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.

9. PROJECT BUDGET

Question 9.1. Is there a minimum and/or maximum project budget?

Yes, the total budget for ordinary projects in the 2nd Calls for Ordinary projects proposals must respect the following thresholds:

• Minimum total budget: 500.000,00 EUR.
• Maximum total budget: 5.000.000,00 EUR.

In case the project does not fulfill the abovementioned financial thresholds, it shall be rejected.

Question 9.2. Is there a minimum and/or maximum budget par partner

Each Final Beneficiary must participate with a minimum of 100.000,00 EUR and cannot receive more than 60% of the total project budget. If partner's budget does not respect these minimum and maximum threshold the project will be rejected.
Partners have to calculate project budget with the "total budget" planning approach. "Total budget" is always 100% of the financial resources needed to implement project activities. It includes the Programme contribution (IPA funds and national co-financing) and, when applicable, any contribution required by the Calls for undertaking activities (in case of "de minimis" subsidies).

Question 9.3. Under the 1st Call for Ordinary projects proposals private Final Beneficiaries from IPA Countries (Candidate and Potential Candidate Countries) where required to provide the national co-financing with public national sources (throughout a "public sponsor"). Does this rule still apply also for the 2nd Calls for proposals?

According to the new Commission Decision C(2011) 3396 of 18th May 2011 amending the Decision which approved the Operational Programme, the national co-financing may be provided also with private resources. Consequently, all private partners may cover the national co-financing with their own private resources.

Question 9.4. May the required co-financing (national co-financing or de minimis contribution to the project budget) consist of contributions in kind? If not, what is eligible?

Contributions in-kind (such as provision of land or real estate, equipment or raw materials, or unpaid voluntary work) do not represent actual expenditure and, consequently, are not eligible costs and cannot be considered as co-financing by the Beneficiary. Anyway, the cost of staff assigned to the Project is not a contribution in kind and may be considered as co-financing when paid (directly) by the Final Beneficiary listed in the Application Form.

Question 9.5. May the required co-financing (national or de minimis contribution) consists of contributions in-kind? If not, what is eligible?

Contributions in-kind (such as provision of land or real estate, equipment or raw materials, or unpaid voluntary work) do not represent actual expenditures and, consequently, are not eligible costs and cannot be considered as co-financing by the Beneficiary. Anyway, the costs of staff assigned to the Project is considered as an eligible cost and not a contribution in-kind, when paid by the Final Beneficiary, since it is an "in-cash" contribution. Staff not paid by the Final Beneficiary would be considered a contribution in kind. In that case, Final Beneficiaries should pay particular attention to ensure that these are real costs based on standard rates.

Question 9.6. Do the project partners have to contribute financially to the project?

According to the Country's national co-financing system, when national co-financing is not covered (or is partly covered) by the Participating Country (f.i. by a National Fund), partners must provide the national co-financing with their own contribution.
Besides, when project activities are considered state aid relevant partners must contribute with at least 15% to their total project budget with their own resources. Please note that national co-financing is different from the funding that the partner has to guarantee if it falls under the "de minimis regime".

Question 9.7. How can Beneficiaries located outside the Programme eligible area cover the national co-financing?

Beneficiaries located outside of the Programme area, cover the national co-financing in the same way as Beneficiaries located in the area, where the national co-financing share of 15% of the Programme contribution is ensured by Final Beneficiary according to the national co-financing system.

Question 9.8. In which currency must be indicated the estimated budget?

The estimated budget must be always indicated in Euros, applicable also for partners located in the countries with different currency.