1.1. Overview of Romania- Serbia Interreg - IPA Cross-Border Cooperation Programme 2014-2020

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Call for proposals No. 1

15 September 2015

Deadline for receipt of applications: 15 January 2016

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2 www.romania-serbia.net

TABLE OF CONTENTS

1. GENERAL INFORMATION ... 9

1.1. Overview of Romania- Serbia Interreg - IPA Cross-Border Cooperation Programme 2014-2020 ... 9

1.2. Programme strategy ... 9

1.2.1. Programme objectives ... 10

1.2.2. Eligible area ... 12

1.2.3. Programme Priority Axes ... 12

1.2.4. Programme indicators ... 14

1.3. Horizontal Themes ... 25

1.3.1. Environmental monitoring indicators ... 25

1.3.2. Horizontal themes monitoring indicators ... 26

1.4. Programme implementation structures ... 27

1.5. Call for proposals financial allocation ... 28

1.6. State aid ... 29

2. RULES OF THE CALL FOR PROPOSALS ... 32

2.1. Type of call for proposals ... 32

2.2. Eligibility Criteria ... 32

2.2.1. Eligibility of applicants ... 33

2.2.2. Eligibility of actions (operations) ... 36

2.2.3. Eligibility of expenditure ... 47

2.3. HOW TO APPLY ... 48

2.3.1. Lead Beneficiary and partnership rules: ... 48

2.3.2. How to get the Applicant’s Guide ... 49

2.3.3. How to fill in the Application Form and its Annexes ... 50

2.3.4. Where and how to send the applications ... 58

2.3.5. Deadline for receipt of applications ... 60

2.4. Evaluation of Applications ... 60

2.4.1. The solution of the appeals during the project assessment and selection process 60 2.5. The selection of projects ... 62

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3. ANNEXES ... 63

For the purposes of the Interreg - IPA CBC Romania – Serbia Programme and its related documents, the following definitions shall apply:

Applicant Any legal entity meeting the eligible criteria which submits an application to be financed by the programme

Beneficiary Any applicant whose application has been approved for financing Biodiversity The variability of living bodies within the land, sea, continental aquatic

ecosystems and ecological complexes; this comprises the intra-specific, inter-specific and ecosystems diversity

Discounting The process of adjusting the future value of cost and benefits to the present by a discount rate.

Discount rate

The rate at which future values are discounted to the present Eligible

expenditure Expenditures made by a Beneficiary, related to the projects financed through the programme, which could be financed from the structural instruments, as well as from the state budget and/or own/ private Beneficiary contribution

Eligible

area/region The Romanian counties and Serbian districts located in the border area, as mentioned in the programming document approved by the European Commission

Expenditure

incurred Expenditure is incurred when the activity that has generated the expenditure (for example the works executed in accordance with the conditions of the contract) has been completed or the services foreseen in a contract have been provided and accepted by the beneficiaries. Proof of expenditures incurred relates to supporting documents indicating the completion of the activity, for instance take over certificates or confirmation of service delivery.

Internal rate of

Return (IRR) The discount rate at which a stream of costs and benefits has a net present value of zero. The internal rate of return is compared with a benchmark in order to evaluate the performance of the proposed project

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Investment cost

Capital cost incurred in the construction of the project Investment

project A project that has an infrastructure component or which grants more than half of its total eligible budget for the purchase of equipment or a project whose results involve the achievement of an objective by investing capital, which means that their main component is to carry out a work, without excluding the procurement of services (as consultancy or technical assistance) or goods (procurement of necessary equipment for the respective objective) related to the respective objective.

Joint Secretariat The structure responsible for assisting the programme management bodies in carrying out their duties. Regional Cross Border Cooperation Office Timisoara for Romanian Serbian Border is hosting the Joint Secretariat for the Programme.

Lead

Beneficiary A Beneficiary designated by the beneficiaries involved in a project responsible for coordinating the process of development, submission and implementation of that specific project

Managing

Authority The structure responsible for managing the operational programme. The Romanian Ministry of Regional Development and Public Administration is the Managing Authority for the Programme

National

Authority The counterpart of the Managing Authority in the partner state. The Serbian European Integration Office is the National Authority for the Programme

National

Legislation The legislation of the state on whose territory the beneficiary is located Natural

protected area Land, aquatic and/or underground area hosting savage fauna and flora species, bio-geographical, landscape, geological, pale-ontological, speleological or other elements and systems with outstanding ecological, scientific or cultural value, governed by special preservation and

protection rules in compliance with legal provisions

Operating costs Cost incurred in the operation of an investment, including cost of routine and extraordinary maintenance but excluding depreciation or capital costs

Partnership

Agreement A document that formalises relationship between project partners and the Lead Beneficiary. Mutual rights and obligations regarding cooperation in project are laid down in the agreement, also including provisions guaranteeing the sound financial management of the funds allocated to the project.

Potential

applicant Any legal entity meeting the eligible criteria for submitting an application to be financed by the programme

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Potential

beneficiary Any applicant or potential applicant is a potential beneficiary until the decision for financing its project has been issued

Project An operation comprising a series of works, activities or services intended in itself to accomplish an indivisible task of a precise economic or

technical nature, which has clearly identified goals, expressed as the application form and its annexes.

Reference

period The number of years for which forecasts are provided in the cost benefit analysis

Revenue generating project

Any project involving an investment in infrastructure, the use of which is subject to charges borne directly by users, and any project involving the sale or rent of land or buildings or the provision of services against payment

Revenues

Income to be expected from an investment through pricing or charges Soft project Project that does not have an infrastructure component or which does

not grant more than half of its total eligible budget to purchase of equipment.

Subsidy contract

Contract between the Managing Authority and the Lead Beneficiary. It determines the rights and responsibilities of the Lead Beneficiary and the Managing Authority, the scope of activities to be carried out, terms of funding, requirements for reporting and financial controls, etc.

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Glossary of Acronyms

AA Audit Authority

RO Romania

CA Certifying Authority (the Managing Authority took the role of Certifying Authority)

CBC Cross-Border Cooperation CBA Cost Benefit Analysis

EC European Commission

IPA Instrument of Pre-accession

EU European Union

GD Government Decision

ICT Information and Communication Technology IRR Internal Rate of Return

IT Information Technology

JMC Joint Monitoring Committee

JS Joint Secretariat

MA Managing Authority

MRDPA Ministry of Regional Development and Public Administration SEIO Serbian European Integration Office

MPF Ministry of Public Finance(Romania) MEF Ministry of European Funds

MS Member States

NA National Authority

NGO Non-Governmental Organization

NUTS Nomenclature of Territorial Units for Statistics

OP Operational Programme

PSC Project Steering Committee

Programme Interreg - IPA CBC Romania – Serbia Programme R&D Research and Development

RTD Research and Technological Development

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RO CBC Regional Office for Cross Border Cooperation for Romania-Republic of Serbia Border

SWOT Strengths, Weakness, Opportunities, Threats

VAT Value Added Tax

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Legal basis

➢ Commission Decision No. 5667/2015 approving the Interreg - IPA CBC Romania – Serbia Programme for 2014-2020 period;

➢ Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006;

➢ Regulation (EU) No 1299/2013 of the European Parliament and of the Council of 17 December 2013 on specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal;

➢ Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II) (hereafter IPA II Regulation);

➢ Regulation (EU) No 236/2014 of the European Parliament and of the Council of 11 March 2014 laying down common rules and procedures for the implementation of the Union's instruments for financing external actions;

➢ Commission implementing regulation (EU) No 447/2014 of 2 May 2014 on the specific rules for implementing Regulation (EU) No 231/2014 of the European Parliament and of the Council establishing an Instrument for Pre-accession assistance (IPA II);

➢ Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002;

➢ Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union

➢ Commission Delegated Regulation (EU) No. 481/2014 of 4 March 2014 supplementing Regulation (EU) No. 1299/2013 of the European Parliament and of the Council of 17 December 2013 on specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal;

➢ Other relevant national and European legislation (Annex G).

Applicable law:

Projects must be in line with all relevant national and European legislation, including legislation on equal opportunities, environmental protection, public procurement (art. 45 of Commission Implementing Regulation 447/2014, art. 8 and 10 of the European Parliament and of the Council Regulation (EU) No 236/2014 must be observed) and state aid rules.

Projects must observe the European legislation provisions on information and publicity.

Please note that all these legal provisions must also be observed by the applicants during both project elaboration and implementation phases.

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1. GENERAL INFORMATION

The Applicant’s guide aims to give practical information for project applicants to the Interreg - IPA CBC Romania – Serbia Programme. It helps applicants to submit projects under this Programme as it offers a range of information on how to fill in an application, budget and related forms, the application procedure, the project selection criteria, the decision making procedure and other aspects.

1.1. Overview of Romania- Serbia Interreg - IPA Cross-Border Cooperation Programme 2014-2020

The Interreg - IPA CBC Romania – Serbia Programme has been prepared in line with the Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II) (hereafter referred to as the “IPA Regulation”), Regulation (EU) No 236/2014 of the European Parliament and of the Council of 11 March 2014 laying down common rules and procedures for the implementation of the Union's instruments for financing external action, Commission implementing regulation (EU) No 447/2014 of 2 May 2014 on the specific rules for implementing Regulation (EU) No 231/2014 of the European Parliament and of the Council establishing an Instrument for Pre-accession assistance (IPA II) (hereafter referred to as the

“IPA Implementing Regulation”). The Programme is the result of a co-operative effort by the Romanian and Serbian national, regional and local authorities.

The Interreg - IPA CBC Romania – Serbia Programme 2014-2020 has been approved by the European Commission on 6 August 2015 and focuses on the development of the border area through improvement of the accessibility to the labour market and promoting employment, environment protection and tourism.

The Romania-Republic of Serbia IPA Cross-border Cooperation for 2007-2013 programming period, the 2003 Phare External Border Initiative Programme for Romania and the Neighbourhood Programme Romania- Serbia & Montenegro 2004-2006 paved the way for the new integrated cross-border instrument to be implemented at EU external borders as of 2007, therefore conditions for cross-border cooperation are already in place and this IPA Cross-Border Cooperation Programme can concentrate on its strategic goal of achieving a more balanced sustainable socio-economic development of the Romania-Republic of Serbia border area.

1.2. Programme strategy

The Interreg - IPA CBC Romania – Serbia Programme provides the opportunity for both countries to continue their cross-border cooperation under the new instrument. The analysis set out in the Joint Programming Document shows that even if there is very uneven economic development within the border area, this area of cooperation is characterized by similar agricultural, economic and industrial assets on both sides of the border, and thus common challenges can and should be tackled in part by joint actions.

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The programme strategy focuses on the key challenges of the border region and the responses that are available to address problems that exist, namely:

- Overcoming specific issues related to the connectedness of the region, both internally between the border regions, and crucially also externally between the border region and neighbouring areas

- Tackling the lack of competitiveness which is a common issue affecting the economy of the border area as a whole, with negative impacts in both the Romanian and Serbian border areas. This includes issues such as entrepreneurship and business activity, innovation, and levels of investment

- Addressing key issues of rural development which are characteristic of the regions on both sides of the border, and which would benefit from joint cross-border action in relation to key areas such as (inter alia) agriculture, rural tourism development, and specific labour market challenges in rural areas.

- Dealing with the significant common challenges in the environment and in specific aspects of local/regional preparedness in relation to cross-border emergency situations

- Overcoming the border as a perceived “division”, and promoting greater cooperation and contact between regions and communities on both sides of the border

1.2.1. Programme objectives

Priority Axis 1

Employment promotion and basic services strengthening for an inclusive growth

Specific objective

1-1 ”Employment and labour mobility” To enhance the potential of the programme area for an inclusive growth, improving across border access to the labour market and employment opportunities in the programme eligible area.

1-2 ”Health and social infrastructure” To enhance the potential of the programme area for an inclusive growth, based on the improvement of quality of life to all residents on the two sides of the border through joint cross border actions for the access to modern and efficient health care services, social services, services supporting access to primary education.

1-3 ”Social and cultural inclusion” To enhance the potential of the programme area for an inclusive growth, increasing cultural and social integration in the cross- border area and reducing the impact of constraints due to remoteness and marginalisation of border areas.

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Priority Axis 2:

Environmental protection and risk management

2-1 ”Environmental protection and

sustainable use of natural resources” Enhancing protection and sustainable use of natural resources, with the improvement of capacities of competent bodies and promotion of cross border networks for education and studies on environmental resources.

2-2 ”Environmental risks management and emergency preparedness”

Enhancing preparedness and awareness to face environmental risks and emergencies, enabling cross-border interoperability and joint actions for innovative systems of environmental protection, mitigation and prevention of environmental accidents and disasters and emergency reaction.

Priority Axis 3: Sustainable mobility and accessibility

3-1 ”Mobility and transport infrastructure

and services” Promote the achievement of improved quality

standard in public transport and mobility services in the eligible area across the border and the integration in the main EU transport corridors, complying to EU Environmental legislation and sustainability principles, especially in remote and disadvantaged areas.

3-2 ”Public utilities infrastructure” Promote the achievement of improved and homogenous quality standard in public infrastructures for basic services, especially in remote areas through improved and enlarged access to modern and efficient public utilities services (incl. Internet, energy).

Priority Axis 4: Attractiveness for sustainable tourism

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4-1 ”Investments for the growth of the demand of local tourism networks and promotion of innovative tourism activities”

Developing the local tourism economy across the border, based on a sustainable use of the local natural and cultural heritage, the promotion of national and international tourism demand, the creation of innovative and integrated cultural and leisure tourism attractions, the improvement of attractiveness of cross border networks and tourism trails.

4-2 ”Capacity building initiatives for the improvement of quality and innovation of tourism services and products”

Developing the local tourism economy based on the improvement of quality of tourism services, a sustainable use of the natural and cultural heritage, the creation of capacities and skills for high quality tourism services, the design of innovative products in cross border networks and partnerships, the improvement of Accessibility and sustainability of tourist infrastructures.

1.2.2. Eligible area

România – 3 counties:

• Timiş

• Caraş-Severin

• Mehedinţi

Republic of Serbia – 6 districts:

• Severnobanatski

• Srednjebanatski

• Južnobanatski

• Podunavski

• Braničevski

• Borski

1.2.3. Programme Priority Axes

Four priority axes have been identified as the basis for intervention in order to address common challenges facing regions in both Romania and Republic of Serbia:

Priority Axis 1: Employment promotion and basic services strengthening for an inclusive growth

Priority Axis 2: Environmental protection and risk management Priority Axis 3: Sustainable mobility and accessibility

Priority Axis 4: Attractiveness for sustainable tourism

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For further details on programme strategy please refer to the Programme Document for Interreg - IPA CBC Romania – Serbia Programme

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1.2.4. Programme indicators

PRIORITY AXIS LEVEL INDICATORS

Priority Axis 1 - Programme specific result indicators

ID Indicator Measurement unit Baseline

value Baseline

year Target value (2023)

Source of data Frequency of reporting

PA1-

RI1 Active population more satisfied of the access to labour market.

(Innovative services assisting job seekers permanently established, information on job opportunities available in marginal areas, disadvantaged groups receiving assistance and information about job

opportunities through information points and dedicated tutors.)

Ranking on

qualitative scale (1- 7)

3.4

2015 4.25 Survey among

stakeholders.

Association of entrepreneurs, local

administrators, NGOs, educational organizations

2017/2018 2020/2021 2023

PA1-

RI2 Population experiencing access to improved basic services in health care and education.

Innovative, high quality services permanently created and available in marginal areas, preventive care, cultural

Ranking on

3.28 2015 4.92 Survey among

stakeholders. Local administrators, NGOs, health care centres,

educational organizations.

2017/2018 2020/2021 2023

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activities and services, sport activities.

PA1-

RI3 Population experiencing lively cultural life in a cross border setting.

Population, especially in marginal areas, accessing various opportunities for cultural and social activities, permanently offered in joint initiatives across the border.

Ranking on

target groups.

Students, Cultural Organizations, NGOs, Sport Associations.

2017/2018 2020/2021 2023

Priority Axis 1 - Programme specific output indicators

ID Indicator (name of indicator) Measurement unit

Target value (2023) Source of data Frequency of reporting PA1.OI1 Citizens involved in project

activities in cultural, social health care services.

Units at least 3000 Monitoring system and

projects reports Annual

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PA1.OI2 Cross border cooperation structures supported in the field of labour market.

projects reports Annual PA1.OI3 Investment in health care and

social services infrastructure.

Units at least 5 Monitoring system and projects reports

Annual

PA1 OI4 Disadvantaged persons involved in

projects activities. Units at least 2000 Monitoring system and

PA1OI5 Joint actions targeting vulnerable groups (youth, women, disabled, ethnic minorities) established for the prevention of early school leaving, for cultural inclusion

Units at least 20 Monitoring system and projects reports

Annual

PA1OI6 Joint actions targeting smart

(green) growth opportunities Units At least 10 Monitoring system and

projects reports Annual COI_1 Population covered by improved

health services Persons 10.000 Monitoring system and

COI_2 Number of participants in projects promoting gender equality, equal opportunities and social inclusion across borders

Persons 2.000 Monitoring system and

Priority Axis 2 - Programme specific result indicators

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ID Indicator Measurement

unit Baseline value Baseline year Target value

(2023) Source of data Frequency of reporting PA2-RI 1 Awareness on the

potential of environmental resources and the benefits of protection.

Resident population informed on quality and quantity of

environmental

resources in the eligible area, and on the

benefits of protection actions.

Qualitative indicator on Ordinal scale value (1 -7)

stakeholders.

Youth, residents in areas close to natural

resources and environmental hotspots.

2017/2018 2020/2021 2023

PA2-RI2 Capacity for emergency interventions and management in case of natural disasters and environmental accidents

Qualitative indicator Ordinal scale value (1-7)

3.65 2015 4.74 Survey among

stakeholders.

Institutions for environmental protections, NGOs, local administrations, educational institutions.

2017/2018 2020/2021 2023

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PA2-RI3 Potential for cross- border interoperability for environmental protection and emergency

interventions, based on shared procedures and technologies

Qualitative indicator Ordinal scale value (1-7)

stakeholders.

Institutions for environmental protections, NGOs, local administrations, educational institutions.

2017/2018 2020/2021 2023

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Priority axis 2 - Programme specific output indicators

ID Indicator (name of indicator) Measurement

unit Target value (2023) Source of data Frequency of reporting PA2.OI1 Infrastructure, equipment built/

installed/ modernized in the field of cross border services for environmental protection

Units (No) at least 10 Monitoring system and

PA2.OI2 Participants to project initiatives and events for information and awareness rising

Units (No at least 5.000 Monitoring system and

PA2OI3 Studies in the field of

environmental protection and emergency management. (technical and scientific studies, researches in the relevant fields)

PA2.OI4 Participants to capacity building

initiatives units (No) at least 200 Monitoring system and

projects reports Annual PA2.OI5 Monitoring systems established/

extended/ modernized in the eligible area in the field of environmental protection and emergency management.

COI_3 Population benefiting from flood

protection measures Persons 50.000 Monitoring system and

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Priority axis 3 - Programme specific result indicators

ID Indicator Measurement unit Baseline

value

Baseline year

Target value (2023)

PA3-

RI1 Population accessing to sustainable and efficient public mobility and transport services.

Population having access to improved local transport infrastructures, faster connections to main corridors, efficient border crossing services, transport services using innovative technologies.

Qualitative

indicator described on an ordinal scale (1-7)

3.98 2015 5.17 Survey among

stakeholders. 2017/2018 2020/2021 2023

PA3-

RI2 Vehicles crossing the border.

Traffic across the border for social, commercial and touristic activities and exchanges.

Total number of

vehicles per day 950 2013 1.187 NIS, Border

police statistics.

Romania and Serbia

2017/2018 2020/2021 2023

PA3-

RI3 Population accessing sustainable and efficient public utilities networks (energy, water, ICT).

Access to improved utility services based on innovative technologies, access to efficient and sustainable energy sources, especially in marginal and remote territories.

Percentage of households with access to the utility networks (Index based on arithmetic averages of

indicators for the various networks)

57% 2015 82.6% NIS of Romania

and Serbia.

County and district level statistics on access to utilities

2017/2018 2020/2021 2023

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unit Target

value (2023)

PA3.OI1 Cross border cooperation structures supported in the

field of transport and public utilities Units (No) 10 Monitoring Annual

PA3.OI2 Studies related to the implementation of selected projects or the realisation of actions in the field of transport and mobility infrastructure

Units (No) 5 Monitoring Annual

PA3.OI3 Investments in transport and utilities infrastructure, including improvement, enhancement of existing infrastructure

PA3.OI4 Participants to information/ training/ awareness raising initiatives in the field of transport and public utilities.

PA3.OI5 Joint initiatives on improvements of public transport

and intermodal connections Units (No) 5 Monitoring Annual

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Priority axis 4 - Programme specific result indicators

ID Indicator Measurement

unit Baseline value Baseline

year Target value

(2023) Source of

data Frequency of reporting

PA4-RI1 Number of tourists arrivals in the eligible area.

Flows of visitors in the area for all forms of tourism activities and cross border networks.

Units 600.000

2012 810.000 National

statistical offices - Statistics on tourism

2017/2018 2020/2021 2023

PA4-RI2 Nights spent by tourists in the eligible area.

Time spent by tourists in the cross border area, for all types of touristic activities

Units 1.600.000 2012 1.920.000 National

statistical offices - Statistics on tourism

2017/2018 2020/2021 2023

PA4-RI3 New “touristic products” created as a result of programme actions in the field of promotion and information on

integrated touristic networks in the CBC area.

Units Baseline

measured referring to current and past cross border activities:

17

2015 24.6 Monitoring

system on projects implemented

2017/2018 2020/2021 2023

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unit Target value (2023) Source of data Frequency of reporting PA4.OI1 Cross border cooperation structures/

initiatives supported in the field of tourism

Units (No) At least 20 Monitoring Annual

PA4.OI2 Studies related to the implementation of selected projects or research and studies in the field of natural and cultural

resources

PA4.OI3 Number of participants attending

training initiatives Units (No) At least 500 Monitoring Annual

PA4 OI4 Joint actions and communication

instruments created Units (No) At least 4 Monitoring Annual

PA4 OI5 Partnerships for the exchange of good practices and the promotion of joint initiatives established

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For further details on programme indicators please refer to the Programme Document for Interreg - IPA CBC Romania – Serbia Programme

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www.romania-serbia.net

1.3. Horizontal Themes

The following horizontal themes shall be observed by all applicants in the development and implementation of their projects:

a) Equal opportunities – a fundamental right, a shared value and a key objective of the European Union – represents a priority fully taken on board by the programme and consequently all the financed projects are expected to observe it when developing the project objectives, target groups, activities and results.

Equal opportunities refers to preventing any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation or on any other similar criterion.

b) Sustainable development – meeting the present needs while thinking of those of the future generations – should be regarded from the ecologic, economic and social point of view. In designing and implementing the project, the applicants should aim at a balanced use of resources, appropriate choice of logistics and raising public awareness on sustainable development issues (e.g. by inserting messages on printed materials or in the e-mails).

c) Climate change – a great concern at global and EU level – should be another key element of which the applicants should be aware of. The main factors contributing to climate change are greenhouse gases deployed in the atmosphere from energy and non-energy sources. Projects should at least avoid making use of such sources and additionally support the fight against climate change.

The observance of the horizontal themes shall be taken into account during projects evaluation. Projects which propose explicit measures with positive impact on one or more of them, even in terms of raising public awareness, shall be awarded additional points.

1.3.1. Environmental monitoring indicators

Indicators

• Contribution to energy efficiency, renewable energy use and reduction of greenhouse gas (GHG) emissions

• Contribution to efficient water supply, waste-water treatment and water reuse

• Application of green public procurement in a systematic manner

• Contribution to efficient waste management, re-use and recycling

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Applicant’s Guide August 2015

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www.romania-serbia.net Indicators

• Contribution to the development of green infrastructures including sound management of Natura 2000 sites on the Romanian side and equivalent natural protected areas on the Serbian side;

• Contribution to sustainable mobility and intermodality;

• Contribution to enhanced awareness of adaptation to climate change and risk prevention;

• Contribution to more employment opportunities, education, training and support services in the context of environment protection, risk management and sustainable development etc.

The above environmental criteria will be used within the project evaluation and selection and later for environmental monitoring of the project. Monitoring and summarising the single projects´ monitoring results, will provide an overview of the overall environmental effect on the relevant environmental issues.

1.3.2. Horizontal themes monitoring indicators

Is the operation contributing to the promotion of sustainable development? (See section I.3) Is the operation contributing to the promotion of equal opportunities and non-discrimination?

 The inclusion of relevant indicators related to the profile of persons involved in the projects, e.g. on gender, ethnic origin, age, occupation and education level, disabilities etc.,

 The evaluation of actions for the involvement of potentially discriminated groups in Programme Implementation e.g. related to flexible working arrangements, deputy arrangements, provisions for persons with disabilities, etc.)

 Consideration of the different needs and intended and unintended impact of the project on different groups (e.g. vulnerable population with disabilities, minorities, returning and internal migrants, minorities of different religious beliefs and people of different sexual orientation etc.);

 Consideration of equal opportunities and non-discrimination in project implementation, e.g. concerning the establishment of an Equal Opportunities Action Plan, definition of equal opportunity targets, provision of equal opportunities training or diversity management courses, provision of supporting services;

 Provisions for an equal access to the operation’s outputs and benefits for all members of the society;

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 Counting the number of women and men participating in project;

 Assessing the number of women and men benefiting from funding;

 Assessing how much support and for which projects women and men are receiving funding (broken down by types of project).

 Consideration of the different starting positions of the target groups based on sex and gender (existence and extent of differences between women and men and the implications of these differences for the specific policy area etc.) and intended and unintended impact of the operation project on those groups in the project concept;

 Consideration of equality between men and women in project implementation, e.g.

through inclusion of gender mainstreaming provisions, concerning the special needs and circumstances of men and women employees, introducing flexible, individual arrangements for female employees including childcare, information about these provisions in advertisements for job opportunities.

1.4. Programme implementation structures

Managing Authority - the Romanian Ministry of Regional Development and Public Administration is responsible for managing and implementing the Programme in accordance with the principle of sound financial management.

National Authority - the Serbian European Integration Office is the counterpart of the Managing Authority being responsible for programming, planning and implementing the Programme in Republic of Serbia, ensuring national co-financing at programme level, first level control for the expenditures made in Republic of Serbia.

Audit Authority – within the Court of Accounts of Romania. The main responsibilities of the AA consist in ensuring that audits are carried out to verify the effective functioning of the management and control system and ensuring that audits are carried out on operations on the basis of an appropriate sample to verify expenditure declared. The Audit Authority for the programme shall be assisted by a group of auditors which will assist the Audit Authority in carrying out its duties.

Joint Monitoring Committee (JMC), is formed by representatives from both participating states in the Programme (representatives from the national, regional and local level and other economic, social and environmental partners), and ensures the effectiveness and quality of the implementation of the Programme, having specific tasks related to the monitoring of the Programme. The JMC plays also a very important role in the selection of the operations, due to the fact that it approves/revises the criteria for selecting the operations financed by the Programme and is responsible for selecting the operations.

Joint Secretariat (JS) is based in Timişoara within the Regional Office for Cross-Border Cooperation Timişoara. The JS is responsible for the day-to-day implementation of the Programme according to the provisions of the implementing agreement concluded between the Managing Authority and Regional Office for Cross-Border Cooperation Timişoara and according to the provisions of national and EU legislation. The JS is responsible for fulfilling all the tasks delegated by the MA for the implementation of the Programme with regard to the JMC secretariat, project generation, evaluation and selection of the projects, technical, economic and financial monitoring and control of the projects, information and publicity.

Antenna of the JS is located in Vršac, Republic of Serbia, having as its main role to serve as a local contact point for Serbian potential beneficiaries/ project partners and to disseminate

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information at regional level, to support projects development in the Republic of Serbia.

1.5. Call for proposals financial allocation

The total amount allocated (27,867,906- IPA funds) to this call for proposals, which is broken down as follows:

Priority axis Union support Total funding*

Co-financing rate

Priority axis 1 -

Employment promotion and services for an

inclusive growth 6,391,029 7,518,858 85.00%

Priority axis 2 - Environmental protection and risk

management 7,431,442 8,742,873 85.00%

Priority axis 3 - Sustainable mobility

and accessibility 7,431,442 8,742,873 85.00%

Priority axis 4 - Attractiveness for

sustainable tourism 6,613,993 7,781,169 85.00%

*Includes the contributions from state budgets, local budgets and contribution of partners from both countries.

The amount to be contracted from the total financial allocation of the present call will be decided by the JMC in connection with the results of the call for proposals for strategic projects.

The IPA contribution will be allocated for the reimbursement of eligible expenses, duly justified and certified.

Within one single project, the IPA financing for each partner from Republic of Serbia and Romania is 85% of the eligible budget for each partner.

For Republic of Serbia, the remaining 15% must be covered by the partner; for Romania, the remaining 15% can be covered by the national public funds and the partner. National public co-financing at the state level in Romania shall be provided by the MRDPA to project partners from Romania participating in approved projects.

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Based on the subsidy contract concluded between the Lead Beneficiary and the MA, the Lead Beneficiary (Romanian or Serbian) may receive an advance payment in an amount of maximum 15% from the value of the subsidy contract.

The advance shall be paid out of the IPA funds received from the EC as pre-financing at programme level and shall be granted, at the written request of the Lead Beneficiary, according to the provisions of the subsidy contract.

1.6. State aid

¹

State aid refers to financial support that can distort competition and intra-community market trade. In order to meet the requirements of the European Commission and in order to allow a smooth implementation of the Programme and its approved projects, in the framework of Interreg - IPA CBC Romania – Serbia, State Aid is not permitted.

For state aid to take place the recipient of project funding must be an undertaking. The term

"undertaking" is in this context used in a wide sense as any entity which has an activity of an economic nature and which offers goods and services on the market, regardless the legal form and the way of financing of this entity. Also if an entity is not profit-oriented, state aid rules will apply as long as it competes with companies that are profit-oriented. Therefore, not only private companies are subject to state aid rules but also public authorities if they carry out an economic activity on the market.

The next step in establishing state aid is to use the set of four criteria that all have to be fulfilled cumulatively in order to be state aid. Two of those (the existence of state resources and selectivity) always apply for Interreg - IPA CBC Romania – Serbia programme projects.

Thus state aid exists if the remaining these conditions are also met:

 Economic advantage: The project support is an economic advantage that the undertaking would not have received in the normal course of business. Such an economic advantage can be assumed if the undertaking does not provide for any market-driven consideration (e.g. it promises to create jobs in return for state funds received or it buys land from the state for a price lower than the market price).

o an indirect advantage may also be granted (indirect State aid) if the funds received by entities which are direct beneficiaries of the Programme are channeled to identifiable undertakings/groups of undertakings (e.g. if the funds received by a direct beneficiary are used for building up infrastructure that is to be used for economic activities and the operation of this infrastructure is not granted through a public, open, unconditional tender, or if the funds are used by the beneficiary to train the employees of certain undertakings etc.).

 Effect on competition and trade: This criterion is already fulfilled if an aid has potential effect on competition and trade between Member States. It is sufficient if it can be shown that the beneficiary is involved in an economic activity and that it operates in a market

1 In accordance with Article 26 of the Commission implementing regulation (EU) No 447/2014 on the specific rules for implementing Regulation (EU) No 231/2014 of the European Parliament and of the Council establishing an Instrument for Pre- accession assistance (IPA II): “beneficiary’ means a public or private body, responsible for initiating or initiating and implementing operations; in the context of State aid schemes (as defined in Article 2(13) of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (1)), the term ‘beneficiary’ means the body which receives the aid, as far as cross- border cooperation programmes involving Member States are concerned.” It means that State aid rules must be applied under the IPA II Programme both in Member States and IPA II Country.

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in which there is trade between Member States. As a general rule, no effects on competition and trade are to be expected in case of purely local activities or legal monopolies.

Considering the activities financed under the current call, activities for which the beneficiaries do not act as economic operators and for which there are no considerations to assume that the competition will be distorted, the projects shall not be subject to state aid rules.

To this end, the following provisions shall be fulfilled by each project:

 All expenditure must be made according to the relevant laws on public procurement in force at the time of the grant award. This condition applies to all partners (e.g. public administration bodies, NGOs). The procurement procedure (performed by either Romania/Serbian partners) has to be open (to allow all interested and qualified bidders to participate in the process), transparent, sufficiently well-publicized, non-discriminatory and unconditional. When a tender procedure complies with these principles, it can be presumed that the transactions are in line with normal market conditions. For direct procurements the market price level is observed (try to refer to any well-known suppliers available at national level - print screen from websites are accepted and recommended).

 The project must not create an economic advantage to an economic operator/undertaking. The undertakings are defined as entities engaged in an economic activity, regardless of their status and the way in which are financed. The classification of a particular entity as an undertaking thus depends entirely on the nature of its activities. This general principle has three important consequences:

➢ First, the status of the entity under national law is not decisive. For example, an entity that is classified as an association or a sports club under national law may nevertheless have to be regarded as an undertaking within the meaning of Article 107(1) of the Treaty. The only relevant criterion in this respect is whether it carries out an economic activity.

➢ Secondly, the application of the state aid rules as such does not depend on whether the entity is set up to generate profit.

➢ Thirdly, the classification of an entity as an undertaking is always relative to a specific activity. An entity that carries out both economic and non-economic activities is to be regarded as an undertaking only with regard to the former. Any activity consisting in offering goods and services on a market is an economic activity.

• A service that is reimbursed at market price is not conveying an advantage. All studies or other results of the non-investment research and development projects shall be made available for free to all interested individual or legal persons, in a non-discriminatory way.

In the field of research & development & innovation activities, the following activities are generally of a non-economic character:

a) primary activities of research organisations and research infrastructures, in particular:

✓ education for more and better skilled human resources. Public education organised within the national educational system, predominantly or entirely funded by the State and supervised by the State is considered as a non-economic activity

✓ independent R&D for more knowledge and better understanding, including collaborative R&D where the research organisation or research infrastructure engages in effective collaboration

✓ wide dissemination of research results on a non-exclusive and non-discriminatory basis, for example through teaching, open-access databases, open publications or open software.

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b) knowledge transfer activities, where they are conducted either by the research organisation or research infrastructure (including their departments or subsidiaries) or jointly with, or on behalf of other such entities, and where all profits from those activities are reinvested in the primary activities of the research organisation or research infrastructure.

The non-economic nature of those activities is not prejudiced by contracting the provision of corresponding services to third parties by way of open tenders.

Where a research organisation or research infrastructure is used for both economic and non- economic activities, public funding falls under state aid rules only insofar as it covers costs linked to the economic activities. Where the research organisation or research infrastructure is used almost exclusively for a non-economic activity, its funding may fall outside state aid rules in its entirety, provided that the economic use remains purely ancillary, that is to say corresponds to an activity which is directly related to and necessary for the operation of the research organisation or research infrastructure or intrinsically linked to its main non- economic use, and which is limited in scope. This should be considered to be the case where the economic activities consume exactly the same inputs (such as material, equipment, labour and fixed capital) as the non-economic activities and the capacity allocated each year to such economic activities does not exceed 20 % of the relevant entity’s overall annual capacity.

Making the project results available only for certain individual or legal persons is strictly forbidden! Also, the project results should not create an economic advantage to a certain undertaking/activity/the production of certain goods.

 Any other categories of services, apart from those above mentioned, which are relevant and included in the projects financed by the respective ETC programme, shall be provided freely or at market value.

Making the project results available only for certain individual or legal persons is strictly forbidden!

 The existence of state aid is excluded where the State acts by exercising public power or where authorities emanating from the State act in their capacity as public authorities. Any entity may be deemed to act by exercising public powers where the activity in question is a task that forms part of the essential functions of the State or is connected with those functions by its nature, its aim and the rules to which it is subject. Generally speaking, unless the Member State concerned has decided to introduce market mechanisms, activities that intrinsically form part of the prerogatives of official authority and are performed by the State do not constitute economic activities. Examples are activities related to: the army or the police; air navigation safety and control; maritime traffic control and safety; anti-pollution surveillance and the organisation, financing and enforcement of prison sentences.

The State Aid Self-Assessment Form – Annex A.7. of the Application Form will be duly completed.

If the project self-assessment shows a possibility of state aid, the project should consult the JS at the earliest stage possible. The JS will support the project applicants in the assessment of the existence of state aid and guide on how to proceed.

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If during the check following grant award and corresponding national contribution, the relevant Authority (Managing Authority, Audit Authority or the relevant services of the European Commission) verifies an irregularity in the rules of the granting, in contrast with applicable regulation on the State aid or an irregularity in the grant award, it will be possible at Programme level to make a financial correction in compliance with the specific Community Regulation in force at the time of the grant award, and the part of “illegal aid” shall be subject to the recovery procedure.

2. RULES OF THE CALL FOR PROPOSALS

2.1. Type of call for proposals

The financing under the Interreg - IPA CBC Romania – Serbia Programme shall be made available to potential beneficiaries through a competitive process. The Managing Authority together with the National Authority and the Joint Secretariat are launching the present call for proposals with deadline for submitting the applications. Nevertheless, the applicants may submit their applications, until the mentioned deadline.

These specific guidelines are tailored for the first call for proposals. The present call for proposal, under the present guidelines, has the goal of establishing solid partnerships in the eligible area by financing both “soft” projects (Project that does not have an infrastructure component or which does not grant more than half of its total eligible budget to purchase of equipment) and “hard” projects/ investment projects (Project that has an infrastructure component or which grants more than half of its total eligible budget for the purchase of equipment).

All projects must observe the relevant national provisions regarding the elaboration, financing and approving (see Annex G- Relevant national and EU legislation).

The maximum number of beneficiaries in a project will be five (5), including the Lead Beneficiary!

2.2. Eligibility Criteria

The submission of projects is open to all potential beneficiaries that meet the eligibility criteria set-out below. These eligibility criteria shall apply for the entire programme duration.

However, please note that the Joint Monitoring Committee may decide to change these eligibility criteria for the forthcoming calls for proposals.

In order to be eligible for funding under the programme, a project should meet all three criteria set out below: the eligibility of applicants, activities and expenditures.

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2.2.1. Eligibility of applicants

➢ In order to be eligible for a grant, applicants must fulfil the following criteria:

❖ Be compliant with the provisions of art. 40 of the Commission Implementing Regulation No. 447/2014 and art. 8 and 10 of the Regulation No. 236/ 2014;

❖ Be legally established according to national legislation of the state on whose territory they are located;

❖ Be legally organized as:

 Regional and local public authorities (County Councils, Local Councils/ Municipalities, etc.)

 National/ provincial/ regional public authorities functioning in the eligible area;

 Other public bodies governed by public law registered and functioning in the eligible area (Prefectures, health care institutions, educational institutions);

 Offices – branches of National/Regional Public Authorities active on the themes of the priority in the eligible area (registered and functioning in the eligible area);

 Non – profit bodies and NGOs;

 Religious organizations, legally established according to the national legislation in force;

 Chambers of Commerce;

 Museums, cultural, sports, touristic institutions;

❖ Be directly responsible for the preparation and management of the action together with their partners and not acting only as an intermediary;

❖ All projects must have at least one partner on the other side of the border, which must fulfill the same eligibility criteria.

❖ The maximum number of partners in one operation is 5 (five). Not observing this provision will lead to the rejection of applications.

❖ Have stable and sufficient sources of finance to ensure the continuity of their organization throughout the project and, if necessary, to play a part in financing it;

❖ Be experienced and able to demonstrate their capacity to manage their share of activities of the project for which the subsidy is requested;

❖ Be experienced and able to demonstrate their knowledge of the eligible area of the Programme

❖ Have not received financing support from public funds in the past 5 years before the deadline for submitting the applications under this call for proposals for the same type of operation in terms of objectives, activities and results.

❖ For infrastructure actions, the applicants must prove they have the legal right to perform the project activities in the specific location, through the following documents which must be provided by the applicant and that the following rules are observed:

1. FOR PUBLIC AUTHORITIES and other PUBLIC BODIES:

- the legal act (e.g. government decision, law, government ordinance, decision of local counties, etc.) stating the fact that the land and/or building/ item of infrastructure is in concession/on long term contract/ in administration/ bailment contract/rent contract/

publicly owned by the applicant/ they hold a right under the real property law over the land and/ or building/ item of infrastructure;

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- it must be proved that the land and/ or building/ item of infrastructure is publicly owned or that the duration of the concession/ long term contract/ administration contract/ bailment contract/ rent contract/ any other right under the real property law is for at least 5 years after the completion of the operation and that the owner has given it’s written agreement saying that the applicant may perform the infrastructure actions on/ in the relevant land/

building/ item of infrastructure. Such a contract should last for at least 5 years after the completion of the operation.

- declaration from the land and/or building/ item of infrastructure owner that the land and/or building/ item of infrastructure is:

o free of any encumbrances;

o not the object of a pending litigation;

o not the object of a claim according to the relevant national legislation.

- documents related to the registration of the land and/or building/ item of infrastructure in the relevant public registers.

2. FOR NGOs and other non-profit bodies

- property/ ownership document/ any other right under the real property law for the land and/or building/ item of infrastructure;

- documents related to the registration of the land and/or building/ item of infrastructure, by the NGO, in the relevant public registers.

- the applicant holds the land and/or building/ item of infrastructure under a concession/on long term contract/ in administration/ bailment contract/ rent contract/ any other right under the real property law.

- it must be proved that the concession/ long term contract/ administration contract/

bailment contract/ rent contract/ any other right under the real property law is for at least 5 years after the completion of the operation and that the owner has given it’s written agreement saying that the applicant may perform the infrastructure actions on/ in the relevant land/ building/ item of infrastructure. Such a contract should last for at least 5 years after the completion of the operation.

- Declaration from the land and/or building/ item of infrastructure owner that the land and/or building/ item of infrastructure is:

o free of any encumbrances;

o not the object of a pending litigation;

o not the object of a claim according to the relevant national legislation.

Partnerships not involving strong commitment and contributions from the part of all partners shall be rejected!

Considering this, partnerships must observe at least three out of the four cooperation criteria (joint development, joint implementation and joint financing criteria are compulsory while joint staffing is optional), as mentioned in art. 12, para.4 of the 1299/2013).

Political parties are not eligible as either applicant or partner!

Potential applicants shall be excluded from participation in calls for proposals if:

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(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, or persons having powers of representation, decision making or control over them, have been convicted of an offence concerning their professional conduct by a judgment of a competent authority of a Member State which has the force of res judicata;

(c) they have been guilty of grave professional misconduct proven by any means which the contracting authority can justify, including by decisions of the EIB and international organisations;

(d) they are not in compliance with their 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 contract is to be performed;

(e) they, or persons having powers of representation, decision making or control over them, have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity, where such illegal activity is detrimental to the Union's financial interests;

(f) they are subject to an administrative penalty referred to in Article 109(1) of the EU Financial Regulation 966/2012.

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

(g) are subject to a conflict of interests; the conflict of interests represents any circumstances that may affect the evaluation or implementation process, in an objective and impartial manner. Such circumstances may result from economic interests, political or national preferences or family connections.

(h) are guilty of misrepresentation in supplying the information required by the Managing Authority/ Joint Secretariat as a condition of participation in the call for proposals or fail to supply this information which might have led to a different decision of the evaluators/

Managing Authority during the evaluation process;

(i) have attempted to obtain confidential information or influence the evaluation bodies or the Managing Authority during the evaluation process of current or previous calls for proposals;

In the cases referred to in points (a) to (i) above, the exclusion applies for a maximum period of ten years, from the time when the infringement is established or from the date of notification of the judgment.

In the signed “Declaration of eligibility” included in the application form, applicants must declare that they do not fall into any of the above categories (a) to (i).

The Managing Authority or the Joint Secretariat may request, at any time, additional documentary evidence and argumentations regarding the eligibility of applicants.

Indicative examples of potential applicants²:

2 Conflict of interest must be avoided. It is essential that there is a clear separation of functions between the part of organization applying for funding and the people from the same organization involved in the assessment (i.e independent evaluators). They cannot be directly subordinated to one another.