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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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slide1

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.

content
Content:
  • NDP I. vs. NHDP
  • Grant areas and some cases
  • General experiences until 2008
  • Open calls
  • What to expect in 2009
structural funds for hungary 2007 2013
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
grant areas
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)
some cases logistics
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

some cases machinery development
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

some cases training
Some cases: training

Client: HENKEL, Germany

Sector: chemical industry

Project: training of employees

Project volume: 81 million HUF

Amount granted: 40 million HUF

some cases innovation
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

some cases it
Some cases: IT

Client: Dombó-Coop Zrt.

Sector: retail

Project: ERP system

Project amount: 36 million HUF

Amount granted: 18 million HUF

some cases individual government decision projects ekd
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

main criticism of implementation before 2007
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
general experiences until 2008
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
what to expect in 2009
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!

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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