June 1993 and Directive 2004/18/CE of the European Parliament and of the Council of 31 March 2004) is any legal body governed by public law. This means anybody:

a) established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character;

b) having legal personality; and c) financed, for the most part, by the State, local authorities, or other bodies

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

The Legal Act (e.g. the Deed of Foundation) constituting the Entity shall be attached.

1.4 VAT status of the activity carried out

1.4.1 Public Sector (including Ministries, Departments, Entities, Authorities) Please indicate whether the organization charges VAT on its sales or whether the sales are exempt with credit (zero-rated sales). If NO, VAT is an eligible cost to the project since the entity is not entitled for reimbursement by the VAT department. In order for VAT to be considered as an eligible cost, proof from the VAT department showing that VAT paid in the project cannot be recovered by the entity, needs to be submitted

17. If the organization charges

VAT on any of its sales, please provide a description of those sales on which VAT is charged. 1.4.2 The Applicant is also asked to indicate whether the project is directly related to the sales on which VAT is charged or to the sales which are exempt with credit. If YES, the VAT cannot be considered as an eligible cost to the project. If NO, the VAT can be considered as an eligible cost to the project. If the project is partially related to the sales on which VAT is charged, VAT cannot be considered as an eligible cost to the project.

1.5 Involvement of any Other Local Organisation

Please indicate whether the project entails the involvement of another local organisation. If this is the case, the name of the organisation, the contact details, legal status and their role within the project should be provided. Please also provide a description of the identified partners’ role in the project. If other partners are involved please include the information requested above for each partner.

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Proof from the VAT Department showing whether the project is eligible to recover VAT from the VAT department or whether it can be considered as an eligible cost in terms of the project needs to be submitted to the Managing Authority after the successful completion of the Project Selection Process.



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Applicants should also indicate whether the partner/s will be receiving any ERDF funds. If this is the case, the exact amount and a brief description of the activities to be carried out by the partner/s should be provided. In the box provided in the Application Form, the Applicant should indicate the exact amount being financed by the partner/s, the activities which are being co-financed and the source of co-financing (e.g. own funds, bank loan, guarantees, etc.). Partners should sign a letter of intent as a proof of commitment to the project. This letter should be annexed to the application form. If the Partner is providing any co-financing, it is important to submit the relevant documents as specified under point 1.2.1. (g) in Chapter 1 of these Guidance Notes.

1.6 Institutional Framework

Cleary describe the institutional framework within which the project will have to operate and how the project will fit within this framework. The management of Structural Funds is taxing on any organisation. The Applicant must provide proof that it has the necessary in-house resources and expertise to manage the project, provide leadership and exercise control over any third party contractors that may be involved in the project. The Beneficiary (organisation implementing the project) remains responsible for all aspects relating to the project (even for third party errors) during the auditable lifetime of the project. Besides the experience that an organization has in the implementation of EU funded Projects, capacity of the organization is also assessed in terms of adequate qualitative and quantitative human resources and in-house expertise. Applicants should provide a clear description indicating who is responsible for what (e.g. procurement, payments, financial control, etc) and indicate which units will be involved in the different stages of project management and implementation and how these will be coordinated and managed by the Project Leader. In other words, it is important to identify the persons that will be involved in the day-to-day management of the project and also state what the different persons will be doing with regard to the project’s implementation. Applicants should note that in cases where it is intended to make use of external project management, this section must also describe what control measures the Applicant intends to put in place to check the work (given that responsibility remains with the Beneficiary). Furthermore details on the procedure to be adopted for the recruitment of a project manager/administrator or any other person, who will be working on the project, should also be provided. Please attach the Applicant’s organisation chart, highlighting which are the units/sectors that will be involved in the implementation of the project and the interaction between each unit/ sector and the Project Leader.

1.7 Experience in EU Funded Projects and other projects

The Applicant should indicate whether the Beneficiary organisation has already been involved in or awarded an EU funded project. If in the affirmative, the Applicant is to provide all relevant details, such as the name of the Programme, name of the Fund, name of the project, the budget allocated to the project, details of the awarding body as well as the current project status. In order to assess the capacity of the organisation to manage projects, the Project Selection Committee may consider the experience of the organisation in handling own funded projects of similar magnitude, budget or nature.



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1.8 Coordinating Body/ Line Ministry

This is mainly relevant to public sector projects. The Director (Programme Implementation) within each Line Ministry

18 is entrusted with the role of co-ordinating body for all the

departments/ entities benefitting from Structural Funds falling under the Ministry’s remit. The coordinating body will be responsible to liaise between the Applicant and the MA and other horizontal stakeholders throughout the implementation of the project.

18

Some exceptions in particular Ministries.



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Section 2 - State Aid

EU State Aid rules apply to ERDF projects which involve any direct (or indirect) financial support from the public sector to commercial enterprises or organisations carrying out an economic activity, or if in some way the assistance involved distorts trade or threatens competition within the Community. Applicants should note that State Aid is determined by the nature of the project and not necessarily by the nature / status of the organisation. ALL Applicants of ERDF assisted projects must ensure compliance with State Aid rules. If the rules are breached (even after the project ends), any grant (even if already paid) may have to be recovered. In this regard, early discussions with the State Aid Monitoring Board (SAMB) and/or experts on State Aid of the Applicant’s choice are encouraged to clear State Aid position. Any evidence of correspondence between the Applicant and SAMB should be annexed to the application form. The Applicant should ideally include the SAMB position with the application. In any case the Applicant must submit the State Aid position within one month of the closing date of this Call. If the Applicant has unilaterally decided that the project does not involve State Aid, the Applicant has to provide justification for this. The contact person within SAMB is:

Dr Yana Haber State Aid Monitoring Board St Calcedonious Square Floriana Tel: 21252757 / 21223878 Email: [email protected]

Section 3 - Added Value

In this section, the Applicant should indicate the importance of the grant for the undertaking of the project; why the project cannot be undertaken with the Applicant’s own resources; and why the ERDF should co-finance the proposed project. In identifying the principle elements of Community added value, the project must address the following questions: a) How will the project produce direct economic benefits for the European Union in support

of greater cohesion and convergence of Malta in the internal market? (creation/safeguarding of jobs; improved environmental performance; accessibility gains; enterprise support and business start-ups; higher education levels/new skills development; research and information capabilities).

b) How will the intervention be made visible to the Maltese citizens thus promoting greater support for European integration?

c) How will the project contribute to better governance? (Strategic planning, concentration,

additionality, partnership, effectiveness of public administrations, multi-annual programming, simulation of development projects and exchange of information and experience).




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Section 4 - Operational Programme19

4.1 Priority Axis

A project application can only be submitted under a single Priority Axis. For the project to be eligible, the Priority Axis and Focus Area of Intervention must be open for project proposals at the time of submission. All projects submitted under this Call should address Priority Axis 2 – Promoting Sustainable Tourism, Focus Area – Product Development and/or Focus Area – Niche Market Development.

4.2 Operational Objectives

Applicants should tick at least one of the objectives that fall under the Priority Axis provided in the list and open under this call.

4.3 Focus Area of Intervention

Applicants should indicate under which Focus Area the project will fit. Projects may cover more than one focus area of intervention within the same Priority Axis assuming that the areas are open for project proposals at the time of submission.

The Focus Areas open under this call are: Focus Area: Product Development Focus Area: Niche Market Development

4.4 Links with Priority Axis, Operational Objective/s and Focus Area selected

The Applicant should give a brief description of how the project fits within the Priority Axis and the Focus Area selected. The Applicant must clearly state what the project intends to achieve and how this will contribute to achieving the objectives of the Priority Axis as set out in OP I. 4.4.1 Applicants should indicate whether the project is contributing to Gozo’s socio-economic development. If yes, the Applicant must explain how the Project Activities will contribute to Gozo’s socio-economic development and which actions will be taken in this respect. This information must be supported by statistical data and research on Gozo and Malta.

19

Operational Programme I is accessible on: eufunds.gov.mt.




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Section 5 – Project Details

5.1 Project Title

Titles should be concise, descriptive of the project, unique and suitable to be continued as the permanent project name (not more than 10 words).

5.2 Nomenclature of Units for Territorial Statistics (NUTS Code)

This section identifies the geographical territory where the proposed project is going to be situated. In the case of multiple interventions in both Malta and Gozo, these should be split by indicating the % of funds allocated to the different territories.

5.3 Project Intervention Code

Please select the relevant intervention codes that the project addresses. These codes are extracted from Commission Regulation (EC) No. 1828/2006.

5.3.1 Codes by Priority Theme

From the options provided hereunder please identify the Codes by Priority Theme that are most relevant for the project. The project proposed should at least address one of these intervention codes. The code by priority theme chosen should reflect project expenditure. If a project is relevant to more than one intervention code, please rank them in order of priority and provide a percentage allocation of the project cost towards each intervention code selected.

Categorisation of Intervention by Priority Theme

Code

Priority Theme

Research and Technological

Development (RTD), innovation and

Entrepreneurship

1 RTD activities in research centres

2

RTD infrastructure (incl. physical plant, instrumentation and high speed computer networks linking research centres) and centres for competence in a specific technology

3

Technology transfer and improvement of cooperation networks between small businesses (SMEs), between these and other businesses and universities, post-secondary education establishments of all kinds, regional authorities, research centres and scientific and technological poles (scientific and technological parks, technopoles, etc.)

4 Assistance to RTD, particularly in SMEs (incl. access to RTD services in research centres)

5 Advanced support services for firms and groups of firms

6

Assistance to SMEs for the promotion of environmentally-friendly products and production processes (introduction of effective environment managing system, adoption and use of pollution prevention technologies, integration of clean technologies into firm production)

7

Investment in firms directly linked to research and innovation (innovative technologies, establishment of new firms by universities, existing R&TD centres and firms, etc.)

8 Other investments in firms

9 Other measures to stimulate R&I and entrepreneurship in SMEs

Information Society 13 Services and applications for the citizen (e-health, e-government, e-learning, e-inclusion, etc.)

15 Other measures for improving access to and efficient use of ICT by SMEs

Transport

21 Motorways (TEN-T)

22 National Roads

23 Regional/local roads



19

24 Cycle Tracks

26 Multimodal transport

28 Intelligent transport systems

30 Ports (TEN-T)

Energy

39 Renewable energy: wind

40 Renewable energy: solar

43 Energy efficiency, co-generation, energy management

Environmental Protection and Risk

Prevention

44 Management of household and industrial waste

45 Management and distribution of water (drinking water)

46 Water Treatment (waste water)

50 Rehabilitation of industrial sites and contaminated land

53 Risk prevention (including the drafting and implementation of plans and measures to prevent and manage natural and technological risks)

54 Other measures to preserve the environment and prevent risks

Tourism

55 Promotion of natural assets

56 Protection and development of natural heritage

57 Other assistance to improve tourist services

Culture

58 Protection and preservation of cultural heritage

59 Development of cultural infrastructure

60 Other assistance to improve cultural services

Urban and Rural Regeneration 61 Integrated projects for urban and rural regeneration

Investment in Social Infrastructure

75 Education infrastructure

76 Health infrastructure

77 Childcare infrastructure

78 Housing infrastructure

79 Other social infrastructure

Strengthening Institutional Capacity at National, Regional and

Local Level 81

Mechanisms for improving good policy and programme design, monitoring and evaluation at national, regional and local level, capacity-building in the delivery of policies and programmes

Technical Assistance 85 Preparation, implementation, monitoring and inspection

86 Evaluation and studies; information and communication

5.3.2 Code by Economic Activity

From the options provided below, please select the relevant intervention codes that the project addresses. Please also provide a percentage allocation of the project cost towards each economic activity selected. Codes for the Economic Activity Dimension

Code

Economic Activity

03 Manufacture of food products and beverages

04 Manufacture of textiles and textile products

05 Manufacture of transport equipment

06 Unspecified manufacturing industries

08 Electricity, gas, steam and hot water supply

09 Collection, purification and distribution of water

10 Post and telecommunications

11 Transport

12 Construction

13 Wholesale and retail trade

14 Hotels and restaurants

15 Financial intermediation



20

16 Real estate, renting and business activities

17 Public administration

18 Education

19 Human health activities

20 Social work, community, social and personal services

21 Activities linked to the environment

22 Other unspecified services

5.4 Technical Description of the Investment

This section must specify the address and the main characteristics and component elements of the investment. In the first table, the applicant is to provide the full addresses of the sites where the proposed interventions will take place. In case of multiple sites, please insert additional rows. In the space provided in the application, provide a description of the type of structure to be constructed and specify the footprint the building will cover; total floor area; energy efficient / renewable energy measures and any special provisions. If Bills of Quantities are available, these should be attached to the application (a summary version, detailing main components, would be ideal). Where equipment will be purchased, provide details of scope of equipment, including what the equipment will achieve; its durability / life span; its energy performance; annual maintenance/updating costs; as well as any costs required to train personnel in the use of the equipment. Where Bills of Quantities are available, these could be attached to the application. No quotations should be attached. In cases where such market research has been undertaken – a summary of the market research undertaken and the indicative costs can be attached as annex. 5.4.1 – Project phases Provide description of the proposed phases of implementation, explaining whether these phases are technically and financially independent, and where possible, provide a Gantt chart.

5.5 Project Objectives

This section should define the project objectives and why this project is important in terms of the long-term benefits to target groups and the wider benefits to society at large. A project objective also helps to show how the project fits into Government’s sectoral policies, the policy of the organisation concerned as well as EU policies. In general, the project’s objective should be explained briefly. This section should not delve into the activities of the project but should only indicate what is aimed to be achieved overall.

5.6 Background and Justification

This section is very important as it provides the basis for allocating public funds to the project. This section is split into 6 sub-sections, namely:



21

1. Problem Identification: this section should include a description of the problem currently being faced in the particular area;

2. Demand Analysis: This section should present an analysis of current demand for a

particular good/service to determine the reasons of its success or failure, and how its performance can be improved in the future to address the problem identified in the previous section (perhaps the market failures that have brought about the specific local problems that the project is intended to address). In addition, Applicants may opt to forecast expected demand in subsequent years to further consolidate the basis of the demand analysis;

3. Gap Analysis: Under this section, please identify and describe the current gap which

needs to be addressed in order to fulfil the expected demand; 4. Options Analysis: identify a number of options which could contribute towards

addressing the identified gap;

5. Baseline (Research and Quantitative Assessment): provision of data including information collected through surveys. The data presented should provide baselines for the subsequent section – Results. Any supporting documentation or research to justify the undertaking of this project should be mentioned and summarised under this section. Applicants are reminded that supporting documentation is to be attached to support not replace the details to be inserted in the application form. These could include factual and statistical evidence, market research or other information (e.g. CBA or feasibility studies) to back up the

justification that would render the justification for the project more robust; 6. Selection of Option: the Applicant should outline the selected option based on the

above findings

5.7 Results

Results are NEITHER outputs NOR indicators. Results are the concrete (tangible) products of the activities undertaken in order to achieve the project purpose. Results selected should answer the question ‘what will be achieved by the end of the project?’ Results should address the main causes of the problems and challenges faced by the target group. They should be quantified (with baselines provided in Section 5.6) and identified in terms of tangible products. Examples of results valid for an energy project could be the following: - Installation of energy monitors capturing amount of CO2 saved and RES electricity generated; achievement of carbon neutral building, etc.

IMPORTANT: Lack of properly developed and quantified results may penalise or even disqualify the application

Results are binding on the Beneficiary organisation. If results are not met by the Beneficiary organisation at the completion of the project, there may be the case of recovery or partial recovery of the funds.

5.8 Activities

This section should include a list and detailed description of the activities to be carried out and the means to achieve them. Activities/Work packages are a collection of actions that have to be taken / provided in order to produce the overall results. Activities describe how the



22

project’s goods and services are to be delivered and summarise what will be undertaken by the project. Activities should be clearly defined. The sequence and dependence of activities should be identified. One should limit oneself to mentioning the project activities (e.g. purchase of equipment) and not administrative procedures (such as obtaining quotations, issue tender, etc) that will be undertaken during the course of project implementation. Any activities carried out in Gozo are to be listed under the relevant sub-heading as to help the Managing Authority to identify the contribution of the project towards Gozo. IMPORTANT: The fragmentation of projects should be avoided at all times. If a number of projects, having the same objective are implemented by the same organisation, then, these should be grouped into one cohesive project proposal, even if the interventions will take place in different localities within the Maltese Islands. It is important that the project proposal is cohesive and not fragmented into distinctive and separate bits. The project should also have one project leader. In case of activities that involve infrastructural works, the Applicant must be the owner and/or hold legal title of the land/property/asset where the works are to be undertaken.

5.9 Project Time Frame

The project start date refers to the date when preparations on the project’s activities start or are envisaged to start (excluding drafting of the application form but including the date when a tender/call started being drafted). Prospective applicants are advised to observe the different procurement obligations, according to the type of entity applying under this call for proposals. Should the first tender be subject to the approval of a MEPA permit, the start date of the proposal should take into account the time needed for the MEPA permit to be issued.

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Project duration should factor in the time spent in the preparation and launching of tenders/calls. In this regard, advice regarding average duration of public tenders can be obtained from EU unit within the Department of Contracts. The closing date refers to approximately two months following the last payment incurred through the grant. During these last two months, the Beneficiary would be expected to draw up the Closure Report.

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Please note that the Applicant is binding itself to conclude the project by this date. Moreover, this section should tally with the information provided in Table 11.4. All projects should aim to conclude by third quarter of 2015.

5.10 Target groups

The Applicant should give information regarding the target group that the project aims to help.

The Applicant should aim to prioritise the list in accordance with the main objective (e.g. the implementation of a RES should have the immediate community benefitting from the project as its main target group, followed by the community at large and ultimately the general public).

20

When establishing the date of submission of tender, please refer to Contracts Circular Nº 18/2008 ‘Contracting

procedures’ (02/06/2008) and any other subsequent circulars. 21

Further information with respect to the Closure Report may be found in Chapter 7 of the Manual of Procedures

2007-2013 for Project Implementation can be downloaded from: eufunds.gov.mt




23

5.11 Other Related Activities

In this Section, the Applicant should identify and summarise any measures (other than those being proposed for ERDF co-financing) which have been implemented or are planned to be undertaken by the organisation in the near future. Please also identify which funds have been utilized for related activities.

Section 6 – Performance Indicators22

6.1 Output and Result Indicators

Please identify the output and result indicators towards which the project will contribute. The indicators provided are extracted from Priority Axis 2 of the Operational Programme. If more than one (relevant) indicator can be chosen, the project will be awarded more marks. The project must have clearly identifiable and measurable targets that comply with at least one of the indicators set in the Programme under the Priority Axis 2, or one of the impact indicators. Projects that do not meet the minimum criteria of indicators will not be considered eligible for funding. Each output and result indicator should be realistically quantified, and allocated against the areas where it will be targeted (i.e., Malta Gozo, or both). The Beneficiary must also provide a clear explanation of how the proposed targets for ‘outputs’ and ‘results’ (in the application form) have been calculated. If the project is approved, failure to deliver the agreed indicators could result in EU Funds being withdrawn and/or repaid by the Beneficiary.

6.2 Verification of Output/Result Indicators

Please provide an explanation on how the data for the indicators will be collected / monitored and how it will be verified. Please also include whether this or similar data is already available (indicating whether it is available for free or at a cost including the amount). If data is unavailable, please indicate how the Applicant intends to generate the required data and how this will be financed.

6.3 Impact Indicators

The project should contribute towards the impact indicators of the Programme. These are listed in the Operational Programme and are reproduced in the Application Form for ease of reference.

6.4 Verification of Impact Indicators

Please provide an explanation on how the data for the indicators will be collected / monitored and how it will be verified. Please also include whether this or similar data is already available (indicating whether it is available for free or at a cost including the amount). If data is

22

This section is based on the revised version of the Operational Programme I which is accessible on: eufunds.gov.mt



24

unavailable, please indicate how the Applicant intends to generate the required data and how this will be financed.

All indicators are binding and contribute towards the eligibility and selection of the project. If they are not met, there may be a case for full or partial recovery of the funds allocated.

6.5 Other Indicators

In this section the applicant should indicate additional indicators the project may target, which fall under the other priority axes not open under this call. Each additional output and result indicator selected should be realistically quantified. The Beneficiary must also provide a clear explanation of how the proposed targets for ‘outputs’ and ‘results’ (in the application form) have been calculated.

6.6 Other targets

In the space provided, please indicate any additional targets to the ones mentioned in the list of indicators provided in the Operational Programme that are envisaged to be achieved by this project. Such targets would be in addition to and are not deemed to replace the obligation for the projects to contribute to the targets set in the OP.



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Section 7 – National priorities

Structural funds co-finance projects of national interest. In this section the Applicant must identify how the Project is addressing national priorities for Malta & Gozo. National priorities are anchored in relevant Government strategic documents (such as the pre-Budget documents) or sectoral strategies (such as Eco-Gozo, Proposed National Renewable Energy Action Plan). The projects must identify their contribution to national priorities and relevant policies by showing how the planned work fits within these strategies/programmes. The project proposal must identify the name of the strategy, as well as, the relative extract of the strategy that relates to the project being proposed. When referring to a document, it is important that the Applicant provides direct citation (title, year, chapter and page numbers). The Applicant should also indicate the web address for the document being quoted.

Section 8 - Links with the Community Strategic Guidelines and the National Reform Programme23

8.1 Community Strategic Guidelines

The Community Strategic Guidelines (CSGs) state that “in meeting the objectives set out in the Treaty, and in particular that of fostering real convergence, the actions supported with the limited resources available to Cohesion Policy should be concentrated on promoting sustainable growth”.

24 Moreover, the CSGs require Member States to direct attention to

investments aimed at improving efficiency in public administrations. In this section please select from the below list the relevant Priority/ Priorities towards which the project will be contributing and indicate how the project will contribute towards the selected Priority/ Priorities. When referring to a document, it is important that the Applicant provides direct citation (title, year, chapter and page numbers). Resources should be targeted towards the following guidelines and priorities for action for Member States’ policies: GUIDELINE: Making Europe and its regions more attractive places to invest and work

Expand and improve transport infrastructures

To strengthen the synergies between environmental protection and growth

Address Europe’s intensive use of traditional energy sources GUIDELINE: Improving knowledge and innovation for growth

Increase and improve investment in RTD

Facilitate innovation and promote entrepreneurship

Promote the information society for all

Improve access to finance GUIDELINE: More and better jobs

Attract and retain more people in employment and modernise social protection systems

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These documents can be retrieved from the following links:

CSGs: http://ec.europa.eu/regional_policy/sources/docoffic/2007/osc/050706osc_en.pdf NRP:http://mfin.gov.mt/en/home/popular_topics/Documents/National%20Reform%20Programme/2013/National%20Reform%20Programme%202013.pdf 24

Communication from the Commission, Cohesion Policy in Support of Growth and Jobs: Community Strategic

Guidelines, 2007-2013, 5 July 2005.

http://ec.europa.eu/regional_policy/sources/docoffic/2007/osc/050706osc_en.pdf

http://mfin.gov.mt/en/home/popular_topics/Documents/National%20Reform%20Programme/2013/National%20Reform%20Programme%202013.pdf

http://mfin.gov.mt/en/home/popular_topics/Documents/National%20Reform%20Programme/2013/National%20Reform%20Programme%202013.pdf



26

Improve adaptability of workers and enterprises and the flexibility of the labour markets

Increase investment in human capital through better education and skills

Help maintain a healthy labour force

8.2 National Reform Programme

Every Member State is required to draw up a National Reform Programme (NRP), which describes how the Integrated Guidelines for growth and jobs are going to be designed and implemented at a national level. The current Programme [Malta’s National Reform Programme under the Europe 2020 Strategy (April 2013)

25 refers to growth bottlenecks which

are being addressed by a range of thematic measures in the areas of employment, R&D, energy, education, and poverty which will also contribute in attaining a structural improvement in the country’s economic potential and address the macroeconomic imbalances currently prevailing. In this section please indicate how the project will contribute towards the current NRP. When referring to a document, it is important that the Applicant provides direct citation (title, year, chapter and page numbers). Applicants can also make reference to the previous NRP document (NRP 2005 – 2008 and NRP 2008 – 2010) for those areas that have not been included in the NRP 2013 but which are still relevant today.

Section 9 - Horizontal priorities

9.1 Equal Opportunities

Applicants are required to demonstrate that they have considered equal opportunities at all stages of the design of the project. Steps should be taken to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during project implementation. In particular, accessibility to ERDF projects for disabled persons should be ensured. In this regard, Applicants must demonstrate how the project has been structured to ensure equal opportunities at all stages and how these will be mainstreamed throughout the project’s aims and operation. This should go further than just a statement of intent and be backed by a solid implementation plan and a system in place to monitor the results. Some questions that can be asked include:

1. How will the applicant ensure that the target group/groups have equal access to the project and equal opportunity to benefit from the project?

2. What will the project do to promote equal opportunities and social inclusion? 3. What actions have been taken to remove barriers to participation in the

project by under-represented or socially-excluded groups? 4. Does the project ensure that there are no physical constraints preventing

individuals accessing opportunities and that any buildings involved meet planning provisions relating to disabled access in the design of buildings?

5. Will equal opportunities be considered in the procedures (e.g. tendering)used throughout the implementation of the project? How?

25

http://ec.europa.eu/europe2020/pdf/nd/nrp2013_malta_en.pdf



27

No marks will be given for a statement of the obvious or for citing measures that are obligatory by law. In this regard, it is highly recommended that Applicants contact the National Commission for the Promotion of Equality (NCPE) and the National Commission for Persons with Disability (KNPD) for advice on Equal Opportunity Legislation in Malta and on how best to integrate equal opportunities in the project.

26 The contact persons for these entities are:

Ms Therese Spiteri National Commission for the Promotion of Equality

4, Gattard House, National Road, Blata l-Bajda, HMR 9010

Tel: 2590 385 Fax: 2590 3851 Email: [email protected]

Ms. Anne Marie Callus Executive Director - KNPD Bugeia Institute

Braille Street, Santa Venera, SVR 1619 Tel: 22788555 Fax: 22788490 Email: [email protected]

9.2 Sustainable Development27

9.2.1 Project Addressing Sustainable Development Applicants are required to demonstrate that they have considered sustainable development issues at all stages of the design of the project. Sustainable development covers economic growth, social cohesion and the protection of the environment, which will be taken into account throughout the life of the supported activity. The Applicants must demonstrate how the project has been structured to ensure that sustainable development issues will be mainstreamed throughout the project’s aims and operation. Specific reference should be made to the National Sustainable Development Strategy. No marks will be given for a statement of the obvious or for citing measures that are obligatory by law. To fill in this section the applicant may wish to contact MSDEC. The contact person is: Dr. Marguerite Camilleri Ministry for Sustainable Development, the Environment and Climate Change MSDEC Offices, 6, Triq Hal Qormi, Santa Venera Tel: 2292 6243 Email: [email protected]

26

Further information on equal opportunities can also be obtained from the website of the Kummissjoni Nazzjonali

Persuni b’Dizabilita’ - http://www.knpd.org/ 27

EU Sustainable Development Strategy 2001 (renewed and approved by Council in June 2006)






28

9.2.2 Project Impact on Carbon Neutrality Further to the explanation given in the previous section, information provided here should focus on how the project will address carbon neutrality. This is a very important element for projects funded from the ERDF. Being carbon neutral involves taking into consideration the total climate-damaging carbon emissions that will be created by the project, reducing them where possible, and then balancing the remaining emission through energy efficient measures. The aim is to promote energy that minimises the release of CO2 equivalent gases. This could be done, for instance, through the installation of solar cells, effective use of water, energy, raw materials, minimization and management of waste, production of green products and services, and other measures to ensure that infrastructural developments are in line with adaptation strategies and plans with regard to the possible effects of climate change. The project Applicant must answer questions such as: a) How will the project aim at reducing resource consumption (energy, water, raw materials,

etc)?

b) Does the project minimize CO2 production and encourage positive attitudes towards Renewable Energy Sources?

c) Does the project encourage more efficient use of energy (including product design;

manufacturing processes and transport) and incorporate behavioural changes in the latter regard?

d) Does the project promote lifestyle changes to cope with climate changes, such as

promoting water and energy efficiency?

e) How will you address the environmental impact of the whole life cycle of the project?

f) How will the project look at minimizing waste and promote re-use, recycling, composting, alternative treatment options, and energy recovery before resorting to sending to the landfill any materials used?

g) What environmental criteria will be applied to the procurement process?

h) Does the project guide development away from important landscape, biodiversity and

historic features?

i) Does the project promote green transport plans and/or support energy saving and clean fuel initiatives and/or promotes public awareness of the need for lifestyle changes to reduce dependence on private car use?

j) Does the project raise awareness to promote water efficiency and conservation?

k) Does the project promote the use of recycled materials, particularly in the construction

industry, to avoid wasteful use and transport of resources? Be reminded, that no marks will be given for a statement of the obvious or for citing measures that are obligatory by law. In this regard, in order to address better the latter section (9.2.2), the Applicant may wish to contact the Ministry for Sustainable Development, the Environment and Climate Change.



29

Section 10 – Financial details

10.1 Estimated Budget Breakdown

The project proposal must include a comprehensive budget breakdown in Euro (€). To avoid arithmetical errors, this section is to be filled in the separate excel sheet provided together with the Guidance Notes and Application Form of this call, entitled ‘Budget Sections of the Application Form’. Please note that this section must include the total investment cost. The budget is presented in different cost centres. Ideally, the budget breakdown should be supported by workings which could be annexed to the application form

28. Indicative eligible

activities are listed under Annex II. However, it does not automatically follow that all expenditure related to these types of activities would be eligible. In general, for expenditure to be eligible it has to be in line with the National Eligibility Rules (The National Eligibility Rules can be downloaded from www.eufunds.gov.mt and the Regulations outlined below. However, each Member State may set limits within the parameters of the Regulations.

Council Regulation (EC) No. 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No. 1260/1999;

Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No. 1783/1999;

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.

Moreover, eligibility with regard to certain cost centres is assessed on the merits of each application and determined on a case-by-case basis (as outlined in the Eligibility Rules).

Important:

It is important to note that the Focus Areas open under this call have a financial threshold, as outlined earlier in the Section “General Information” of these Guidelines. Proposals are to remain within the budget of the call, however the Managing Authority reserves the right to award more projects, if it deems this appropriate and in line with the targets of the Operational Programme. It is also being strongly recommended to estimate the costs of the project as accurate as possible, as revisions of the budgets may not be permitted.

Eligible Project Costs

The Applicant should note that ERDF is a Structural Fund and supports productive investment which contributes to creating and safeguarding sustainable jobs; investment in infrastructure; and support to regions for the development of endogenous potential. Costs related to operations and maintenance, including mere direct replacement are not eligible. Applicants are invited to refer to the Eligibility Rules OPI. The eligibility rules may also be downloaded from the Links and Downloads Section of the MA website.

29

28

Bills of quantity should be provided where these exist. 29

http://www.ppcd.gov.mt/file.aspx?f=503




30

In this regard the Applicant should be guided also by the principle of sound financial management and value for money. In determining technologies and specifications the Applicant should also consider the operational costs of the investment. Unless otherwise indicated and approved by the relative authorities, only expenditure that is incurred in line with the provisions of the Public Procurement Regulations, 2010 (LN 296/2010)

30 will be considered as eligible. In all cases, the principles of competition,

transparency and good governance must be evident. Applicants can also consult the public procurement section of the Manual of Procedures for Structural Funds for an overview of the process. 10.1.1 Additional details, calculations and documents, supporting and justifying the budget can be added to the Application Form.

Note: The estimations provided in the Budget Breakdown will be the maximum granted. Only

costs that are actually incurred within the budget of the Grant Agreement will be funded.

10.2 Revenue Generation

10.2.1 A revenue generating project means any operation involving the provision of service against payment or an operation which, in any way, will enable the organisation to generate any kind of revenue (even when such revenue does not result in net profit). Concessions are also considered to be revenue. It should be noted that cost-savings generated by the projects (e.g. savings on the electricity bills or cost-savings generated through the installation of PVs, RES etc) must be considered as revenue and included in the funding-gap calculation. However, they may be offset by an equal reduction in operating subsidies in the calculation (though they would still need to feature in the Financial Feasibility Study or CBA). Project revenues must be properly taken into account so that the Funds contribution is calculated according to the project’s gross self-financing margin and no over-financing occurs. All figures must be quoted in Euro. There will be no impact on the funding gap in cases where:

Projects do not generate revenues; Projects whose revenue does not fully cover the operating costs (although this must

be established through the formula below).

In ALL cases (except where the project is awarded under a state aid scheme)31

where the project is expected to generate some sort of revenue, the Applicant/Beneficiary should inform the Managing Authority immediately. Furthermore, the Applicant would need to update or undertake (if this has not been done already) the Financial Feasibility Study / Cost - Benefit Analysis accordingly. Ex-post checks revealing revenues may involve recovery of funds from the beneficiary organisation even after the project has ended. Article 55 of the Council Regulation 1083/2006 maintains the funding-gap method as the basis for the calculation of EU grant in revenue generating projects. It stipulates that the eligible expenditure cannot exceed the current value of the investment cost less the current value of the net revenue from the investment over a specific reference period appropriate to the category of the investment concerned. The funding gap is the share of the discounted cost of the initial investment not covered by the discounted net revenue of the project, i.e. the portion of the investment that cannot be

30

https://secure2.gov.mt/eprocurement/legislation 31

Any projects awarded and implemented under State Aid (Article 107 of the Treaty of the European Union) are not

subject to funding gap calculation.



31

covered by the revenue generated, therefore representing the eligible expenditure (the dark blue box below). The identification of eligible expenditure according to Art. 55(2) and the deduction to revenue generated within five years of the completion of the project in accordance with Art. 55(3) ensure that the project has enough financial resources to be implemented and avoid the granting of an undue advantage to the recipient of the aid, i.e. over-financing of the project.

Steps to determining the EU Grant

Steps to determining the EU Grant Step 1. Find the funding-gap rate (R):

R = Max EE/DIC where

Max EE is the maximum eligible expenditure = DIC-DNR (Art. 55.2)

DIC is the discounted investment cost

DNR is the discounted net revenue = discounted revenues – discounted operating costs + discounted residual value

Step 2. Find the “decision amount” (DA), i.e. “the amount to which the co-financing rate for

the priority axis applies”: DA = EC*R Where EC is the eligible cost (boxes 2 and 3 above).

To

tal in

vestm

en

t co

st

Non-eligible expenditure

(1)

Net revenue

(2)

Eligible expenditure

(3)

Not eligible according to Art. 56, (i.e. not eligible

according to MS or Funds

eligibility rules)

Not eligible according to

Art. 55

Elig

ible

co

st

Eligible expenditure to be included in the financial

tables and to be used as a basis for calculating the

contribution from the Funds

Example – Understanding the funding gap: If a project costs €10,000,000 and the net revenue forecasts for this investment amounts to €2,000,000, the funding gap would be €8,000,000 (€10,000,000 - €2,000,000). The co-financing rate would be applied to the €8,000,000. If the project does not generate any net revenue the funding gap is €10,000,000 and the co-financing rate will apply to this rate.



32

Step 3. Find the (maximum) EU grant:

EU grant = DA*Max CRpa where

Max CRpa is the maximum co-funding rate fixed for the priority axis in the Commission’s Decision adopting the operational programme (Art. 53.6)

32.

In general ALL projects featuring potential for revenue-generation will necessitate the compilation of:

Financial Assessment33

(in the case of projects with a total cost34

up to €1,000,000);

Financial Feasibility Study35

(in the case of projects with a total cost up to €5,000,000);

A full Cost Benefit Analysis (CBA)36

(in the case of projects with a total cost exceeding €5,000,000).

The abovementioned Financial Feasibility Study and Cost Benefit Analysis must be carried out by an independent consultant. It is important to include the name of the author/authors on the front page. In the compilation of the Financial Assessment, project proponents may opt to either (i) engage independent consultants or (ii) carry out the Assessment with own/in-house

32

In the example provided in the box below, the DIC amount is expressed in the same proportion as the project’s

eligible costs. 33

Refer to the Financial Assessment table available for download from: http://ppcd.gov.mt/calls_all?l=1 34

Total costs refer to a summation of the eligible costs, VAT and any non-eligible costs. 35

A financial feasibility is a section of the Cost-Benefit Analysis. Vide relevant Commission Guidelines by accessing:

http://ec.europa.eu/regional_policy/sources/docgener/guides/cost/guide2008_en.pdf 36

Ibid.

Example - Determining the EU Grant

1) Find R = Max EE/DIC where

Discounted Values

Undiscounted values

Total investment cost 100

of which eligible cost (EC), say 80

Discounted investment cost (DIC) 89

Discounted net revenue (DNR)* 20 * revenue + residual value – operating costs (discounted values)

Discounted Eligible expenditure (DEEMAX EE = DIC-DNR = 71.2-16 = 55.2 Funding-gap rate (R) = EE/DIC = 55.20/71.2 = 77.5% or [69 / 89= 77.5%]

2) Find DA = EC*R where

Funding gap rate (R) = 77.5% Eligible cost (EC) = 80 "Decision Amount" DA = EC*R = 80*77.5%= 62.02

3) Find EU grant = DA*Max CRpa where

Decision amount (DA) = 62.02 CRpa = 85% (Maximum) EU grant = DA*Max CRpa

= 62.02*85% = 52.72

http://ppcd.gov.mt/calls_all?l=1



33

capacity. If opting for point (i), both the project proponents and their consultants must fill in, sign and submit the checklist for project appraisal available for download on eufunds.gov.mt. If opting for point (ii), only the project proponents must fill in, sign and submit the checklist for project appraisal available for download on www.eufunds.gov.mt. 10.2.2 Financial Feasibility study/ Cost Benefit Analysis

In cases where a Financial Feasibility Study or a Cost Benefit Analysis is required, this should be presented together with the application form. All CBAs submitted with Cohesion Policy Project Application must have the following tables: Table 1: Financial Return on Investment This table should indicate clearly what the investment costs, operating costs and revenues of the project are. The analysis should also include the indicators needed for testing the project’s performance namely, the Financial Net Present Value (FNPV[C]) and the Financial Rate of Return (FRR[C]). Finally the workings should be properly referenced and show the workings of the Funding Gap Ratio as indicated in the guidelines. Table 2: Financial Return on National Capital When computing the financial return on capital - FNPV (K) and FRR (K), all sources of financing are taken into account, except for the EU contribution. Table 3: Financial Sustainability Having determined the investment costs, the operating costs and the sources of finance the proposer must show the project’s financial sustainability i.e. the proposer must show how over the project time horizon (reference period of the analysis), sources of financing (including revenues) will consistently match disbursements year-by-year. Table 4: Economic Analysis Whilst table 1 & 2 are carried out from the point of view of the project operator, the latter is done on behalf of society. ‘The Key concept is the use of accounting shadow prices, based on the social opportunity cost, instead of observed market prices’

37.

These are the main tables that should be presented with the CBA but it is important to note that the CBA should be divided as follows: Context Analysis and project objectives Project identification Feasibility and Options analysis Demand Analysis Financial analysis Economic analysis Risk and Sensitivity Assessment In the case of a Financial Feasibility assessment, the study should be made up of the following sections: Context Analysis and project objectives Project identification Feasibility and Options analysis

37

Guide to Cost Benefit Analysis of investment projects (DG REGIO) April 2008. Available on

http://www.ppcd.gov.mt/file.aspx?f=1703





34

Financial analysis The Financial analysis section should include the calculation of the financial return on investment (Table 1 above) and the determination of the financial sustainability of the investment (Table 3 above). It should be noted that the Managing Authority or the PSC may request the undertaking of a Financial Feasibility Analysis/full Cost Benefit Analysis even for projects which fall below the above thresholds. The Applicant will have a maximum of three months (from the request by the PSC / MA) to submit the requested study. The costs incurred to undertake the study might be considered as an eligible cost should the project be approved and the correct procurement procedures have been followed. In the compilation of the above mentioned study and/or analysis, project proponents and their consultants must fill in, sign and submit the checklist for project appraisal available for download on eufunds.gov.mt.

10.3 Other Community Financing Sources

In this section, the Applicant is requested to provide details as to whether an application, for part or all of the proposed projects has already been submitted for assistance under any other Community sources of funding including ERDF, ESF, Cohesion Fund, TEN-T budget, LIFE+, etc. If in the affirmative, the Applicant should provide all details relating to the financial instrument, the reference number, date of submission/approval, amounts requested for project, amounts granted, etc. The Applicant is required to indicate whether the project proposal is complementary to any other project already financed or to be financed by the ERDF, ESF, Cohesion Fund, TEN-T budget or other sources of Community finance. The Applicant should also indicate whether an application for a loan or equity support from the EIB/EIF or any other bank or financial institution for the proposed project has been made. If in the affirmative, the Applicant should provide all relevant details. Please indicate if an application from other Community sources of funding has been made for earlier stages/phases of the proposed project (e.g. feasibility or preparatory phases). If in the affirmative, please provide all details concerning the financial instrument, the reference number, date of submission/approval, amounts requested for project, amounts granted, etc.




35

Section 11 - Contracting and Implementation

11.1 Public Procurement Table

Good governance in the execution of public procurement is critical to Structural Funds implementation. It is vital that projects follow clear and open procedures in any procurement undertaken. In this regard, Applicants must ensure compliance with the Public Contract Regulations,

38 even if they are not legally bound by the regulations, and more widely with

good practice in procurement, particularly in setting maximum budgets and setting clear specifications / terms of reference. In case of Public Entities, Applicants should take note of all relevant circulars issued by the Department of Contracts including Contracts Circular N°18/2008 & 13/2010. In the separate excel sheet provided together with this Application Form and Guidance Notes entitled ‘Budget Sections of the Application Form’, please indicate the expected tenders and the costs in EURO. Under the first column please indicate the name of the tenders that are to be issued. Applicants are encouraged to hold discussions with the Department of Contracts to identify how expenses under the project may be grouped under the same tender/call. Under the second column please specify whether it is a supply, service, or works tender. In the third column please indicate the procurement procedure that is going to be followed, i.e. departmental tender, open, accelerated open, restricted, accelerated restricted, negotiated, accelerated negotiated, etc. Applicants should fill in this information for each tender/call. Please note that in cases where a tender includes non-eligible costs, Applicants are kindly requested to include such costs (in EUR) in the cost centres provided. The expenditure falling under the cross financing mechanism

39 should be grouped in a

separate lot or tender. The Total Value of Tenders (including non-eligible costs) and the Total Value of Employment Contracts (including non eligible costs) identified under Section 11.1 and 11.2 must tally with the grand total of the budget breakdown under Section 10.1. The contact person for Department of Contracts:

Mr Anthony Cachia Director General Contracts Ministry for Finance Department of Contracts Notre Dame Ravelin Floriana FRN1600 Tel: 25670125 Fax : 21247681 Email: [email protected] [email protected]

In the case of works and supplies, the Applicant/Beneficiary should consult the Technical Regulations Divisions of the Malta Competition and Consumers Affairs Authority with respect to the minimum legal requirements for placing on the market that may need to be inserted in

38

At the time of Publication of these Guidelines, the Public Contracts regulations in force are LN 296 of 2010 and its

subsequent amendments. Applicants are to ensure that procurement is made in line with the regulations in force at the time of implementation. 39

Refer to Rule No 25 of the Eligibility Rules





36

the technical specifications of the tenders. In addition, the applicant is to consult the Contracts Circular No.5021/2011 on Green public Procurement

40.

11.2 Employment Contracts

For this section the Applicant should fill in the separate excel sheet provided together with this Application Form and Guidance Notes entitled ‘Budget Sections of the Application Form’ and state the procedures that will be followed in order to recruit employees on an employment contract. The normal employment procedures of the Applicant (which should be documented) should be followed (for example, in case of Government Departments, the Public Service Commission process should be followed). These procedures should be fair, transparent and competitive. Employment contracts fall outside the remit of the Department of Contracts (DoC). Applicants should note that DoC cannot give advice on Employment Contracts. Employment contracts should be of a definite period (e.g. 3 years with option to renew) and in any case which does not go beyond the closure of the project. Please fill in the required details in the table provided. Note that in cases where a call includes non-eligible costs (such as social security contributions where the latter are not genuinely borne by the Beneficiary), Applicants are requested to include such costs in the cost centres provided (i.e. social contributions should be separately identified). The MA and the Government of Malta will not accept any responsibility with regard to any claims made by any employees employed for the project by the Beneficiary,

11.3 Current Level of Implementation of Project

In this section, please indicate whether any work has been carried out so far on the project or parts of it [apart from the submission of the proposal]. Please also specify the status of this work and indicate whether any further preparation/implementation work will continue regardless of the grant decision or whether further progress is dependent on the outcome of the grant decision. Please note that the progress indicated should represent the actual status of the project.

11.4 Implementation Schedule

Under this section the Applicant is required to indicate the stage of each tender/call per quarter. The tenders/calls listed should be the same as the ones listed under Section 11.1 and Section 11.2 of the Application Form. Project leaders are to ensure that the implementation schedule presented in the proposal is as realistic as possible (and any potential delays are factored in) since this schedule will be confirmed in the Grant Agreement issued by the MA, should the project be approved. This schedule is very important for the MA to keep control over the overall commitment of funds under OP I, as a whole. This table also indicates the end date of the project which should tally with section 11.5. Any deviation at a later stage (for whatever reason) may result in automatic de-commitment of funds (for the project and ultimately for Malta). When compiling this section, the Applicant should also take note of the indicative deadline set by the MA with regard to when the results of the evaluation of the Application is expected to be communicated to the Applicant. It is also strongly

40

Further guidance may be sought from the Green Public Procurement website: www.gpp.gov.mt



37

recommended to consult the Department of Contracts (or the Public Procurement Regulations) as well as MEPA (see sections 11.1 above and 11.5 below) in order to compile a realistic schedule. Please use the following definitions:

Design (D) refers to the time frame required to finalise specifications of the tender documents prior to the launch of the Tender on the market; or timeframe required to finalise specifications of call for projects in case of schemes. Tender being vetted by DoC (V) – in the case of Contracting Authorities whose tenders fall under the remit of the DoC. Tender published (P) refers to the time frame when the tender has been published, Evaluation (E) refers to the tender undergoing evaluation and award; up till contracting. Implementation (I) refers to the period following the contracting of tenders. Closure (C) refers to the period following the conclusion of a contract. During closure, the Project Leader certifies and settles any outstanding invoices and commissions the final implementation report. If necessary, additional rows may be added.

11.5 Contracting and Disbursement Schedule

The Applicant should fill in the contracting and disbursement schedules in Euro in the separate excel sheet provided together with this Application Form and Guidance Notes entitled ‘Budget Sections of the Application Form.’ The information included in this table must be split between Total Eligible Costs, Total Non-Eligible Costs and VAT (eligible or not). The aim of the table is to give a clear indication of the total amount of funds that will be contracted and disbursed during each quarter of the project’s life time. The Applicant is reminded to quote figures separately, i.e. eligible costs, non-eligible costs and VAT should be listed for each tender to be issued. Contracting refers to the amount of funds (in EURO) for which the Beneficiary enters into an agreement with a third party to procure goods or services. Disbursement refers to payments to be effected through SFD (in EURO). It is important to note that the Grand Total in this section must correspond to the Grand Total (excluding contingency) in the Budget Breakdown, Section 10.1 of the Application Form. If necessary, additional columns could be added.

Applicants should also take note of Contracts Circular No. 18/2008 ‘Contracting Procedures’ (02.06.2008), and any subsequent updates, when filling in this section.

Section 12 - Planning and Environmental Permits

Under this section the Applicant should indicate whether any component of the project requires a planning/environmental permit. The Applicant should bear in mind the procurement of certain equipment (e.g. equipment using certain chemicals may require an environmental permit. Infrastructural development may also require planning/development permits. Some



38

projects may also require an Environmental Impact Assessment.41

In this regard, it is strongly recommended that the Applicant contact MEPA in order to have an idea of the obligations that will ultimately impact implementation. The Applicant should also indicate whether expenditure for such items is foreseen and if yes, whether the necessary approvals have been obtained from MEPA. In case where the Applicant indicated that no official correspondence exists between the Applicant organization and MEPA, please describe how it has been concluded that no MEPA permit is required for the project or any of its components. The contact person at MEPA (Planning and Environment) is: Perit Michelle Piccinino Malta Environment and Planning Authority P.O. Box 200, Marsa MRS1000, Malta Tel: 2290 1080 Email: [email protected] This section also requests the Applicant to give details whether the project falls within the scope of the Strategic Environment Assessment Directive (Directive 2001/42/EC), the EIA Directive (85/337/EEC) as well as whether the project is likely to have an impact on a Natura 2000 site.

Section 13 – Publicity

In order to meet the requirements of the Regulations, Beneficiaries of ERDF grants must ensure that adequate publicity is given to the project with a view to: a) making potential participants aware of the opportunities afforded by it; b) making the general public aware of the role of the Community in relation to the project; c) ensure transparency of the assistance concerned. As an example, materials used by the Beneficiary and major correspondence, including contracts signed with third parties must include any acknowledgement of ERDF support. Any publicity material, such as advertisements, billboards and information leaflets about ERDF co-financed projects must acknowledge ERDF support. Applicants are to be cautious when determining publicity actions for the project. Applicant should also ensure that the project benefits from any free publicity (e.g. by placing it on the Ministry’s / Entity’s website and any social media tools) and that anything that will be proposed to be funded under the project is either obligatory or adds value to the results of the project, taking into account the value for money principle. In this regard publicity measures of individual projects should take into account the nature of the project and must be relative to the size and objectives of the project. The Beneficiary should note that publicity may only be used to increase awareness of what EU funds are used for and to disseminate results. Publicity measures undertaken must be project specific and must be in line with Articles 8 and 9 of the Commission Regulation (EC) No 1828/2006. Further information and guidance is provided in the Manual of Procedures. Publicity and information measures must not be used as a marketing tool to promote an organisation, its products, services or infrastructure. The Applicant may also make reference to the ‘Visual Identity Guidelines’ that may be downloaded from the Publicity Section of the MA’s website

42.

41

For more information about EIA access the MEPA website on: https://www.mepa.org.mt/permitting-ea-eiamain 42

https://eufunds.gov.mt/en/Operational%20Programmes/Publicity/Pages/Publicity.aspx

https://www.mepa.org.mt/permitting-ea-eiamain

https://eufunds.gov.mt/en/Operational%20Programmes/Publicity/Pages/Publicity.aspx



39

13.1 Obligatory Publicity Measures

In this section please fill in the table provided with the applicable obligatory publicity measure which needs to be carried out. The audience which is expected to be targeted and the budget allocated to it. Please refer to (EC) Regulation 1083/2006.

13.2 Other Publicity Measures

In this section please fill in the table provided with other publicity measure which could be carried out. Emphasis should be made on that publicity which could be carried out free of charge as part of the publicity campaigns or marketing measures adopted by the Applicant Organisation, if and where relevant. Presentation mode refers to media that will be used for publicity purposes. Examples include, articles in newspapers, articles in the Beneficiary’s annual report, reference on the Beneficiary’s website, discussions on radio, TV coverage and Social Media. Audience refers to the target audience, to whom the publicity is targeted. Examples include general public, constituted bodies, adults, etc. Budgeted allocations refer to the allocation budget line under Table 10.1. Annex III to these Guidance Notes provide a complete example which can be referred to.

13.3 Justification

Under this section the Applicant should provide a substantial justification for the publicity measures proposed in Section 13.2. As already indicated above publicity measures should be proportionate to the operation. Additionally the Applicant is also requested to identify the body, bearing the cost of the different publicity actions.

Section 14 – Readiness

Applicants should AVOID proposing projects which are not yet clearly defined (i.e. where a number of studies have to be carried out to determine the exact scope of the project).

In this section please indicate at which stage the project is in terms of readiness. Readiness refers to projects that are in an advanced state of preparation. In the first table of this section, please indicate the start and end dates of any preparatory / required studies (including Financial Feasibility; Cost Benefit Analysis; Environmental Impact Assessment; Design Studies; Land Acquisition) that need to be undertaken for your project. Please indicate if any of the mentioned studies (or others) have started and their expected completion date if they are still underway. Please also indicate if none of the required studies have started as yet. In the subsequent table, the Applicant is required to provide an update on the procurement process. An update is required for each tender and / or call to be launched by the project. Employment contracts should also feature in this table, if applicable. For each tender / call please tick one box indicating the status of the tender / call at the time of submission of the Application.

43 The status indicated has to reflect the true and fair view of the stages that the

status of the tender is actually in at the time of the submission of the application. In the last part of this section, the Applicant is required to provide an update on the status of any MEPA permits. The Applicant should indicate the relevant permit application number, a description of the works / equipment covered by the permit and the current status of the

43

Please attach a copy of the newspaper cutting for any part of the procurement process that has been launched.



40

permit (e.g. submission to MEPA, public consultation, review by case officer, MEPA approval, publication of actual permit). In cases where the Applicant indicated that tenders/calls/studies/permits have been completed, evidence of readiness should be provided with the Application at submission stage. Following the closure of the call, the Applicant should formally inform [via letter addressed to the Chairperson of the Project Selection Committee (PPCD) or via e-mail to the Project Manager responsible for the call (the details of the relevant Manager will be made known to you upon submission of the application form) of any completed tenders/studies/calls/permits.

Section 15 - Sustainability of the Project

The project must be sustainable in the long-term beyond the period of the OP. Projects need to demonstrate their sustainability after completion. The project proponent must show how the benefits of the project will continue to be delivered after grant support comes to an end and how the costs of sustaining the project will be met. The Applicant should ensure that the longer-term economic sustainability of the project is taken into account and appropriate measures are put in place. Under this section the expected life-time of the project should be included as well as a calculation of annual operational costs for the expected lifetime of the project. In cases where the Government is not financing the project, Applicants are required to provide proof and guarantees as to how the project will be sustained, particularly if no revenue is generated from the project and if the accounts of the organisation do not support declarations made by the Applicant in terms of sustainability. Important: In the case of projects that have a Financial Assessment, Financial Feasibility Study or Cost – Benefit Analysis with the application, this should be taken from such a study. This condition applies to ALL projects falling within the thresholds stipulated under section 1.5 of the Guidance Notes. N.B. In case of non-revenue generating projects below the €1million threshold, the Applicant is to provide in the application form a breakdown of the likely operating costs of the project for not less than 5 years following the completion of the operation. Notwithstanding this the PSC and / or the Managing Authority can request such Applicant to provide the operating costs through an independent study. In such cases the Applicant has 3 months (from the day of the request) to produce the study. Applicants are responsible to commit to the durability clause enshrined in Council Regulation (EC) 1083/2006 which states that an operation retains the contribution of the funds only if that operation does not, within five years from the completion of the operation, undergo a substantial modification. Hence, if equipment is damaged, stolen or becomes obsolete during these five years, it must be replaced through the funds of the organization implementing the project.

Section 16 – Data Protection

This section concerns the duty of the PPCD to protect data provided in the Application Form Any queries regarding Data Protection matters should be brought to the attention of the Data Controller within PPCD. The officer in charge, can be contacted by email on: [email protected]



41

Section 17 - Conditionality and Risks

Any conditionality and risk that may impinge on the smooth and efficient implementation of the project must be identified at this stage. These include issues related to permits, tendering, devolution of property, land expropriation, etc. The Applicant should also indicate if any action is being undertaken (what should be/is being done, by when and by whom) to mitigate against the risks and address the conditionality. Conditionality/risks not within the control of the Applicant should also be included. Please state if there are conditions and/or risks associated with the project and its effective implementation. Any conditionality must be specific and achievable, indicating clearly what should be done, by when and by whom. Conditionalities not within the control of the project are deemed to be a risk and should also be included. By assessing risk, one is not looking to avoid it, but rather, to understand the nature of that risk, be reassured that the Applicant takes steps to minimise the risk and has options to deliver at least part of the project, should something happen to affect the project. Projects with a high level of risk be innovative and have the potential to deliver some excellent outputs and impacts and hence, such projects will not automatically be rejected, especially if the Applicant clearly defines a worst case scenario; demonstrates the capacity to deliver the project based on a solid track record; makes financial provision to deal with upward variations; and puts in place a contingency plan to compensate for adverse effects on timetable, expenditure and outputs.

Section 18 - Additional Information

In this section the Applicant may add information relating to all sections in the application form which he/she feels might be relevant.

Section 19 – Declaration

The officer signing the declaration must have the relevant authority to sign on behalf of the Applicant organisation. The Applicant is reminded that information in this application will be used to make decisions on whether to award EU Funds to the project. If the information given in the application is found to be false or deliberately misleading, any EU Funds awarded may be withdrawn and any funds paid may be recovered from the Applicant organisation who completes this certificate.

Section 20 – Checklist of Attachments

The Applicant must ensure to include / annex all the necessary documents mentioned throughout these Guidance Notes. For ease of reference a checklist has been provided in the Application Form.

All Annexes should be duly filled with a cover page detailing the contents of the documents provided.



42

ANNEX I – Ranking Sheet

ERDF/CF Project Selection Criteria

Priority Eligibility Criteria Selection Criteria

Co

mp

lete

Ap

pli

cati

on

Fo

rm

Fit

s w

ith

in o

ne o

r m

ore

of

the

foc

us a

reas o

f in

terv

en

tio

n

Co

ntr

ibu

tio

n t

ow

ard

s

ob

jecti

ves

Co

ntr

ibu

tio

n t

ow

ard

s

ind

icato

rs

Pro

ject

rem

it w

ith

in t

he

man

da

te o

f th

e B

en

efi

cia

ry

Pro

ject

Le

ad

er

fro

m

Ben

efi

cia

ry o

rga

nis

ati

on

Pro

of

of

co

-fin

an

cin

g w

he

re a

pp

licab

le

Pro

ject

Imp

lem

en

ted

wit

hin

the

Elig

ible

Te

rrit

ory

Ju

sti

fied

ne

ed

to

im

ple

men

t

the

pro

ject

Nati

on

al P

rio

riti

es

Co

ntr

ibu

tio

n t

ow

ard

s

ind

icato

rs b

eyo

nd

min

imu

m

req

uir

ed

Pro

ject

Su

sta

ina

bilit

y

Read

ine

ss

Cap

acit

y o

f th

e O

rgan

isati

on

Qu

ali

ty o

f A

pp

licati

on

Fo

rm

Ho

rizo

nta

l P

rio

riti

es

En

vir

on

men

tal S

us

tain

ab

ilit

y

an

d E

qu

al O

pp

ort

un

itie

s

Carb

on

Im

pa

ct

To

tal M

ark

s

Ran

kin

g

Ma

rks

Yes/N

o

Yes/N

o

Yes/N

o

Yes/N

o

Yes/N

o

Yes/N

o

Yes/N

o

Yes/N

o

10 10 15 10 15 10 10 10 10 100

Project Code

43

ANNEX II – National Eligibility Rules

National Eligibility Rules

Eligibility rules laid down by Malta and applicable to Operational Programme I funded by the European Regional Development

Fund/Cohesion Fund

Refer to the National Eligibility Rules available for download from www.eufunds.gov.mt.

ANNEX III – Publicity Table (Example)

Obligatory Publicity measures as per Regulation

Other Publicity measures

Tool/Action Access Points Presentation Mode

Audience Budget allocation in €

Print Media

National and Local Newspapers

Adverts General Public

National and Local Newspapers

Articles General Public

44

The total budget must correspond with the allocation proposed under Section 8 above 45

Adverts for the Publishing of Tenders/ Quotations/ Calls for Employment 46

Compulsory for projects including the purchasing of equipment/infrastructure 47

Compulsory for projects including an infrastructure component

Tool/Action Access Points Audience Budget in €44

Print Media

Newspapers45

General Public

Stickers Beneficiary and service users

Signage

Plaques46

Beneficiary and service users

Billboards47

General Public

Total


44

Industry/ Business/ Organisation Journals and Magazines

Article in the beneficiary’s ANNUAL REPORT. A dedicated section to EU co-financed projects was introduced.

Beneficiary and private and government constituted bodies with interest in the sector.

Broadcast Media

National TV and Radio

Filming and Description of services

General Public

Local Radio

Discussions on project portfolio by Beneficiary representatives.

General Public

Internet and Websites

Local Websites

Page / Group on Social Network

Reference to the project on the Beneficiary’s homepage and

Page / Group on Social Network

General Public

Project Signage Billboards Plaques

On site

To be set up by Contractor as an obligation under the contract. (Billboard/ Plaque)

General Public

On site Stickers General Public

Total