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PHARE Business Support Programme of the European Union UEAPME - SME FIT II

PHARE Business Support Programme of the European Union UEAPME - SME FIT II Grant facilities in Hungary Support for enterprises from EU Structural Funds by Tamás Rettich, Bucharest, 08 December 2008 Source: Hungarian Grant Agency and MAG Zrt. Content : NDP I. vs. NHDP

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PHARE Business Support Programme of the European Union UEAPME - SME FIT II

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  1. PHARE Business Support Programme of the European Union UEAPME - SME FIT II Grant facilities in Hungary Support for enterprises from EU Structural Funds by Tamás Rettich, Bucharest, 08 December 2008Source: Hungarian Grant Agency and MAG Zrt.

  2. Content: • NDP I. vs. NHDP • Grant areas and some cases • General experiences until 2008 • Open calls • What to expect in 2009

  3. National Development Plan 2004-2006 (NDP I.) vs. New Hungary Development Plan 2007-2013(NHDP)

  4. Structural Funds for Hungary – 2007-2013 • € 25.3 billion from the EU (CF and SF) • 7 regions (6+1) • Main objectives of the New Hungary Development Plant (NSRF) • to increase employment • sustain long-term growth • 6 thematic and territorial priorities • Transport • Social renewal • Environment and energy • State reform • Regional development • Economic development

  5. Grant areas • Machinery and technology development / investment • Logistics centres and services • Employment creation • IT and e-commerce • Regional service centres • R&D, innovation • Tourism and accomodation development • Training, education • Industrial parks and zones • Energy and environment • Tax allowance and direct subsidy assessed by individual Government decision (EKD)

  6. Some cases: logistics Client: Transdanubia Logisztikai Kft., Austria Sector: logistics Project: establishment of new logistics center Project volume: around 1 billion HUF Amount granted: 120 million HUF

  7. Some cases: machinery development Client: Szilánk Zrt., Hungary Sector: glas manufacturer Project: procurement of new machinery and technology Project volume: 522 million HUF Amount granted: 150 million HUF

  8. Some cases: training Client: HENKEL, Germany Sector: chemical industry Project: training of employees Project volume: 81 million HUF Amount granted: 40 million HUF

  9. Some cases: innovation Client: Medicontúr Orvostechnikai Kft. Sector: producer of optical eye-lenses Project: procurement of new precision machinery and innovation development Project amount: 365 million HUF Amount granted: 182 million HUF

  10. Some cases: IT Client: Dombó-Coop Zrt. Sector: retail Project: ERP system Project amount: 36 million HUF Amount granted: 18 million HUF

  11. Some cases: Individual Governmentdecision projects (EKD) Investment volume: at least 10 million EUR (ca. 2,5 billion HUF) Job creation potential: at least 10 employees Amount of subsidy: decided individually by Government Provider:Ministry for National Development and Economy through mediation of ITD Hungary Cases: Knorr-Bremse, Infineon, Sedesa

  12. Main criticism of implementation before 2007 • Slow procedures in project evaluation, contracting and payments • Complicated institutional system with too many organisations • Excessive administration burden • Too strict guarantee/collateral system • Weak transparency

  13. General experiences until 2008 • Routing time:fromsubmission to payment > ca. 8-12 months • Procedures:simpler annex list > accounts/contracting/monitoring still complicated • Cover, securities: simplifications • Strict labour requirements:www.ommf.gov.hu and www.egyenlobanasmod.hu • Strong companies tend to attract funds, applications

  14. EDOP calls currently available

  15. What to expect in 2009? • Boom in the field of grants • Transfer of funds, more funds available for economic development • Focus on SMEs in 2008 - Probably large companies eligible in more areas in 2009 • Higher intensity rates • Focus to safeguard employment • GOP will be announced for public conciliation before end of the year, calls for proposals expected end of January, February 2009 • Crisis: Hardly any investments without subsidy (we had received appr. three times more inquiries during the last 3 months compared to 2007...) Recommendation – anyone planning to invest should check eligibility, funding opportunity!

  16. PHARE Business Support Programme of the European Union UEAPME - SME FIT II Thank you for your attention! and many thanks for Hungarian Grant Agency Zrt.www.mapi.huE-mail: mapi@mapi.huand for MAG – Hungarian Economic Development Centrewww.magzrt.huE-mail: info@magzrt.hu

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