Tuesday, November 1, 2016

The funding of companies who wish to the production of organic materials and / or products

The project of the Ministry of Environment, Water and Forests regarding the Start-Up Pilot Environmental Program for technologies which develop the production of organic materials and / or products aims to grant funding for the production technologies of materials and organic products using natural raw materials and secondary raw materials, thus inserting them in various sectors of the green economy. The purpose of this project is to encourage the development and production of environmentally friendly products.
Regarding the conditions that the applicant must meet to be eligible as beneficiary of the project, the law provides the following:
• the applicant is a Romanian legal entity, doing business in Romania;
• the applicant functions and develops economic activity for at least 1 year at the date of submitting the funding dossier, and has at least one closed financial year;
• the object of activity   allows the production of organic materials and products;
• the applicant is the owner, administrator, grantee or lessee of the building and the land on which the project will take place;
• the applicant is not in any of the steps or procedures of company termination;
• the applicant has fulfilled all the financial obligations to the state;
• the applicant has no banking interdiction;
• the applicant complies with EU regulations on the de minimis aid;
• the applicant did not infringe the laws on environmental protection and does not sponsor activities with detrimental effect on the environment;
• the applicant hasn’t obtained or isn’t about to obtain funding through projects or programs financed from other public funds;
• the applicant holds all the documents required by the feasibility study;
• the de minimis aid requested in the application for funding will not be used for carrying out activities in one of the sectors prescribed by law;
• The total amount of the de minimis aid from which the applicant benefited for a period of 3 consecutive years, cumulated with value of financial allocations granted under the de minimis scheme, isn’t higher than the RON equivalent of 200.000 EUR, at the date of the application;
Regarding the funding method, the funding guide stipulates that the granted amount will be equal to the eligible costs of the project, without being able to exceed the RON equivalent of the maximum level of the de minimis aid of 200.000 EUR, at the date of signing the grant contract.
Each applicant may submit one grant application during a session for submitting projects, and funding of the program is made from the revenues of the Environment Fund, as a percentage of the eligible costs of the project, and the unfunded percentage of eligible costs represents the contribution of the applicant, made out of personal financial sources;
Annually, more funding sessions can be organized depending on the allocated amount. After the publication of the opening funding session on the Internet, the applicant can submit the funding application which will be analyzed in terms of administrative and eligibility compliance of the applicant or project, after which the analysis and project selection will take place.
Regarding a definition of eligible costs, the law defines them as being represented by:
• Investments for setting up a new establishment, extension of existing establishment, diversification of production unit, by making new, additional products or a fundamental change in the production process of an existing establishment;
• realization of buildings and / or constructions required for the establishment and installation of machinery, plants and equipment purchased under the project, with associated facilities - electrical installations, gas supply, heating, ventilation, air conditioning, telephone, PSI, intranet. Plants mentioned above are only related to the building interior;
• purchase of machinery, plants, new equipment needed to fulfill the objectives of this project;
• installation of machinery and technological equipment;
• installation and commissioning; training the operating personnel - necessary costs of training / schooling of the staff for the proper and efficient use of tools and technologies; technological tests and quizzes - the cost of execution samples / tests included in the project, expertise at the reception, homologation;
f) feasibility studies, engineering design, up to 8% of the eligible costs for the basic investment.
The Annex of the Guide states that the documents to be submitted by the applicant are:
• application;
• foundation documents of the applicant;
• certificate of registration at the National Trade Register Office;
• tax certificate on payment obligations to the state budget;
• tax certificate on local taxes and local income taxes;
• fiscal record;
• clearance certificate on obligations to the Environment Fund;
• certificate issued by the Trade Register;
• documents that prove the quality of the applicant as owner, dealer or administrator, tenant of the building on / in which the project is implemented;
• judgment / decision of the deliberative forum showing the agreement regarding contracting the funding, ensuring their contribution for implementing the project, the project manager, the person appointed to represent the applicant in relation to the Authority;
• judgment / decision of the deliberative forum showing agreement on guaranteeing the funding;
• affidavit regarding the de minimis aid obtained in the last 3 years, respectively 2 previous fiscal years, and the tax year in which the owner enrolls in the program;
• affidavit of the legal representative containing the main activities, sectors in which the applicant actually activates and the activity for which the funding is requested;
• the annual financial situation at the end of the last financial year;
• grid computing's economic and financial situation of the applicant;
• bank reference letter which will include the history of the applicant's request for at least one year;
• feasibility study;
• technical project.

For more information regarding the Environmental Program for technologies which develop the production of materials and / or organic products do not hesitate to contact one of the lawyers of the law firm Darie, Manea & associates.