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Ministry of Regional Development and Public Works

PHARE Programme – Economic and Social Cohesion

PILOT INTEGRATED INVESTMENT SCHEME

FOR REGIONAL DEVELOPMENT ACTIONS

(NORTH-EAST PLANNING REGION)

Guidelines for grant applicants

responding to the call for proposals

for 2005

Budget line BG BG2003/004-937.11.03

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Table of Contents1. PILOT INTEGRATED INVESTMENT SCHEME FOR REGIONAL DEVELOPMENT ACTIONS (NORTH-EAST PLANNING REGION)...................................................................................................4

1.1 BACKGROUND............................................................................................................................ 41.2 OBJECTIVES OF THE GRANT SCHEME AND PRIORITY ISSUES.........................................................51.3 FINANCIAL ALLOCATION PROVIDED BY THE MRDPW....................................................................5

2. RULES OF THIS CALL FOR PROPOSALS...................................................................................72.1 ELIGIBILITY CRITERIA..................................................................................................................7

2.1.1 Eligibility of applicants: who may apply.............................................................................72.1.2 Partnerships and eligibility of partners..............................................................................92.1.3 Eligible actions: actions for which an application may be made........................................92.1.4 Eligibility of costs:............................................................................................................112.1.5 Instructions for presentation of the Annex B - Budget.....................................................132.1.6 Description of Grant Scheme’s components and components’ specific rules.................15

2.1.6.1 Business Related Infrastructure...................................................................................................152.1.6.1.1 Background............................................................................................................................152.1.6.1.2 Objectives...............................................................................................................................152.1.6.1.3 Type of eligible actions...........................................................................................................152.1.6.1.4 Size of grant...........................................................................................................................172.1.6.1.5 Eligibility of Applicants............................................................................................................172.1.6.1.6 Partnership.............................................................................................................................172.1.6.1.7 Duration..................................................................................................................................172.1.6.1.8 Eligible costs..........................................................................................................................172.1.6.1.9 Ineligible costs........................................................................................................................18

2.1.6.2 Human Resource Development - Local Initiatives for Employment and Employability...............182.1.6.2.1 Background............................................................................................................................182.1.6.2.2 Objectives...............................................................................................................................192.1.6.2.3 Type of eligible actions...........................................................................................................192.1.6.2.4 Size of grants.........................................................................................................................202.1.6.2.5 Eligibility of Applicants............................................................................................................202.1.6.2.6 Partnership.............................................................................................................................202.1.6.2.7 Duration..................................................................................................................................212.1.6.2.8 Eligible costs (specific for the component).............................................................................212.1.6.2.9 Ineligible costs........................................................................................................................21

2.1.6.3 Integrated Support to regional/local tourism................................................................................212.1.6.3.1 Background............................................................................................................................212.1.6.3.2 Objectives...............................................................................................................................222.1.6.3.3 Type of eligible actions...........................................................................................................222.1.6.3.4 Size of grants.........................................................................................................................242.1.6.3.5 Eligible applicants...................................................................................................................242.1.6.3.6 Partnership.............................................................................................................................242.1.6.3.7 Duration..................................................................................................................................252.1.6.3.8 Eligible costs..........................................................................................................................25

2.1.6.4 Investment to Support Conditions and External Environment for Productive Sector..................252.1.6.4.1 Background............................................................................................................................252.1.6.4.2 Objectives...............................................................................................................................262.1.6.4.3 Types of eligible actions.........................................................................................................262.1.6.4.4 Size of grants.........................................................................................................................272.1.6.4.5 Eligible applicants...................................................................................................................272.1.6.4.6 Partnership.............................................................................................................................282.1.6.4.7 Duration..................................................................................................................................282.1.6.4.8 Eligible costs..........................................................................................................................28

2.1.7 Other technical requirements related to this Call for Proposals......................................312.2 HOW TO APPLY AND THE PROCEDURES TO FOLLOW...................................................................32

2.2.1 Application form and supporting documents...................................................................322.2.2 Where and how to send the application..........................................................................352.2.3 Deadline for receipt of applications.................................................................................362.2.4 Further information..........................................................................................................362.2.5 Acknowledgement of receipt...........................................................................................36

2.3 EVALUATION AND SELECTION OF APPLICATIONS..........................................................................362.4 NOTIFICATION OF THE CONTRACTING AUTHORITY’S DECISION......................................................402.5 CONDITIONS APPLICABLE TO IMPLEMENTATION OF THE ACTION FOLLOWING THE CONTRACTING AUTHORITY’S DECISION TO AWARD A GRANT.........................................................................................40

3. List of annexes.............................................................................................................................. 43

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Explanatory notes

Beneficiary Entity accepting financial support (grant) from public sources (EU and BG state budget)

Contracting Authority Ministry for Regional Development and Public Works represented by the PAO and Phare Implementing Agency

Component One of the 4 grant scheme components

Implementing Agency Phare Implementing Agency Directorate, an executive body within the MRDPW

Programme Authorizing Officer Deputy Minister of MRDPW, person responsible for the programme and operations of the IA

Programme Implementation Unit Executive unit of the programme within the District Administration Centre Varna headed by the SPO and accountable to the PAO

Action Project for which a grant is awarded under a grant scheme

Senior Programme Officer Varna District Governor, person responsible for operations of the PIU

List of Abbreviations

CA Contracting Authority

DEC Delegation of the European Commission

ESC Economic and social cohesion

EU European Union

EUR Euro, European currency

GDP Gross domestic product

HRD Human resource development

IA Implementing Agency

MEUR millions of EUR

MoE Ministry of Economy

MoEW Ministry of Environment and Water

MoF Ministry of Finance

MLSP Ministry of Labour and Social Policy

MRDPW Ministry for Regional Development and Public Works

NAC National Aid Coordinator

NAO National Authorizing Officer

NF National Fund

NE region North-East region

PAO Programme Authorizing Officer

PIU Programme Implementation Unit

ROP Regional Operational Programme

SME Small and medium sized enterprises

TIC Tourist information centre

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1. PILOT INTEGRATED INVESTMENT SCHEME FOR REGIONAL DEVELOPMENT ACTIONS (NORTH-EAST PLANNING REGION)

IMPORTANT NOTICE

WE ADVISE ALL POTENTIAL APPLICANTS TO READ VERY CAREFULLY:

Chapter 1 (p.4-6) – which gives an ESSENTAL overview to the entire document and useful information on the entire Grant Scheme;

Section 2.1.1. – 2.1.4. of Chapter 2 (p.6-12) – which sets out general criteria and rules that apply to all applicants;

Section 2.1.7. to the end of chapter 2 (section 2.2.-2.5.) and all annexes – which give ESSENTAL information for all applicants.

IF YOU ARE INTERESTED IN PREPARING AND SUBMITTING A PROJECT PROPOSAL, YOU MUST ALSO STUDY AND ADHERE TO ALL ADVICE GIVEN AS FOLLOWS:

For component Business Related Infrastructure (non tourism) go to section 2.1.6.1. on page 15-17

For component Human Resource development – Local Initiatives for Employment and Employability go to section 2.1.6.2. on page 18-21.

For component Integrated Support to regional/local tourism go to section 2.1.6.3. on page 21-25

For component Investment to Support Conditions and External Environment for Productive sector go to section 2.1.6.4 on page 25-30

1.1 Background

The European Union is committed under its policy of “Economic and Social Cohesion” to “ reducing disparities between the levels of development of the various regions and the backwardness of the least favored regions”. Bulgaria already participates in this policy through the Pre-Accession Instruments Phare, ISPA and SAPARD. Under Phare it is building its capacity to benefit fully from Structural and Cohesion Funds which will be the main instruments for this policy after Accession.

This Grant Scheme marks an important step in Bulgaria’s preparations for future Structural Funds. Firstly it provides significant investment to North East Bulgaria. Secondly it helps prepare and pilot structures and systems and develop important capacities and capabilities for effective use of Structural Funds. As such this Grant Scheme has an important “pilot” character. It is a learning exercise for all concerned.

This Grant Scheme is also important in that it is “integrated”. In simple terms this means that it seeks to unite various development priorities and resources under a single roof that can more effectively address development needs of the NE region. It is multi-sectoral in its scope and yet aims at common objectives. The Grant Scheme designers have aimed, within practical limitations, to encourage the various implementing bodies, regional development actors and project developers to concert their activities in order to achieve an effect that none of them could achieve in isolation. The Scheme encourages joint working and partnership where possible. In the area of tourism especially, it makes provision for project promoters and development actors to integrate their activities within a single application. In other components the Scheme encourages projects with a logical set of appropriately integrated actions that provide a real development impact.

The Scheme makes an important contribution to Bulgaria’s National Development Plan and especially to the Regional Operational Programme (ROP). It is both consistent with these as they currently exist and will help inform their final development in the run-up to EU Accession.

In particular this Scheme builds on significant efforts that have already taken place in Bulgaria and the NE Region in recent years. These have involved the careful preparation of various strategic documents, the

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identification of possible intervention areas. More recently and as part of the preparation of this Scheme, a team of consultants have been engaged by the MRDPW to ensure appropriate design of the Scheme, based on a comprehensive mapping exercise of the current project pipe-line and development needs of the NE Region. In this manner it is intended that this Scheme should support good quality projects in key areas that contribute to the economic and social development of the North-East Region and that can be effectively implemented within the disbursement period for the Scheme.

1.2 Objectives of the Grant Scheme and priority issues

The Grant Scheme’s overall objectives are:

1. To pilot and test - in the context of preparation for Structural Funds and especially of the future Regional Operational Programme (ROP) - an integrated programme approach that contributes to the economic and social development of the NE region, develops key programme design, implementation and monitoring/evaluation competencies nationally and within the Region, identifies and reinforces regional and local approaches complementary to main sectoral/national interventions.

2. To enhance specific factors and conditions that support regional development especially in terms of business and tourism development or that provide local pathways for target groups into the labour market and its support mechanisms – thus contributing to regional competitiveness and social cohesion.

1.3 Financial allocation provided by the MRDPW

The overall indicative amount made available under this call for proposals is 6.14 MEUR (4, 60 MEUR from Phare, 1.54 MEUR from the state budget). The contracting authority reserves the right not to award all available funds.

The overall indicative amount will be further allocated to the four components as follows:

Title of the Component Indicative allocation: MEUR

1. Business Related Infrastructure 1.842

2. Human Resource DevelopmentLocal Initiatives for Employment and Employability 0.614

3. Integrated Support to Tourism Development 3.07

4.Investment to Support Conditions and External Environment for Productive Sector 0.614

Should it occur that there is not a sufficient number of good projects to absorb the allocated funds for a particular component, a proportion of these funds may be reallocated to support good projects selected under other components.

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Size of grants

Any grant awarded under this programme must fall between the following minimum and maximum amounts:

Title of the Component Minimum amount: EUR Maximum amount: EUR

1. Business Related Infrastructure 50 000 300 000

2. Human Resource DevelopmentLocal Initiatives for Employment and Employability 20 000 50 000

3. Integrated Support to Tourism Development 50 000 300 000

4. Investment to Support Conditions and External Environment for Productive Sector 20 000 100 000

Moreover, no grant may exceed 90% of the total eligible costs of the action (see also section 2.1.4). The balance must be financed from the applicant's or partners' own resources or from sources other than the European Community budget.

The applicant must present a clear budget breakdown justifying the amount of the requested grant.

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2. RULES OF THIS CALL FOR PROPOSALS

These guidelines set out the rules for the submission, selection and implementation of actions financed under the programme, in conformity with the provisions of the Practical Guide1.

2.1 Eligibility criteria

The first 4 subsections of this section refer to general eligibility criteria which apply to actions related to all four components of the Pilot Integrated Investment Scheme. In addition to the general eligibility criteria, specific eligibility criteria for applicants, partners, actions and costs are presented for each component in the next subsection (see 2.1.6 below). Applicants should refer to BOTH sections and respectively type of criteria.

Eligibility criteria relate respectively to:

organizations which may request a grant, actions for which a grant may be awarded, types of costs which may be taken into account in setting the amount of the grant.

IMPORTANT

The Pilot Integrated Investment Scheme will not award grants to any profit-making activities. Beneficiaries (lead organizations and partners) have no right to make any profit from the project (action) activities. These conditions apply to all actions financed under all components of the Pilot Integrated Investment Scheme.

2.1.1 Eligibility of applicants: who may apply

A DETAILED SPECIFICATION OF APPLICANTS FOR EACH COMPONENT IS GIVEN IN THE SECTION 2.1.6

(1) In order to be eligible for a grant, applicants must:

be municipalities or associations of municipalities, organizations founded or run by municipalities, non governmental organizations, (e.g. professional chambers, branch associations, accredited public training organizations), etc;

be non-profit-making legal persons;

be organizations either located in the NE region or organizations with a registered branch office located in the NE region or must clearly demonstrate appropriate links to the NE region2 and have facilities to implement the project with sustainable benefits in the region;

be directly responsible for the preparation and management of the action, not acting as an intermediary;

if a non governmental organization, the respective NGO has to prove, as per court registration, that has been in operation for at least two years prior to the date of this Call for Proposal;

have stable and sufficient resources of finance for co-financing of at least 10% of the overall eligible costs of the action;

be experienced and able to demonstrate their capacity to manage larger scale activities corresponding to the size of the action for which a grant is requested.

1 “Practical Guide to contract procedures financed from the General Budget of the European Communities in the context of external actions” available on the Internet at this address: http://europa.eu.int/comm/europeaid/tender/gestion/index_en.htm 2 Either the applicant OR the partner (s) OR both must be registered in the NE region

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http://europa.eu.int/comm/europeaid/tender/gestion/index_en.htm

IMPORTANT

Ministries, state agencies and their regional branches as well as district administration are not eligible either as applicants or as partners.

(2) Potential applicants may not participate in calls for proposals or be awarded grants if:

(a) they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

(b) they have been convicted of an offence concerning professional conduct by a judgment which has the force of res judicata (i.e. against which no appeal is possible);

(c) they are guilty of grave professional misconduct proven by any means which the contracting authority can justify;

(d) they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the contracting authority or those of the country where the action is to take place;

(e) they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organization or any other illegal activity detrimental to the Communities' financial interests;

(f) they have been declared to be in serious breach of contract for failure to comply with their contractual obligations in connection with a procurement procedure or other grant award procedure financed by the Community budget.

Applicants are also excluded from participation in calls for proposals or the award of grants if, at the time of the call for proposals, they:

(g) are subject to a conflict of interests;

(h) are guilty of misrepresentation in supplying the information required by the contracting authority as a condition of participation in the call for proposals or fail to supply this information;

(i) have attempted to obtain confidential information or influence the evaluation committee or the contracting authority during the evaluation process of current or previous calls for proposals.

In the cases referred to in points (a), (c), (d), (f), (h) and (i) above, the exclusion applies for a period of two years from the time when the infringement is established. In the cases referred to in points (b) and (e), the exclusion applies for a period of four years from the date of notification of the judgment.

Applicants must supply with their applications a sworn statement that they do not fall into any of the above categories (a) to (f).

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2.1.2 Partnerships and eligibility of partners


Applicants may act individually or in consortium with partner organizations.

Applicants’ partners participate in designing and implementing the action, and the costs they incur are eligible in the same way as those incurred by the grant Beneficiary. They must therefore satisfy the same eligibility criteria as applicants3 (see 2.1.1 above as well as 2.1.6).

The applicant will act as the lead organization and, if selected, as the contracting party (the "Beneficiary").

Applicants’ partners participate in designing and implementing the action, and the costs they incur are eligible in the same way as those incurred by the grant Beneficiary.

Other organizations may be involved in the action as associates. Associates play a real role in the action but may not receive funding from the grant. Associates do not have to meet the eligibility criteria referred to in section 2.1.1

IMPORTANATPlease, be aware of the difference between partners and associates. They have a different role in the project implementation, which is reflected, inter alia in the requirements to the supporting documents they have to provide.

Subcontractors are neither partners nor associates, and are subject to the rules set out in Annex IV to the standard grant contract.

A detailed specification of partners (associates) for each component is given in the section 2.1.6

2.1.3 Eligible actions: actions for which an application may be made

A DETAILED SPECIFICATION OF ACTIONS FOR EACH COMPONENT IS GIVEN IN THE SECTION 2.1.6

Duration

The duration of an action may not exceed 18 months.

IMPORTANTFinal report has to be submitted not more than 30 days after the completion of the project activities. Action must be carefully planned to meet the final deadline for full completion of the action on 31 July 2007, including the submission of the final report. The applicant should be aware of the requirements and possible implications for the duration of the procedures (e.g. preparation and approval of a design, issue of required permissions, procurement of services, supplies and works if applicable, period for constructions, etc.)

Sectors or themes

3 The only exception to the eligibility rules stated above applies to SMEs as partners in cases where these provide in-company training (see details in Component HRD – Local Initiatives for Employment and Employability)

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The Pilot Integrated Investment Scheme will provide support to successful projects under the following components:

Component 1: Business related infrastructure

Component 2: Human Resource Development -Local Initiatives for Employment and Employability

Component 3: Integrated support to tourism development

Component 4: Investment to Support Conditions and External Environment for Productive Sector

A detailed description of each component is given in the section 2.1.6

Location

Actions must take place in Bulgaria, in the North East NUTS II Planning Region, on the territory of the following districts: Varna, Dobrich, Shoumen, Razgrad, Silistra and Targovishte.

Type of actions


The actions are specific for the different components:

The Business Related Infrastructure component will support municipal investment in physical infrastructure serving business sites/areas thus improving the environment for operation of existing businesses and attracting new ones.

The HRD component “Local Initiatives for Employment and Employability” focuses on local, relatively small-scale activities, responding to need, complementary to national / sectoral interventions, and undertaken by regional or local actors - municipalities and non-profit NGOs.

The Integrated Support to Regional/Local Tourism component of the Grant Scheme will support investment in physical infrastructure (basic tourism), in improving conditions and external environment for the tourism sector as well as in human resources development activities required to carry out project activities and sustain its results.

The Investment to Support Conditions and External Environment for Productive Sector Component will support projects that offer support services to SMEs in the productive or traded services sectors, specifically to either Start-Ups or Existing Companies.

The following types of action are ineligible:

individual sponsorships for participation in workshops, seminars, conferences, congresses;

individual scholarships for studies or training courses;

any action of commercial nature generating profit for the grant applicant or/and the partner(s)

actions which fall within the general activities of competent state institutions or state administration services, including local government

actions which include financing of routine activities of local authorities, especially in terms of recurrent expenditures;

actions that have started before signing of the grant contract;

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Number of proposals and grants per applicant

An Applicant may submit only one proposal for only one component of the Pilot Integrated Investment Scheme.

An Applicant may be involved in only one proposal as partner.

An Applicant may be awarded only one grant under this Call for Proposals

2.1.4 Eligibility of costs:

Only “eligible costs” can be taken into account for a grant. These are detailed below. The budget is therefore both a cost estimate and a ceiling for "eligible costs". Note that the eligible costs must be based on real costs, not lump sums (except for travel and subsistence costs and indirect costs).

Recommendations to award a grant are always subject to the condition that the checking process which precedes the signing of the contract does not reveal problems requiring changes to the budget. The checks may give rise to requests for clarification and may lead the contracting authority to impose reductions.

It is therefore in the applicant's interest to provide a realistic and cost-effective budget.

Eligible direct costs

A DETAILED SPECIFICATION OF COSTS FOR EACH COMPONENT IS GIVEN IN THE SECTION 2.1.6

To be eligible under the call for proposals, costs must:

be necessary for carrying out the action, be provided for in the contract annexed to these Guidelines and comply with the principles of sound financial management, in particular value for money and cost-effectiveness;

have actually been incurred by the beneficiaries or their partners during the implementing period for the action as defined in Article 2 of the Specific Conditions, whatever the time of actual disbursement by the Beneficiary or a partner; this does not affect the eligibility of final audit costs;

be recorded in the Beneficiary's or the Beneficiary's partners' accounts or tax documents, be identifiable and verifiable, and be backed by originals of supporting documents.

Subject to these conditions and with appropriate compliance with contract-award procedures, eligible direct costs include:

the cost of staff assigned to the action4, corresponding to actual salaries plus social security charges and other remuneration-related costs; salaries and costs must not exceed those normally borne by the Beneficiary or his partners, as the case may be;

travel and subsistence costs for staff taking part in the action, provided they do not exceed those normally borne by the Beneficiary or his partners, as the case may be; any flat-rate reimbursement must not exceed the scales laid down by the Bulgarian Regulation on business trips in the country (State Gazette No11/1987, last amended in SG No40/1999);

the cost of purchasing equipment (new or used) and services, provided they correspond to market rates;

the cost of consumables and supplies;

subcontracting expenditure;

costs related to supervision of works;

costs arising directly from the requirements of the contract (dissemination of information, evaluation specific to the action, audit, translation, printing, insurance, etc.) including financial service costs (in

4 In case of non – civil servants municipal staff assigned to perform an action, his/her involvement in the project is to be arranged on the basis of an assignment contract or an annex to his/her labour contract. In such a case the action related relevant costs of the respective servant will be considered as eligible.

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particular the cost of transfers and financial guarantees).

Each applicant is obliged to foresee in the action budget breakdown costs for an external certified audit proportional to the overall costs of the project but not exceeding 1 000 EUR.

Ineligible costs

The following costs are not eligible:

debts and provisions for losses or debts;

interest owed;

items already financed in another framework;

purchases of land or building, except where necessary for the direct implementation of the action, in which case ownership must be transferred to the final beneficiaries at the end of the action;

currency exchange losses;

penalties and fines;

taxes, including VAT, unless the Beneficiary (or the Beneficiary’s partners) cannot reclaim them and the applicable regulations authorize coverage of taxes.

Eligible indirect costs (overheads)

A lump sum not exceeding 7% of the direct eligible costs of the action may be claimed as indirect costs to cover the administrative overheads incurred by the Beneficiary for the action.

Indirect costs are eligible provided that they do not include costs assigned to another heading of the contract budget.

Indirect costs are ineligible if the Beneficiary receives in other respects an operating grant from the European Commission.

In case of “indirect cost” the applicant will be also asked to specify this item in greater detail in order to provide the CA with transparent administrative costing. Administrative costs as specified in the BUDGET under the heading 7. Administrative costs should be understood as “overhead costs” directly related to the implementation of the action.

Contributions in kind

Any contributions in kind made by the Beneficiary or the Beneficiary’s partners, which must be listed separately at Annex B, do not represent actual expenditure and are not eligible costs. Such costs will not be treated as co-financing by the Beneficiary.

However, the Beneficiary must undertake to make such contributions as stated on the application form if the grant is awarded.

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2.1.5 Instructions for presentation of the Annex B - Budget

IMPORTANTPlease use Excel spreadsheet.

The budget must be presented in accordance with Annex B of the Application form.If you wish to give additional budget breakdown, the information should be provided by inserting extra rows (sub-items) for clarity. Explanations given in sub-annexes to the budget table should be avoided.

A. Human Resources

1.1 and 1.2. SalariesExamples of administrative staff are: project accountant, secretary. Examples of technical staff are project leader, coordinator, consultant involved in performing the core activities under the action. The number of staff envisaged should ensure cost effectiveness.

If involvement of the staff in the action is of 6 calendar months or more, salaries for this staff shall be budgeted in man-months.

If the involvement of the staff in the action is less than 6 calendar months, salaries for this staff shall be budgeted in man-days or man-hours, as appropriate. The fees should be in line with current market rates.

Please specify the role of the expert (action coordinator, senior/junior consultant/expert) under budget categories 1.1. and 1.2.

1.3 Per diemsThese include travel costs for missions over 200 km distant from the base of operation, overnight stay and meals.

Per Diems (daily allowances) for local staff are to be based on the official rates published in the Bulgarian Decree for Missions in the Country or the Degree for Missions Abroad.

Per diems for international staff may not exceed the EU rates as published by the European Commission on the web-site:

http://europa.eu.int/comm/europeaid/perdiem/index_en.htm

2. Travel costs

2.1. International travel: please specify the unit cost (usually tickets; for car travel the unit can be the km). Please note that air tickets must be economy class.

2.2. Local travel: please specify the means of transport (rented car, coach etc) and choose the most appropriate unit (km, day etc).

3. Equipment and supplies Equipment costs should include the cost of transports and installation. Only equipment that is strictly

necessary for the implementation of the project and will remain the property of the partners/beneficiaries can be included in the action budget.

Please note that you will be required to procure equipment using competitive methods in compliance with Annex IV.

3.1. Car rent: a car could be rented for the needs of project implementation. The unit rate should be stated in days/weeks/months. Purchase of a car could be accepted only if purchase costs are less than rental costs.

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http://europa.eu.int/comm/europeaid/perdiem/index_en.htm

3.2. Furniture and computer equipment: The expenditure should be fully justified in the Application Form (item 1.7).

3.3. Others: to be duly specified and justified

4. Local office costs: Expenditure in this item is considered eligible if an office is to be rented especially for the action. There should be no duplication between these costs and those budgeted under item 8 of the budget breakdown.

5. Other costs and services

5.1. Publications and studies: Publications are: print and advertising materials (e.g. brochures, leaflets, catalogues), web-sites,

multimedia presentations, etc.

Give the total budget per document including costs for editing, translation, printing, mailing, etc. Only expenses deriving from subcontracting activities could be included under the specific budget line.

The expenditure for the publications should be fully justified in the application form (item 1.7) and be broken down into sub-items (not lump sums) to provide clarity.

5.2. Conferences/ seminars For each event please provide separate budget sub-items which include as appropriate: the rent of

venue, rent of equipment, materials, translators and interpreters, meals (if not covered by the daily allowances).

The fees in man-hours of trainers, speakers, lecturers, if the latter are not core staff for the action and their remuneration is not budgeted under “Salaries”

Only expenses deriving from subcontracting activities could be included under the specific budget line.

6. OthersWorksFor each refurbishment action detailed calculations have to be provided based on the draft working plan.

8. Administrative Costs

According to PRAG regulations these costs should be either specified under the respective headings of the budget template (e.g. 4: Local office/Action costs), or specified under the administrative costs (budget heading No 8).

The usual administrative costs would be costs directly related to the use of an office space/ other premises for the action, e.g.:

Office Rent

Office Supplies (Consumables)

Heating, Lighting, other energy costs

Telephone, fax, internet

Copying, printing, etc.

Travel, translation, interpretation are NOT considered administrative costs.

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2.1.6 Description of Grant Scheme’s components and components’ specific rules

2.1.6.1 Business Related Infrastructure

IMPORTANT

The section provides important information specific to the Business related infrastructure component of the Grant Scheme. It is to be read along with the general rules and requirements as presented in above in section 2.1.1-2.1.4.

2.1.6.1.12.1.6.1.1 BackgroundBackground of Business Related Infrastructure component of Business Related Infrastructure component

Despite the substantial contribution of the NE region to the national economy and its relatively diversified industrial structure, the economic development of the NE region is problematic with a GDP per capita 15% lower than the national average, over-representation of the agrarian sector and the highest unemployment level in the country. Almost all development indicators point up significant differences between the more developed district of Varna and the remaining parts of the region. One of the reasons for this unfavorable situation is disparity in infrastructure servicing the needs of the businesses in the respective parts of the Planning Region.

Infrastructure counts amongst the fundamental components of economic activity and both the availability and quality of the respective services strongly affect competitiveness of individual enterprises and investment decisions. The increased public investment in infrastructure results in increased rates of return on private capital, higher productivity and higher private investment— all of which increase the rate of wealth creation, the pace of regional development and overall economic and social cohesion.

Relatively developed infrastructure networks (roads, telecommunications, power, etc.) in the region contrast with their lack of maintenance. In some cases incompletion of infrastructure at local level, creates an unfavorable environment for development (difficult access, gaps in utilities, inefficient operation and increased costs of businesses, etc.) and ultimately reduces the competitiveness and attractiveness for investment. Although there exist many established business locations in the NE region (industrial zones and other concentrations of enterprises), infrastructure of these sites is often obsolete and not well-maintained.

Infrastructure development needs are huge (as in all Bulgarian regions) and could not be addressed by the limited resources of the current Grant Scheme. In addition other programmes address specific infrastructure needs (ISPA, SAPARD). Therefore this Grant Scheme focuses on support to the integrated improvement of key elements of business related infrastructure in a limited number of business (industrial) locations where addressing gaps in local business related infrastructure could achieve a significant impact on local and regional economic development.

2.1.6.1.22.1.6.1.2 ObjectivesObjectives of Business Related Infrastructure component of Business Related Infrastructure component

The component’s aim is to enhance the competitiveness of the NE region’s business and improve its environment by supporting investment in developing key elements of municipal business related infrastructure.

The specific objectives of the component “Business related infrastructure” are: To improve the access of business sites/areas and their connection to the main road infrastructure To improve the functioning of business sites/areas by developing their utilities (utility infrastructure)

2.1.6.1.32.1.6.1.3 Type of eligible actionsType of eligible actions of Business Related Infrastructure component of Business Related Infrastructure component

This component of the Grant Scheme will support municipal investment in physical infrastructure serving business sites/areas thus improving the environment for operation of existing businesses and attracting new ones.

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To be eligible projects should:

be directly focused on business sites/areas and well justified by the needs of businesses

include works directed only to public (municipality or state-owned) property

Priority will be given to projects, that:

Are directed at existing industrial sites or areas of higher concentration of businessesNote: Applications involving projects over 100,000 EUR should justify this by filling out a Demand

and Feasibility Assessment Form - annex G;

Have clearly demonstrated impact on business locations

Are integrated, i.e. entail more than one type of infrastructure thus achieving synergy

Bring benefits to more than one municipality

Demonstrate consistency with a specific objective, priority or measure of an approved recent regional or local strategy/plan

The actions that may be financed under this component may include:

Construction, reconstruction and rehabilitation of roads and related road infrastructure improving access to business locations;

Rehabilitation, reconstruction and extension of existing water supply and sewerage systems related to/or within the business areas;

Installation of small waste water treatment facilities and local waste water treatment installations (on first grade) related to the operation of industrial areas;

Installation of telecommunication infrastructure needed for improvement/further development of business sites and locations;

Supportive small scale infrastructure within the business area (e.g. lighting, pavements, green areas etc)

Supervisory services (related to the construction works);

Although integration of activities from the list above is allowed and encouraged, their combination should be logical and represent appropriate synergies. All activities should contribute to improvement of business environment. Support will be provided for coherent projects (i.e. the project must be focused properly, with clearly defined aims and the activities proposed being necessary to achieve these aims) and not for clusters of miscellaneous unrelated activities.

The projects must meet all statutory, construction and environmental requirements (see also section 2.1.7)

The following actions are specifically ineligible under this component:

Actions aimed at privately owned business and facilities;

Actions aimed at tourism sites (as they are eligible under a separate component of this grant scheme);

Preparatory studies, design or other preparatory activities for works carried out within the project.

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2.1.6.1.42.1.6.1.4 Size of grantSize of grant under Business Related Infrastructure component under Business Related Infrastructure component

Any grant awarded under this component must fall between the following minimum and maximum amounts:

Minimum amount: 50 000 EUR Maximum amount: 300 000 EUR

In addition, no grant may exceed 90 % of the total eligible costs of the action (see also 2.1.4.

above). The balance must be financed from the applicant’s or partners’ own resources, or from

sources other than the European Community budget.

The minimum co-financing required is 10% of the total cost of the action. Co-financing is to be provided by the beneficiaries in order to demonstrate local commitment. Contribution in kind is not allowed. No resources, which have been assisted by Phare or other EC support, may be taken into account as own contribution. Furthermore, project proposals already financed by other Phare or EU source may not apply.

2.1.6.1.52.1.6.1.5 Eligibility of ApplicantsEligibility of Applicants under Business Related Infrastructure component under Business Related Infrastructure component

In order to be eligible for a grant, applicants must be municipalities from the North-East region.

2.1.6.1.62.1.6.1.6 PartnershipPartnership under Business Related Infrastructure component under Business Related Infrastructure component

Applicants may act individually or in consortium with partner organizations. However preference will be given to partnerships.

Eligible partnersMunicipalities or consortiums of municipalities.

AssociatesAssociates could be, inter alia, Regional Associations of municipalities, public utilities providers, regional branches of the Road Agency, SMEs located in the respective business areas, Chambers of Commerce, Branch Associations.

2.1.6.1.72.1.6.1.7 DurationDuration under Business Related Infrastructure component under Business Related Infrastructure component

The duration of an action under this component may not exceed 18 months.

Within the duration of the action the construction itself cannot exceed 14 months. The applicant should take into consideration the duration of all the necessary procedures for the implementation of its project, such as: design, approval of design, issue of permissions, procurement of works, approvals following the completion of the construction, etc.

2.1.6.1.82.1.6.1.8 Eligible costsEligible costs under Business Related Infrastructure component under Business Related Infrastructure component

Eligible costs specific to the Business related infrastructure component include:

the cost of staff assigned to the action, corresponding to actual salaries plus social security contributions and other remuneration-related costs; salaries and costs must not exceed those normally borne by the Beneficiary or his partners;

Costs for construction works for reconstruction/rehabilitation or construction of roads; Costs of reconstruction/rehabilitation of water and sewerage systems and installment of small waste

water treatment facilities; Costs related to other infrastructure improvements in accordance with the technical and detailed design; Costs for supervision of works;

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Costs of supplies, directly related to the works;

2.1.6.1.92.1.6.1.9 Ineligible costsIneligible costs under Business Related Infrastructure component under Business Related Infrastructure component

The following costs in the specific context of the Business related infrastructure component are ineligible: Procurement of Services (with the exception of supervision) Procurement of supplies, not directly related to the works (as office equipment, vehicle, etc.); Costs of preparatory studies, Preliminary Works Design and/or indicative priced Bill of Quantities or other

preparatory activities for works carried out within the project;

2.1.6.2 Human Resource Development - Local Initiatives for Employment and Employability

IMPORTANT

This section provides important information specific to the human Resources Development component of the Grant Scheme. It is to be read along with the general rules and requirements as presented above in sections 2.1.1-2.1.4.

2.1.6.2.12.1.6.2.1 BackgroundBackground of Human Resource Development component of Human Resource Development component

The close down of certain (strategic) industries and sectors in NE region has resulted in job losses and at present the region ranks 2nd in unemployment among the six planning regions (18.6% in 2003 compared to the national average of 14.2%). Employment disparities between districts within the Planning Region are significant. The unemployment rate in Varna district is lower than the national average figure by about 3 percentage points. However, in all other districts the unemployment is higher (in Targovishte district where the unemployment is more than two times higher than the national average).

The most disadvantaged groups relating to the labour market are youths (including those with no work experience), women (especially the returnees onto the labour market), long-term and low-qualified unemployed. About 30% of the total population in the NE belongs to minority groups: the region’s Turkish minority is nearly twice the national average in size and the share of Roma is one of the highest nationally. These groups also tend to have low levels of qualification and a series of motivational and other barriers impede their entry into the labour market. Disparities exist between the qualification of the labour force and the needs of the labour market (in most of the districts the number of unemployed per vacancy is higher than the average figure for the country).

The high unemployment rate and the existing discrepancy between supply and demand for certain qualifications on the local labour market require active and adequate training and re-qualification of the labour force in the region. The labour demand in the region is mainly orientated towards manufacturing industry, tourism, construction, transport, agriculture5. The training and re-qualification therefore should be predominantly focused on these main areas (except agriculture) 6 where the demand and job opportunities exist.

The educational and training infrastructure in the region is well-developed, although often lacks required modern equipment. They count for about 19% of all such establishments nationally. Seven institutions for higher education are located in the region. Local training organizations have capacity and skills for provision of the required training and re-qualification.

2.1.6.2.22.1.6.2.2 ObjectivesObjectives of Human Resource Development component of Human Resource Development component

5 Employment Agency’s information 6 As far as vocational training related to agriculture is included as separate measure under SAPARD, it is not a subject of financing under the present Grant Scheme.

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The component’s aim is to promote initiatives for employment and employability for the achievement of balance between labour demand and supply on the regional/local labour market.

The specific objectives of the component are:

To contribute to adapting training to the needs of the sustainable developing sectors in the region (manufacturing industry, tourism, construction, transport);

To improve the possibilities of employment and provide skills and competencies for registered unemployed and disadvantaged groups (youths, long-term and low-qualified unemployed, women, etc.), that meet regional/local labour market needs;

To enhance skills of the employed; To promote job creation in the region;

2.1.6.2.32.1.6.2.3 Type of eligible actionsType of eligible actions under Human Resource Development component under Human Resource Development component

The HRD component focuses on local, relatively small-scale activities, responding to need, complementary to national / sectoral interventions, and undertaken by regional or local actors - municipalities and non-profit NGOs mainly. These should be complementary to existing broader provision or at any rate meet a clear gap in provision.

All project applications should clearly justify demand for activities and results and should provide both theoretical and practical training.

The Grant Scheme will support projects with mainly “soft” activities - training and re-qualification, e.g. provision of skills and competencies, necessary for adapting to local labour market needs, for the disadvantaged groups to promote social integration and improvement in skills of the employed in the priority economic branches in the region. “Hard” activities – construction, reconstruction or other related investments, etc - are not eligible. Provision of equipment will be limited (up to 10% of the total eligible costs).

Actions that may be financed under the Human resources development component include:

a) Preparation and implementation of short-term and mid term training and/or re-qualification programmes in specific skills (3-6 months) in one or more of the indicated priority branches: tourism, construction, food-processing industry, textile and tailoring industry, wood-processing industry, machine-building industry, transport7 for employed and registered unemployed

b) Preparation and implementation of training programmes/courses for foreign language and computer skills of employed and unemployed, registered in the labour offices (on the basis of real demand )

In other areas training will be promoted only in cases where the applicant proves the local/regional need for such training by agreements with employers or local labour office.

Simultaneous provision of some supporting activities will be encouraged, e.g.: preparation, organization and implementation of motivation courses and counseling; job mediation and job creation; development and implementation of training programmes worked out in a modular system, according to

labour market needs; training of trainers and counselors; publicity activities.

Priority will be given to: Applicants who guarantee job placement (paid employment) to at least 25% of the trained unemployed

for a period of minimum six months following the training (this will be proofed by a letter of intention as supporting document, see section 2.2.1)

Actions providing benefits for more than one municipality Actions carried out by a consortium involving a local training institution (for example, Vocational

Education School) and a business enterprise (to achieve sustainability of results)

7 Because of potential overlapping with other Programmes (SAPARD) and ongoing PHARE Grant Schemes (Alternative employment), training in agriculture and entrepreneurship activities are not eligible

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Projects should be designed in compliance with relevant legislation (see section 2.1.7).

The following actions are ineligible: construction or reconstruction of buildings or other infrastructural investments programmes providing only theoretical or only practical training

2.1.6.2.42.1.6.2.4 Size of grantsSize of grants under Human Resource Development component under Human Resource Development component

Any grant awarded under this component must fall between the following minimum and maximum amounts:

Minimum amount: 20 000 EUR Maximum amount: 50 000 EURIn addition, no grant may exceed 90 % of the total eligible costs of the action (see also 2.1.4.




2.1.6.2.52.1.6.2.5 Eligibility of ApplicantsEligibility of Applicants under Human Resource Development component under Human Resource Development component

In order to be eligible for grant applicants must be: Municipalities (groups of) from the NE region; NGOs (non-profit): local / regional branch organizations, associations, chambers of commerce; Public vocational schools and vocational colleges (established under the Vocational Education and

Training Law); Local / regional training institutions, certified by the National Agency of Vocational Education and

Training (NAVET).

2.1.6.2.62.1.6.2.6 PartnershipPartnership under Human Resource Development component under Human Resource Development component

Applicants may act individually or in consortium with partner organizations. However preference will be given to partnerships. Partners must satisfy the same general eligibility criteria as applicants (with the exception of the enterprises).

Eligible partners Municipalities (groups of) from the NE region; NGOs (non-profit): local / regional branch organizations, associations, chambers of commerce; Public vocational schools and vocational colleges (established under the Vocational Education and

Training Law); Local / regional training institutions, certified by the National Agency of Vocational Education and

Training (NAVET); Public and/or private enterprises ( provision of in-company training)

The opportunity to participate in the organized training will be given to the employees (workers) from the enterprises that provide in-company training. No direct investment in enterprises is allowed.

Please, note that either the Applicant or the (one) Partner/s has to be a training organization, certified by the National agency of Vocational Education and Training (NAVET). AssociatesLocal labour offices or other bodies and organizations can be involved as associates, in order to provide and disseminate information.

2.1.6.2.72.1.6.2.7 DurationDuration of Human Resource Development component of Human Resource Development component

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2.1.6.2.82.1.6.2.8 Eligible costs Eligible costs under Human Resource Development componentunder Human Resource Development component

Eligible costs specific to the Human resource development component include: the cost of staff assigned to the action, corresponding to actual salaries plus social security contributions

and other remuneration-related costs; salaries and costs must not exceed those normally borne by the Beneficiary or his partners;

Payments to trainees (workers, employees), participating in training (Euro 130 per month maximum); Scholarships for unemployed trainees (Euro 75 per month maximum); Costs of consumables, including training materials; Rental of premises for training; Provision of equipment, necessary for the implementation of the project - up to 10% of the total eligible

costs;

IMPORTANT

The payment of trainees (130 Euro) should not exceed the amount of the salary the employee received before his/her participation in training.The above mentioned maximum amount of payment does not include the amount of insurance that the employers are obliged to pay.These payment are payable only for the time of the training.

2.1.6.2.92.1.6.2.9 Ineligible costsIneligible costs under Human Resource Development component under Human Resource Development component

The following costs in the specific context of the Human Resource Development component are ineligible: Works

2.1.6.3 Integrated Support to regional/local tourism

IMPORTANT

This section provides important information specific to the integrated Support to regional/local Tourism component of the Grant Scheme. It is to be read along with the general rules and requirements as presented in above in section 2.1.1-2.1.4.

2.1.6.3.12.1.6.3.1 BackgroundBackground of Integrated Support to regional/local tourism component of Integrated Support to regional/local tourism component

The NE region has the most developed and dynamic tourism industry among all NUTS II regions in Bulgaria and tourism is perceived to be a tool to boost the development of the region as a whole. However national wide problems in tourism are typical also for the NE region and even more pronounced: extreme levels of concentration on the Black-Sea coast and dependence on the sea recreation product with related problems of over-development, pressure on infrastructure and carrying capacity risks, high seasonality, limited activity opportunities for tourists, high level of concentration of benefits of tourism development and under-use of the existing potential of the remaining part of the region. The reasons for this relatively problematic picture are diverse and include underdevelopment of basic and tourism infrastructure, the structure of the tourism industry itself (dominated by SMEs with limited means to influence infrastructure development and to carry out independent marketing activities), marketing activities focused mainly on sea resorts, limited offer of regional wide products and links between the sea and the internal part, lack of regional wide tourism development strategies and structures (although tourism is perceived as priority in most municipal and district plans and strategies). On the other hand, the interior of the Region offers existing and potential attractions. The existing tourism demand for secondary trips on the coast is a unique opportunity relative to other regions.

In order to harness tourism in an optimal manner to the region’s economic growth, employment, and sustainable development, a more integrated and regional wide approach is needed. This should focus on wider distribution of tourism development and its benefits to the “non-coastal” areas that contribute to diversification of offer to those tourists staying in sea resorts. It will reduce seasonality and should target more effectively national and international markets. This approach corresponds to the tourism and regional

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development policy as articulated in existing policy, strategic and programming documents (incl. the Regional Operational Programme 2004-2006).

Consistent with the integrated nature of this Grant Scheme, this component seeks especially to assist those tourism actors who envisage a comprehensive solution to their needs, and aims to facilitate this approach even at project level. Therefore the component does not focus on the development of specific types of products (these should be identified and justified by applicants), but rather on the integrated and regional approach to tourism. To this end, projects are encouraged that involve a) investment in basic and tourism infrastructure that is complemented by information, marketing and promotion OR b) projects that involve mainly soft activities (information, marketing and promotion, studies, etc.) complemented by required investment in infrastructure and equipment.

Several Phare funded projects and Grant Schemes have already addressed tourism development needs particularly in the NE region: Phare 2001 “Roads access to tourism sites” and “Development of Bulgarian cultural tourism”, Phare 2002 “Development of Ecotourism in Bulgaria”, Phare 2003 “Water Supply Improvement in areas with Tourism development Potential”. However they are not only limited in terms of resources (thus able to fund only a limited number of projects in the NE region), but also have been specifically focused only on single elements of basic infrastructure or on specific types of tourism products, mainly local in their scope.

2.1.6.3.22.1.6.3.2 ObjectivesObjectives of Integrated Support to regional/local tourism component of Integrated Support to regional/local tourism component

The component’s aim is to enhance the region’s tourism competitiveness and the contribution of tourism to regional development by extending the range of tourism products and the geographical and seasonal distribution of tourism.

The specific objectives of the component “Integrated support to regional/local tourism” are: To improve conditions to attract and serve visitors of areas/municipalities with tourism development

potential through locally focused projects supporting development of basic and tourism infrastructure, attractions and promotion

To achieve better coordination and management of tourism and more efficient marketing focusing on relevant products and services of regional importance and scope, incl. linking sea-coast and interior of the NE region through regionally focused projects supporting regional products and services of benefit for several municipalities and districts (marketing & promotion, studies, information/reservation systems and complementary infrastructure)

2.1.6.3.32.1.6.3.3 Type of eligible actionsType of eligible actions under Integrated Support to regional/local tourism component under Integrated Support to regional/local tourism component

The Integrated Support to Regional/Local Tourism component of the Grant Scheme will support investment in physical infrastructure (basic, tourism), that improves conditions and external environment for the tourism sector as well as human resources development activities required to carry out project activities and sustain its results. Grants will support only non profit making activities, incl. development/ improvement of facilities and/or attractions. The component will not support private enterprises but rather the creation of an environment that could facilitate private investment.

To be eligible projects should be: directly focused on tourism, articulated as visits of non-residents (external for the respective municipality

as a minimum requirement) with economic impact (i.e. as economic sector bringing in revenues in the municipality/ district);

with works directed to public (municipality or state-owned) property;

Priority will be given to projects, that: are directed at sites and areas with potential to develop tourism, interpreted as the proven or

potential ability of the area to create a complete (comprehensive) tourism product (or to be included in such a product), to attract visitors and to develop economically viable tourism.

Note: Applications involving projects over 100,000 EUR should justify the tourism development potential and the importance of the area by an Assessment of Demand and Feasibility compliant with the format provided in annex H;

are implementing integrated and regional approach based on sound development logic and

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demonstrate regional rather than local impact (i.e. provide benefits to more municipalities and districts – either through creation/improvement of local products to be marketed regionally or through development of regional products and services with required local infrastructure improvements when needed;

Complement existing attractions, facilities and tourist activities in the area and use the potential for creation of groups of mutually complementary tourism attractions and facilities ("clusters");

are directed at internal areas, municipalities or districts rather than at well developed sea-side resorts and complexes or facilitating links between seaside resorts and internal tourist areas;

provide follow-up to other completed tourism, related projects; Have clearly demonstrated consistency with a specific objective, priority or measure of an approved

recent regional or local strategy/plan;

IMPORTANT

Note that all project proposals should include minimum 50% of the eligible costs for works (actions of the type presented in p. a-e) and non-infrastructure actions (of the type presented in p. f-i).

The actions that may be financed under this component may include (specific activities provided under each type of actions should be treated as examples and not as an exhaustive list):a) Reconstruction, rehabilitation or extension of access roads and related road infrastructure to sites of

tourism interest/tourist attractions;b) Reconstruction, rehabilitation or extension of utilities related to the use of attractions and development of

tourist sites/areas/resorts, e.g. (water supply, sewerage, electric power, telecommunication equipment incl. internet access), construction, reconstruction or renovation of infrastructure improving the environment and functioning of attractions (car parks, pavement, landscaping, green areas, park facilities, toilets, lighting, small waste collection facilities, etc.);

c) Construction, reconstruction, renovation/upgrading and extension of walking paths, hiking, riding and bicycling trails, picnic places, interpretation facilities, non-profit making cultural or natural attractions as part of a local tourism product (i.e. museums, historic buildings, ethnography complexes, cultural centers), non-profit making children, leisure and sport facilities, incl. water sport and activities infrastructure on rivers and internal reservoirs (outside sea resorts), etc.

d) Reconstruction/refurbishment and/or equipment of tourist information/visitor centers (incl. Information Technology (IT) hardware and software)

e) Signposting of roads, walking, cycling and hiking paths/trails, areas around attractions, posters, navigation systems, information screens, etc.;

f) Developing, printing and distributing maps and guidebooks for routes and areas, handbooks with details on facilities and services offered in the area

g) Organization of events (as tourist attractions), e.g. festivals, outdoor events, sport competitions, folklore events, presentation of local/regional traditions, cuisine, etc with regional and national importance. presentation of crafts, exhibitions as well as development of interpretation programmes

h) Promotion activities, incl. preparing promotional materials like brochures, posters, maps, post-cards etc.8

and distributing them to travel agents, tour operators, hotels in the region, consumers etc.; developing audio-visual materials and multi-media products; developing web-sites; organization of and participation in regional and national tourism fairs and exhibitions, test trips, inviting and hosting visits by travel agents, tour operators, travel writers and photographs, journalists, e-marketing, etc.

i) Regional product development, marketing and planning activities directed at group of municipalities and/or districts like market surveys, inventory of attractions, activities and services, data-base development, developing information & reservation systems, e-marketing, dissemination of relevant information to local/regional tourist businesses, concepts for regional (regional wide) tourism products, branding and introducing uniform systems of marking, tourism development strategies, etc.

A project proposed in an application should entail a combination of some of the above-mentioned activities that are complementary and based on sound development logic. Support will be provided for coherent projects (i.e. the project must be focused properly, with clearly defined objectives and results and the activities proposed being necessary to achieve these objectives and results) and not for clusters of miscellaneous unrelated activities.

The projects must meet all statutory, construction and environmental requirements (see also section 2.1.7)

8 incl. design, printing, translation, copy-writing etc.

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The following actions are specifically ineligible under this component: actions aimed at privately owned attractions and facilities preparatory studies, design or other preparatory activities for works carried out within the project Accommodation and catering facilities Facilities used mainly for municipal purposes and by local people (e.g. schools located in historic

buildings) Participation in international tourism fairs and exhibitions (abroad) Commercial advertising activities for individual enterprises Comprehensive travel guides and general information books

2.1.6.3.42.1.6.3.4 Size of grantsSize of grants under Integrated Support to regional/local tourism component under Integrated Support to regional/local tourism component

Any grant awarded under this component must fall between the following minimum and maximum amounts:Minimum amount: 50 000 EUR Maximum amount: 300 000 EURIn addition, no grant may exceed 90 % of the total eligible costs of the action (see also 2.1.4.




2.1.6.3.52.1.6.3.5 Eligible applicantsEligible applicants under Integrated Support to regional/local tourism component under Integrated Support to regional/local tourism component

In order to be eligible for a grant, applicants must be: Municipalities Associations of municipalities Regional, local or branch tourist organizations (according to Tourism Act) Chambers of commerce, regional development agencies

2.1.6.3.62.1.6.3.6 PartnershipPartnership under Integrated Support to regional/local tourism component under Integrated Support to regional/local tourism component

Applicants may act individually or be in consortium with partner organizations. However preference will be given to partnerships. Especially for regional wide projects consortiums of municipalities leaded by one of them will be encouraged.

Partners must satisfy the same general eligibility criteria as applicants.

Eligible partners: Municipalities Associations of municipalities Regional, local or branch tourist organizations (according to Tourism Act) Chambers of commerce, regional development agencies

AssociatesAssociates could be, inter alia: district authorities, state agencies (regional branches of), other NGOs that do not meet the criteria for applicants/partners (e.g. environmental and cultural organizations), Universities, Museums, private companies9.

9 especially in case of public-private marketing initiatives (although private enterprises are not eligible applicants, they are providers of products and services, which are part of the promotional activities of the public sector organisations and could both support and benefit from this activities) or will benefit indirectly by the action and respectively could support

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2.1.6.3.72.1.6.3.7 DurationDuration under Integrated Support to regional/local tourism component under Integrated Support to regional/local tourism component


Within the duration of the action the construction itself cannot exceed 12 months. The applicant should take into consideration the duration of all the necessary procedures for the implementation of its project, such as: design, approval of design, issue of permissions, procurement of services, supplies and works, and - if applicable - approvals follow the completion of the construction, etc.

2.1.6.3.82.1.6.3.8 Eligible costsEligible costs under Integrated Support to regional/local tourism component under Integrated Support to regional/local tourism component

Eligible costs specific to the Integrated Support to Local/Regional Tourism component include:


Costs of construction/reconstruction works;

Costs of supervision for works;

Costs of equipment for TIC, info systems, attractions (e.g. museums);

costs for participation in tourism fairs, exhibitions (fees);

The following costs in the specific context of Integrated Support to regional/local tourism component are ineligible:

Costs of preparatory studies, Preliminary Works Design and/or indicative priced Bill of Quantities or other preparatory activities for works carried out within the project;

2.1.6.4 Investment to Support Conditions and External Environment for Productive Sector

IMPORTANT

This section provides important information specific to the Investment to Support Conditions and External Environment for Productive Sector component of the Grant Scheme. It is to be read along with the general rules and requirements as presented above in section 2.1.1-2.1.4.

2.1.6.4.12.1.6.4.1 BackgroundBackground of Investment to Support Conditions and External Environment for Productive of Investment to Support Conditions and External Environment for Productive Sector componentSector component

Economic development of the NE region is strongly dependant on performance of SMEs which account for most of the Gross Value Added in the region (with a share higher than the national average). SMEs, both start-ups and existing - face a wide range of problems. Gaps in management and entrepreneurial skills are especially critical and impede company growth and performance. In order to become more competitive SMEs in the NE region need to raise their productivity through more modern business processes, product development and management of human resources. In order to become competitive on Bulgarian and international market, their products have to respond to certain EU standards. All this requires significant support, incl. provision of support services.

However the provision of professional, credible well-structured support services is limited in the region – as it is throughout the entire country, and is immature as compared even to Cohesion Countries in the EU 15. By

the action.

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definition companies, especially start-ups, find it difficult to pay at market rates for necessary advice while the supply of quality services has been limited. However the region does possess chambers of industry, business incubators, regional development agencies and various other business intermediary organizations that should be well-placed to assist companies. The existence and development of appropriate services to business and of structures capable of designing and delivering such services effectively and professionally is essential if SMEs are to receive appropriate support.

This component will specifically focus on supporting quality and professional projects that themselves support start-ups and the development of existing companies.

2.1.6.4.22.1.6.4.2 ObjectivesObjectives of Investment to Support Conditions and External Environment for Productive of Investment to Support Conditions and External Environment for Productive Sector componentSector component

The aim of the component “Investment to Support Conditions and External Environment for Productive Sector” is to enhance company performance and competitiveness of business companies and to promote compliance to EU standards.

The specific objectives of the component “Investment to Support Conditions and External Environment for Productive Sector” are:

To increase necessary knowledge and skills, particularly among company management and key personnel, that impacts directly on their company’s performance;

To enhance company performance and productivity and promote compliance with relevant EU standards and rules;

To develop high standards in the design and delivery of relevant services to businesses that could be replicated elsewhere;

2.1.6.4.32.1.6.4.3 Types of eligible actionsTypes of eligible actions under Investment to support Conditions and External Environment under Investment to support Conditions and External Environment for Productive Sector componentfor Productive Sector component

To be eligible projects must:

Provide assistance to SMEs from the NE region in productive sector and tradable services (not retail or advisory/consultancy sectors);

Target the needs of Start-Ups or Existing Companies or both (In cases of both, the proposed support activities must be delivered through programmes distinct to each type of companies);

Propose activities that are part of a coherent, well-structured programme, implemented at least once over the project duration. These programmes must involve BOTH (a) a collective training programme AND (b) a more intensive and individual support to companies (termed below “company development programme”);

Give clear proof, in the application, of need and demand for services proposed relative to the needs of the regional or local economy and/or specific sectors or types of company10.

Shall use only professional consultants and trainers with proven relevant experience and qualifications at least for the company development programme. These must be active as business advisors for at least 3 years11;

Each programme must include at least 5 of the themes listed in the “Methodological recommendations” section below, selected from the appropriate lists for Start Ups or Existing Companies respectively . (Project applicants may include more themes if appropriate. Project applicants may include additional themes, on condition that they are relevant to the project and component objectives.);

10Applicants must include in their application a list [name, address, persons responsible, company register number] of at least 35% of the total number of companies envisaged for assistance. The list should be complemented by a signed statement of readiness to make a financial contribution to costs of its implementation from at least one-third of the proposed participants (in the list). [e.g.10 % of the total number of companies envisaged for assistance]11 CVs for all company support staff, whether for the horizontal programme or the company development programme must be included with the application. Cv(s) must follow the recognised format.

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Priority will be given to projects which: Foresee and plan for at least 15 companies in any collective training programme proposed and at least

10 for any proposed company development programme;

For start-up companies, foresee a company development programme involving at least 5 consultancy visits and no more than 7;

For existing companies, target potential export companies or those supplying or intending to supply to international companies;

For collective training programmes, foresee a system of validation of knowledge and skills acquired, especially for participants who will not also participate in a company development programme;

Propose that all companies that are the subject of the company development programme will also participate in the collective training activities;

The actions that may be financed under this component may include:

Design and delivery of programmes of collective training, seminars, workshops, etc. Design, delivery of programmes of individual company assistance (Company Development

Programmes);

Types of actions, which are ineligible:

projects asking for provision of direct financial support to private businesses;

projects which fail to address at least 5 of the themes for each programme proposed (as specified in the “Methodological recommendations” section below);

projects which fail to use professional consultants for company development activities;

isolated actions outside of the specified 2 types of specified programmes (collective training programme and company development programme);

2.1.6.4.42.1.6.4.4 Size of grantsSize of grants under Investment to Support Conditions and External Environment for under Investment to Support Conditions and External Environment for Productive Sector componentProductive Sector component2.1.6.4.52.1.6.4.5Any grant awarded under this component must fall between the following minimum and maximum amounts:

Minimum grant amount: 20 000 EUR Maximum grant amount: 100 000 EURIn addition, no grant may exceed 90 % of the total eligible costs of the action (see also 2.1.4. above). The balance must be financed from the applicant’s or partners’ own resources, or from sources other than the European Community budget. The minimum co-financing required is 10% of the total cost of the action. Co-financing is to be provided by the beneficiaries in order to demonstrate local commitment. Contribution in kind is not allowed. No resources, which have been assisted by Phare or other EC support, may be taken into account as own contribution. Furthermore, project proposals already financed by other Phare or EU source may not apply.

2.1.6.4.62.1.6.4.6 Eligible applicantsEligible applicants under Investment to Support Conditions and External Environment for under Investment to Support Conditions and External Environment for Productive Sector componentProductive Sector component

In order to be eligible for a grant, applicants must be:

Regional Associations; Branch Associations; Regional branches of Chamber of Commerce Regional Development Agencies; Universities;

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2.1.6.4.72.1.6.4.7 PartnershipPartnership under under Investment to Support Conditions and External Environment for Investment to Support Conditions and External Environment for Productive Sector componentProductive Sector component

Applicants may act individually or in consortium with partner organizations. However preference will be given to partnership-based projects.

Partners of applicants must satisfy the same eligibility criteria as the applicants themselves.

Eligible partners: Regional Associations; National Associations Chamber of Commerce Branch Associations; Regional Development Agencies; Universities.

AssociatesAssociates could be, inter alia: SMEs in productive sector and tradable services, regional branches of the SME support Agency, etc.

2.1.6.4.82.1.6.4.8 DurationDuration under Investment to Support Conditions and External Environment for Productive under Investment to Support Conditions and External Environment for Productive Sector componentSector component

Maximum duration of a project in months: 18 months

2.1.6.4.92.1.6.4.9 Eligible costsEligible costs under Support Conditions and External Environmental Environment for under Support Conditions and External Environmental Environment for Productive Sector component Productive Sector component

Eligible direct costs specific to the component Investment to Support Conditions and External Environment for Productive Sector will include:


Supplies – equipment necessary for delivery of programmes and courses up to 10% of the project total eligible costs;

Costs related to organization of workshops (room hire, refreshment etc);

Costs of consumables, incl. training materials;

Costs of subcontracted services provided by professional consultants and trainers;

The following costs in the specific context of the Investment to Support Conditions and External Environment for Productive Sector component are not eligible:

Costs of works;

NB! The applicant is notified that in case that it seeks to recuperate its co-finance (minimum 10% of total project costs) in the form of fees charged to individual companies for services offered, the received amount will be deducted from the eligible grant.

2.1.6.4.102.1.6.4.10 Methodological Recommendations for Programme Design under Investment to Support Methodological Recommendations for Programme Design under Investment to Support Conditions and External Environment for Productive Sector componentConditions and External Environment for Productive Sector component

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IMPORTANT

This section provides recommendation to applicants to the design of the proposed programmes.Advice given here is NOT obligatory for applicants: however it will be taken fully into account in assessing the quality of proposals.

Target Groups – those who benefit from the Proposed Activities

It is envisaged to mobilize business intermediate organizations and associated professional business advisors in the design and delivery of eligible support interventions to start-up and existing companies.

The targets groups to whom various proposed activities are addressed are:

Start up´s: the assumption is made that the services will be targeted at people who want to start their own business, but lack necessary knowledge regarding main practical challenges, risks tasks and how to address these;

Existing Companies: i.e. existing SMEs that are in the course of or about to undergo a significant change process to enhance performance or productivity, and require appropriate knowledge and assistance.

Types of Programme to be offered

As stated above in the section “Types of Eligible Actions” assistance must be offered through programmes of two types (Collective Training Programmes and Individual Company Development Programmes) for each type of companies (target groups). Methodological recommendations are given below with regard to the design of these programmes:

Collective Training Programmes: will be based on a needs-based structured programme of workshops open to several companies (recommended minimum 15 companies within one programme);

Individual Company Development Programmes: will target a sub-set of companies involved in the collective training programme. They will involve mainly individual support and visits to companies. They may also include some collective assistance to a small group of companies (for example in the same sector, in the form of coaching, mentoring or techniques of comparable effectiveness.);

It is recommended that Company Development Programmes should involve the following for each individual company: a company needs assessment, an agreed work plan with respective commitments for consultants and for the company with time-bound performance measurements or benchmarks, a review process and a final report addressed to the individual company.

It is recommended that project applicants propose effective internal monitoring and feedback systems covering the following: attendance/participation, programme performance against declared benchmarks and measurable outputs and satisfaction ratings among target groups.

As stated above in the section “Types of Eligible Actions”, each programme offered must include at least 5 of the themes set out below according to each target group of companies. In cases where the same or similar topic has been proposed for each target group (Start-ups and existing SMEs) it is assumed that the content and mode of delivery will be adapted to the specific requirements of the target group. As stated above the list is not exhaustive and allows other themes to be included in the training programme, if appropriate.

Themes for Development of Target Groups

Specific themes for Start Ups (at least 5 to be selected)

Key Business Legislation relevant to Start Ups Key Social and Employment Obligations for Employers

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Business Planning Financial Planning and Access to Credit Accounting Marketing Product Development Human Resource Management Business Communication Skills and Client Management Asset Management Information and Communications applications to company performance

Specific themes for Existing Companies (at least 5 to be selected)

Key Changes to Company Environment resulting from EU Accession (environmental legislation, banking and finance, State Aids, VAT etc);

Key Business Legislation relevant to SMEs (domestic, international, EU laws); Key Social and Employment Obligations for Employers; Business Planning; Financial Planning and Access to Credit; Accounting; International and domestic Marketing; Product Development and Innovation; Human Resource Management/Organizational Development; Business Communication Skills and Client Management; Standardization and Certification, Patenting, Licensing; Information and Communications applications to company performance; Doing business with and meeting requirements of international and multi-national companies; Public procurement law; Structural Fund support relevant to SMEs.

Scheduling of Activities

It is recommended that applicants should include in their activity schedule a mobilization period of not more than 12 weeks (and no more than one-quarter of total project duration) during which they are recommended to ensure:

publicity, recruitment and induction of companies to the collective training programme

adequate preparation of all business advisors, trainers or other support personnel to be used to assist companies

development of materials and tools (e.g. templates for feedback, internal monitoring system)

It is recommended that in designing their projects applicants should foresee that the collective training programme begins at start of week 13 at the latest and that the company development programme begins at start of week 19 at the latest. Project promoters will complete recruitment of companies for their proposed company development programme directly from participant companies in the collective training programme.

Geographical ConsiderationsThe catchments area for participating companies in any one project is potentially the entire NE Region or any part thereof as justified by needs set out in the application . Nevertheless applicants should be mindful of the reluctance of beneficiaries to travel large distances to any collective events.

2.1.7 Other technical requirements related to this Call for Proposals

Project readiness

This section is relevant to components including works, i.e. Business related infrastructure and Integrated support to Local/Regional tourism.

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With regard to actions focused on construction/reconstruction (works), the Applicant is obliged to identify whether a detailed design is required for the foreseen activities.

With regard to actions where the applicable relevant Bulgarian regulations require such preliminary design (drawings, priced Bill of Quantities) must be annexed as supporting documentation provided together with the application. The amount of grant requested for these activities should be justified on the basis of this preliminary design together with the priced Bill of Quantities. With regard to actions where the applicable relevant Bulgarian regulations do not require such a design, the Applicant should provide together with his application only priced Bill of Quantities in addition to an explanatory note.

IMPORTANT

The preparation of preliminary design (drawings, priced Bill of Quantities) is the responsibility of the Applicant during the Call for Proposal phase and can not be financed under the project. These documents are to be provided already for the purposes of the project proposal’s evaluation. Nevertheless, during project implementation they will be subject to an ex-ante approval by the Contracting Authority within the Tender Dossier for the respective sub-contracting procedure.

Subsequently, in case of sub-contracting, the grant beneficiary will be responsible for the development of the respective Tender Dossier and launching the relevant tender procedure.

Environmental Impact Assessment (EIA) and Assessment of Demand and Feasibility The following 2 paragraphs are relevant to components Business related infrastructure and Integrated support to local/regional tourism only.

Environmental Impact Assessment (EIA)For the purposes of identifying potential environmental effects of the action during and after implementation of the action, the Applicant is obliged to identify whether an EIA is mandatory or not for the project in question. With respect to actions where the EIA is applicable according the relevant Bulgarian regulations, the applicant must attach a positive EIA decision by the MoEW to the application. With respect to actions where the applicable relevant Bulgarian regulations do not require a formal Environmental Impact Assessment, the Applicant shall attach a statement from the respective public environmental authorities (Ministry of Environment and Waters or Regional Environmental Inspectorate) that EIA is not required.

Assessment of Demand and Feasibility In case of infrastructure actions exceeding 100 000 EUR the Applicant must submit an Assessment of Demand and Feasibility (where applicable) in the given format (Annexes G and H) together with the application.

SupervisionIn case of actions for which supervision services are required (e.g. works) and will be subcontracted the applicant must take into account, the Annex F -Terms of Reference in the prescribed format, as an important information to, in order the Supervision Tender Dossier to be prepared and submitted for approval in ten days of the commencement date of the grant contract, as per article 2.2. of the Special conditions.

Regulations Concerning the Planned Activities

It is an obligation of the Applicant to be acquainted with all the acts concerning his project before submitting his application.

2.2 How to apply and the procedures to follow

2.2.1 Application form and supporting documents

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Applications must be submitted on the application form annexed to these Guidelines (Annex A). The complete set of documents required in English is available on the following web sites of the MRDPW and PIU:

www.mrrb.government.bg and http://www.vn.government.bg

Applicants should keep strictly to the format of the application form and fill in the pages in order.

Applicants must apply in English language.

The supporting documents required can be provided by applicant in Bulgarian language only, but the CV’s of the proposed staff has to be provided in English.

Please, complete the application form carefully and as clearly as possible so that we can assess it properly. Be precise and provide enough detail to ensure the application is clear, particularly as to how the aims of the action will be achieved, the benefits that will flow from it and the way in which it is relevant to the programme's objectives.

Hand-written applications will not be accepted.

Supporting documents

All applications must be accompanied by supporting documents. These are set out on lists annexed to the Grant Application Form. They are of two types:

A list of obligatory supporting documents required in function of the kind of legal entity you are (e.g. municipality, NGO, etc.);

A list of additional obligatory supporting documents required depending on the kind of activities you propose to undertake as part of your project (e.g. works);

IMPORTANT

You must carefully read both lists and provide the supporting documents required in each.Please note that should you fail to provide any of the required documents together with the application, your application will not be taken into further consideration.

IMPORTANT

All Applicants must refer to Box (1), as well as to Box (5), (6) or (7) depending on the component

Municipalities, acting as applicants or partners should also refer to Box (2) NGOs, acting as applicants or partners should also refer to Box (3) Non profit and commercial organizations, acting as associates should also refer to Box (4)

Note At the end of the Application Form you must indicate all the attachments you have enclosed.

IMPORTANT

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http://www.vn.government.bg/

http://www.mrrb.government.bg/

For ALL applicants:

Attachment 1 - Cvs of the Project Manager and the other key staff [in English]

Attachment 2 - Sworn statement that the Applicant is not applying or receiving other funds in the form of grant for the same project activities (in a free format, notary certified);

Attachment 3- Certified auditor acknowledgement (notary certified copy of the official certificate);

IMPORTANT (BOX 2)

For Municipalities (acting as APPLICANTS or PARTNERS):

Attachment 4 - Copy of Tax registration (certified by the applicant/partner);

Attachment 5 - Copy of BULSTAT registration (certified by the applicant/partner);

Attachment 6 - Annual balance sheet and Profit and Loss accounts for year(copies certified by applicant/partner);

Attachment 7- Statements from National Social Security Institute and Tax administration for lack of overdue obligations (issued not earlier than 6 months prior the deadline for application) or plan for rescheduling of the debts in case of existing tax obligations – (original or a certified by the applicant/partner copy);

Attachment 8- Order for Delegation of powers issued by the mayor in case where the application form/ partnership statement is signed by another person (original or certified copy);

IMPORTANT (Box 3)

For NGOs (acting as APPLICANT and/or PARTNERS):

Attachment 9 - Statue or Articles of Association (notary certified copy);

Attachment 10 - Court registration (notary certified copy); [to proof that it has been in operation at least 2 years before the date of this Call]

Attachment 11 - Legal standing certificate (original or notary certified copy issued by the relevant court not earlier than 6 months prior the deadline for application);

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Attachment 12 - Tax registration and VAT registration (if existing) [certified by the applicant/partner that is a true copy]

Attachment 13 - BULSTAT registration [certified by the applicant/partner that is a true copy];

Attachment 14 – Annual balance sheet and Profit and Loss accounts for year 2004 [certified by the applicant/partner that is a true copy];

Attachment 15 - Statements from National Social Security Institute and Tax administration for lack of overdue obligations (issued not earlier than 6 months prior the deadline for application) or plan for rescheduling of the debts in case of existing tax obligations – (original or a certified by the applicant/partner copy);

IMPORTANT (Box 4)For Non-profit or commercial entities or other organizations (acting as ASSOCIATES ):

Attachment 16 - Letter of support signed by the official representative of the organization;Note The Letters of support, issued by the Associate, must contain evidence that: - the associate has been acquainted with the project proposal; - the associate is aware of his role as participant in the proposed action; - the associate is aware that is not eligible to receive any part of the budget under no circumstances; - the associate is aware that is not allowed to act as sub-contractor;

IMPORTANT (Box 5)For Project Applicants whose project involves WORKS

Attachment W1- Ownership act of the fixed assets (land and/or buildings) involved in the Works activities envisaged under the project (notary certified copy)(1) not applicable in case of assets within the National Parks; (2) in case of land within natural parks the ownership act is replaced by Scheme/Map from the Land Commission/Ministry of Agriculture and Forestry; (3) in case of tourist routes passing through private territories the consent of the owners must be obtained and presented in the due legal form

Attachment W2 - In case of municipal ownership of the fixed assets (land and/or buildings) - Decision of the Municipal Council providing for the exploitation of the public asset involved in the project proposal

Attachment W3 In case of state ownership of the fixed assets (land and/or buildings)(1) Letter of support signed by the District Governor or other state body representing the owner as appropriate(2) Signed contract between the applicant and the District Governor or other state body representing the owner laying down the rights and obligations of

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both parties with regard to the exploitation of the public assets involved in the project proposal (notary certified copy)

Attachment W4 Preliminary Works Design and/or indicative priced Bill of Quantities, and explanatory note in case of construction/reconstruction envisaged;

Attachment W5 - Positive Decision on Environment Impact Assessment or statement from the relevant public authority that the latter is not needed for the specific project activities (original or notary certified copy);

IMPORATNT(Box 6)For Applicants applying to “HUMAN RESOURCE DEVELOPMENT - LOCAL INITIATIVES FOR EMPLOYMENT AND EMPLOYABILITY” component:

Attachment HR1- Letter of intention by employer proofing his commitment to provide placement to at least 25% of the unemployed trained within the project for at least 6 months following the training.

IMPORTANT (Box 7)For Applicants applying to “INVESTMENT TO SUPPORT CONDITIONS AND EXTERNAL ENVIRONMENT FOR PRODUCTIVE SECTOR” component:Attachment PI 1- Signed statement of commitment to the ‘horizontal/collective programme and

statement of readiness to make financial contribution;Attachment PI 2- Signed statement of commitment to the proposed “company development

programme” and statement of readiness to make financial contribution;Attachment PI 3- CV(s) of professional (dully certified) consultant/trainers;

2.2.2 Where and how to send the application

Applications must be received in a sealed envelope by registered mail, courier or by hand-delivery (a signed and dated certificate of receipt will be given to the deliverer) at the address below:

Postal addressMinistry for Regional Development and Public WorksPhare Implementing Agency Directorate5th floor, Room 52517 – 19 Cyril and Methodius Str., 1202 Sofia

Address for hand deliveryMinistry for Regional Development and Public WorksPhare Implementing Agency Directorate5th floor, Room 52517 – 19 Cyril and Methodius Str., 1202 Sofia

Delivery by private courier serviceMinistry for Regional Development and Public WorksPhare Implementing Agency Directorate5th floor, Room 52517 – 19 Cyril and Methodius Str., 1202 Sofia

Applications sent by any other means (e.g. by fax or by e-mail) or delivered to other addresses will be rejected.

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Application forms (Annex A to these Guidelines) with its annexes (Annex B – Budget, Annex C – Log frame, Annex G – Assessment of Demand and feasibility of the Action - for Business related infrastructure component, Annex H - Assessment of Demand and feasibility of the Action - for Integrated support to local/regional tourism component) must be submitted in one original in English, in two 2 copies in English language. The supporting documents must be provided in Bulgarian language only [except the CV’s of the proposed key staff, which are to be provided in English] and attached to the original and copies.

The application form with its Annexes must also be supplied in electronic format.

The outer envelope must bear the reference number of the call for proposals, title of the component, the full name and address of the applicant, and the words "Not to be opened before the opening session" and "Да не се отваря преди началото на сесията по отваряне на предложенията".

Applicants are reminded that a checklist of supporting documents is annexed to the Application Form. This will help them to check whether all the required supporting documents have been attached.

2.2.3 Deadline for receipt of applications

The deadline for the receipt of applications is August 16 2005, 16.00 local time. Any application received after the deadline will be automatically rejected even if the postmark indicates a date preceding the deadline or if the delay is due to the private courier service.

2.2.4 Further information

Questions may be sent by e-mail or by fax no later than 21 days before the deadline for the receipt of proposals to the addresses listed below, indicating clearly the reference of the call for proposals:

E-mail address: [email protected]

Fax: + 359 2 986 53 87

They will receive a reply no later than 11 days before the deadline for the receipt of proposals.

Questions that may be relevant to other applicants, together with the answers, will be published on the internet at www.mrrb.government.bg.

2.2.5 Acknowledgement of receipt

Following the proposal opening session, the contracting authority will send an acknowledgement of receipt to all applicants, indicating whether or not their application was received prior to the deadline and informing them of the reference number they have been allocated.

2.3 Evaluation and selection of applications

Applications will be examined and evaluated by the contracting authority with the assistance of external assessors. All actions submitted by applicants will be assessed according to the following criteria:

(1) Administrative compliance

verification that the application is complete in accordance with requirements set out in this Guidelines for Applicants

(2) Eligibility of the applicants, partners and actions

Verification that the applicant, the partners (and the associates where applicable), and the action are eligible according to the criteria set out in section 2.1.1, 2.1.2 and.2.1.3.

IMPORTANT

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http://www.mmrb.government.bg/

mailto:[email protected]

All proposals must comply with all the administrative requirements and eligibility criteria in order to proceed for the next stage of evaluation. If it fails to meet these requirements it will be eliminated for further evaluation.

(3) Evaluation of the quality of the proposals and financial evaluation

An evaluation of the quality of proposals, including the proposed budget, will be carried out in accordance with the evaluation criteria set out in the Evaluation Grid shown on the next page. There are two types of evaluation criteria: selection and award criteria.

The selection criteria are intended to help evaluate the applicants' financial and operational capacity to ensure that they:

have stable and sufficient sources of finance to maintain their activity throughout the period during which the action is being carried out and, where appropriate, to participate in its funding;

have the professional competencies and qualifications required to successfully complete the proposed action. This also applies to any partners of the applicant.

The award criteria allow the quality of the proposals submitted to be evaluated in relation to the objectives and priorities set, and grant to be awarded to actions which maximize the overall effectiveness of the call for proposals. They cover such aspects as the relevance of the action, its consistency with the objectives of the call for proposals, quality, expected impact, sustainability and cost-effectiveness.

Please note the following important information:Scoring: The evaluation criteria are divided into sections and subsections. Each subsection must be

given a score between 1 and 5 in accordance with the following guidelines: 1 = very poor; 2 = poor; 3 = adequate; 4 = good; 5 = very good. The applications with the highest scores will be given priority when grants are awarded.

Note on Section 1. Financial and operational capacity If a total score lower than “adequate” (12 points) is obtained for section 1, the proposal will not be evaluated further.

Note on Section 2. Relevance If a total score lower than "good" (20 points) is obtained for section 2, the proposal will not be evaluated further.

Evaluation Grid

Section Maximum Score

Application form

1. Financial and operational capacity 201.1 Do the applicant and partners have sufficient experience of project

management? 5 II.4.1 and III.1

1.2 Do the applicant and partners have sufficient technical expertise? (notably knowledge of the issues to be addressed.)

5 II.4.1 and III.1

1.3 Do the applicant and partners have sufficient management capacity? (including staff, equipment and ability to handle the budget for the action)?

5 II.4.2 and III.1

1.4 Does the applicant have stable and sufficient sources of finance? 5 II.4.22. Relevance 252.1 How relevant is the proposal to the objectives and one or more of the priorities

of the call for proposals? Note: A score of 5 (very good) will only be allocated if the proposal specifically addresses at least one priority.

5 I.1.6(a)(b)

2.2 How relevant to the particular needs and constraints of the target country/countries or region(s) is the proposal? (including avoidance of duplication and synergy with other EC initiatives.)

5 I.1.6(c)Annex G*, 1A,

2A, Annex H*, 1, 2, 3

2.3 How clearly defined and strategically chosen are those involved (intermediaries, final beneficiaries, target groups)?

5 I.1.6(e)Annex G 1B, 1C,

2A, 2C, Annex H 5

2.4 Have the needs of the target groups proposed and the final beneficiaries been clearly defined and does the proposal address them appropriately?

5 I.1.6 (c)(f)Annex G 1B, 1C,

2A, 2C Annex H 5

2.5 Does the proposal contain specific elements of added value, such as innovative 5 Passim

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approaches, models for good practice, promotion of gender equality and equal opportunities, environmental protection?

3. Methodology 303.1 Are the activities proposed appropriate, practical, and consistent with the

objectives and expected results?5 I.1.7

3.2 How coherent is the overall design of the action? (in particular, does it reflect the analysis of the problems involved, take into account external factors and anticipate an evaluation?)

5 I.1.8

3.3 Is the partners' level of involvement and participation in the action satisfactory?Note: If there are no partners the score will be 1.

5 I.1.8(e)

3.4 Is the target groups' and final beneficiaries' level of involvement and participation in the action satisfactory?

Note: (only for comp.4) If the number of the companies is less than 15/10 (see p.26) the score will be 1.

5 I.1.8(e)

3.5 Is the action plan clear and feasible? 5 I.1.93.6 Does the proposal contain objectively verifiable indicators for the outcome of

the action?5 Logframe

Annex G 1C, 1D, 2C, 2D

Annex H 54. Sustainability 154.1 Is the action likely to have a tangible impact on its target groups? 5 I.2.1

Annex G 1E, 2E, Annex H 5

4.2 Is the proposal likely to have multiplier effects? (including scope for replication and extension of the outcome of the action and dissemination of information.)

5 I.2.2 & I.2.3Annex H 5

4.3 Are the expected results of the proposed action sustainable:- financially (how will the activities be financed after the EC funding ends?)- institutionally (will structures allowing the activities to continue be in place at

the end of the action? Will there be local “ownership” of the results of the action?)

- at policy level (where applicable) (what will be the structural impact of the action — e.g. will it lead to improved legislation, codes of conduct, methods, etc?)?

5 I.2.4Annex G 1E, 2E,

Annex H 5

5. Budget and cost-effectiveness 105.1 is the ratio between the estimated costs and the expected results satisfactory? 5 I.3

Annex G 1C, 2C, Annex H 5

5.2 Is the proposed expenditure necessary for the implementation of the action? 5 I.3Maximum total score 100* Annexes G and H apply only to projects over 100,000 EUR submitted Components Business Related Infrastructure and Integrated Regional/Local Tourism

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MAIN PHASES OF THE PROJECT SELECTION PROCESS12

12 Applications will be assessed on the bases of the outlined procedures separately for each component.

GRANT APPLICATIONS REGISTERED

ADMINISTRATIVE COMPLIANCE CHECK

ELIGIBILITY CHECK

PROJECT RANKING

DECISION ON AWARD OF GRANTS

ENDORSEMENT OF GRANT AWARDS

ASSESSMENT OF TECHNICAL AND FINANCIAL QUALITY

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2.4 Notification of the contracting authority’s decision

Applicants will be informed in writing of the contracting authority's decision concerning their application. A decision to reject an application or not to award a grant will be based on the following grounds:

the application was received after the closing date;

the application was incomplete or otherwise non-compliant with the stated administrative conditions;

the applicant or one or more of its partners was not eligible;

the action was ineligible (e.g. the action proposed is not covered by the programme, the proposal exceeds the maximum duration allowed, the requested contribution is higher than the maximum allowed, etc);

the proposal was not relevant enough or the applicant's financial and operational capacity was not sufficient, or the proposals selected were considered superior in these respects;

the proposal was considered technically and financially inferior to the proposals selected.

The contracting authority's decision to reject an application or not to award a grant is final.

The date on which the contracting authority plans to announce the decision following the completion of the award procedure is October 28th 2005, this date is indicative only.

2.5 Conditions applicable to implementation of the action following the contracting authority’s decision to award a grant

Following the decision to award a grant, the Beneficiary will be offered a contract based on the contracting authority's standard contract annexed to these Guidelines (Annex E).

The Beneficiary must start to implement the action activities no later than 30 days after the signature of the contract. The month planned for the start of the actions, following the signing of the contract by the parties is November 2005 — this date is indicative only.

The Beneficiary shall submit to the Contracting Authority for approval the tender dossier for the service contract required for the supervision of Works within 10 days of the commencement date of the Grant Contract.

Actions should be all finished before 31st July 2007, including submission of final reports irrespective of the action starting date.

The contract will, in particular, establish the following rights and obligations:

Final amount of the grantThe maximum amount of the grant will be stipulated in the contract. As explained in point 2.1.4, this amount is based on the budget, which is itself only an estimate. As a result, it will be final only once the action has ended and the final accounts have been presented (see Articles 17.1 and 17.2 of the General Conditions).

Failure to meet the objectivesIf the Beneficiary fails to implement the action as undertaken and agreed in the contract, the contracting authority reserves the right to suspend payments, and/or to terminate the contract (see Article 11 of the General Conditions). The contracting authority's contribution may be reduced, and/or the contracting authority may demand full or partial repayment of the sums already paid, if the Beneficiary does not fulfill the terms of the contract (see Articles 11.4 and 17.4 of the General Conditions).

Amendments to the contract and variations within the budgetAny amendment to the contract must be set out in a written addendum to the original contract (Article 9.1 of the General Conditions). However, some amendments (addresses, bank account, etc.) may simply be notified to the contracting authority (see Article 9.2 of the General Conditions).

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Variations within the budget

Budget items may vary from the original figures provided that the following conditions are met:

(1) they do not affect the basic purpose of the action; and

(2) the financial impact is limited to a transfer within a single budget heading or to a transfer between budget headings involving a variation of less than 15% of the original amount of each relevant budget heading.

In such instances, the Beneficiary may make alterations to the budget, and inform the contracting authority.

This method may not be used to amend the heading for overhead costs.

In all other cases, a written request must be made in advance to the contracting authority and an addendum is required.

Reports

Reports shall be prepared in English and shall consist of a technical section and a financial section and are to be supplied together with payment requests (other than the first installment of pre-financing). A work plan and budget for the next period of implementation must accompany reports submitted for further payments of pre-financing.

In addition, the Beneficiary will provide the PIU on monthly bases with regular progress reports describing the progress of the action.

Additional information

In accordance with Article 2.1 of the General Conditions, the contracting authority may request additional information.

Payments

The Beneficiary will receive pre-financing. If the overall duration of the action does not exceed 12 months or if the grant does not exceed EURO 100 000, the pre-financing will be 80% of the grant.

If the overall duration of the action exceeds 12 months and if the grant exceeds EUR 100 000, the first pre-financing installment will be 80% of the forecast budget for the first 12 months of the action (see Article 15.1 of the General Conditions). In that case, subsequent pre-financing payments may be made upon submission by the Beneficiary, and approval by the contracting authority, of an interim report and a work plan and budget for the following period (see Article 15.1 of the General Conditions).

The final balance will be paid upon submission by the Beneficiary and approval by the contracting authority of the final report (see Article 15.1 of the General Conditions).

Payments will be made to an Action-specific bank account or sub-account which identifies the funds paid by the Contracting Authority.

Accounts of the actionThe Beneficiary must keep accurate and regular records and dedicated, transparent accounts of the implementation of the action (see Article 16.1 of the General Conditions). It must keep these records for seven years after payment of the balance.

Audit An external audit of the accounts of the action, produced by a certified auditor must be attached to each request for the payment of the balance. To this end, the Beneficiary has to identify the auditor who will carry out the external audit and provide the certified auditor acknowledgement as a supporting document to the application.

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In an audit certificate conforming to the model attached at Annex VI to the contract, the auditor will certify that the submitted accounts (income and expenditure) are accurate, reliable and justified by adequate supporting documents, and will identify the eligible expenditure incurred in accordance with the Contract.

The contract will provide for possibility of inspections to be carried out on documents and on the project sites by contracting authority and the PIU. The contract will permit the Commission, the European Anti-Fraud Office and the European Court of Auditors, the Contracting Authority and the Programme Implementation Unit to carry out both record-based and on-the spot inspections of the action (see Article 16.2 of the General Conditions).

Publicity

Appropriate visibility and credit must be given to the grant made by the European Community, for example, in reports and publications stemming from the action or during public events associated with the action, etc. (see Article 6 of the General Conditions).

The Beneficiary must take necessary measures to ensure the visibility of EU financing. Such measures must be in accordance with the applicable rules on visibility of external actions laid down by the Commission and published in the Visual Identity Guidelines (available on http://europa.eu.int/comm./europeaid/tender/gestion/index en.htm).

Implementation contracts

Where implementation of the action requires the Beneficiary to award procurement contracts, it must follow the procedures for subcontracting services, supplies and works as set out in Annex IV to the contract and Practical Guide to contract procedures, section 6.8 (Procurement by Grant Beneficiaries) and award the contract to the tenderer offering the best value for money, that is to say, the best price-quality ratio, in compliance with the principles of transparency and equal treatment for potential contractors, care being taken to avoid any conflict of interests

The contracting authority will carry out ex ante controls over the procurement procedures, i.e. approval of tender dossiers, tendering process and reports taken by the Beneficiary before the latter proceeds with signing the contract with the subcontractor. Further detailed information on subcontracting will be provided by the Contracting Authority after awarding the grant contracts.

The Beneficiary has to invite at least 15 days in advance a representative of the contracting authority to participate as observer in any sub-contracting procedures under the grant.

The Beneficiary must specify in all tender dossiers for works and supervision of works that the sub-contractor is obliged to provide a bank guarantee to the Contracting Authority (i.e. the Beneficiary) as a prerequisite for the disbursement of the retention sum, covering the Defect Liability Period for supervision and works contracts.

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http://europa.eu.int/comm./europeaid/tender/gestion/index%20en.htm

3. LIST OF ANNEXES

Annex A: Grant Application Form (Word format) to be filled in at the time of application;

Annex B: Budget (Excel format) to be filled in at the time of application;

Annex C: Logical Framework (Excel format) to be filled in at the time of application;

Annex D: Daily Allowance Rates (per diems) for the current year (Word format) for information;

Annex E: Standard Contract (Word format) for information;

Annex F: Terms of Reference for service contract for supervision of Works (Word format) for information;

Annex G: Assessment of Demand and Feasibility of the Action

– for Business related infrastructure component - to be filled in at the time of application;

Annex H: Assessment of Demand and Feasibility of the Action

– for Integrated Support to Regional/Local Tourism Development- to be filled in at the time of application;

Annex I: Standard CV format

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