1. Which kind of actors are mainly addressed by the programme? 
2. Can private partners participate in the programme? 
3. What is a partner and how many partners have to be involved in the project? 
4. What is the principle of territoriality? 
5. Can the Project Partnership include Partners not coming from the CADSES programme area eligible for ERDF? 
6. What is the principle of additionality? 
7. What is the longest duration allowed for a project? 
8. Which projects will be selected? 
9. What is the “Lead Partner Principle”? 

10.  Will there be an advance payments available in INTERREG III B CADSES?  

11.  What is the n+2 rule? Are projects affected by it? 
 

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 1.    Which kind of actors are mainly addressed by the programme?

The programme addresses primarily actors of spatial development policies within the programme area. They are coming mainly from three policy areas with different forms of intervention in changes of spatial structure:

• spatial planning;
• regional (economic) policy
• spatially relevant sectoral and functional policies.

At the project level different groups of public and private actors should be addressed:
spatial development policy implementing institutions and "developers" with a transnational view;
national, regional and local administrations implementing policies in the fields of regional development, comprehensive urban and rural development policies, traffic and transport, technology and innovation, nature protection and environmental management, risk prevention;
semi-public institutions like regional development associations and promoters, innovation and development agencies;
private institutions such as economic and social partners, chambers of commerce, regional councils as well as private companies (e.g. infrastructure providing enterprises) and NGOs in the relevant fields;
international organisations in relevant fields of action.
As regards the legal status of the organisations eligible for funding under the external fundings, these must be non-profit legal persons established by public or private law for the purposes of public interest or specific purpose of meeting needs of general interest. Please read more on this topic in the paragraph C.9 of the Applicants’ manual for the 4th call.

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 2.    Can private partners participate in the programme?

In general, private partners can participate within projects as project partners and lead partners. Private partners of Member States are eligible for ERDF-funding but they have to take care that it is not in contradiction to the rules of competition law. Please note that ERDF co-financing rate has also to fulfil the requirements of Art. 12 and 29 Reg. (CE) No 1260/1999 and those foreseen by the following regulations:
Commission regulation no 68/2001 (of 12 January 2001) on the application of articles 87 and 88 of the EC Treaty to training aid;
Commission Regulation no 69/2001 (of 12 January 2001) on the application of articles 87 and 88 of the EC Treaty to the deminimis aid;
Commission Regulation no 70/2001 (of 12 January 2001) on the application of articles 87 and 88 of the EC Treaty to State aid to small and medium sized enterprises (OJ L10 of 13 January 2001).
If the Lead Partner is under private law, it has “to provide sufficient guarantees equal to the amount of ERDF funds they are claiming for the whole project” (see paragraph C.7 of the Applicants’ Manual for the fourth call). The partners applying for external funds should clarify the issue with the respective contracting authority.

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 3.   What is a partner and how many partners have to be involved in the project?

In CADSES there are only two partner categories:
a) Financing partners and
b) Non-financing partners.

All partners in the project (financing and non-financing partners) are full partners in the project and have to fulfil all obligations requested by the programme (e.g. reporting etc.). Other categories e.g. like “observers” are not existing in the programme.
Additionally, for the programme there are no important and non-important partners. Every partner in the project will be deemed as important to achieve the goals and objectives of the project. These user-selected/functional descriptions do not – in any case- touch the formal obligations of these financing or non-financing project partners.
Each project must involve at least two financing project partners from two different partner states. Projects including more than two partner states, in particular those with project partners from Non-member states, will be given priority in the project selection. What is the "appropriate" number of partners might differ very much according to the subject and objectives of projects.
The JTS recommends careful consideration of the partner structure envisaged. Especially partners participating in a project without a financial budget (non-financing partners) might increase the administrative complexity for the LP to a certain extent as opposed to the benefits of participating.

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 4.   What is the principle of territoriality?

Structural funds regulations rule out the use of Structural Funds assistance outside the territory of the European Union. This means that a territorial principle applies, excluding in general the possibility for Non Member States to have access to ERDF funds. As a rule, only projects or those parts of projects located physically in CADSES ERDF area may be funded by ERDF Funds
Nevertheless there are some exceptions and/or smoother interpretation of this rule.
The Commission in its “Progress Report on the communication from the Commission on the impact of enlargement on regions bordering candidate countries – Community Action for border regions” COM (2002)660 of 29.11.2002 has provided on this topic the following interpretation, stating that the following expenses are eligible:

• Travel and subsistence expenses incurred by partners or participants from third countries outside the EU can be eligible when the meeting or seminar takes place in the EU and is part of an approved project;
• Travel and subsistence expenses by partners and participants from EU member states on part of projects that take place in a third country and are vital for the success of the project as a whole are eligible for ERDF assistance;
• In accordance with EC public procurement law, services or equipment used for implementing an INTERREG project in the EU can also come from the “partner country” or other third countries in question, according to general national, EU or international legislation on public procurement;
• Some of the expenditures by participants from EU Member States on part of projects that take place in a third country and are vital for the success of the project as a whole are eligible for ERDF assistance (travel and subsistence costs, fees for attending seminars, meetings, work placements or language courses, etc.)

See also paragraph C.6 of the Applicants’ manual for the fourth call.

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 5.   Can the Project Partnership include Partners not coming from the CADSES programme area eligible for ERDF?

As a general rule, only project partners located inside the eligible CADSES programme area can be included into a CADSES project.
There may be an exception to the general rule as regards location of partners outside the area, provided the results of a project are for the benefit of the eligible area.This is the case of the public bodies which are competent in their scope of action for certain parts of the eligible area but which are located outside the area – for instance ministries, federal agencies, government departments, etc. In these cases it could be accepted that such public bodies be partners in the project, and therefore the costs they would incur would be eligible for ERDF.
In all other cases, expenditure incurred by external partners cannot be considered as eligible. External bodies may however participate as sub-contractors to implement certain actions or activities within a project.
Private organisations or institutes located outside the area may only be eligible partners where they have branches located in the area, which would act as partners. Therefore universities, foundations, etc. cannot be eligible as project partners unless they are located in the co-operation area.

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 6.   What is the principle of additionality?

In order to achieve a genuine economic impact, the appropriations of the funds may not replace public or other equivalent structural expenditure by the Member State“ (art. 11, council regulation (EC) 1260/99).
This principle states that assistance from the ERDF is only an additional resource to the resources of national governments for the financing of a given project.
The presence of ERDF must guarantee additional activities (and not merely substitute national funds) therefore lead to an added value that otherwise without the ERDF would not have been achieved.
This means in general that the project must meet one of these criteria: the project would not proceed without support from ERDF, or the project will be allowed to proceed with a shorter timescale, or the project will proceed at a higher level of quality. The applicants must prove evidence that one of these criteria is met.
From the assurance of a higher degree of quality comes also another principle, regarding the value for money spent in the project: “quality” must be taken into account not only as regards the results of the project, but also as regards the efficient use of the goods and services purchased for the project. These too must respond to criteria of efficiency in terms of prices paid, which shall be in line with the market average.

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 7.   What is the longest duration allowed for a project?

For the fourth call a limited duration is foreseen, since the projects must close all their activities and their bookkeeping in time enough to allow the managing bodies to close the programme. Therefore, considering that INTERREG IIIB CADSES neighbourhood will close by 31st December 2008, the projects must close their activities by 31 August 2008. 

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 8.    Which projects will be selected?

Priority will be given to projects requiring transnational actions and delivering added value through joint solutions. Projects should evidently contribute to a harmonious, balanced and sustainable development and to ecological, economic and social cohesion of the CADSES-region. CADSES is a wide space that offer multiple possibilities of cooperation in the field of spatial planning, following a multi-sectoral and territorial approach, and respect EU policies. Preference will be given to projects focusing on of actions going beyond networking and exchange of experience. Activities preparing investment will gain support above research or purely methodological studies.
The CADSES Programme (CIP) includes more detailed information on project selection and related criteria.
Already in the preparation phase of the project the Lead Partner is advised to get in touch with the respective national co-ordinator in order to communicate the strategies underlying the project idea, and to make sure that this idea matches the needs and the priorities of National Policy makers.

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 9. What is the “Lead Partner Principle”?

Each project has to appoint a Financial Lead Partner for ERDF, which is at the same time the Overall Lead Partner of the project. The ERDF Lead Partner submits the Application Form, is responsible for the division of tasks among the partners involved in the project (a Joint Convention is recommended to govern this) and for the co-ordination of activities among all the involved partners. Should the project be selected for funding, this partner will sign a subsidy contract with the MA, thus undertaking the full financial and legal responsibility for the ERDF part of the project.
If the project combines ERDF and external funding, the project has to appoint financial Lead Partner(s) for external funding (ext.LP) among the project partner(s) from the non-Member State(s) concerned. Should the project be selected for funding, this partner will sign a Grant Contract with the relevant Contracting Authority. A separate external Grant Contract will be required for each involved Contracting Authority
Read more on the topic under the paragraph C.2 of the Applicants’ Manual for the 4th call.

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 10.   Will there be any advance payments available in INTERREG III B CADSES?

No advance payment can be provided in the INTERREG III B CADSES Programme out of ERDF funds. ERDF payments are carried out solely as co-financing to the reimbursement of expenses actually paid out. Nevertheless, National Authorities can provide advance payments out of the National co-financing shares. Up-to-date information on this topic can be provided by your local Cadses Contact Point.
Partners applying for external funding may receive advance payments following the regulations set for the different financing instruments. More information is to be obtained from the respective CCPs or from the relevant contracting Authority.

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11. What is the n+2 rule? Are projects affected by it?

The ERDF financial allocation to the CADSES programme is stated in the Programme Complement. This overall amount is committed on an annual basis throughout the financing period, in the case of CADSES for each year from 2001 to 2006. There are anyway limitations concerning the use of the funds allocated and committed, grouped under the so-called “n+2 rule”.
Article 31.2 of Regulation (EC) 1260/99 states that “The Commission shall automatically decommit any part of a commitment which has not been settled by the payment on account or for which it has not received an acceptable payment application, as defined in Article 32(3), by the end of the second year following the year of commitment (…)”
This means that the funds committed to one year “n” cannot be used to reimburse project expenses at any time during the programme’s lifetime, but they can cover only the cost claims received by the Managing Authority at the latest within the 31st of December of the second year following the year in which the funds were committed (year “n+2”).
For example, funds allocated to 2001 must be paid out or at least backed by corresponding valid cost claims received from the projects at the latest within Dec. 31st, 2003. The amount not claimed will be automatically decommitted, and will be lost. The whole budget of the programme will be reduced accordingly.
It may happen that the decommitted amounts during the lifetime of the programme lead to a reduction of the overall financial budget of the programme. In this case it would become necessary to cut the subsidies already granted to projects.
If this happens, anyway, not all the projects will suffer from this cut, or at least not all in the same proportion, but according to their share in the final amount decommitted.