Standard Summary Project Fiche -...

CZ00.10.03 20/06/00

CZ 00.10.03

Standard Summary Project Fiche

1. Basic InformationDesiree Number: CZ00 –10-03Title: Investment in Target Region NUTS II Ostrava Sector: Economic and Social CohesionLocation: NUTS II Ostrava Region

2. ObjectivesWider ObjectivesTo promote economic and social cohesion, in accordance with Resolution 714/99, in particularfocused on the regeneration of an Objective 1/NUTS II region;To ensure that suitable structures for the operation of SF/CF (e.g. programming,/planning,monitoring, evaluation, financial control, SOPs/ROPs etc.) are in place (tried and tested) by the dateof accession.

Immediate ObjectivesDeliver co-financing Investment for the promotion of ESC in pilot Objective 1/NUTS II region bystrengthening/diversifying the economy of the region and ensuring a high and stable employmentlevel;Test and enhance/adapt structures, measures and delivery mechanisms that have been developedover recent years for the implementation of ESC on the basis of SF methods/principles;Strengthen planning and absorption capacities for regional development by promoting best practiceinvestment projects and by validating the regional development expertise learned;Gain experience with co-ordination of sectoral and regional programmes and priorities and transferthe experience thus gained to other NUTS II regions.

Accession Partnership and NPAA PriorityShort- and medium-term priorities for the industrial sector include the implementation of thepromotion of intangible factors of competitiveness, ending the decline in industrial production,stabilisation of the business environment and initiation of long-term business growth trends inmanufacturing. Apart from further developing programming documentation, which remain AP andNPAA priorities, other medium-term priorities are to further develop the ESC and Employment &Social Affairs national strategies, for later participation in the European Employment Strategy,building on the Employment Policy Review (Joint Assessment Paper); improve administrativestructures, ensure budgetary appraisal and evaluation procedures are in line with SF/CF standards;reinforce staff & subsequent training at central and regional levels; strengthen inter-ministerialcompetencies to implement structural policy and complete the legal framework through theoperation of the Support to Regional Development and VÚSC (kraje) acts, and related legislation.

A further medium-term priority for ESC in the NPAA includes implementation of pilot projects andprojects related to the preparations for the full launch of the Structural Funds. The aim is thecontinuation of pilot programmes and the extension of EU assistance to cover other areas of sectoraland regional support that will simulate the functioning of ERDF and ESF in particular (as thesereceive no similar support as SAPARD and ISPA).Contribution to National Development PlanA draft of sectoral and regional NDP priority axes and priorities for 2000 – 2006 was noted in07/1999 by government Resolution 714/1999. The draft NDP has been submitted to Brussels. Itcovers 6 SOPs and 8 ROPs. The NDP now requires adjustment to include an ex ante evaluation,strategic environmental assessment and updating to take account of EC comments. The target forthe new fully completed version is now 30/09/2000.

CZ00.10.03 20/06/00

CZ 00.10.03

The NDP defines the following strategic objective for 2000–2006:to raise the level of GDP in the Czech Republic by 2006 to a level in the vicinity of 75% of theaverage GDP in EU member states, to prevent a deepening of regional disparities, and to markedlyimprove the environmental situation. In accomplishing this strategic objective, the Czech Republicwill conduct pro-active regional policies and will concentrate its efforts on improving theeconomy’s technological level and competitiveness, and improving the skills and flexibility of itsworkforce.Phare 2000 - ESC part contributes to activities aimed at achieving this objective throughimplementation of limited number of investment projects within the three specific spheres ofsupport (productive investment, human resource development and business related infrastructure)co-financed from EU and Czech sources. The additionality principle is respected in designing thewhole project (i.e. below outlined Funds/Grant Schemes and on proposed individual sub-project -STP Ostrava - as well). The EU support will definitely not result in reduction of the amount of theCzech resources allocated for support of the region.

The Fund for promotion of intangible factors of competitiveness in SMEs proposed as supportto the productive sector addresses 2 measures (out of 5) of one of 6 sub-programmes of a pilotsectoral operational programme “Competitiveness” called Sub-programme for promotion ointangible factors of competitiveness in SMEs:Measure 1: Support to research and development, business environment development andintroduction of new technologies in SMEsMeasure 2: Support to the introduction of certified systems of quality control in SME inmanufacturing industry

The Science-Technologic Park sub-project addresses two measures of Priority 1-BusinessEnvironment and Business Infrastructure of the pilot ROP Ostravsko (see Section 3.4. –Activities/Inputs):Measure 1.3: The development of small and medium-sized enterprises,Measure 1.4: The implementation of new technologies,

The Grant Scheme for support of infrastructure for business and tourism addresses all threemeasures ofPriority 5 – Tourism and Spa Industry.Measure 5.1: Promotion of tourism potential of the region in the Czech republic and abroadMeasure 5.2: Development of tourism productsMeasure 5.3: Reconstruction and development of tourism infrastructure

The Grant Scheme „HRD Fund“ for investment to human resources addresses 3 priorities (outof 3) and 3 measures (out of 7) of pilot SOP HRD as indicated below:

Measure 1: Sustainable Employment and Adaptability of Human Resources corresponds tothe following Priority/Measure of pilot SOP:Priority 1: Solving the problem of unemployment and the adaptability of human resourcesMeasure 1.1: Improvement in the adaptability of employers and employees to changes in economicand technological conditions, education and training; creation of new jobs.

Measure 2: Social Inclusion and Equal Opportunities corresponds to the followingPriority/Measure of pilot SOP:Priority 2: Social integration and equal opportunitiesMeasure 2.1: Integration of specific population groups endangered by social exclusion

CZ00.10.03 20/06/00

CZ 00.10.03

Measure 3: Development of life-long learning corresponds to the following Priority/Measureof pilot SOP:Priority 3: Development of systems of life-long learningMeasure 3.1: Development of a system of life-long learning

In addition, based on the agreement with the MIT, the proposed grant schemeunder Measure 4: Human resource development in industry) also addresses 2 measures of Sub-programme Human resource development in industry of Pilot SOP Competitiveness:Measure 3: Management and human resource developmentMeasure 5: In-company training programmes3. Description3.1. Background and JustificationBackgroundOn Accession the institutional, budgetary and administrative capacity must be in place in the CzechRepublic to participate in EU structural and cohesion policy. Government Resolution No. 714/1999acknowledged a proposal of priority assistance for 2000 for EU pre-accession programmes intarget regions.

Based on discussions with the EC, North-West Bohemia and Ostrava were agreed to be the NUTS IIregions to where Phare 2000 investment support would be targeted. A dual and complementaryapproach to delivery, based on corresponding national (i.e. sectoral) and regional priorities, hasbeen agreed upon. Through this approach, it will be possible that within the framework of oneregional development plan for each region, MRD, MIT and MoLSA will assume responsibility for alimited number of investment projects and will implement them through their own individualdelivery structures under the overall coordination of the MRD.

The most important programming and framework documents outlining the Czech Republic’spolicies and strategies will be the subject of extensive review, refinement and transformation duringthe pre-accession period, including preparations for their implementation. The HRD SOP is basedon the HRD Consultation Document, the MoLSA/MoEYS concept paper up to 2002, the NationalEmployment Plan (NEP) and the priorities defined in the NDP. The HRD SOP constitutes the basison which Phare and Structural Funds assistance to the Czech Republic will be implemented in theHRD sector for the 2000-2006 period. The Competitiveness SOP ensues from the correspondingpart of the Industry Consultation Document and builds on two major documents already drafted —the ‘Economic Strategy of the CR for Accession to the EU’ and the ‘Concept of Industrial Policy’,including the corresponding Action Programme for strengthening the competitiveness of Czechindustry. The regional operational programmes are based on the respective Regional ConsultationDocuments and the ‘Strategy of the Regional Development of the CR’.

The main strategic objective of the pilot ROP for Ostrava NUTS II Region is to encourageeconomic growth, support the diversification of the regional economic structure, focusing on thecompetitiveness of economic activities and the creation of new jobs regionally and locally toimprove overall living standards. Under this proposal certain, approved measures from the pilotHRD and Competitiveness SOPs and the NUTS II ROP will be implemented in the Ostrava region.This will allow for the administrative, management and monitoring structures to be tested throughpractical, hands-on experience with implementing the fund mechanisms proposed, and, moreover, itpaves the way for having a working capacity at NUTS II level for the implementation of Objective 1programmes on Accession.

JustificationThe NUTS II Ostrava region corresponds to the Ostrava NUTS III region, and is one of the mostproblematic regions in the country, with accumulated socio-economic and ecological problems. Its

CZ00.10.03 20/06/00

CZ 00.10.03

6 districts make it the second smallest region in the Czech Republic, although it is the third mostdensely populated region in the country. The main problems the region faces are risingunemployment (more than 18% in some districts), caused primarily through the major restructuringof the mining and metallurgy industries, GDP/per capita at 64% of the EU average, low salariesand insufficient infrastructure, which renders the region remote from Prague and other EUborders. Over half of the region’s population live in the country’s main industrially conurbatedarea, which is undergoing transformation from its former, traditional industrial base to an area ofdeclining industry, which, accompanied with the necessary restructuring, also needs to take actionstowards ensuring sustainable employment in the region and promote the growth of SMEs.

There is also a high potential for tourism and spa treatment development. The full potential fortourism development cannot currently be exploited, for other than the above reasons, insufficientregional marketing, lack of finances, low levels of tourism infrastructure and quality of overallservice provision. The proposed measure under this project will aim to improve infrastructure forbusiness and tourism, as the two areas, which are most influential on the regional economy. Giventhat the region’s problems are so intrinsically inter-related, the development of, for example, thepreviously unexploited capacity for tourism, will automatically impact on services, SMEs and thegeneral need to move away from larger industry, while building the first steps in the development ofa new branch of industry.

3.2. Linked ActivitiesPhare COP 1997: ESC support for preparing SF-type programmes through establishment of threepilot secretariats (Micro-regions Hana and Jeseniky and NUTS II North-West Bohemia) assistingtheir respective Management and Monitoring Committees and for providing policy and advisorysupport to the MRD; assistance to the MoLSA in preparing the pilot HRD SOP, ‘HRD Strategy forthe Czech Republic’ and the SPP 97 ESF project (the main objective of which was to enhanceunderstanding of SFs administration and policies and to provide training on thedesign/implementation requirements of a national programme supported by the ESF) and to other97 SPP projects (Business Support, Environment).

Phare NOP 98 and 99: (1) CZ9807.01 Establishment of National Development Strategy & SupportStructure for SFs & CF. (2) CZ9807.02 Training Programmes: Training needs to be followed upin: general ESC; implementation procedures for SFs/CF; SAPARD; ISPA; pilot projects. (3)CZ9807.03 Preparation for ISPA & SAPARD: Proposed project will continue overall developmentsand progress to operate as pre-structural funds programmes. (4) CZ 9807.04 Investment support tomicro-regions: Relevant TA experience to people implementing projects will be provided; ex-postfindings made of 98 projects to best assist in implementing 2000 projects. (5) CZ9902.01.SME/Business support policy: The development of mechanisms for increasing absorption capacitywill follow a coordinated approach to involve RDAs, BDAs & RPICs/BICs as well as otherrelevant key business support institutions in given region. (6) CZ9902.02 PromotingEmployability/Employment Measures.

Czech Programme “Support to Regional Development”, covering all aspects of SF/CF preparations,and national and regional development strategies identified in the AP, NPAA, and providing thebackground work for all future Czech and Phare funded projects.

3.3. Results/ OutputsOn the „institutional“ level the following results are expected:administrative, management and monitoring structures at all levels practically verified,practical experience with the management, implementation and evaluation of SF-type programmesimproved

CZ00.10.03 20/06/00

CZ 00.10.03

existing strategies and policies refined based on evaluation results of investment projects underPhare 2000

The sub-projects implemented under this project, which is briefly outlined in the next Section, areexpected to bring the following results:(a)Productive sector: Fund for promotion of intangible factors of competitiveness in SMEsSub-projects under the measures supported through the proposed Fund will be evaluated accordingto the following summary parameters (indicators):Increase in production volume in the companies that co-operate in this sub-programme.Increase of added value in the production of the companies that co-operate in this sub-programme.Increase in number of jobs in the companies that co-operate in this sub-programme.Furthermore, the results of the sub-projects implemented under the individual measures will beassessed according to specific parameters (indicators) as described in the Pilot SOPCompetitiveness, e.g.:Increase in the number of companies in the region that deal with the research and developmentIncrease in the number of research and development units in the regionIncrease in the number of employees in the region that deal with the research and developmentIncrease in the number of research tasks at universities or professional schools in the region, thatare being dealt with in co-operation with SMEs, expressed in the increase of respective costsIncrease in the number of companies in the region with certified system of managementAll parameters for assessment will be discussed and approved by SMMC.

(b)Business related infrastructure:(ba) Individual project: Science-Technology park. This project will co-finance a multitenantbuilding as a core centre of the Science-Technology Park (STP) with central services, meetingrooms, restaurant, , incubator units, office and commercial space, technical and technologicalbuilding equipment and a management centre for the park.The building will provide conditions for:3.500 m2 of commercial spacecreation of working space for 200 new jobs is expected in the first stage and the other will followwith construction of other buildings in the STP sitenumber of new inward investors and volume of investment on the STP sitenumber of new firms created in STPThe multitenant building will be located in Ostrava close to Ostrava Technical University campus.

(bb) Grant Scheme for support of infrastructure for business and tourismcompleted network of tourist paths, including cycling and ski trackscompleted orientation system in the regioninformation systems for entrepreneurs and investors in operationnumber of tourism support facilities in the regionnumber of new tourists in the region

(c)Human Resources Development: HRD FundThe implementation of measures to be financed by the HRD Fund (Grant Scheme), which isoutlined in the following Section, are expected to bring the following results and outputs:

Measure 1: Sustainable Employment and Adaptability of Human ResourcesExpected resultsNumbers of new and sustainable jobs createdEmployers and employees provided with skills and competencies necessary for adapting toprofessional, structural and technological changes

Expected outputs

CZ00.10.03 20/06/00

CZ 00.10.03

Training numbers of persons in the identified skills shortage areasNumbers of SMEs assistedSpecial programmes for enterprises under restructuring developed

Measure 2: Social Inclusion and Equal OpportunitiesExpected resultsImproved access to training and employmentNumbers of new and sustainable jobs for people at risk of social exclusion createdNumbers of existing jobs for people at risk of social exclusion safeguardedSocial services in the region enhanced

Expected outputsTraining numbers of counsellors from state, public and voluntary sectorNumbers of people at risk of social exclusion provided with counselling and trainingPlacement of numbers of people at risk of social exclusionSpecial programme for Romanys developedNumbers of new jobs in social services sectorInformation, guidance, education and training services targeted specifically to the needs of groupsat risk of social exclusion developedNew jobs and specific programmes accessible to the disadvantaged groups

Measure 3: Development of life-long learningExpected resultsIncreased participation of adults in continuing education and trainingIncreased involvement of schools in continuing education and training

Expected outputsNumbers of education and training programmes, modules and materials developedNumbers of teachers/trainers and school managers trainedKey competencies, certification, co-operation with social partners, monitoring and evaluation ofeducation system developed

Measure 4: Increasing competitiveness through human resource development in industryExpected resultsIncreased competitiveness of enterprisesImproved pro-innovative behaviour of enterprisesSchool curricula better responding to the needs of enterprises

Expected outputsNumbers of trained managersNumbers of companies assisted with implementation of more effective management and HRDsystem

3.4. Activities/ InputsConsistent with the priorities and measures identified in the respective regional and sectoraloperational plans and within the specific spheres for investment support to ESC indicated in theGuidance Note for Programming Phare 2000 a limited number of projects is being proposed for theOstrava NUTS II Region as described below.Basically Funds/Grant Schemes are proposed under this project (with the exception of oneindividual project) The conditions of access to the Funds/Grant Schemes are outlined belowwhereas the management of the Funds/Grant Schemes is briefly described in Annexes 5 -7 to thisfiche. A detailed description of the management mechanisms including maximum/minimum Phare

CZ00.10.03 20/06/00

CZ 00.10.03

contribution, indications as to the level of beneficiaries co-financing, apriori provision of a bankloan etc. will be given in the respective operational guidelines which will be submitted along withall required documents for the approval of grant scheme to the European Commission by the end ofJune.

Maximum Phare contribution per Grant Agreement will be 300.000 EUR. Phare contribution to thecapital of each fund will be 50%, the other 50% will be provided by local co-financing. The level ofco-financing provided by funds to particular projects/ beneficiaries, which is expected to be at least25% of total eligible costs, is to be identified in the above mentioned operational guidelines whichwill be submitted to the European Commission for approval.

(a) Productive sectorA Fund for promotion of intangible factors of competitiveness in SMEs is proposed as a sectoralintervention under the responsibility of MIT targeted to the region.ObjectivesWider objective of this Fund is achievement of such a share of SMEs performance in the economyof the region, which would be comparable to similar regions in developed countries with marketeconomy.The Fund aims specifically at development of enterprises which introduce into their production theresults of research and development, new technologies, new materials and new products,development of enterprises which implement or introduce own research and development,development of enterprises which assist in solving regional problems, development of enterpriseswhich help in solving environmental problems, ensuring the accessibility of educationalprogrammes focused on improvement of qualification of businessmen and employees.

The fund will be opened to all SMEs according to the EU definition. The selected sub-projectseligible under this Fund have to be in compliance with following core criteria and withrelevant specific criteria of measures specified below and must contribute to the achievementof results as set out above.

Core criteria (applicable to all sub-projects):technical and financial feasibility of the projectstrategic importance of the company for the respective regionsettled and transparent ownership of the companyrelevance for at least one of the measures proposedadditionalitysustainabilityevidence of availability of the co-financing fundsreadiness for implementationproject management (i.e. realism of targets, capacity to deliver)consideration of environmental impacts

Measure 1: Support to research and development, business environment development andintroduction of new technologies in SMEsThe objective of the measure is to support the participation of educational and researchorganisations and small innovative companies in the industrial development, to facilitate practicalintroduction of results of research and development into the production and to shorten theinnovation cycles.Specific selection criteria:report on the research and development carried out in the company until now,capability to utilise commercially the results of research and development,

CZ00.10.03 20/06/00

CZ 00.10.03

extent of the implementation of research, development and processing activity in the respectiveregion.Measure 2: Support to the introduction of certified systems of quality control in SME inmanufacturing industryThe objective of the measure is to introduce systems of quality control and thus to increasecompetitiveness of enterprises, to improve production quality and system of management. At theend this should facilitate the access of SME of the selected regions to new markets.Specific selection criteria:report on the export of the respective company, for which the certified system of quality willimprove the competitiveness on the market, especially in abroadcapability to utilise implementation of the certified system of quality commercially

(b) Business related infrastructureOne major subproject, a Science-Technology Park, and a Grant Scheme for support of infrastructurefor business and tourism are proposed.

(ba) Science-Technology ParkThis complex individual sub-project is a follow up of previous activities financed by Phare. Underthe projects CS9203 and CZ 9603.02 a feasibility study, business plan and master plan have beenprepared. In 1997 the RDA Ostrava completed the project Science-Technological Park (STP) Ostravawhich included as the outputs the Feasibility study, Business Plan and Master plan. As a result of theproject the Science Technological Park (STP) company was established with the founders City ofOstrava, RDA Ostrava and three regional universities.

The activities of a STP company are oriented in two directions :Operating as an innovation centre with business incubatorThe preparation of a site identified in Master Plan for the construction of Science Park and for theprovision of space and industrial estates for the prospective tenants.

For operation of a STP company the Technical university Ostrava provided the premises, where theprovisional residence of STP is located and where the micro incubator was established.

For the site preparation the City of Ostrava has financed the purchase of a land about 10 ha inOstrava (costs about 2 M EUR), which is located in the vicinity of VŠB- Technical universityOstrava. The infrastructure (water and gas mains, electricity, roads, parking) for the first phase(cca 3 hectars) in total value of 1 M EUR is financed by the City of Ostrava with support of Phare(0,15 M EUR). First phase infrastructure will be ready before end of 2000.

The first prospective tenant - Czech-Spanish company Ingelectric,a.s already expressed his intention tobe located in the STP site and to start his own building construction after the technical infrastructurewill be prepared. The company will employ 40 employees in the new building and will become socalled anchor tenant in STP

Under this project the construction of multitenant facility with business incubator will becofinanced in Ostrava on the industrial site with technical infrastructure already being built by Cityof Ostrava (with Phare contribution under CZ 9603-02 for the materials and equipment). Thedocuments for Master planning and EIA are already completed, the documents for building permitare being processed under financing of the City of Ostrava and will be finished in May 2000.

ObjectivesThe wider objective of the project is establishment and improvement of a high quality environmentfor establishing of new SME´s and development of existing ones in the field of high technologies,

CZ00.10.03 20/06/00

CZ 00.10.03

overall economical, tax, law and technology transfer service as well as full technical and non-material support focused on newly established companies and new entrepreneurs in order to attractimportant international investors, especially those ones interested in co-operation with theTechnical University Ostrava. The specific objective is to build the multi-tenant building providingcommercial space in incubator units, central services, management centre, meeting rooms,representation space, other commercial and business space as well as creation of new jobs.

The sub-project addresses two measures of priority 1 (Business Environment and BusinessInfrastructure) of the ROP:Measure 1.3: The development of small and medium-sized enterprises,aimed at the establishment of favourable conditions for new SMEs and their development, theimprovement of the environment for entrepreneurs, the improvement of the competitiveness andstability of SMEs and the support to their activities as sub-suppliers (sub-contractors) for extensiveregional activities.Target groups:small and medium-sized businesses (up to 250 employees, in line with the EU definition) with aspecial focus on the development of entrepreneurship in scientific and educational branches, inindustrial activities with the export potential and those which act as sub-suppliers (sub-contractors)to big companies and investors,business networks and chains,

Measure 1.4: The implementation of new technologies,aimed at the construction of a Scientific and Technological Park and its satellite network within theuniversities and research institutes, the support to the centres for technological transfer, creating theconditions to support the innovation activities by the development of services for science, researchand innovative entrepreneurship, the development of key branches for which there is thecorresponding educational potential in the region, particularly microelectronics, bio-technologies,industries exploiting new materials, clean technologies and computer software.Target groups:universities in the region,research institutes,inland and foreign innovation companies,small and medium-sized companies in manufacturing and services,big companies undergoing the restructuring and modernisation process,the network of entrepreneurs.

Implementation arrangementsThe project will be prepared and implemented according to the DIS PHARE procedures for theWorks Contracts. It is expected the RDA Ostrava, as former PMU Phare with the expertise in Pharemethodology will be contracted by the Implementation Agency as the sub-contracting agency forthis project and will be responsible to the Implementation Agency and to the RMMC for the tenderdocuments preparation, tender process preparation and tender launch, tender evaluation, monitoringof project and co-ordination of all activities.

(bb) The Grant Scheme for support of infrastructure for business and tourismThe Grant Scheme is identical to that run under the SF-pilot programme in Jeseniky micro-region(CZ 9807-01-04-0002) and it is modelled on the approaches of the CBC Small Project Fund. Thesub-projects eligible under this Grant Scheme have to be in compliance with the criteria specifiedbelow and must contribute to the achievement of objectives as set out below.

ObjectivesWider objective of this Scheme is increased share of tourism on the economy of the region.

CZ00.10.03 20/06/00

CZ 00.10.03

The Grant Scheme aims specifically at change of the image of the region from an industrial andenvironmentally damaged area to an attractive tourist resort, improvement of tourist infrastructure,increase in offer of tourist amenities, improvement of conditions for offer of job opportunities,quality improvement of services provided by public tourist agencies, higher number of touristsand/or longer period of their stay in the region, easier accessibility to attractive tourist places, sightsand spas, use of extensive facilities which haven’t been utilised so far, support of the sensitivedevelopment of natural sites, promotion of tourist infrastructure and coverage of the whole territoryby a unified, complete and complex system of information on tourist possibilities and activities inthe region.

Core criteria (applicable to all sub-projects): Compliance with the criteria and with the scope of the Grant Scheme;Compliance with the relevant Community legislation and with the relevant Czech legislation;Regional impact of the sub-project;Relevance to the objectives of the Scheme;Completeness of the application;Possibility of implementation within the time schedule of the Scheme;Evidence of availability of co-financing funds;AdditionalitySustainabilityClear business plan indicating medium to long-term sustainability of the operation;Preparedness for immediate implementation;Technical and financial viability, Cost effectiveness;Value for money;Level of partnership in the project.

Specific criteria:Existence or immediate intention to prepare clear exploitation and marketing plan to guaranteereturn on infrastructure investment (Project must demonstrate ability to attract new visitors to the regionProject linkages to broader regional marketing efforts, in particular project's ability to supportdevelopment of a regional tourism brand

Eligible activities:Information systems for entrepreneurs and investors;Marketing of the infrastructure;Infrastructure for winter sports in tourism resorts;Infrastructure for summer tourism activities;Tourism transport infrastructure;Renewal of heritage and tourist sights;Information technology for tourism.

Eligible BeneficiariesPublic/semi-public SC ??? administration bodies (in particular municipalities; associations ofmunicipalities)Other public and non-profit institutions

(c) Human Resources DevelopmentA Grant Scheme – „HRD Fund“ for investment to human resources is proposed for the region underPhare 2000. This Grant Scheme will be based on the already existing PALMIF (Pro-active LabourMarket Intervention Fund) mechanism using the existing institutions for implementation. PALMIF

CZ00.10.03 20/06/00

CZ 00.10.03

has been successfully operated under Phare programme since 1992. For detailed information on theoperation of the HRD Fund see Annex 7: Implementation Mechanism of the HRD Fund.

The sub-projects eligible under the HRD Fund must be in compliance with the core criteriaand with at least one of the measures specified below and must contribute to the achievementof objectives as set out below.

Core criteria (applicable to all sub-projects):Compliance with the eligibility criteriaRelevance for the MeasureEvidence of demandIntegration with other regional development priorities and measuresAdditionalityEvidence of availability of the co-financing fundsReadiness for implementationSustainabilityInnovation (new to the region or an innovative approach to management and/or funding)Project management (i.e. realism of targets, capacity to deliver)Consideration of environmental impacts

Measure 1: Sustainable Employment and Adaptability of Human ResourcesThe measure aims at increasing the adaptability of employers and employees in the region tochanges in economic and technological conditions, improving the response and flexibility ofvocational education and training in the region and establishing closer links between the educationand enterprise sector

Specific criteria:- Creation and or safeguarding of employment- Increase in number and range of employment opportunities- Outcomes (e.g. number and level of qualifications/skills anticipated, expected employmentoutcomes, increase in training standards, numbers into further training, business/education linksestablished)- Value for money (e.g. cost per beneficiary/unit costs)- Scale (e.g. numbers of individual/business trained, retrained, recruited and orassisted/supported, or received guidance/counselling)- Ability to address identified skills needs and shortages and gaps in training provision,

particularly in relation to business development activities)

Eligible activities:Training, counselling and job creation schemes to support:Development of vocational education and training programmes according to labour market needsCreation of new jobs incl. appropriate trainingApplication of new forms of working contract

BeneficiariesRedundant employees, unemployed, employers, small and medium-sized enterprises, schools andtraining institutions

Measure 2: Social Inclusion and Equal OpportunitiesThe measure aims at integration of specific groups at risk of social exclusion, increasingemployability of people at risk of social exclusion and integrated approach and partner co-operation in support of social inclusion

CZ00.10.03 20/06/00

CZ 00.10.03

Specific criteria:- Creation and/or safeguarding of employment- Increase in number and range of employment opportunities- Outcomes (e.g. number and level of qualifications/skills anticipated, expected - employmentoutcomes, numbers into further training)- Complex approach to help beneficiaries- Value for money (e.g. cost per beneficiary/unit costs)- Scale (e.g. numbers of individual trained, retrained, recruited and or assisted/supported, orreceived guidance/counselling)

Eligible activities :Development of specific programmes and support of new jobs - actions to motivate, re-socialise, re-train and place to a job of long term unemployed, particularly Roma population - a pathwayapproachCounselling and motivation programmes leading to self-employmentA complex approach to disabledDevelopment of co-operation of special schools with employers to solve future professional careerof its graduatesDevelopment of social services

Beneficiaries:Long term unemployed, young unemployed, women re-entering labour market, low qualifiedworkers, Roma minorities, disabled, counsellors, NGO’s in social services sector

Measure 3: Development of life-long learningThe measure aims at improvement in access to and quality of education and training andincreased flexibility of school leavers

Specific criteria:- Outcomes (e.g. number and level of qualifications/skills anticipated, expected - employmentoutcomes, increase in training standards, numbers into further training, business/education linksestablished)- Value for money (e.g. cost per beneficiary/unit costs)- Scale (e.g. numbers of individual trained)- Ability to address identified skills needs and shortages and gaps in training provision,

particularly in relation to business development activities)- Increase in number, range and locations of training facilities

Eligible activities :Modularisation of programmes of vocational education in connection to a system of qualificationsrecognised by social partners, and developing a certification systemEnhance quality of continuing education and training according to labour market requirementsTraining of teachers, trainers, managers and administrators in education and training

Beneficiaries:Schools and training institutions, participants in continuing education and training programmes,employers and other social partners, school leavers

Measure 4: Human resource development in industryThe measure aims at increasing competitiveness of the industry in the region

CZ00.10.03 20/06/00

CZ 00.10.03

Specific criteria:- Readiness for support- Outcomes e.g. number and level of qualifications/skills anticipated, expected productivityoutcomes,- Value for money (e.g. cost per beneficiary/unit costs)- Scale (e.g. numbers of individual/business trained, and or assisted/supported, or received

guidance/counselling)- Ability to address identified skills needs and shortages and gaps in training provision,

particularly in relation to business development activities)- Growth potential of the company

Eligible activities:Management and human resource developmentIn-company training programmes

Beneficiaries:Employers, employees, enterprises.

4. Institutional FrameworkWithin the institutional framework of Phare 2000 investment support the following principles willbe followed:the approach of a single regional programme for the target region will be applied merging bothselected sectoral and regional priorities and applying two “types” of monitoring – parallelmonitoring within the individual delivery structures of the involved ministries and, at the same timecommon monitoring of all activities under all priorities carried out by the Regional Executive Unit(Secretariat) for their RMMC to ensure good co-ordination of the whole programmeinvestment monies should use the implementing framework agreed for the pre-accession stage,adopting as much as possible a methodology imitative of structural funds practicemonies should support cost effective and value for money investments which promote economicand social cohesion: they must also allow for a meaningful experimentation with programmedelivery and project development methods that are essential to the planning and implementation ofstructural funds programmes.The below described institutional framework includes relevant technical institutions involved in theimplementation of Phare 2000 investment support:

Joint Monitoring Committee (JMC), Monitoring Sub-committee (MSC), National ProgrammingCommittee for Economic and Social Cohesion (NPC-ESC), Monitoring Committee for Economicand Social Cohesion (MC-ESC )In keeping with EC programmes co-financed under the Structural and Cohesion Funds regulations,the preparation of programming documentation and co-ordination of SPP activities is overseen bytheNPC (ESC) and the implementation is monitored by the MC (ESC). At a higher level (entire EUassistance), all the activities are monitored by the JMC and MSC.

Ministry of Finance (MF)The MF is a central office of state administration responsible for the country’s budget, state finalaccount,state treasury, financial market, taxes, etc. The MF co-ordinates the receipt of foreign assistance.

Ministry for Regional Development (MRD)

CZ00.10.03 20/06/00

CZ 00.10.03

The MRD was entrusted with the horizontal co-ordination in the sphere of economic and socialcohesion, and the overall co-ordination of the Structural Funds1. The MRD provides informationand methodicalassistance to the self-governing NUTS III regions (kraje), municipalities and their associations, andensures activities connected with the process of including the NUTS III regions into the Europeanregional structures.

Ministry of Industry and Trade (MIT)The Ministry of Industry and Trade is a central body of national administration for state industrialpolicy, trade and international trade policies, energy industry, branches of industry, small andmedium enterprises, industrial research and development etc.

Ministry of Labour and Social Affairs (MoLSA)The Ministry of Labour and Social Affairs is a central ministry and is responsible for labourrelations, occupational safety, employment and training, social policy etc. The MoLSA, namely itsEmployment Services Administration section, is responsible for designing and implementingemployment policy and managing the Employment Services Network consisting of 77 DistrictLabour Offices and their local branches which will be playing the role of the decentralisedexecutive bodies in the target regions.

Ministry of Education, Youth and Sport (MoEYS)The Ministry of Education, Youth and Sports is a central body of national administration for pre-school facilities; basic schools, secondary schools and higher schools; for science research anddevelopment policies, including international co-operation in these areas; national policies andservices for children, youth, physical training, sports, tourism and national representation in sports.

Regional Managing and Monitoring Committees (RMMCs)The RMMC will steer and monitor the investment projects implemented under the responsibility ofthe MRD. Furthermore it will play an overall supervisory role with regard to the developmentoutcomes of the whole programme in the region. The main function of the RMMCs is an overallsupervisory role with_________________________________________________________________________________________________________________

1 Government Resolution 159/1998regard to the outcomes of the development programme, setting and agreeing the generaldevelopment aims and priorities of the respective NUTS II region. The composition of the RMMCis based on the principle of partnership. The sectoral points of view will be transferred into theRMMC by the participation of members of the respective SMMCs.

Sectoral Management and Monitoring Committees (SMMCs)The SMMCs are responsible for the management and monitoring of the sub-projects prioritisedwithin the SOPs and implemented under the responsibility of the respective ministries. The SMMCIndustry consists of specialised subcommittees and working groups and is chaired by the MIT andall relevant ministries incl. the MRD, the MoLSA and the MoEYS participate through theirrepresentatives. The HRD Programme Monitoring Committee (PMC), a sub-committee of the NPC-ESC, is chaired by the MoLSA, with representatives from the MoEYS, the MIT and the MRD,regional authorities, other ministries and economic and social partners. The PMC supervises and co-ordinates all activities related to the preparation of the EU policies in Employment and HRD fieldin the Czech Republic and future use of ESF.

Secretariats/Regional Executive UnitsThrough Phare COP 97 three pilot secretariats to the respective Management and MonitoringCommittees have been established in NUTS II North-West Bohemia and in Micro-Regions Jeseniky

CZ00.10.03 20/06/00

CZ 00.10.03

and Hana with main responsibility to assist in the process of implementation of investment projectsco-financed by Phare and Czech sources. The financing of the pilot secretariats from Phare will beended by November 2000. By this time these secretariats will be transformed into regionalexecutive units which will act as regional offices of the CRD (in decentralised location) for Phare2000.

In addition to their role of the main decentralised operational/executive mechanism at a regionallevel for the project component managed through MRD, these units will in support of its RegionalManagement and Monitoring Committee carry out monitoring and programme promotion role forall activities under all priorities in each of the target regions to ensure good coordination on theground.

Budget(in million EUR1€ = 37 Kè (CZK)

Project Components InvestmentSupport

InstitutionBuilding

TotalPhare (= I+ IB)

NationalCo-financing

IFI TOTAL

(a) Productive sector(aa) Fund for promotion ofintangible factors –innovation support (MIT)

2.00 2.00 2.00 4.00

(b) Business relatedinfrastructure(ba) Science-TechnologyPark (MRD)

2.00 2.00 2.00 4.00

(bb) GS for infrastructure forbusiness and tourism (MRD)

2.00 2,00 2.00 4.00

(c)Human ResourcesDevelopment(ca) HRD Fund (MoLSA) 2.00 2.00 2.00 4.00

TOTAL 8.00 8.00 8.00 16.00

6. Implementation Arrangements

6.1. Implementing Agency (IA)All funds transferred from Brussels are sent directly to the National Fund (NF), based in theMinistry of Finance, whose responsibility for financial accountability in accordance with theFinancing Memorandum rests with the National Aid Co-ordinator (NAC), and finally, the NationalAuthorising Officer (NAO).

Centre for Regional Development (CRD)The CRD is proposed as the Implementing Agency for the project. CRD is a legal person,established by the MRD. In its role as IA, the CRD will assume the overall responsibility foradministrative, financial and technical management of EU assistance to this project. The designatedProgramme Authorizing Officer (PAO) is responsible for the operations of the IA and for the

CZ00.10.03 20/06/00

CZ 00.10.03

overall co-ordination of both investment support projects in ESC in the two target regions .ThePAO - Mr. Josef Postránecký, the Ministry of Regional Development, Staromìstské námìstí 6, 11015 Praha 1, phone: 00-420-2-2486 1126, fax: 00-420-2 2486 1451 - will be nominated by the NAOon the proposal of the Ministry of Regional Development.

Operational responsibility (subject matter, financial, technical) for the individual components ofeach project (business infrastructure, productive sector, human resources) will rest in full with theindividual ministries (MIT, MoLSA , MRD) and “their” agencies (see below).

The implementation of Phare programme will be carried out on the basis of Financing Agreementbetween the NF and the IA. At the same time, the CRD as an IA will delegate responsibility to two“horizontal “agencies for administrative, financial and technical management of the sectoralcomponents of the project – the National Training Fund (NTF) for HRD component and theBusiness Development Agency for Innovation Fund, whereas the management of the businessinfrastructure component will rest with the CRD. A suitable contract will detail the management ofthe business infrastructure component which will rest with the CRD. The contract between the IAand the two horizontal agencies shall stipulate in detail the responsibilities of the sub-contractors aswell as the conditions of implementation of the respective project components. The details on thecontracts will be set out in the operational guidelines.

National Training Fund (NTF)The NTF will be responsible for the administrative, financial and technical management of sub-projects under the HRD Fund. The NTF is a non-profit institution (public beneficial organization)established in 1994, initially within the framework of Phare, with the objective to support humanresource development especially in the area of management training and human resourcedevelopment in enterprises. It works in close co-operation with the key ministries and the economicand social partners. The NTF operates under the supervision of its Board of Directors, chaired bythe MoLSA, which provides all necessary strategic guidance and ensures accountability to alldonors. The NTF has also operated as the Programme Management Unit or strategicimplementation unit for a number of Phare financed programmes and projects in the fields ofemployment, education, social protection and public administration. NTF has also providedtechnical assistance to MoLSA and SMMC in preparation for the ESF.

Business Development Agency (BDA)The BDA will be responsible for the administrative, financial and technical management of sub-projects under the Innovation Fund. The operational management will be carried out by the BDA´sbranch offices operating directly in the regions.

The respective RMMCs and SMMCs will steer and monitor the implementation of investmentprojects under the responsibility of their ministries. The regional/ sectoral points of view will betransferred into the SMMCs by the participation of members of Regional Managing and MonitoringCommittees (RMMCs) in the SMMCs and vice versa. Each priority will be articulated through afund or facility with its own implementing and project selection procedures. The conditions ofaccess and management principles will be prepared, defined and announced. The instructions forthe preparation of applications will be included in the above-mentioned conditions, as well as thedescription of the rules for providing the support. The long lists and short lists will be prepared bythe respective executives and approved by the appropriate MMC and passed for further and finalapproval. The Secretariats / Regional Executive Units will, in addition to their role of the maindecentralised operational/executive mechanism at a regional level for the project componentmanaged through MRD, in support of its Regional Management and Monitoring Committee carryout monitoring and programme promotion role for all activities under all priorities in the targetregion to ensure good co-ordination on the ground.

CZ00.10.03 20/06/00

CZ 00.10.03

Specific requirementsIn order to support the co-ordinated approach and to avoid financing of activities which may not bein line with national strategies the following arrangements are requested:the regional management committee will include, whenever appropriate, relevant representative ofnational authorities in order to ensure that selected projects are in compliance with nationalstrategies (e.g. Ministry for Regional Development, tourism section in case of projects for supportof tourism). The support to tourism will be conditional to adoption of relevant regional strategy andclarifications concerning the establishment of standard information system.Regional Development Agencies (RDAs)In addition to structures for formal programme implementation and delivery, it is expected that thesupporting role of development agents will be required both by the project promoters and theexecutive agencies and bodies operating in the region to ensure a high quality development processthat merits EU support for economic and social cohesion. In this respect, it will be important to usethe development expertise of appropriate public or public interest bodies active in the target region,particularly the respective regional development agencies which have already gained a unique andsubstantial know-how through implementation of past Phare programmes.The Regional Development Agencies have been established in each NUTS III region in order tosupport the process of regional development. Both the RDA in Most (North-West Bohemia) and theRDA in Ostrava (Ostrava Region) are agencies with high levels of know-how and the largestexperience in the country gained from administration of other Phare programmes. They can (on acontractual basis) offer technical assistance and support to the regional actors.

Regional Co-ordinationNevertheless, the monitoring and programme promotion role for all activities under all priorities inthe target region will be undertaken by the regional executive unit in support of its RegionalManagement and Monitoring Committee to ensure good co-ordination on the ground. Actions undereach priority will additionally be monitored at a higher, national level by the appropriate SMMCand the ‘Management Authority’ and ultimately by the NPC-ESC. In this manner the institutionalinfrastructure will pilot the mechanisms and processes typical of both national/ sectoral and regionalstructural funds approaches and for co-ordination between them.

The approach of a single regional programme for the target region will be applied embracing bothselected sectoral and regional priorities and applying two “types” of monitoring – parallelmonitoring within the individual delivery structures of the involved ministries (MPSV, MPO andMRD) and, at the same time regional programme monitoring of all activities under all prioritiescarried out by the regional executive unit for their RMMC to ensure good co-ordination of thewhole programme.

6.2. Non-standard aspectsPhare 2000 investment into ESC will be managed in accordance with the Phare DecentralisedImplementation (DIS) procedures adopting as much as possible a methodology imitative ofstructural funds practice.Based on the agreed approach (one target region – one programme including both selected regionaland sectoral priorities) the institutional framework for implementation of investment projects underPhare 2000 will include three delivery components as they have been proposed by the “lead”ministries for implementation of projects within the scope of their responsibilities. For this targetregion it will be:

Ministry of Regional Development – ‘Grant Scheme for support of infrastructure for business andtourism’ - 2 MEUR and ‘Science-Technology park’ – 2 MEUR, plus the overall co-ordination ofthe project. This component of the project will be delivered in as decentralised manner as possible

CZ00.10.03 20/06/00

CZ 00.10.03

and will build on the experience of the existing SF pilot programmes in Jeseniky and Hana (PhareNOP 98 Special Preparatory Programme CZ 9807-04).Ministry of Labour and Social Affairs in close co-operation with the Ministry of Education, Youthand Sport – ‘HRD fund’ – 2 MEUR.Ministry of Industry and Trade – ‘Fund for promotion of intangible factors of competitiveness inSMEs – innovation support’ – 2 MEUR.

Thus, while it is expected that all priorities for Human Resources and some priorities for ProductiveInvestment, will in large measure be planned and implemented in the target region through nationalbodies, the Business Infrastructure priorities will be mainly regionally planned and delivered. Theimplementation arrangements, however, are governed by the same principles.The conditions of access to the Funds/Grant Schemes are outlined in Section 3.4 of this fichewhereas the management of the Funds/Grant Schemes is briefly described in Annexes 5 -7 to thisfiche. A detailed description of the management mechanisms will be given in the respectiveoperational guidelines which will be submitted along with all required documents for the approvalof grant scheme to the European Commission by the end of June.

6.3. Contractsa. Grant Scheme for support of infrastructure for business and tourism: 2 MEURb. Science-Technology park: 2 MEURc. HRD fund: 2 MEURFund for promotion of intangible factors of competitiveness in SMEs –innovation support: 2 MEUR

7. Implementation ScheduleStarting Date: 3Q/2000Start of Tendering: 4Q/2000Start of Project Activity: 1Q/2001Project Completion: 3Q/2002All contracts need to be completed by 31/10/2002. The deadline for final payments is 31/10/2003.The detailed implementation schedule is described in Annex 2.

8. Equal OpportunityEqual opportunity principles and practices in ensuring equitable gender participation in the Projectwill be guaranteed.

9. EnvironmentFor each works project an environmental impact assessment study will be worked out showing theimpact of the project both during the construction and operation.

10. Rates of ReturnFor each major investments (Works) project a feasibility study will be worked out which alsoincludes calculation of the rate of return showing the impact of the project both during theconstruction and in operation.

11. Investment CriteriaEach investment (Works) sub-project will be accompanied by a feasibility study in whichparticularly the following criteria will be specified (This Section is closely related to the Section3.4. – Activities, particularly to the description of Core criteria for selection of projects under theproposed Grant Schemes):

CZ00.10.03 20/06/00

CZ 00.10.03

Additionality - all investment sub-projects will respect the additionality principle showing that theEU support will only supplement other sources and will on no account replace investments of localsources allocated for support of the region.

Sustainability – the investment sub-projects implemented under the proposed Grant Schemes aswell as the proposed individual sub-project -STP Ostrava, will be sustainable in the long term. Theywill prove - if applicable - the compliance with EU norms and standards, the financialsustainability and no negative effect on the environment.

Cofinancing - Maximum Phare contribution per Grant Agreement will be 300.000 EUR. The fourproposed Contracts under this project (see Section 5 – Budget) keep the co-financing rate EU/CR at50/50. To this effect, the ministries will provide adequate budget resources to implement theproject. The level of co-financing by funds to particular sub-projects/ beneficiaries, which isexpected to be at least 25% of total eligible costs, is to be identified in the above mentionedoperational guidelines which will be submitted to the European Commission for approval.

State Aids - all assistance proposed under this programme will be consistent with EU State AidsRules as they would apply to an EU Objective 1 consistent with Treaty Articles 87 (a) andEuropean Commission guidelines on regional aid published in the Official Journal of the EuropeanCommunities on 10 March 1998.

Project readiness – all required technical documentation will be completed for the investment sub-projects to be ready for contracting in time.

12. Conditionality and SequencingPhare financing will be conditional upon the successful completion of the following steps:End of June 2000 – draft operational guidelines to the Grant Schemes along with all requireddocuments submitted for approval to ECEnd of August 2000 – first call for proposals launchedOctober/ November 2000 – evaluation of projects submitted under the first call for proposals,approval of a project short-list and signing of Financing Agreements for approved investment sub-projects1st quarter 2001 – tendering and contracting for the first round of approved investment sub-projectscompleted, start of sub-projects implementation

Annexes to Project FicheLogframe MatrixDetailed Implementation ChartCumulative Contracting and Disbursement Schedule for the Project (MEUR)Grant Scheme for support of business and tourism infrastructure - Indicative list of sub-projectswith reference to Feasibility/Pre-Feasibility Studies (Investment Projects)Implementation mechanism of the Fund for promotion of intangible factors of competitiveness inSMEsImplementation mechanism of the Grant Scheme for support of business and tourism infrastructureImplementation mechanism of the HRD Fund Diagram:Target region Programme Scenario

CZ00.10.03 20/06/00

CZ 00.10.03

Logframe Matrix Annex 1

Project TitleInvestment in Target Region NUTS II Ostrava

Project Number:CZ00-10.03 Date of Drafting: 25 February 2000

Contracting Period Expires: 31/10/02 Disbursement Period Expires: 31/10/03Total Budget: 16.00 MEUR Phare Contribution: 8.00 MEUR

Wider Objective Indicators of Achievement Sources of Information Assumptions and RisksTo ensure that suitable structures for theoperation of SF/CF (e.g. programming,/planning,monitoring, evaluation, financial control,SOPs/ROPs etc.) are in place (tried and tested)by the date of accession;To promote economic and social cohesion, inaccordance with Resolution 714/99, in particularfocused on the regeneration of an Objective1/NUTS II region.

Improved position of the CzechRepublic’s preparations for accession interms of enhancement of economic andsocial cohesion, according to the RegularReport, Screening Negotiations and APpriorities.

EC Regular Report onProgress in AccessionMRD and otherministries involvedNPC/MC(ESC)Statistical yearbooksInternational, nationalregional developmentstudies and surveys

AssumptionsContinued commitment ofthe Czech Republictowards the EU accessionContinued commitment ofthe Government towardsthe priorities of the RDP,ROP, NPAA

Immediate Objectives Indicators of Achievement Sources of Information Assumptions and RisksTest and enhance/adapt structures, measures anddelivery mechanisms that have been developedover recent years for the implementation of ESCon the basis of SF methods/principles;Strengthen planning and absorption capacitiesfor regional development by promoting bestpractice investment projects and by validatingthe regional development expertise learned;Gain experience with co-ordination of sectoraland regional programmes and priorities andtransfer the experience thus gained to otherNUTS II regions;Gain experience with co-ordination of the three

Increased effectiveness of theadministrative, management andmonitoring structuresIncreased absorption capacity of theregionImproved co-operation between the MRDand the line ministries in implementationof sectoral and regional programmes andthe regional administrative structuresFunctioning EU/ CR co-financingmechanismImproved socio-economic situation ofthe region

Reports and analyses ofMRD and otherministries involvedRMMCs and SMMCsExecutive bodies/agencies in the regionRDAs, BICs, RPICs,Labour Offices,SecretariatsEvaluation reports

Assumptions:Functioningimplementation structuresEfficient programmemanagement at all levelsAvailability of well trainedstaff of regionalexecutivesand adequateinstitutional supportAvailability of Czechfinancial sourcesRisks:Delayed establishment of

CZ00.10.03 20/06/00

CZ 00.10.03

pre-accession tools (Phare/ISPA/ SAPARD) inproject funding process;Deliver co-financing Investment for thepromotion of ESC in pilot Objective 1/NUTS IIregion via strengthening/diversifying theeconomy of the region and ensuring a high andstable employment level.

PublicityIncrease in project interests after eachcall for proposals

higher self-goverrningunits (VUSC)Lack of co-ordination andcommunication betweenall levelsLack of co-ordination andcommunication betweenthe “sectoral” and“regional” implementingstructures

Outputs Indicators of Achievement Sources of Information Assumptions and RisksIncreased activity of the productive sector byIncreased number of companies in the regionthat deal with the research and developmentIncreased number of research and developmentunits in the regionIncreased number of employees in the regionthat deal with the research and developmentIncreased number of research tasks atuniversities or professional schools in the region,that are being dealt with in co-operation withSMEs, expressed in the increase of respectivecostsIncreased number of companies in the regionwith certified system of managementImproved business infrastructure by

Productive sectorIncrease in production volume in thecompanies that co-operate in this sub-programme.Increase of added value in the productionof the companies that co-operate in thissub-programme.Increase in number of jobs in thecompanies that co-operate in this sub-programme.Increase in the number of companies inthe region that deal with the research anddevelopmentIncrease in the number of research anddevelopment units in the regionIncrease in the number of employees inthe region that deal with the research anddevelopmentIncrease in the number of research tasks

MRD and otherministries involvedRDA,Chambers ofCommerce, BICs,RPICs, Labour Offices,Secretariatsstatistical bulletins andyearbooksprojects reports andevaluationuniversities, specialisedschoolsindependent research

Assumptions:Availability of goodquality projectsAvailability of financialsources for finalizing thepreparation of projectsefficient companies managementRisks:conservative approach toinnovationslack of qualified labourforce due to their lowmobilityinsufficient investmentsourcesproblems withprivatisation

CZ00.10.03 20/06/00

CZ 00.10.03

a) Science-Technology ParkA multitenant building as a core centre of theScience-Technology Park builtnew businesses located in STP

b) GS for infrastr.for business and tourismcompleted network of tourists paths, includingcycling and ski tracksorientation system in the region completedinformation systems for entrepreneurs andinvestors in operation

Strengthened capacity of human resources byEmployers and employees provided with skills

at universities or professional schools inthe region, that are being dealt with in co-operation with SMEs, expressed in theincrease of respective costsIncrease in the number of companies inthe region with certified system ofmanagementBusiness infrastructurea) Science-Technology Park3.500 m2 of commercial spacecreation of working space for 200 newjobs is expected in the first stage and theother will follow with construction ofother buildings in the STP sitenumber of new inward investors andvolume of investment on the STP sitenumber of new firms created in STP

b) GS for infrastr.for business andtourismnumber of tourism support facilities inthe regionnumber of new tourists in the region

Human resources developmentNumbers of new and sustainable jobs

project reporting

project reportinginformation from hotelsand other accomodationcapacities

project reporting andevaluationbusiness registers

low interest of companiesto participate in the project

CZ00.10.03 20/06/00

CZ 00.10.03

and competencies necessary for adapting toprofessional, structural and technologicalchangesSpecial programmes for enterprises underrestructuring developedImproved access to training and employmentSocial services in the region enhancedSpecial programme for Romanys developedInformation, guidance, education and trainingservices targeted specifically to the needs ofgroups at risk of social exclusion developedNew jobs and specific programmes accessible tothe disadvantaged groupsIncreased participation of adults in continuingeducation and trainingIncreased involvement of schools in continuingeducation and trainingKey competencies, certification, co-operationwith social partners, monitoring and evaluationof education system developedIncreased competitiveness of enterprisesImproved pro-innovative behaviour ofenterprisesSchool curricula better responding to the needsof enterprises

Administrative, management and monitoringstructures at all levels testedPractical experience with the management,implementation and evaluation of SF-type

createdTraining numbers of persons in theidentified skills shortage areasNumbers of SMEs assistedNumbers of new and sustainable jobs forpeople at risk of social exclusion createdNumbers of existing jobs for people atrisk of social exclusion safeguardedTraining numbers of counsellors fromstate, public and voluntary sectorNumbers of people at risk of socialexclusion provided with counselling andtrainingPlacement of numbers of people at risk ofsocial exclusionNumbers of new jobs in social servicessectorNumbers of education and trainingprogrammes, modules and materialsdevelopedNumbers of teachers/trainers and schoolmanagers trainedNumbers of trained managersNumbers of companies assisted withimplementation of more effectivemanagement and HRD system

available funds contracted tobeneficiaries

ROP updated

CZ00.10.03 20/06/00

CZ 00.10.03

programmes improvedRefined existing strategies and policies based onevaluation results of investment projects national/ regional policies amended

reflecting the experience from theprogramme implementation

Inputsfinancial support to approved projects

Detailed Implementation Chart for the Project Annex 2Year 2000 2001 2002 2003Detailed ProjectImplementation

O N D J F M A M J J A S O N D J F M A M J J A S O N D J F MAMJJAS

Start: Signing of FAfor individual inv. project

CZ00.10.03 20/06/00

CZ 00.10.03

a) Productive inv.: innovationsGS

Tendering x x x x x x x x x x x x x x x x x x x x x x x x

Contracting x x x x x x x x x x x x x x x x x x x x x x

Monitoring x x x x x x x x x x x x x x x x x x x x x x x x x x xxxxxx

CZ00.10.03 20/06/00

CZ 00.10.03

Handing-over x x x x x x x x x x x x x x xxxxxxx

b) Business relatedinfrastructure

(ba) Science-Technology Park

Tendering x

CZ00.10.03 20/06/00

CZ 00.10.03

Contracting x

Monitoring x x x x x x x x x x x x x x

Handing-over x

(bb) Grant Scheme

CZ00.10.03 20/06/00

CZ 00.10.03





CZ00.10.03 20/06/00

CZ 00.10.03

c) HRD: Grant Scheme




CZ00.10.03 20/06/00

CZ 00.10.03


CZ00.10.03 20/06/00

CZ 00.10.03

Cumulative Contracting and Disbursement Schedule for the Project (MEUR) Annex 3

Cumulative Quarterly Contracting Schedule (MEUR)

Project 4Q/00 1Q/01 2Q/01 3Q/01 4Q/01 1Q/02 2Q/02 3Q/02 4Q/02 1Q/03 2Q/03 3Q/03 TotalInvestment in TargetRegion NUTS II Ostrava

4.00 8.00 8.00

Cumulative Quarterly Disbursement Schedule (MEUR)

Project 4Q/00

1Q/01

2Q/01

3Q/01

4Q/01

1Q/02

2Q/02

3Q/02

4Q/02

1Q/03

2Q/03

3Q/03

4Q/03

1Q/04

Total

Investment inTarget RegionNUTS II Ostrava

0.50 1.00 1.50 2.00 2.50 3.50 4.50 5.50 6.00 6.50 8.00 0 0.00 8.00

Annex 4

Grant Scheme for support of infrastructure for business and tourismIndicative list of sub-projects

CZ00.10.03 20/06/00

CZ 00.10.03

Title of the project Totalbudget(EUR)

Beneficiary Activities Level ofpreparedness

Winter sports area Morávka/ Beskydy 320 000 Association of municipalities Morávka,Pražmo , Raškovice

Building of the ski lift, lightening,snow board park, children skiingschool.

PP

Heritage Trail “ Lašsko “ 12 000 City of Kopøivnice Building of the heritage trail (10 km),equipment with informationsignboards.

PP

Compulsory car - park in the Jeseníky Mountains 110 000 District office Bruntál Building of the new car parkgathering all visitors´ cars forenvironmental reasons.

PP

Extension of the Heritage Trail “ Staré Hliništì “ 10 000 City of Krnov Reconstruction of the road to theheritage trail, equipment with newsignboards, enlargement of the trail.

PP

Outlook-tower reconstruction of Cvilín 22 000 City of Krnov Reconstruction of the historicaloutlook-tower.

PP

Outlook-tower reconstruction of “ Hans Kudlich” 10 000 Municipality of Úvalno Reconstruction of the outlook-tower. PPExtension of the cycle path system in Opaviceriver Basin

80 000 Euroregion Silesia Reconstruction and enlargement ofthe cycle path marking.Reconstruction and completion of thecycle path.

FS

Connection of the cycle path network in Ostravaand Karviná districts

40 000 Euroregion Tìšínské Slezsko Connection of cycle path networks. PP

Completion of the cycle path Ostrava – BeskydyMountains

340 000 City of Ostrava, City of Frýdek Místek,District office Frýdek Místek

Completion of the cycle pathbetween Ostrava and Beskydymountains.

PP

Cycle path “ Prajská cesta” surface reconstruction 110 000 District office Opava Reconstruction of the surface ofcycle path in district Opava.

PP

Covered swimming pool Frenštát p. R.reconstruction

160 000 City of Frenštát p. Radhoštìm Reconstruction and modernisation ofswimming pool.

FS

CZ00.10.03 20/06/00

CZ 00.10.03

Title of the project Total

budget(EUR)


Compulsory car - park outside of the Historicalreservation Štramberk

252 000 City of Štramberk Building of the new car park whichwill be situated outside the citycentre.

FS

Compulsory car - park Nižní Lhoty 25 000 District office Frýdek - Místek Building of the new car parkgathering all visitors´ cars forenvironmental reasons.

FS

Transport infrastructure for an improved access tothe tourism centres :- local road to the Sport Centre Bystøice- local road to the tourist paths in Dolní Lhota- new communication to the Iodine Spa Klimkovice- communication to the Mining Museum Ostrava- Petøkovice

15 00024 00048 000160 000

Municipality of BystøiceMunicipality of Dolní LhotaDistrict Office Nový JièínCity of Ostrava

Building of the newcommunication infrastructuresleading to the sport centre, cyclepath, tourist path, spa and museum.

FSFSPPPP

Regional Tourism Information System upgrading 50 000 Association of municipalities of theNorth Moravia and Silesia

Update of the equipment forregional tourist information system- PC, software, etc.

FS

Tourism reservation and orientation system 60 000 Association of the municipalitiesBeskydy – Valašsko

Purchase of the equipment forinformation and reservation system.

FS

“Panorama” tourism TV monitoring system 30 000 Relevant municipalities in tourismcentres

Purchase and installation of theequipment for TV monitoringsystem.

FS

Equipment for the Mountains Rescue Services( special transport and rescue apparatus)

170 000 Mountains Rescue Services Beskydy,Mountains Rescue Services Jeseníky

Purchase of the equipment forM.R.S.(special transport and rescueapparatus)

PP

CZ00.10.03 20/06/00

CZ 00.10.03

Title of the project Totalbudget(EUR)


Skiing area Bílá/Beskydy ( infrastructure of skilift and piste)

70 000 Municipality of Bílá Updating of the infrastructure of skilifts and piste.

FS

Equipment of the professional TourismAgencies, Tourist- and Info-centres withinregion

222 000 Relevant municipalities and Districtoffices as a owners or partners of theAgencies in the region of the NorthMoravia and Silesia

Updating of existing tourismagencies, and equipment of the newagencies by the PC´s, copiers,software, etc.

PP

Promotion strategy set up and campaign aboutthe regional tourism products

200 000 Association of municipalities of theNorth Moravia and Silesia

Promotion strategy set up andpreparing of the propagationmaterial, media communicationcampaigns about the tourismproducts.

FS

Public camping Baška 70 000 Municipality of Baška Reconstruction and building of thepublic camping.

PP

Public camping Sobìšovice 50 000 Municipality of Sobìšovice Reconstruction and building of thepublic camping.

PP

Reconstruction of public swimming poolJablunkov

240 000 Municipality of Jablunkov Reconstruction of the swimmingpool.

FS

Enlargement of the roller skates park in Opava 11 000 City of Opava Buying of the new equipment for theskates-park.

FS

Public camping Starý Jièín 122 000 Municipality of Starý Jièín Reconstruction and building of thepublic camping.

FS

FS - Feasibility Study, PP - Physical Planning

The above list represents projects which are in advanced stage of preparation and which may, following the launch of the programme, apply forfinancing.

CZ00.10.03 20/06/00

CZ 00.10.03

CZ00.10.03 20/06/00

CZ 00.10.03

Annex 5Implementation mechanism of the Fund for promotion of intangible factors ofcompetitiveness in SMEs

For Measure 1 programme TRANSFER is being preparaed and for Measure 2 programmeJAKOST (QUALITY) is being prepared. The selection procedure will be carried out by theImplementing Agency under the supervision of the SMMC.The responsible authority of this project component will be the MIT, which is responsible forthe state industrial policy, trade and international trade policies, raw materials, energyindustry, mining and extraction, branches of industry, small and medium enterprises,technical standards, metrology and testing, industrial research and development (see CzechLaw No. 2/1969). The MIT as a central body of national administration is then responsible forthe overall management of the industrial sector. The MIT also supervises the Czech EnergyInspection, Czech Trade Inspection, Hallmark Office and Licence Office. In its managingactivity will the MIT closely co-operate with the Sectoral Monitoring and ManagingCommittee “Industry“ and relevant Regional Monitoring and Managing Committee.Operational ProceduresThe Business Development Agency Prague will be subcontracted by the IA (the CRD) for thisproject for management of its productive sector component. The BDA will prepare a fullpackage of operational gidelines for the promotion of the intangible factors ofcompetitiveness in SMEs incl. detailed selection criteria and procedures, an application form,instructions for applicants, draft agreements on award of grants, provision of payments,description of monitoring and evaluation mechanisms and financial monitoring/control. DraftOperational Procedures will be submitted to the already existing Sectoral Monitoring andManagement Committee “Industry“ (SMMC-Industry). Following the SMMC-Industryapproval it will be submitted for the Commission approval prior to the issue of a call forproposals.

The SMMC-Industry will include representation by members of the respective RMMC toensure that the RMMC has a complete overview of funds and activities flowing into theregion.

Call for ProposalsThe implementing structures (BDA Prague) on behalf of the Ministry, will issue a call forproposals. The call will be publicised widely – announced in various commonly used mediaavailable for public (press, web-sides and others). Application forms will be available at thePrague BDA and its regional contact points (especially RPICs and BICs), as well as all MITagencies in the target regions. Advice and guidance to potential applicants will be providedby appointed regional bodies The programmed support will be open for all legal entitiesresident in the respective region, on condition that the money will be used for the benefit ofthe region, according to the set criteria.

Submission of ApplicationsApplications will be submitted to the the appointed regional bodies by the requireddeadline.The process will be supervised by the Prague BDA in the regions. The applicationswill consist of a duly filled application form and supporting documentation as indicated in thecall for proposal.

Selection of Applications

CZ00.10.03 20/06/00

CZ 00.10.03

Establishment of Short-listThe appointed regional body will carry out an assessment of the applications submitted on thebasis of core criteria, accessing especially regional development aspects of the project. Thefinal evaluation and the Short-list resulting from this assessment will be prepared by thePrague BDA, This list will then go to the SMMC–Industry for its approval, and decision onthe grant award. The final list of projects will be forwarded via the Prague BDA to the MIT,for their overall approval of the package, with respect to the formal compliance of thecompanies shortlisted with publicly available information. A final shortlist of approvedprojects will then be submitted to the European Commission for information. Theauthorisation of the projects selected will be provided by the Deputy-PAO of MIT Mr.Jaroslav Koneèný (General Director of the European Integration Section and minister’sauthorised representative for the EU).

Grant AwardOn the basis of the final list of projects grants will be awarded through the conclusion of aGrant Agreement between the BDA, Deputy-PAO and a successful project promoter.Maximum Phare contribution per Grant Agreement will be 300.000 EUR. The minimum co-financing contribution per project is expected 25 % of the total eligiblecosts. Public co-financing sources will be provided by the MIT for all measures.Financial managementThe financial management of the Fund for the promotion of intangible factors ofcompetitiveness will follow the standard rules and principles of Phare financial management.The BDA (Prague) will be responsible for the distribution of the funds allocated to this Fundto project promoters. Payments will be based on claims certified by the respective regionalBDA branch and will be made by the IA (the CRD) upon authorization or based on request bythe MIT Deputy-PAO.

Monitoring and EvaluationThe SMMC-Industry will ensure the strategic monitoring of the entire scheme, i.e. review ofprogress, assessment of achievements with respect to the strategic objectives, analysis ofproblems and recommendations for further action. The Prague BDA together with itsregional branch will carry out the operational monitoring and inspection of individualprojects. The BDA will prepare and submit regular technical and financial monitoringreports to the SMMC-Industry and to the IA. The BDA will also report formerly to the RMMCwhich will have an overview of the overall co-ordination of all activities to be implementedunder Phare 2000 investment in ESC in the respective region. The final assessment ofprojects will be done according to the criteria indicated in the Pilot SOP Competitiveness.

Financial Control and AuditRegular financial control and monitoring will be carried out by the regional branch and theBDA through certification and checking of financial claims. On-the-spot visits will be carriedout by the BDA and the Inspection Department and/or Budget and Finance Department of theMIT. Financial inspection and audit may also be carried out by the EC and the EuropeanCoA

CZ00.10.03 20/06/00

CZ 00.10.03

Annex 6Implementation mechanism of the Grant Scheme for support of business and tourisminfrastructureThe Grant Scheme is identical to that run under the SF-pilot programme in Jeseniky micro-region (CZ 9807-01-04-0002) and it is modelled on the approaches of the CBC Small ProjectFund.

Operational ProceduresThe IA (the CRD) will be responsible for the overall supervision of the Grant Scheme inaccordance with the rules and criteria laid in detail in the operational guideline for theGrant Scheme which will be worked out by end of June. The RMMC will be responsiblein the region for the implementation of the Scheme in line with the objectives and rulesset out in the guideline. The day-to-day management of the Grant Scheme will becarried out by the Secretariat/Regional Executive Unit. The Grant Scheme´s financialmanagement will follow the rules and principles of Phare financial management.Call for ProposalsThe secretariat on behalf of the RMMC, will issue the calls for proposals. Widedistribution within the region must be ensured.Submission of ApplicationsApplications must be submitted to the secretariat by the required date. The applications willconsist of the documentation indicated in the call for proposal (e.g. description of theinvestment sub-project, budget, proven applicant´s co-financing, proven technicalpreparedness of the project etc.)Selection of ApplicationsIn compliance with the measures identified for support under this Grant Scheme the SelectionCommittee will carry out the assessment of applications. The RMMC will oversee thewhole selection process, refine and further specify selection criteria where required.Establishment of Long-listThe applications submitted will be assessed on the basis of the general/formal selectioncriteria, and a draft Long-list will be submitted by the secretariat to the RMMC for approval.Establishment of Short-listThe Selection Committee will carry out a detailed assessment of the applications retained onthe approved Long-list on the basis of the general quality and specific (i.e. measure-related)criteria.A Short-list resulting from such assessment will be submitted to the RMMC for approval andsubsequently, through the IA to the European Commission for final endorsement. Specificrequirements will be applied to ensure the compliance of selected projects with nationalpolicies (see project fiche , article 6, implementation arrangements). The endorsement notewill be sent to the IA, with copy to the secretariat.

Grant AwardOn the basis of the finally endorsed Short-list Grants will be awarded through the conclusionof a Grant Agreement between the secretariat under the direction of the IA and the successfulproject promoter (beneficiary). Maximum Phare contribution per Grant Agreement will be

CZ00.10.03 20/06/00

CZ 00.10.03

Financial managementThe Grant Scheme’s financial management will follow the usual rules and principles of Pharefinancial management.The secretariat under the direction of the IA will be responsible for the complete financialmanagement of the funds allocated to this project. It will open a special account for theoperations of the Grant Scheme. From this account Phare contributions to the sub-projectswill be paid.Funds will be transferred from the IA to the special account on the basis of secretariat´sfinancial reports.

Monitoring and ControlThe secretariat will carry out the operational monitoring and control of individual sub-projects.The RMMC will ensure the strategic monitoring of the entire Scheme, i.e. review of progress,assessment of achievements with respect to the strategic objectives, analysis of problems andrecommendations for further action.

AuditDuring the implementation of the Grant Scheme and after its ending audits will be carried outby an independent auditor. Financial control and audit may also be carried out by theCommission and the European Court of Auditors.

CZ00.10.03 20/06/00

CZ 00.10.03

Annex 7Implementation Mechanism of the HRD Fund

Operational ProceduresThe National Training Fund (NTF) will be subcontracted by the IA for this project (the CRD)for management of its HRD component (HRD Fund). The NTF will prepare a full package ofoperational procedures for HRD Fund incl. detailed selection criteria and procedures, anapplication form, instructions for applicants, draft agreements on award of grants, provision ofpayments, description of monitoring and evaluation mechanisms and financial control andaudit. Draft Operational Procedures will be submitted to the already existing SectorMonitoring and Management Committee for HRD (SMMC-HRD). Following the SMMC-HRD approval it will be submitted for the Commission approval prior to the issue of a call forproposals.

Call for ProposalsThe NTF on behalf of the Ministry of Labour and Social Affairs will issue the calls forproposals. Wide distribution within the region must be ensured. Publication will bemade in regional press, www pages of central and regional bodies involved and othermedia. Application forms will be available at all district Labour Offices and theirbranches and also at the Regional Labour Office (they are currently being established atNUTS II level). Advise and guidance to applicants will be provided by labour office staff.Any physical or legal entity resident in the /respective region or Czech Republic/ canapply for a grant.

Submission of ApplicationsApplications will be submitted to the Regional Labour Office by the required date. Theapplications will consist of a duly filled application form and supporting documentation asindicated in the call for proposal.

Selection of ApplicationsEstablishment of Long-list

CZ00.10.03 20/06/00

CZ 00.10.03

The the NTF will assess the applications submitted on the basis of the core selection criteria,prepare a Long-list and submit it to the Regional Selection Committee for technical appraisal.Members of the Regional Selection Committee will be recruited from experts in HRD fieldand appointed by SMMC-HRD.

Establishment of Short-listThe Regional Selection Committee will carry out a detailed assessment of the applicationsretained on the approved Long-list on the basis of specific selection criteria. A Short-listresulting from this assessment will be submitted by the NTF to the SMMC-HRD for approval.A final list of approved projects will then be submitted to the European Commission forinformation.

Grant AwardOn the basis of the final list of projects grants will be awarded through the conclusion of aGrant Agreement between the NTF, Deputy-PAO and a successful project promoter.Maximum Phare contribution per Grant Agreement will be 300.000 EUR. The minimumnational co-financing contribution will be 25 % of the total public expenditure. Public co-financing sources will be provided by MoLSA for all proposed measures.

Financial managementThe HRD Fund’s financial management will follow the standard rules and principles of Pharefinancial management. The NTF as an agency subcontracted by the IA for the management ofthe HRD Fund will be responsible for the distribution of the funds allocated to the Fund toproject sponsors. Separate co-financing algorithms for co-financing of individual sub-projectswill be prepared. Payments will be based on claims certified by the respective labour officesand will be made by the IA (the CRD) upon MoLSA may stop co-financing.

Monitoring and EvaluationThe SMMC-HRD will ensure the strategic monitoring of the entire scheme, i.e. review ofprogress, assessment of achievements with respect to the strategic objectives, analysis ofproblems and recommendations for further action. The NTF together with labour offices willcarry out the operational monitoring and control of individual projects. The NTF will prepareand submit regular technical and financial monitoring reports to the SMMC-HRD and to theIA. The NTF will also report to the RMMC which will be responsible for the overall co-ordination of all activities to be implemented under Phare 2000 investment in ESC in the/respective region/.

Financial Control and AuditRegular financial control will be carried out by labour offices and the NTF throughcertification and checking of financial claims. On the spot visits will be carried out by labouroffices, the NTF and the MoLSA’s Financial Control Unit. Financial control and audit mayalso be carried out by the Commission and the European Court of Auditors.

CZ00.10.03 20/06/00

CZ 00.10.03

Standard Summary Project Fiche -...

Documents

Transcript of Standard Summary Project Fiche -...