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Grants & Incentives Eastern Europe 2009


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Grants & Incentives Eastern Europe 2009

  1. 1. CONNECTING PEOPLE AND ORGANIZATIONS TO REALISE THEIR POTENTIAL Director Financial Incentives Ing. Joost Holleman MBA t. +31-20-6763993 e. Hudson Financial Incentives Eastern Europe grant programs
  2. 2. Content <ul><li>Hudson Financial Incentives </li></ul><ul><li>References & example European clients </li></ul><ul><li>European Scope & Focus </li></ul><ul><li>Organizing Grants </li></ul><ul><li>Grant Process Hudson approach </li></ul><ul><li>European grant outlines Eastern Europe </li></ul><ul><li>Specific Characteristics ESF and EFRD projects </li></ul>
  4. 4. (Y)OUR WORLD - WHERE WE DELIVER <ul><li>WORLDWIDE: </li></ul><ul><li>25 countries, 4 continents, 140 offices, $1.2 billion in revenue (‘07) </li></ul><ul><li>3,600 employees globally </li></ul><ul><li>Trading as Hudson since 2003 </li></ul><ul><li>Listed on NASDAQ (HHGP) </li></ul><ul><li>IN EUROPE: </li></ul><ul><li>18 countries, 45 offices, 47% of global revenues, 1,600 employees across Europe </li></ul><ul><li>1.5 million qualified professionals are in our database </li></ul><ul><li>7,300 permanent placements per year </li></ul><ul><li>2,000 contract professionals each day at client sites </li></ul>
  5. 5. Financial Incentives <ul><li>Grants </li></ul><ul><ul><li>Grant Scan (Global, European and national) </li></ul></ul><ul><ul><li>Grant Applications </li></ul></ul><ul><ul><li>Grant Administration </li></ul></ul><ul><ul><li>Accountancy Issues </li></ul></ul><ul><li>Foreign Incentive Scheme applications & Administration </li></ul><ul><li>Tax related grants/incentives </li></ul><ul><li>European Investment Bank loans </li></ul>
  6. 6. ing. Joost C. Holleman MBA <ul><li>Technical Engineering (Logistics) 1996 </li></ul><ul><li>MBA 2005 (University of Phoenix USA) </li></ul><ul><li>HUDSON (1997 – 2008) </li></ul><ul><ul><li>1997 – 2000 Manager Finance Betuweroute - East </li></ul></ul><ul><ul><li>2000 – > Controlling / Grants Coordinator ABNAMRO </li></ul></ul><ul><ul><li>2005 – > Director Financial Incentives </li></ul></ul><ul><li>Current active sectors </li></ul><ul><li>Retail </li></ul><ul><li>Banking & Insurance </li></ul><ul><li>Logistics </li></ul><ul><li>Automotive </li></ul><ul><li>Industry </li></ul>Head Office +31-20-6763993 Support +31-20-6763993 [email_address] [email_address]
  7. 7. Ma Monique van der Voort <ul><li>2005 Political Science </li></ul><ul><li>2005 VNO-NCW representative European Union in Brussels </li></ul><ul><li>2006 Policy officer European Commission in The Hague </li></ul><ul><li>2007 - > Consultant Hudson Financial Incentives </li></ul><ul><li>Currently active European projects in: </li></ul><ul><ul><li>Poland </li></ul></ul><ul><ul><li>Baltic States </li></ul></ul><ul><ul><li>Belgium </li></ul></ul><ul><ul><li>Czech Republic </li></ul></ul><ul><ul><li>Slovakia </li></ul></ul>Mobile +31-6-20606506 Head Office +31-20-6763993 [email_address]
  8. 8. Global & European References
  9. 9. 2008 example current European clients <ul><li>Ahold CZ (since 2006) Prognosis > 5 million Euro in grants </li></ul><ul><ul><li>Czech Republic, Slovakia </li></ul></ul><ul><li>ICA, Rimi Baltic (since 2007) Prognosis > 3 million Euro in grants </li></ul><ul><ul><li>Latvia, Lithuania, Estonia, </li></ul></ul><ul><li>HAVI Logistics (since 2008) Prognosis <1 million Euro in grants </li></ul><ul><ul><li>Latvia, Lithuania, Estonia, Czech Republic </li></ul></ul><ul><li>Fortis (since 2008) Prognosis > 5 million Euro in grants </li></ul><ul><ul><li>Netherlands </li></ul></ul><ul><li>ABNAMRO (since 2000) Prognosis > 5 million Euro in grants </li></ul><ul><ul><li>Rumania, Italy, Poland </li></ul></ul><ul><li>Hutchinson Whampoa, AS WATSON / Drogas (since 2008) Prognosis > 5 million Euro in grants </li></ul><ul><ul><li>The Netherlands, Europe starting up </li></ul></ul><ul><li>Danone (since 2008) Prognosis <1 million Euro in grants </li></ul><ul><ul><li>Latvia </li></ul></ul>
  10. 10. Scope & Focus Hudson <ul><li>Scope: </li></ul><ul><li>European Social Fund (ESF) </li></ul><ul><li>European Fund for Regional Development (EFRD) </li></ul><ul><li>Foreign Investment Schemes (FIS) </li></ul><ul><li>Agricultural programs (AP) </li></ul><ul><li>European Investment Bank (EIB) </li></ul><ul><li>Innovation (Eureka) </li></ul><ul><li>Focus: </li></ul><ul><li>Training & Development </li></ul><ul><li>Investments </li></ul><ul><li>Logistics </li></ul><ul><li>Product Development </li></ul><ul><li>Innovation </li></ul>
  11. 11. Hudson general grant approach Think global, act local <ul><li>Combining cross country knowledge of the client’s organizational structure with the funding specifications per country: </li></ul><ul><li>Central approach for Central European countries </li></ul><ul><ul><li>Large knowledge database of European regulations (i.e. market conformity issues, eligible costs) </li></ul></ul><ul><ul><li>Covering national programs/ call for proposals ESF/EFRD </li></ul></ul><ul><ul><li>Flexibility in bridging client’s activities and funding programs </li></ul></ul><ul><ul><li>Create more efficiency with setting up grant applications per country and project administration using the same templates and procedures </li></ul></ul><ul><ul><li>Increase Grant Potential by using repeatable solutions </li></ul></ul><ul><ul><li>Project according to IFRS and SOX procedures </li></ul></ul><ul><li>Working with local consultants </li></ul><ul><ul><li>Familiar with the specific regulations, criteria, latest funding news </li></ul></ul><ul><ul><li>Applications made in the local language </li></ul></ul><ul><ul><li>Local consultants are instructed and monitored by European project manager </li></ul></ul><ul><ul><li>75% of local consultants have worked for Government Agencies which were involved in Grant Programs from the Pre accession funds </li></ul></ul>
  12. 12. Organizing Grants (proposal) <ul><li>European coordination </li></ul><ul><ul><li>Monitoring grant organization </li></ul></ul><ul><ul><li>Setting up repeatable solutions for various countries </li></ul></ul><ul><ul><li>Quality control </li></ul></ul><ul><ul><li>European Overview </li></ul></ul><ul><li>Steering committee </li></ul><ul><ul><li>Management level </li></ul></ul><ul><ul><li>2-4 yearly meetings </li></ul></ul><ul><ul><li>Discuss progress / monitoring grant process </li></ul></ul><ul><ul><li>Go / No go decisions </li></ul></ul><ul><li>Internal Coordinator </li></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><li>Organizing / operational activities </li></ul></ul><ul><li>External partner country level </li></ul><ul><ul><li>Making scans, business cases, applications </li></ul></ul><ul><ul><li>Setting up grant administration </li></ul></ul><ul><ul><li>Final Declaration </li></ul></ul><ul><ul><li>Specialized activities (i.e. market conformity) </li></ul></ul>
  13. 13. <ul><li>Quick scan phase </li></ul><ul><li>Business case phase </li></ul><ul><li>Grant Application </li></ul><ul><li>Grant Administration </li></ul><ul><li>Final Declaration </li></ul>
  14. 14. Quick Scan Phase (QS) <ul><li>Bridging (connecting) project with possible grant programs </li></ul><ul><li>Getting information (Filling QS Template) to see if project meets main requirements </li></ul><ul><li>Result (quick scan template): </li></ul><ul><ul><li>Maximum grant opportunity in Euro’s </li></ul></ul><ul><ul><li>Applicable grant programs </li></ul></ul><ul><ul><li>Project could or could not be subsidized </li></ul></ul><ul><ul><li>Timing when to make application </li></ul></ul><ul><li>Quick scan template which has to be approved by internal coordinator to go to next phase </li></ul>
  15. 15. Business Case Phase <ul><li>Getting additional information to examine if project / activity meets all requirements from grant program </li></ul><ul><li>Result (Business Case): </li></ul><ul><ul><li>Business case (PowerPoint) </li></ul></ul><ul><ul><li>Maximum grant opportunity in Euro’s </li></ul></ul><ul><ul><li>Which grant programs are applicable </li></ul></ul><ul><ul><li>Main requirements from grant programs </li></ul></ul><ul><ul><li>Risk analysis </li></ul></ul><ul><ul><li>Costs for making application </li></ul></ul><ul><li>Business Case has to be approved by Internal coordinator / Steering committee to go to next phase </li></ul>
  16. 16. Grant Application <ul><li>Getting all necessary information to fill in grant application format </li></ul><ul><li>Result (Grant Application): </li></ul><ul><ul><ul><li>Project planning </li></ul></ul></ul><ul><ul><ul><li>Investment plan </li></ul></ul></ul><ul><ul><ul><li>Project details </li></ul></ul></ul><ul><li>Application has to be approved by Steering Committee / Internal Coordinator </li></ul>
  17. 17. Project Administration / Final Declaration <ul><li>Phase 4: Project Administration </li></ul><ul><ul><li>Setup project administration </li></ul></ul><ul><ul><li>Gathering necessary documents for project administration </li></ul></ul><ul><ul><li>Making EU grant Administration </li></ul></ul><ul><ul><li>Talks with government </li></ul></ul><ul><ul><li>Result: Administration according to criteria </li></ul></ul><ul><li>Phase 5: Final Declaration </li></ul><ul><ul><li>Making final declaration </li></ul></ul><ul><ul><li>Talks with government about final declaration </li></ul></ul><ul><ul><li>Result: Total grant taken into P&L </li></ul></ul>
  18. 18. European outlines European outlines (2007 – 2013)
  19. 19. European Grant Themes European outlines (2007 – 2013) <ul><li>Agriculture </li></ul><ul><li>Audiovisual and Media </li></ul><ul><li>Communication </li></ul><ul><li>Competition </li></ul><ul><li>Conference interpretation </li></ul><ul><li>Consumers </li></ul><ul><li>Culture </li></ul><ul><li>Development </li></ul><ul><li>Economic and monetary affairs </li></ul><ul><li>Education, training and youth </li></ul><ul><li>Employment and social affairs </li></ul><ul><li>Energy </li></ul><ul><li>Enlargement </li></ul><ul><li>Enterprise </li></ul><ul><li>Environment </li></ul><ul><li>External Relations </li></ul><ul><li>External Aid </li></ul><ul><li>External Trade </li></ul><ul><li>Fisheries </li></ul><ul><li>Fighting fraud </li></ul><ul><li>Freedom, Security and Justice </li></ul><ul><li>Humanitarian Aid </li></ul><ul><li>Human Rights </li></ul><ul><li>Information society </li></ul><ul><li>Public Health </li></ul><ul><li>Regional Policy </li></ul><ul><li>Research and Innovation </li></ul><ul><li>Sport </li></ul><ul><li>Statistics </li></ul><ul><li>Transport </li></ul>
  20. 20. Funding ESF and EFRD European outlines (2007 – 2013)
  21. 21. Funding opportunities Central Europe <ul><li>European Fund for Regional Development / INTERREG </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>New Production facilities / logistics </li></ul></ul><ul><ul><li>Product development </li></ul></ul><ul><ul><li>IT investments </li></ul></ul><ul><ul><li>Energy savings </li></ul></ul><ul><ul><li>More and better jobs </li></ul></ul><ul><ul><li>Grant % depends on eligible costs </li></ul></ul><ul><li>European Social Fund </li></ul><ul><ul><li>Education & Training </li></ul></ul><ul><ul><li>Outplacement </li></ul></ul><ul><ul><li>Globalization fund </li></ul></ul><ul><ul><li>Grant +/- 50% </li></ul></ul><ul><li>Eureka program </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Inbound logistics </li></ul></ul><ul><ul><li>ICT development </li></ul></ul><ul><ul><li>Product development </li></ul></ul>EU Policy NSRF National Strategic Reference Framework OP Operational Programs Grant law
  23. 23. European Social Fund (ESF)
  24. 24. ESF Priority Axis Central Europe 1. Education and training in support for growth and development of knowledge based society 3. Increasing adaptability of workers and enterprises 4. Modernising the Public Employment Service 6. Promoting social inclusion 5. Promoting active employment measures 2. Linking life long learning and labour market
  25. 25. Needed for Application ESF for Training & Development grant <ul><li>Training Costs (external and internal trainings) </li></ul><ul><li>Course descriptions </li></ul><ul><li>12 month plan for educational activities </li></ul><ul><li>HR data </li></ul>Mandatory Administration for ESF <ul><li>ESF attendance sheet </li></ul><ul><li>Time registration </li></ul><ul><li>Market conformity </li></ul>
  26. 26. Characteristics ESF Administration <ul><li>Market Conformity </li></ul><ul><ul><li>Contract database </li></ul></ul><ul><ul><li>“ Lowest” bidder or best quality </li></ul></ul><ul><ul><li>Price check (costs according to market conformity documents) </li></ul></ul><ul><ul><li>Maximizing/Minimizing Costs </li></ul></ul><ul><li>Civil effect </li></ul><ul><ul><li>Life long learning effect </li></ul></ul><ul><li>Grant Administration </li></ul><ul><ul><li>According to administrative ruling (HEA or ELAS) </li></ul></ul><ul><li>Communication rules </li></ul><ul><ul><li>EU communication </li></ul></ul><ul><li>Other issues </li></ul><ul><ul><li>Payback scheme employees </li></ul></ul><ul><ul><li>Costs inside project period </li></ul></ul><ul><ul><li>Indirect costs </li></ul></ul><ul><ul><li>Development costs (making development costs eligible) </li></ul></ul><ul><ul><li>Communication with Ministry </li></ul></ul>
  27. 27. Example of ESF grant administration
  28. 28. European Fund for Regional Development (EFRD)
  29. 29. EFRD Priority Axis Central Europe 1. An innovative and eco-efficient productive system 2. Research, technological development and innovation for competitiveness 3. Information and Communication Technologies for private and public sectors 5. attractive destination for sustainable tourism and businesses 4. Increased energy efficiency & sustainable development of the energy system 1. Improvement of regional and local transport infrastructure 2. Improvement of social infrastructure 3. Strengthening the regional and local business environment 5. Support of sustainable urban development 4. Sustainable development of regional and local tourism Competitiveness Regional Operational Programs
  30. 30. Characteristics EFRD Projects <ul><li>Call for proposals are different in each country, but topics are more or less the same (new technology, job creation, production investments, IT, energy reduction, R&D) </li></ul><ul><li>Each call has it’s specific criteria and these criteria can change each year depending on the available budget </li></ul><ul><li>Project application level differs between simple form and complex business plan depending on the investment amount </li></ul><ul><li>Project administration is rather straight forward compared to other EU funds, but project criteria can sometimes be hard to match with companies activities and timing </li></ul><ul><li>Funding support is +/- 30% of the investment (depending on eligible costs) </li></ul>
  31. 31. Example of grant opportunities
  32. 32. The Seventh Framework Programme for research and technological development (FP7)
  33. 33. Understanding FP7 <ul><li>The Seventh Framework Programme (FP7) bundles all research-related EU initiatives together under a common roof playing a crucial role in reaching the goals of growth, competitiveness and employment; along with a new Competitiveness and Innovation Framework Programme (CIP), Education and Training programmes, and Structural and Cohesion Funds for regional convergence and competitiveness. It is also a key pillar for the European Research Area (ERA). </li></ul>
  34. 34. FP7 Budget, 50,5 Billion Euro (ex Euratom) FP7 consists of four programs: Division of budget:
  35. 35. FP7 – SP Cooperation – 10 themes <ul><li>(million Euro) </li></ul><ul><li>Health 6.100 </li></ul><ul><li>Food, agriculture and fisheries, and biotechnology 9.135 </li></ul><ul><li>Information and communication technologies 9.050 </li></ul><ul><li>Nanotechnologies, materials and production 3.475 </li></ul><ul><li>Energy 2.350 </li></ul><ul><li>Environment 1.890 </li></ul><ul><li>Transport 4.160 </li></ul><ul><li>Socioeconomic research 623 </li></ul><ul><li>Space 1.430 </li></ul><ul><li>Security 1.400 </li></ul><ul><li>Total 32.413 </li></ul>
  36. 36. FP7 – Type of projects <ul><li>Project Types describe the nature of funding open to participants in FP7. </li></ul><ul><li>Collaborative Research Projects : Research projects carried out by consortia from different countries, aiming at the development of new knowledge, technology, products or common resources for research. Size and scope can vary. </li></ul><ul><li>Networks of Excellence : The main aim of a NoE is to integrate research at a European level. Thus, participants are paid on the basis of degree of integration achieved and the number of researchers actively participating in the network rather than research outputs. </li></ul><ul><li>Coordination and Support Actions : SA fund studies or other measures in support of the relevant Work Programme. Coordination Actions (CA) fund networking research that previously was primarily carried out at national level. </li></ul><ul><li>Individual projects : Projects carried out by individual research teams (mainly used in the ‘IDEAS’ programme). </li></ul><ul><li>Marie Curie Actions : Funding of research training and mobility of researchers via both individual as ‘host driven’ actions. </li></ul><ul><li>SME specific actions </li></ul>
  37. 37. FP7 – max. reimbursement rates <ul><li>Reimbursement depends on the type of action and/or activity, and the type of the beneficiary: </li></ul><ul><li>Research and technological development : </li></ul><ul><ul><ul><li>up to 50% of eligible costs, </li></ul></ul></ul><ul><ul><ul><li>or up to 75% for: - Non profit public bodies - Secondary and higher education establishments - Research organisations - SMEs - Security related research, for highly reliable capabilities with impact on security of European citizens and targeted to a limited number of public users </li></ul></ul></ul><ul><li>Demonstration : up to 50% </li></ul><ul><li>Other including management: up to 100% </li></ul><ul><li>Actions that will be reimbursed up to 100%: </li></ul><ul><li>Frontier research (IDEAS) </li></ul><ul><li>Coordination and Support Actions (CSA) </li></ul><ul><li>Training and career development of researchers (PEOPLE) </li></ul>
  38. 38. Eureka Program (for R&D and innovation)
  39. 39. Criteria for the Eureka Program <ul><li>International Innovation Projects, a pan-European </li></ul><ul><li>network for market-oriented, industrial R&D </li></ul><ul><li>Goal of EUREKA: </li></ul><ul><li>to raise the productivity and competitiveness of European industry and national economies through its ‘bottom-up’ approach to technological innovation. </li></ul><ul><li>The EUREKA Umbrellas are thematic networks which focus on a specific technology area or business sector. </li></ul>
  40. 41. Czech Republic <ul><li>EU grant structure and funding programs </li></ul>
  41. 42. Example Czech Budget 2007 - 2013 Eligible regions European outlines (2007 – 2013)
  42. 43. Czech Republic Grant Budget 2007-2013
  43. 44. Example program overview Czech Republic 2009
  44. 45. Poland <ul><li>EU grant structure and funding programs </li></ul>
  45. 46. Poland Grant Budget 2007 - 2013 European outlines (2007 – 2013)
  46. 47. <ul><li> S upport for complex development of </li></ul><ul><li>investment plots </li></ul><ul><li> Support for Industrial Parks </li></ul><ul><li>and cent re s for technological development etc. </li></ul><ul><li>Support for investor service centres </li></ul><ul><li>In vestmen t s proje c ts up to 2,3 mln EUR </li></ul><ul><li>- 9 regions </li></ul><ul><li>- 9 regions </li></ul><ul><li> - 1 region </li></ul><ul><li> - 16 regions </li></ul><ul><li>Prepared by the local self- </li></ul><ul><li>governments </li></ul><ul><li>Concern the needs of the </li></ul><ul><li>region s </li></ul>Support on basis of Regional Operational Programmes                                 Warmińsko -Mazurskie Podlaskie Mazowieckie Lubelskie Podkarpackie Małopolskie Śląskie Świętokrzyskie  Łódzkie Pomorskie* Zachodniopomorskie Kujawsko-pomorskie* Wielkopolskie Lubuskie Dolnośląskie  Opolskie 
  47. 48. Strategic objectives Operational Program Human Capital (ESF) <ul><li>1. Improving the level of professional activity and ability to employing persons who are unemployed or professionally passive. </li></ul><ul><li>2. Reducing areas of social exclusion. </li></ul><ul><li>3. Enhancing the adaptability of employees and enterprises to changes that take place in the economy. </li></ul><ul><li>4. Propagation of education in the society on each education level with concurrent improvement of the quality of educational services and their stronger correlation with needs of knowledge based economy. </li></ul><ul><li>5. Enhancing the potential of public administration as regards development of law and policies and providing high quality services, and strengthening partnership mechanisms. </li></ul><ul><li>6. Enhancing territorial cohesion. </li></ul>
  48. 49. Training & Development Financial Plan Poland Grant percentage on average 50% of total costs
  49. 50. Criteria Call for proposals ESF Poland <ul><li>Sub-measure 2.1.1 consist of three kinds of projects: </li></ul><ul><li>Transregional projects: closed training (general and specialized) </li></ul><ul><li>- trainings in at least two provinces </li></ul><ul><li>- minimum project value: 0,1 mln euro (400.000 PLN) </li></ul><ul><li>- maximum project value: 4,6 mln euro (15.000.000 PLN) </li></ul><ul><li>- trainings prepared on the basis of the company ’s individual development strateg ies </li></ul><ul><li>Nationwide projects: open trainings (general and specialized) </li></ul><ul><li>- trainings for employees from at least 5 different provinces </li></ul><ul><li>- trainings are given in at least 5 provinces </li></ul><ul><li>- minimum project value: 0,1 mln euro (400.000 PLN) </li></ul><ul><li>- maximum project value: 6,2 mln euro (20.000.000 PLN) </li></ul><ul><li>Postgraduate studies: - minimum project value: 0,1 mln euro (400.000 PLN) </li></ul><ul><li> - maximum project value: 6,2 mln euro (20.000.000 PLN) </li></ul><ul><li>Grant percentage for large companies varies between 35% and 60 % of the total </li></ul><ul><li>project costs </li></ul>
  50. 51. Hungary <ul><li>EU grant structure and funding programs </li></ul>
  51. 52. Hungary Grant budget 2007-2013
  52. 53. Slovakia <ul><li>EU grant structure and funding programs </li></ul>
  53. 54. Slovakia Grant Budget 2007-2013