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Potential applicants will be able to find below answers to some of the questions frequently addressed to the JTS concerning the first calls for proposals for ordinary project. While JTS do their utmost to avoid any errors or omissions, the answers given below are for general guidance, and are not to be considered as legally binding. For this reason the reader is encouraged to consult the source documents when these are referred to.

3. BENEFICIARIES

Question 3.1. Who is eligible as Final Beneficiary for project application and funding under the 2nd Calls for proposals?

Any institution having legal personality can be involved in a project proposal as a Final Beneficiary. In order to be eligible Final Beneficiaries must be nationals of one of the Participating Countries to the Programme and be classified as one of the following:

  1. Public bodies: national, regional, local authorities and other public bodies, established and governed by public law.
  2. Bodies governed by public law: pursuant to Article 1.9 of Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004.
  3. Private organizations, including private companies: any organization (non profit and profit making) established by private law, not falling in the previous categories can be eligible partner and receive IPA funds. Under the 2nd Calls for proposals, profit making organizations mean only Small and Medium Enterprises (SMEs), according to the Commission Recommendation C(2003) 1422. Serbian SMEs are not eligible as project Beneficiaries.

Question 3.2. Who can submit a project?

All partners have to choose among themselves a Lead Partner/Applicant who will be the only responsible for collecting information and required documents from other partners, for filling in the Application Form on behalf of all partners and for submitting the project proposal (both on line (through the Programme Management and Information system (M.I.S.) and in hard copy). It will be also responsible for sending additional supporting documents required during the assessment. Application form and/or documents submitted by partners other than the Lead Applicant will not be taken into consideration.
All eligible Beneficiaries can act as the Lead Beneficiary of a project, with the exception of SMEs, that are eligible only as Final Beneficiaries.

Question 3.3. What does "Body governed by public law" mean?

According to Article 1.9 of Directive 2004/18/EC of the European Parliament and the Council (31 March 2004), a 'body governed by public law' means any body:

  1. established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character;
  2. having legal personality and
  3. financed, for the most part, by the State, regional or local authorities, or other bodies governed by public law; or subject to management supervision by those bodies; or having an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities, or by other bodies governed by public law.

All the above mentioned three requirements must be all respected.
Additionally, the criteria at bullet c) of the definition above shall be interpreted in a restrictive sense, which means that:

  1. more than 50% of the budget of the body has to come from State, regional or local public authority/ies or other body/ies governed by public law as promoter/s, partner/s or stakeholder/s; or
  2. the management of the body shall be supervised by personnel charged by the bodies described above as controllers or auditors; or
  3. more than 50% of the members of the board in charge of managing the body or to supervisory the body has to be appointed by a State, regional or local public authority or body/ies governed by public law.

Moreover, the compliance with national public law in the matter of employment and procurement contracts is another criterion that confirm the nature of "body governed by public law".

Question 3.4. An economic body should be qualified, in the Call as a "Body governed by public law" (if all the requirements are respected) or as a profit private organization (SME)?

According to the Article 1.9 of EC/2004/18 Directive, recalled in the current Calls for Proposals of Adriatic IPA CBC Programme, in order to be considered a body governed by public law, beside the other two requirements, a body must be "established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character".
Thus any entity which is engaged in an economic activity cannot be considered a body governed by public law. According to art. 1 of the Commission Recommendation of 06/05/2003 such entities must in fact be considered ENTERPRISES.

Question 3.5. Can private organizations participate as partner? And as Lead Beneficiary?

Under the 2nd Calls for Proposals, both non-profit organizations regulated by private law and Small and Medium Enterprises (SMEs) (as defined by the Commission's Recommendation 2003/361/CE of 6 May 2003) are eligible to apply for IPA funds.
Non-profit private organization can act both as Lead Beneficiary and as Final Beneficiary, whilst profit making organizations (SMEs) are NOT eligible to participate as Lead Beneficiary in projects, but only as Final Beneficiary. Non-profit organizations acting as Lead Beneficiary of a financed project will be required to provide a financial guarantee issued for the total IPA contribution allocated to the project on the basis of the form provided by the Managing Authority.
Serbian Profit-making organizations (SMEs) are not eligible at all under the 2nd Calls for ordinary projects proposals.
Private project partners (profit or non-profit making) will be granted under "de minimis" aid by IPA Adriatic CBC Programme according to the EC Regulation No. 1998/2006, unless they prove that they are not acting as private interest undertakings in the project.

Question 3.6. Who is eligible to be Lead Applicant/Lead Beneficiary and which are its responsibilities?

Every partner, with the exception of SMEs can be chosen to act as Lead Applicant/Lead Beneficiary. Partners choose among themselves the Lead Applicant, which must have financial and administrative capacities to perform that role. After the project approval, the Lead Beneficiary will represent the link between the Programme and the partnership. The Lead Beneficiary is responsible for the assignment of the tasks and co-ordination of activities among partners. In other words, the Lead Beneficiary ensures the implementation of the whole operation within the given timeframe and the budget. Lead Beneficiary should appoint (internally) or contract (externally) a project coordinator and a financial manager.
The roles of the Lead Beneficiary can be summarized as follows:

  • lays down the arrangements for its relations with the final Beneficiaries participating in the operation in an agreement (Partnership Agreement);
  • guarantees the sound financial management of the funds allocated to the operation, including the arrangements for recovering amounts unduly paid;
  • is responsible for ensuring the implementation of the entire operation;
  • is responsible for transferring the Community contribution to the final Beneficiaries participating in the operation;
  • ensures that the expenditure presented by the final Beneficiaries participating in the operation has been paid for the purpose of implementing the operation and corresponds to the activities agreed between the final Beneficiaries participating in the operation;
  • verifies that the expenditure presented by the final Beneficiaries participating in the operation has been validated by the competent First Level Control Offices established in each participating Country.

For teams from different countries working together over long distances it is essential to establish good communication flows, that have to be constant, adequate, clear and timely throughout the project lifetime.

Question 3.7. Can international organization take part in project proposals?

International organizations are not eligible either as Lead Beneficiary or as Final Beneficiaries and can participate in a project only as Associated partners, not entitled to receive funds from the Programme.
In the meaning of the Programme rules (article 43.2 of Commission Regulation (EC, Euratom) No. 2342/2002) international organizations are:

  1. the international public sector organisations set up by intergovernmental agreements, and specialised agencies set up by such organisations;
  2. the International Committee of the Red Cross (ICRC), the International Federation of National Red Cross and the Red Crescent Societies;
  3. the European Investment Bank and the European Investment Fund.

Question 3.8. Is it possible to form a sort of temporary joint venture to take part in project partnership?

The Beneficiaries that can apply to the Programme calls are:

  1. Public bodies;
  2. Bodies governed by public law;
  3. Private bodies, including SMEs.

Therefore, only juridical entities can be granted by the IPA Adriatic CBC Programme.
As the temporary joint venture or temporary consortium of above category of Beneficiaries is not a juridical entity, being only a partnership contract, it cannot be considered an eligible Final Beneficiary for the 2nd Calls for Ordinary project Proposals.
Additionally, considering that sub-granting is not allowed under these 2nd Calls for Proposals, a temporary joint venture or consortium, represented by a Final Beneficiary as project partner, cannot benefit of Programme funds.

Question 3.9. What does "registered office" mean?

In order to be eligible for grants in the 2nd Calls for proposals, potential Beneficiaries must be entities with legal personality (under the applicable national law) ESTABLISHED (thus having their registered office) in one of the Programme Participating Countries.
The registered office is the official address of an entity (public or private) where the body or firm is established, where registers and records are normally kept and may be inspected, and where the official correspondence is sent; in other words, registered office is the "Head office", i.e. legal address of the legal residence of an entity.

Question 3.10. The eligible derogation territories of Bosnia and Herzegovina are Sarajevo Region, North-West Region, and Central Region. Which are the municipalities included in these Economic regions?

Sarajevo Region: MUNICIPALITIES: Breza, Sarajevo Centar, Cajnice, Foca, Ustikolina, Fojnica, Goražde, Hadžici. Ilidža, Ilijaš, Istocna Ilidža, Istocni Stari Grad, Istocno Novo Sarajevo, Kalinovik, Novi Grad, Novo Goražde, Novo Sarajevo, Olovo, Pale , Pale Praca, Rogatica, Rudo, Sokolac, Stari Grad, Trnovo, Trnovo RS, Vareš, Visoko, Višegrad, Vogošca. Further information at: www.serda.ba
Northwestern Region: MUNICIPALITIES: Velika Kladuša, Buižm, Cazin, Bihac, Bosanska Krupa, Krupa na Uni, Novi Grad, Kostajnica, Kozarska Dubica, Prijedor, Oštra Luka, Gradiška, Srbac, Derventa, Doboj, Prnjavor, Laktaši, Celinac, Banja Luka, Kotor Varoš, Sanski Most, Bosanski Petrovac, Kljuc, Drinic, Ribnik, Mrkonjic Grad, Kneževo, Jajce, Šipovo, Drvar, Glamoc, Bosansko Grahovo.
Central Region: MUNICIPALITIES: Usora, Doboj Jug, Tešanj, Teslic, Maglaj, Zavidovici, Žepce, Zenica, Travnik, Novi Travnik, Vitez, Kakanj, Busovaca, Donji Vakuf, Bugojno, Gornji Vakuf/Uskoplje. Further information at www.rez.ba

Question 3.11. When can a private profit organization be included in the definition of SME?

Under the 2nd Calls for proposals for Ordinary Projects profit making organizations mean only Small and Medium Enterprises (SMEs) as defined in the Commission Recommendation C(2003) 1422. Potential private profit Final Beneficiaries are then suggested to refer to such Recommendation in order to verify whether they are eligible or not under these 2nd Calls for proposals.
Additionally, they are also suggested to provide to the JTS with their supporting documents a declaration on qualification as an SME, based on the model provided by the European Commission "Model declaration on the information relating to the qualification of an enterprise as an SME (2003/C 118/03)".
Such model it is in no way mandatory as regards its use or content, but is designed as one possible example amongst others. Additionally, such declarations are without prejudice to the checks or investigations provided for under national or Community rules.

ACCESS TO THE M.I.S.

Dear users, we inform you that, due to an improvement to the network infrastructure, in order to have access to the M.I.S. we will have to replace the link  https://sso.adriaticipacbc.org/gestionale  with   https://sso.adriaticipacbc.eu/gestionale