Gazdasági Ismeretek | Gazdaságpolitika » The Outline Applications for the Swiss Hungarian Cooperation Programme in Hungary

Source: http://www.doksinet Annex 2 16th June 2008 Annex 2 GENERAL INFORMATION AND GUIDE TO OUTLINE APPLICATIONS FOR THE SWISS-HUNGARIAN COOPERATION PROGRAMME IN HUNGARY National Development Agency xxx October – xxx December 2008 Only the Hungarian version is authentic! Source: http://www.doksinet Annex 2 Table of contents TABLE OF CONTENTS. 1 1. GENERAL 2 1.1 BACKGROUND 2 1.2 INTRODUCTION 2 1.3 OBJECTIVES, PRIORITIES AND FOCUS AREAS 3 1.4 THE RATE AND AMOUNT OF THE GRANT IN GENERAL 4 1.5 SUBMISSION OF APPLICATIONS 5 1.6 CONTACTS 6 1.7 EVALUATION AND SELECTION OF APPLICATIONS 6 1.71 Registration and acceptance of applications 6 1.72 Process of evaluation of the applications 6 1.73 Planned stages of evaluation 8 1.8 ELIGIBLE APPLICANTS 8 1.9 COSTS 9 1.91 General information about eligible costs and the budget 9 1.92 Eligible costs of Individual Projects 9 1.93 CO-FINANCING 12 1.94 ADVANCE PAYMENT 12 -1- Source: http://www.doksinet Annex 2 1. GENERAL The

present guideline has been laid down in accordance with the Framework Agreement between the Swiss Federal Council and the Government of Hungary concerning the implementation of the SwissHungarian Cooperation Programme to reduce economic and social disparities within the enlarged European Union, entering into force with Gov. reg No, 348/2007 (XII20) 1.1 Background Switzerland agreed to grant a non-reimbursable Contribution towards the reduction of economic and social disparities within the enlarged EU of up to CHF 130,738 million to Hungary for a commitment period of five years and a disbursement period of ten years, starting from the approval date of the contribution by the Swiss Parliament, which is 14 June 2007. The parties shall promote the reduction of economic and social disparities within the enlarged EU through projects mutually agreed upon between the parties (Federal Department of Foreign Affairs, acting through the Swiss Agency for Development and Cooperation (SDC) and the

Federal Department of Economic Affairs, acting through the State Secretariat for Economic Affairs (SECO)) and in line with the Memorandum of Understanding with the EU and the Bilateral Framework Agreement for the Swiss-Hungarian Cooperation Programme. Annex 1 indicates the focus areas and the regional focus of the Swiss-Hungarian Cooperation Programme. The Framework Agreement and the annexes can be found on wwwswisscontributionhu 1.2 Introduction According to the application procedure, the selection of projects to be supported has two phases. In the first loop, that is, the present phase, the applicant submits a project outline which should include a short description of the fundamental features of the project. The instrument of describing the project outline is the „Outline Application Form” (Annex 1), which contains simple, directed questions in order to understand the project. After the deadline for receiving the applications, the project outline will be evaluated. The

evaluation is based on the criteria laid down in the document of Evaluation and scoring of Outline Applications (Annex 3.) Information on the evaluation procedure and the organisations involved in the evaluation are given under point 1.72 On the basis of the evaluation, the selected project outlines will be forwarded to Switzerland. Switzerland will notify the NCU regarding the decision to support the selected project. In case of a successful first loop, a final project proposal has to be worked out including all the necessary authorisations/permissions and background materials. Applicants may apply together with the project outline for funds to support the development of the final project proposal (Project Preparation Facility). With the final project proposal the project has the opportunity to apply in the second loop of the application procedure for the non-refundable support from the Swiss-Hungarian Cooperation Programme. At the end of the second loop a final decision on the

financing of the project will be made by Switzerland. -2- Source: http://www.doksinet Annex 2 Present guide gives advice on the overall application procedure for the Swiss-Hungarian Cooperation Programme. By following the procedures described below, the applicant will receive help to streamline the application, ensuring that there is a sound basis for the appraisal of the application and speed up the decision-making process. Principles The Swiss-Hungarian cooperation is guided by the following principles: − Transparency: Transparency and openness are key to all cooperation activities and are binding at all levels. Special emphasis shall be given to transparency in project selection, contract awarding and financial management. − Social inclusion: Cooperation activities aim at including socially and economically disadvantaged individuals and groups in the opportunities and benefits of development. − Equal opportunities and rights: Cooperation activities aim at increasing

women’s and men’s opportunities to exercise their rights equally through a gender-based approach. − Environmental sustainability: Cooperation activities aim at incorporating requirements of environmental sustainability. − Commitment by all stakeholders: All institutions and decision-makers involved in the SwissHungarian Cooperation Programme are committed to an efficient and effective implementation of the agreed Projects. − Subsidiarity and decentralisation: Cooperation activities aim at including considerations of subsidiarity and decentralisation primarily in Projects at the municipal and regional levels. 1.3 Objectives and priorities Objective: The Swiss-Hungarian Cooperation Programme pursues two objectives: - To contribute to the reduction of economic and social disparities between Hungary and the more advanced countries of the enlarged European Union (EU); and - To contribute within Hungary to the reduction of economic and social disparities between the dynamic urban

centres and the structurally weak peripheral regions. The Swiss-Hungarian Cooperation Programme includes national and trans-national Projects that support a sustainable, economically and socially balanced development. Grants up to 4,5 million CHF shall be available for projects falling within the priority area: RESEARC AND DEVELOPMENT – KNOWLEDGE BASED ECONOMY The types of eligible projects are the following: − Joint research projects and institutional partnerships in applied research in the area of environmental technology (including energy issues) and health/life sciences – with a financial allocation up to 3 million CHF; − Sabbatical, academic exchange in the area of social science – with a financial allocation up to 1,5 million CHF. All activities must be in line with the priority area determined above. -3- Source: http://www.doksinet Annex 2 Expected number of supported projects: 3  joint research projects and institutional partnerships and 1 or 2 sabbatical,

academic exchange projects. In the application form (Annex 1), the applicant will be asked to indicate if the project is eligible for financing under Operative Programme(s). If yes, reasons should be stated for not implementing the project from EU funds. 1.4 The rate and amount of the grant in general Grant rate The Contribution, in the form of grants, may not exceed (a) 60% of the total eligible costs for fundamental research; (b) 50 % of the eligible costs for industrial research; (c) 25 % of the eligible costs for experimental development; (d) 60% of the total eligible costs for sabbatical/academic exchange projects, except in the case of Projects receiving additional financing in the form of budget allocations from national, regional or local authorities, in which case the Contribution may not exceed (a) 85% of the total eligible costs for fundamental research; (b) 50 % of the eligible costs for industrial research; (c) 25 % of the eligible costs for experimental development;

(d) 85% of the total eligible costs for sabbatical/academic exchange projects, in compliance with applicable state aid rules. Please note that joint research projects may fall under any of the types given above (fundamental research or industrial research or experimental development), while institutional partnerships must be in the field of applied research (fundamental research is excluded). The amount of the Swiss contribution may be divided between the Hungarian and the Swiss party as agreed, however the sum given to the Swiss partner cannot exceed 50% of the total amount. If according to 87. (1) of EC Treaty, the Executing Agency is receiving aid granted through state resources from the Swiss-Hungarian Cooperation Programme, the support can be granted only in line with the Community rules on state aid. Applicable State aid rules are: - Commission Regulation (EC) No 1628/2006 on the application of Articles 87 and 88 of the Treaty to national regional investment aid.(OJ L 302/29

01112006) - Community guidelines on State aid for environmental protection (2001/C 37/03) - Paragraph d of Subsection 3 of Article 87 of the Treaty establishing the European Community - Commission Regulation (EC) No 2204/2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment (OJ L 337, 13.122002) -4- Source: http://www.doksinet Annex 2 - Community framework for State aid for research and development and innovation (2006/C 323/01) - Commission Regulation (EC) No 800/2008 on declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (OJ L 214, 06.082008) - Commission Regulation (EC) No 68/2001 on the application of Articles 87 and 88 of the EC Treaty to training aid (OJ L 10, 13.012001) - Commission decision No 842/2005 on the application of Article 86 (2) of the EC Treaty to State aid in the form of public service compensation granted

to certain undertakings entrusted with the operation of services of general economic interest (OJ L 312/67, 29.112005) - Commission Regulation No 70/2001 on the application of Articles 87 and 88 of the EC treaty to State aid to small and medium-sized enterprises. Regarding all other questions not specified, the rules outlined in Guide to Financial Issues relating to FP7 Indirect Actions apply. The minimum and maximum amount of grant The amount of grant assistance awarded under the Swiss-Hungarian Cooperation Programme cannot be less than CHF 750 000 and cannot be higher than CHF 1 250 000 for each project in case of joint research projects and institutional partnerships; and cannot be less than CHF 500 000 and cannot be higher than CHF 1 000 000 for each project in case of sabbatical, academic exchange projects. 1.5 Submission of applications Applications should be submitted to the National Development Agency (NDA). The Outline Application Form must be completed both in Hungarian

and English language. No changes should be made to the original form of the electronic version of the Outline Application Form submitted. Please be aware that official translation is not needed. Both Hungarian and English versions of the Outline Application Forms shall be submitted in one printed original and in one printed copy, furthermore, in an electronic form (CD). The submitted outline application will be retained in each case. Please make sure and certify in a statement that the hard copy is identical to the electronic version, furthermore, that the Hungarian version is identical to the English version. With the present declaration, the applicant acknowledges that the applicant has no right to appeal on the consequences of any possible difference between the two linguistic versions of the project and that all the consequences are to be born by the applicant. Both Hungarian and English versions of hard copies must be officially signed on behalf of the applicant organization (in

the way as it is used by the representative in official proceedings). In case of any difference between the printed and electronic versions of the application form, the original Hungarian, printed, and signed application will be taken into consideration. -5- Source: http://www.doksinet Annex 2 In the interest of better clarity, please submit the printed version of the application stapled without free pages, numbered continuously. Page numbers can be written by hand as well Applications must be received in a sealed, intact envelope/box as letter/parcel by registered and receipted mail to the address indicated below: National Development Agency Managing Authority for International Co-operation Programmes 1077 Budapest, Wesselényi u. 20-22 Applications sent by any other means (e.g by fax or by e-mail, hand delivery, express messenger, etc.) or delivered at other addresses will be rejected The envelope/bow must bear the full name and address of the applicant, and include the

sentence: “Outline Application Form for the call for proposal of the Swiss-Hungarian Cooperation Programme (Focus Area 7 – Objective 2)". There is a continuous submission from xxx October to xxx December 1.6 Contacts Questions about the call for proposal can be sent via e-mail to nepf.swiss@mehhu The questions will be answered in 10 working days by e-mail/ or upon request by fax. Frequently asked questions will be published on the following website: www.swiss-contributionhu 1.7 Evaluation and selection of applications 1.71 Registration and acceptance of applications Applications should be sent to the place and in the way as indicated under point N0 1.5 of the given Application Form User Guide, to the National Development Agency where the application will be registered and assigned with registration number. The applicant will not be informed about the registration of the application. However, in cases of a submission - after the application deadline and/or - with non-postal

delivery and/or - without signature and/or - of an application either in Hungarian or English (i.e not in both languages) the outline application will be refused automatically, about which the applicant will be informed by the National Development Agency. Afterwards, the registrated applications will be sent to technical evaluation. A list of the name of these applications will be put on the website of www.swiss-contributionhu 1.72 Process of evaluation of the applications -6- Source: http://www.doksinet Annex 2 The evaluation of outline applications takes place after the deadline for receiving the applications. First, the National Development Agency (NDA) undertakes a formal check (see 1.71) Project Outlines that don’t pass the formal check will not be assessed and scored Afterwards, -in the second loop- the National Development Agency involves independent assessors (in case of sabbatical/academic exchange projects) or peer reviewers (in case of joint research projects and

institutional partnerships) in the evaluation process, based on the criteria laid down in the present application guidelines. During the evaluation process questions may arise on the assessors´ side, as regards which the NDA might ask the contact person named in the application for additional information. The list of projects ranked by the average of the points given by the assessors is being discussed in the course of a Screening Committee meeting. The NDA informs the Screening Committee about the result of the formal check. If necessary, the Screening Committee can have access to the full set of project outlines the NDA received. The Screening Committee selects project outlines taking into account the independent assessors’ evaluation. The Project applicants can be requested to provide a more detailed presentation of their concept if deemed necessary. This request can be communicated via the NDA. The evaluation of the project outlines (written procedure and Screening Committee

meeting) is carried out by the representatives of the following institutions: - − National Development Agency (1 person) Office of the Minister without Portfolio responsible for Research and Development (1 person) Ministry of Finance (1 person) Hungarian Academy of Science (1 person) Hungarian Rectors´ Conference (1 person) Ministry of Education and Culture (1 person) Representative of the civil society (1 person) Private Sector Representative (1 person) Swiss Embassy as observer (1 person) The Screening Committee recommends a ranked list of project outlines to be further developed. Further steps after the process of the Hungarian evaluation: 1. Submission of the supported Project outlines If accepted, submission of the Project outlines with a cover letter comprising a description of the selection process to the Swiss Embassy. Formal check is done by the Swiss Embassy and submission of the Project outline with the cover letter of the NDA to Switzerland. 2. Final decision on

Project outline Within three months Switzerland shall officially communicate its decision to the NDA. Three categories of decisions are possible: 1. approved 2. approved with conditions 3. not approved -7- Source: http://www.doksinet Annex 2 The selected project outlines – together with all necessary permissions and background material – can be eligible in the second loop of the application process for applying for non-refundable grants provided by the Swiss-Hungarian Cooperation Programme. Positive decision in the first round of the application process means no automatic positive decision in the second phase. 1.73 Planned stages of evaluation The following activities will come up during the evaluation of applications: registration, acceptance, technical evaluation, preparing a list of applications proposed for further elaboration, feedback towards the applicants. Aspects of evaluations of the grant assistance are laid down in Annex 3. 1.8 Eligible applicants Research and

educational institutions constituted as legal entities and seated in Hungary are eligible to apply as project owners, provided that they are in possession of a common declaration of intent signed by both the Hungarian and the Swiss partner institution. The template is attached as Annex 4 More information on how to look for non-commercial Swiss partners can be found at the following website: http://www.erweiterungsbeitragadminch/de/Home/Projektauswahl/Nicht kommerzielle Partner in der Schweiz Partners can participate in the project. The applicant can participate in other projects as partner. Each applicant is only entitled to submit one outline application through the present call for proposals. Exclusive causes: Potential applicants may not be awarded grants from the Swiss-Hungarian Cooperation Programme if: - they are bankrupt or being wound up, are having their affairs administered by the courts; - they have entered into a Grant Contract within 3 years connecting to public finance

grants, and they have not fulfilled their obligations relating to the payment of social security contributions; - they have not fulfilled obligations relating to the payment of taxes, have any public due in excess of 60 days, except when instalments are permitted by authorities; - they obligated payment of fees within 2 years for having employees without announcement or working permit; - their activities or project are not in line with the environmental or any other relevant regulations; - they are out of authority permit which is necessary for practicing the activity; -8- Source: http://www.doksinet Annex 2 - they supply false data, which can affect the financial, professional matter of the tender, during submission of tender or its considering; Please, take into consideration that in cases of those project outlines that are recommended for further elaboration, the above-mentioned requirements will have to be fulfilled in the application procedure of the second loop. The

non-existence of the exclusive causes will have to be justified by relevant documents. Please be aware that the projects outlined in the present application form must serve public interest and shall not generate profit. 1.9 Costs 1.91 General information about eligible costs and the budget The currency of the budget is Swiss francs. Please give the amount of the grant applied, the amount of expenditures, own contribution and all information on the budget in Swiss francs. The current Swiss francs exchange rate is for the present call for outline applications: 150,00 HUF/CHF. Starting date in relation with the eligibility of expenditures: Unless a later date is provided in the Project Agreement, expenditure incurred shall be eligible for assistance as of the date on which the Project Agreement is signed by all parties. When planning the implementation schedule of the project, please take into consideration that the project proposals submitted under the present call, are foreseen to be

accepted as a project in the 4th quarter of 2009. End of the eligibility period: The final date for eligibility of costs corresponds with the end of the Project as defined in the Project Agreement. It shall be no later than 14 June 2017 The final date for eligibility refers to the dates of actual payments of invoices issued prior to or on the said date. For expenditure to be eligible, acceptable disbursement requests must have been received by Switzerland no later than 6 months after the final date for eligibility. Disbursement requests received at a later date or deemed not acceptable by the donor will not constitute a basis for disbursement. Please be aware of that at the time of signing the Project Agreement an updated exchange rate will be used. 1.92 Detailed eligible and non-eligible costs The eligible costs shall be the following: (a) personnel costs (researchers, technicians and other supporting staff to the extent employed on the research project); (b) costs of instruments and

equipment to the extent and for the period used for the research project; if such instruments and equipment are not used for their full life for the research project, only the depreciation costs corresponding to the life of the research project, as calculated on the basis of good accounting practice, shall be considered eligible; -9- Source: http://www.doksinet Annex 2 (c) cost of contractual research, technical knowledge and patents bought or licensed from outside sources at market prices, where the transaction has been carried out at arm’s length and there is no element of collusion involved, as well as costs of consultancy and equivalent services used exclusively for the research activity; (d) additional overheads incurred directly as a result of the research project; (e) other operating costs, including costs of materials, supplies and similar products incurred directly as a result of the research activity. Unless otherwise decided in the Project Agreement, proportionate

costs incurred by an Executing Agency (official name of project promoter in case of winner project) which are necessary and directly related to the implementation of a project and are incurred within the dates of eligibility, are considered as eligible costs. The implementation of a project shall cover all stages from starting of implementation to the completion of the approved project, including the relevant publicity measures. All expenditures, incurred by the Executing Agency responsible for implementation, must be supported by documentary evidence. The following costs shall not be eligible for grant support: expenditures incurred before the signing of the Project Agreement by all parties, interests on debt, the purchase of land and real estate and recoverable VAT. Value added tax (VAT) shall be considered eligible expenditure only if it is genuinely and definitively borne by the Executing Agency. VAT which is recoverable, by whatever means, shall not be considered eligible even if

it is not actually recovered by the Executing Agency or by the final recipient. Staff costs from research and educational institutions are eligible. However, staff costs from the Hungarian Central Government (i. e all the Hungarian central budgetary institution -except for the research and- educational institutions) can not be financed. . Staff costs of the Executing Agency are eligible if (all of the criteria together apply): - they occur entirely within the Executing Agency, - they are limited to the project implementation schedule, - they are directly attributed to the implementation of the project; and - the staff involved in the project implementation is identified personally and specifically. Other levies, taxes or charges, in particular direct taxes and social security contributions on salaries and wages, shall constitute eligible expenditure only if they are genuinely and definitively borne by the Executing Agency. Overheads may be eligible expenditure; provided that they are

based on real costs which relate to the implementation of projects financed by the Swiss Contribution and are allocated on a pro-rata basis to the project, according to a duly justified, fair and equitable method. Financial and other charges and legal expenses − Financial charges - 10 - Source: http://www.doksinet Annex 2 Debit interest charges for financial transactions, foreign exchange commissions and losses, and other purely financial expenses, are not eligible for co-financing by the Swiss Contribution. − Bank charges on accounts Where the Project Agreement/Implementation Agreement, the NCU, or national legislation requires the opening of a separate account or accounts for implementing a project, the bank charges for opening and administering the accounts, are eligible. − Professional services Fees for legal advice, notary fees, costs of technical and financial expertise, costs related to preparation of procurement, insurance, and accountancy or audit costs are

eligible if they are directly linked to the project and are necessary for its implementation. In the case of accounting or audit costs, these must also relate to requirements by the Project Agreement/Implementation Agreement, or the NCU, or national legislation. − Fines, financial penalties and expenses of litigation These expenses are not eligible. − Purchase of second-hand equipment The purchase costs of second-hand equipment are not eligible for co-financing by the Swiss Contribution. Costs are deemed to be incurred within the dates of eligibility if the costs are paid, invoiced, and the subject matter (goods, services or works) of the cost is delivered, within the said dates. 1.93 Proof of expenditure Payments effected by Executing Agencies shall normally be in the form of cash, such as bank transfers. However, overheads can also form part of the payments The Swiss Contribution’s cofinancing of a project shall nevertheless not exceed the total eligible expenditure As a rule,

costs incurred by Executing Agencies shall be supported by receipted invoices. In cases where this cannot be done, costs shall be supported by accounting documents of equivalent probative value. In addition, in cases where the implementation of a project is not subject to a competitive tendering procedure, payments by Executing Agencies shall be justified by expenditure actually paid by the body/ies concerned in implementing the project, both public and private. 1.94 Subcontracting Without prejudice to the application of stricter national rules, expenditure relating to the following subcontracts is ineligible for co-financing by the Swiss Contribution (a) subcontracting which adds to the cost of execution of the project, without adding proportionate value to it; - 11 - Source: http://www.doksinet Annex 2 (b) subcontracts with third parties or consultants in which the payment is defined as a percentage of the total cost of the project, unless such payment is justified by the

Executing Agency by reference to the actual value of the work or services provided. The subcontractors of all subcontracts shall undertake to provide the audit and control bodies with all necessary information relating to the subcontracted activities. 1.95 Co-financing The Hungarian applicant must undertake to add to the costs of the project. This is the co-financing part (= own resources + other resources) of the eligible costs of a project. Elements of co-financing part can be the following: • money in bank account • bank deposit • securities • bank credit • private loan • other support (e.g partner’s contribution) The applicant must use the amount of co-financing part during the whole duration of the project in proportion with the financial support from the Swiss Contribution. The presentation of a justification on the availability of the co-financing part, or any other substantiation is not a condition of the submission of an outline application, however, please take

into consideration that in the second phase of the application procedure the abovementioned requirements will be part of the tendering procedure. 1.96 Advance payment Please take into consideration while planning, that in the frame of the Swiss-Hungarian Cooperation Programme it is not possible to request advance payment under this focus area. - 12 -