POSSIBLE SYNERGIES BETWEEN

PRE-COMMERCIAL PROCUREMENT (PCP) PUBLIC PROCUREMENT OF INNOVATIVE SOLUTIONS (PPI)
POSSIBLE SYNERGIES BETWEEN EUROPEAN STRUCTURAL AND INVESTMENT FUNDS(ESIF) AND HORIZON 2020(H2020) IN THE PROGRAMMING PERIOD This is a very first piece of information regarding the synergies between ESIF and H2020 on PCP/PPI. A SWD on that issue will provide more detailed information.

What is: Pre-commercial Procurement (PCP)?
Public Procurement of Innovative Solutions (PPI)?

PCP-PPI PCP to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors PPI to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market Supplier B Supplier C Supplier D Phase 1 Solution design Phase 2 Prototype development Phase 3 Original development of limited volume of first test products / services Supplier A Phase 0 Curiosity Driven Research Applied R&D / Pre-commercial Procurement (PCP) Phase 4 Deployment of commercial volumes of end-products Wide diffusion of newly developed solutions Public Procurement of Innovative Solutions (PPI) Supplier(s) A,B,C,D and/or X Also normally multiple sourcing here to keep competition going Third reason for why demand driven innovation through public procurement: To create growth and jobs 'in Europe' PCP-PPI combination is based on best practice to: Steer R&D to meet concrete public sector needs (earlier customer feedback helps gets better fit for purpose products, less expensive customisation needed after) Give multiple companies a chance to show what pros/cons of their ideas are (preventing supplier lock-in, get first inside knowledge of pros/cons of competing solutions to write better tender specs for PPI afterwards) Share IPR rights with industry to encourage wide commercialisation Keep competitive open market at all stages to get best value for money (short contracts per phase, no long term partnership contract locking into certain vendors) Give SMEs an equal chance to enter the procurement market (no selection criteria requesting large company turnover / long list of prior customer references, contract value / expected effort increases gradually phase per phase alongside the natural growth path of a growing company) Pool demand where possible with other procurers to share the R&D cost Because of the split between PCP and PPI: Definitely no State aid (uses maximum level of competition possible) PCP exempted from EU directives and WTO rules on procurement. Possible to restrict PCP to EU wide offers or to require R&D (jobs) to be done in Europe Objectives: Price/quality products that better fit public sector needs Earlier customer feedback for companies developing solutions Better take-up/Wider commercialisation of R&D results

COMPLEMENTARITY/SPLIT BETWEEN PCP and PPI
enables to… Get 20% better value for money products(US defense data) Use PPI also if no(more) R&D is necessary for procurement need Use a small budget PCP to de-risk a large budget PPI PPI spec can be 'completely rephrased' benefiting from PCP lessons learnt Use conditions that encourage job creation 'in Europe' Have more R&D in Europe because PCP falls outside WTO rules Prevent foreclosing of competition & crowding out of private investment in R&D Companies that are not financing their R&D via procurement/PCP (e.g. via grants, own company resources) can still bid for deployment contracts/PPIs Facilitates access to procurement market for SMEs Gradually increasing contract sizes, tasks, required manpower Stringent financial guarantee/qualification requirements:'no' in PCP,'ltd' in PPI

PCP Win-win for all stakeholders
Politicians Suppliers Quality of public services Focus on political priorities Improve innovation climate Attract foreign investment Increase employment Better products Economies of scale Wider market size Shorter Time to market - New lead markets Increase export Global competitiveness First buyer in early R&D Pre-commercial Procurement Reduce cost of procurement Shared risks & benefits - Reduce risk of innovation … at the ‘Lowest Price’ Get the ‘Best Product’… Pooling of resources - Economies of scale No licensing costs ‘First time right’ product ‘EU interoperable’ Attractive to venture capitalists - Reduce unforeseen expenditure Address ‘public market innovation failure’ Shape product development to public needs Increase technology knowledge Reduce risk in commercial tendering Favour supplier competition Procurers

PCP – PPI IN A COHESION POLICY CONTEXT

Why should MA and Regions be interested in Innovation Procurement?
……it is a win-win situation for Public authorities by engaging actively as first potential customers in getting new solutions developed and tested, involved in PCPs, can act as a "seal of approval" confirming the market potential of new emerging technological developments, thereby attracting new investors. by triggering the development of breakthrough solutions ahead of the rest of the market, can through their role of demanding first buyer create opportunities for companies in Europe to take international leadership in new markets. by increasing "local" public sector demand to develop innovative solutions for the societal challenges of the future, can help combat delocalisation and encourage companies to invest in highly qualified R&D in Europe. can get more efficient infrastructures and service solutions Innovators can get first client for new product (lead customer) and faster ROI ERDF may help to tackle measure to improve and strengthen PP procedures: Log-term planning of PP and communication to the market and potential bidders Awareness on innovative solutions and technical dialogue before tendering process Involvement of key stakeholders throughout the process (identification, securement) Incorporate whole life cost and other criteria from green, sustainable and socially responsible PP. Implement risk sharing management approaches

SETTING THE SCENE The implementation of a PCP and/or PPI should take place in the framework of a holistic approach that involves R&I to achieve the goals set for the development of each region mainly reflected through the Smart Specialisation Strategy and provides clear impact on competitiveness, job creation and growth. The Smart Specialization strategies will set out the national or regional frameworks for investments in research and innovation not only from ESIF but from all funding sources. In that way synergies with H2020 will be better ensured and actions will be in line with the Europe 2020 objectives. What is important at strategic level The relevant OPs and European Territorial Cooperation Programs should be designed in a way to support public demand driven innovation in terms of PCP/PPI implementation as well as coordination, consortium building, networking and preparation activities

SMART SPECIALIZATION DEFINITION
Smart Specialisation is a strategic approach to economic development through targeted support to Research and Innovation (R&I). It will be the basis for Structural Fund investments in R&I as part of the future Cohesion Policy’s contribution to the Europe 2020 jobs and growth agenda. Smart specialisation involves a process of developing a vision, identifying competitive advantage, setting strategic priorities and making use of smart policies to maximise the knowledge-based development potential of any region. This type of specialisation allows regions to take advantage of scale, scope and spill overs in knowledge production and use, which are important drivers of productivity

SMART SPECIALISATION - Priority setting in times of scare resources
- Place evidence based - Bottom up partnership approach - Global perspective on potential advantage & potential for cooperation - Source in Knowledge, services , technologies, talent and investors SPECIALISATION - Priority setting in times of scare resources - Excellence in something specific - Accumulation of critical mass - Not necessarily focus on a single sector but cross sectorial approach

Ensures synergies with H2020
EUROPE 2020 POLICY H2020 COHESION POLICY SMART SPECIALIZATION Ensures synergies with H2020

Cohesion Policy may support measures in the framework of the Operational Programs to:
Foster more innovative public procurement procedures and administrative capacities TO 11 (IP11) Enhancing institutional capacity and an efficient public administration TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health Target group: procurement officers Foster innovation through public procurement - both PCP and PPI TO 1 (IP1B) Strengthening research, technological development and innovation Target group: enterprises Foster better meeting of public needs through buying innovative solutions TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health TO 4 (all IPs) supporting the shift toward a low –carbon economy in all sectors TO 5 (all IPs) promoting climate change adaption, risk prevention and management TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures Target group: town planners, transport, environment, health etc. ministries – ERDF, Cohesion Fund and ESF) TO = Thematic Objective IP = Investment Priority

Cohesion Policy may also support:
Private demand for innovative solutions (e.g. adoption of energy efficiency and renewables solutions in SMEs and in the housing sector) TO 4 (all IPs) supporting the shift toward a low –carbon economy in all sectors Major projects / Joint Action Plans in cooperation with other Regions and key players in the Cohesion Policy Coordination, Networking and Preparation actions for the implementation of a PCP and/or PPI through European Territorial Cooperation Programs

PCP/PPI IN THE FRAMEWORK OF THE OPs
OPERATIONAL PROGRAMME PCP/PPI UNDER A SPECIFIC THEMATIC OBJECTIVE. BUDGET ALLOCATION FOR SPECIFIC CALLS FOR PROPOSALS BY THE MAs ON PCP/PPI Example of the Italian Regions - In the the previous programming period specific calls on PCP were launched with reference to related priority axis of each respective Regional Operational Program - HORIZONTAL PRESENCE - AFFECT ALL THEMATIC OBJECTIVES/INVESTMENT PRIORITIES. NO SPECIFIC CALLS FOR PROPOSALS BY THE MAs ON PCP/PPI. PCPs/PPIs are implemented as projects in the framework of relevant calls for project proposals launched by the MA of each respective OP

PCP – PPI IN THE FRAMEWORK OF HORIZON 2020

H2020 RULES ON PCP/PPI – FORESEEN TYPES OF SUPPORT
Coordination and Support Actions (CSA) supporting networks of procurers to prepare joint PCPs / PPIs PCP cofund actions and PPI cofund actions co-fund the price of an actual PCP or PPI call for tender + related coordination and networking activities to prepare, manage and follow-up the PCP or PPI

H2020 RULES ON PCP/PPI – FORESEEN CO- FUNDING RATES AND CONSORTIA
Co-funding rate: 70% for PCP and 20% for PPI CSAs 100% co-funding rate One joint PCP or PPI procurement per action Consortium of participants from min 3 different MS or AC, of which min 2 public procurers from 2 different MS or AC investing in the joint procurement that form the buyers group(+ possibly other procurers that are providing services of public interest and other entities that are assisting the procurers)

The special role of the Lead Procurer
The Lead Procurer is one of the beneficiaries Should be a Contracting Authority/Entity (definition of the EU Procurement Directives) Could be (or not) part of the buyers group It co-ordinates the procedure, launches the calls and signs the Framework Contracts/Agreements* An EGTC could play the role of either the Lead Procurer or the Buyers Group (for the latter on the condition that at least 2 procurers from 2 different MS participate in the EGTC as partners) EGTC : European Grouping of Territorial Cooperation * in the name and on behalf of the procurers of the buyers group

COORDINATION AND SUPPORT ACTIONS (CSA)
Prepare for a PCP/PPI execution by: Identifying the common challenge to be tackled through the execution of PCP/PPI Networking and Consortium Building Defining the Lead Procurer and the applicable national law Preparing the tendering documents other relevant preparation, coordination etc activities

Preparation, Coordination, etc. activities
CSAs vs. Preparation, Coordination etc. activities in the framework of the H2020 PCP/PPI Cofund actions CSAs Part of a specific calls for proposals Co-funding rate 100% There will not be calls on CSAs for all the PCPs/PPIs that will be executed in the framework of H2020 Preparation, Coordination, etc. activities Part of a PCP or PPI cofund action Co-funding rate the same as the PCP or PPI cofund actions i.e for PCP 70% and for PPI 20% On the condition that preparatory, coordination etc. activities have not been already implemented (and co-funded by H2020(CSAs), ESIF or by National Funds)can always be co-funded in the framework of a PCP/PPI cofund action

ONE JOINT PCP In their proposal, consortium shall have already identified one concrete procurement need as proposed focus for the PCP that is identified as a common challenge in the innovation plans of the buyers group and requires R&D! One joint call for tender published EU wide One joint evaluation of offers One lead procurer awarding all contracts in the name and on behalf of all procurers in buyers group Each winning tenderer gets: 1 framework agreement to participate in the PCP + one specific contract per PCP phase (solution design, prototyping, testing) One joint total budget (grouping financial commitments of all procurers in buyers group) from which all R&D providers are paid But, actual payments can be carried out centralised or distributed Either all R&D providers paid by the lead procurer Or each R&D provider paid pro rata by each procurer in the buyers group according to the share of each procurer's contribution to the common pot Also supervising suppliers and testing of solutions can be centralised or distributed (Choice between testing all solutions of all R&D providers in 1 procurers site or on several sites procurers sites etc)

ONE JOINT PPI In their proposal, consortium shall have already identified one concrete procurement need as proposed focus for the PCP that is identified as a common challenge in the innovation plans of the buyers group and requires R&D! One joint call for tender published EU wide (unless PPI procures limited set of prototypes / test products developed during PCP, then negotiated procedure without publication foreseen in public procurement directives possible) One joint evaluation of offers But contract award can be centralised or distributed Either one lead procurer awarding all contracts to all suppliers on behalf of all procurers in the buyers group Or one lead procurer only awarding a framework contract with lots (lots per procurer) to each supplier, and each individual procurer awarding (a) specific contract(s) for his lot(s) to the supplier(s) delivering the solution(s) he buys This means same core functionality and performance characteristics for solutions procured by all procurers, but possible additional local functionality for each procurer Also supervising suppliers and payments can be centralised or distributed

POSSIBLE SYNERGIES BETWEEN
ESIF AND H2020 ON PCP/ PPI

SYNERGIES BETWEEN H2020 AND ESIF ON PCP/PPI WHY?
BECAUSE: The value of support for research, development and innovation could be further enhanced by combining funding resources (increase of effects at regional level) Procurers could choose for higher ESIF co-funding rates instead of H2020 co-funding rates' whilst participating to H2020 funded PCP/PPIs. Better communication between "regional development community" and "Horizon-Science community" A regional development scheme through the participation in a H2020 project acquires a European perspective

CONDITIONS FOR SUCCESS
Include innovation procurement in the RIS3 SWOT and policy mix. Build PCP/PPI references into OPs in every relevant thematic objective. Ensure support of public demand driven innovation in the framework of the European Territorial Cooperation. Involve MA from the beginning to ensure availability of ESIF & synchronisation. RIS3: Research and Innovation Strategy

GENERAL RULE IT IS NOT ALLOWED !!!!!!
To use ESIF and H2020 funding accumulatively to finance the same cost/expenditure item To finance the own contribution of the participant from H2020 or ESIF

CATEGORIES OF POSSIBLE SYNERGIES BETWEEN H2020 AND ESIF ON PCP/PPI
Joint or simultaneous use of funds Sequential funding Additional funding Alternative funding

A. JOINT OR SIMULTANEUS USE OF FUNDS
Different funding sources in the same project. This is only possible if the cost items (eligible and submitted) are NOT the same. Requires very strict financial management to separate the cost items clearly from the conception phase of the project and will only work if the funding decisions of H2020 and ESIF are synchronised. The rules of both funding sources (ESIF – H2020) should be respected by all beneficiaries even if they receive co-financing from only one funding source. A partner who receives co-financing from ESIF to participate in a H2020 project should also respect the H2020 rules and vice versa.

Possible Scenario* # 1 on PCP
Preparatory, coordination etc. activities are co-funded by the ESIF (in particular in the framework of European Territorial Cooperation Programs) Execution of a PCP is co-funded by H2020 * The list of the presented scenarios is not exhaustive. In practice more than those scenarios presented in that set of slides could be possibly implemented.

Coordination , preparatory etc. activities are co-financed by the ESIF
OPs or European Territorial Cooperation Programs – Cross Border or Transnational or Interregional THE CO-FUNDING RATE IS DEPENDED ON THE PROGRAM AND/OR THE PARTICIPANT Α mature project proposal in the framework of the PCP Cofund actions calls (H2020) can be submitted. In case of approval it will receive co-funding for the execution of a joint PCP FLAT CO-FUNDING RATE 70%

Possible Scenario #2 on PCP
Coordination and preparatory activities are co-funded by H2020 in the framework of CSAs i.e Assignment of Lead Procurer, Formation of Buyers Group, Preparation of Tender Documents etc. Execution of a PCP is co-funded by the ESIF. The distinction between different cost items could be easier in cases like the following: One joint PCP, one lead procurer, one jointly committed budget but each R&D provider is paid pro rata by each procurer in the buyers group according to the share of each procurer's contribution.

EXECUTION OF A JOINT PCP
Coordination, preparatory, etc. activities are co-funded by H2020(CSAs) 100% CO-FUNDING RATE PROCURER A (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution) EXECUTION OF A JOINT PCP PROCURER C (Transitional Region) CO-FUNDS HIS CONTRIBUTION TO THE COMMON POT THROUGH THE ESIF CO-FUNDING RATE up to 60% (for his contribution PROCURER B (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution) Expenses are paid pro rata by each procurer of the buyers group according to his contribution to the jointly committed budget

Possible scenario on the execution of a PCP
In the framework of PCP Cofund action calls, some participants of the consortium of the buyers group may receive co-funding from the ESIF and others from H2020. This case is applicable only if there is a clear distinction between budgets offered per OP and between expenditures co-funded by the ESIF (per OP) vs expenditures co-funded by H2020. Example - each R&D provider is paid pro rata by each procurer in the buyers group according to the share of each procurer's contribution to the jointly committed budget. To achieve innovation goals in their territory by using ESI Funds procurers from less developed Regions could receive higher co-funding rates to participate in a PCP/PPI implemented in the framework of H2020 by/with procurers from more advanced Regions. Condition for success : synchronization between the ESIF calls and the H2020 cofund action calls

Coordination, Preparatory etc. activities are co-funded by H2020 (CSAs) 100% CO-FUNDING RATE EXECUTION OF A JOINT PCP PROCURER A (Less developed Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 85% (for his contribution) PROCURER C CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH H2020 CO-FUNDING RATE 70%(for his contribution) OR PROCURER B (Transitional Region) CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH THE ESIF CO-FUNDING RATE up to 60%(for his contribution) PROCURER D CO-FUNDS HIS CONTRIBUTION TO THE JOINTLY COMMITTED BUDGET THROUGH H2020 CO-FUNDING RATE 70%(for his contribution) Coordination, Preparatory etc. activities are co-funded by the ESIF DIFFERENT CO-FUNDING RATE PER PROGRAM AND/OR PARTICIPANT

Possible Scenario #1 on PPI
H2020 co-finances networking, coordination preparation etc. activities Consortium building Preparation of the calls Drafting of the tender documents … ESIF co-finances the execution of a PPI ESIF co-finances the purchase of the innovative solutions. The lead procurer launches one procurement procedure and awards the Framework Contract or Agreement. Procurers participating in the buyers group implement separate specific contracts. or The lead procurer launches one procurement procedure, signs all the contracts but every individual procurer pays the invoices Implementing a contract = launch a call, award, sign and pay.

Coordination, preparatory etc. activities are co-funded by H2020(CSAs)
100% CO-FUNDING RATE PROCURER A (Less developed Region) purchases the innovative solution with the support of the ESIF in line with the objectives of the relevant OP CO-FUNDING RATE up to 85% (for his contribution) EXECUTION OF A JOINT PPI PROCURER C (Transitional Region) purchases the innovative solution with the support of the ESIF in line with the objectives of the relevant OP CO-FUNDING RATE up to 60%(for his contribution) PROCURER B (Less developed Region) purchases the innovative solution with the support of the ESIF in line with the objectives of the relevant OP CO-FUNDING RATE up to 85%(for his contribution) PROCURER D (Transitional Region) purchases the innovative solution with the support of the ESIF in line with the objectives of the relevant OP CO-FUNDING RATE up to 60%(for his contribution)

ESIF co-funds coordination, preparation etc. activities consortium building preparation of the call/s evaluation of bids legal issues trans-national check for possible price reductions due to large volumes ………. (i.e. in the framework of European Territorial Cooperation Programs) H2020 co-funds the purchase of the innovative solutions (flat co-funding rate 20%)

Coordination, Preparatory etc. are activities co-funded by the ESIF
(i.e. ETC Programs) DIFFERENT CO-FUNDING RATE PER PROGRAM AND/OR PARTICIPANT One joint PPI that has been prepared with the support of the ESIF is executed. The execution of the PPI is co-funded by H2020 (PPI Cofund action calls) FLAT CO-FUNDING RATE 20% FOR ALL PROCURERS

Joint implemented PPI: A procurer located in a less developed Region purchases the innovative solution co-funded by the ESIF (up to 85% rate) and another procurer in another MS is co-funded by H2020 (20% rate) to purchase the innovative solution. The networking and the preparation phase for the execution of the PPI may be co-funded either by the ESIF or by the H2020 (CSAs). In case that they haven't received co-financing for the preparatory activities these can be co-funded by the PPI Cofund actions according to the rules applicable to these actions. Applicable Scenario in cases: under a joint Framework Contract/Agreement which provides the joint technical specifications separate contracts are implemented by the procurers according to their national law for the purchase of the innovative solutions Or the lead procurer launches one procurement procedure awards all the contracts but the invoices are paid by every individual procurer

EXECUTION OF ONE JOINT PPI
Coordination, Preparation etc. activities are co-funded by H2020 (CSA) 100% CO-FUNDING RATE PROCURER A purchases the innovative solution with the support of H2020 FLAT CO-FUNDING RATE 20% (for his contribution) EXECUTION OF ONE JOINT PPI PROCURER C purchases the innovative solution with the support of H2020 FLAT CO-FUNDING RATE 20% (for his contribution) PROCURER B (Less developed Region) purchases the innovative solution with the support of the ESIF in line with the objectives of the relevant O.P CO-FUNDING RATE up to 85%(for his contribution) PROCURER D Less developed Region purchases the innovative solution with the support of the ESIF in line with the objectives of the relevant O.P CO-FUNDING RATE up to 85%(for his contribution) Coordination, Preparation etc. activities are co-funded by the ESIF DIFFERENT CO-FUNDING RATE PER PROGRAM AND/OR PARTICIPANT OR

Joint implemented PPI: Procurer A located in a less developed Region purchases (co-funded by the ESIF – up to 85% rate) an X lot of the innovative solution and another procurer (procurer B) in another MS purchases the lot Y of the same innovative solution (co-funded by H2020- rate 20%). The coordination, preparation etc. activities for the execution of the PPI could have possibly been co-funded either by the ESIF or by the H2020(CSA). In case that they haven't received co-funding for the preparatory activities these can be co-funded by the PPI Cofund actions according to the rules applicable to these actions. Applicable in cases like the following : Under a joint Framework Contract/ Agreement that sets out the common functional specifications separate contracts for different lots are implemented by the procurers according to their national law for the purchase of the innovative solutions.

EXECUTION OF ONE JOINT PPI
Coordination, Preparation etc. activities are co-funded by H2020 (CSA) 100% CO-FUNDING RATE PROCURER A purchases the LOT A of the innovative solution with the support of H2020 FLAT CO-FUNDING RATE 20%(for his contribution) EXECUTION OF ONE JOINT PPI PROCURER C purchases the LOT B of the innovative solution with the support of H2020 FLAT CO-FUNDING RATE 20%(for his contribution) PROCURER B (Less developed Region) purchases the LOT C of the innovative solution with the support of the ESIF in line with the objectives of the relevant O.P C0-FUNDING RATE up to 85%(for his contribution) One Framework Agreement /Contract. Several contracts are signed by the procurers PER LOT OR Coordination, Preparation etc. activities are co-funded by the ESIF DIFFERENT CO-FUNDING RATE PER PROGRAM AND/OR PARTICIPANT

Possible scenario on the coordination, preparation etc
Possible scenario on the coordination, preparation etc. activities for PCP and PPI To implement the coordination, preparation etc. activities necessary for the execution of a PCP or a PPI procurers A and B that come from less developed regions are co-funded by the ESIF (up to 85% co-funding rate) and procurers B and C are co-funded for their contribution by H2020 (CSAs – if there is a specific call -100% co-funding rate or PCP/PPI Cofund actions co-funding rate 70%/20% accordingly) The execution of the joint PCP/PPI can follow one of the scenarios presented in the previous slides. Minimum conditions for success: - Separate and distinguished cost/expenditure items even at project proposal level - Synchronization and coordination between ESIF MAs and H2020 Managing Bodies

PROCURER A (Less developed Region) Coordination and preparation etc. activities for a PCP are co-funded by the ESIF CO-FUNDING RATE up to 85% (for his contribution) PROCURER B (Transitional Region) Coordination and preparation etc. activities for a PCP are co-funded by the ESIF CO-FUNDING RATE up to 60% (for his contribution) EXECUTION OF A JOINT PCP PROCURER C Coordination and preparation etc. activities for a PCP are co-funded by H2020 (PCP Cofund actions) FLAT CO-FUNDING RATE 70% (for his contribution) PROCURER D Coordination and preparation etc. activities for a PCP are co-funded by H2020 (PCP Cofund actions) FLAT CO-FUNDING RATE 70% (for his contribution)

EXECUTION OF A JOINT PPI
PROCURER A (Less developed Region) Coordination and preparation etc. activities for a PPI are co-funded by the ESIF CO-FUNDING RATE up to 85% (for his contribution) PROCURER B (Transitional Region) Coordination and preparation etc. activities for a PPI are co-funded by the ESIF CO-FUNDING RATE up to 60% (for his contribution) EXECUTION OF A JOINT PPI PROCURER C Coordination and preparation etc. activities for a PCP are co-funded by H2020 (PPI Cofund actions) FLAT CO-FUNDING RATE 20% (for his contribution) PROCURER D Coordination and preparation etc. activities for a PCP are co-funded by H2020 (PPI Cofund actions) FLAT CO-FUNDING RATE 20% (for his contribution)

- First PCP and then PPI –
B. SEQUENTIAL FUNDING Separate successive and legally/financially not linked projects with alternating H2020 or ESIF support – - First PCP and then PPI – This is an easier way to combine funds with less risk of (involuntarily) creating double co-funding scenarios. Sequential funding can go in both directions: First ESIF and then H2020 or vice versa.

and vice versa (H2020 for PCP and ESIF for PPI)
Possible Scenario First PCP (ESIF) to develop and test the innovative solution and then PPI (H2020)for the deployment of the innovative solutions developed and tested through PCP and vice versa (H2020 for PCP and ESIF for PPI) Example: A group of Public Procurers from different cities are looking for a new sustainable public water supply system. It requires R&D. At first they implement a PCP (Phases 1,2,3) with the support of H2020 and different solutions are developed and tested. Thereafter they implement a PPI with the support of ESIF/ERDF to co-fund the preparation of the call for tender and the purchase of these new solutions (each MA for the territory covered by its OP).

PCP Execution of a PCP using either only H2020 or ESIF Funds or combination of both Funds PPI Coordination, preparatory etc. activities are co-funded by H2020(CSA) 100% CO-FUNDING RATE OR Execution of a PPI using either only H2020 or ESIF Funds or combination of both Funds per contract or per lot and contract Coordination, preparatory etc. activities are co-funded by H2020(CSA) 100% CO-FUNDING RATE OR Coordination, preparatory etc. activities are co-funded by the ESIF DIFFERENT CO-FUNDING RATE PER PROGRAM AND /OR PARTICIPANT Coordination, preparatory etc. activities are co-funded by the ESIF DIFFERENT CO-FUNDING RATE PER PROGRAM AND/OR PARTICIPANT Directly without CSAs or preparatory activities (Option)

C. ADDITIONAL/PARALLEL USE OF FUNDS
ESIF money is not linked to a H2020 project (PCP/PPI), but a regional/national authority decides to co-fund a regional/national project or beneficiaries to enhance the H2020 project or programme in its region. This may be particularly relevant to skills development or capacity building in innovation and cooperation Example Skills enhancement of the public procurer focused on the use of the innovative product that is purchased in the framework of a PPI that is co-funded by H2020

D. ALTERNATIVE FUNDING ESI Funds could be used for project proposals that have received positive evaluation under H2020 and could not be co-funded due to lack of H2020 funds under the call. These proposals could be reoriented towards ESIF requirements and submitted at national/regional level, if this type and topic of project fits into the operational programmes of the concerned territories.

POSSIBLE SYNERGIES BETWEEN

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