1. Managing Authority of EU Funds – Ministry of Finance 1 Methodology of selection of project applications for EU funds including preparation of appraisal criteria Linda Barbara Deputy Head of EU Funds Legal Division, Department of EU Funds, Ministry of Finance 6 February 2008, Riga

2. METHODOLOGY  Methodology of selection of project applications for EU Structural Funds and Cohesion Fund including preparation of appraisal criteria was accepted for information at the interim Monitoring Committee on 10 November 2006  Currently, the methodology has been updated according to the Law On Management of European Union Structural Funds and the Cohesion Fund and other legal acts as well as conclusions made during the preparation of Cabinet regulations on implementation of activities. Managing Authority of EU Funds – Ministry of Finance 2

3. 3 Contents of Methodology 1.Selection of project applications for European Union Structural Funds and the Cohesion Fund (hereafter – EU funds ) 2.Implementation rules for activities indicated in complements to operational programmes 3.Structure and preparation of project application appraisal criteria 4.Procedure for announcing calls for project applications, submission of applications, appraisal 5.Adoption of decisions on a project application, and contesting and appealing of decisions 6.Guidelines on performing cost-benefit analysis

4. Managing Authority of EU Funds – Ministry of Finance 4 What’s New in Methodology  More information on types of criteria for appraising project applications (quality, eligibility, administrative criteria)  Adjusted description of the procedure for announcing calls for project applications, submission of applications, appraisal  Guidelines on performing cost-benefit analysis added to the methodology The Managing Authority has already provided this information in preparation for the 7-8 November 2007 Monitoring Committee meeting and during the meeting.

5. Appraisal of project applications for EU funds  Appraisal does not differ for both types of selection of project applications for EU funds – open project selection procedure / restricted project selection procedure.  Three types of project appraisal criteria have been established: 1. Quality criteria 2. Eligibility criteria 3. Administrative criteria Managing Authority of EU Funds – Ministry of Finance 5

6. Criteria for appraisal of project applications  Appraisal of a quality criterion is quantified and the criterion is rated as a score in a scale of points (quality criteria for horizontal priorities) – how effectively the project allows to achieve the objective of the activity  Eligibility criteria are evaluated with “Yes” or “No” - whether the implementation of the project should be permitted by its nature and project applicant meets the set requirements for qualifying for funding within the framework of the particular activity  Administrative criteria are evaluated with “Yes” or “No” - whether the format of the project application is according to the requirements set forth. Managing Authority of EU Funds – Ministry of Finance 6

7. Appraisal of project applications for EU funds  Eligibility criteria and administrative criteria are divided into two categories: 1.Criteria in the case of negative evaluation of which the application is rejected. 2.Criteria for which a project can be approved on condition that the applicant will ensure full compliance with the criterion according to prescribed time limits and procedures.  Each criterion shall clearly fall into one of these categories – this shall be determined in activity implementation rules. Managing Authority of EU Funds – Ministry of Finance 7

8. Conditional approval of project applications for EU funds  Activity rules contain criteria for which a decision can be made to issue a conditional approval a project  Conditions to be included in the decision on approval of the project application (e.g., adjustments to financial table, implementation time table, correcting of inconsistent information in the application) Managing Authority of EU Funds – Ministry of Finance 8

9. Approval of project applications for EU funds on condition  Decision on approving a project on condition  The beneficiary within the specified time limits performs the actions required by the decision on conditional approval  if complies – opinion is given and agreement or contract is signed  if not – opinion is given but no agreement or contract is signed Managing Authority of EU Funds – Ministry of Finance 9

10. Thank you! Managing Authority of EU Funds – Ministry of Finance 10