Civil Society Organizations and Local Authorities Development in Lao PDR RESTRICTED Call for Proposals EuropeAid/151225/DD/ACT/LA Submission deadline 31/03/2016 at 11:00 (Brussels date and time) Info session 24 February

Grant : principles Grant is a financial donation – non-commercial payment (No grant may give rise to profits) The Contracting Authority (The EU) sign a contract with Grant beneficiary(ies) 2

Grant - Actors The lead applicant -> beneficiary identified = the coordinator- main interlocutor - (act on behalf of the co-beneficiary(ies) if any) The co-applicant(s) (if any) -> the other co-beneficiary(ies) The affiliated entity(ies) (if any) Others : associates, contractors and third parties benefitting from financial support 3

Grant beneficiaries Are jointly responsible for the design and implementation of the action Shall implement the action with care, efficiency, transparency and diligence Shall respect the sound financial management Own the results of the action Co-finance action (no full financing under this call) 4

5 Role of the Coordinator for the Lead applicant 1.Sign the grant contract 2.Receive a mandate from the other beneficiaries (application form) 3.Endorse the full financial responsability for the action 4.Draw up the reports, financial statements, any documents required under the contract 5.Ensures the internal coordination including for audits or evaluations required under the contract 6.Contact point between the beneficiaries and the Contracting Authority 7.Establish the payment requests and is the sole recipient of payments from the Contracting authority 8.The coordinator cannot delegate its tasks to the other beneficiaries

Eligibility : Lead Applicant (1) In order to be eligible for a grant, the Lead applicant must: For Lot 1 - Civil Society Organisations  be a legal person and  be non-profit-making and  be Civil Society Organisations and  be established in a Member State of the European Union, in a Member State of the European Economic Area (EEA) or in Lao PDR, officially registered in accordance with the legislation in force in the country concerned and 6

7 For Lot 2 - Local Authorities:  be a legal person and  be non-profit-making and  be Local Authorities (LA) or associations of Local Authorities and  be established in a Member State of the European Union, in a Member State of the European Economic Area (EEA) or in Lao PDR, officially registered in accordance with the legislation in force in the country concerned and Eligibility: Lead Applicant (2)

8 Eligibility of applicants - definition  "Civil Society Organisations (CSOs)” are non-State, non-profit making actors operating on an independent and accountable basis which include: non governmental organisations, organisations representing indigenous peoples, organisations representing national and/or ethnic minorities, diaspora organisations, migrants' organisations in partner countries, local traders' associations and citizens' groups, cooperatives, employers' associations and trade unions (social partners), organisations representing economic and social interests, organisations fighting corruption and fraud and promoting good governance, civil rights organisations and organisations combating discrimination, local organisations (including networks) involved in decentralised regional cooperation and integration, consumer organisations, women's and youth organisations, environmental, teaching, cultural, research and scientific organisations, universities, churches and religious associations and communities, the media and any non governmental associations and independent foundations, including independent political foundations. Eligibility: Lead Applicant (3)

9 Eligibility of applicants - definitions  “Local Authorities (LAs)” refer to public institutions with legal personality, component of the State structure, below the level of central government and accountable to citizens. Local Authorities are usually composed of a deliberative or policy-making body (council or assembly) and an executive body (the Mayor or other executive officer), directly or indirectly elected or selected at local level. The term encompasses different tiers of government, e.g. villages, municipalities, districts, counties, provinces, regions, etc.  “Associations of Local Authorities (ALAs)” includes networks of associations of Local Authorities: a group of associations with a permanent representative body established as an autonomous organisation in accordance with the laws in force in the country concerned. It must comply with all the eligibility criteria laid down, and must be able to assume full contractual responsibility for the actions undertaken, based on a mandate from the members of the network. The network must have the capacity to manage an action of the scale of that which is being proposed. Eligibility: Lead Applicant (4)

Eligibility: Lead Applicant (5) Lead applicant legally established in Lao PDR may act individually Lead applicant legally established in Lao PDR may act with co-applicant(s) Lead applicant legally established in any other eligible country (MS EU/EEA) must act with at least one co-applicant legally established in Lao PDR. 10

Eligibility: Lead Applicant (6) Lead applicant legally established in Lao PDR may act individually or with co-applicants Lead applicant legally established in any other eligible country under different from Lao PDR must act with at least one co- applicant legally established in Lao PDR. In the latter case, lead applicant who propose an action must also demonstrate: i) an established and effective partnership with CSOs and if relevant also together with LAs /ALAs established in Lao PDR, and ii) that the proposed action is based on an initiative of co- applicant(s) established in Lao PDR ensuring their involvement during all the stages of the implementation of the action. 11

Eligibility : Co-applicant (1) MUST satisfy the same eligibility criteria as the lead applicant participate in design and the implementing of the action costs are eligible in the same way as for the lead applicant Co-applicant(s) must sign the Mandate (Annex A.2.- section 5.2 *) If awarded the Grant contract, the co-applicant(s) (if any) will become beneficiary(ies) in the Action (together with the Coordinator) 12

Eligibility : Co-applicant (2) In addition to the categories referred to in section 2.1.1, the following are however also eligible as co-applicant: Lot 1: Local Authorities (LAs) or Association of Local Authorities (ALAs) established in a Member State of the European Union, in a Member State of the European Economic Area (EEA) or in Lao PDR, and constituted in accordance with the legislation in force in the country concerned. Lot 2: Civil Society Organisations (CSO) established in a Member State of the European Union, in a Member State of the European Economic Area (EEA) or in Lao PDR and constituted in accordance with the legislation in force in the country concerned. 13

Eligibility: Affiliated entity(ies)(1) The lead applicant and its co-applicant(s) may act with affiliated entity(ies.) Only entities having a structural link with the applicants, in particular a legal or capital link may be considered as affiliated entities. This structural link encompasses mainly two notions: (i) Control on the annual financial statements, consolidated financial statements and related reports : i.e. : daughter companies or parent companies or sister companies Evidence : consolidated accounts (ii) Membership: i.e. the beneficiary is legally defined as a e.g. network, federation, association in which the proposed affiliated entities also participate OR i.e. the beneficiary participates in the same entity (e.g. network, federation, association) as the proposed affiliated entities. Evidence : Statutes or equivalent act establishing the entity (network, federation etc.) 14

Eligibility : Affiliated entity(ies) (2) MUST satisfy the same eligibility criteria as the lead applicant and the co-applicant(s) participate in design and the implementing of the action costs are eligible in the same way as for the lead applicant Affiliated entity(ies) must sign the affiliated entity(ies) statement (Annex A.2.-section 5.3*) If awarded the Grant contract, affiliated entity(ies) (if any) will NOT become beneficiary(ies) of the Action and signatory(ies) of the contract 15

Eligibility: Other actors: Are not applicant, nor affiliated entity, no mandate, statement to sign Associates:  Do not have to meet the eligibility criteria  Play a real role in the action  Do not receive funding from the grant (with the exception of per diem or travel costs)  Must be mentioned in (Annex A.2 –section 4) Contractors:  The beneficiaries and their affiliated entities are permitted to award contracts. Associates or affiliated entity(ies) cannot be also contractors in the project. Contractors are subject to the procurement rules set out in Annex IV to the standard grant contract. 16

Financial support to third party ONLY for Lot 1 Financial support to third parties must be included, but may not be the main purpose of the action. Applicants may propose financial support to third parties in order to help achieving the objectives of the action. The financial support to third parties mechanisms will be used to fund Lao based small-scale community development projects to be carried out by the CSOs including CBOs and if relevant also together with LAs/ALAs, as a way to put in practice the capacities acquired by their participation in the capacity building activities organised under the projects. The proposed action of the financial support to third parties must demonstrate a strong capacity building component (trainings, networking, technical support, know-how transfer, etc) supporting the third parties benefiting from the financial support. maximum amount of financial support per third party is EUR. 17

Number of applications and grants per applicant The lead applicant may not submit more than one application under this call for proposals. The lead applicant may not be awarded more than one grant under this call for proposals. The lead applicant may be a co-applicant or an affiliated entity in maximum one application of the same lot at the same time. A co-applicant may not submit more than one application as co-applicant per lot under this call for proposals. A co-applicant may not be awarded more than one grant per lot under this call for proposals. The affiliated entity(ies) may take part in maximum two applications as affiliated entity(ies) per lot under this call for proposals. 18

19 Financial Allocation (1) This call is published with a Suspension Clause for Budget allocation 2017 The overall indicative amount available under this call is EUR.  Lot 1: Civil Society Organisations EUR  Lot 2: Local Authorities EUR The Contracting Authority reserves the right not to award all available funds, which results from the pooling of Civil Society Organisations (CSO) and Local Authorities (LA) budgets for years 2015 (EUR ) and 2017 (EUR ). Transfer of funds allocated to the Lot 1 and Lot 2 is not possible.

20 Financial Allocation (2) Size of grants  Lot 1: Civil Society Organisations minimum amount: EUR maximum amount: EUR  Lot 2: Local Authorities minimum amount: EUR maximum amount: EUR

Maximum % EU contribution For both lots: Minimum percentage: 50% of the total eligible costs of the action. Maximum percentage: For proposals submitted by applicants originating from Lao PDR, the grant may not exceed 90% of the total eligible costs of the action (see also Section 2.1.5). For proposals submitted by applicants from a Member State of the European Union the grant may not exceed 75% of the total eligible costs of the action (see also Section 2.1.5) The balance (i.e. the difference between the total cost of the action and the amount requested from the Contracting Authority) must be financed from sources other than the European Union Budget or the European Development Fund. 21

Eligibility of costs These costs must: be incurred during the implementation period of the action (established in the Special Conditions) Exception : i.e. Final expenditure verification report be indicated in the estimated overall budget for the action (annex III- Budget breakdown) be necessary to carrying out the action ( Annex I - description of the Action) be identifiable and verifiable, in particular be recorded in the Beneficiary(ies)’s accounting records ( Annex II General Conditions and Annex VII Expenditure verification ) comply with the requirements of applicable tax and social legislation be reasonable, justified and comply with the requirements of sound financial management, in particular regarding economy and efficiency 22

Eligible costs Examples of eligible direct costs are: cost of staff assigned to the action(gross sal. + Soc. Sec. charges…) travel and subsistence costs for staff and other persons taking part in the action costs of local offices, and consumables Implementation contracts awarded by the Beneficiary(ies) for the purpose of the action (Annex IV) i.e: services, studies, supplies, equipments, evaluation, audit, translation, visibility actions Indirect taxes (including VAT) paid and not recoverable by the Beneficiary(ies) (provided that they can show they cannot reclaim them) (Annex J) Etc…. See article 14 from general conditions 23

Lump sums Flat-rates There are 4 forms of costs…. Unit costs Real costs incurred 3 types of simplified cost option 24

Eligible costs Simplified cost options may take the form of: -unit costs: costs clearly identified in advance as amount per unit Example: unit costs for small local transportation or other expenses in rural areas (often in expense categories with small value items and/or with poor documentation) -lump sums: covering in global terms all or certain specific categories of costs identified in advance Example: global cost for the organisation of an opening event, global cost for the production of visibility items flat-rate financing: costs clearly identified in advance as percentage fixed ex ante Example: local office costs and related expenses (maintenance, security, a shared car etc.) charged as a percentage of staff costs 25

Eligible costs Simplified costs option: Limited to max EUR per beneficiary (co/applicant) (to distinguish from the financial support to third party) Proposal by the beneficiary BUT approval by the Contracting Authority Method to determine the simplified costs based on estimates using objective data such as -> statistical data -> certified or auditable historical data of the applicants explanations on the calculation method supporting the simplified costs is to be detailed in Annex III- Justification sheet Use as reference the Annex K 26

Eligible costs A contingency reserve not exceeding 5% of the estimated direct eligible costs may be included in the Budget of the Action. It can only be used with the prior written authorisation of the Contracting Authority. 27

Eligible costs Eligible indirect costs: are those which may not be identified as specific costs directly linked to the implementation of the action flat rate fixed at maximum 7% of the estimated total eligible direct costs. ie: back office, support from headquarters, staff training… direct costs cannot include indirect costs The applicant is asked to provide justification on which expenditures are expected to be charged under the indirect costs before the signature of the contract. Once the flat-rate is fixed in the special conditions of the grant contract, no supporting documents are requested. 28

Ineligible costs The following costs are not eligible: debts and debt service charges (interest); provisions for losses or potential future liabilities; costs declared by the beneficiary(ies) and financed by another action or work programme receiving a European Union (including through EDF) grant; purchases of land or buildings, except where necessary for the direct implementation of the action, in which case ownership must be transferred, in accordance with Article 7.5 of the General Conditions of the standard grant contract, at the latest at the end of the action; currency exchange losses; credit to third parties; In Kind contributions; salary costs of the personnel of national administrations. 29

Contributions in Kind Contributions in kind means the provision of goods or services to the grant beneficiary free of charge by a third party: The contracting authority may accept contributions in-kind as co-financing, if considered necessary or appropriate. Therefore, contributions in kind do not involve any expenditure for the grant beneficiary, are not considered as eligible cost. Human resources affected to the action are not contributions in Kind. If contributions in kind are accepted as co-financing, the beneficiary(ies) shall ensure they comply with national tax and social security rules. The beneficiary has to declare the co-financing actually provided in the final report. The beneficiary(ies) may at that point replace any planned contribution from its own resources by financial contributions from third parties. 30

Budget breakdown, justification and source of funding The budget to be filled up is an Excel document with three worksheets: 1. Budget for the Action (only one budget including all costs)  Heading 1 – Human Resources, Per Diems (Staff costs)  Heading 2 – Travel  Heading 3 – Equipment and supplies  Heading 4 – Local Office  Heading 5 – Other costs, services ( if experts are hired under service contract their costs have to be budgeted under this heading, if staff is under employment contracts their costs have to be budgeted under Heading 1 )  Heading 6 – Other  Heading 8 – Indirect costs (max 7%)  Heading 10 – Provision for contingency reserve (max 5%) 2. Justification of the budget for the action 3. Expected sources of funding & summary of estimated costs 31

THANK YOU ! 32