Guidance Notes to the Application Form AXIS II European ... Version... · Guidance Notes to the...

Guidance Notes to the Application Form

AXIS II

European Fisheries Fund 2007-2013

Project Co-financing rate: 75% EU Funds; 25% Nation al Funds

Grant Scheme

For MEASURES FOR PRODUCTIVE INVESTMENTS IN AQUACULTURE, PROCESSING and MARKETING of FISHERY and AQUACULTURE

PRODUCTS

Fisheries Operational Programme 2007-2013 Project part-financed by the European Union

European Fisheries Fund (EFF) Co-financing rate: 75% EU Funds; 25% National Funds

Investing in sustainable fisheries

AXIS II Guidelines to Application Form

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1.1 Introduction........................................................................................................ 6 1.2 Data Protection Disclaimer ................................................................................ 6 1.3 Project Proposals and Requirements of the Operational Programme (OP)........ 7 1.3.1 Objectives of the European Fisheries Fund ....................................................... 7 1.3.2 Specific Objectives of Priority Axis 2 of the Operational Programme 2007 - 2013

.......................................................................................................................... 7 Specific Objectives for Measure 2.1: Productive Investments in Aquaculture........................ 7 Specific Objectives for Measure 2.2: Aqua-environmental Measures .................................... 8 Specific Objectives for Measure 2.3: Investments in Processing and Marketing.................... 8 1.4 Applicant Entities ...........................................................................................................8 1.5 General Eligibility Criteria to apply for funding ...........................................................8 1.6 Measure 2.1: Productive investments in aquaculture ...............................................9 1.7 Measure 2.2: Aqua-environmental measures ............................................................9 1.8 Measure 2.3: Investments in Processing and Marketing .........................................9 1.9 Application Form Validation ..........................................................................................9 1.10 Demarcation between the Grant Scheme and other forms of Structural Funds 10 1.11 State Aid.......................................................................................................... 10 1.12 Target Beneficiaries of the Grant Scheme ....................................................... 10 1.13 Micro, Small, and Medium Enterprises............................................................. 11 1.14 Eligible Expenditure .....................................................................................................11 1.15 Eligible Costs................................................................................................... 22 1.16 Ineligible Expenditure...................................................................................... 22 1.17 Compliance Issues .......................................................................................... 23 1.18 Funding Thresholds ......................................................................................... 23 1.19 MEPA Permits ................................................................................................. 24 1.20 Project Indicators ............................................................................................. 25 Section 2 – The Project....................................................................................................... 29 2.1. Project Name.................................................................................................................29 2.2. Description.....................................................................................................................29 2.3. Project Location & Location Address ........................................................................29 2.3.1. Location Address ..........................................................................................................29 2.3.2. Ownership of Project Location....................................................................................29 2.4. Project Interventions ....................................................................................................30 Description of Project Interventions.................................................................................................30 Measure 2.1: Productive investments in aquaculture...................................................................30 Measure 2.2 Aqua-environmental measures .................................................................................31 Measure 2.3 Investments in processing and marketing...............................................................32 2.5. Quotations .....................................................................................................................33 2.6. Project financing ...........................................................................................................33 2.6.1 Financing of the Project...............................................................................................33 2.6.2 Project Financial Management...................................................................................34 2.7. Project Management ....................................................................................................34 2.8. Project Timeline ............................................................................................................34 Project Duration..................................................................................................................................34 2.9. Commitment to the Project..........................................................................................35 4.1. Checklist of Documents...............................................................................................38 4.2. Submission/Certification ..............................................................................................39 3.1 Selection (Award) Criteria ..........................................................................................................40 3.2 Eligibility criteria ...........................................................................................................................40 3.3 Selection Criteria: ........................................................................................................................41 3.4 Results .........................................................................................................................................42 3.5 Appeals .........................................................................................................................................42 4.1 Commencement of Projects.......................................................................................................44 4.2 Grant Agreement .........................................................................................................................44 4.3 Retention of Documentation ......................................................................................................44


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4.4 Project Progress ..........................................................................................................................45 4.5 Payment Process.........................................................................................................................45 4.6 Publicity .........................................................................................................................................46 4.7 Checks and Monitoring ...............................................................................................................47


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Definitions

• ‘aquaculture’: the rearing or cultivation of aquatic organisms using techniques designed to increase the production of the organisms in question beyond the natural capacity of the environment; the organisms remain the property of a natural or legal person throughout the rearing or culture stage, up to and including harvesting;

• ‘beneficiary’: a natural or legal person who is the ultimate recipient of public aid;

• ‘economic activity’: An enterprise is considered to be any entity engaged in an

economic activity, irrespective of its legal form. This includes in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity

• ‘eligible costs’: are those costs which are eligible for funding under the Scheme,

which consist of both public and private co-financing (refer to Pages 7, 10, and 26 of the document);

• ‘fisheries sector’: the sector of the economy, including all activities of production,

processing and marketing of fisheries and aquaculture products;

• ‘IB - intermediate body’: The EU Affairs Directorate within the Ministry for Resources and Rural Affairs which acts under the responsibility of the managing authority

• ‘ineligible costs’: are those costs which are NOT eligible for funding under the

Scheme, (refer to Page 10 of the document);

• ‘managing authority’: The Funds and Programmes Division within the Office of the Prime Minister which acts as the national entity responsible for managing the EFF;

• ‘measure’: a set of operations aimed at implementing a priority axis;

• ‘micro, small and medium — sized enterprise’: as defined in Commission

Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises;

• ‘new species’: species for which aquaculture production is low or non - existent and

for which there are good market prospects.

• ‘operation’: a project selected according to criteria laid down by the monitoring committee and implemented by one or more beneficiaries allowing achievement of the goals of the priority axis to which it relates;

• ‘operational programme’: the single document drawn up by Malta and approved by

the Commission containing a coherent set of priority axis to be achieved with the aid of the EFF;

• ‘priority axis’: one of the priorities in an operational programme comprising a group of

measures which are related and have specific measurable goals;

• ‘private co-financing’: the percentage that will be co-financed by the beneficiary;

• ‘project duration’: implementation phase and submission of receipts;


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• ‘public co-financing’: the percentage that will be funded through the scheme which consists of 75% EU funding and 25% national funding;

• ‘public expenditure’: any public contribution to the financing of operations whose

origin is the budget of Malta and the Commission;

• ‘reference year’: this refers to the year in which an application form is submitted;

• ‘total project value’: this is made up of the total eligible costs to be covered through public co-financing and private co-financing as well as the total ineligible costs to be covered in full by private co-financing;

• ‘turnover’: the annual sales volume net of all discounts and sales taxes

List of Abbreviations AA: Audit Authority CA: Certifying Authority CFP: Common Fisheries Policy EAFRD: European Agricultural Fund for Rural Development EC: European Commission EFF: European Fisheries Fund EMAS: Eco-management and audit scheme ERDF: European Regional Development Fund EU: European Union FPD: Funds and Programmes Division FB: Final Beneficiary IB: Intermediate Body LM: Line Ministry MA: Managing Authority MC: Monitoring Committee MEPA: Malta Environment and Planning Authority MOP: Manual of Procedures MRRA: Ministry for Resources and Rural Affairs NSP: National Strategic Plan OP: Operational Programme PPCD: Priorities and Planning Coordination Directorate PSC: Project Selection Criteria SAMB: State Aid Monitoring Board SME: Small and Medium Enterprises VAT: Value added tax


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Part 1 – Introduction to the Guidance Notes

1.1 INTRODUCTION

The primary aim of this document is that of a guidance tool to be used by any prospective applicant in identifying whether an organisation is eligible for assistance, what kind of projects and interventions are eligible for grant assistance, and what are the steps in the application process and eventual implementation of approved projects. These Guidance Notes are intended to assist applicants in the submission of their projects for support under the measures for productive investments, processing and marketing of fishery and aquaculture products. The Guidance Notes set out the main rules of eligibility for the European Fisheries Fund under the Aid Scheme for productive investments, processing and marketing of fishery and aquaculture products, falling under the EFF Operational Programme. All applications submitted under this Grant Scheme for funding will be screened against the Common Eligibility and Selection Criteria, as approved by the Monitoring Committee1. Part 3 provides more details on these criteria and the procedure each Application Form will follow. This document is based on the EFF eligibility and selection criteria which are specified at a more generic level in the following documents:

• Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund (EFF);

• Commission Regulation (EC) No 498/2007 of 26 March 2007 laying down detailed rules for the implementation of Council Regulation (EC) No 1198/2006;

• EFF Vademecum document EFFC/10/2007 of 26 March 2007; • Malta’s National Strategic Plan for Fisheries 2007 – 2013; • Fisheries Operational Programme for Malta 2007 – 2013; • Manual of Procedures EFF • EFF Project Selection Criteria

1.2 DATA PROTECTION DISCLAIMER

This Application Form and any attached documents will be treated as confidential throughout the project Appraisal Process. The project ranking will be made public at the results stage of the Appraisal Process. Any information or personal details enclosed in this application will be protected and solely used according to the Data Protection Act.

1 Held on the 18 April 2012.


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1.3 PROJECT PROPOSALS AND REQUIREMENTS OF THE OPERATIONAL PROGRAMME (OP)

1.3.1 OBJECTIVES OF THE EUROPEAN FISHERIES FUND

The European Fisheries Fund (EFF) shall contribute to support the Common Fisheries

Policy (CFP) objectives, which specifically consist of ensuring the conservation and

sustainable development of the fisheries sector. In order to achieve this, the Fund shall

provide financial support aimed at:

• Supporting the exploitation of living aquatic resources and support aquaculture in

order to provide sustainability in economic, environmental and social terms;

• Promote a sustainable balance between resources and the fishing capacity of the

CFP;

• Strengthen the competitiveness of the operating structures and the development of

economically viable enterprises in the fisheries sector;

• Foster the protection and the enhancement of the environment and natural resources

where related to the fisheries sector;

• Encourage sustainable development and the improvement of the quality of life in

areas with activities in the fisheries sector;

• Promote equality between men and women in the development of the fisheries sector

and fisheries areas.

1.3.2 SPECIFIC OBJECTIVES OF PRIORITY AXIS 2 OF THE OPERATIONAL PROGRAMME 2007 - 2013

Aquaculture, Processing and Marketing of fishery and aquaculture products

SPECIFIC OBJECTIVES FOR MEASURE 2.1: PRODUCTIVE INVESTMENTS IN AQUACULTURE

• The modernisation of existing aquaculture facilities;

• The development of new species that can be commercialised;

• The development and implementation of aquaculture methods that will mitigate the

negative impact on the environment;

• The enhancement of the working and safety conditions of aquaculture workers.


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SPECIFIC OBJECTIVES FOR MEASURE 2.2: AQUA-ENVIRONMENTAL MEASURES

• To promote specific methods of aquaculture production that help to protect and

enhance the environment including natural resources, genetic diversity and

management of landscape;

• To encourage participation in the Community eco-management and audit scheme.

SPECIFIC OBJECTIVES FOR MEASURE 2.3: INVESTMENTS IN PROCESSING AND MARKETING

• To enhance the efficiency of the operations of enterprises involved in processing and

marketing of fish products;

• To enhance product quality and presentation;

• To improve public health and hygiene conditions over and above what is required by

national and/or European legislation;

• To develop and market new products;

• To improve the management and use of by-products and waste.

1.4 Applicant Entities

The scheme is governed by National, Commission and Council regulations including those

stipulated in Part 1 of these Guidance Notes. Applicants must first and foremost plan to

implement a project that relates directly to the fisheries and aquaculture sectors in Malta. In

order to be eligible for funding under this scheme, applicants must be primarily engaged in

an economic activity. An enterprise is considered to be an entity engaged in an economic

activity, irrespective of its legal form. This includes in particular self employed persons,

family businesses engaged in craft or other activities and partnerships or associations

regularly engaged in an economic activity. The beneficiaries should be legal or natural

persons registered with the relevant authorities for aquaculture activities in Malta.

1.5 General Eligibility Criteria to apply for fundi ng

The following sections provide a more extensive and detailed description of the eligibility criteria based on the objectives of the Operational Programme under Priority Axis 2 for measures for productive investments, processing and marketing of fishery and aquaculture products. These criteria must be taken into consideration prior to applying for funding under the scheme.


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1.6 Measure 2.1: Productive investments in aquacult ure

A proposal must meet all the criteria listed below in order to be eligible under this call for proposals. 1. The applicant of this measure has to be a micro, small or medium sized enterprise, as

defined in Commission Recommendation 2003/361EC, that is a legal or natural person registered with the relevant authorities for aquaculture activities in Malta;

2. The operation benefiting from the assistance cannot involve capture based stock; 3. A valid MEPA permit for the proposed development (if applicable); 4. For project which go above 250,000€, the application should include business plan.

1.7 Measure 2.2: Aqua-environmental measures

A proposal must meet all the criteria listed below in order to be eligible under this call for proposals. 1. The applicant must be a micro, small or medium sized enterprise, as defined in

Commission Recommendation 2003/361EC, that is a legal or natural person registered with the relevant authorities for aquaculture activities in Malta;

2. All applicants must commit themselves for a minimum of five years from the date of

finalisation of the project to aqua-environmental requirements that go beyond the mere application of good practice. For forms of aquaculture comprising protection of the environment, natural resources, genetic diversity and management of the landscape and traditional features of aquaculture zones, the environmental benefits of such commitments must be demonstrated by a prior assessment conducted by competent bodies.

1.8 Measure 2.3: Investments in Processing and Mark eting

A proposal must meet all the criteria listed below in order to be eligible under this call for proposals. 1 The applicant must be a micro, small or medium sized enterprise, as defined in

Commission Recommendation 2003/361EC, that is a legal or natural person registered with the relevant authorities for aquaculture activities in Malta;

2 Proposed investments must be for the production of products intended only for human consumption. An exception is made for investments in processing and marketing of products derived from fisheries and aquaculture product waste;

3 No assistance will be given for investments to the retail trade.

1.9 Application Form Validation

To be valid an application form must have the following; • The application must be submitted by the deadline defined in the call; • The application submitted must be complete; • The objective (s) of the proposed action correspond (s) to the relevant objectives

defined under the actions of the EFF Priority Axis 2; • All required documents have been submitted;


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A project cannot get funding from different sources to finance the same project activities; this to avoid double funding. The success of the application form and awarding funds to the project will then depend on the Selection Criteria which form part of the Evaluation Procedure explained in more detail in Part 3 of these Guidance Notes.

1.10 DEMARCATION BETWEEN THE GRANT SCHEME AND OTHER FORMS OF STRUCTURAL FUNDS

The Scheme targets enterprises that are implementing self sustaining projects which will generate economic development. The EU has a number of funding mechanisms that are at the disposal of Member States. As a general principle a project cannot get funding from different sources to finance the same project activities. Should there be this possibility; the organisations managing these funds need to set demarcation guidelines not to overlap. The scheme could potentially experience overlaps with the European Agricultural Fund for Rural Development (EAFRD) as well as schemes implemented by Malta Enterprise, particularly the ERDF Energy Grant Scheme and other EU projects. In all cases Enterprises may not receive funding for the same activity from different national or EU funded incentives. It is the applicant’s responsibility to inform the IB if funding from other national or EU funded incentives is being sourced for the same activity. Failure to do so may result in loss of funds. The IB reserves the right to conduct research and the necessary checks to ensure that there is no overlap in funding.

1.11 STATE AID

State Aid does not apply to the fishery and aquaculture sectors2.

1.12 TARGET BENEFICIARIES OF THE GRANT SCHEME

The Target Beneficiaries of this scheme include: 1. All private enterprises wanting to implement a project in the aquaculture and

processing and marketing sector. This must be micro, small and medium sized enterprises.

2. Co-operatives are eligible to participate because cooperatives are considered as

enterprises. This is based on the definition where co-operatives are defined as an autonomous association of persons united voluntarily to meet their economic, social and cultural needs and aspirations, including employment through a jointly owned and democratically controlled enterprise in accordance with co-operative principles3.

2 As covered by Council Regulation (EC) No 104/2000 of 17 December 1999 3 Chapter 442 of the Co-operative societies act (Act xxx of 2001)


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The applicant has to be registered with the relevant authorities for aquaculture activities in Malta. Those applicants who are not yet registered, need to fill in the relevant application form from the Malta Aquaculture Research Centre. In line with the government’s one-stop-shop policy the Intermediate Body will make available such forms and they may be submitted with this application. All projects with a main objective to enhance the fisheries and aquaculture sector in Malta or which have an evident and direct impact on the performance of the fisheries and aquaculture sector are eligible to apply for co-financing under the scheme.

1.13 MICRO, SMALL , AND MEDIUM ENTERPRISES

The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million. In brief, enterprises may be categorised in the following way:

Enterprise category

Number of Employees Turnover

Medium < 250 ≤ € 50 m

Small < 50 ≤ € 10 m

Micro < 10 ≤ € 2 m

These ceilings apply to the figures for individual firms only. A firm which is part of larger grouping may need to include employee/turnover/balance sheet data from that grouping too.

The annual turnover is taken from the audited accounts of the applicant. The annual turnover is determined by calculating the enterprise’s income received during the latest audited accounts which cannot date back more than 2 years from the date of the application form. Applications from new organisations for which audited accounts are not yet available, should include the forecasts/budgets corroborated by an auditor. This should not include VAT or other indirect taxes.

1.14 Eligible Expenditure

Following the finalisation of the contractual agreement between the successful applicant and the IB, the original invoices and fiscal receipts approved under this measure are to be submitted to the IB. All payments shall be made according to the grant agreement and both the invoices and the associated payments should been dated subsequent to the date of the grant agreement. The applicant has the right to choose any supplier however the eligible expenditure for a cost item shall be equal to the cheapest of three quotes submitted for that cost item. Eligibility Rules laid down by Malta as applicable to the EFF as listed hereunder:


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ELIGIBILITY RULES Eligibility Rules laid down by Malta and applicable to the European Fisheries Fund Programme.

Rule No. 1: Project Management

It is important to note that although functions in relation to project management can be contracted out, nonetheless the legal and financial responsibility of the project rests solely with the Beneficiary. The Beneficiary should undertake regular checks itself on contracted management/supervision. 1. Project management costs are eligible for a contribution from EFF under the following

conditions:

a. Beneficiaries either assign project management through:

i. A service tender taking into consideration public procurement procedures4; or

ii. A specific employment contract on a definite full/part-time basis where the organisation concerned should follow its official channel of recruitment as long as the procedure applied is in line with national legislation, good governance and is transparent5;

b. Evidence of time spent on the EFF activity, such as time sheets or regular reports

must be maintained. c. Project management costs may amount to a maximum of 5% of the total project

eligible costs. 2. Staff working within the applicant organisation (e.g. project leader, financial controllers,

administration officers, etc) will inevitably contribute to the implementation of the project. However, own staff costs related to project management6 are not eligible and cannot be funded from the EFF. Therefore, charging an apportionment of the costs relating to the applicant’s staff working on the project is not possible.

3. Payments for unfair dismissal, redundancy payments, golden handshakes, insurances

(e.g. health) and payments into private pension schemes are considered ineligible. 4. Apart from the project management personnel, the Beneficiary may engage a supervisor

/ supervisory team / technical experts when implementing construction and other infrastructural projects.

5. In principle employment contracts shall be restricted to the specific task and duration of

the project.

4 or the principles of the public procurement regulations in the case of NGOs and economic operators. 5 It is advisable that, prior to publication, the Beneficiary consults with the Department of Contracts and the Department of

Industrial and Employment Relations to identify the appropriate procedure to apply in the particular case. 6 This rule does not apply in cases where Rule 23 is applicable – Costs incurred in Managing and Implementing EFF Funds.


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Rule No. 2: Supervision Costs Apart from the project management staff, the Beneficiary may engage a (technical) supervisor/supervisory team. The engagement of a supervisor/supervisory team is eligible subject to the relevant procurement/employment procedures having been used.

Rule No. 3: Staff Costs

1. Unless specifically authorised by the MA7, own staff costs are not eligible. 2. As already indicated in Rules No. 1 and 2, Project Management/Supervision related staff costs are not considered eligible.

Rule No. 4: Social Security Contributions

In principle, Social Security Contributions and related costs linked to an employee specifically engaged on a co-financed project can be considered eligible expenditure where these are genuinely and definitely borne by the Beneficiary8. The employer’s social security contributions are also considered eligible as long as proof of payment can be provided9.

Rule No. 5: Real Estate

The cost of purchase and renting of land/real estate is eligible as approved by the Managing Authority in exceptional, well-defined and justified cases, and is subject to the following conditions: 1. It is approved by the MA. 2. There shall be a direct link between the purchase/renting of land/real estate and the

objectives of the operation to be funded by the EFF; 3. The land purchase shall, as a general rule, not represent more than 10% of the total

eligible expenditure of the operation;

4. An independent, qualified valuer or duly authorised official body10, confirms that the purchase/rent price does not exceed the market value; and

5. In the case of aid schemes, the eligibility of land purchased/rented shall be assessed by

the IB in terms of the aid scheme in its entirety and in any case may never exceed the threshold under paragraph 3 of this Rule. In such exceptional cases paragraphs 2 and 4 shall also apply.

The renovation and construction of real estate is eligible for funding under the EFF when this is essential for the implementation of the project and is clearly linked with its objectives. Such investment shall have the technical properties needed for the project and comply with the applicable norms and standards.

7 If included in the Grant Agreement/Aid Scheme approved by the MA. 8 Pay slip and payroll (as applicable) need to be made available as proof of payment. 9 FS5 (or equivalent) for the relevant month/s, receipt from inland revenue covering the same period/s (or equivalent) and declaration from the financial controller of the Beneficiary that for the employers’ share for the NI for the persons claimed is included in the FS5. Other proofs of payment may also be considered as long as they provide sufficient evidence. 10 MA may require a re-assessment from the Lands Department.


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Rule No. 6: Travel and Subsistence Allowance 1. Costs related to travel subsistence allowance (inc. utilised contingencies) are considered

eligible in cases where projects involve activities which need to be held abroad. 2. Unless otherwise approved by the Managing Authority, travel (economy)11 and

subsistence allowance (inc. utilised contingencies) shall be considered eligible in line with the provisions provided in the Overseas Travel MFIN Circular No. 1/2008 (as amended by MFEI Circular No. 12/2010 and subsequent amendments) and supported by the relevant documentation.

3. In the case of experts coming to Malta, the subsistence allowance established by the

European Commission within the Europe Aid Framework12 is the maximum that can be claimed from the Funds. Fees may also be payable to the expert over and above the subsistence allowance, provided that these are justified and reasonable.

4. In the case of experts coming to Malta, fees may be payable to the expert over and above the subsistence allowance provided that it is justified and reasonable.

5. In the case of aid schemes, the eligibility of travel and subsistence allowance shall be

assessed by the IB in terms of the aid scheme in its entirety.

Rule No. 7: Indirect Costs (Overheads)

Apportionment of the applicant’s overheads (including telephone, mobile expenses, electricity expenses, internet connection, etc) is not considered eligible. The Intermediate Body shall make a request to the MA prior to including such costs as eligible under aid schemes.

Rule No. 8: Research/Studies Research/studies conducted in areas identified within EFF are eligible as long as the research/study contributes towards the objectives of the Programme.

Rule No. 9: Publicity Costs 1. Publicity costs (such as advertising of project activities), are eligible for funding under

EFF provided that any publicity measures undertaken are operation-specific and are in line with COUNCIL REGULATION (EC) No 1198/2006 and COMMISSION REGULATION (EC) No 498/2007.

2. Publicity costs must also be justified and in proportion to the operation. 3. Information and publicity measures shall include the following:

a. The emblem of the EU and Maltese Flag;

b. Reference to the European Fisheries Programme:

11 In the case where tickets are not economy class, the Beneficiary may only claim the equivalent of the costs of an economy

ticket from the EFF. 12 http://ec.europa.eu/europeaid/work/procedures/documents/execution/per_diems/perdiem_12_2007.pdf


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c. The co-financing rate;

d. The statement chosen by the MA, highlighting the added value of the Community: “Investing in sustainable fisheries”.

4. Special conditions may apply for small objects. 5. Publication, translation and distribution costs resulting from published and audio-visual

material required for the implementation of the operation are also eligible. The MA will retain full rights over publicity measures/actions and published/audio-visual material, however any responsibility for the material produced/published shall rest solely with the body issuing that material. The afore-mentioned can be used by the MA for further EFF publicity at no costs.

Rule No. 10: Consumables 1. Consumables13 are defined as tangible items that may be depleted or worn out by use,

that have a life expectancy that is shorter than the duration of the project and are not deemed to be fixed assets in accordance with generally accepted accounting principles and rules.

2. Consumables required for the implementation of the project/Programme14 are eligible for

co-financing by the EFF, subject to the following conditions:

a. It must be procured specifically for the project;

b. It must not be apportioned between those items that are used by the Beneficiary in carrying out its normal business (not eligible) and those that are related to the project (implementation of EFF);

c. These do not constitute part of the operational costs of the project15.

3. Eligible consumables16 include amongst others:

a. printing of documents necessary for the implementation of the operation;

b. Stationery necessary for the implementation of the operation;

c. Postage and mail (supported by appropriate documentation e.g. logbook).

Rule No. 11: Furniture and Equipment 1. The purchase of furniture and equipment, and the adaptation of premises are considered eligible. 2. Equipment is defined as a movable or fixed unit of furniture or furnishings, an instrument,

a machine, an apparatus, or a set of articles that meets all of the following conditions:

13 Where consumables include the need for technical installation/expertise, these costs are also considered as eligible 14 This also applies to Technical Assistance actions. 15 This statement excludes consumables for technical assistance (which is operational by nature). It is also clear that a limited

number of consumables is necessary for commissioning of equipment procured by the Funds, and this is eligible. 16 This also applies to Technical Assistance actions.


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a. Under normal conditions of use, including reasonable care and maintenance, has an anticipated useful life of more than three (3) years;

b. It retains its original shape and appearance with use;

c. If the article is damaged or some of its parts are lost or worn out, it may be more feasible to

repair it than to replace it with an entirely new item; and

d. It does not lose its identity through incorporation into a different or more complex unit. 3. Fixed assets purchased under the project that are damaged or stolen must be replaced –

to the same specifications or better – by the Beneficiary organization, out of its own funds, at no additional cost to the project. Both original and replaced asset shall be included in the Beneficiary’s inventory list.

Rule No. 12: Depreciation 1. Depreciation is not eligible, except when it is duly approved by the MA. 2. In cases where deprecation is approved, such expenditure can only be claimed from the

project if there is a direct link with the implementation of the project and provided that the:

a) Public Funds (including National or Community funds) have not contributed towards

the purchase of the same assets;

b) Assets are directly used by the project;

c) Cost relates exclusively to the period of co-financing of the operation in question;

d) Appropriate working papers showing how the depreciation costs have been calculated have been maintained by the Beneficiary. These include the costs, description and location of purchased items, the date of purchase, the method of depreciation, the length of time the item has been used, whether the equipment was used wholly or partly for EFF purposes, and where relevant, the present estimated residual value of the asset; and

e) Method of calculating depreciation cost is in accordance with the relevant

accountancy rules and with the Beneficiary organisation’s accounting policy. The depreciation method should be provided in the Grant Agreement.

Rule No. 13: Vehicles The purchase of vehicles is not eligible.

Rule No. 14: Transport Costs 1. Transport costs for participants/trainers/officers undertaking verification checks may be

considered eligible for co-financing under EFF:

a) when it is generally made available under similar activities using national/public funds;


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b) in exceptional and justifiable cases and has to be specifically approved by the MA. Acceptance or rejection is at the sole discretion of the MA.

2. Transport costs related to the implementation of one or more aspects of EFF are

considered eligible upon presentation of appropriate supporting documentation.

Rule No. 15: Purchase of Second Hand Equipment

Purchase of second hand equipment is not considered eligible unless it is duly justified and required for the implementation of the project and pre-approved by the MA.

Rule No. 16: Financial and Other Charges and Legal Expenses 1. Bank Charges on Accounts Where co-financing by the EFF requires the opening of a separate bank account or accounts for implementing an EFF operation17, the bank charges for opening and administering of this account form part of the administrative costs relating to an operation and are therefore eligible expenditure. 2. Financial Charges

- Interest on debt is not eligible.

- Charges for financial transactions, foreign exchange commissions and losses, and other purely financial expenses are not eligible.

3. Legal Fees for Advice, Notary Fees, the Costs of Technical or Financial Expertise and Accountancy or Audit Costs The cost of legal fees for advice, notary fees, technical or financial expertise and accountancy or audit services are eligible provided that they are directly linked to the operation and are necessary for its preparation or implementation. Costs related to litigation or advice/consultancy related to possible litigation is not eligible (e.g. possible appeals). 4. Fines, Financial Penalties and Expenses of Litigation are not eligible 5. Costs of Guarantees These costs are eligible only to the extent that the guarantees are required by national or Community legislation or in the Commission Decision approving the assistance. 6. Costs Relating to MEPA Permits and other Regulatory Permitting - Costs incurred by the Beneficiary for the preparation and/or submission of the necessary

documentation relevant to the MEPA application processes can be considered eligible subject to MA approval.

- MEPA or other permit fees shall, as a general rule, not represent more than 2% of the total eligible expenditure of the operation unless a higher percentage is approved by the MA and reflected in Grant Agreement or Commission Decision. Such claims should reflect real costs and be supported by invoices and receipts;

17 Particularly relevant in the case of aid schemes


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- MEPA guarantees in relation to permits are not considered eligible. 7. Other Related Expenditure Other expenditure including costs involved in winding up a company, bad debts, losses on exchange of currencies and service charges arising on finance leases, hire purchase and credit arrangements are not considered eligible.

Rule No. 17: Consultancy Fees

1. Consultancy which is necessary for the implementation of the project (e.g. drafting of

application form, feasibility studies, business plan, cost-benefit analyses) may be considered eligible.

2. Consultancy which provides support in completion of application for funds is an eligible

item of expenditure subject to a number of conditions:

a) Approval of the project b) The services of the contractor have been procured in a transparent and competitive

way and according to the principle of good governance. In the case of public entities such services need to be procured according to the Public Procurement Regulations.

c) The appropriate publicity requirements have been used.

Rule No. 18: Leasing 1. Expenditure related to the leasing of PCs as per standing Government policy is eligible in

its entirety. 2. Other Expenditure incurred in relation to leasing operations is eligible subject to the rules

set out below:

a) The equipment remains the property of the lessor (i.e. the person leasing out the good);

b) The lessee (i.e. the person who leases the equipment from someone else) is not

responsible for the maintenance, insurance, repairs etc of the equipment;

c) At the end of the lease the equipment does not become the property of the lessee;

d) Leasing costs for which Community Aid is paid should be limited (as a maximum) to the duration of the project;

e) Where a leasing contract is terminated before expiry of the minimum leasing period

without the prior approval of the competent authorities, the lessor shall undertake to repay to the national authorities concerned (for credit to the appropriate fund) that part of the Public Aid corresponding to the remainder of the leasing period;

f) The cost has to be pre-approved by the MA.

3. The acquisition costs of the asset and the cost of leasing equipment under a finance

lease which is similar to hire purchase agreements (where at the end of the lease the equipment becomes the property of the lessee) are not eligible.


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Rule No. 19: Software The development/procurement of software and the development or upgrading of IT systems and software is considered eligible.

Rule No. 20: Training Costs

Training that is part of the commissioning of equipment and other training in line with the Operational Programme is eligible.

Rule No. 21: Contributions in Kind Contributions in kind are not eligible.

Rule No. 22: VAT and other Taxes

1. VAT constitutes eligible expenditure as long as it is genuinely borne by the Beneficiary. 2. VAT which is recoverable, by whatever means, cannot be considered eligible, even if it is

not actually recovered by the Beneficiary. 3. The treatment of VAT will vary depending on the status of the activity carried out. In this

regard, Beneficiaries should consult the VAT Department. 4. Other taxes and related charges which arise from co-financing by EFF funds do not

constitute eligible expenditure except where they are genuinely and definitively borne by the Beneficiary.


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Rule No. 23: Costs Incurred in Managing and Impleme nting EFF Funds 18

1. Technical assistance is critical to the efficient implementation of the EFF. The actions

under the Priority Axis 5 Technical Assistance will support and accompany the programme implementation, in accordance with Article 46 of Council Regulation 1198/2006. The Technical Assistance supports the main horizontal stakeholders of Malta’s implementation system, including the Managing Authority, the Certifying Authority, the Audit Authority and the Intermediate Body. Activities have to meet the criteria as approved by the Monitoring Committee.

2. The following categories of expenditure are eligible for co-financing through the EFF

assistance:

a. Expenditure relating to the preparation, project selection, management, monitoring, evaluation, publicity and information, and control activities of the assistance and of operations, including the computerised management system;

b. Expenditure on meetings of monitoring committees, the annual examination meeting

and other meetings relating to EFF and the implementation of assistance. This expenditure may also include the costs of experts and other participants in these meetings, where the chairperson of such meetings considers their presence essential to the effective implementation of the assistance;

c. Expenditure relating to controls (including management verifications), audits and on-

the-spot checks of operations;

d. Expenditure of salaries of public officers involved in the implementation system;

e. Purchase19 of furniture and equipment in line with the provisions provided in Rule No. 11;

f. Costs (locally and abroad) related to the participation in meetings and events linked

to the EFF Programme and the proposed European Maritime and Fisheries Fund Regulation;

g. Financing costs related to the closure of the 2004-2006 programme after the final

date of eligibility; 3. Expenditure incurred in relation to renting is eligible for contribution under EFF. In this

case the relevant public procurement regulations apply.

4. Charging a fee for the use of one’s own premises is not eligible.

Rule No. 24: Service Utility Works 1. In cases where the nature of the project necessitates interventions to utility services

these may be considered as eligible. The MA recommends separate BoQs for service utility works.

18 It is pertinent to note that all other eligibility rules have been and will continue to apply to Technical Assistance. 19 Leasing of equipment is also eligible if this is standard Government policy.


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It is imperative to note that Service Utility Works may only be considered eligible within the framework of an approved project (and not as a project on its own).

2. Costs linked to repairs or replacement of cables as well as the new cables and service

utilities owned by third parties are not eligible.

Rule No. 25: Arrangements for Temporary Structures/ Infrastructure Operations may require the creation of structures/upgrading of alternative infrastructure in order to temporarily provide services which would otherwise be disrupted due the project’s planned activities. Such expenditure is eligible as long as it is directly linked to the project, strictly necessary for its implementation and pre-approved by the MA.

Rule No. 26: Maintenance/Repair Costs Maintenance/repair costs – including those related to items procured through an EFF project – are, in principle, not considered eligible20. The costs related to maintenance agreements (including extended guarantees) in tenders should be clearly identifiable in the contract.

Rule No. 27: Hospitality Hospitality costs are only eligible if pre-approved by the MA. When approved, the following conditions apply:

a) That the scope of the hospitality is linked to the activity and not mere entertainment; b) That the same hospitality is extended during similar activities organised by the

Beneficiary through national (or other) funds; and c) The costs incurred are reasonable.

Rule No. 28: Renting 1. Expenditure incurred in relation to renting is eligible for contribution under EFF provided

that renting of equipment, mobile assets or venues is necessary for the implementation of the project. In this case, the relevant public procurement regulations and principles21 apply.

2. Charging a fee for the use of one’s own premises is not eligible. 3. Renting of premises of the Beneficiary and renting of premises for project management

purposes is not eligible.

Rule No. 29: Sub-Contracting 1. For all subcontracts, subcontractors shall undertake to provide all audit and control

bodies with all the necessary information relating to subcontracted activities. 2. As a general rule, final beneficiaries must have the capacity to manage the projects

themselves. The amount corresponding to tasks to be subcontracted under the project will have to be clearly indicated in the Application Form.

20 Other than those identified for the maintenance of the Database. 21 Depending on the nature of the Beneficiary.


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3. Expenditure relating to the following subcontracts is not eligible for co-financing by the EFF:

(a) subcontracting that adds to the cost of the project without adding proportionate

value to it; (b) subcontracting with intermediaries or consultants where payment is defined as a percentage of the total cost of the project, unless such payment is justified by the final beneficiary by reference to the actual value of the work or services provided.

1.15 ELIGIBLE COSTS

As identified, in Part 1 of these Guidance Notes, only eligible costs will be co-financed through the scheme. The scheme will consider all activities falling within the eligible intervention areas identified in the Application Form as eligible. All costs listed in the Application Form must be exclusive of VAT. The VAT amount will be listed separately in this section as indicated in the Application Form. The VAT rate must reflect that identified in the selected quotation. The total Eligible cost for each activity must be outlined. In the case of Intervention areas with a number of activities, the cost for each activity must be clearly outlined in the budget. The Final Eligible Cost would be calculated for the whole of the project. The costs identified must be broken down and the cost of the activity identified must correlate with the value of the selected quotations as explained further on in these Guidance Notes. Please note that the amount entered in the Application Form is the Total Eligible cost, meaning that it consists of the public and private co-financing. The value to be reimbursed will be calculated by the IB and defined in the Agreement signed by the Beneficiary and the IB according to the size of the Beneficiary Enterprise. VAT must be financed by the Beneficiary at all times.

1.16 INELIGIBLE EXPENDITURE

In compliance with the sections of the European Fisheries Fund Regulations and Managing Authority (MA) Guidelines relevant to the issue of eligibility of expenditure, inter alia the following expenditure is considered ineligible expenditure for co-financing under the Scheme:

a) Any costs paid outside the eligible period of the operation, including costs paid prior to the official date of approval for assistance through the scheme;

b) Apportionment of the applicant’s overheads (including telephone, mobile, electricity, internet expenses etc.);

c) Assistance concerning fisheries and aquaculture products intended to be used and processed for purposes other than human consumption with the exception of investments exclusively for the treatment, processing and marketing of fisheries and aquaculture product waste.

d) Costs related to in-kind contributions; e) Purchase of Vehicles; f) Depreciation; g) Expenditure as a result of project changes not pre-approved by the Intermediate

body; h) Expenditure which is against National, Commission and Council regulations; i) Expenditure which is not declared in the application form;


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j) Own staff costs, unless specifically authorised by the MA/IB; k) Payments for unfair dismissal, redundancy payments, golden hand shakes,

insurances (e.g. health) and payments into private pension schemes; l) Projects which are already supported by a European, or other international or

national grants; m) Purchase of brood stock and juveniles of the species to be farmed ; n) Purchase of second hand equipment; o) Service charges arising on leases, return on capital, hire purchase agreements,

depreciation, loan charges, debit interest, charges for financial transactions, foreign exchange commissions and losses, fines, financial penalties and expenses of litigation, bad debts and other purely financial expenses;

p) Staff and operational costs arising from the enterprise’s day to day management and operation, including routine or essential maintenance of a capital facility,

q) Transfer of ownership; r) Quotations for activities that cannot be compared on an objective basis; s) VAT and other taxes.

The Intermediate Body will carry out an on the spot check prior to the processing of a claim for reimbursement, and it reserves the right to declare an expenditure ineligible if it is against provisions made in these notes, notes to the beneficiaries and National, Commission and Council regulations. However, the IB reserves the right to carry out a spot check for a number of claims if such claims/invoices do not exceed €1,000 in total. Furthermore, if it is found that commitments taken in the application form are not the actual version of facts, may result in cancellation of project funding.

1.17 COMPLIANCE ISSUES

The scope of the funding is to enhance the aquaculture, marketing and processing sector in Malta. In cases of modernisation of an existing building or otherwise, investments have to go beyond requirements stipulated by law. At selection stage, the Project Selection Committee will be checking the eligibility of the project costs in accordance with the Legal Notices. Therefore, if an applicant submits an Application Form with ineligible expenses/project activities, such expenses will automatically not be considered as part of the project budget. The applicant will be informed of this amendment by the PSC. The scheme does not co-finance stand-alone actions but operations (projects) in line with the criteria laid down by the MC and implemented by the FB to achieve the axis goals. Incomplete operations may lead to a recovery of grant.

1.18 FUNDING THRESHOLDS

The budget allocated to Priority Axis 2 is spread out over the implementation period. The public funding composed of EU and Malta Government co-financing, available for these Schemes is approximately €1.5 million, which will be divided into allocations per call. Funding may be awarded as follows: For Measure 2.1: 40% Private Funds and 60% Public Eligible Funds For Measure 2.2: Up to 100% Public Eligible Funds


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The calculation compensation for measure 2.2 shall be calculated on the following criteria;

• the additional cost which may result from the application of aqua-environmental methods;

• the need to provide financial support for carrying out the project; • The specific disadvantages or investments costs for units located inside or near

NATURA 2000 areas. A one-off compensation shall be allocated;

a) A maximum amount per hectare of the area of the enterprise to which aqua-environmental commitments apply for forms of aquaculture comprising protection and enhancement of the environments, natural resources, genetic diversity, and management of the landscape and traditional features of aquaculture zones;

b) A maximum of two years during the period of the conversion of the enterprise to organic production;

c) A maximum of two years subsequent to the date of the decision establishing the NATURA 2000 area and only for aquaculture units existing prior to that decision.

For Measure 2.3: 40% Private Funds and 60% Public Eligible Funds It should be pointed out that the public eligible funds component consists of 75% EU funds and 25% Maltese Government funds.

1.19 MEPA PERMITS

For any interventions which require a MEPA permit, applicants are required to submit a copy of their valid MEPA Permit, as well as a site plan for physical works and site maps where necessary. Should the applicant submit the MEPA permit application, this document must clearly indicate the PA number as well as the date of application submission. Applicants not acquiring such required permits by the stipulated date will not be allocated funds and will be removed from the Final Project Ranking. Projects that may require a MEPA permit but do not submit a MEPA Application approval by the submission deadline, shall not be e ligible for the funds, therefore it is the applicant’s responsibility to ensure whether a MEPA permit is required for the project being proposed under the scheme.


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1.20 PROJECT INDICATORS

What targets does the project seek to meet? In this section applicants are required to identify the output and result indicators towards which the project will contribute. Projects must be measured in terms of verifiable and measurable data. It is imperative that the applicant inserts a realistic and measurable number for each indicator. The applicant must also provide a clear explanation of how the proposed targets have been calculated. All indicators are binding and contribute towards the eligibility and selection of the project. If they are not met, there may be the case of full or partial recovery of funds. Applicants are to contribute to at least one output indicator and one result indicator according to the Measure applying for i.e. Measure 2.1, 2.2 or 2.3. For each of the indicators selected, a target value must be provided. The indicators chosen must be of relevance to the project. Applicants must indicate how their project will contribute to the fisheries and aquaculture sector in a direct manner to achieve the context indicators, output indicators and result indicator of the EFF OP as listed hereunder;

Objective Context indicator Output Indicator Result Indicator Measure 2.1: Productive investments in aquaculture To achieve diversification of cultivated species

Number of different species currently being cultivated in 2006 – 3

Number of –projects supporting the diversification of cultivated species under this operational programme -1

Number of new species cultivated by end of 2015 - 1

To increase the competitiveness of aquaculture operations

Number of fish-farms exporting closed-cycle species in 2006 - 2

Number of projects by different fish-farms aimed at increasing the export of closed-cycle species under this operational programme - 2

Number of fish-farms having been assisted under this operational programme to export closed-cycle species by 2015 – (2)

Measure 2.2: Aqua-environmental measures To reduce the negative impact on the environment

Number of environment protection projects undertaken by 2006 - 1

Number of projects undertaken by fish farms under this operational programme that have an element of environmental protection – 1

Number of fish farms that undertake environmentally friendly initiatives by 2015 under this operational programme - 1

Measure 2.3: Investments in processing and marketin g


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To enhance the processing and packaging facilities of the aquaculture and fisheries industries

Number of processing and packaging facilities in place in 2006 – 5

Number of schemes launched to enhance processing and packaging facilities of the aquaculture and fisheries industries under this operational programme by end 2015 – 2

Number of existing processing and packaging facilities, modernised, under this operational programme by end 2015 - 2


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PART 2 - The Application Process Section 1 – The Applicant

1. Details of SME to Benefit from Grant 1.1. Business Entity Legal Name and Contact Details

This section should show the legal name and contact details (including name, address, telephone number, VAT number and MFSA Registration, if applicable) of the applicant enterprise or consortium. The successful applicant will be referred to as the Beneficiary . The successful applicant must recognise the responsibilities brought about by being a Beneficiary of the Scheme and should abide by the signed contract agreement. The MA shall ensure that an operation retains the contribution from the EFF only if that operation does not, within five years of the date of the financing decision of the IB undergo a substantial modification:

• affecting its nature or its implementation conditions or giving to a firm or a public body an undue advantage;

or • resulting either from a change in the nature of ownership of an item of infrastructure

or relocation of a productive activity Position and Contact Details of Signatory of the Ap plication Form The Signatory of the Application Form is the person who is legally responsible for the enterprise, usually represented by the owner/managing director of the enterprise. Contact details of the signatory are to be entered into this section. In the case of a consortium the signatory should be an authorised person from the consortium who will act as the Lead Partner of the project.

1.2. Consortium / Partnership / Group Details This section is to be filled in by those applicants who have more than one partner applying for this project in the form of a consortium, partnership or group. The Name of the entity, number of employees and the turnover of the previous year are to be included in the first table. The details of each partner applicant are to be filled in as applicable in the tables provided. These may be replicable as required according to the number of partner applicants on the project.

1.3. Contact Details of Project Manager The Project Manager is the person who will be responsible for the project’s implementation on a day-to-day basis. It is strongly advised that this person be different from the signatory of the Application Form. The Project Manager shall be identified at application stage and should be listed as a duty. The Project Manager must be aware of all the details related to the project. It is imperative that the project manager is easily accessible to discuss the


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project with the IB and respond to any queries that may arise throughout the evaluation term of the project. Should the person assigned in the Application Form leave the enterprise or no longer act as project manager, his/her responsibilities relating to the project should be taken over by another person immediately so as to ensure smooth and efficient implementation of the project. The IB should also be informed by filling the Change of Project Leader Form attached immediately. It is important that the new Project Manager is well informed on all project details, the status of the project and any changes that took place during its implementation. This intervention is only eligible for small and me dium sized enterprises. Project management costs may amount to a maximum of 5% of t he total project eligible costs.


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SECTION 2 – THE PROJECT

2.1. Project Name

The name of the project is the name the beneficiary chooses for the project under the

scheme being applied for. Preferably, this is between 1-10 words in length.

2.2. Description

A short explanation of the project being proposed for funding should be given in this section. The project description should relate to the Project Name given according to the specific objectives above as well as the applicant description.

2.3. Project Location & Location Address

2.3.1. Location Address

The applicant is also required to state whether the project being proposed will be implemented in the same location address outlined in Section 1.1 of the Application Form. Should the project be implemented in another location address, it must be outlined in this section of the Application Form. It is very important to give the location address where the project will be implemented as site checks will be conducted prior and during the implementation of the project.

2.3.2. Ownership of Project Location

Information on the project location is necessary to ensure that the applicant has jurisdiction to implement the proposed project in that site, thus ensuring the right to implement the interventions proposed in the Application Form. The applicant must indicate if he/she is the owner of the establishment. If he/she is the owner, the applicant must submit the proof of ownership. Applicants are to provide a signed declaration by a notary ascertaining full ownership of immovable property based on searches conducted by the notary. If the project is to be implemented in a site which is leased or under a management contract or guardianship deed, the applicant must provide evidence of this by submitting an authentic copy of the leasing contract and/or agreement, and provide a letter affirming the consent of the owner of the property that such a project can take place on the site.


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2.4. Project Interventions

The project activities proposed must fall under one or more of the specified intervention areas. Applicants for the Scheme will have to identify the intervention area/s of their project in the Application Form. The areas of eligible interventions are the following:

a) Measure 2.1: Productive investments in aquaculture b) Measure 2.2: Aqua-environmental measures c) Measure 2.3: Investments in processing and marketing

Description of Project Interventions

The applicant is required to give information with regards to the following in this section of application form. 1 – The applicant should provide a list and an explanation of the project activities that will be implemented under any one of the activity areas, explained in further detail below. 2 – The applicant is also required to outline the selected supplier together with the relevant quoted price22 as well as the respective details for the other two quotations.

Measure 2.1: Productive investments in aquaculture

The EFF may support investments in the construction costs, extension, procurement of equipment and modernisation of production installations, in particular with a view to improving working conditions, hygiene, human or animal health and product quality, reducing negative impact or enhancing positive effects on the environment. The actions that are eligible under this measure are;

• Investment in new equipment aimed at modernising current establishments as well as enhancing safety;

• Investment in the construction of new establishments and the required equipment;

• Investment in new equipment aimed at mitigating any possible negative impacts of

aquaculture operations; • Investments in the developments and commercialisation of new species;

• Investment in the development and implementation of new aquaculture methods

aimed at reducing environmental impact.

22 And Bills of Quantity where applicable.


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Measure 2.2 Aqua-environmental measures

The EFF can support granting compensation for the use of aquaculture production methods that help to protect and improve the environment and to conserve nature. In order to receive compensation under this measure, beneficiaries must commit themselves for a minimum of five years to aqua-environmental requirements that go beyond the mere application of good aquaculture practice. The action that is eligible under this measure is; The implementation of aqua-environmental measures aimed at protecting and enhancing the environment in the aquaculture sector. The purpose of the support is to promote: 1. Forms of aquaculture comprising protection and enhancement of the environment,

natural resources, genetic diversity, and management of the landscape and traditional features of aquaculture zones.

For the support provided under this paragraph, the environmental benefits of such commitments must be demonstrated by a prior assessment conducted by competent bodies designated by the Member State.

2. Participation in the community eco-management and audit scheme created by

Regulation (EC) No 761/2001 of the European Parliament and of the Council of 19th March 2001 allowing voluntary participation by organisations in Malta’s eco-management and audit scheme (EMAS). Support provided for participation in an EMAS may cover the consultancy costs for the initial elaboration of the scheme, the environmental review by an independent consultant, the verification by the independent verifier and the registration fees.

3. Organic aquaculture within the meaning of Council Regulation No 2092/91 of 24 June

1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs.

Transitional support may be granted to switch from conventional to organic production.

This support may be granted until the conversion to organic aquaculture is attained and in any case for no more than two years. If the conversion period is shorter than two years, compensation shall only be given for the duration of the conversion period. If the conversion period is longer than two years, the support may be granted in any moment during the conversion period, but cannot last for more than two years.

Compensation under Article 30(2) (c) of the EFF may cover in particular, the decrease in

production volume due to lower stocking densities and sales that may occur during the conversion period, increased production costs (e.g. organic feed, environmental monitoring) and inspection and certification costs.

4. Sustainable aquaculture compatible with specific environmental constraints resulting

from the designation of NATURA 2000 areas in accordance with Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora


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Support provided for under Article 30(2) (d) of the EFF Regulation may be granted only to aquaculture farms experiencing specific restrictions or prescriptions due to the fact that they are located in or near a Natura 2000 area, and only when the specific environmental restrictions or prescriptions are imposed to the aquaculture enterprise either through national legislation or through legally binding site management contracts or plans.

The rationale for the provisions of this Article is to compensate those aqua-farmers who are obliged to make additional investments (or which are experiencing losses of revenue) due to the establishment of a Natura 2000 area. In order to receive compensation under this Measure, beneficiaries of compensation must commit themselves for a minimum of five years to aqua-environmental requirements which go beyond the mere application of normal good aquaculture practice. For the support provided for under paragraph 1 above, the environmental benefits of such commitments must be demonstrated by a prior assessment conducted by competent bodies.

In accordance with Article 30(5) (c) of the EFF Regulation, support may be granted only

for a maximum of two years subsequent to the date of the decision establishing the Natura 2000 area, and may be paid only to aquaculture farms existing prior to that decision. The decision establishing the Natura 2000 area may have been taken even prior to the beginning of the programming period (i.e. 1 of January 2007).

Measure 2.3 Investments in processing and marketing

The EFF may support investments in processing and marketing of fisheries and aquaculture products, construction, extension, equipment and modernisation of enterprises. The actions that are eligible under this measure are;

• Investment in facilities and equipment including both hardware and software with the aim of achieving one or more of the objectives listed hereunder:

– Improving working conditions;

– Improving and monitoring public health and hygiene conditions or product quality;

– Producing high quality products for niche markets;

– Reducing negative impact on the environment;

– Improving the use of little-used species, by products and waste;

– Producing or marketing new products, applying new technologies, or developing innovative production methods;

– Marketing products mainly originating from local landings and aquaculture

• Investment in refrigeration vehicles and other refrigeration equipment necessary for the operations of enterprises operating at wholesale level;

• Investment in health, hygiene and safety measures; • Investment in the marketing of products originating from local landings and

aquaculture • Investment in the development of brand names for local products.


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2.5. Quotations

1. The applicant is required to provide at least 3 original and comparable quotations

from different suppliers for each cost item and link each cost item to different activities in the project. Negative quotations, that is, quotes from enterprises indicating that they do not provide the requested works/services are not to be accepted as a quote. The 3 quote requirement should always be adhered to unless there are less than 3 providers of the required works/services.

2. Cost items for which the applicant does not submit 3 original and comparable quotations from different suppliers shall be deemed ineligible unless there are less than 3 providers of the required works/services.

3. Each quotation has to be signed/ stamped including the address of the supplier, date, clear breakdown of eligible items showing the cost and quantity of each item and breakdown of costs excluding VAT, VAT amount and cost including VAT.

4. In the case of quotations submitted for equipment, the applicant must also attach the specifications of the equipment together with the quotations. Should the specifications not be submitted the quotations for that item will not be considered eligible.

5. The preferred bidder is to be made clear in the grey shaded area in section 2.5 of the application. By identifying the preferred bidder, the applicant is declaring that in the case the project is approved for co-financing, the project will be effectively carried out by the preferred bidder, and that all invoices and receipts issued against work carried out in relation to the project (or the relevant part thereof), as detailed in the project application form, will be issued by the preferred bidder. Any changes must be pre-approved by the Intermediate Body in writing following a written request from the Beneficiary. The Written request should include the following details:

a. Project Number b. Name of the approved activity c. Details of the originally approved supplier d. Details of the new supplier e. Reasons for the change.

6. Reimbursement by the IB shall only be made on the cheapest of the 3 quotes. In the eventuality that the cheapest quote is not selected, the IB will fund up to the value of the cheapest quotation.

2.6. Project financing

2.6.1 Financing of the Project

Applicants are to indicate how the project will be co-financed. All applicants are required to provide a letter proving the availability of finances for the whole project, which letter must be prepared by a certified auditor. In the case the applicant will be sourcing a loan for the project, a copy of the sanction letter from the bank must also be attached to the application form. This sanction letter must certify that the bank has approved the funds for the project. Should there be no use of a loan the applicant should select the box ‘Funding from own resources’ in Point 2.6 of the application form.


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2.6.2 Project Financial Management

Applicants have to indicate whether they will open a separate bank account for the project or whether they will use a separate accounting code for the project. The IB recommends that Beneficiaries maintain a separate bank account for all transactions relating to the operation without prejudice to national accounting rules.

2.7. Project Management

The specific roles of the project manager are to be listed here. If necessary, reference is to be made to Rule No. 1: Project Management in the Eligibility Rules section on Page 12 of these guidelines.

2.8. Project Timeline

Project Duration

The applicant is required to submit the start and end dates of the project. Project must be completed by the 31st December 2013. All project proposals undergo an evaluation of approximately six months, which would finally lead to the contract signature. This process is explained in Part 3 of these guidance notes. Following such evaluation, successful applicants would enter into a Grant Agreement with the IB. The activities approved by the IB as a result of the Project Selection Procedure will be specified in the Grant Agreement. The deadline for submission of the Application Forms of the call is Monday 10th September 2012 at 12:00hrs. Applicants will be notified of their application results in writing. Both Project Start and Project Completion dates are very important as the applicant will be bound to them for the implementation of the project. The dates must reflect and correlate to the dates identified in the ‘Project Timeline’. Failure to adhere to the specified dates may result in loss of funds. Applicants are encouraged to consult with the IB if in doubt whether their project duration is in line with regulations. In this section, the applicant must show a detailed timeline identifying the different phases of the project. The applicant is required to divide the implementation of activities into phases. Therefore, the quarter and year (e.g. Quarter 3: 2012) for each activity will have to be given for the following two milestones:- - Implementation of activity (when the activity is carried out) - The submission of receipt and claim for reimbursement to the project team (when the receipt is handed in to the IB) It is suggested that the applicant takes into consideration potential delays when planning the timeline. Failure to adhere to the stated timeline may result in loss of funds. Since it is strongly advised that the project implementation should adhere to the timelines stated, the applicant is advised to take changes in suppliers and delivery delays into consideration whilst planning the project timeline as these may affect the timely completion of the project.


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2.9. Commitment to the Project

The applicant may have undertaken preparatory work whilst developing the proposal for financing under the scheme. Such preparatory work may include preliminary studies and/or professional fees resulting in specialised consultative studies related to the project design. In this section, the applicant is to list any preliminary studies which have been undertaken in order to initiate this project. Preparatory studies show commitment to the project especially if the investor has already funded these privately for example: preliminary studies and/or professional fees resulting in specialised consultative studies related to the project design. Consultancy fees for assistance in filling in the Application Forms as well as MEPA permit fees are however not considered indicative commitment to the project and will not be considered during the Evaluation. So as to ensure proof of the preparatory work done the applicant should outline the costs in the table provided in the Application Form. The applicant is also expected to attach the original quotations/Bills of Quantities as well as a copy of the preparatory work done to the Application Form.


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Section 3: Selection Criteria

Economic Criteria Description A SME Definition according to the

Commission Recommendation 2003/361: Preference will be given to smaller firms.

The applicant has to identify whether the company is a micro, small, or medium enterprise according to the definition at Section 1.1.13 of these guidance notes. This has to be supported by ETC certificates and Company accounts.

B Number of years in marketing fish: Preference will be given to applicant organisations which have recently entered the sector.

The applicant has to indicate the number of years an enterprise has been active in the marketing and processing of fish. This has to be supported by registration documentation.

C Diversification: Preference will be given to investments diversifying into new markets or products.

The applicant has to identify whether the project to be financed under this scheme will be diversifying into new markets (world wide/local) or will be introducing new fish products to the market.

D New technology: Preference will be given to investments in new technology.

The applicant has to identify whether the project to be financed under this scheme will be introducing new technology to its enterprise.

E Sector cohesion (partnership): Preference will be given to investments being proposed jointly by more than one undertaking operating in the sector.[1]

The applicant has to identify whether the enterprise is investing in the enterprise solely or with another operator. All parties have to be indentified. In the case of a cooperative a list of members is requested.

Social Criteria F Gender Equality: Preference will be

given for initiatives to promote gender equality in the fisheries industry.

How the applicant intend to provide gender equality by submitting a short description in the allocated space and a detailed plan in Annex.

G Skills: Preference will be given to investments in the training to improve skills of employees.

The applicant has to identify and describe any training to improve skills of employees to be provided and co-financed under the scheme.

H Health and Safety: Preference will be given to investments creating safer, better working conditions or work practices (investments have to be above the minimum requirements set by law).

The applicant has to describe the health and safety improvements to be carried out as part of their project in order to create safer, better working or work practices.

Environmental criteria I Renewable energy and Energy

efficiency: Preference will be given to investments which will include investments in alternative natural energy sources or which will improve energy efficiency.

The applicant has to describe any alternative energy sources to be installed in the enterprise. Such instalments may be investments in alternative energy source or investments which will improve energy efficiency.

[1] Undertakings shall provide a list of all shareholders (or equivalent) including their % share. Applications proposed jointly by more than one undertaking must ensure that there is no controlling interest between one undertaking and another or common to more than one undertaking. In such cases such associations will be considered as one firm.


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J Positive impact on the environment: Preference will be given to investments which will reduce the adverse impact on resources, environment and habitats.

The applicant has to describe any positive impacts on the environment as a result of the co-financed project. This shall be supported by appropriate certified documentation.

K Promoting sustainability of stocks/species: Preference will be given to investments which will enhance the sustainability of stocks/species.

The applicant has to describe how the enterprise will be promoting the sustainability of the stocks/species.


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Section 4 – Supporting Documents The applicant is encouraged to meet with the IB customer care (contact details found on Page 47) prior to submission to ensure complete submission.

4.1. Checklist of Documents

Complete submission means that the Application Form together with all the necessary supporting documents are submitted by the deadline stipulated. For project which go above 250,000€, the application should include a business plan. The following is a checklist of supporting documents:

� Document indicating 1st date of registration of enterprise - obligatory � Profit and loss account together with signed IR return for the last two

years � MEPA development approval / permit if necessary or license and other

documents related to the project if applicable.

� ETC list of employees for the last 2 years

� Copies of ID cards of applicants � Three original quotations per item each including the breakdown per

item of costs in detail � Memorandum and articles of associations of the company to establish

the number of years of experience in marketing and processing fish. � For projects which go above €250,000, the application should include a

business plan

� Site plan of infrastructural works � Enterprise/ Association Declaration if applicable

� Signed and stamped letter from a certified auditor confirming financing of the whole value of the project – obligatory

� Any necessary license (MFSA certificates) for business entities. The license must be valid for the period in which the applicant is submitting the application form.

� Bank Sanction Letter - in case of use of Bank Loan

� VAT Certificate – obligatory

� ETC Employer’s Employees Lists bearing a 2012 date

� Proof/evidence of building lease/management agreement/guardianship deed – where applicable

� Copy of preparatory studies and respective receipts – where applicable

� Statute (obligatory for Associations or cooperatives)

� An annexed detailed plan of how the applicant intend to provide gender equality (if applicable).

� An annexed detailed plan/report of how the applicant intends to enhance the sustainability of stocks/species. (if applicable).

For the application to be considered complete and eligible, all attachments marked obligatory must be submitted with the Application Form. Failure to do so shall disqualify the application. The IB will not be extending the deadline to allow for missing documentation,


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therefore applicants are urged to ensure that all the required documentation is present. The IB may request further clarifications from applicants on aspects of their Application Form throughout the evaluation process.

4.2. Submission/Certification

The application form must be signed by the Applicant (in original). The submission must be delivered by hand to the IB representative in an envelope with the name of the scheme which should be the same as the name of the Measure under which the Application Form is submitted and the enterprise’s name. Applicants are advised that any misleading statements or information (whether deliberate or accidental), given at any stage during the application process could render the application invalid. Application must be type written and submitted by not later than the deadline specified in the call.


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Part 3 – Overview of the Evaluation Process

3.1 Selection (Award) Criteria

Application forms must pass the eligibility evaluation and application validity to proceed to the next phase of the evaluation. Projects that meet the eligibility criteria shall proceed to the selection/award phase and will be assessed and ranked on the basis of the selection criteria listed below. In order to be eligible for funding an application should achieve points higher than the pass mark which is set at 50 points. Funding will be awarded to proposals with the highest scores in order of merit to the extent of available budget for this call. Any projects that will be eligible but for which there is no budget available, will be placed on a reserve list which will be activated should additional budget become available throughout the lifetime of the Programme.

3.2 Eligibility criteria

A proposal must meet all the criteria listed in the eligibility section and validation criteria as per Part 1; Section 1.9 – Application Form Validation [page 9], in order to be eligible under this call for proposals.


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3.3 Selection Criteria:

Economic Criteria Marks 2 A SME Definition according

to the Commission Recommendation 2003/361: Preference will be given to smaller firms.

Criterion Headcount Turnover Points

Micro Enterprise < 10 ≤ 2 million € 10

Small Enterprise < 50 ≤ 10 million € 8

Medium Sized Enterprise < 250 ≤ 50 million € 5

2 B Number of years in

marketing fish: Preference will be given to applicant organisations which have recently entered the sector.

Criterion Range Points

Years > 10 5 5 > 9 8

Number of years in marketing fish (as at date of

closure of Application) 2 > 4 10

2 C Diversification: Preference will be given to investments diversifying into new markets or products.

10 points will be given to investments diversifying into new markets or species not currently produced on a commercial scale in Malta

2 D New technology: Preference will be given to investments in new technology.

10 points will be given to innovative investments in the industry.

2 E Sector cohesion (partnership): Preference will be given to investments being proposed jointly by more than one undertaking operating in the sector.23

Number of firms Points

1 0 2-4 5 5 -7 10 >7 20

Social Criteria 2 F Gender Equality:

Preference will be given for initiatives to promote gender equality in the fisheries industry.

10 points will be given for initiatives that promote gender equality in the fisheries industry (sustained by a detailed plan).

2 G Skills: Preference will be given to investments in the training to improve skills of employees.

10 points will be given to investments that include training to improve the relevant professional skills of employees.

23 Undertakings shall provide a list of all shareholders (or equivalent) including their % share. Applications proposed jointly by more than one undertaking must ensure that there is no controlling interest between one undertaking and another or common to more than one undertaking. In such cases such associations will be considered as one firm.


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2 H Health and Safety: Preference will be given to investments creating safer, better working conditions or work practices (investments have to be above the minimum requirements set by law).

10 points will be given to investments creating safer, better working conditions or work practices.

Environmental criteria 2 I Renewable energy and

Energy efficiency: Preference will be given to investments which will include investments in alternative natural energy sources or which will improve energy efficiency.

10 points will be given to investments in alternative national energy sources or which will improve energy efficiency. Entities which have received assistance from other EU funds for energy schemes for investment/s listed in the Application Form are not eligible.

2 J Positive impact on the environment: Preference will be given to investments which will reduce the adverse impact on resources, environment and habitats.

10 points will be given to investments which will reduce the adverse impact on resources, environment and habitats. Applicants will have to demonstrate in a tangible manner the positive impact of the proposed investment.

2 K Promoting sustainability of stocks/species: Preference will be given to investments which will enhance the sustainability of stocks/species.

10 points will be given to investments which will enhance the sustainability of stocks/species (sustained by a detailed plan/report).

3.4 Results

The adjudication results are published on the Government Gazette and/or Government notice and on the following websites http://vafd.gov.mt/eff. Projects will be listed in order of merit and the ones that will be funded will be indicated. Details of the unsuccessful applicants will be limited to the application number and Identity Card only of the person signing the application. Successful and unsuccessful candidates will be sent a covering letter stating the reason of the rejection and the published result sheet by the IB official.

3.5 Appeals

Any applicant who feels aggrieved by the result of the Evaluation Board may within ten calendar days of the publication of the results on the government gazette, file a notice of objection with the IB. Late appeals shall not be considered.


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The Directorate shall be precluded from concluding the offers during the period of ten calendar days allowed for the submission of appeals. The award process shall be temporarily suspended if an appeal is submitted within the said timeframe. In case of an appeal the conditions as stipulated in the English version will be utilized to arrive at a final decision. The adjudication results by the Evaluation Board are to be considered as temporary and therefore are subject to change by the Appeals Board. The decision of the Appeals Board shall be considered as final without prejudice however to any course of action as allowed under the Laws of Malta. The procedure to be followed in submitting and determining objections, as well as the conditions under which such objections may be filed shall be the following: (a) Any decision by the Evaluation Board shall be made public; (b) The notice of objection/s duly filed in accordance with these guidelines shall be made public by the IB by not later than the next working day following its filing, which objection shall also be communicated directly to the Evaluation Board and to the interested parties. The IB in issuing such a communication to the interested parties, relative to the notice of objection/s, shall also notify all parties of date of public hearing to be held before the Appeals Board; (c) any interested party, as well as the Evaluation may submit their views regarding the objection/s made, within five calendar days of the publication of the objection/s. The IB shall then forward to the Chairperson of the Appeals Board all documentation pertaining to the award of grants including applications and documents forming part of the application submitted, the Evaluation Board’s report, the objection in question, copies of any motivated letters which may have been submitted by the interested parties or by the Evaluation Board, as well as any supporting documentation; (d) The Appeals Board shall hold the hearing in public. During such hearing, the objection shall be heard and both the complainant and any interested party shall have the right to attend and to be accompanied by any person, professional or otherwise, who they consider suitable to defend their interests, and to make their submissions before the Board. The Chairperson shall have the power to determine the procedure for the hearing of all objection/s lodged with the IB and shall ensure that during the public hearing all interested parties are given the opportunity to make their case; (e) The decision of the Appeals Board shall be rendered in writing; the Board shall indicate the reasons upon which such decision was taken, and the decision shall be notified to the interested parties. The Appeals Board shall issue its decision within twenty (20) calendar days from the closing date of the appeal. (f) The IB shall affix a signed copy of the decision of the Appeals Board on the notice-board of the department and shall forward copies of the decision to the applicant/s raising the objection and any persons who had registered or had an implied interest in the award of the grant.


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PART 4 – Conditionalities and Risks This part of the Guidance Notes to the Application Form gives a brief overview of the Conditionalities and Risks undertaken by Beneficiaries (successful applicants).

4.1 Commencement of Projects

The applicant can only carry out preparatory tasks/studies/plans and initiate the procurement procedure (without issuing the letter of acceptance/sign any contract with the supplier) prior to the signature of grant agreement.

4.2 Grant Agreement

On approval of the project, the Beneficiary will enter into an Agreement with the IB. This Agreement will bind the Beneficiary to carry out the project as approved. The beneficiary shall inform the IB in writing of any changes to the project as detailed in the grant agreement. Changes that would fundamentally alter the overall objectives of the project that would call into question the grant award decision or that would be contrary to the equal treatment of applicants will not be accepted. When the changes are substantial, a written additional agreement must be issued. Substantial changes are;

a) Significant changes to the nature or content of actions and/or deliverables; b) Changes to the legal status of the coordinating beneficiary; c) Change to the duration of the project; d) Changes to the provisional project budget, shifting up to 10% the costs foreseen in

one or more categories of expenditure.

4.3 Retention of Documentation

It is imperative that all applicants create a project file in which they retain copies of the documentation submitted for evaluation and supporting documents regarding expenditure on the scheme. This is called a Project File for the purposes of the Scheme. The Project File must be kept at all times at the Project Location by the Beneficiaries for audit purposes for a period of three years following the closure of the EFF 2007 – 2013 OP in accordance with the requirements of Article 87 of Council Regulation (EC) 1198/2006. The supporting documents regarding expenditure and checks shall include: documents relating to specific expenditure incurred and declared, payments made and documents constituting proof of the actual carrying out/delivery of financed operations/works (including inventories and copies of guarantees on equipment), value of works carried out, copies of studies co-finances, and MEPA permits. The following documents24 must be kept by the beneficiary:

• A signed copy of the Application Form dated when the Application Form was submitted for evaluation

24 Article 45 (availability of documents) of the Commission Regulation (EC) No 498/2007.


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• Copies of all quotations submitted with the Application Form together with the signed annexes as presented for evaluation

• Copies of all appendices attached to the Application Form • Original notification letters sent by the IB at various stages of the Application Form

Once project implementation commences there will be a number of other documents that must be retained in the project file including:

• Guidance Notes • Copies of invoices and receipts submitted • Bills of Quantities (when applicable) • Guarantees for equipment purchased through the scheme • Inventory (including serial numbers) • Yearly audited accounts • Yearly copies of licenses where necessary • Official communications sent by the IB throughout the implementation of the project

This file must be available at all time for audits and checks. Ad hoc site visits by the IB, Line Ministry and MA officials and audits by auditors might be carried out both on the interventions as well as this documentation. Site visits will be made to project sites in order to verify consistency between submitted documents and the actual works carried out. The Beneficiary will retain ultimate responsibility to ensure that the documentation is in order. Failure to retain the documentation may have financial repercussions on the project.

4.4 Project Progress

The beneficiary prepares a Project Progress Report (PPR) every four months. The report is compiled on a specifically designed template and is intended to give a snap shot on progress (physical and financial) and any risks or issues needing mitigation and/or resolution. The report will be endorsed by the IB and will be used during the Bi-lateral meetings. The PPR will contain the following data:

• Project data in terms of funds in terms of funds allocated to the project as per grant agreement;

• List of project activities and their status; • Implementation update; • Update of the project as at cut off date for reporting; • Update on progress achieved from the last Project progress report submitted • Planned/actual implementation schedule as grant agreement; • Contracting schedule; • A table containing the planned vs actual disbursement schedule as in the grant

agreement • A table with the performance indicators obtained to date; • A table with a list of the actual publicity initiatives undertaken and; • A section dedicated to any follow up action required to mitigate risks; • Update on projected revenue (where applicable); • Details are to be provided as at the cut off date of the report

4.5 Payment Process


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Schemes financed by the EFF follow a centralized payment process for the payment of activities. These Guidance Notes give a brief introduction on how the payment process works. The applicant must ensure the retention of all original receipts for the activities financed by the scheme. These receipts must be from the same supplier as that of the approved quotation. The activities financed by the scheme must also be the same as those approved in the Application Form, and must be found on site during site visits. The original receipts are passed on to the IB as part of the co-financing claim for repayment. The beneficiary must retain copies of the receipts and proof of payment submitted to the IB. Discrepancies between the quotation and receipt must be first discussed with the IB in writing. The IB vets all original receipts in relation to the project quotations, project timeline and project budget. Once the vetting is completed the receipt is entered into a centralized database managed by the Managing Authority. This receipt goes through a number of verification stages, and is ultimately approved for payment by the Treasury. The Beneficiary will receive a direct bank transfer with the amount due. The Beneficiary has to either open a separate bank account specifically for the purpose of the scheme towards which payments can be executed by Treasury or maintain an adequate accounting code for all transactions relating to the operation.25 The Applicant has to declare whether a separate accounting code will be used or whether a separate bank account will be maintained for the project in section 2.6.2 of this Application Form. A notification advice of this payment is also sent by post. This document must be placed in the project file together with all the other documents that are to be retained. It is essential that any changes to the Grant Agreement are to be approved by the IB prior to the Beneficiary’s commitment to any such changes. If the beneficiary commits to any changes prior to the IB authorisation, than such expenditure will automatically be considered ineligible.

4.6 Publicity

Projects financed by the EFF are required by Chapter V of Commission Regulation 498/2007 to ensure that activities financed by the Scheme have publicity to show that the activity was part financed by EFF. This is a requirement followed by all Member States benefiting from the EFF. Failure to adhere to this Regulation could result in funds being recovered from projects. Where the total eligible cost of an operation co-financed by the EFF, exceeds EUR 500,000 and consists in the financing of infrastructure or of construction operations the beneficiary shall put up a billboard at the site of the operation during its implementation. The information referred to in Article 33 of Commission Regulation 498/2007 shall take up at least 25 % of the billboard. Where the total eligible cost of the operation exceeds EUR 500,000 and consists in the purchase of a physical object or the financing of infrastructure or of construction operations, the beneficiary shall put up a permanent explanatory plaque that is visible and of significant size no later than six months from the date of completion of the operation. The plaque shall state the type and name of the operation in addition to the information referred to in Article

25 The IB recommends that Beneficiaries maintain a separate bank account for all transactions relating to the

operation without prejudice to national accounting rules.


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33 of Commission Regulation 498/2007. The information referred to in that Article shall take up at least 25 % of the plaque. Also, successful applicants agree to have the name of the beneficiary/enterprise, the name of the operation and the amount of public funding allocated to the operation published on the website. The IB shall be responsible for the publication, electronically or otherwise, of the list of Beneficiaries, the names of the operations and the amount of public funding allocated to the operations. The template to be used for publication shall be provided by the MA. Beneficiaries shall be informed by the IB at the stage of application of this obligation.

4.7 Checks and Monitoring

Monitoring forms part of the duties and responsibilities of the IB implementing the Scheme. The IB will be monitoring all projects financed by the scheme closely to ensure that everything runs smoothly and that no funding is misused by applicants. It is also the duty of the successful applicants to follow the Guidance Notes for Implementation that will give guidance on successfully implementing the project. Whilst vetting receipts sent by successful applicants, the IB will carry out On the Spot Checks for the activities mentioned in the receipts. Should discrepancies be found, the payment process will not be completed and the receipts will be rejected. The IB will also carry out on-the-spot checks on the project file and the documents that must be retained by the Beneficiary. Apart from the IB, the Beneficiary may be subject to checks by the LM, MA, and the CA, the Government’s Internal Auditors, the National Audit Office, the European Commission and the Court of Auditors. Successful applicants must ensure that all the required documentation is on site at all times. The IB must be kept informed at all times if there are any changes to the project as outlined in the Guidance Notes to project implementation. Such development must be identified prior to such changes being implemented. IB Contact Details Further information on the scheme, as well as information and guidance on the filling in the Application Form can be obtained by contacting the Customer Care Desk at the European Union Affairs Directorate, by means of one of the following: Postal Address: European Union Affairs Directorate, Ministry for Resources and Rural Affairs, Francesco Buonamici Street, Floriana. Telephone: 22927844 Webpage: http://vafd.gov.mt/eff Email: [email protected]

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