Taking counsel

  • 2004-09-29
  • Rita Svedaite, Sorainen Law Offices in Vilnius
EU financing 's how to get it?

Now that they are European Union members, Lithuania, Latvia and Estonia can obtain EU financing from the so-called Structural Funds. The funds will make more than 1.89 billion euros available from the European budget to the Baltic states in 2004 's 2006.

Structural instruments in each of the Baltic states pursue four priorities. In Estonia, 371 million euros will be devoted to human resources development, competitiveness, agriculture, fisheries and rural development, infrastructures and local development. Latvia will receive 626 million euros for territorial cohesion, enterprises and innovation, promotion of employment, as well as rural development and fisheries. Finally, Lithuania could receive up to 895 million euros for social and economic infrastructures, human resources development, productive sector development, rural and fisheries development.

SF financing will be granted only to projects that meet the financing criteria precisely and pass strict evaluation and selection procedures. Thus, in order to get SF financial assistance each of the applicants needs to implement various measures.

Business idea. The process for obtaining SF financing should be started from an eligible business idea, the implementation of which can be financed with SF.

Getting acquainted with the rules. The key instruments serving as a basis for each of the Baltic states seeking SF financing are the Single Programming Documents for 2004-2006 (SPD) of Estonia, Latvia and Lithuania, all officially approved by the European Commission. Each of the respective SPDs defines the activities to be supported, as well as the priorities, measures, project selection criteria, potential applicants and responsible member state institutions. The general criteria for the appraisal and selection of the project for financing are the following: the project has to correspond with the strategy of the respective SPD, it has to be consistently and consequently related to the aims of the specific measure and priority, and it must be economically efficient and effective. One should remember that additional requirements may be established by the responsible state institutions.

Decision 's is it worth? Preparation of the documents and passage of the project through the evaluation stages will require the applicant's time and money. In case of failure, such expenses may not be reimbursed.

If "yes" 's preparation of documents. Preparation of documents for the SF financing requires extensive legal and economic knowledge. In order to prepare the appropriate documents, the services of consultants may be used; however, close cooperation and personal input of an applicant is necessary as well.

Submission of application. The project application is a key document on the basis of which the project evaluation and selection procedure is performed and a decision on project financing is ultimately adopted. The project application includes general information related to the applicant and the project, as well as the specific information that is essential to the project prepared in accordance with the specific measure of SPD. Additional information or documentation 's like technical projects, maps, schemes, certificates and others 's may be required by the responsible state institutions.

Win the competition. A project application assessment takes place in two or three stages, during which the application's technical and financial conformity is checked. Each project is evaluated irrespectively of other projects. Only those projects prepared in the most appropriate manner and corresponding with the established financing criteria may succeed in getting SF financial assistance.

Therefore, an applicant may expect to receive EU financing only upon implementation of all the aforementioned measures. In order to receive SF financial assistance an applicant must manage the project properly from the moment the idea is generated until submission of the application.