KICK-OFF MEETING Brindisi, 21 July 2011

1. EcoPlasBrick Innovative recycled plastic based panels for building field AGREEMENT NUMBER: ECO/10/277233/SI2.596954 KICK-OFF MEETING Brindisi, 21 July 2011

2. Agenda • Welcome and introduction of partners • Partners presentation • Project objectives, results and technical description • Coffee break • Financial and Administrative Issues • Work programme and role of each partner • Lunch • Visit to laboratories • Planning of first 6 Months Activities • Meeting closure

3. Agenda • Welcome and introduction of partners • Partners presentation • Project objectives, results and technical description • Coffee break • Financial and Administrative Issues • Work programme and role of each partner • Lunch • Visit to laboratories • Planning of first 6 Months Activities • Meeting closure

4. Partners presentation • Consorzio CETMA • Consorzio TRE • PANDORA GROUP • MOTULAB • ACCIONA • Albanian Constructor Association

5. It’s a nonpolitical and non profit voluntary organization Established the 12th October 2001 Covers all the Republic of Albania territory It counts more than 400 members Albanian Constructors Association

6. To protect and represent the interests and rights of: constructors construction companies companies of construction materials’ production companies of installation design companies and also protect the urban environment ACA’s TARGET

7. Albanian Construction Association serve encouragement in: development of construction contemporaneous techniques of application construction materials production ACA’s TARGET

8. to carry out the activities related to: dissemination and promotion of contacts for the creation of European partnerships; it will facilitate the spreading of ECOPLASBRICK particularly in the Balkans and in East Europe. to favour the introduction in the building market of new, innovative and more environmental friendly products. ACA’s Involvement

9. Allowing a proper market replication in the building sector in Albania. Responsible for disseminating the project results in other European countries. Crucial for the European partnership promotion. ACA’s Involvement

10. Disseminating information and project application through workshops, in Tirana and ACA’s branches. Informing designers through workshops for alternative constructions materials. Advising Constructors Association in Macedonia, Kosovo etc, regarding the project results. ACA’s Role

11. Agenda • Welcome and introduction of partners • Partners presentation • Project objectives, results and technical description • Coffee break • Financial and Administrative Issues • Work programme and role of each partner • Lunch • Visit to laboratories • Planning of first 6 Months Activities • Meeting closure

12. Project objectives, results and technical description Title: Innovative recycled plastic based panels for building field Acronym: EcoPlasBrick Agreement number: ECO/10/277233/SI2.596954 Start: 1 July 2011 End: 30 June 2014

13. The need Plastic waste Separate collection, sorting • Products: PET, PP, PE • By-products: Mixed plastic waste • Landfill • Incineration • Aggregates, Plastic lumbers

14. The need DIRECTIVE 2008/98/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 November 2008 on waste and repealing certain Directives Article 4 Waste hierarchy

15. EcoPlasBrick objectives • To promote an innovative, eco-sustainable and more environmentally friendly recycled plastic-based panel for the building industry, using as raw material scrap resulting from sorting plastic waste, coming from both solid urban and industrial/agricultural/commercial waste. • - To develop a sizeable European market for this new, eco-sustainable building product, initially focusing on the segments of elevated floors and ventilated facades.

16. EcoPlasBrick expected results • Availability to building market of environmentally friendly recycled products able to compete with the traditional ones in terms of mechanical and aesthetical properties • A reduction in the unsorted plastic wastes destined to landfill and incineration and a corresponding increase in the volume sent to mechanical recycling • Creation of partnerships among European industries Product chain Raw material suppliers End users Panel producers Builders

17. EcoPlasBricktechnical description Potential market • Given the ETS (EU Emissions Trading Scheme) proposal for a 20% abatement of CO2 emissions by 2020, growth opportunities for industries in the following areas will arise: • - Use of renewable resources in construction and manufacturing - high market potential; • Resource saving and waste minimizing production processes, involving technologies for process measurement and control - very high market potential. • The production capacity of the new production line of MOTULAB will be 12,000 panels/year. However, the aim is to reach a production of 250.000 tons/year (by the involvement of other plastic panel producers not part of the project) at the end of the project, that represents approximately a 2% market share in EU27

18. EcoPlasBrick technical description Method for the manufacturing of ECOPLASBRICK Panel The innovative idea promoted by this project, is to use mixed plastic waste as the core of a sandwich panel with a gres face-sheet (skins) on both sides. The panel will be obtained using the compression moulding process tested during the preparatory research activities already carried out. The process foresees only a rough grinding of non-washed plastic waste (2/3 cm sized against the 4/8 mm normally requested by other processes).

19. EcoPlasBrick technical description Advantages introduced by EcoPlasBrick solution Compared to its competitors, building products made of recycled plastic panels using the “ECOPLASBRICK” technology have several advantages: - the core of the panels is made of mixed plastic waste, a zero cost raw material, - the process does not foresee the presence of resins or glues, - easy to handle, - resistant and durable, - Recycled and recyclable

20. Technical description Preparatory research

21. Agenda • Welcome and introduction of partners • Partners presentation • Project objectives, results and technical description • Coffee break • Financial and Administrative Issues • Work programme and role of each partner • Lunch • Visit to laboratories • Planning of first 6 Months Activities • Meeting closure

22. Financial & Administrative Issues Budget: Total eligible costs of the action are estimated at 1.832.066 €.

23. Financial & Administrative Issues • Duration of the project: • Starting date – 01/07/2011 • Duration – 36 months • Reporting periods: •  Month 1 – Month 10 – First technical progress report •  Month 1 – Month 20 – Interim technical implementation report and Interim financial statements •  Month 21 – Month 28 – Second technical progress report •  Month 1 – Month 36 – Final technical implementation report and Final financial statements + where required, Certificates on the financial statements

24. Financial & Administrative Issues • Eligibility criteria: • Costs must relate to the action and be necessary • Costs must be reasonable and justified • Costs must have been budgeted • Costs must be generated during the period of the action, i.e. from contract start (exception of costs relating to final reports and audit certificates -> Max. + 2 months) • Costs must abide by the relevant general accounting principles and participant’s internal rules + comply with sound financial management • Costs must be identifiable and verifiable in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards of the country where the beneficiary is established and according to the usual cost-accounting practices of the beneficiary • Costs claimed during project must actually be incurred

25. Ineligible costs (see grant agreement): Return on capital Debt and debt service charges Provisions for losses or potential future liabilities Interest owed Doubtful debts Exchange losses VAT, unless the beneficiary can show that he is unable to recover it Costs covered by another action receiving a Community grant Excessive or reckless expenditure Financial & Administrative Issues

26. All costs should be budgeted in whole Euros Round the figures, do not just hide the decimals All costs should be budgeted net of value added tax (VAT) The proposer may only budget gross amounts (incl. VAT) if he provides a certificate from his tax authority stating he can not recover VAT Financial & Administrative Issues Someformal principles in establishing the budget will ease everybody's life

27. Financial & Administrative Issues • Direct costs: • The eligible direct costs for the action are those costs which are identifiable as specific costs directly linked to performance of the action and which can therefore be booked to it direct. • In particular, the following direct costs are eligible: • Direct staff costs assigned to the action • Travel and subsistence allowances for staff taking part in the action, • Subcontracting costs entailed by other contracts awarded by the beneficiary for the purposes of carrying out the action • The purchase cost of equipment (new or second-hand) • Other specific costs, these are costs arising directly from requirements imposed by the agreement (dissemination of information, specific evaluation of the action, audits, translations, reproduction, etc.)

28. Financial & Administrative Issues • Direct staff costs: • Only technical and specialised staff may be declared • Costs for administrative support staff belong to the indirect cost category • Identify each category of staff in a clear and unambiguous mannerExamples of staff categories: project manager, expert, senior expert, junior expert, senior engineer, technician, etc • The inclusion of freelance ‘staff’ (=inhouse consultants) depends on their contractual terms and conditions of work: • They work in the premises of the beneficiary using its infrastructure • They take directions from the beneficiary • The outcome of the work belongs to the beneficiary • Teleworking only if standard working conditions are applicable to the teleworker

29. Financial & Administrative Issues • Staff cost per hour: • Only the cost of staff assigned to the action may be declared: comprising actual salaries plus social security charges and other statutory costs included in the remuneration. • Real costs = direct labour costs • i.e. wages and salaries plus related obligatory social security charges and other statutory costs (numerator). • The denominator is the average number of productive hours : • Productive hours are the hours worked, whether for a commercial or project purpose or for internal matters • The average number of productive hours observed is 147 hours per month, with a lower limit of 130 hours per month • The EACI will review rate calculations on this basis • The number of hours declared must reflect the work that has been done. • The labour rate reflects the economic conditions prevailing for • the beneficiary.

30. Financial & Administrative Issues Travel & subsistence costs:  Only for staff taking part in the action (travel costs of subcontractors should be included in the subcontracts)  The travel costs should be based on the beneficiary’s usual practices and reflect the most economical options  Keep track of trips (e.g. keep flight boarding passes)  Check if the amount of trips is reasonable

31. Financial & Administrative Issues • Subcontracting: •  Relates to purchase of services, not of goods! • Subcontracting may only cover the execution of a limited part of the action: • Limited tasks outsourced by the beneficiary, and for hiring special expertise • Does not include services ancillary to the main work, e.g. printing of documents, which should be declared under "Other specific costs" • Subcontractors should be selected on transparent grounds, to the best offer, taking into consideration price and quality (best value for money) • In a very simplified procedure, three different offers should be obtained and evaluated against common established criteria • Beneficiaries can not subcontract services or sell equipment to one another or internally (e.g. between departments or affiliates)! •  < 35% of total eligible costs, unless justified in Annex I •  A clear description of the service should be given with the name of the provider

32. Financial & Administrative Issues • Equipment: • The purchase cost of equipment (new or second-hand) must be written off in accordance with the tax and accounting rules applicable to the beneficiary and generally accepted for items of the same kind. • Only the portion of the equipment’s depreciation corresponding to the duration of the action and the rate of actual use for the purposes of the action may be taken into, except where the nature and/or the context of its use justifies different treatment.

33. Financial & Administrative Issues • Other specific costs: • These are costs arising directly from requirements imposed by the agreement. Such costs include all the other direct costs that cannot be included under the previous cost categories for direct costs. Examples: • Costs of financial guarantees • Costs of certificates on financial statements • Printing of dissemination material, subscription fees to conferences • Specific evaluation of the action • Travel costs for people who are neither members of staff nor subcontractors (for instance experts) • Translations, reproduction, etc. • Specific costs incurred by the coordinator for fulfilling his responsibilities in his capability of the body responsible for the overall management of the action and the co-ordination of the beneficiaries • !! Electricity & Gas are do not belong to “Other Specific Costs”. They are part of overhead.

34. Financial & Administrative Issues Indirect costs: The eligible indirect costs for the action are those costs which are not identifiable as specific costs directly linked to performance of the action which can be booked to it direct, but which can be identified and justified by the beneficiaries using their accounting system as having been incurred in connection with the eligible direct costs for the action. They may not include any eligible direct costs. Indirect costs are eligible for flat-rate funding fixed at 7% of the beneficiaries total eligible direct costs. Indirect costs need not be supported by accounting documents.

35. Financial & Administrative Issues • Non-eligible costs: • Return on capital • Debt and debt service charges • Provisions for losses or potential future liabilities • Interest owed • Doubtful debts • Exchange losses • VAT, unless the beneficiary can show that he is unable to recover it; • Costs declared by a beneficiary and covered by another action or work programme receiving a Community grant • Excessive or reckless expenditure

36. Financial & Administrative Issues VAT issue: As a general rule - all costs should be declared net of value added tax (VAT) BUT! - The beneficiary may declare gross amounts (incl. VAT) if he/she provides a certificate from his tax authority stating he can not recover VAT

37. Financial & Administrative Issues Budget transfers: A beneficiary may, when carrying out the action, adjust the estimated budget by transfers between items of eligible costs, provided that this adjustment of expenditure does not affect the implementation of the action and the transfer between items does not exceed 20% of the total costs of the action. Beneficiaries may, when carrying out the action, transfer between themselves the estimated budget set out in Annex II, provided that this adjustment of expenditure does not affect the implementation of the action and the transfer does not exceed 20% of the total eligible costs of the recipient beneficiary and the transfer does not exceed 50% of the total costs of the giving beneficiary.

38. Financial & Administrative Issues Funding rates: The Agency will contribute a maximum of 916.033 € for the project.

39. Financial & Administrative Issues • Payments: •  First pre-financing • The first pre-financing is intended to provide the beneficiaries with a float. • The Agency will transfer the First pre-financing to the coordinator within 45 calendar days from the date when the signed agreement and all the mandates are officially received. • The first pre-financing is equal to 30% of the maximum EC funding specified in the agreement, i.e. 30% * 916.033 € = 274.809,90€ •  Second pre-financing • The coordinator may request a second pre-financing payment provided that 100% of the first pre-financing payment has been used up. • The amount of the second pre-financing shall be paid to the coordinator upon approval by the Agency of the interim technical implementation report of the action and the interim financial statements. • The aggregate amount of the pre-financing payments shall represent 60% of the maximum amount of the grant. •  Payment of the balance (thefinal payment) • Payment of the balance, which may not be repeated, is made after the end of the action on the basis of the costs actually incurred by the beneficiaries in carrying out the action, and deducting the amount of any pre-financing previously paid to the beneficiary. • The payment of balance shall be effected on approval by the Agency of the final technical implementation report of the action and the final financial statements.

40. Financial & Administrative Issues Payments (2): *Provided that 100% of the first pre-financing payment has been used up ** Based on the eligible costs actually incurred, and considering the amount of any pre-financing previously paid to the beneficiary

41. Financial & Administrative Issues Certificate on financial statements: Each beneficiary for whom the amount of Community funding exceeds 150.000 € shall provide an external audit report on the action’s accounts at the time of the Final payment.

42. Consortium Agreement

43. Financial & Administrative Issues • Consortium Agreement • Structure: • Definitions • Purpose • Entry into force, duration and termination • Responsibilities of Parties • Liability towards each other • Governance structure • Financial provisions • Action results • Access rights • Non-disclosure of information • Misellaneous • Signatures • Attachments

44. Financial & Administrative Issues Consortium Agreement 6. Governance structure The Steering Committee is the decision-making body of the Consortium. The PSC consists of 6 members, i.e. one representative of each partner. Each representative in the PSC will be authorised to act on behalf of the partner who appointed him. The PSC will be chaired by the Project Co-ordinator. The PSC will be established during the kick-off meeting. It is in charge of monitoring and supervising the progress of the project according to the agreed workplan and in the respect of the contract obligations. It is responsible for pointing out any evidence of mishandling or wrongdoing of the partners of the Consortium and requesting immediate remedial actions.

45. Financial & Administrative Issues • Consortium Agreement • Structure: • Definitions • Purpose • Entry into force, duration and termination • Responsibilities of Parties • Liability towards each other • Governance structure • Financial provisions • Action results • Access rights • Non-disclosure of information • Misellaneous • Signatures • Attachments

46. Financial & Administrative Issues Consortium Agreement 7. Financial provisions 1. Principles of financial contribution distribution The Project will be co-financed by the Agency at the following funding rates:

47. Financial & Administrative Issues 2. Funding principles Each party will be funded in accordance with its actual duly justified eligible costs only. If a Party spends more than its allocated share of the Consortium Budget will be funded only in respect of duly justified eligible costs up to an amount not exceeding that share. 3. Payment schedule Two separate instalments for pre-financing First pre-financing Second pre-financing The Final payment

48. D’Appolonia S.p.A., based on its long experience in the coordination of EC-funded projects (including projects under programmes managed by the EACI), will support the Coordinator (CO) CETMA in its management role for all the project duration Activities of the Company will include administrative, contractual and financial assistance D’Appolonia will also provide support to CETMA concerning market analysis and road-mapping activities Management support to the CO

49. Management structure and procedures

50. Organisational structure and decision-making mechanisms Management structure