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European structural funds in Poland
Contents of this section:
Basic information
Value of structural funds in Poland, 2004-2006
Using structural funds
Where to find information on structural funds?
Supporting investment – subsidies for companies
How to effectively apply for European structural funds?
Basic documents for entities submitting the projects and the ultimate beneficiaries
Procedure of assessing the application
Path for distributing the funds
Glossary
Basic information
Structural funds are the basic instruments of the EU's structural policy, the aim of which is to support the restructuring and modernisation of the EU Member States, thus closing the development gap between different regions of the EU.
There are four Structural Funds:
- European Social Fund (ESF)
- European Regional Development Fund (ERDF)
- The European Agricultural Guidance and Guarantee Fund (EAGGF)
- Financial Instrument for Fisheries Guidance (FIFG)
And there is also the
- Cohesion Fund (CF) - though not a structural fund, it is an instrument of EU structural policy.
The way EU Member States benefit from the structural funds is set out in the National Development Plan (NDP) for 2004-2006, and the Community Support Framework (CSF), which contains the strategy of using structural funds in Poland. The CSF is implemented with the use of the operational programmes.
There are five Sectoral Operational Programmes (SOPs):
- SOP Improvement of the Competitiveness of Enterprises (SOP-ICE)
- SOP Human Resources Development (SOP-HRD)
- SOP Restructuring and Modernising Food Sector and Rural Areas Development (SOP-RMFSRAD)
- SOP Fisheries and Fish Processing (SOP Fisheries)
- SPO Transport; plus
- Integrated Regional Development Operational Programme (IRDOP)
- Strategy of using the Cohesion Fund (CF)
- Operational Programme Technical Assistance
Structural funds also finance EU's Initiatives, which are programmes of non-refundable aid organised by the EU for particular societies and social groups. They aim at solving problems arising across the entire EU
Currently there are four Initiatives:
- INTERREG III - cross-border, international and inter-regional cooperation,
- EQUAL - fighting all forms of discrimination and inequalities on the labour market,
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URBAN - economic and social revitalisation of urban areas threatened with or suffering from structural unemployment and social problems,
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LEADER+ - innovative measures aiming at developing rural areas in poore areas of the European Union.
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Value of structural funds in Poland between 2004-2006
Structural funds designated for Poland between 2004-2006 amount to €14.9 billion, of which €11.4 billion will be provided by the EU. The largest amounts of funds are at the disposal of ERDF (60.9%) and IRDOP (39.2%).
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Structural funds for Poland - 2004-2006 |
€millions |
% |
|
Total value of funds |
14,8915 |
100 |
|
Funds provided by the EU |
11,368.6 |
76.3 |
Structural funds:
|
Fund |
€ millions |
% |
|
ERDF |
4,652.8 |
60.9 |
| CF |
3,733.3 |
32.8 |
|
ESF |
1,748.9 |
22.9 |
|
EAGGF |
1,055.0 |
13.3 |
| FFOR |
178.6 |
2.4 |
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Programmes and Initiatives |
€ millions |
% |
| IROP |
2,869.50 |
40 |
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SOP Improvement of the competitiveness of enterprises |
1,300.0 |
18 |
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SOP Human Resources Development |
1,270.4 |
17 |
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SOP Restructuring and Modernising Food Sector and Rural Areas Development |
1,055.0 |
14 |
| SOP Transport |
627.20 |
9 |
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SOP Fisheries and Fish Processing |
178.60 |
2 |
|
OP Technical Assistance |
20.0 |
<1 |
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Initiatives |
7,319.0 |
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Financing of operational programmes in Poland between 2004-2006:
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Structural funds (€ billion)
- Operational programmes - 7.32
- EU Initiatives - 0.315
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Co-financing (€ billion)
- Co-financing OP - 2.76
- Co-financing EUI - 0.66
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EU total - 11.37 |
Poland in total - 3.53 |
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Using structural funds
Acces to EU structural funds is based on the following general rules:
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Allocation of the funds is carried out based on the open competition between projects announced by the Implementing Institution
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The entity, which is granted aid, receives a non-refundable subsidy allocated in PLN
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The subsidy is paid out as a partial reimbursement or in some cases full reimbursement of the expenditures
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Each programme, measure includes a list of expenditures, which are refunded from the structural funds (eligibility of expenses)
- Financing of a project takes into account the composition of money from the structural funds and the applicants own funds (financial engineering)
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Where to find information about structural funds?
Basic manual for entities interested with structural funds:
www.funduszestrukturalne.gov.pl/english/
Other sources:
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Supporting investment - subsidies for companies
Instruments supporting investments are included in three operational programmes:
Instruments are divided into two groups:
- Instruments common for all enterprises
- Instruments strictly addressed at SMEs
Aid designated for supporting investments within the plan for 2004-2006 are mostly directed at SMEs, which constitute 99% of all the companies in Poland. The aabove mentioned programmes envisage eleven measures for supporting investments.
Graph 1 Programmes and measures within structural funds
Please click on Graph 1 formore details.
Graph 2 Subsidies from European Structural Funds are designated for financing of:
Please click on Graph 2 for more details.
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How to apply effectively for European structural funds?
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The applicant must prepare a project in accordance with one of the priorities in a programme, which will later be submitted to the competition/tender
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The applicant must have his own funds for financing the project (part of which will be reimbursed from the structural funds, if the application is accepted)
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The applicant must plan his expenditure to carrz out the project whist maintaining the cash flow necessary for the project's realisation
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The applicant should be familiar with the following documents:
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Particular sectoral operational programme
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Supplement to the operational programme
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Guide for the applicant
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Instructions for filling in an application for the given programme and measure
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The applicant should very carefully fill in the application to avoid formal mistakes
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The applicant should attach all the required documents to avoid the application being rejected for any formal reasons
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Basic documents for entities submitting the projects and ultimate beneficiaries
- Sectoral operational programme,
- Supplement to the programme sets out:
- Detailed description of activities
- Criteria for choosing between projects
- List of implementing institutions, beneficiaries and projects providers
- Indicators monitoring different measures
- Allocation of funds for different measures
- Project provider guide:
- Characteristics of the operational programme
- Application procedures
- Signing a contract
- Payment of funds
- Application for financial aid
- Instructions for filling in an application
- Guidelines for applicants:
- Description of the programme
- Criteria for assessing an application
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Procedure of assessing the application
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ORGANISATIONAL UNITS |
SCOPE OF ASSESSMENT |
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Formal assessment - Implementing institution |
- Completeness of the application
- Correctness of filling in the application
- Signing a declaration
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Technical-economic assessment - Implementing institution and Working Committee in charge of projects assessment |
- Ability of the applicant to finance the project
- Complaisance with the goal of the measure
- Economic feasibility study of the project
- Financial assessment of the rationality of carrying out the project
- Analysis of project execution business plan
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Essential assessment - Working Committee in charge of projects assessment |
- Detailed criteria of assessment, particular for each measure - prepared by an Implementing Institution
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4.3 Path of distributing the funds
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Glossary of terms related to the EU funds
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Term |
Explanation |
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Final beneficiary
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The Institutions and also public and private companies responsible for commissioning operations.
In the case of aid programs (application to art. 87 of the Treaty and In the case of aid granted by institutions nominated by member states) the final beneficiaries are the institutions which grant aid.
There are two types of final beneficiary:
implementing institute
final recipient of aid |
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Ultimate beneficiary |
The person, institution, or community, which ultimately uses the given aid. |
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Effective measures |
A series of Projects which jointly implement the same objective. An effective measure is the intermediary stage between a priority and a project. |
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Payment authority |
The institution nominated by a member state to prepare and submit applications for payment, and also to receive payments from the Commission. In Poland the payment authority is the Ministry of Finance. |
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Intermediate body for management |
A public body or service which is subject to the appropriate authorities responsible for management or payments to which the managing authority delegates part of its powers.
See table: Allocation of responsibility for the field of management of operational programs, section 4.3 |
| Implementing institution |
The public body responsible for recommending the final recipient (by use of tender or competition), for realising an investment project or carrying out a service. |
| Managing authority |
The institution or public body appointed by a member state at a national, regional or local level - or even a member state if it carries out the role of allocating aid – responsible for directing and implementing a particular document.
see table: Allocation of responsibility for the field of management of operational programs, section 4.3. |
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Eligibility (of expenditure) |
Carrying out the expenditure In accordance with the program or project the specific conditions of their joint finance from the aid funds. |
| National Development Plan (NDP) |
The programming instrument forms the basis of specific plans, In the field of structural intervention, and of multi-annual integrated operational programmes, of a horizontal and regional character.
including proposed:
- goals
- actions
- scale of intervention of Structural funds and Cohesion Funds, directed towards lessening the disproportion in socio-economic development between the accession countries and the European Union.
On the basis of this document the accession countries introduce settlements with the European Commission regarding the Community Support Framework |
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Community Support Framework (CSF) |
In accord with Board Regulations no. 1260/1999 introducing the general rules concerning the Structural Funds, the CSF is a document introduced by the European Commission In agreement with a member state specifying:
- strategy,
- priority’s of allocation of Structural Funds and the Member State,
- specific goals,
- the size of the Fund’s contribution and those from other sources,
The document is segregated into priorities and introduced with the aid of one or more Operational Programs. |
| State aid |
The amount of resources allocated from the national budget supporting the subjects of economic investment, particularly In the form of:
- subsidies,
- tax exemptions,
- recapitalisation,
- loans or credits,
- warranties or guarantees at better terms than those available on the free market,
May be granted in the form of direct or indirect aid to businessmen from public funds (e.g. self governing local bodies), and also from public funds issued by other bodies (e.g. public or private bodies directed by the state).
Under articles 87-89 of the Treaty – state aid constitutes an economic advantage for a business that under normal conditions for business activity Gould be impossible to achieve. To the les obvious examples of this transaction fulfilling this condition can be added: e.g. the situation In which an enterprise has privileged access to an infrastructure without being subject to payments. |
| Operational Programme |
Document accepted by the Commission leading to the introduction of CSF (PWW) and comprising of the presentation of priorities, containing multi-annual activities, which can be introduced by:
- one or more funds,
- one or more accessible financial instruments, and
- EIB.
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| Reimbursement of expenditure |
Reimbursement of expenditure by the European Commission within the framework of assistance after its verification is made by the institution of payment. Reimbursement of expenditure is in the form of periodical payments. |
| Programme supplement |
The document forming the cohesive presentation of actions leading to introduction of the appropriate priorities for the Operational Program, prepared by the Member State.
In the document for each course of action, the institutions for management and introduction of the Program are specified, as is the budgetary action and the specific criteria for choosing projects. |
See:
Sectoral Operational Programme Improvement of the Competitiveness of Enterprises,
years 2004-2006 - PROGRAMME COMPLEMENT,
Annex 4, page 239.
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