AN INNOVATIVE AND ECO-EFFICIENT PRODUCTIVE SYSTEM

AN INNOVATIVE AND ECO-EFFICIENT PRODUCTIVE SYSTEM

Key area of intervention 1.1 - Productive investments and preparation for market competition, especially of SMEs

Operation: a) Support for strengthening and upgrading the productive sector by tangible and intangible investments;

For small and medium-sized enterprises - small projects: max value of grant 250,000 Euro;

For small and medium-sized enterprises - large projects: value of grant 250,001-1,500,000 Euro;

Eligibility criteria

Eligibility criteria for applicants

• Applicants are small and medium-sized enterprises as defined according to Law no. 346/2004, with further modifications and completions (except microenterprises);
• Applicants are registered with the Trade Register as commercial companies and operate on Romanian territory;
• The enterprise is not in bankruptcy or liquidation procedure, business is not managed by a syndic judge, has no restriction over its commercial activities, is not subject to a creditors' arrangement;

The applicant does not have overdue public debts, and carried out in time the payment obligations concerning taxes, duties, and other contributions to state budget, special budgets and local budgets as stipulated by the legislation in force;

The legal representative of the applicant was not convicted in the last 3 years, by a Court of Justice, for professional reasons, or reasons of professional ethics;

• The legal representative of the applicant does not provide false information ;
• The enterprises are not in difficulty according to the Community Guidelines on state aid for rescuing and restructuring firms in difficulty (EC Official Journal no C244/01.10.2004):

The enterprise  must have operational profit in the last financial exercise;

The applicant has the financial resources needed for project co-financing;

• The applicant must provide a guarantee issued by a financial institution for at least 50% of the grant for the expected project duration, and of 20% for 3 years after project completion;

Enterprises must be registered and operate according to the following NACE codes: D.00 - Manufacturing industry (except arms and ammunition), F.00 - Construction and CB - Extractive industry - non-energetic products (these NACE codes are valid until 31.12.2007; detailed list of eligible codes, including the classification valid from 1.01.2008, shall be included in the Guide for applicants).

In line with applicable state aid regulations, the following sectors are not eligible: production, primary processing and marketing of agricultural products listed in Annex 1 to the EC Treaty, ship building, coal, steel industry and synthetic fibres.

In addition, food industry is also excluded and will be eligible for funding under the National Rural Development Plan.

Eligibility criteria for projects

The aim and the objective of the proposal should be in accordance with the specific objectives of the priority axis and key area of intervention;

The project is implemented on Romania's territory;

The size of grant must be within the limits mentioned in the Applicants' guide;

The project shall contain  eligible activities for the operation from those specified in the Applicants' guide

The project duration is within the time limits specified in Applicants' guide

The results must be clearly defined and measurable/quantified and the indicators should be according with those specified in the Applicants' guide

The activities were not financed in the last three years, and are not currently financed, partly or totally, from other public sources;

The project complies with applicable national and community regulations on equal opportunities, sustainable development, public procurement and information and publicity.

The project does not derive from/involve delocalisation from other EU member states (only for large investments for SMEs)

Selection criteria

The relevance of the project for SOP IEC objectives

The project's contribution to achieving the objectives of SOP-IEC / PA1 / operation a), by:

increasing the enterprise turnover after two years from project completion;

innovation level of the project (the share of the costs for licences, patents, trademarks and know-how in the total eligible costs);

job creation and maintenance (during and after project completion);

structure of the investment (share of investments in equipments and machineries in  total eligible costs);

the applicant's own contribution (the share of requested assistance to the maximum support granted);

strengthening the market competitiveness position through project implementation (regional/national/international) - only for large investments for SMEs;

the regional location of the investment (1: North-East, South Muntenia, South-West Oltenia; 2: West,  Centre, North-West, South-East; 3: Bucharest-Ilfov)

the contribution to the horizontal themes (equal opportunities and sustainable development);

The quality and coherence of the project

the justification of the need for public financing - only for large investments for SMEs;

the quality of the technical/financial proposal (clarity, coherence, realism of the proposal related to the proposed activities for financing, appropriate timing, terms and the budget allocation of the project);

the correlation of the project's objectives and results (results are related to activities, the objectives are feasible, the budget is complete and related with the activities and resources, the costs are realistic, the potential risks are correctly identified);

economic benefit of the project - only for large investments for SMEs;

The maturity of the project

level of project preparation (availability of land, stage of preparation of needed technical documents, availability of needed permits/authorisations).

Sustainability of the project

- the applicant's capacity to ensure the operation and maintenance of the investment after project completion (appropriate financial, technical and human resources) for a period of minimum 3 years from the cease of the financial support

Capacity of the applicant to implement the project

management capacity and previous experience in managing and implementing investments/assistance/other projects (ISO certification, number, qualification and relevant experience of the staff).

Draft - For information

Eligible activities

-Excerpt from FDI-

• Setting up a new establishment (production unit/plant), including transfer of an existing production plant as a consequence of a Romanian public authority decision;
• Extending an existing establishment for the increase of production capacity;
• Diversification of production of an existing establishment into new additional products or services;
• Upgrading of the enterprise including change in overall production process of an existing establishment (ex. modernisation of plants, technologically advanced equipment and machinery, automation or mechanisation of existing manufacturing processes, introduction of new production techniques). Environment protection, waste recycling, waste water treatment are financed only related to the above activities;
• Acquisition of intangible assets, such as patents, licenses or unpatented know how;
• Specialized training strictly related to the above mentioned investment activities.

Categories of eligible expenditures

-Excerpt from FDI-

Expenditures for purchase of land, within the limit of 10% of total eligible costs;

Expenditures for acquisition/construction/modernization of buildings up to a maximum of 50% of total eligible costs;

Expenditures for acquisition of machinery and plants;

Expenditures for acquisition, renting or leasing of means of technological transport provided they are strictly necessary to the productive cycle, (only for NACE code F - Construction, and CB- Extractive industry- non-energetic products )

Expenditures for acquisition of patents, trade marks, licences, know-how, or unpatented know-how including software only related to production process and managerial requirements of the enterprise;

Expenditures for project design, direction of works, feasibility studies and environmental impact studies, project management up to a maximum of 10% of the overall eligible costs;

Expenditures for specialized training of the operational staff (directly related to the acquired technology/equipment/software).