EADP

 

FREQUENTLY ASKED QUESTIONS & ANSWERS

 

 

GENERAL QUESTIONS

 

Eligibility of Applicants/Partners

 

Q.1   Will municipalities be eligible applicants if they restructure their social security debts and tax debts before the submission deadlines?

A. Yes.

Q. 2.    May Ministry of ..... apply to this grant scheme?

A. No, Ministries and their regional structures are not eligible under this Call for proposals They can only participate as associates. Please see Section 2.1.1 of the Guidelines for applicants.

Q. 3.    May the lead body be the sub-contractor also?

A. Not for the same project.

Q. 4.    Would it be a conflict of interests where the manager of the subcontractor is member of the management team of the leader NGO?

A. Yes.

Q. 5.    Is a private university eligible partner?

A. If the University is registered as a non-profit organization it can be an eligible partner for all the grants for which NGOs are stated as eligible partners, providing it responds to all the other eligibility criteria. Please see Section 2.1.1 of the Guidelines for Applicants. Otherwise it could be involved only as an associate or sub-contractor.

Q. 6. What shall be the latest date for establishing an organization to apply?

A. Please look at the Guidelines for applicants, Section 2.1.1 where all the criteria for the eligibility of Applicants are stated.

Agriculture and Rural Development Component, for proposals from farmer’s  groups each individual farmer have to prove that their MARA registration date is at least three months prior to the date of launching of call for proposal.

Tourism and Environment Component, There is not such requirement

Social Development Component, There is not such requirement. Newly established organizations are the organizations established within a year prior the deadline for this Call for proposals. For small and/or newly established locally based NGOs, any grant awarded must fall between minimum EUR 10,000 and maximum EUR 50,000.

SME Component, for the operating start-ups (or newly established enterprises), they have to prove that their companies are operational at least for three months as of the launching of Call for proposals.

Q. 7.    If an NGO has no accountancy is it eligible to apply?

A. As stated in the Guidelines for Applicants the eligible applicants must be registered/established and/or carrying out operations within the programme area. This is to be proved with official documentation – status/ articles of association, accounts (profit and loss account, balance sheet, etc). Non-availability of this document gives a ground for exclusion of the Applicant from the Evaluation process. Hence NGO that have no official accountancy are not eligible applicants. In case of newly established organisation (eligible applicant only under the Social Development Component) other proof of the legal status and the financial and operational capacity are requested. Please check carefully Section 2.2.1 from the Guidelines for Applicants.

Q. 8. Which Universities and NGO’s can apply?

A. The eligible organizations are the ones fulfil the stated eligibility criteria under Section 2.1.1 and 2.1.2 in the respective Guidelines for Applicants for the different programme Components.

Q. 9.    May vocational high schools apply with a project?

A. Yes, providing they meet the eligibility criteria for applicants and partners stated in Section 2.1.1. of the Guidelines for Applicants and that  the proposed project  responds to the objectives and the priorities of the Call for Proposals?

Q. 10. Is it possible for a group of 10 women to apply for carpet weaving workshops?

A. The Applicants, besides all the other stated eligibility criteria should be a  a registered legal entity Which is to be proved through the requested supporting documents. In this case an ad-hoc group is not eligible to apply under this Call for Proposals.

Q. 11   What are the roles of the associates in the project?

A. As stated in the Guidelines for Applicants “Other organisations may be involved in the action. Organisations that do not comply with the eligibility criteria referred to in Section 2.1.1 may be associated with a project in order to increase the credibility or sustainability of that project. Nonetheless, the associated organisation should be limited to a supporting or secondary role. Such associates may play a real role in the project (for example, as a sponsor, providing technical support), but may not receive funding from the grant. In no circumstances can the costs incurred by an associated organisation be covered by the grant. Associated organisations should express their agreement to their involvement (Section III. 3 of the Application Form).

Q. 12. Will the funds be deposited to the account of the university when a group of student applies?

A. A group of students if not registered as a legal entity could not apply to the Programme, since it is not eligible applicant. The Lead applicant – that is a legal entity - has to open a project specific bank account or sub-account which identifies the funds paid by the Contracting Authority.

Q. 13. Some non-profit making legal persons (schools, universities, municipalities, etc.) can not demonstrate that their operations are strictly non-profit making by submitting a copy of Statutes, which prohibits distribution of profit to shareholders. In that case, what type of documents can they submit?

A. As stated in Section “2.1.1. Eligibility of Applicants” of the Guidelines for Applicants: “Alternatively the Applicant should demonstrate with an audit report covering the last three years that profit has never been distributed to the shareholders, and the Board of Directors should declare that profit will not be distributed to shareholders in the future”. These commitments will be inserted into the eventual grant contract.

If the organization is established on the basis of the Turkish law that prohibits the profit-making nature of that type of the organizations, then the related provisions of the respective Turkish law should be attached to the Application package. (Turkish Law on Education, Municipality Law, etc.)

Q. 14   What kind of documents should schools or civil society organizations submit to prove their establishment?

A. As stated in 2.2.1. “Application form and supporting documents” part of the Guidelines, Applicants and Partners should submit their organisation’s Statutes or Articles of Association, or Certificate of Legal Status / Registration Act signed and dated. Provided that these documents can not be supplied by Applicants and/or their Partners, the relevant provisions of the Law concerning their establishment should be enclosed with the Application Form..

Eligibility of Costs-Budget

Q.15. Is renting of land and buildings eligible cost?

A. As stated in the Guidelines for applicants (Section 2.1.4.) renting of land and buildings is not eligible cost. Hence if an agricultural land/ buildings or premises is rented for production purposes, it will not be eligible cost. But hiring, for example, of a venue for training courses would be eligible. Hiring of buildings e.g. for a social centre in the Social Development Component may be part of the project as well, as long as it is necessary for the implementation of the project and complies with principle of sound financial management, in particular value for money and cost effectiveness.

Q. 16. Could we buy land or buildings?

A. No. Purchase of land or buildings is not eligible cost.

Q. 17. Could part of the funds be used for the acquisition of a site necessary for the project implementation?

A. No, it is not possible.

Q.18.   Could an adjustment be made in the budget form template? Should the applicant prepare complementary annexes or should he add lines to the budget?

As stated in the Guidelines all costs need to be  justified and therefore "All items must be broken down into their individual components. The number of units for each component must be specified". Justification of costs is part of Annex III Budget. Therefore if there is a need to insert rows under the appropriate budget headings of the Budget form – you can do it. İt is also necessary details to be given in the second sheet of Annex III – Justification of costs. 

Q. 19. What is the rate of  per diem for Turkish citizens?

A. The project cost related to travel and subsistence costs for staff taking part in the actionmust not exceed those normally paid by the Beneficiary or their partners, as the case may be; any flat-rate reimbursement must not exceed the scales approved annually by the European Commission. Available on the European Commission’s website http://europa.eu.int/comm/europeaid/perdiem/liste1_en.htm

Q. 20. Will the project preparation costs be financed under the grant?

A. No. The costs for project preparation and planning are not eligible costs. None of the costs made before the contract signing is considered as eligible

Q 21.   May we purchase imported equipment?

A. Yes, provided it is from the eligible states, EU and MEDA countries.

Q 22.   Are the costs related to translation eligible costs or those should be covered by the Applicant or the Partners ?

A. Any expenses made before the signing of the Grant contract with the Contracting Authority will not be accepted as eligible costs. Translation costs incurred during the implementation of the project are eligible and should be budgeted under heading “5.5. Translation, Interpreters” in the budget.

Q. 23. Could the Local Office Costs be used to cover overheads of Partners or Associates?

A. No. Overheads of the Applicant and project partners must be covered within the Administrative costs. Local Office costs include  only costs associated with the setting up of a special office for the purposes of implementing the project, other than the offices of applicant and partners. Moreover, although associates may play a real role in the project (for example, as a sponsor, providing technical support), they may not receive funding from the grant. In no circumstances can the costs incurred by an associated organisation be covered by the grant. 

Q. 24. Are the cost for notary approval and fees for obtaining the required documents eligible costs?

A. No. Any cost incurred prior to the signing of the contract is ineligible costs and could not be covered by the Grant. Thus the costs for public notary registration and obtaining the requested documents must be borne by the applicant organisation and are not eligible project cost.

Co-financing

Q 25. If the staff of Municipalities works in the projects, could the salaries that they receive from municipalities be considered as 10% co-financing of the municipalities?

A. No.

Q. 26  Is it possible to utilize state subventions as co-financing?

A.. No.

Q.27 If Grant beneficiary provides equipments and vehicles (through renting them), could these costs be considered as co-financing?

A. No. However, costs of hiring a vehicle may be included in the project’s eligible costs if it can be shown that vehicle hire is necessary for the purposes of implementing the project and  if hired from non-beneficiary sources via sub-contraction following the procurement procedures allowed in the guidelines”

Q.28 Can the grant beneficiaries use credits as co-financing?

A. Yes, as long as costs of the project covered through the credits are seen on the Applicant’s/Partners’ accounts. Please see Section 1.3 of the Guidelines for Applicants.

Q.29. Can the associated organisation meet the co-finance contribution?

A. Yes. It must be in cash and must be visible in the applicant’s and/or partner’s accounts. However, the liability for co-financing rests with the applicant/partner. Please see Section 1.3 of the Guidelines for Applicants.

Q. 30. What is the percentage for the applicant’s own financial participation? Does the partner have to make a financial contribution to the project?

A. In all the Grant Components of EADP where eligible applicants are non-governmental, non-for –profit organisations the minimum financial contribution from applicant and/or partners or any other source different from EU is 10% .

In SME Component the minimum requested contribution is 50% and has to come from applicant and/or partners or any other source different from EU, while in the A&RD Component the minimum requested contribution for investment projects is 40% of the total eligible costs of the project budget.

Q. 31.  From where the co-financing could be provided?

A. From any source other than an EU Programme. It must be visible in the accounts of the applicant and/or partner(s).

Q. 32. Are in-kind contributions for instance providing an appropriate space for the activities to the budget allowed?

A. Yes. Any contribution in kind made by the applicant or his partners may be listed separately in an Annex to the budget. This must be additional to the minimum cash co-financing required and can not be considered as a substitute for it.

Q. 33. If one of the partners provides an appropriate space for the activities, is it eligible to accept it as co- financing?

A. No. This is an in-kind contribution and it should be shown in the budget as such, but is not an eligible cost.

Q.34.   When do we have to transfer the 10% described as co-financing to the opened project  account?

A. The sources of matching contribution have to be stipulated at the application stage when justifying the budget. Beneficiary and/or partner’s co-financing must be visible in the accounts/accountancy of project partners.

The total project costs (100% of expenditure) will have to be proven by means of invoices and salary slips in the name of and paid by the lead applicant and/or partners. The final amount of the grant will be % as indicated in the contract of what was accepted as proven eligible costs and balance payment or recovery notes will be made accordingly.

Project Staff

Q.35.   What is the difference between "technical" and "administrative support staff"?

A. The technical staff includes consultants, experts, seminar lecturers, project coordinator and other key experts etc. The administrative staff includes the support staff secretary, accountant and others, which are involved  in the project implementation.

Q 36. Whether the staff of governmental officials can work in the projects as key staff of the project?

A1. No. As stated in the Section 2.1.4 of the Guidelines, the salaries of public officials of the governmental organisations are not eligible costs. However, they can work voluntarily in the projects without benefiting from the grant.

Q. 37. Could we employ international experts for the implementation of project activities?

A. Yes, as long as these are experts from eligible countries - EU member states and MEDA countries.

Q.38.   May academic staff work and get salary/fee from a project funded by this grant scheme?

A. If they are available and if the proof that they have been seconded by the university to the project is provided and they do not attempt to run university jobs parallel, therby earning double salary, academic staff with the required qualifications and experience are eligible to participate as experts in this Call for Proposals. Their project specific costs in terms of fees/trips/per diems are eligible providing they correspond to the “usual paid by the beneficiary” or “the average market rates”. Please note, however, that salaries of government officials working in their official capacity are non-eligible expenses.

Q. 39.  What are the maximum amounts of fees that are to be paid to the Project Team?

A. As stated in the Guidelines Salaries should not exceed those normally borne by the Beneficiary and its partners and must not exceed the levels generally accepted on the local market. Where international expertise is included, fees should also be commensurate with the levels generally accepted on the international market.

Eligibility of actions

Q.40.   Could we get financial support from the Programme for the continuation of a successful project implemented in the last three years with the support of other donors?

A. The Project should not have started before signing of the contract with CFCU and have a stand-alone character. The proposed action can not be parts of wider on-going projects.

Q. 41            Whether a consultancy company can support the applicant with services such as researches, studies, etc. which are required to meet the objectives of the project and if yes, what should be the volume of the service provided by the company?

A. As the Section 2.1.1. “Eligibility of Applicants: who may apply” of the Guidelines stipulates, Profit-making organisations/companies are not eligible applicants/partners under this Call for proposals, they can only participate as associates.

Where a private company will be subcontracted to provide services or supplies which are required to meet the objectives of the project, the procurement of these supplies/services should follow the procedure described in Annex E- the Standard Grant Contract- to the Guidelines. (Please see Annex E-IV Contract Award Procedures).

Q. 42  Is it possible to establish a new production facility?

A. Eligible project costs are stated in Section 2.1.4. Hence in the SME component it is stated that construction of new buildings or completion of on-going construction is not eligible cost, but minor repairs, refurbishment or work related to equipment installation is permitted.

Q. 43. Is it possible to prepare projects to renew old technology completely? 

A. Eligible actions are stated under Section 2.1.3. of the Guidelines for applicants. 

Q. 44.  Is there a restriction on the duration of training activities in the proposed Project?

A. The training period should be appropriate to the needs of the final beneficiaries and must be confined to the duration of the project.

Q. 45. If the project is being implemented very successfully but could not be completed by the end  of  September 2007, could it get an extension?

A. No. All projects must be completed by September 2007 irrespective of their starting date and all reports or claims for final payments must be submitted the latest by 30 October 2007. No extension beyond that period is to be granted.

Q. 46. Is it necessary to open a bank account for the proposed project or should the organisation use its existing one?

A. At the stage of applying there is no such need. “Selected applicants will have to open a project specific bank account or sub-account and to supply a financial identification form certified by the bank where such an account was opened before contract signature date. Please, refer to Section II/2 of the Application Form, and Article 15.8 of the General Condition for further information”.

Procurement

Q.47 If there is procurement of supplies (equipment, machines, etc.) during the project implementation which procedures are to be followed, EC procedures or Turkish public procurement procedures?

A. Procurements of services, supplies and works are subject to the rules set out in Annex IV to the standard grant contract; either EC procurement procedures or best international practices should be followed.

Q. 48. How will the VAT exemption problem regarding procurement be resolved?

A. Please look at the Law no: 5303 dated in 22.02.2005 and the Regulation published in the official journal numbered 25820 and dated 20 May 2005 within the frame of financial cooperation agreement between Republic of Turkey and EC for procurement of goods and equipments.

Others

Q. 49.  Could an organization apply with more than one project?  

A. Yes, it is possible. Please see Section 2.1.3 of the Guidelines for Applicants which describes in details  “Number of proposals and grants per applicant”

Q 50.   Do we need to provide “Financial Guarantee”? 

A. Financial Guarantee is not applicable in this Call for Proposals.

Q. 51. Is it necessary for all documents enclosed to the application form to be translated in English?

A. As stated in Section 2.2.1. in the Guidelines, Applicants must apply in Turkish or English. The project summary, budget and action plan for all four components and log-frame/business plan only for Tourism/Agro/SME components in English must be attached in cases where the proposal is submitted in Turkish (see Annexes and supported documents). Successful applications will be required to be translated into English for contract preparation purposes. In such case the translation costs shall be covered by the applicant.

Q. 52. Is it possible to apply to more than one component with the same project?

 A. No. One the same project can be submitted only to one component. Please see section 2.1.3 of the Guidelines for Applicants which describes in details “Number of proposals and grants per applicant”

Q. 53. Is it possible for the same organization to apply to each individual component with separate projects?

A. Yes it is possible. However it should make sure that is not using the same staff, premises, etc and respects avoiding overlapping and duplication of activities and funding.

Q. 54. Are the municipalities required to submit advanced projects for infrastructure activities?

A. As stated in the Guidelines for Applicants for projects related to small scale infrastructure “where appropriate approvals are required from Cultural Assets Board, the Environmental Impact Assessment (EIA), Feasibility Studies, Bills of Quantities, etc.” Regarding the preparation of EIA, the EIA ordinance published in Official Gazette No.25318, 16/12/2003 shall apply and applicants must follow the provisions and procedures of the ordinance to determine whether their proposals necessitate the preparation of preliminary EIA/EIA or not . Thus the application is to be of a project with high level of maturity, respecting the formats requested in the present Call for proposals and with ability to be completed within a period of 18 months and not later than September 2007

Q.55.    What is assessed as a managerial capacity: experience of the organization or experience of the staff employed?

A. As stated in the Evaluation Grid included in the Guidelines for Applicants,  the Financial and Operational capacity of Applicant is assessed based on Sections II.4.1  and III.1 of the Application that lists the experience of Applicant’s and Partner’s organisations experience as well as assessment of the expertise stated in the CVs of key experts, annexed to the Application form.

FAQ-EADP

ARD

Q1. It is difficult for farmers to provide 40% contribution as co-finance; is it possible to decrease this rate? (ARD)

A No.

Q2. Is it possible to apply for investments on the land which will be covered by water due to dam construction?

A.No.

Q.3. Is it possible for the tenant farmers who are not land owners to be accepted as project applicants?  (ARD)

A. Please look at the Section 2.1.1 for applicants who can apply and 2.1.3 for eligible and non-eligible activities. Farmers who have farmer registration numbers from MARA minimum 3 months prior the launch of Call for proposal can apply as farmer groups and not as individual farmers.

Q.4. Is it possible to utilize state subventions as co-financing? (ARD)

A. No

Q.5 For what types of projects should the Chambers of Agriculture apply as they are non-profit making organizations? Are they eligible for investment or for capacity building projects? . (ARD)

A. Chambers of Agriculture, providing that they comply with the eligibility criteria stated in Section 2.1.1 in the Guidelines are eligible to apply for both types of  projects. For details on size and definition of these types of projects, please see Section 1.3 in the Guidelines.

Q.6 Is an NGO with headquarter in USA an eligible partner? (A&RD)

A. No, it is not eligible. However, as stated in the Guidelines section 2.1.2, when partners are involved they do not have to be established or operational in the programme region, but must satisfy the other conditions as set out in section 2.1.1. for applicants and are from one of the eligible states - Turkey EU Member States or the countries and territories of the regions covered and/or authorised by the Regulation or other specific instruments applicable to the MEDA programme (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, and Gaza and West Bank).

FAQ-EADP

T&E

Q. 1. Is it possible to submit profit making tourism projects to the T&E Component?

A.No. These kinds of projects can only be considered under the SME component and under this component eligible applicants are only SME according to the EU definition. Please look at Section 2.1.1 and 2.1.3 of  the Guidelines for applicants. (T&E)

Q. 2. Is the vehicles for collecting solid wastes eligible cost? (T&E)

A. As stated in the Guidelines for applicants (Section 2.1.4, costs must; be necessary for carrying out the action, be provided for in the contract annexed to the Guidelines and comply with the principles of sound management, in particular value for money and cost-effectiveness). Therefore the justification for purchasing the vehicles should be very clearly explained in the project and could not be a self-standing activity.

Q.3 Is an NGO with headquarter in USA an eligible partner? (T&E)

A. No, it is not eligible. Partners must satisfy the same eligibility criteria as applicants. As stated in the guideline section 2.1.1, national and international organisations are eligible as long as they are registered in one of the eligible countries/states; Turkey EU Member States or the countries and territories of the regions covered and/or authorised by the Regulation or other specific instruments applicable to the MEDA programme (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, and Gaza and West Bank).

FAQ-EADP

SME

Q. 1.    Is it possible to get financing from the Programme for  SME, established outside of the region, providing  it has establishes a new branch in the program region? (SME)

A.As stated in the Guidelines for applicants (see Section 2.1.1), applicants must comply with all the eligibility criteria stated there one of which is “ to be legally registered as per Turkish legislation and/or have production facilities/operations to implement the project within the targeted provinces Bitlis, Hakkari, Muş and Van”  Hence eligible applicant will be the branch if it is an independent entity and registered minimum three months prior to the launching date of the Call for proposals.

Q. 2. We are teachers in Muş province. We are transferring an old SME registered in the region on our name and the procedures have not been completed yet. Is it possible to apply for SME component with this newly transferred SME?  (SME)

A. The transfer of ownership is not considered as a new registration date. The applicants must comply to all the eligibility criteria stated in Section 2.1.1. of the Guidelines to be eligible to apply

Q. 3. Can an SME established before 2004 with no activities and no profits apply? (SME)

A. No. As stated in Section 2.1.1 of the Guidelines for applicants the applicant has to show a profit in the fiscal year preceding the date of grant application (for the existing enterprises).

Q.4 Is an NGO with headquarter in USA an eligible partner? (SME)

A. No, it is not eligible. Partners must satisfy the same eligibility criteria as applicants except the criterion to have production facilities/operations to implement the project within the targeted provinces. See section 2.1.1 in the guideline. They must be from one of the eligible states as well; Turkey EU Member States or the countries and territories of the regions covered and/or authorised by the Regulation or other specific instruments applicable to the MEDA programme (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, and Gaza and West Bank).

FAQ-EADP

SD

Q. 1.    As an NGO of disabled persons we do not have enough budgets, but we do not have any debts as well. Can we apply for the SD component? (SD)

A. Please see Section 1.2 and 2.1.1 in the Guidelines for applicants. If you comply to all the criteria listed there you are eligible for an applicant, however your financial and operational capacity is to be assessed at a later stage – please see the enclosed Evaluation grid in the Guidelines for Applicants.

Q.2. Is an NGO with headquarter in USA an eligible partner? (SD)

A. No, it is not eligible. They must satisfy the same eligibility criteria as applicants. However, when partners are involved , they do not have to be established in the EADP area, but must satisfy the other conditions as set out in section 2.1.1 in the guideline for applicants. They must be from one of the eligible states as well;  Turkey EU Member States or the countries and territories of the regions covered and/or authorised by the Regulation or other specific instruments applicable to the MEDA programme (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, and Gaza and West Bank).

EADP

FREQUENTLY ASKED QUESTIONS & ANSWERS- 2

Social Development

Eligibility of Applicants and Partners (SD)

Q1. If NGOs apply with Universities as their partners, is there any obstacle for universities to submit projects? If universities submit their own projects and are awarded a grant, would there be any obstructive or restrictive impact on these partnerships?

A. No, there is no obstacle or restriction. , provided there is compliance with section 2.1.1. of the guideline for applicants.

Q2. Can Schools or Parent-Teacher Associations apply?

A. Yes, providing the eligibility criteria in section 2.1.1 in the guideline for applicant and 2.1.2 for partners and be a registered legal entity

Q3. Schools are not legal entities. Can they apply directly, not through parent-teacher associations? In this case, the school must open a dedicated bank account and if the principal opens the account, wouldn’t this be embezzlement? Is this legal?

A. Schools are among eligible applicants if they satisfy all criteria under Section 2.1.1 and if they have been registered as a legal entity with a set of accounts.. A bank account for the project can be legally opened by schools.

Q4. Can Community Centres apply? How?

A. Yes, see section 2.1.1 for eligibility of applicants and section 2.2 for application procedures and documents to be submitted.

Q5. Can Health Centres (SAĞLIK OCAKLARI) directly apply?

No, because they are not covered under see Section 2.1.1.

Q6. Is the founding date important for Parent-Teacher Associations to be stakeholders/partners?

A. No, in case of newly established organization the amount of grant will range from 10 000 to 50 000 Euros. (see Section 1.3)

Q7. Will university staff who are not within the scope of Act No. 657 be considered as public servants?

A. No

Q8. Can public servants take part in projects? If they do, do they need a permit?

A. Yes, but only on a voluntary basis without benefiting from the grant- as stated in the Section 2.1.4 of the Guidelines, the salaries of public officials of the governmental organisations are not eligible costs.  Their participation in the project will also depend on this being allowed for in the statutes of their institution.

Q9. If public servants take part in projects, will their per diems be covered by the project?

A. See answer to Q8.

Q10. It is said that Public Training Centres can apply, however these are public institutions under the Ministry of National Education. In this case, are they eligible?

A. Yes, if they meet the criteria stipulated in section 2.1.1 and 2.1.2. However, they cannot submit projects for activities that fall within the scope of their normal functions (see Section 2.1.3, types of activity, ineligible activities)

Q11. Handicrafts Training Centre Directorates under TEDGEM are schools and training centres where there is instruction and training. Can they be the beneficiary of a project?

A. See answer to question number 10

Q12. Can offices of Directorates of National Education, such as a Total Quality Management Unit apply?

A. See answer to question number 10.

Q13. Can units of Provincial Health Directorates apply?

A. No (see Section 2.1.1) and answer top Q 5.

Q14. Can Vocational Training Centres apply?

A. Yes, (see Section 2.1.1). See answer 10.  However, they cannot submit projects for activities that fall within the scope of their normal functions (see Section 2.1.3, types of activity, ineligible activities)

Q15. Can Provincial Special Administrations apply as beneficiaries?

Yes, (see Section 2.1.1). However, they cannot submit projects for activities that fall within the scope of their normal functions s (see Section 2.1.3, types of activity, ineligible activities)

Q16. Can private courses (özel dershaneler) apply?

A. No.

Q17. Urban neighbourhood mukhtarships are not legal entities, but they can open a bank account; is this acceptable?

A. Yes they can apply as local administration (see section 2.1.1. in the guideline)

Eligibility of actions (SD)

Q18. Can projects be submitted for refugees?

A. Yes, as long as the proposal satisfy the goals of the programme (see section 1.2 in the guideline).

Q19. Can an institution be partner or associate to more than one project?

Yes, It can be partner to more than one project if it is not an applicant for a project, because the applicant can be partner only in one project. (see Section 2.1.3, number of grants), there is not restriction for associations.

Q20. Can the teacher’s club be rented as project training venue?  

A. Yes, provided there is no conflict of interest and the provisions of Annex IV on procurement rules have been observed.

Q21. Can a school and its cooperative and parent-teacher association submit different projects separately?

A. Yes. See section 2.1.3 number of grants in the guideline, subject also that the criteria under 2.1.1. have been satisfied and that they are registered as legal entities.

Q22. As an association we intend to provide health services to the rural areas, how will the sustainability of this be ensured?

A. The design of the proposal is totally under the responsibility of the applicants.

Q23. We intend to establish an Arts Centre. Can we apply to the Social Development Component for this? 

A. Yes, as long as the proposal meets one ore more goals of the programme. However construction of new buildings, purchases of land or buildings are not eligible costs.

Q24. We are considering to submit a water sports project in Lake Van for youth under the Social Development Component. Is this possible?

A. Yes, providing that the proposal meets one ore more specific goals of the programme (see section 1.2)

Q25. Can the municipality submit a project for in-service training?

A. No, as the target group is not fit with the programme target group (see Section 1.2 for target group and 2.1.3 for types of activity, ineligible activities)

Q26. Is it possible to organise a training panel (will expenses be covered)?

A. Yes, providing that it is part of a project and not a stand-alone activity and meets one or more specific goals of the programme (see section 1.2) and complies with eligibility criteria. However a training allowance, that shall not exceed 10 EUR per each day, for beneficiaries taking part in planned training activities proposed in the project; this shall also cover travel or transportation costs of these persons between their place of residence and the training venue.

Q27. Would starting a radio station that does not accept commercials and only covers education/training subjects be eligible?

A. Actions should be self-contained operations; with a coherent set of activities including clearly defined operational objectives, target groups and planned outcomes, carried out within a limited time frame. They should be designed in response to the objectives and eligibility criteria of the project and the specific needs of the target groups identified by the project. Actions should be clearly relevant to key issues in social development.

Q28. Industrial Vocational High School provides training to school children. Is a training course focused on lathing/furniture for unemployed people eligible?

A. Yes. However a training allowance, that shall not exceed 10 EUR per each day, for beneficiaries taking part in planned training activities proposed in the project; this shall also cover travel or transportation costs of these persons between their place of residence and the training venue.

Q29. 20 girls whose their families can not meet their needs are in the 8^th class and going to be graduated from the school. As boarding school of girls we want to prepare a project to meet their needs; a) stationary and school needs, b) nourishment, c) accommodation or heating system. Is this an eligible project?

A. No. This would not be a sustainable project, but a kind of one-off scholarship for impoverished pupils. As such it is an ineligible activity

Eligibility of Costs and Budget (SD)

Q30. In a project which aims to keep the children in their families and the education system, who have the risk of working in streets and using drugs in one of the poorest neighbourhoods of Van, if the costs of establishing an indoor football field, a sports centre and an internet café exceed 5 % of the direct eligible costs, is this project eligible?

A. Purchases of land or building are not eligible costs. However necessary small refurbishment costs are eligible and limited to 5% of the total grant awarded. It would have to be clearly demonstrated that the facilities would be provided to the relevant target groups on a strictly non-profit basis.

Q31. Does the special transportation vehicle on Page 11 include the double-wheel vehicles of the physically disabled people?

A. Wheelchairs do not fall under the meaning of vehicles on page 11. They are considered to be equipment.

Q32. If teachers work in a project for training a group of students after office hours, can an allowance be granted for them?

A. Since teachers (not university staff) are considered as public servants they can not work for a project financed by EU grants and get allowance from the grant. However they may be advisors on part time basis and be trainer as long as the related employment laws (civil servant law no. 657, employment law) allows them to work in additional/secondary missions.

Q33. Will minimum 10 and maximum 100 Euros per diem be paid for people who participate in a training activity within the scope of the project?

A. No, these amounts are for project staff, expert etc. For trainees please see answer to question 26.

SME

Eligibility of Applicants and Partners (SME)

Q71. I have been operating in intercity transportation sector as a real person since 29.11.2004. Can I submit a project to the EADP to modernise my existing enterprise which operates in the service sector?

A.. Yes, you can  as long as the eligibility criteria in section 2.1.1 for applicants and 2.1.2 for partnership are met.

Q72. Are the project preparation costs eligible and are private education institutions eligible applicants?

A. Actions and costs for preparation of applications are ineligible and have to be born by the applicant. İf the education institution meets the criteria for SME stated in the section 2.1.1 it could apply.

Q73. I am a disabled person and I am an IT expert. Could İ apply for the  establishment of  an enterprise in computing ?.

A. Only legal entities that meet the criteria for SME stated in the section 2.1.1 it could apply. For more detailed  information look at web-sites of CFCU and DPT www.cfcu.gov.tr and www.dpt.gov.tr web pages where the eligibility criteria are explained in details. You may also consult the PIU office located in Van.

Q74. Can a 2^nd class merchant who keeps an operating ledger apply for a grant?

A. Only SMEs can apply (see the footnote under item a in section 2.1.1), as long as the eligibility criteria are satisfied in section 2.1.1 for applicants,

Q75. I am a public accountant. I am a taxpayer since 1994, I use uniform accounting and I recorded profit at the end of the year. I would like to start detergent production and packaging. Is this eligible?

A.,  Detergent production and packaging are eligible actions within the project if the project complies with the programme objectives and eligibility criteria.. For detail see section 2.1.1, 2.1.2, 2.13 and 2.14 of the Guidelines.

Q76. In case a company applied and was registered  at the Notary on 5 January 2005, and afterwards was registered to the Chamber of Commerce on 23 January 2005, what is to be considered as the the actual date of establishment?

A. The actual date of establishment is recognized as the one recognized by related laws/regulations/official Authorities of the Beneficiary country (i.e. in case of Turkish joint stock companies (Anonim Şirket) it is the publication date of the trade registry gazette where information regarding the establishment of the company is provided). In the general case as a registration date is considered the registration in the Chamber of Commerce.

Q77. I am not an owner of any company at the moment. Am I eligible to apply if I become a partner in a company?

A. Applicants could be only legal entities that meet the criteria for SME stated in the section 2.1.1. İf the company in which you are a partner meets these criteria it could apply to the Programme

Q78. Can the Small Industrial Zone Administration submit a project?

A. No. Only SMEs can apply, as long as they satisfy the eligibility criteria in section 2.1.1 for applicants and 2.1.2 for partnership.

Q79. Can tradesmen and craftsmen, and self-employed people who have become taxpayers before 2005, are registered to the relevant Professional association, and who operate on lump sum tax, and have used uniform accounting method starting from 2005 or who will start to use from 2005, apply to the SME Component? Furthermore, taxpayers who operate on lump sum tax basis are not obliged to prepare balance sheet and income-expenditure table since they keep an enterprise book. However, the accountants can arrange balance sheet and income statement if requested by the taxpayers. These tables are only approved by financial advisors. In this case, can enterprises operating on lump sum tax basis apply?

A. Yes, they can apply. as long as the eligibility criteria are satisfied in section 2.1. The supported documents must be submitted and approved by the relevant authorities, as stipulated in the Guidelines in section 2.2.1

Q80. Can companies established before 2005, but without  any activities (no profit or loss) apply?

No. As stated in Section 2.1.1 of the Guidelines for applicants the applicant has to show a profit in the fiscal year preceding the date of grant application (for the existing enterprises).

Q81. A company established before 2005, does not have any commercial activity since they are in the investment stage (construction of the main factory building). However, as they are in the investment stage, there is loss in the balance sheet and the income statement. Can companies with this financial status apply to the SME Component?

A. See answer to question number 80.

Q82. Although most of the SMEs in the programme region made profits in the last year, following the application of “inflation correction system” as specified in the Law No. 5024 to the accounts of all SMEs in the last year, the accounts of most of the SMEs do not show profits, but losses. We have now two different balance sheets for 2004; one balance sheet to which inflation correction system was applied and the other - to which it was not applied. If we submit the balance sheet showing profit and approved by an independent accountant to which inflation correction system was not applied, can we apply?

A. No. Your applications will be eligible only if you submit the balance sheet prepared on the basis of the inflation correction system and approved by an independent accountant.

Q83. Can companies that wish to operate in another field other than their current field of activity (provided that they have financial and operational capacity) apply?

A.Yes, as along as the proposal complies with the programme objectives and providing the eligibility criteria for applicants in section 2.1.1. are met. However, as stipulated in section 2.1.3 in the Guidelines primary agriculture, electricity and gas production, steel and coal industry, etc, are not eligible sectors  (see section 2.1.3 and 2.14) 

Q84. I took over a company 15 days ago. Can apply for a grant?

A.The transfer of ownership is not considered as a new registration date. The applicants must be legal entities and comply with all the eligibility criteria stated in Section 2.1.1. of the Guidelines to be eligible to apply

Q85. In case a company established before 19 January 2005 is taken over today, what is to be considered  as the establishment date of the company - the date of takeover or the establishment date before 19 January 2005?

A. The establishment date before 19 January 2005 is to be considered. See answer to Q84.

Q86. In case mining activity is recently added to the articles of association of a company established before 19 January 2005, is the new registration to be considered as an establishment data or it is the date of de-facto registration, i.e. before 19 January 2005 ?

A. As an establishment date is taken the date before 19 January 2005. Adding new activities dot change the establishment date of registration as long as this is the same legal entity. However you should note that some sectors are ineligible to apply. Please see section 2.1.3 of the Guidelines.

Q87. Is a profit making cooperative eligible to apply to the SME Component?

A. Yes, if it satisfies  the eligibility criteria in section 2.1 in the Guidelines, especially the SME definition stated in section 2.1.1 in the footnote.

Q88. Can we change the legal status of our company after we receive the grant (change from personal company to limited company)?

A. Changing the legal status of the company requires addendum to the contract which may effect the implementation of the project. You should be aware that any change that affects the Conditions of the contract signed between the beneficiary and Contracting Authority may result in contract termination.

Q89.Can Agricultural Credit Cooperatives apply for grant to the SME Component to establish dairy facilities?

A. Yes, providing they meet the criteria for eligibility of applicants. You should also note that construction costs for building up a new production facility are ineligible..

Q90. Can a company, which has ceased manufacturing activities 3 years ago, but making profit due to other activities, submit a project by resuming its manufacturing activities of 3 years ago?

A. Yes, as long as the proposal satisfies the programme objectives and the eligibility criteria stated in section 2.1 in the guideline.

Q91. Can furniture manufacturers registered in Chamber of Tradesmen and Craftsmen with single entry book keeping submit a project together with other furniture manufacturers with uniform accounting under an existing company?

A. Yes, providing that the applicant and partners satisfy the eligibility criteria in section 2.1.1. and 2.1.2.of the Guidelines

Q92. Could  tradesmen and craftsmen that are not legal entities but are physical  persons submit projects under the SME Grant scheme?

A. Applicant should be a legal entity. Physical persons are not supported. İn case they are self-employed, please see the answer to Q79.

Q93.Can a person dealing with milk production and operating on a lump sum tax basis submit a project for dairy products jointly with a company established 5 years ago and operating in another sector ?

A. Applicant could not be a physical person. Only legal entities that meet the criteria in section 2.1.1. of the Guidelines could apply to the programme. Applicants and partners should also satisfy the criteria in section 2.1.2.  See also answers to questions 79 and 92.

Q94. A company or tradesman who has recorded profit according to the accounting records seems to have recorded losses according to the inflation accounting which is being implemented for one year now. Similarly, the ones who have recorded losses seem to have recorded profit. In this case, which record will be taken into consideration?

A. See answer to Q 82.

Q95. Can a company employing at least one employee with social insurance after 19 January 2005 submit a project?

A. Yes, if it is established before 19 January 2005 and meets the criteria in Section 2.1 of the Guidelines.

Q96. Is it possible for enterprises in the food business that have obtained production permit after 19 January 2005 or that are in the process of obtaining permit at 18 July 2005 to submit projects?

A. Yes, providing that the necessary permits have been obtained and are submitted to the Contracting Authority at the time of deadline for application submission, which is  July, 18 2005

Q97. According to the explanations provided in the footnote regarding the SME definition by the European Union in the Guidelines, we understand that those who have single entry bookkeeping or who operate on lump sum tax basis can submit projects. Is the answer to this question yes or no?

A. Yes, providing that they satisfy the eligibility criteria for applicant in section 2.1of the Guidelines.

Q98. Is the “Teacher’s Club” (Author Note: this is an association) eligible?

A. No.

Q99. Is a person with debts to social security (Bag-Kur) eligible?

A. No..

Q100. Am I eligible applicant if I buy a firm out of the programme area?

A. Applicant to the Programme could be only an SME that is legally registered as per Turkish legislation and/or have production facilities/operations to implement the project within the targeted provinces Bitlis, Hakkari, Muş and Van  For further details please see also section 2.1.1. of Guidelines

Q101. I am a tradesman and taxpayer but I don’t have a firm; am I eligible?

A. Please see answer to Q.79.

Q102. Is a company owned by VASİAD (Van Businessmen Organisation) eligible?

A.No, since it does not comply with the requirement of the SME definition which states “be autonomous enterprises – not being owned 25 % or more of the capital or voting rights by another enterprise that is not an SME Please see footnote in section 2.1.1. of Guidelines.

Q103. İf a lump-sum tax payer changed its status to an income tax payer after the launching of Call for proposals is it eligible to apply?   

A. Yes, providing the eligibility criteria for applicants in section 2.1.1. are met.

Q104. I want to establish a private dialysis unit. I would like to be informed if I am eligible to apply for grant to the EADP and about the eligibility criteria?

A. See section 2.1- Eligibility Criteria of Guidelines.

Q105. I have a Medical Centre. Can I apply to the SME Component to get equipment and a quality certificate?

A. Yes, providing you respond to the eligibility criteria for applicants in section 2.1.1 and eligible actions in section 2.1.3 of Guidelines.

Q106. Is a special education and rehabilitation centre in Hakkari eligible for grants?

A. Yes, providing it complies with the eligibility criteria in section 2.1,of  the Guidelines, especially eligibility criteria for applicants.

Q107. Is franchising an eligible investment in EADP?

A. Yes, if the proposal meets one or more of the component specific objectives as stipulated in section 1.2 in the Guidelines, and all of the other eligibility criteria provided under Section 2.1 of the Guidelines.

Q108. I am a pharmacist. Can I apply to SME Component for establishing a pharmacy?

No. Please, refer to Section 2.1.1-Eligibility of Applicants of the Guidelines.

Q109. Could the  Süphan Dağı Milk and Milk Products Production and Marketing Cooperative (Süphan Dağı Süt ve Süt Ürünleri Üretim ve Pazarlama Kooperatifi), apply to the SME Component for the establishment of unit for production of milk and diary products, and for fodder packaging?

A. Please, see answer to Q87. The project should meet one or more of the specific objectives of the programme, and applicant must satisfy the eligibility criteria defined in section 2.1.1. of the Guidelines (especially SME definition). In addition you may note that primary agricultural activities (milk production) are not eligible actions under the SME component. Primary agriculture activities are supported under  Agriculture and rural development Component of the Programme

Q110. Is producing electricity from wind power, and selling this electricity an eligible project?

A. No, see section 2.1.3 for exceptional actions. Production and distribution of electricity is not eligible action.

Q111. If an SME, which has received support from KOSGEB for establishing a quality assurance system, training, fair assistance, consultancy services in scope of article “b” of section on “Number of projects and grants per applicant” in page 9 of the Guidelines, applies to EADP for a grant for procuring machinery and equipment, are the  de minimis rules applicable to this application?

A. You can submit application for purchasing machinery and equipment but, “de minimis rules” will be applied.

Q112. I have a hotel, and I want to apply to increase its capacity. What are the eligible costs under the SME Component for that type of an action?

A. Please see section 2.1.4 for eligible costs in the Guidelines. However you should note that purchase or renting of land or buildings, or construction of a new building or completion of on-going construction are not eligible cost (as indicated under section 2.1.4. “eligible direct costs”.

Q113. I want to establish sport facilities? Can I apply?

A. Please see programme objectives as well as the eligibility criteria for applicants, partners, actions and costs.

Q114. Is an action for local transportation of people an eligible action under the programme?

A. Yes, as stated in section 2.1.3..

Q115. Is the transportation of  goods an eligible sub-sector of the Programme?

A. Yes, as stated in section 2.1.3..

Q116. Chamber of Commerce wants to apply to the Grant Scheme with a project for making an  inventory of the SMEs in the region and identifying the potential investments areas of the region. Is this project eligible under the SME Component?

A. No. both applicant and action are ineligible under the SME Grant Scheme.

Eligibility of Costs (SME)

Q117. If I will submit a single project, and it  is approved, will the supports that I have received from KOSGEB during the past 3 years be deducted from the support?

A. Yes, see section 2.1.3 (de minimis rules) in the Guidelines.

Q118. Can the infrastructure expenses of a sports centre (electricity system, heating system) be eligible costs?

A. For eligibility of costs please refer to section 2.1.4. of Guidelines. Infrastructure costs are eligible as long as they are necessary for the investments in equipment. Overheads (i.e. running costs for electricity system, heating system, water, security, etc. ) of the Applicant and project partners must be covered within the Administrative costs and not exceed 7%. Local Office costs include only costs associated with the setting up of a special office for the purposes of implementing the project, other than the offices of applicant and partners. 

Q119. A cheque issued by our company was bounced in 2003. Will this constitute a handicap for us to submit projects?

A. If the potential applicant falls within one of the items (a, b, c, d, e, f, g, h, i) stipulated in section 2.1.1 in the Guidelines - can not apply. In the cases referred to points b and e, the exclusion applies for a period of four year as from the date of notification of the judgement.

Q120. Will it create a problem if I receive 50 % financing from the grant and 50 % financing from the vendor for procurement of machinery for the purpose of improving my business?

A. Co-financing may come from the applicant's or partners own resources or from sources other than the European Community budget. However you should note that the co-financing has to be visible in the Applicant/partners accounts.

Q121. Will the grants be paid directly to the beneficiaries or to suppliers of machinery and equipment? Could you please explain the payment procedure in details?  

A. Grant payments will be made to account of project-specific bank account or sub-account which identifies the funds paid by the CFCU  if a beneficiary is awarded with a grant contract. Please, refer Article of Sample Grant Contract-Annex D, and Article 2 and 15 of the General Conditions of the Sample Draft Contrac-Annex E-2 for further information on payments

Q122. On page 10 of the Application Guidelines, under the section Eligible Direct Costs, it is stated that “the cost of staff assigned to the action, corresponding to actual salaries plus social security charges and other remuneration-related costs” are considered as eligible direct costs. How long will it be possible to cover such salaries from the grant? 

A. Depending on project implementation period of the relevant contract but, the maximum duration will be 18 months, and expire not later than 30.09.2007.

Q123. What is the maximum number of staff whose costs can be covered from the project budget?

a. Number of staff will depend on each project, however as stated in the Guidelines-Article 14 of the General Conditions, salaries and costs should not exceed those normally borne by the Beneficiary and its partners, as the case may be.. Salaries for staff can only be project specific and should not include payment for the normal tasks of an employee (i.e. can only be paid for tasks related exclusively to the project.

Q124. The company wants to purchase vehicles to be used for direct marketing and sales activities. Is it possible to consider the costs of these vehicles as eligible costs within the project budget?

A. As stated in the Guidelines for applicants (Section 2.1.4, costs must; be necessary for carrying out the project (contract). Therefore the justification for purchasing the vehicles should be very clearly explained in the project and could not be a self-standing activity.

Q125. What is the maximum amount of grant to be received by a company which benefits from subsidies in kind (rents, electricity, and water) by the World Bank?

Direct grants from public funds (EU and/or national) to a given SME will be allocated within a ceiling of EURO 100.000 over a three year period beginning when the first aid is granted (de minimis rules).  Hence, if an SME has received a grant from KOSGEB amounting to EUR 30,000 in the last three years (2003-2005) the maximum eligible amount under this Call for proposals is EUR 70 000.

If the applicant has requested for the same project a grant from another programme, and if his application has been approved by both programmes, then the applicant has to choose 1 single programme for financing the grant application. In this connection grant beneficiaries shall be aware that double financing of the same project is not permitted.

Beneficiaries must notify in the application form the amount of any grant they have received in the past three years, by national, EU or other donors sources, as well as any grant they have applied for and for which an answer is pending. This should be reflected accordingly in the Application form Section II. 5.1 

Co-financing (SME)

Q126. If a craftsman who is a direct income tax payer is going to register to the chamber, will he be eligible?

A. Yes, please, refer to answer to question 79 and 92.

Q127. Can the applicant use certain KOSGEB subsidies (payment of ISO certification costs by KOSGEB) together with the grant ?

A. See answers to questions 111 and 117.

Procurement (SME)

Q128. Can we purchase materials and services only from Turkey and EU countries?

A. You can purchase materials, service and works from EU member States, MEDA countries and Turkey.

Others (SME)

Q129. Is it possible that any changes are made in the criteria until 18th July 2005 which is the deadline for submitting projects?

A. Yes, but to be published before 0807.2005 if deems necessary.

Q130. Will the Central Finance and Contracts Unit return rejected projects to the applicants?

A. No, rejected projects will be maintained by the CFCU and the unsuccessful applicant will be informed.

Q131. An equipment purchased within the scope of the project can only be used 3 months a year in the region due to unfavourable weather conditions. Is it possible to increase our income by using such equipment in other regions for the remaining 9 months in order to prevent it from being obsolete?

A. No. The purchased equipment for specific project and purposes can only be used for those specific project and purposes.

Q132. Will the grant amount for accepted projects be paid in instalments or at once?

A. See answer to question number 122.

Q133. Please explain the SME definition by the European Union in detail?

A. Please refer to Footnote 2 to Section2.1 of the Guidelines.

Q134. If the debts to the social security institution are paid before the submission of the application or before the signature of the contract, is the Applicant eligible?

A. The applicant can apply if the debts are paid before the submission.

Q135. Will any pre-payment be made? If yes, could you please explain the procedure in detail?

A. See answer to question number 122. Pre-payments will be made in accordance with the provisions of Article 2.5 Payments of the Application Guidelines and Article 15.1 of the General Conditions.

Q136. How will the projects be evaluated? Do we need to prepare our projects in English?

A. The projects will be evaluated by an independent evaluation committee to be appointed by the CFCU in Ankara. The proposal can be prepared either in Turkish or in English. In case of Turkish the project summary of the application form (maximum 2 pages) should be in English and vice-versa. The entire project will be translated into English of the project will be awarded grant. The cost of the translation will be paid by the beneficiary.