1

MINISTER OF ECONOMY OF THE REPUBLIC OF LITHUANIA

ORDER

REGARDING THE APPROVAL OF THE DESCRIPTION OF THE CONDITIONS FOR THE FUNDING OF THE PROJECTS UNDER MEASURE No. 09.4.3-ESFA-T-846 TRAINING FOR EMPLOYEES OF FOREIGN INVESTORS OF PRIORITY AXIS 9 EDUCATING THE SOCIETY AND STRENGTHENING THE POTENTIAL OF HUMAN RESOURCES OF THE OPERATIONAL PROGRAMME FOR THE EUROPEAN UNION FUNDS’ INVESTMENT IN 2014–2020

__ June 2017, No. 4-

Vilnius

Acting in accordance with Sub-Item 6.2.7. of the Rules on the allocation of responsibility and functions among institutions while implementing the Operational Programme for the EU funds investments for 2014–2020, approved by Resolution No. 528 of 4 June 2014 of the Government of the Republic of Lithuania ‘On the allocation of responsibility and functions among institutions while implementing the Operational Programme for the EU funds investments for 2014–2020, and having regard to Letter No. (24.39)-6K-1606285 of 5 September 2016 of the Ministry of Finance of the Republic of Lithuania ‘Regarding the approval of the Description of the conditions of funding projects’,

I hereby approve the Description of the conditions for the funding of projects under Measure No. 09.4.3-ESFA-T-846 Training for employees of foreign investors of Priority axis No. 9 Educating the society and strengthening the potential of human resources (attached).

Minister of Economy / Mindaugas Sinkevičius

Drafted by:

Martynas Dausinas

Chief Specialist

Structural Assistance Policy Division

European Union Assistance Coordination Department

Ministry of Economy

APPROVED:

Minister of Economy of the Republic of Lithuania

__ June 2017, Order No. 4-

DESCRIPTION OF THE CONDITIONS FOR THE FUNDING OF THE PROJECTS UNDER MEASURE No. 09.4.3-ESFA-T-846 TRAINING FOR EMPLOYEES OF FOREIGN INVESTORS OF PRIORITY AXIS 9 EDUCATING THE SOCIETY AND STRENGTHENING THE POTENTIAL OF HUMAN RESOURCES
OF THE OPERATIONAL PROGRAMME FOR THE EUROPEAN UNION FUNDS’ INVESTMENT IN 2014–2020

CHAPTER I

GENERAL PROVISIONS

1. The Description of the conditions for the funding of the projects under Measure No. 09.4.3-ESFA-T-846 Training for employees of foreign investors of Priority Axis 9 Educating the society and strengthening the potential of human resources of the Operational Programme for the European Union Funds’ Investment in 2014–2020 (hereinafter – the Description) establishes the requirements to be followed by applicants when drawing up and submitting the proposals for funding projects co-funded by the European Union structural funds (hereinafter – proposals), according to the activities funded under Measure No. 09.4.3-ESFA-T-846 of Priority Axis 9 of the Operational Programme for the European Union Funds in 2014-2020 (hereinafter – Measure), approved by Commission implementation decision of 8 September 2014 approving certain elements of the "Operational programme for the European Union Funds' investments in 2014-2020" for support from the European Regional Development Fund, Cohesion Fund, European Social Fund and the specific allocation for the Youth Employment Initiative under the Investment for growth and jobs goal in Lithuania (the Commission notified the decision by document No. C(2014)6397), implementers of projects co-funded from the European Union structural funds (hereinafter projects) when implementing the projects funded according to the Description, as well as the institutions carrying out the evaluation and selection of proposals, and the project implementation supervision.

2. The present Description has been drawn up having regard to:

2.1. The plan for the implementation of the implementation measures of the priority under the Operational Programme for the EU Structural Funds Investments for 2014–2020 that was approved by Order No. 4-933 of 19 December 2014 of the Minister of Economy of the Republic of Lithuania On the approval of the plan for the implementation of the implementation measures of a priority under the Operational Programme for the EU Structural Funds Investments for 2014–2020, and of the National description for the calculation of monitoring indicators (hereinafter – Measure implementation plan);

2.2. the Project Administration and Financing Rules approved by Order No. 1K-316 of 8 October 2014 of the Minister of Finance of the Republic of Lithuania On the approval of the Project Administration and Financing Rules (hereinafter – the Project rules);

2.3. Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (OJ 2014 L 187, p.1) (hereinafter – General block exemption regulation);

2.4. Description of the calculation of monitoring indicators of the Operational Programme for the EU Structural Funds Investments for 2014–2020 approved by Order No. 1K-499 of 30 December 2014 of the Minister of Finance of the Republic of Lithuania On the approval of the Description of the calculation of monitoring indicators of the Operational Programme for the EU Structural Funds Investments for 2014–2020 (hereinafter – Description of the calculation of monitoring indicators of the Operational Programme);

2.5. Recommendations regarding the compliance of project expenses with the requirements of structural funds of the European Union approved by the Operational Programme for Human Resources Development, the Economic Development Operational Programme, the Cohesion Promotion Operational Programme, and by Minutes No. 34 of 4 July 2014 of the Steering committee of the Operational Programme for the EU Structural Funds Investments for 2014–2020, and published at the EU structural funds’ website (hereinafter – Recommendations regarding the compliance of project expenses with the requirements of the requirements of the European Union structural funds);

3. The concepts used for the purpose of the present Description shall be interpreted as defined in the legal acts referred to in Item 2 of the present Description, the Rules on the Allocation of Responsibility and Functions among Institutions while Implementing the Operational Programme for the EU Funds Investments for 2014–2020 approved by the Resolution No. 528 of 4 June 2014 of the Government of the Republic of Lithuania Regarding Allocation of Responsibility and Functions among Institutions while Implementing the Operational Programme for the EU Funds Investments for 2014–2020, and the Rules on the Administration of the Operational Programme for the EU Funds Investments for 2014–2020 approved by Resolution No. 1090 of 3 October 2014 of the Government of the Republic of Lithuania On the Approval of the Rules on the Administration of the Operational Programme for the EU Funds Investments for 2014–2020.

4. The concepts used for the purpose of the present Description:

4.1.Working place– a full-time working place created for an unlimited period of time and required for the activity of the entity.

4.2.Large entity– a legal entity that does not fall within the definition of a micro, small or medium-sized entity as defined in the Law on Small and Medium-Sized Business Development of the Republic of Lithuania.

4.3.Investment development project– an investment carried out within three years pending the registration of the proposal with the European Social Fund Agency (hereinafter – Implementing Authority), or within the time of the registration of the applicant (investor) (in case the applicant (investor) has been in operation for more than three years and for the purpose of estimation of the wages of the employees of the applicant (investor), being carried out or intended to be carried out within a period no longer than 36 months of the signature of the contract regarding the project co-financed from the European Union structural funds (hereinafter – project contract) (unless the project is assigned to a new green field investment project).

4.4.Investment project– a new greenfield investment project or an investment development project(-s).

4.5.Competence– a ability to fulfil some activity based on the entirety of acquired knowledge, skills and values.

4.6.Qualification– a formal result of the evaluation and recognition process that is attained when an institution responsible for the evaluation and recognition of the qualification establishes that the training results of the person concerned comply with the established standards, and the person concerned is awarded a document certifying the qualification (certificate).

4.7.Micro enterprise– as defined in the Law on Small and Medium-Sized Business Development of the Republic of Lithuania.

4.8.Decisive influence– means the situation when the controlling person implements or is in a position to implement his decisions in relation to the economic activity of the controlled undertaking, the decisions of its bodies or the composition of its personnel, i.e. the controlling person directly holds more than 50 per cent of voting rights.

4.9.Small enterprise– as the concept is defined in the Law on Small and Medium-Sized Business Development of the Republic of Lithuania.

4.10.Trainee– an employee of the project implementer attending the training funded by the project resources.

4.11.Trainer –an employee of the project implementer training the trainees.

4.12.New greenfield investment project – an investment effected by an applicant (investment) that in the period before the submission of the proposal to the implementing authority had not carried out any investment in the Republic of Lithuania, when for the purpose of business the investment is made in the construction and the arrangement of a new structure in a greenfield.

4.13.Remote training– a consistent independent individual or group training, when the trainees and the trainee are separated by the distance and/or the time, and when the cooperation and the communication is conducted, and the training material is presented by means of information and communication technologies.

4.14.Mandatory investment– a private investment of no less than EUR 3,000,000 (three million euros), or no less than 50 jobs created, or an average monthly (gross) wages of all employees of the applicant (investor), that is by not more than 1.5 times higher than the average monthly (gross) wages in the Republic of Lithuania.

4.15.Private investment– as the concept is defined in the Law on Investment of the Republic of Lithuania.

4.16.Green field– as the concept is defined in the Law on Investment of the Republic of Lithuania.

4.17.Specific competences– competences required at a specific work place to carry out the operations and functions directly related to the work.

4.18.Foreign investor– potential applicants indicated in Item 12 of the Description.

4.19.Medium-sized eenterprise– as the concept is defined in the Law on Small and Medium-Sized Business Development of the Republic of Lithuania.

5. The implementation of the Measure is administered by the Ministry of Economy of the Republic of Lithuania (hereinafter – Ministry), and the Implementing Authority.

6. The form of financing under the Measure is a non-repayable subsidy.

7. The selection of the projects under the Measure shall be carried out by way of continuous project selection.

8. Total EUR 10,230,778 (ten million two hundred thirty thousand and seven hundred seventy-eight euros) are intended to be allocated from the EU structural funds (European Social Fund) for the implementation of the projects according to the Description.

9. The purpose of the Measure is to create the conditions for foreign investment to acquire specific competences and adapt to the specific changes in the economy.

10. The activity supported according to the Description is training and the enhancement of professional qualifications of the employees of foreign investors investing in the territory of the Republic of Lithuania and/or the relevant services, including organisation of on-the-job training.

11. The call for proposals according to the supported activity indicated in the Description will be published in Q2, 2017.

CHAPTER II

REQUIREMENTS FOR THE APPLICANTS AND PARTNERS

12. According to the Description eligible applicants are a foreign investor (company), a private legal entity established (acquired) in the Republic of Lithuania by a foreign investor and to which the foreign investor exercises decisive influence, or a branch established in the Republic of Lithuania by a foreign investor (company).

13. No partners are allowed according to the terms of the Description.

14. The applicant shall comply with the requirements referred to in Sub-Items 18.2, 18.3 and 18.4 of the Description.

15. Financing shall not be allocated to applicants in the cases referred to in Article 1 (2)-(5) of the General block exemption regulation. According to the Description financing shall not be allocated to applicants that are attributed to a category of undertakings in difficulty according to Article 2(18) of the General block exemption regulation.

16. An applicant that has received financing under the Measure, and/or under Measure No. 09.4.3-ESFA-K-805 ‘Human resources Invest LT+’ of Priority axis 9 Educating the society and strengthening the potential of human resources of the European Union Funds Investment Operational Programme for 2014-2020, may submit proposals under the Description only provided the implementation of the project co-financed from the European Union structural funds for which the funding was received had been completed.

CHAPTER III

REQUIREMENTS FOR THE PROJECTS

17. A project must comply with the general requirements set for projects in Section III of the Project Regulations.

18. The project must comply with the following special project selection criteria approved by Resolution No. 44P-2.1 (24) of 30 March 2017 of the Steering Committee of the Operational Programme for the European Union Funds’ investments in 2014–2020:

18.1. The project complies with the Investment promotion and industry development programme for 2014–2020 approved by Resolution No. 986 of 17 September 2014 of the Government of the Republic of Lithuania ‘Regarding the approval of the Investment promotion and industry development programme for 2014–2020’ (hereinafter – the Programme). For that purpose the project shall be assessed as to its contribution to the implementation of Objective 1 of the Programme ‘Boost direct investment into industry and service sectors, and Task 2 ‘Develop permanently functioning facilities for the improvement of competences of human resources’ of Objective 3 ‘Provide the Lithuanian businesses with competitive human resources’.

18.2. The amount of the private investment by the applicant (investor) in an investment project in the areas of services or production implemented in the Republic of Lithuania in the period of three years pending the registration of the proposal at the Implementing Authority, an investment project in progress, or intended to be implemented within the period no longer than 36 months from the project contract signature, shall be no less than EUR 3,000,000 (three million euros), or no less than 50 full-time jobs for an unlimited period of time have been created (are planned to be created) as a result of the implementation of the project, or the average monthly wages (gross) of all employees of the applicant (investor) in the period of three years pending the registration of the proposal with the Implementing Authority, or in the period from the registration of the applicant (investor) (in case the applicant (investor) has been in operation for less than three years), or in the course of the project implementation are (intended to be) by not less than 1.5 higher than the average monthly wages (gross) in the Republic of Lithuania (to be assesssed whether or not the amount of private investment of the investor in the Republic of Lithuania in an investment project in the production or service sectors implemented in the period of three years pending the registration of the proposal with the Implementing Authority, a project being implemented, or a project intended to be implemented within a period no longer than 36 months from the project contract signature, is no less than 3,000,000 (three million euros), or not less than 50 full-time jobs for an unlimited period of time have been created, or the average monthly (gross) wages of all employees of the (applicant) investor in the period of three years pending the registration of the proposal with the Implementing Authority, or in the period from the registration of the applicant (investor) (in case the applicant (investor) has been in operation for less than three years), or in the course of the project implementation, are not less than 1.5 times higher than the average monthly wages (gross) in the Republic of Lithuania.

18.3. The applicant (investor) is a foreign investor (company), a private legal entity established (acquired) in the Republic of Lithuania by a foreign investor and to which the foreign investor exercises decisive influence, or a branch established in the Republic of Lithuania by a foreign investor (company) (to be assessed whether or not the applicant (investor) is a foreign investor (company), a private legal entity established (acquired) in the Republic of Lithuania by a foreign investor and to which the foreign investor exercises decisive influence, or a branch established in the Republic of Lithuania by a foreign investor (company). The venue of registration of the investor shall be verified on the basis of the documents supplied thereby.

18.4. The principal activity of the applicant (investor) is production and the provision of services, and the average annual revenues in the course of three financial years (including the revenues of the applicant’s (investor’s) group of entities) pending the registration of the proposal with the Implementing Authority, or during the period from the registration of the applicant (investor) (in case the applicant has been in operation for less than three financial years) are no less than EUR 300,000 (three hundred thousand euros), or the assets of the applicant (investor) (including the assets of the group of the applicant’s (investor’s) enterprises) within the past three financial years pending the registration of the proposal are not less than EUR 1,000,000 (one million euros) (to be assessed whether or not the principal activity of the applicant (investor) is production and the provision of services, and the average annual revenues in the course of three financial years (including the revenues of the applicant’s (investor’s) group of entities) pending the registration of the proposal with the Implementing Authority, or during the period from the registration of the applicant (investor) (in case the applicant has been in operation for less than three financial years) are no less than EUR 300,000 (three hundred thousand euros), or the assets of the applicant (investor) (including the assets of the group of the applicant’s (investor’s) enterprises) within the past three financial years pending the registration of the proposal are not less than EUR 1,000,000 (one million euros).

19. The project must be a contribution to the implementation of at least one objective defined by the EU Strategy for the Baltic Sea Region, approved by European Commission Communication No. COM(2012) of 23 March 2012 (EUSBSR) and published at the European Commission internet website according to the political area ‘Education’ provided for in the EUSBSR Action plan approved by Decision No. SWD(2015)177 Final of 10 September 2015 of the European Commission and published on the internet website of the European Commission as

20. The duration of the projects submitted according to the Description shall be maximum 36 months from the project contract signature date.

21. In certain cases in view of some objective reasons that the project implementer was not in a position to foresee at the time of the submission and the evaluation of the proposal, the duration of the projects referred to in Item 20 of the Description may be extended in the procedure specified in the Project Regulations, but in any case for no longer than three months, and without infringing the time limits referred to in Items 213.1 and 213.5 of the Project Regulations.