ERDF Schemes Operational Programme I 2007-2013 International Competitiveness Grant Scheme

1. ERDF SchemesOperational Programme I2007-2013International Competitiveness Grant Scheme

2. Overview • The Malta Enterprise ERDF Schemes, • The ERDF International Competitiveness Incentive Guideline, • The Application Form, • The Notes to Applicants and, • Contact Details.

3. 1. The Malta Enterprise ERDF Schemes The objectives for each scheme are outlined below: • International Competitiveness – to develop new market initiatives, • Small Start-Up Scheme – to assist in the setting up and growth of innovative and knowledge based start ups, • Innovation Actions (Innovation) – to support SMEs develop innovative processes, products and services, • Innovation Actions (Environment) – to support SMEs address investment in environmentally-friendly technologies and, • E-business development grant scheme – to propagate the use of ICT in daily business operations. • R&D grants – to increase R&D investment through industry related R&D projects,

4. 2. Incentive Guideline Aim: to support enterprises that are willing to establish a new international market/offer new services, product to existing market. The Scheme: Co-finacing rate: 50% Minimum Project Value: €50,000 Minimum Grant Value: €25,000 Maximum Project Value: €200,000 Maximum Grant Value: €100,000

5. 2. Incentive Guideline Eligible Enterprises • all enterprises are eligible under this scheme excluding: • Enterprises in the agricultural and fisheries sector, • Enterprises in the tourism sector, • Enterprises in sensitive sectors (coal, steel, synthetic fibres), • Enterprises in the retail sector, financial services and gaming.

6. 2. Incentive Guideline Eligible Costs: • Market Development, • Engagement of Business Development Manager and, • Participation in International Promotional Events.

7. 2. Incentive Guideline Eligible Costs: (a) Market Development (up to 50%): • translation services from and to the language(s) of the target market, • consultancy services related to development and creation of a brand. This includes services acquired in relation to the design and development of product branding, packaging and labeling, • Costs for localised marketing material (brochures, leaflets etc) and electronic content (website, CD-ROMs etc) , • Costs leading to the certification of products, processes and services (including, audits and application costs) that may be required (or useful) to sell in target markets.

8. 2. Incentive Guideline Eligible Costs: • Engagement of Business Development Manager (up to 50%): • wage costs of employing a NEW manager to support initiatives in developing the designated market or brand may be part financed; provided that such wage costs relate: • to new employment, • the post is also new to the enterprise, and • is retained for a minimum of three years • Maximum support 24 months, aid capped at €25,000

9. 2. Incentive Guideline Eligible Costs: (c )Participation in international promotional events (up to 50%): • In the case of trade fairs, active participation will mean having a stand at the fair. Active participation in conferences, workshops and other events means that representatives from the enterprise will be delivering a presentation during the event. • Part-funding will be available for: rental of exhibition space/stand which includes stand construction services and related freight costs. • Travel for two persons attending international events, conferences, workshops or networking events, Malta enterprise will part-finance air travel at up to €500 per person per trip. All other means of travel, including taxi service and rail are NOT eligible, all travel must be economy class or equivalent), • Per Diem, beneficiaries may also be granted a per diem of €100 per person, covering a maximum of two persons traveling to an event, for the duration of the event and two additional days to cover traveling days. This per diem is capped to a maximum of 10 days which includes 2 days for traveling.

10. 2. Incentive Guideline • Projects may not: • Be linked to quanities exported; • Be aimed to the establishment and operation of a distribution network; • Address current costs linked to an export activity.

11. 3. The Application Form • Applicant Details: • Thorough description of the applicant and corresponding contact details, including a description of the key products and services provided and an outline of the applicant’s main markets.

12. 3. The Application Form • Project Details: • thorough description of the project, • how it will be implemented from an internal human & financial resource perspective, • the expected benefits derived, • the novelty of the start-up project vis-à-vis the industry it is working in and, • any potential increase in employment.

13. 3. The Application Form Horizontal Priorities: Environmental Sustainability Applicants would need to prove that the project addresses issues such as carbon neutrality and climate change, water, waste, air quality and nature protection were applicable. Equal Opportunities Applicants would need to prove that the project addresses issues such as the involvement of disadvantaged groups in the project; increased participation of females, ensuring accessibility for all and family friendly measures were applicable.

14. Annex 1 – Project Summary

15. Annex 2 – Costs Breakdown – Market Development

16. Annex 3 – Costs Breakdown – Events

17. Annex 4 – Costs Breakdown – Business Development Manager

18. Annex 5 – Disbursement Plan

19. 3. The Application Form Annex 6 – De minimis Declaration: All de minimis aid received should be reported in the corresponding de minimis declaration form.

20. 3. The Application Form Annex 7 – Enterprise Size Declaration Determines the type of enterprise applying, whether it is a large, medium, small, or micro enterprise and determines also if the enterprise applying is autonomous, partner or linked.

21. 3. The Application Form Annex 8 – Audited Financial Statements: The Financial Statements required are the latest Audited Financial Statements (full version, not abridged, including the detailed schedules to the Profit & Loss Account/Income Statement) or the management Accounts (Profit and Loss Statements/Income Statement and Balance Sheet/Statement of Assets and Liabilities) certified by a certified public accountant. In the case of a start up not having the above documentation a business plan (which should include a Profit & Loss Account/Income Statement, Cash Flow Projections and a Balance Sheet/Statement of Assets and Liabilities) would suffice.

22. 3. The Application Form Annex 9 – Supporting Documentation (if applicable): Any supporting documentation (preparatory work & correspondence), need to be attached to this annex.

23. 4. The Notes to Applicants Call for Applications: The indicative budget allocation under this call is €800,000, Malta Enterprise can at its discretion allocate further funds. The call will close on the 25th February 2009 at noon. It is envisaged that during the 2007 – 2013 Structural Funds Programme several calls will be issued.

24. 4. The Notes to Applicants Application Process Submit one hard copy (typed not hand written) of application form & annexes, Sealed application forms, to be deposited in the respective tender box bearing the name of the call, located in the reception area of Malta Enterprise and, Acknowledgement of receipt of application will be issued to all applicants.

25. 4. The Notes to Applicants Eligibility Check: 1.application is complete, 2. the application fits with one of the focus areas of the aid scheme, 3. the applicant has honored/rectified any past obligations or conditions set by Malta Enterprise, 4. the aid being requested is in line with the respective State Aid rules, 5. the project complies with the laws pertaining to the actions being proposed for funding, 6. the applicant is eligible as defined in section 2 (eligibility) of the respective Incentive Guidelines and, 7. the project will be completed within the stipulated timeframes.

26. 4. The Notes to Applicants • Evaluation Process – Preliminary Evaluation (35%): • Risk Appraisal (20%): • age of organisation 5% - the longer the enterprise has been established, the higher the score, • duration of project 5% - longer projects may carry more risk, • project investment costs vis-à-vis applicants net assets 5% - level of financial risk and, • commitment & capacity to implement 5% - level of preparatory work, internal project management structures & financial resources.

27. 4. The Notes to Applicants • Evaluation Process – Preliminary Evaluation (35%): • Extent of need for support (10%):determined through the size of the enterprise & whether it forms part of a network or is a start up (the smaller the undertaking, the higher the score), • Holistic Nature of project (5%): number of eligible intervention areas implemented in the project.

28. 4. The Notes to Applicants • Evaluation Process – Strategic Evaluation(65%): • Thematic Priorities (55%): • project Impact 25% - expected benefits derived from the project, • innovation 10% - the novelty of the project vis-à-vis the industry it is working in, • Operational Programme 1 indicators 10% - the degree to which the project addresses the indicators outlined in the Operational Programme and, • employment 10% - potential to ensure job retention & create possible new employment in the future.

29. 4. The Notes to Applicants • Evaluation Process – Strategic Evaluation(65%): • Horizontal Priorities (10%): • environmental sustainability – project to address issues such as carbon neutrality & climate change, water, waste, air quality & nature protection were applicable, • equal opportunities - involvement of disadvantaged groups, increased participation of females, ensuring accessibility for all & family friendly measures.

30. 4. The Notes to Applicants • Letter of Approval: • value of grant & respective co-financing rate, • details of project & corresponding financial plans and, • compliance with EU council regulations: • 1.eligible costs, • 2.retention of all documentation in a • separate file up to 31/12/2020, • 3.conformity to publicity obligations, • 4.on the spot checks by various National & EU Audit Authorities and, • 5.retention of equipment should be for at • five years from the completion of the project. • Only fully implemented projects will be fully reimbursed otherwise grant will be reclaimed back from the beneficiary.

31. 4. The Notes to Applicants • Publicity Guidelines: • the beneficiary is responsible of informing the public about the assistance obtained from the funds, • acceptance of funding is also an acceptance of their inclusion in the publication of the list of beneficiaries, the names of the operation & the amount of funding allocated to the operation, • commemorative plaques shall be installed indefinitely at a site accessible to the general public and, • any equipment / websites / brochures benefiting from such funding should display the corresponding logos as outlined below.

32. THANK YOU 25423361 dolores.galea@maltaenterprise.com