Contracting Authority:

Ministry of Regional Development of the Republic of Poland

(Joint Managing Authority)

LITHUANIA-POLAND-RUSSIA

CROSS-BORDER COOPERATION PROGRAMME 2007-2013

European Neighbourhood and Partnership Instrument

EC Decision no K(2008)8352of 17 December 2008

GUIDELINES
FOR GRANT APPLICANTS

Reference:LPR1

Deadline for submissionof proposals: 15 September 2010

NOTICE

This is an open Call for Proposals, where all documents are submitted at one stage. First, applications shall be subject to an administrative check and the verification of eligibility. The verification of eligibility will be undertaken on the basis of the supporting documents requested by the Contracting Authority and the signed "Declaration by the Applicant" sent together with the application. The next step consists of a qualitative evaluation of proposals which have passed the administrative check and the verification of eligibility..

This Call for Proposals is launched under suspension clause linked to the ratification bythe Russian Parliamentof the FinancingAgreement signed between the European Commission and Russia on November 18th 2009.

Please note that English version of the documents was approved by the Joint Monitoring Committee

(JMC) and take precedence over other language versions (Lithuanian, Polish and Russian).

Table of contents

1.Lithuania-poland-russia Cross-border cooperation programme 2007-2013

1.1Background......

1.2Objectives of the programme and priority issues......

1.3Financial allocation provided by the Contracting Authority......

2.Rules FOR thIS call for proposalS

2.1Eligibility criteria......

2.1.1Eligibility of applicants: who may apply?

2.1.2 Partnerships and eligibility of partners

2.1.3Eligible actions: actions for which an application may be made

2.1.4Eligibility of costs: costs which may be taken into consideration for the grant

2.2How to apply and the procedures to follow......

2.2.1Application form

2.2.2Where and how to send the Applications

2.2.3Deadline for submission of Applications

2.2.4Further information for the Application

2.3Evaluation and selection of applications......

2.4Grant Award Decision......

2.5Conditions applicable to implementation of the action following the JMC decision to award a grant.

2.6Payments and financial verification......

3.LIST OF annexes

1.Lithuania-poland-russia Cross-border cooperation programme 2007-2013

1.1Background

Lithuania-Poland-Russia Cross-Border Cooperation Programme 2007-2013 is implemented in the frame of the European Neighbourhood and Partnership Instrument (hereinafter – ENPI).The Programme is based on the good practice gained during the implementation of the Neighbourhood Programme Lithuania, Poland and Kaliningrad Region of Russian Federation Interreg IIIA/TACIS CBC 2004–2006. The new Programme intends to develop a zone of shared stability, securityand prosperity, involving a significant degree of economic social and political co-operation.The focus will be on joint projects/efforts involving local and regional authorities, associations, NGOs and the general public. The Programme will contribute to building mutualtrust and progressive regional economic integration in line with principles of subsidiary andsustainability.

The legal framework of the programme constitute the following documents:

  • The Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument (hereinafter – ENPI Regulation);
  • The Commission Regulation (EC) No 951/2007 of 9 August 2007 laying down implementing rules for cross-border co-operation programmes financed under Regulation (EC) No 1638/2006 (hereinafter – Implementing Rules);
  • The Cross-Border Co-operation Programme Lithuania-Poland-Russia approved by the European Commission on 17 December 2008 (hereinafter – Programme);
  • The Financing Agreement between the Government of the Russian Federation and the European Union on financing and implementing the Cross Border Co-operation Programme “Lithuania-Poland-Russia” signed in Stockholm on November 18th, 2009;
  • Practical Guide to Contract procedures for EUexternal actions (hereinafter – PRAG), the version applicable for 1 January 2009.

1.2Objectives of the programme and priority issues

The overall objectives of the Programme is to promote the economic and social development on both sides of the commonborder, to work together to address common challenges and common problems and to promote people to people co-operation. These Programme objectives will be implemented through theactivities within the following priorities and measures:

Priority 1. Contributing to solving common problems and challenges:

Measure 1.1. Sustainable use of environment

Measure 1.2. Accessibility improvement

Priority 2. Pursuing social, economic and spatial development

Measure 2.1. Tourism development

Measure 2.2. Development of human potential by improvement of social conditions (sphere, sector etc.) governance and educational opportunities

Measure 2.3. Increasing competitiveness of SMEs and development of the labour market;

Measure 2.4 Joint spatial and socio-economic planning.

The current call for proposals does not cover the Large Scale Projects and the horizontal priority within the Programme devoted to the people to people co-operation (so called micro-projects).

The global objective of the Call for Proposals is to implement the programme goals through support the projects within both programme priorities.

The specific objectives of this Call for Proposals are as follows (explained in the Programme document)

Measure 1.1. Sustainable use of environment

This Measure will support the joint activities addressing theGothenburg Agenda objectives, in particular the wastewaters, improving the quality of waste management and curbing air pollution by differentmeasures, including energy saving and energy efficiency measures enhancement of bioenergyproduction. The Measure also supportssharing knowledge and development joint action plans on renewable energy sources and energysaving, improving publicawareness about the value and importance of sustainable consumption.

Measure 1. 2. Accessibility improvement

TheMeasure 1.2 is focused on practical solutions and on small-scale investments regarding the transportation services, especially on development of the existing border crossing points andthe new ones for local residents and tourists (water, bike and pedestrian points) as well aslocal roads offering important cross-border effects and influence. The Measure shall also support the integration of various transport modes and transport operators. All initiatives and effortsimproving transport accessibility should be based on environmentally friendly solutions.

Measure 2.1. Tourism development

The main aim of this Measure is to develop the tourism infrastructure and to improve the transport accessibility in order to increase the number of incoming and local tourists. The Measure shall also support the marketing and creating integrated tourist products. At the same time the activities to be implemented under this Measure shall contribute to a better dissemination of tourism informationand promotion of the joint tourist products. Development of the tourism infrastructure shouldbe treated as a shared responsibility of the public and private sector.

Меasure 2.2 Development of human potential by improvement of social conditionsgovernance and educational opportunities.

The main goal of the Measure 2.2 is to work on new forms of education, on readjustment of the educational systems and curricula in response to the changing requirements of the labour market.Also the accessibility of educational centres and cater for expansion of the educational infrastructure and for new forms of education shall be supported. The following social spheresare considered essential for development of the civil society formation: combating social exclusion, local community and democracy development, efficient provision of social and health services, intercultural dialogue and understanding, promotion of equal opportunities, increasing working mobility, cultural exchange and, last but not least, prevention of pathology among young people.

Measure 2.3. Increasing competitiveness of SMEs and development of the labour market

The Measure is aimed at the entrepreneurial development by supportingplatforms and networks for liaising between the area’s small and middle-sized enterprises. Itcan also enhance co-operation between intermediary support structures for SMEs aimed atstrengthening cross-border co-operation of the business sector. Also the activities concerning the marketing campaigns to attractforeign direct investments, improvements of the labour market and the availability ofupdated and reliable information necessary for settling down new businesses could be supported.

Measure 2.4 Joint spatial and socio-economic planning

More complex projects focusing on preconditions for the sustainable development ofcross-border functional areas and addressing simultaneously several fields, like: business,tourism development, as well as sustainable use of environment and/or connectivity might bewelcomed under this measure. Some projects might facilitate implementation of the previouslyagreed cross-border strategies for the most sensitive cross-border areas requiring integratedand joint interventions on both sides of the border.

1.3Financial allocation provided by the Contracting Authority

The overall indicative amount made available under this call for proposals is 61000000EUR. The Joint Monitoring Committee reserves the right not to award all available funds.

Indicative division of allocation dedicated to the 1st Call for Proposals between priorities:

Priority 1: 37 277 777,75 EUR

Priority 2: 23 722 222,25 EUR

Size of grants

Any grant awarded under this Call for Proposals must fall between the following minimum and maximum amounts:

  • minimum amount: 100000 EUR
  • maximum amount: 4000000 EUR

No grant may exceed 90% of the total eligible costs of the action (see also section 2.1.4). The balance must be financed from the applicant's or partners' own resources, or from sources other than the European Unionbudget or the European Development Fund.

2.Rules FOR thIS call for proposalS

These guidelines set out the rules for the submission, selection and implementation of actions financed under this Call, in conformity with the provisions of the Practical Guide to contract procedures for EUexternal actions, which is applicable to the present call (available on the Internet at this address:

2.1Eligibility criteria

There are three sets of eligibility criteria, relating to:

  • applicant(s) which may request a grant (2.1.1), and their partners(2.1.2);
  • actions for which a grant may be awarded (2.1.3);
  • types of costs which may be taken into account in setting the amount of the grant (2.1.4).

2.1.1Eligibility of applicants: who may apply?

(1) In order to be eligible for a grant, Applicants must:

  • be legal personsor an entity without legal personality[1]and
  • beas a rule non profit making, acting for public purposesand
  • be specific types of organisations such as: non-governmental organisations, public sector operators, regional authorities, local authorities, international (inter-governmental) organisations as defined by Article 43 of the Implementing Rules to the EC Financial Regulation[2]and
  • be from the eligible Programme area (as stipulated in point 2.1.3).[3]

This obligation does not apply to international organisationsand

  • be directly responsible for the preparation and management of the action with their partners, not acting as an intermediaryand

be registered and located in thecooperation regions and adjacent regions of the programme (as stipulated in point 2.1.3) or

  • in exceptional cases where the project's objectives cannot be achieved without the participation of a partner established within the participant countries but outside the programme area, the participation of this organisation as a partner (i.e. not as a Lead Partner) can be accepted. The participation of organisations located outside of the programme area must be duly justified in the application. In this respect, the organisations registered and located outside the programme area have to prove that: a) they fulfil the respective requirements according to chapter 2.1.1 of these guidelines for applicants; b) they are the only organizations competent in their scope of action for certain parts of the eligible area, e.g. ministries, agencies, national research bodies, water management organizations, natural parks administrators etc.; c) they carry out activities for the benefit of the regions in the programme area.

Examples of potential applicants

  • regional and local authorities; bodies providing public services commissioned by these authorities; other legal entities with the participation of these authorities or acting on their behalf;
  • central bodies, on behalf of regional and local representations responsible for carrying out public tasks at regional/local level;
  • regional and local representations of central government, responsible for carrying out public tasks at a regional/local level;
  • state organisations/institutions;
  • public institutions responsible for environment protection, management of nature protection areas, nature parks and local forestry directorates;
  • public schools, public universities and public educational institutions;
  • non-governmental organisations and non-profit organisations, such asEuroregions, business support organisations, chambers of commerce, organisations promoting tourism, educational and training and research institutions; associations, foundations, parishes etc.

The list is not exhaustive. More information can be found on the Programme website.

(2) Potential applicants and partners may not participate in calls for proposals or be awarded grants ifthey are in any of the following situations:

a)they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

b)they have been convicted of an offence concerning their professional conduct by a judgment

c)which has the force of res judicata; (i.e. against which no appeal is possible);

d)they have been guilty of grave professional misconduct proven by any means which the Contracting Authority can justify;

e)they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the Contracting Authority or those of the country where the contract is to be performed;

f)they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests;

g)they are currently subject to an administrative penalty referred to in Article 96(1) of the Financial Regulation (BUDGET)/ Article 99 of the Financial Regulation (10th EDF). [4]

Points (a) to (d) shall not apply in the case of purchase of supplies on particularly advantageous terms from either a supplier which is definitively winding up its business activities, or the receivers or liquidators of a bankruptcy, through an arrangement with creditors, or through a similar procedure under national law.

The cases referred to in point (e) applicable are the following:

a)cases of fraud as referred to in Article 1 of the Convention on the protection of the European Communities' financial interests drawn up by the Council Act of 26 July 1995

b)cases of corruption as referred to in Article 3 of the Convention on the fight against corruption involving officials of the European Communities or officials of Member States of the European Union, drawn up by the Council Act of 26 May 1997;

c)cases of participation in a criminal organisation, as defined in Article 2(1) of Joint Action 98/733/JHA of the Council;

d)cases of money laundering as defined in Article 1 of Council Directive 91/308/EEC.

e)all other cases mentioned in Section 2.3.3 of the Practical Guide to contract procedures for EC external actions

2.1.2 Partnerships and eligibility of partners

In the section V of the grant application form (“Declaration by the applicant”), applicants must declare that they and their partners do not fall into any of these situations.

Partnership in the project.

For each project, the Applicant shall be appointed by all partners among themselves before submitting the project application. The project is to be presented by the Applicant who acts as the only direct contact between the project and the joint structures implementing the programme. It is the responsibility of the Applicant to create an effective partnership ensuring the proper and sound implementation of the project.

Only the Applicant submits the project application, signs a grant contract with the Joint Managing Authority and assumes full legal and financial responsibility for project implementation vis-à-vis that authority. It alone is responsible to the Joint Managing Authority and it is directly accountable to the authority for the operational and financial progress of activities. The Applicant shall thus assume the following responsibilities:

a)it shall lay down the arrangements for its relations with the partners participating in the project in the partnership agreement comprising, inter alia, provisions guaranteeing the sound financial management of the funds allocated to the project, including the arrangements for recovering amounts unduly paid, sign a Partnership Agreement (corresponding to Annex F “Assumptions to the Partnership Agreement”) with each partner as a prior condition for concluding the Grant Contract with the JMA;

b)it shall submit the project application;

c)it shall sign the contract with the JMA for the whole project budget. Consequently, it will have the financial responsibility for the ENPI funds and co-financing for all partners, including liability to the JMA for the total amount of the ENPI grant;

d)it shall be responsible for ensuring the implementation of the entire project, i.e. the project management and overall co-ordination of the project activities;

e)it shall ensure the monitoring and reporting about progress of the project;

f)it shall ensure that the expenditure presented by the partners participating in the project has been incurred for the purpose of implementing the project, is eligible and corresponds to the activities agreed between the partners;

g)it shall receive the financial contribution from the Joint Managing Authority and it shall be responsible for transferring a part of the grant to the partners participating in the project;

h)it shall reimburse the JMA for the amounts unduly paid for the project;

it shall facilitate the audit trail by all relevant European Union authorities, Joint Managing Authority and national authorities, including keeping of documents as requested by Article 45 of Implementing Rules and the relevant provisions of PRAG. On the territory of the Russian Federation verifications and monitoring will be carried out in accordance with provisions of the Financing Agreement between the Government of the Russian Federation and the European Union on financing and implementing the Cross Border Co-operation Programme “Lithuania-Poland-Russia”.

Partners

Partners participate in designing and implementing the action, and the costs they incur are eligible in the same way as those incurred by the grant beneficiary. They must therefore satisfy the eligibility criteria as applicable on the Applicant himself listed in section 2.1.1. However in duly justified cases the partners may come from the outside programme area[5].