FINANCING OPPORTUNITIES Workshop Oteshevo 14-16 May 2018

National law in Macedonia EU National law in Macedonia MICRO Up to 10 employees revenue ≤ 2 milion € revenue ≤ 50.000 € Balance sheet value ≤ 2 milion € Max 10 % of gross profit made from 1 client SMALL Up to 50 employees revenue ≤ 10milion € ≤ 10 milion € MEDIUM Up to 250 employees revenue ≤ 50 milion € revenue ≤ 10 milion € ≤ 43 milion € ≤ 11 milion € LARGE All others

TYPES OF SUPPORT OF SME’S Not financial Advising and consultation Business incubators Economic chambers B2B meetings Promotion abroad - fairs Training for improvement of skills and knowledge Networking Financial Start up grants and loans Improving production grants and loans Innovation grants and loans Guarantee funds Funds for start up capital Venture capital funds

Financing opportunities in Macedonia Employment service Agency -self employment grants (4000 – 10000) -fast growing companies support ( up to 10.000) -new employment subsidies (equipment) (to 3000) -loans -trainings/internships/certification

Financing opportunities in Macedonia Ministry of Economy -Support of patents (within program for innovations) -Support of clusters and clustering -Co financing projects for female management companies (to 2000) - Co financing projects for craftsmen and craftsmen associations (to 3000) - Co financing projects for development projects ( to 3000) - Co financing projects for competitiveness in processing industry (to 3000)

Financing opportunities in Macedonia Co financing projects for SME’s (to 5000) Co financing projects for introducing and implementing standards ISO, HACCP, HALAL and certifications (2000-3000) Co financing projects in tourism promotion (to 2000) Co financing projects for tourism purpose of rural accommodation capacities (to 3000) (equipment, visual arrangement)

Financing opportunities in Macedonia Ministry of agriculture, forestry and water economy Program for financial support of rural development -mechanization, equipment for primary agriculture, processing equipment, support young farmers, seedlings, livestock, education and promotion activities Program for financial support of agriculture -subsidies for planting crops and livestock Support municipalities Support of Local Action Groups (measure to be announced)

Financing opportunities in Macedonia Bilateral donors – Embassies (GIZ, SDC, USAID, Japan, Norway, Netherland, UNDP…) Support of agriculture, tourism, environment etc. -studies, equipment, education, improvement of value and supply chain Other donors and projects SWG -support in agriculture and tourism -education, trainings, equipment, networking, value chain

Financing opportunities in Macedonia Fond for innovation and technological development Instrument for grants for start up and spin off companies -support fro SME’s for creating new product or service Instrument for grants for commercialization of innovations -support phases from developing of prototype to market phase Instrument for grants for technology transfer - support and encourage the transfer and implementation of new innovative and improved technologies, know-how and technological processes Call for project for green energy and social development

Financing opportunities in Macedonia Fond for innovation and technological development (Grants for support for SME’s – within the plan for economic development of the Government of RM) Co financing grants for fast growing SME’s -small and medium size -co finance 30 % of total investment up to 160.000 euro / applicant -project: study, certification, energy efficiency, waste management, ICT, long term organization and control management systems -if grant approved – company needs annual to increase 20% of employees and revenue in next 24 months

Financing opportunities in Macedonia Co financing grants for micro companies -co finance 30 % of total investment up to 80.000 euro / applicant -micro companies only -projects: studies, certificates, intellectual property, energy efficiency, waste management, ICT, long term organization land management plans Co financing grants for trainings and education of newly employed young people -small or medium size - co finance 30 % of total investment up to 80.000 euro / applicant -practice training and Fast track management program Co financing grants for improvement of innovation -co finance 30 % of total investment up to 325.000 euro / applicant -project: development of new products and services, industrial design, new production process, marketing plans

Financing opportunities in Macedonia IPARD II 2014-2020 60 mil euro EU funds + 20 mil euro national funds IPARD program priorities: Improvement of sustainability and competitiveness of agriculture and processing food Renewal, preservation, improvement of ecosystems dependable on agriculture and forestry Promoting equal territorial development and development of rural areas Transfer of knowledge and innovation in agriculture, forestry and rural development

Financing opportunities in Macedonia IPARD II 2014-2020 IPARD measures: Investment in material assets for agriculture (29.46 mil) -farmers and cooperatives -min 3000 euro – up to 60% (70%) refund Eligible activities: -construction objects for agriculture, processing , warehouses -new mechanization and agriculture equipment (for primary production, processing, collection, keeping…) - new mechanization and agriculture equipment for protection of environment (waste management , energy eff.) -purchase new seedlings (vineyards, orchards) -equipment for irrigation and wells -road, electricity, water supply…etc

Financing opportunities in Macedonia IPARD II 2014-2020 IPARD measures: Investment in material assets for processing of agriculture and fish products (29.28 mil) -private sector entities and cooperatives -min 10.000 euro – up to 50 % (60%) refund Eligible activities: -construction objects for processing and marketing -new machines and equipment (for production, processing, packing, collection, keeping…) -transport of materials – specialized vehicles - new machines and equipment for protection of environment (waste management , energy eff.) -purchase new seedlings (vineyards, orchards) -equipment for irrigation and wells -road, electricity, water supply…etc

Financing opportunities in Macedonia IPARD II 2014-2020 IPARD measures: Diversification of farms and development of businesses (6.32 mil) -farmers, private sector entities and cooperatives -min 1500 euro – up to 65% refund Priority sectors 1.Alternative agriculture production -breeding of mushrooms, Tartuffe, rabbits, snails, aromatic plants and spices, fast growing trees, aquaculture, flowers, birds, seed material, honey production 2.Production of food products and beverages 3.Production of non-food products

Financing opportunities in Macedonia IPARD II 2014-2020 Priority sectors 4. Crafting activities 5.Establishing service for the need of agriculture -veterinarian services, workshop for repair of tractors and equipment, service for rent of equipment 6.Services for rural population -maintenance, home care, children care, education and recreation centers, cinema-radio-tv service, transport service 7.Promotion of rural tourism -accommodation capacities (indoor and outdoor), catering services, degustation rooms-direct sale, rural museums, recreational activities 8.Manufature and sale of energy (renewable sources) -solar, wind, water, biomass

Financing opportunities in Macedonia IPARD II 2014-2020 Eligible activities: -construction objects for production and warehouses, accommodation, catering, sport objects, -new machines and equipment for the economic activity -transport vehicles (for cooling or transport biomass) - new machines and equipment for protection of environment (waste management , energy eff.) -purchase new seedlings (vineyards, orchards) -equipment for irrigation and wells -road, electricity, water supply…etc

Financing opportunities in Macedonia IPARD II 2014-2020 IPARD measures: Investment in public infrastructure (12.13 mil) -municipalities and public enterprises for forestry and pastures Technical support (2.82 m) -IPARD management body New measure to be introduced Support in establishing groups of producers Organic production and agro ecological measures Implementation strategies for rural development – LEADER Improving of trainings Consultancy services Establishment and protection of forestry

Financing opportunities in Albania IPARD 2014-2020 Measure - Investments in physical assets of agricultural holdings (41.87 m) Min.10.000 euro – up to 60 % (70%) refund (+10 for waste man.) Eligible sectors and activities: Milk and meat sector - milking equipment, cooling storage, construction of animal housing, feed preparation, waste storage facilities, watering systems, fence and gates, renewable energy technology, IT Fruit, vegetable, vineyard sector -reconstruction existing orchards, irrigation systems, horticultural equipment, construction greenhouses and installation of renewable energy technology, harvest and post harvest equipment, storage…

Financing opportunities in Albania IPARD 2014-2020 Measure - Investments in physical assets concerning processing and marketing of agricultural and fishery products (35.33 mil) - Food processing enterprises SME Min.25.000 euro – up to 50 % refund (+10 for waste man.) Eligible sectors and activities: Milk collection, storage, processing, - milk collection centers, tanks, final diary product, control of production, food safety systems, IT for monitoring and management, milk plants, renewable energy projects, waste treatment Fruit and vegetable sector -food processing , preservation and pasteurization lines, packaging and labeling, deep freezing, quality control, food safety management, IT, waste treatment

Financing opportunities in Albania IPARD 2014-2020 Eligible sectors and activities: Slaughterhouses and meat processing -construction and equipment, cooling storages, meat processing plant and equipment, safety and quality management systems, IT, waste management Wine sector -processing facilities , equipment for pressing, storage, bottling, packaging, safety and quality management systems, IT, waste management, renewable energy technologies

Financing opportunities in Albania IPARD 2014-2020 Measure - Farm Diversification and Business Development (14.67 mil) - Farmers, individuals, business sector, cooperatives Min.10.000 euro – up to 65 % refund Eligible sectors and activities: Medicinal and aromatic plants, mushrooms, honey , snails - equipment for cultivation, storage, drying, for honey production and maintenance bee hives On farm processing and direct marketing -on farm processing facilities for fruit, vegetables, dairy, meat, olive oil, wine, honey -equipment for selling points for direct marketing

Financing opportunities in Albania IPARD 2014-2020 Eligible sectors and activities: Processing and marketing of wild /cultivated MAP, mushroom, honey -collection centers, storage, drying, sorting, packaging, production essential oils, honey processing Aquaculture -production process equipment, quality and hygiene management, waste management, cooling and storing facilities Nature and rural tourism -re-contruction traditional houses, accommodations, catering, facilities and equipment for sport and recreational activities, (camps, shelters, playgrounds, horse-riding, fishing, rafting, hiking, mountain biking, play barns etc)

Financing opportunities in Albania IPARD 2014-2020 Eligible sectors and activities: Service for rural population and businesses -child care, elderly or disabled people care, adult education, IT centers -repair and renting of agriculture machinery (machinery rings) Handcrafts and manufacturing industry -facilities for traditional crafts including service for customer to participate in craft activities, small scale production Renewable energy production -plant for renewable energy production (biodiesel, biogas, wind, photovoltaic etc…) Measure - Technical assistance (2.47 mil)

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) -18 mil euro – IPA EU funds + Government fund administrated by World Bank Local and Regional Competitiveness Project (LRCP) is a four- year investment operation financed with a grant from the European Union (IPA II), and  consists four components. The Project Development Objective of the LRCP is to enhance the contribution of tourism to local economic development and improve the capacity of the Government and public entities to foster tourism growth and facilitate destination management.

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) Project Components Technical Assistance for Tourism Development – Component 1 Strengthening Destination Management and Enabling Environment –  Component 2 Investment in Tourism-Related Infrastructure and Linkages at Destinations – Component 3 Strengthening Project Management – Component 4

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) Second call for proposals Sub-grants for infrastructure investments -100.000 – 1 M single project -up to 3 M if partnership -municipalities, RDC, public entities for tourism / cultural heritage -min 10 % co financing (cash or in kind) -12 months implementation period Activities -road and communal infrastructure for tourism, mapping and marking walking and biking trails, setting signs, improvement of premises for tourism and cultural heritage, restoration of location traditional and historical objects, improvement of access roads, promotion and branding etc.

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) Sub-grants to tourism sector organizations and educational and training service providers -up to 50.000 – single project -up to 150.000 if partnership -non profit entities, chambers, NGO, education and training providers -min 10 % co financing (cash only) -if profit entities 50% co financing -12 months implementation period Activities -improvement of touristic offer, improvement of management skills, purchase of equipment, ICT, access to information, promotional activities, B2B meetings, branding, improve service, implement standards, etc.

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) Matching grants for local micro and small sized enterprises -up to 100.000 – single project -up to 300.000 if partnership -micro and small enterprises -min 50 % co financing (cash only) -12 months implementation period Activities -new or improved product in value chain of tourism (improve offer, increase quality, introduce new service-culinary experience), reconstruction of capacities for improvement of service and categorization, small equipment, market research, marketing strategy, improve quality of design and service, easy access to souvenirs and handcrafts that connect to local traditions, trainings, establishment of business links and innovations, improve standards etc

Thank you for your attention !!!

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) Submission procedures This award process Call consists of two stages: -Expression of Interest (EoI) (first stage) and -Full Proposals (second stage). The second stage is applicable only for those applicants that have passed the Expression of Interest administrative and eligibility check

Financing opportunities for tourism development in Macedonia Local and Regional Competitiveness Project (LRCP) Project proposals have to address specific gaps determined in the eligible destinations (10 destination in Macedonia) Project proposals have to be in line with World Bank policies for protection of environment with the main goal of fostering effective identification and decrease the potentially harmful effects on the environment and social aspects, which could arise during the development process