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IPA Cross-Border Programme Serbia – Bosnia and Herzegovina

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1 IPA Cross-Border Programme Serbia – Bosnia and Herzegovina
Workshop for Potential Applicants Užice, 25 April, 2012

2 Agenda 10:00 – 10:30 Registration of participants 10:30 – 11:00
Welcome and overview of the Cross-Border Programme Serbia-Bosnia and Herzegovina 11:00 – 11:30 Introduction to calls for proposals and general information regarding guidelines for applicants 11:30 – 12:15 What is a project idea and how does the cross-border partnership work? 12:15 – 12:30 One of the successfully implemented projects from the 1st Call for Proposals presented by the Beneficiary 12:30 – 13:00 Coffee break 13:00 – 14:15 Presentation of the application form and the budget 14:15 – 15:00 Questions and Answers, Evaluation of the Workshop

3 Cross-Border Programme Serbia – Bosnia and Herzegovina 2007–2013
Total eligible area 32.982,01 km2 Total population

4 Objective and Priorities of the Programme
Overall Objective To stimulate the economies and to reduce the relative isolation of the eligible area by strengthening joint institutional networks and the capacities of human resources. PRIORITY I Social and economic cohesion through actions to improve physical, business, social and institutional infrastructure and capacity. Measure I.1 Improving the productivity and competiveness of the areas’ economic, rural and environmental resources. Measure I.2 Cross-border initiatives targeting the exchange of people and ideas to enhance professional and civic society cooperation. PRIORITY II Technical Assistance

5 Programme Management Structures
SERBIA BOSNIA AND HERZEGOVINA Operating Structure (OS) EU Integration Office of the Government of the Republic of Serbia Directorate for European Integration Joint Monitoring Committee (JMC) Oversees the programming and effective implementation of the Programme; Equal number of representatives from both countries – representatives of national, regional and local institutions; Responsible for selecting projects to be financed under the Programme. Joint Technical Secretariat (JTS) Based in Užice (Serbia) with the Antenna located in Tuzla (BiH); Responsible for the day-to-day management of the Programme; Main contact point for applicants and beneficiaries in the field.

6 Contracting Authorities
EUD to Srbija European Union Delegation to Serbia responsible for all contract and payment issues including signature of contracts. Serbia Contracting Authorities EUD to BiH European Union Delegation to Bosnia and Herzegovina responsible for all contract and payment issues including signature of contracts. B i H

7 Implementation of the Programme
1st Call for Proposals 8 July 2009 – 6 October 2009 74 applications received 19 projects financed 2nd Call for Proposals 5 September 2011 – 5 December 2011 149 applications received ??? projects financed

8 Financial Allocations 2012/2013
European Union (IPA) funding 2012 2013 Total Serbia € 1,000,000 € 2,000,000 Bosnia and Herzegovina

9 Amount of co-financing
Co-financing Rules Allocation per year 2012&2013 Grant amount Min 50% Max 85% Amount of co-financing Min 15% Max 50%

10 Size of Available Grants per Measure /2nd CfP/
Minimum and maximum grant amount Measure I.1 Improving the productivity and competiveness of the areas’ economic, rural and environmental resources € 100,000 - € 400,000 Measure I.2 Exchange of people and ideas € 20,000 - € 100,000

11 Call for Proposals Open Call
Time for submission of applications – 3 months Joint project – one application Cross-border partnership – two applicants Separate financing – two contracts Lead Functional Partner principle Pre-financing principle – 80%

12 Guidelines for Applicants
Application Form Guidelins for Applicants: Objective of the Programme and priority issues, financial allocations, eligibility of applicants and partners, types of eligible actions and costs, how to apply and procedures to follow, evaluation and selection of application, evaluation grids, conditions of the implementation upon the decision of the Contracting Authority to approve the grant. Application form: Information on the applicants and partners, concept note and full application form (objectives, activities, relevance, methodology, sustainability, capacity of the applicants, indicators, declaration of the applicants, partnership statements, logical framework, budget of the project).

13 Eligibility Criteria Eligibility of applicants
Other participants in the action Eligibility of costs Eligible actions Partnership and eligibility of partners

14 Who may Apply? (from 2nd CfP)
In order to be eligible for a grant, applicants must: Be established in Serbia when applying for the allocation for Serbia and be established in Bosnia and Herzegovina when applying for the allocation for Bosnia and Herzegovina; Be non profit legal persons established by public or private law for the purpose of public interest of specific purpose of meeting needs of general interest; Be directly responsible for the preparation and management of the action with their partners, not acting as an intermediary.

15 Categories of Applicants
Bodies and organizations, (including NGOs) for nature protection; Bodies responsible for water management; Fire/emergency services; Schools, colleges and educational and research institutions; Universities, including vocational and technical training institutions; International organizations. Regionaland local public authorities; Asocciations of municipalities; Development agencies; Local business support organizations; Tourism and cultural organisations/associations; Non-governmental organizations, including Red Cross and Red Crescent national societies; National authorities/institutions with operations in eligible area;

16 Partnership and Eligibility of Partners
Each applicant may act individually or with partner organizations; Each Applicant may have as many other partners as they consider appropriate; Partners of the Applicants must satisfy the same criteria as applicants considering their legal status; Each partner of the applicants must be established in the European Union Member State, a country that is a beneficiary of the IPA, a country that is a beneficiary of the ENPI, or Member State of the EEA. Partners may also be established in any country where reciprocal access to the EU’s external assistance is established by means of specific decision concerning a given country or a given regional group of countries; All partners must sign Partnership Statement.

17 Other Participants in the Action
Associates May play a real role in the action, but may not receive funding from the grant with the exception of per diem or travel costs; Do not have to meet the same eligibility criteria as partners. Subcontractors Neither partners nor associates and are subject to the procurement rules set out in Annex IV to the standard grant contract; The Applicant will act as the lead organisation, if selected, as the contracting party (the “Beneficiary”) for subcontracting.

18 Cross-Border Aspect The action must involve cross-border cooperation in order to be eligible, i.e. it must: Take place in the Programme area; Have effect both in the Serbian and Bosnia and Herzegovina parts of the Programme area; Foresee cooperation of the cross-border Applicants/Partners in at least one, but preferably more than one, of the following ways: Joint project development, Joint financing, Joint staffing and Joint implementation.

19 The following list is not exhaustive!
Eligible Actions The following list is not exhaustive! Development of entrepreneurship; Local and regional development; Development of small and medium size enterprises; Social cohesion; Environment protection; Exchange of people and ideas; Culture, sport, information and similar activities Feasibility studies and preparatory studies for large scale projects with major cross-border effect etc.

20 Ineligible Actions Actions concerned only or mainly with individual sponsorships for participation in workshops, seminars, conferences, congresses; Actions concerned only or mainly with individual scholarships for studies or training courses; Actions aimed at the upgrading of infrastructure and equipment in privately owned facilities; Preparatory studies or preparation of Preliminary Works Design for works carried out within the project; Actions without cross-border impact; Actions related to profit making activities; Actions linked to political parties;

21 Ineligible Actions Actions which fall within the general activities of competent state institutions or state administration services, including local government; Actions with provisions for financing the usual (routine) activities of the local organisations, especially covering their running costs; Actions confined to charitable donations; Actions which envisage to subcontract more than established percentage of the total grant amount to procure services, works and supplies (85% in the Second Call); Actions related to: - the tobacco industry (CAEN code 16), - production of alcohol distilled beverages (CAEN code 1591), - arms and munitions (CAEN code 296).

22 Project Idea Problem in the community Identification of the problem
Solution of the problem identified in the community – PROJECT

23 Project Project represents a set of interrelated activities to be executed over a fixed period and within certain costs in order to reach certain goal.

24 Project Cycle – planning of the project
Programiming Identification Formulation Implementation Monitoring and Evaluation

25 Planning vs. Writing of the Project
Planning of the project – mobilizing and organizing of time and resources for the purpose of reaching certain objectives Writing of the project – technique of presentation of the project according to procedures and demands of certain donors

26 Cross-Border Partnership
Clear cross-border effect Solving a common problem on both sides of the border Involves partners from both sides of the border: Institution/organization registered in the partner country; Partner’s activities are in line with the project.

27 Cross-Border Partnership
Applicant 1/Lead partner Partner 1 Partner 2 Partner 3 Applicant 2/Lead partner Serbia BiH

28 Project example – success story from the 1st CfP
Functional lead partner: UŽICE CHILD RIGHTS CENTRE Project: Youth Leadership for Social Cohesion and Cross-Border Cooperation

29 Writing a Project Proposal
Financial and operational capacity Relevance Effectiveness and feasibility of the action Sustainability of the action Budget and cost-effectiveness of the action

30 Financial and operational capacity
Applicants belong to institutions with experience in relevant activities; Applicants posses certain level of experience in projects of similar size and complexity; Applicants’ annual turnovers are in line with the requested donation.

31 Relevance of the project
Project application clearly defines general objective and specific objectives; Project addresses wider community problem; Target groups are clearly defined; Project directly addresses target groups solving their problems; Project has a strong cross-border cooperation.

32 Effectiveness and feasibility of action
Activities proposed are appropriate, practical and consistent with the objectives and expected results; Overall design of the action is coherent; Level of involvement of Partners and other stakeholders in the Action is satisfactory; Action plan is clear and feasible; Proposal contains objectively verifiable indicators for the outcome of the action and evaluation is foreseen.

33 Sustainability of the action
Activities will continue and can be financed from other sources; Project envisages development of concepts and knowledge which will be transferred to other institutions and regions in the future; Established partnership will continue after the end of the project.

34 Budget and cost-effectiveness of the action
Project costs correspond to the project activities; Costs are realistic and supported by documents/invoices; Cost calculation is clearly presented in the budget table and explained in the justification sheet; All costs are eligible and refer to the activities described in the proposal.

35 Logical Framework Concise presentation of the action with the purpose to enable: Quality and logical planning and defining of the action, Clear presentation of the project (to donors and to other stakeholders) and Assessment and monitoring of the implementation.

36 Logical Framework Aproach
Analysis Phase Planning phase Stakeholders analysis Logical framework creation Problem analysis Activity planning Objectives analysis Resources planning (budget) Strategies analysis

37 Logical framework - Indicators
Describe project goals in objectively measurable way and set up standards to be achieved in order to achieve general and specific goal of the project Indicator defines the difference between the baseline and the situation in the moment of new measurement -the change. It also needed to define the deadline for achievement of planed changes. The change can be measured in two ways: by quantity (for example: 50 persons received education), or by quality (for example: number of internet users increased for 50%)

38 Beneficiaries and Objectives
Beneficiaries are all who can, in any way, benefit from the project implementation The difference can be made between: Final beneficiaries: Overall objective: Those who benefit from the project on long term Achieved after the project completion basis at the level of overall or final and have long term impact on wider territory objective (community or sector, for example and numerous population children, youth, entrepreneurs, tourist workers, transport workers, etc.) Direct beneficiaries: Those who will be directly positively influenced by the project on the level of specific Specific objective: goal i.e. project aim (project implementing Achieved in a course of the project, influencing organizations, project partners, workshop beneficiaries directly involved in planned project and event participants, users activities and achieved results. of the equipment and services, etc.)

39 Logical Framework Overall Objective Specific Objective Result 1
Activity 1.1. Activity 1.2. Result 2 Activity 2.1. Result 3 Activity 3.1. Result 4 4.1.

40 Logical Framework Intervention LOGIC
Objectively verifiable indicators of achievement Sources and means of verification Assumptions Overall Objectives What is the overall objectives? What are the Key indicators related to the overall objective? What are the sources of information for these indicators? Specific Objectives What specific objectives are intended to achieve the Overall Objective? Which indicators clearly show that the objective of the action has been achieved? What are the sources of information that exist or can be collected? What are the methods required to get information? Which factors and conditions outside the Beneficiary’s responsibility are necessary to achieve that objective? Which risks should be taken into consideration? Expected Results What are the Expected Results? What are the indicators to measure whether and to what extent the action achieves the expected results? What external conditions must be met to obtain the expected results on schedule? Activities What are the key Activities to achieve results? Means: What are means required to implement these activities? What are the sources of information about action progress? Costs? What pre-conditions are required before the action starts? Ext. conditions to be met for activities?

41 Logical Framework Hierarchy of the objectives
Example how to formulate statements Overall objective To contribute to a family health, especially regarding families with lower income, and improve the conditions of river eco system Specific objective 1. Improved quality of the river waters Results 1.1. Decreased quantity of waste water drained to the river directly by the households and factories 1.2. Established and efficiently implemented standards for waste water treatment Activities (maybe not included in the matrix itself, but presented in a form of activity plan) Conducting baseline survey of the households and industries Capacity building of engeneers who will carry out enlargement of water supply network Preparation of tender files, tendering and selection of the subcontractors Identification of respective subventions for factories to use clear technologies Preparation and conducting of public info campaign and public awareness campaign etc.

42 Logical Framework Check of the intervention logic by applying test IF/THAN When the hierarchy of objectives is read bottom up , it can be expressed in the following way: IF adequate inputs/resources are provided, THAN activities can be undertaken; IF activities are undertaken, THAN results can be achieved; IF results are achieved, THAN the objective will be achieved and IF the objective is achieved, THAN it will contribute to the general project objective. It can be also read vice versa: IF we want to contribute to general objective, THAN we have to achieve the goal; IF we want to achieve the goal, THAN we have to obtain results; IF we want to obtain results, THAN planed activities have to be carried out and IF we want to carry out certain activities, THAN we have to apply identified inputs/resources.

43 Logical Framework Example
Intervention logic Objectively verifiable indicators Sources of verification Assumptions General project objective To increase the quality of tourist offer in XY cross border area Increased number of tourists for 5% on both sides of the border until the year XY Data from statistical and touristic organizations (from both sides of the border) Specific objective To improve tourist attractions of the existing infrastructure for recreational tourism Number of tourist queries increased for 5% until the end of the project. Number of tourists using reconstructed paths increased for 5% until the end of the project Data from touristic organizations and web site statistics Other tourist facilities in the area well maintained and promoted; Interest of the tourists stable. Expected results -Improved recreational infrastructure of biking paths -Increased level of public information on tourist offer 15 km of biking paths renewed until the 6th project month; Biking area marked with 5 boards until 7th project month; increased knowledge of 10 tourist workers on both sides of the border until the 5th month ; Common Web portal established until the end of the 3rd month Construction companies reports; data from municipalities; Promotional materials; Internet Other tourist offer around the biking paths at satisfactory level. Activities -Performing works and marking paths -Preparation of (common) promotional strategy and web site -Training of tourist workers in marketing Personnel: 10 experts Subcontracts: 2 construction companies; Supplies: 6 PCs; Training room, software Total costs: Human resources: Travel: Equipment and supply: Works: Contingency reserve:5.000 Admin. costs 9.500 Sufficient number of offers from construction companies; Favorable weather conditions; Sufficient interest and motivation of tourist workers; Obtained permits for renewal and marking of the biking paths

44 Manual for preparation of the logical framework

45 Budget for the Action Total of 7 worksheets: Joint budget
3 blue worksheets for applicant 1 – budget, budget justification and sources of funding 3 red worksheets for applicant 2 – budget, budget justification and sources of funding Budget table is separated on “All Year” and “Year 1” columns

46 Budget for the Action Very important part of the project proposal and a base for signing of the grant contract; Costs have to be clear, justifiable, related to the activities and separated per budget items; Budget has to include all of the eligible costs of the project, including co-financing.

47 Budget for the Action Staff engaged in project implementation full time (8 hours) State real gross salary amounts. Person engaged 50% of working time in project implementation. Instruction for correct calculation: 50% x 6 months = 3 complete gross salaries.

48 Budget for the Action 1. HUMAN RESOURCES – SALARIES
Team members salaries from applicant/partner institutions and organizations (most often used to provide co-financing) All costs of external experts need to be presented in heading 5. “Other costs/services” in a way that it can be clearly seen what activity they are connected to (publications, seminars, etc.) Are bugeted for employees who come from other countries and are strictly connected for specific project activities, and not for a project as a whole 1.1 Salaries (gross amounts, local staff) 1.2 Salaries (gross, expatriate/international staff)

49 Abroad per diems paid to the staff engaged in project implementation
Budget for the Action Persons who are not project team members can get per diems (for example engaged trainers) within the item Seminar conference participants. From this budget items, participants’ per diems can not be paid, because their costs are real and paid from 5.7 Abroad per diems paid to the staff engaged in project implementation

Budget for the Action 1. HUMAN RESOURCES – PER DIEMS Per diems need to be separated to those planed for inland travel and those planed for travel abroad; Total per diem costs can not exceed maximum EU amounts; maximum EU per diem amounts can be found on the web site: It is very difficult to obtain maximum “EU per diem rates”, therefore it is recommended to calculate per diems as it is usually done in your organization, in accordance to the national legislation.

51 Where possible, use “Per km” as calculation unit
Budget for the Action Break travels in groups: train, bus, private vehicles, official vehicles, plane etc. List travels by countries. Costs are eligible only for economic class of transport. 2. TRAVEL Travel abroad Inland travel Where possible, use “Per km” as calculation unit

52 Budget for the Action 3. EQUIPMENT
Separate budget items by type of equipment 3. EQUIPMENT Think about the units suitable for cost calculation Before the budgeting, conduct market research Make sure to round numbers to 2 decimals (here it was not done!)!

53 Budget for the Action 4. OFFICE COSTS
Office costs are listed within this budget item only if new office is open for project implementation needs If it is about already existing office, than those costs are listed in budget item 10. Administrative costs - as indirect costs If you use unit “Per month” for office costs calculation, think of separation of the winter and summer seasonal costs

54 Budget for the Action 5. Other costs and services
5.1 Costs of publications-list unit price and provide justification 5.3 Audit costs – mandatory if the project lasts for more than 12 months, and total project value exceeds EUR (2-3 %) 5.8 Project visibility – means reserved for project promotion 5.5 Translation, interpreters - separate on written and verbal translation Costs of financial services and bank fees 5.7 Costs related to participation, organization of the seminars (room renting, trainer accommodation, food, costs of the materials)

55 Budget for the Action 6. Other: Only costs that can not fit in any other budget item 8. Contingency reserve (max 5%) 10. Administrative costs are eligible if they are not listed under some other budget item

56 Budget for the Action WORK SHEET no. 2 – BUDGET JUSTIFICATION Expenses
Clarification of a budget line Justification of expenses estimation 1. HUMAN RESOURCES 1.1 Salaries Personnel engaged on a project Project manager Project manager will lead the project team – organize meetings, direct activities and co-ordinate activities of whole project team Gross salary of project manager is 700 Euro/month. With project duration of six months it amounts to Euro. This cost is calculated based on real cost in our organization for this position. Project coordinator Project coordinator will be in charge for co-ordination or cross border partners activities Gross salary of project coordinator is 600 Euro/month. With project duration of six months it amounts to Euro. This cost is calculated based on real cost in our organization for this position. PR officer PR officer is in charge for communication with targeted public and promotion of project values in media on both sides of the border Gross salary of PR officer is 400 Euro/month. With project duration of six months it amounts to Euro. This cost is calculated based on... Accountant – 50% working time Accountant will be provided by the Municipality to commit 50 % of his time to accounting, payments, documentation preparation as well as preparation or the financial project reports. Gross salary of accountant is 200 Euro/month. With project duration of six months , and his engagement of 50 % of working time, it amounts to 600 Euro. This cost is calculated based on...

57 Budget for the Action WORK SHEET no. 3 –– SOURCES OF FUNDING
Co-financing minimum 15% Contribution sought maximum 85%

58 Budget Formulation – Advice
Original Form should be used – do not erase items or formulas; if necessary insert, additional items; If a project is longer than one year, fill in both columns for “All Years” and “Year 1” of implementation; Number each item – add sub-items if necessary; Units have to be used adequately; Each budget item, number of units and unit cost has to be explained in budget justification sheet;

59 Budget Formulation – Advice
Salaries of the team members from the organization of the applicant and/or partners as well as persons engaged based on “Labor contract” are presented under heading 1. “Human Resources”; External Experts costs should be listed under heading “Other costs/services” and numbered in relation to the activities; As regards the staff members engaged part time, full salary (unit rate) is presented with the decreased number of units; Salary is presented as a gross salary and includes all adjoining taxes; Per diems should relate to the country they are being spent in – following of the local legislation is recommended;

60 Budget Formulation – Advice
Under heading 3. “Equipment and Supplies” only costs of the equipment/supplies purchased/rented for the entire duration of the project are budgeted. If the costs are related to a specific event, than they are budgeted under 5.7 “Costs of conferences/seminars”; Heading 4. “Local Office” is used only if a office space is rented for the project specifically, otherwise all of the costs of the existing office are place under 7. “Administrative Costs” (indirect costs); In the heading 5. “Other costs/services” it is recommended to group costs per events or activities; Costs under heading 8. “Contingency Reserve” can be used only with the previous written approval of the EUD.

61 Eligible Costs Eligible direct costs: costs directly related to the activities e.g. promotional materials, travelling costs, staff costs; Eligible indirect costs (Overheads): costs that cannot be directly related to activities e.g. travelling costs of management, administrative costs, costs of administrative/support staff, as well as the office costs unless the office is opened especially for the duration of the action etc.

62 Eligible Direct Costs Incurred during the implementation of the action as specified in Article 2 of the Special Conditions to the Standard Grant Contract with the exception of costs relating to final reports, expenditure verification and evaluation of the action; Presented in the budget of the action; Necessary for the implementation of the action; Identifiable and verifiable, in particular being recorded in the accounting records of the Beneficiary; Reasonable, justified and comply with the requirements of sound financial management, in particular regarding economy and efficiency; Where the implementation of an operation requires a separate account or accounts to be opened, the bank charges for opening and administering the accounts;

63 Eligible Direct Costs Legal consultancy fees, notaries fees, costs of technical or financial experts, and accountancy or audit costs, if they are directly linked to the co-financed operation and are necessary for its implementation; The cost of guarantees provided by a bank or other financial institutions, to the extent that the guarantees are required by national or Community legislation; The purchase of land for an amount up to 10% of the total eligible expenditure of the Action; When the financing provided by the CA exceeds € 100,000, conducting an expenditure verification (audit) is obligatory. A report on the verification of the action’s expenditure, produced by an approved auditor who meets the specific conditions of the Terms of Reference for the expenditure verification, shall be produced in accordance with the provisions of article 15.6 of the General Conditions applicable to European Union-financed grant contracts for external actions;

64 Eligible Direct Costs The cost of staff assigned to the Action, corresponding to actual gross salaries including social security charges and other remuneration-related costs; Travel and subsistence costs for staff and other persons taking part in the Action, provided they do not exceed those normally borne by the Beneficiary or its partners, as the case may be; Purchase costs of supplies and new equipment and rental costs for equipment and supplies specifically for the purposes of the Action, and costs of services, provided they correspond to market rates; Cost of consumables; Costs deriving directly from the requirements of the Contract (dissemination of information, evaluation specific to the Action, audits, translation, reproduction, insurance, etc.); Charges for trans-national financial transactions...

65 Eligible Indirect Costs (Overheads)
The indirect costs incurred in carrying out the action may be eligible for flat-rate funding fixed at not more than 7 % of the total eligible direct costs.

66 Ineligible Costs Taxes, including value added taxes (VAT can be eligible cost); Customs and import duties, or any other charges; Purchase of land or buildings, except where necessary for the direct implementation of the action, in which case ownership must be transferred to the final beneficiaries and/or local partners, at the latest by the end of the action; Fines, financial penalties and expenses of litigation; Operating costs; Second hand equipment; Bank charges, costs of guarantees and similar charges; (these costs can be eligible)

67 Ineligible Costs Conversion costs, charges and exchange losses associated with any of the component specific Euro accounts, as well as other purely financial expenses; Contributions in kind; Any leasing costs; Depreciation costs; Debts and debt service charges; Provisions for losses or potential future liabilities; Interest owed; Costs declared by the beneficiary and covered by another action or work programme; Credits to third parties.

68 Advice for successful project
Project has to be realistic and to address specific problem; Project has to have added value to it; Project should not cover existing activities; Project has to be clearly placed under certain measure and priority of the Programme, otherwise it can be rejected; Implementation or larger parts of the project activities should not be subcontracted; It is important to have good and reliable partner and real partnership;

69 Advice for successful project
It is the best to look for partners in similar institutions (similar activities and sizes); Project has to have realistic partnership and realistic budget; Description/justification of the budget should provide detailed picture of the envisaged costs; Check whether the amount of grant requested comply with the minimum and maximum for selected measure; Information presented in the proposal should be similar in all of the parts of the application form.

70 Contacts Joint Technical Secretariat Antenna Tuzla
Nemanjina 52, Užice Tel/fax: Web: Antenna Tuzla Turalibegova bb TC “Pasage”, 75000 Tuzla Tel/fax: Web:

71 Thank You for Your Attention and Good Luck!

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