1. Private Sector Development Programme

2. Content Programme Background Call for Proposals SME IV Objectives
Budget and Duration
Target groups
Eligibility of Actions and Costs
Procedure to apply
Evaluation procedure
Next Steps

3. Overall Objective of the Aid Programme
To facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community with particular emphasis on the economic integration of the island, on improving contacts with the two communities and with the EU and on preparation for the acquis.

4. Private Sector Development Programme
In total € 22 million allocated from 2006 to 2016 to support SMEs and economic development in TCc.
Ongoing projects:
TAPS (Technical Assistance towards Private Sector Development)
EBRD (Improving SME access to financial & consultancy services)
Previous grant schemes:
133 grant projects successfully implemented in 3 CfP (plus one CfP implemented through UNDP)

5. Competitive Enterprises, Clusters and Business Support Organizations

6. What are "THE GUIDELINES"?
The guidelines are “the rule of the game”.
They include the application form and other annexes (standard contract, budget, logical framework, etc)
the objectives of the programme,
financial allocation,
the priority and themes to be funded,
eligibility rules,
the procedures to be followed by applicants,
the selection and award criteria.

7. Global Objective of the 4th Call
The global objective of the call is to promote competitiveness and business sophistication among Turkish Cypriot´s Small and Medium sized Enterprises (SMEs), Clusters and Business Support Organizations through adaptation to standardized business environments.

8. Specific Objectives (short)
to improve manufacturing standards and exploitation of new technology;
Especially: compliance with new procedures, standards and certifications as a result of the implementation of food safety and product safety local legal texts;
to diversify product ranges and production processes;
to support innovative business models/ideas;
to improve SMEs' and clusters' financial and management practices;
to strengthen the role of Business Support Organizations in their provision of services and networking opportunities towards the other specific objectives
Please note: This call only has one lot. All enterprises and organizations will apply under the same lot and according to the same rules.

9. Budget and Duration Overall indicative amount is € 5,000,000 in total
Size of individual grant contracts: € 100,000 – € 250,000
EU Contribution per grant:
Minimum 50% - Maximum 85%
Duration:
12 – 36 months
Note: No time extension to be expected

10. Priorities
Innovative SMEs and clusters with high growth potential & BSOs looking to support them
Priority sectors:
Food and beverage industry (incl. Agro-processing)
Mechanical, electrical and electronic engineering industries
Healthcare and business services
Commercialisation of products and services
Please note: Quarries, Real Estate and Gambling sectors are excluded

11. Who can apply as lead applicant?
In order to be eligible, the lead applicant must:
Be a legal person, and
Fall under EU definition of SMEs, or
Be a non-governmental organisation, association, foundation, chamber, union, non-profit or for-profit cooperative
Be established in the northern part of Cyprus
Be directly responsible for the preparation and management of the action with their partners
Applicants whose legal representative is working in public administration and farm-holdings are not eligible.

12. Who can apply as co-applicant?
In order to be eligible, the co-applicant must:
Be a legal person, and
Fall under EU definition of SMEs, or
Be a non-governmental organisation, association, foundation, chamber, union, non-profit or for-profit cooperative
Be legally established in a Member State of the EU or in the territory of the EEA or on the territory of Candidate Countries for Accession to the EU

13. Types of actions (examples)
Establishing/strengthening innovative production systems,
Introducing environmental measures
Improving quality management systems
Upgrading businesses and product quality
Enhancing health & business services
Improving commercialization of products/services
Commercial exploitation of innovative investments

14. Ineligible actions
actions concerned only or mainly with individual sponsorships for participation in workshops, seminars, conferences and congresses;
one-off events like conferences, round tables, seminars and similar events (only as part of a wider action);
actions concerned only or mainly with individual scholarships for studies or training courses;
actions already totally or partially financed by another donor;
infrastructure projects & works, unless if linked to the installation of movable equipment purchased under the call.

15. Types of activities
Purchase of services and /or modern machinery and equipment, production lines, tools and measurement instruments for sophistication of business systems, processes, products and services; purchase of services (including certification and accreditation); testing, etc.
Financial support to third parties is possible:
May not be the main purpose of the action
Up to max. € per third party
Requires applicants to lay out details regarding objectives, types of eligible activities & legal persons, selection criteria, maximum amount to be given and criteria for determining exact amount
Particularly interesting for clusters & BSOs

16. Eligibility of costs Eligible direct costs = costs of the action
Staff
Travel and subsistence costs
Purchase or rental of equipment
Consumables
Sub contracting (of experts…)
Visibility costs
No VAT costs
Contingency reserve (5%)
Indirect costs (7%)
Please be aware of the procurement rules!

17. Payments Further Pre-financing: Balance:
Initial Pre-financing requires:
A procurement report
Signed contracts for supplies/services/employment for at least 60% of the total eligible cost
Evidence of full access to (i.e. completion of) the facilities
Further Pre-financing:
Narrative & financial report
Forecast budget for the following reporting period
Balance:
No bank guarantee required.

18. Ineligible costs Debt and interest Provisions for losses
Costs financed by another action receiving EU grant
Purchases of land or buildings
Cost of rent of land, buildings and offices & of works works, infrastructure and renovation of buildings where property rights of natural and legal persons have not been respected
Currency exchange losses
Credits to third parties
Contributions in kind
Salary costs of the personel of local administration

19. How to apply? Pador registration is obligatory! First Stage: Fill in
Application must be filled in English!
Pador registration is obligatory!
First Stage: Fill in
Concept note
Bona Fide declaration
Application online through PROSPECT by
8 June 2018 before 13:00 Cyprus time
Second Stage:
Full application form Budget & Business Plan Logical framework FIF and LEF Signed declaration

20. Evaluation procedure: RESTRICTED CALL
Administrative checks (see checklist Section 2.3)
Concept note evaluation (relevance)
Relevance and design
Preselection of the most relevant projects (300% of budget)
Full application evaluation
Financial and operational capacity
Effectiveness and feasibility
Sustainability
Budget and cost-effectiveness
Eligibility checks
Contract award and preparation

21. Questions & Information
For any questions
More information on these sessions: , , ,

22. Deadlines 8 June 2018 at 13:00 Cyprus time
Please do not wait for the last day to register in PADOR and to submit your applications
The deadline for asking questions is
18 May 2018
We will publish Q&A by 28 May 2018
The deadline to submit applications is on
8 June 2018 at 13:00 Cyprus time

23. Next steps: Concept Note workshops 07-08 May (Nicosia, EUPSO)
10-11 May (Famagusta)
15-16 May (Morphou)
Contents
Logical Framework Approach
Instructions for drafting the Application Form
Instructions for drafting the Budget
Instructions for drafting the Business Plan
Evaluation procedure – how scores will be given
Pador registration in detail
Q+A
Updated information to be found online

24. Good Luck!