FREQUENTLY ASKED QUESTIONS – SERBIA AND MONTENEGRO
1. Is there a way to finance activities retroactively? Can preparatory activities be
financed? Can we finance translation of the project application from the project?
Only activities starting after the day of signature of the contract are eligible for financing.
Translation of the application can therefore not be financed from the project.
2. Can one applicant submit more than one application and is it possible that one
applicant be awarded more than one grants?
An applicant from Serbia and Montenegro can submit more than one application. An
applicant can get more than one grant. However, the evaluation committee might decide to
limit the number of grants per applicant.
3. Can the activity of the partnership be establishment of larger (new) institution?
Yes, if it logically follows requirements of the Call for Proposals. However, the applicant for
the project needs to be an existing legal entity.
4. Is it obligatory that supporting documentation is translated to English and if yes,
is official authorised translation required?
All the supporting documents need to be translated into English. The registration or applicable
document need to be officially translated (certified translator). For statutes and financing
statements faithful translation is sufficient.
5. For which year do financial reports need to be presented?
Taking into account that the deadline for submission of proposals is 17 July 2006, the
financial reports for the year 2005 need to be presented as supporting documents.
6. Who is sending the application in case of joint projects? Partner from SCG or
In case of integrated projects, the leading applicant can be either from Bulgarian side or from
Serbia and Montenegro. The leading applicant sends the application to the Joint Technical
7. How can we subcontract in case of purchases of equipment or services above
Please refer to the Article 2 of the Guidelines for applicants setting the rules for the
implementation of activities under this Call. Namely, the rules of the Practical guide to
Contract procedures for EC external actions – PRAG (available on the Internet at this address:
http://www.europa.eu.int/comm/europeaid/tender/practical_guide_2006/index_en.htm ) apply
for all the procurement to be conducted by Grant beneficiaries.
The PRAG procurement rules indicate that for the procurement of a value above 5000 EUR
(upper limit depends on the type of procurement : supply €5,000 – 30,000, services: 5,000 –
200,000 ) a so called „‟Competitive negotiated procedure‟‟ applies. This procedure means that
you can invite a number of companies to submit to you their offer on the basis of a standard
tender dossier. You should receive at least 3 compliant offers out of which the most
favourable offer, according to the rules, should be selected.
8. What form of document do applicants need to use for tendering under “Competitive
In case of competitive negotiated procedure standard tender dossier in accordance with PRAG
templates has to be prepared.
9. Will a Serbian complementary project with a partner who is implementing the
same project on the Bulgarian side, be better evaluated?
It is obligatory to have at least one cross border partner for each type of the eligible projects.
For complementary projects it would be reasonable to have as a partner the institution
implementing the complementary project on the other side of the border. However, the
evaluationwill be conductedin accordance with the criteria presented in the Guidelines for
10. May private companies from Serbia be partners in projects? May private partners
receive funding from the grant?
No, private companies in Serbia cannot be partners in projects. They cannot receive a grant
from the project. They may however be involved in the implementation of the projects as sub-
contractors. Note that sub-contractors need to be identified on the basis of a tender process in
line with the PRAG.
11. Can civil servants from Serbia and Montenegro participate in implementation of the
projects? Who is considered as civil servants?
Civil servants can participate in implementation of projects in Serbia and Montenegro.
However the salaries of civil servants cannot be paid from the grant. They are considered as
eligible cost of the project but can only be taken into account as co-financing (right side of the
Considered to be civil servants are employees of national, regional and local authorities
(ministries, districts, municipalities).
12. What documents are obligatory to be sent by the deadline (17th of July) and when do
we send supporting documents listed at the end of the Guidelines?
Please refer to the Article 2.2 of the Guidelines for applicants. Applications must be submitted
using the application form (Annex A), Budget (Annex B), Logical Framework (Annex C),
CVs (Annex E) and Works (Annex F) (where applicable only), annexed to these Guidelines.
The application form (Annex A) includes a concept note which must also be completed.
Applicants who have been provisionally selected or listed under the reserve list will be
requested to supply supporting documents listed at page 28 of Guidelines for Applicants. The
deadline for submission of supporting documents is 5 working days starting from the moment
of receiving the information letter from JTS.
13. Is it obligatory for faculties (private and public) and governmental institutions to
submit statutes and accounts?
Yes, it is obligatory for faculties to submit the statues if they exist. It is obligatory for them to
submit accounts. For governmental institutions it is obligatory to provide statute or equal
proof (copy of establishment act from official gazette).
14. Can individuals from Bulgaria be engaged as sub-contractors or external experts),
even though they are not members of the project team?
In case of Serbian applicants the residents of all EU countries or non-EU countries which are
eligible under CARDS financing instrument can be engaged as external experts, providing
they are sub-contracted in accordance with PRAG rules.
15. Can a complementary project which is not implemented in the eligible territory of
the programme be tied up with a cross-border project?
No, the complementary projects can only be implemented in relation to the mirror actions
which take place in the eligible region.
BUDGET AND FINANCES
16. What can be the maximum amount of the grant in case of integrated projects?
300,000 or 500,000 (400,000) EUR?
The maximum amount of the grant in case of integrated projects is 300,000 EUR on the
CARDS side and 200.000 (100,000) EUR on the Phare side. So in this case it is 500,000
(400,000) EUR overall.
17. What is considered as a co-financing contribution? Can that be shown as a cash
deposit or estimate of the value of invested assets?
Co-financing represents in cash (monetary) contribution or contribution through salaries paid
to the members of the project team.
18. Can co-financing be provided through the use of the real-estate or use of existing
Use of premises or the equipment of the applicant is considered a contribution in kind.
Contribution in kind is not considered as a co-financing. Co-financing must be provided from
applicant‟s or partners‟ own resources or from sources other than a budget of the European
Communities during the implementation of the Action
19. In case of joint projects, how do we calculate the size of co-financing? Is it overall or
on each side of the border separately?
Co-financing is required on each side of the border in accordance with the requirements
presented in the Guidelines for Applicants. Please refer to the Article 1.3 of the Guidelines. In
case of a joint project the Serbian cross-border applicant will sign a separate grant contract
with the European Agency for Reconstruction in Serbia and Serbian cross-border applicant
has to provide its part of co-financing for the action..
20. Which funds can be used for co-financing?
Co-financing must be provided from applicant‟s or partners‟ own resources or from sources
other than a budget of the European Communities during the implementation of the Action
21. Is a co-financing a percentage of the project value or grant value?
Co-financing shown in the work-sheet 2 of the excel budget table is the percentage of the total
project value (Total eligible costs). Total eligible costs represent total value of the project
including both the grant contribution and the co-financing contribution.
e.g.: If the total project value is 100,000 then 10,000 represent 10% of co-financing and
90,000 is a grant contribution. Please take care to apply the co-financing rate to the total
project value not to the value of the grant only.
22. What is relevant in the budget table – net (netto) or gross (brutto) salaries?
In the budget table the salaries and all related costs of work should be presented (brutto-brutto
23. Is it necessary for each budget item to be specified? For example, how should we
specify travel expenses?
All items need to be broken down into their individual components as outlined in the budget
Please provide details on calculations of these costs in the point „‟3. Budget‟‟ of the
For international air travel an estimate of prices of plane tickets (APEX) can be provided. For
local transport an estimate of monthly cost (no. of kilometres * value of kilometre according
to national rules) can be provided.
24. Do we need to plan auditing costs for the project?
Yes. All the projects financed from the project need to be audited. The auditing costs are
eligible costs of the project and have to be presented as a budget category . A normal auditing
cost for such projects is 2-3% of the total value of the project.
25. What are the administrative costs? How to justify them?
The administrative costs are indirect costs incurred by the Beneficiary of the Action for the
implementation of the project. For instance, this could be the use of an existing office of the
project applicant or partners (heating costs, telephone, internet, rent), which is partially used
for the purpose of a project financed from this call. If the activities of the grant financed
project represent 50% of the overall activities of the office then 50% of the office costs can be
covered from the administrative costs.
The method of justification of these costs is submission of the overall bills for the office, with
the indication what percentage of the total costs is allocated to the grant financed project.
26. Can a partner from Bulgaria be financed from CARDS grant?
In principle the funds allocated from CARDS can only be spent on the Serbian side of the
border. Bulgarian partners can be financed for certain activities that take place in Serbia
(accommodation costs, travel costs, participation in trainings). This can be applied especially
in case of complementary and simple projects to provide some benefit for the Bulgarian
partner. In case of integrated projects it would be advisable that each side finances their
proportion of costs.
27. Is purchase of equipment limited to 20% of the grant or 20% of the value of the
project (total eligible costs)?
The purchase of equipment is limited to a maximum of 20% of the grant.
28. Does the account of the applicant need to be foreign currency account and what will
be the currency of payment?
The applicants will need to open a separate account for the purpose of the project. The
account may be in Euros or in the local currency. In case of local currency account the
payments will be transferred from EAR in Euros but will be converted into the local currency
in accordance with the local banking regulations.
29. How will VAT be paid within the project?
Under European Union bilateral agreement with the Republic of Serbia all EU funds spent on
the implementation of projects are exempt from VAT. Grant beneficiaries may apply to the
relevant national authorities to receive an exemption certificate.