European Regional Development Fund 2007-13

North West Operational Programme

Competitive Call for project proposals across Priorities 1 – 4 inclusive that will have a positive impact on growth within the Northwest

(excluding Merseyside)

Deadline for applications:

12 noon Wednesday 31stJuly 2013

Table of Contents

1. Call Context………………………………………………………………………………3

2. Call Overview...... 4

3. Required Outputs & Results...... …………………………..………...5

4. General Information ...... 6

4.1. National Eligibility ...... 6

4.2. Intervention Rate and Match Funding...... 6

4.3. Applicants ...... 6

4.4. Cross Cutting Themes ...... 6

4.5. State Aid ...... 7

4.6. Funding Agreement....... 8

4.7. Procurement ...... 8

6. Application Process...... 9

7. Call Timescales and Submission Process ...... 10

7.1 Call Timescales ...... 10

7.2 Support...... 11

7.3 North West ERDF Programme Guidance...... 12

7.4 Document Checklist...... 13

7.5 Document Submission...... 13

Appendix 1: Deliverability Test (for capital build proposals)

1. Call Context:

The European Regional Development Fund (ERDF) is enhancing the competitiveness of the North West economy by supporting growth in enterprise and employment. ERDF is making a real difference to local economies, local businesses and local people.

The Northwest Operational Programme (NWOP) sets out the key factors which justifies public investment within each of the Priority Areas and DCLG are inviting proposals through a competitive Call that musthave a positive impact on growth through delivering only those outputs and results outlined in this document.

ERDF in the North West is managed by the Department for Communities and Local Government through offices in Birchwood, Warrington.

For further information please visit:

Local support in relation to this Call is available through ERDF Technical Assisted funded colleagues throughout the Region, details of which are outlined in section 6.2 (Support). Applicants must engage with TA and/or 6.2colleagues detailed in section to secure LEP support and ensure that proposals are ERDF compliant, prior to submitting an application to DCLG

2. Call Overview:

This call will be competitive and within this:

  • proposals (or elements of proposals) must be for a minimum of £500k ERDF
  • submissions can be for new projects under the current Programme
  • applicants will need to have eligible match funding in place for the balance of costs which must be from a source other than the European Community.
  • applicants should have all necessary permissions in place, at the time of application to the levels detailed in Deliverability Test annex ie projects will need to have all permission's in place to at least Amber status at Stage 1 and at least Green status at Stage 2.
  • project activity must be completed no later than 30 June 2015.
  • public realm projects will not be considered
  • extensions to existing projects will not be considered. It has been agreed that proposals in this category will be dealt with separately.
  • applicants must provide written letter of support from their LEP’swhich states how the proposal meets local priorities and integrates / adds value to existing support structures the sub/pan regional impact it delivers.
  • LEP’s will provide DCLG with a prioritised list of projects prior to undertaking full Outline appraisal
  • Given the current status of the Programme and the need to secure potential projects to ensure decommitment targets are met, a firm budget has not been set at this stage and such there are no guarantees that proposals will ultimately secure ERDF support.
  • Will only cover ERDF Rest of the North West ERDF area ie Cumbria, Cheshire, Lancashire and Gtr Manchester and thus does not cover Merseyside.
  • Will not cover proposals for the 2014-20 Programme.

ERDF cannot fund duplicate activity or activities that do not address a market failure.

ERDF can only be used to provide additional activity / outputs

3. Required Outputs and Results required under this Call:

Projects will be expected to contractually deliver against the following Programme indicators, clarification of the definitions of which can be accessed via (

Outputs
Businesses assisted to improve their performance
Business Start-up Supports (individuals assisted to start a business inc men / women split)
Private sector investment levered (£m)
Number of people assisted in their skills development
Firms becoming engaged in collaborations with UK Knowledge Base
Number of People Assisted to get a Job
Number of Social Enterprises Assisted
Results
New or upgraded floorspace built / upgraded to BREAM excellent or very good (m2)
Number of jobs created
Number of gross jobs safeguarded
Number of businesses with improved GVA performance
Number of businesses created
Number of Businesses with Reduced Waste
Number of Applications of Low Carbon Technology
Number of Businesses with new or improved products and processes
CO2e savings associated with the delivery of the project. These will be reported through the ERDF carbon calculator and reported as part of the Project Management Report (applicants will be expected to detail the methodology used to calculate this)

Applicants will need to demonstrate in detail, how they will deliver the outputs, results and impacts committed to within the proposal.

Applicants will also need to ensure robust systems are in place to capture and record outputs and results

Outputs and results will be measured using data collected from funded projects. All projects will be required to collect this data, and report on progress on a claim-by-claim basis.

There must be a fully evidenced audit trail for all contracted indicators. Information on impact indicators does not need to be collected at project level, but will be analysed during independent evaluations of the Programme.

4. General Information:

4.1National Eligibility

For the avoidance of doubt the applicants should refer to ERDF guidance on eligible activities and costs which is available at:

4.2Intervention Rate & Match-Funding

The maximum ERDF intervention rate for any project will be 50%. This means that ERDF can contribute up to 50% of the ‘total eligible’ project costs, subject to State Aid regulations. The remaining 50% or more must come from other eligible sources.

Match funding is money used to match the ERDF grant and can come from a wide range of sources, either public or private. It may come from the applicant, external finance or the applicant may have secured a grant offer towards the project costs. Match from other EU funding streams are not allowed.

ERDF is not paid in advance and expenditure must be defrayed prior to submission of claims.

4.3Applicants

Must be legally constituted and be able to enter into a legally binding contract. The applicant will be the organisation that, if the application is successful, enters into a contract for ERDF and therefore carries the liability for ensuring that the terms of the ERDF grant agreement are met as they apply to themselves and also, all delivery partners.

All applications should be submitted with relevant LEP endorsement confirming this is a priority project and meets the call criteria. It is therefore imperative that applicants contact the relevant LEP colleagues as detailed in section 6.2 as early as possible to discuss their proposal. The LEP will be endeavouring to ensure that all bids are complementary

4.4Cross Cutting Themes – Environmental Sustainability and Equality

All applications received under this call should demonstrate how Cross Cutting Themes have been addressed in project design and development. The two Cross Cutting Themes within the current ERDF Programme are:

Environmental Sustainability

A requirement of ERDF is to ensure that environmental sustainability is embedded into the delivery and management of projects. Detailed consideration should be given to ensuring that the proposed projects incorporate a high level of sustainability.

All projects will be required to provide an estimate of the carbon impact of the project through using the Carbon Calculator, and report actual impacts during the delivery of the project.

Environmental sustainability TA colleagues will provide support and advice on environmental and sustainability issues, in conjunction with LEP TA colleagues

If you have any specific queries relating to this aspect of the call then in the first instance, please contact the DCLG Cross Cutting Theme Manager Mark Joslyn via ().

Equality and Diversity

A requirement of ERDF is to ensure that Equality and Diversity is embedded into the delivery and management of all ERDF funded projects. Projects should carefully consider how they will maximise their positive contribution to equality.

Projects will need to show how they meet the equality and social measures detailed in The Policy for the Built Environment, and those projects invited to Stage 2 will be required to provide a commitment to achieving the targets, and objectives outlined in the policy. In delivering the project it is expected that applicants will:

  • Show how the project meets the requirement of the Disability Discrimination Act and Equality Act, ensuring that schemes are fully accessible to disabled people.
  • Show how projects will maximise contribution to an equal and diverse workforce, through the employment standards and practices they will apply to themselves, and contractors working on the projects.
  • Show how projects or the wider regeneration strategy has been informed by engagement with local communities.
  • Show how projects will maximise links to local employment, during the build phase and in any subsequent development (mindful of the limits of procurement legislation).
  • Maximise the positive impacts for apprenticeships, the policy provided details of benchmarks.
  • Register on the Considerate Constructor Scheme, the policy provides detail of the minimum point scores expected.

If you have any specific queries relating to this aspect of the call, then in the first instance please contact the DCLG Equality and Diversity Manager Sarah Carling via ().

4.5State Aid

Applicants are required to provide evidence of compliance with State Aid requirements when submitting an Outline Application; as a minimum this should be a legal opinion. A more detailed assessment of State Aid compliance will be undertaken at Full Application stage.

DCLG is not able to give detailed legal advice on State Aid. It is the responsibility of the applicant to ensure the project is State Aid compliant.

4.6Funding Agreement

The application pack includes the ERDF standard funding agreement; any successful applicant will be subject to the terms of this agreement. Applicants should particularly note the requirement relating to procurement regulations, publicity and document retention.

Failure to meet any of the conditions of the agreement or the commitments within the applicationwill result in clawback of the ERDF grant.

Applicants should be aware that additional provisions and securities may be included within the funding agreement to protect the ERDF investment. This will be further discussed with projects that are invited to the Full Application stage.

4.7Procurement

The most common errors identified during audit has been failure to comply with relevant procurement procedures. Robust and transparent procurement is required to ensure that Grant Recipients:

  • Consider value for money (VFM)
  • Maximise the efficient use of public money and;
  • Maintain competitiveness and fairness across the EU.

It is recommended that applicants seek their own legal advice pertaining to their obligations in terms of tendering and procurement.

DCLG is not able to give detailed legal advice on Procurement. It is the responsibility of the applicant to ensure the project is compliant in this respect.

5.Application Process

There are two stages to the ERDF application process Stage 1 (Outline Application) which must be discussed and prioritised with the appropriate LEP prior to being submitted to DCLG and if successful, Stage 2 (Full Application) – see section 6.2 for LEP contacts

Ahead of this, applicants are required to engage with ERDF project support provision in the sub-regions (see section 6.2) to ensure that proposals fully fit with LEP priorities and the Call criteria.

Stage 1 applications will be subject to:

  • An assessment against what has been provided as outlined in the ‘document checklist’ in section 6.4. Applications not fully complying with this element will be rejected and not subjected to further consideration
  • A prioritisation exercise by the appropriate LEP. Those proposals not deemed as a LEP priority will not be considered by DCLG. LEP’s to provide DCLG with a list of prioritised projects for their area.
  • Appraisal of the Outline Application form if complying with that outlined above

Projects that are invited to submit a Full Application at Stage 2 will be subject to a technical appraisal, based on the information provided in the application form. If the call remains competitive after Stage 1, projects may be subject to a further economic impact assessment. Further detail will be provided to successful Stage 1 applicants following approval.

Applicants should be aware that additional conditions will be placed on projects seeking significant ERDF investment ie

  • Projects requesting in excess of £5,000,000 ERDF will require Central Government approval
  • Projects that total £10,000,000 or more of public funding are subject to a Green Book Appraisal. The cost of the Green Book Appraisal is not eligible for ERDF support and is at the applicants cost

Where technical advice is required to support the Full Application process (for example, valuation or cost consultancy advice) it is expected that the applicant will instruct an independent expert, at the applicant’s cost, to produce the advice. The appointed consultant should maintain adequate PI insurance and DCLG will require either a separate Collateral Warranty from the appointed consultant or a report directly addressed to DCLG to enable it to rely on such advice.

6.CALL TIMESCALES AND SUBMISSION PROCESS

6.1Call timescales

Please note these important dates and deadlines.

28th June 13 / Launch of Call advertised on ERDF section of the DCLG website

31stJuly 13 / Electronic Stage 1 signed application forms in PDF format with relevant annexes must be submitted by 12 noon to:

9th August 13 / Completion of Prioritisation exercise by LEP’s
16th August 13 / Completion of appraisal of Outline Applications by DCLG
23rdAugust 13 / Subject to IPG endorsement, Stage 1 initial outcome advised to applicants
20th September 13 / For successful schemes only; Electronic Stage 2 signed application forms in PDF format with relevant annexes must be submitted by noon to:

24th-31stOctober 13 / Completion of appraisal of Full Applications by DCLG
31st Oct-7th Nov 13 / Subject to PMSC endorsement, IPG approval (and Central Government approval if applicable) Stage 2 outcome advised to applicants
November 13 / For planning purposes only: Latest contracting period
1st December 13 / For planning purposes only: This is the required project activity start date following final endorsements and contracting with successful applicants
30th June 2015 / Project activity end date

Please note that the DCLG will endeavour to meet the above timescales, but this is reliant on the quality of applications submitted and the response time of applicants to queries raised.

6.2Support

For any further information about this call please contact:

Alternatively use our general enquiry address:

All applications should be submitted with relevant LEP endorsement confirming this is a priority project for the sub-region and meets the call criteria.

It is therefore recommended that applicants contact the relevant LEP as early as possible.

The LEP contacts for project endorsement are detailed below:

  • For projects covering Cheshire and Warrington contact

)

  • For projects covering Cumbria contact Kevin Little
  • For projects covering Greater Manchester contact ()
  • For projects covering Lancashire contact Sean McGrath ( ) and

In addition to the above, the ERDF Programme provides local support in each sub region to offer advice to organisations in developing compliant projects (Technical Assistance). It is advised that applicants utilise this service, and the contact details are as follows:

  • For projects in Cheshire and Warrington contact ()
  • For projects in Cumbria contact ()
  • For projects in Greater Manchester contact()
  • For projects in Lancashire please e-mail () for the attention of Hugh Roberts or Rona McFall
  • For projects requiring Environmental Sustainability advice contact Samantha Nicholson ()
  • For projects involving Universities, contact Neil Clatworthy via

6.3Northwest ERDF Programme Guidance

Key documents including the ERDF Operational Programme and substantial additional guidance can be found at:

Key Programme Documents /
Project Guidance Documents /
Outline Deliverables, Costs and Funding /
Full Deliverables, Costs and Funding /
ERDF National Handbook /
ERDF National Eligibility Guidance /
Full Application checklist /
Indicators Definition and evidence /
BIS State aid guidance /

6.4 Document Checklist

Failure to provide the following documentation willresult in the application being rejected without further consideration at Stage 1: Our objective is to identify project that are ‘oven-ready’ and certain of being able to contract during 2013.

NB: YOU MUST ENGAGE WITH YOUR LEP (See section 6.2 for contact details) BEFORE ANY PROPOSALS ARE COMPLETED AND SUBMITTED. THAT ENGAGEMENT WILL GIVE YOU CLEARANCE TO PROCEED WITH AN APPLICATION,OR OTHERWISE.

Stage 1:

  • LEP letter of endorsement
  • Deliverability Test and all required evidence – for capital build projects
  • Fully completed Outline Application Form
  • Outline Application deliverables, costs and funding annex
  • Independent (Professional) State Aid Opinion
  • Written confirmation of match funding

Stage 2:

Applicants invited to submit a Stage 2 application will be issued with a full checklist for submission, and is likely to include (but not restricted to):

  • Full Application Form
  • Full Application Indicators, Costs and Funding Annex
  • Development Programme/Gantt Chart
  • Technical reports as appropriate (for example, valuation and cost consultancy with associated collateral warranties)
  • Sustainability requirements
  • Equality Action Plan
  • Green Book Appraisal (if applicable)

The Full Application checklist provides further detail on the types of information that will be requested.

6.5Document Submission

To ensure the content of applications remain unaltered the proposal should be emailed in a signed and scanned PDF format to (please do not send the application to individuals).

This is a competitive process and so completed application forms not emailed by the deadline will not be considered. Any applications which are not fully completed will be excluded.