ERDF Schemes Operational Programme I 2007-2013

1. ERDF SchemesOperational Programme I2007-2013 ERDF Innovation Actions Grant Scheme (Innovation)

2. The Malta Enterprise ERDF Schemes The ERDF Innovation Actions Grant Scheme The Application Form The Notes to Applicants Contact Details Overview

3. The objectives for each scheme are outlined below: International Competitiveness – to support enterprises tap into new markets. Small Start-up – to facilitate the setting up and growth of innovative knowledge based small start-up enterprises. e-Business Development – to assist SMEs make use of ICT in their daily business operations. Innovation Actions (Environment) – to support SMEs invest in environmentally-friendly technologies. Innovation Actions (Innovation) – to support SMEs develop innovative processes, products and services. R & D Grants – to assist enterprises invest in industry driven projects to be in a better position to develop new products and processes. 1. The Malta Enterprise ERDF Schemes

4. ERDF Innovation Actions Grant Scheme (Innovation) Incentive Guideline

5. - Aim Eligible Sectors Ineligible Sectors The Scheme Eligible Costs Additional Provisions 2. Incentive Guideline

6. Aim: To help SMEs meet today’s business challenges by stimulating innovative processes, products and services and organisational innovations. 2. Incentive Guideline

7. Eligible Sectors: Small, and Medium-sized Enterprises (SMEs) 2. Incentive Guideline

8. Ineligible Sectors: Government controlled or owned entities Undertakings engaged in: the primary production of agricultural products the retail sector tourism activities the coal industry the steel industry the gaming industry shipbuilding financial services the synthetic fibres sector Undertakings in difficulty 2. Incentive Guideline

9. 2. Incentive Guideline The Scheme: Minimum Project Value: € 50,000 Co-financing of eligible costs:

10. Eligible Costs: Consultancy Services Investment costs in Tangible and Intangible Assets 2. Incentive Guideline

11. Eligible Costs: Consultancy Services i. Consultancy and services required for implementing IMTs, which include: - lean management techniques - quality management - technology watch and audits - technology transfer - business process re-engineering - benchmarking. ii. Consultancy and services required in relation to process, product or organisational innovation. 2. Incentive Guideline

12. Eligible Costs: Investment costs in Tangible and Intangible Assets Investment costs which should result in: i. the diversification of output of the enterprise ii. a fundamental change in the overall production process. 2. Incentive Guideline

13. Costs NOT considered eligible: Refurbishing Replacements of existing equipment / machinery Maintenance 2. Incentive Guideline

14. Additional Provisions: The following additional provisions shall apply to any costs that may be supported: i. Tangible assets shall include plant, machinery and equipment. ii. Intangible assets means assets acquired in relation to the transfer of technology and may include the acquisition of patent rights, licences, know-how or unpatented technical knowledge. iii. All assets including intangible assets must be included in the Capital Assets Register. 2. Incentive Guideline

15. Additional Provisions: iv. Investments in second hand equipment are not eligible. v. Costs related to the generation of energy through renewable energy sources and energy saving measures are not eligible. vi. All funding will be based on reimbursement of eligible costs. vii. All funding must be on costs incurred by the applicant after the aid is granted. viii. All consultancy or services must be subcontracted and must not be of a continuous or periodic nature, nor relate to the enterprise’s usual operating expenditure, such as routine tax consultancy services, regular legal services or advertising. 2. Incentive Guideline

16. ERDF Innovation Actions Grant Scheme (Innovation) The Application Form

17. How to apply Application Form Structure The Application Form

18. How to apply: Documents to refer to: The Application Form

19. - Application Form and all relevant annexes have to be type-written, signed and dated To be deposited in the relevant Tender Box at Malta Enterprise reception, San Gwann An acknowledgement of receipt of application will be issued upon submission of application The Application Form

20. Application Form Structure: Applicant Details Project Details Horizontal Priorities Annexes Personal Data Protection Declaration Notes to the Application Form The Application Form

21. 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. The Application Form

22. Project Details: Thorough description of the innovative project, including how the project will be implemented from a HR and financial resource perspective, the expected benefits and any preparatory work already undertaken by the applicant. The Application Form

23. c. Horizontal Priorities: The Horizontal Priorities of environmental sustainability and equal opportunities are cross-cutting themes defined by the EU that will be used to evaluate all projects under the ERDF Innovation Actions Grant Scheme (Innovation). This section will request the applicant to outline how the project will address environmental sustainability issues and equal opportunities. The Application Form

24. d. Annexes: Annex 1 – Project Cost Annex 2 – Costs Breakdown – Consultancy Services Annex 3 – Costs Breakdown – Investment Costs in Tangible and Intangible Assets Annex 4 – Disbursement Plan Annex 5 – Enterprise Size Declaration Annex 6 – Audited Financial Statements Annex 7 – Permits and Approvals Annex 8 – Supporting Documentation The Application Form

25. Annex 1 – Project Cost The Application Form

26. Annex 2 – Costs Breakdown – Consultancy Services The Application Form

27. Annex 3 – Costs Breakdown – Investment Costs The Application Form

28. Annex 4 – Disbursement Plan The Application Form

29. Annex 5 – Enterprise Size Declaration Determines the type of enterprise applying, whether it’s large, medium, small or micro enterprise and will also determine if the applying enterprise is autonomous, partner or linked. The Application Form

30. Annex 6 – Audited Financial Statements The Financial Statements required are the latest full version Audited Financial Statements or the Management Accounts (Profit & 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. The Application Form

31. Annex 7 – Permits and Approvals Applicant will show proof of permits and approvals from relevant government entities. Projects in need of permits and approvals, should submit a copy of the application for the relevant permits with the application form. Following evaluation, the short listed applicants would need to submit such permit prior to the issuing of the Letter of Approval. The Application Form

32. Annex 8 – Supporting Documentation (if applicable) Any supporting documentation (preparatory work and correspondence) need to be attached as Annex 8. The Application Form

33. ERDF Innovation Actions Grant Scheme (Innovation) The Notes to Applicants

34. Call for Applications Eligibility Check Evaluation Process Letter of Approval 4. The Notes to Applicants

35. Call for Applications - This is a competitive call with a total budget of € 1.5 million - The call for Applications is published on ME website www.20millionforindustry.com - Closure of Call - 12noon of Wednesday, 11th March, 2009 4. The Notes to Applicants

36. Eligibility Check - Application shall be complete - Application shall fit one or more of the focus areas of the scheme - Applicant has honoured any obligations set by ME - Within State Aid parameters - Project need to comply with the laws pertaining to the actions being proposed - Applicant is eligible - The project will be completed within 24 months. 4. The Notes to Applicants

37. Evaluation Process: i. Preliminary Evaluation (35%) - Risk Appraisal - Extent of need for support - Holistic nature of the project ii. Strategic Evaluation (65%) - Thematic Priorities - Project Impact - Innovation - Operational Programme I Indicators - Employment - Horizontal Priorities - Environmental Sustainability - Equal Opportunities 4. The Notes to Applicants

38. i. Preliminary Evaluation (35%) - Risk Appraisal – 20% a. Age of organisation – 5% - the longer the enterprise has been established, the higher the score. b. The duration of the project – 5% - longer projects may carry more risk. c. Project Investment Costs vis-à-vis applicant’s Net Assets – 5% - level of financial risk. d. Commitment and capacity to implement – 5% - level of preparatory work, internal project management structures and financial resources. 4. The Notes to Applicants

39. -Extent of need for support – 10% determined through the size of the enterprise and whether it forms part of a network or is a start-up. - Holistic Nature of Project – 5% - marks are awarded in line with the number of eligible actions to be implemented. 4. The Notes to Applicants

40. ii. Strategic Evaluation (65%) - Thematic Priorities – 55% a. Project Impact – 25% - expected benefits from the project. b. Project Innovation – 10% - the innovative nature of the project with regards to the potential to develop new products, processes and services will be assessed. c. Operational Programme I Indicators – 10% - the degree to which the project contributes to increasing the number of SMEs launching new or improved products. d. Employment – 10% - potential to ensure job retention and create new employment in the future. 4. The Notes to Applicants

41. - Horizontal Priorities – 10% a. Environmental Sustainability - 5% - project to address issues such as carbon neutrality and climate change, water, waste, air quality and nature protection where applicable. b. Equal Opportunities – 5% - involvement of disadvantaged groups in the project; increased participation of females, ensuring accessibility for all and family friendly measures. 4. The Notes to Applicants

42. Letter of Approval: Value of Grant Respective Co-financing Rate Details of Project and corresponding financial plans Compliance with EU Council Regulations: - Eligible Costs - On-the-spot checks by various National and EU Audit Authorities - Retention of all documentation in a separate file up to 31/12/2020 (including the application form & annexes) - Retention of equipment as per Article 57 (1) for 5 years - Opening of a separate bank account - Conformity with publicity obligations Only fully implemented projects will be fully reimbursed otherwise grant will be reclaimed back from the beneficiary. 4. The Notes to Applicants

43. 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 and the amount of funding allocated to the operation. - Commemorative plaques shall be installed indefinitely at a site accessible to the general public. - Any equipment / websites / brochures benefiting from such funding should display the corresponding logos in line with the Publicity Guidelines. 4. The Notes to Applicants

44. Further information on the scheme, may be obtained by contacting Malta Enterprise during office hours. Postal Address: Malta Enterprise Enterprise Centre Industrial Estate San Gwann SGN 3000 Malta Tel: +356 2542 3432 Fax: +356 2542 3401 Website:www.20millionforindustry.com e-mail: marianne.copperstone@maltaenterprise.com 5. Contact Details

45. THANK YOU