IPA Cross-Border Programme Serbia – Bosnia and Herzegovina

1. IPA Cross-Border ProgrammeSerbia – Bosnia and Herzegovina Workshop for Potential Applicants Sremska Mitrovica, June 7, 2012

2. Agenda

3. Cross-Border Programme Serbia – Bosnia and Herzegovina 2007–2013 Total eligible area 32.982,01 km2 Total population 2.967.023

4. Objective and Priorities of the Programme Overall Objective To stimulate the economies and to reduce the relative isolation of the eligible area by strengthening joint institutional networks and the capacities of human resources. PRIORITY I Social and economic cohesion through actions to improve physical, business, social and institutional infrastructure and capacity. Measure I.2 Cross-border initiatives targeting the exchange of people and ideas to enhance professional and civic society cooperation. Measure I.1 Improving the productivity and competiveness of the areas’ economic, rural and environmental resources. PRIORITY II Technical Assistance

5. Programme Management Structures SERBIA BOSNIA AND HERZEGOVINA • EU Integration Office of the Government of the Republic of Serbia • Directorate for European Integration Operating Structure (OS) Joint Monitoring Committee (JMC) • Oversees the programming and effective implementation of the Programme; • Equal number of representatives from both countries – representatives of national, regional and local institutions; • Responsible for selecting projects to be financed under the Programme. Joint Technical Secretariat (JTS) • Based in Užice (Serbia) with the Antenna located in Tuzla (BiH); • Responsible for the day-to-day management of the Programme; • Main contact point for applicants and beneficiaries in the field.

6. Contracting Authorities EUD to Srbija European Union Delegation to Serbia responsible for all contract and payment issues including signature of contracts. Serbia Contracting Authorities EUD to BiH European Union Delegation to Bosnia and Herzegovina responsible for all contract and payment issues including signature of contracts. B i H

7. Implementation of the Programme • Open Call • Time for submission of applications – 3 months • Joint project – one application • Cross-border partnership – two applicants • Separate financing – two contracts • Lead Functional Partner principle • Pre-financing principle – 80%

8. Guidelines for Applicants • Objective of the Programme and priority issues, • Financial allocations, • Eligibility of applicants and partners, • Types of eligible actions and costs, • How to apply and procedures to follow, • Evaluation and selection of application, evaluation grids, • Conditions of the implementation upon the decision of the Contracting Authority to approve the grant.

9. Implementation of the Programme • 1st Call for Proposals • 8 July 2009 – 6 October 2009 • 74 applications received • 19 projects financed • 2nd Call for Proposals • 5 September2011 – 5 December 2011 • 149 applications received • ??? projects financed

10. Financial Allocations2012/2013

11. Co-financing Rules

12. Size of Available Grants per Measure/2nd CfP/

13. Mjera I.1 12 – 24 mjeseci Trajanje projekta Mjera I.2 6 – 12 mjeseci

14. Who may Apply? /2ndCfP/ In order to be eligible for a grant, applicants must: • Be established in Serbia when applying for the allocation for Serbia and be established in Bosnia and Herzegovina when applying for the allocation for Bosnia and Herzegovina; • Be non profit legal persons established by public or private law for the purpose of public interest of specific purpose of meeting needs of general interest; • Be directly responsible for the preparation and management of the action with their partners, not acting as an intermediary.

15. Categories of Applicants • Regionaland local public authorities; • Asocciations of municipalities; • Development agencies; • Local business support organizations; • Tourism and cultural organisations/associations; • Non-governmental organizations, including Red Cross and Red Crescent national societies; • National authorities/institutions with operations in eligible area; • Bodies and organizations, (including NGOs) for nature protection; • Bodies responsible for water management; • Fire/emergency services; • Schools, colleges and educational and research institutions; • Universities, including vocational and technical training institutions; • International organizations.

16. Other Participants in the Action • Each Applicant may act with or without partners and have as many other partners as they consider appropriate; • Partners have to meet the same eligibility criteria as applicants. • Partners must be established in the EU, a country beneficiary of the IPA, or the ENPI, or Member State of the EEA Partners Associates • May play a real role in the action, but may not receive funding from the grant with the exception of per diem or travel costs; • Do not have to meet the same eligibility criteria as partners. Subcontractors • Neither partners nor associates and are subject to the procurement rules set out in Annex IV to the standard grant contract; • The Applicant will act as the lead organisation, if selected, as the contracting party (the “Beneficiary”) for subcontracting.

17. Types of AMeasure I.1 – Axis: Economic Development The following list is not exhaustive! • Support to joint innovative actions aimed at introducing new tourist practices; • Establish networks and associations for the purpose of achieving a coordinated development of joint entrepreneurial activity; • Know-how transfer for improving knowledge and skills of people in entrepreneurship, new technologies, marketing, promotion; • Joint activities for development of basic infrastructures for protection of historical, cultural, artistic, and linguistic heritage in the cross-border area; • Marketing and joint activities to enhance typical products in the cross-border area; • Development of activities designed to support cooperation between SMEs, education and research & development organizations for improving business innovativeness and technology; • Joint vocational /adult training projects addressing market demands and sectorial skills shortfalls; • Research studies to identify market gaps, market opportunities, high value products and dissemination of results across the border region; • Joint initiatives for establishing cross-border clusters (e.g. multi-media, tourisms, ICT, food processing, electronics, biotechnology); • Stimulate use of ICT in manufacturing, for tourism information and for the marketing & management of SMEs; • Support to (re-)building or up-grading of small-scale tourism infrastructure (walking paths, cycle routes, equipping visitor centre, information points, networking tourism centres).

18. Types of ActionMeasure I.1 – Axis: Environment The following list is not exhaustive! • Support to integrated protection and management of sensitive ecosystems and proper use of surface waters; • Support development of integrated environmental monitoring systems and databases; • Actions designed to reduce the negative effects on environment and encourage environment-friendly economic activities; • Support improvements of the waste water and solid waste disposal systems, aimed at protecting the area from on-going pollution; • Actions designed to prevent and manage natural disasters and man-made environmental hazards; • Cross-border cooperation between bodies and organizations involved in environmental protection and management of protected sites; • Actions designed to deal jointly with pollution; • Cooperation on matters pertaining to the provision of information and awareness raising of the population about the importance, protection and promotion of the environment and natural heritage; • Preparation of feasibility studies and other technical documentation for large-scale infrastructure interventions, to be financed by sources other than this Programme; • Biological and biodiversity studies; • Environmental education programs; • Architecture and urban planning studies.

19. Types of ActionMeasure I.1 – Axis: Social Cohesion The following list is not exhaustive! • Actions to improve the flow of information and communication between border regions; • Support for the fight against social exclusion including bilateral actions for the joint solution of common social problems; • Support of joint programmes based on utilization of multiethnic assets; • Education and training initiatives including training /re-training of unemployed and adult education / “training for life” programmes across the border; • Support of joint health protection and related activities and building sustainable health protection awareness system in particular for vulnerable and Roma groups; • Support introduction of EU practices and models for promoting health in schools.

20. Types of ActionMeasure I.2 – Exchange of People and Ideas The following list is not exhaustive! • Joint promotion of the region's common cultural heritage including the organization of cultural and sporting events; • Festivals of culture, music, celebration of local history or natural attractions; • Co-operative scientific and cultural research projects; • Exhibitions on local or regional themes; • Educational exchange programmes, including arranging seminars of joint interest to schools and universities; • Focused education/training programmes for specific needs; • Organization of local exhibitions or fairs;

21. Types of ActionMeasure I.2 – Exchange of People and Ideas The following list is not exhaustive! • Youth exchange activities from both sides of the border; • Planning of joint events between neighboring communities; • Establishing communication networks between communities; • Meeting specific training needs for minorities or handicapped persons; • Joint institution-building projects (training, re-training, developing partnerships, exchange etc.); • Feasibility studies or project preparation activities for larger projects with a strong cross-border impact could be financed under this measure.

22. Ineligible Actions • Actions concerned only or mainly with individual sponsorships for participation in workshops, seminars, conferences, congresses; • Actions concerned only or mainly with individual scholarships for studies or training courses; • Actions aimed at the upgrading of infrastructure and equipment in privately owned facilities; • Preparatory studies or preparation of Preliminary Works Design for works carried out within the project; • Actions without cross-border impact; • Actions related to profit making activities; • Actions linked to political parties;

23. Ineligible Actions • Actions which fall within the general activities of competent state institutions or state administration services, including local government; • Actions with provisions for financing the usual (routine) activities of the local organisations, especially covering their running costs; • Actions confined to charitable donations; • Actions which envisage to subcontract more than established percentage of the total grant amount to procure services, works and supplies (85% in the Second Call); • Actions related to: - the tobacco industry (CAEN code 16), - production of alcohol distilled beverages (CAEN code 1591), - arms and munitions (CAEN code 296).

24. Cross-Border Aspect The action must involve cross-border cooperation in order to be eligible, i.e. it must: • Take place in the Programme area; • Have effect both in the Serbian and Bosnia and Herzegovina parts of the Programme area; • Foresee cooperation of the cross-border Applicants/Partners in at least one, but preferably more than one, of the following ways: • Joint project development, • Joint financing, • Joint staffing and • Joint implementation.

25. Cross-Border Partnership • Clear cross-border effect • Solving a common problem on both sides of the border • Involves partners from both sides of the border: • Institution/organization registered in the partner country; • Partner’s activities are in line with the project.

26. Cross-Border Partnership Serbia BiH

27. Project example – success story from the 1st CfP Functional lead partner: Project:

28. Project • Project represents a set of interrelated activities to be executed over a fixed period and within certain costs in order to reach certain goal.

29. Project Idea

30. Project Cycle – planning of the project

31. Planning vs. Writing of the Project • Planning of the project – mobilizing and organizing of time and resources for the purpose of reaching certain objectives • Writing of the project – technique of presentation of the project according to procedures and demands of certain donors

32. Logical Framework Aproach

33. Application Form • Information on the applicants and partners, • Concept note and full application form: • Objectives, • Activities, • Relevance, • Methodology, • Sustainability, • Capacity of the applicants, • Indicators, • Declaration of the applicants, • Partnership statements, • Logical framework, • Budget of the project.

34. Financial and operational capacity • Applicants belong to institutions with experience in relevant activities; • Applicants posses certain level of experience in projects of similar size and complexity; • Applicants’ annual turnovers are in line with the requested donation.

35. Relevance of the project • Project application clearly defines general objective and specific objectives; • Project addresses wider community problem; • Target groups are clearly defined; • Project directly addresses target groups solving their problems; • Project has a strong cross-border cooperation.

36. Effectiveness and feasibility of action • Activities proposed are appropriate, practical and consistent with • the objectives and expected results; • Overall design of the action is coherent; • Level of involvement of Partners and other stakeholders in the • Action is satisfactory; • Action plan is clear and feasible; • Proposal contains objectively verifiable indicators for the • outcome of the action and evaluation is foreseen.

37. Sustainability of the action • Activities will continue and can be financed from other sources; • Project envisages development of concepts and knowledge which will be transferred to other institutions and regions in the future; • Established partnership will continue after the end of the project.

38. Budget and cost-effectiveness of the Action • Project costs correspond to the project activities; • Costs are realistic and supported by documents/invoices; • Cost calculation is clearly presented in the budget table and explained in the justification sheet; • All costs are eligible and refer to the activities described in the proposal.

39. Logical Framework Concise presentation of the action with the purpose to enable: • Quality and logical planning and defining of the action, • Clear presentation of the project (to donors and to other stakeholders)and • Assessment and monitoring of the implementation.

40. Indicators • Describe project goals in objectively measurable way and set up standards to be achieved in order to achieve general and specific goal of the project • Indicator defines the difference between the baseline and the situation in the moment of new measurement -the change. It also needed to define the deadline for achievement of planed changes. • The change can be measured in two ways: by quantity (for example: 50 persons received education), or by quality (for example: number of internet users increased for 50%)

41. Beneficiaries and Objectives Beneficiaries are all who can, in any way, benefit from the project implementation The difference can be made between: Final beneficiaries: Overall objective: Those who benefit from the project on long term Achieved after the project completion basis at the level of overall or final and have long term impact on wider territory objective (community or sector, for example and numerous population children, youth, entrepreneurs, tourist workers, transport workers, etc.) Direct beneficiaries: Those who will be directly positively influenced by the project on the level of specific Specific objective: goal i.e. project aim (project implementing Achieved in a course of the project, influencing organizations, project partners, workshop beneficiaries directly involved in planned project and event participants, users activities and achieved results. of the equipment and services, etc.)

42. Logical Framework

43. Logical Framework

44. Logical Framework Check of the intervention logic by applying test IF/THAN When the hierarchy of objectives is read bottom up , it can be expressed in the following way: • IF adequate inputs/resources are provided, THAN activities can be undertaken; • IF activities are undertaken, THAN results can be achieved; • IF results are achieved, THAN the objective will be achieved and • IF the objective is achieved, THAN it will contribute to the general project objective. It can be also read vice versa: • IF we want to contribute to general objective, THAN we have to achieve the goal; • IF we want to achieve the goal, THAN we have to obtain results; • IF we want to obtain results, THAN planed activities have to be carried out and • IF we want to carry out certain activities, THAN we have to apply identified inputs/resources.

45. Logical Framework Example

46. Logical Framework Manual for preparation of the logical framework http://www.evropa.gov.rs/Evropa/ShowDocument.aspx?Type=Home&Id=521

47. Budget for the Action • Very important part of the project proposal and a base for signing of the grant contract; • Costs have to be clear, justifiable, related to the activities and separated per budget items; • Budget has to include all of the eligible costs of the project, including co-financing.

48. Eligible Costs • Eligible direct costs: costs directly related to the activities e.g. promotional materials, travelling costs, staff costs; • Eligible indirect costs (Overheads): costs that cannot be directly related to activities e.g. travelling costs of management, administrative costs, costs of administrative/support staff, as well as the office costs unless the office is opened especially for the duration of the action etc.

49. Eligible Direct Costs • Incurred during the implementation of the action as specified in Article 2 of the Special Conditions to the Standard Grant Contract with the exception of costs relating to final reports, expenditure verification and evaluation of the action; • Presented in the budget of the action; • Necessary for the implementation of the action; • Identifiable and verifiable, in particular being recorded in the accounting records of the Beneficiary; • Reasonable, justified and comply with the requirements of sound financial management, in particular regarding economy and efficiency; • Where the implementation of an operation requires a separate account or accounts to be opened, the bank charges for opening and administering the accounts;

50. Eligible Direct Costs • Legal consultancy fees, notaries fees, costs of technical or financial experts, and accountancy or audit costs, if they are directly linked to the co-financed operation and are necessary for its implementation; • The cost of guarantees provided by a bank or other financial institutions, to the extent that the guarantees are required by national or Community legislation; • The purchase of land for an amount up to 10% of the total eligible expenditure of the Action; • When the financing provided by the CA exceeds € 100,000, conducting an expenditure verification (audit) is obligatory. A report on the verification of the action’s expenditure, produced by an approved auditor who meets the specific conditions of the Terms of Reference for the expenditure verification, shall be produced in accordance with the provisions of article 15.6 of the General Conditions applicable to European Union-financed grant contracts for external actions;