Question:

Can you inform us regarding official exchange rate of the Project, since we would like to start payments according to the Annex B.
Shall we use official exchange rate of the National Bank of Serbia on specific date of payment, or monthly rate of the euro-rsd from the “Inforeuro“ website or specific fixed exchange rate of this programme and each project?

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.


Question:

Please let us know, whether it is necessary that our  Municipality opens a separate account for the Project „…“ or we can use the account number specified in the BAF form (certified 12.10.2015.). In attachment you can find BAF form.

Answer:

Please note that having a separate bank account for your project is not a requirement under this Call for Proposals.


Question:

I’m sending an official request for a set of forms for public procurement and have one question related to finances.
We were required modification for some position in the human resources that were at 50% or 70% of working time, to revise as reduced number of months, which we did.
Will it, in financial reporting, make it a problem if the contracts for that positions be for a longer period than the one on the budget, but with a reduced fee?
For example, in the first version of the budget is planned for the position of associate in the extended day that he is engaged for 16 months, 50% of working time, with a fee of EUR 500 per month. The approved budget is that he will work 8 months, with a fee of 1000 EUR per month. In total, his fee would be the same, but by the Contract, he will be engaged for 16 months with half of fee per month.
Will it be a problem for financial reporting?

Answer:

Please specify for which type of contract (services/supplies/works) tender templates you need.
Regarding your other question, as stipulated in the project budget: „4. If staff are not working full time on the Action, the percentage should be indicated alongside the description of the item and reflected in the number of units (not the unit value)“, which you have respected in the approved project budget.
Therefore, even in the project budget line you have listed that this person is to be engaged during 16 months, and the applicant will conduct financial reporting in accordance with the approved project budget. Additionally, please note that the unit values in the approved project budget are maximum unit values. Undoubtedly, this person will work for „8 full-time“ months.


Question:

Our team has been assembled and met several times and we have essentially agreed on how we would like to manage the project activities and funds. With this in mind, we have a couple questions.
1. Regarding financial management, the partners have essentially agreed on budget line management and responsibility. Due to restrictions on public hiring and other issues, we have essentially broken down our budget by line item and preliminarily designated the financial management of each. If possible, we would like any input you can offer regarding our internal agreements and finance procedures. Note that we (as Coordinator/Lead Applicant) has previously managed an EU grant with a civil society and public partner. We recognize there are a couple of ways we might structure our internal agreement, but any recommendations and/or requirements that we might not have considered would be appreciated. A simple discussion on this matter would be great.
2. On a lesser matter (as our previous EU grant was managed in 2011-2012) we were just interested to get an update on the PDV (VAT) exemption process, as well as the procurement approval process (protocol regarding our partner, etc.)
I think those are the basics for now.
Once we are up and running, we would like to extend an invitation to you to visit our project. We look forward to working with you and keeping you updated on our progress and impact.

Answer:

1) Contracting Authority does not provide any official recommendations nor has any official requirements to the internal agreements between the applicant and co-applicants. It is up to the entities which are charged with implementation of the project to come up with the best possible solution how to arrange their contractual obligations.
2) Regarding VAT procedure, under this CfP both the applicant and co-applicants are eligible for VAT exemption. The Contracting Authority has delivered the list of the project Coordinators (list of the lead applicants) to the Tax Administration of the Republic of Serbia. We are still waiting for the confirmation from the Contracting Authority whether the list of the co-applicants eligible for VAT exemption has been also delivered to the Tax authorities.
a. Please note that the WYG is a partner consulting company of EPTISA, charged with the Technical Assistance to the grant beneficiaries on this project. Please clarify your question regarding procurement approval process. Please note also that neither Contracting Authority or Technical Assistance Team, officially, do not approve any procurement procedures/tender dossiers, rather it is up to the applicant(s) to follow provisions of the PRAG 2013 and related Annexes when procuring services/supplies/works under this CfP.


Question:

Can you tell us which euro exchange rate should we use to pay for the project „…“?

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:

Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(is)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(is)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(is)’s accounts shall be converted using the monthly Infor euro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.
In case you have any other questions, please do not hesitate to contact us.


Question:

We have received an information that our partner, the City of …, has changed its VAT number and registration number, and hereby inform you about this circumstances.
Therefore, we are sending you updated LEF file of City of Pozarevac – attached in this email.
If this event causes any changes in our future work, please inform us.

Answer:

Again, thank you for submitting an updated LEF of your partner.
However, please note that it is necessary to send a new hard copy of LEF along with the document on official letterhead justifying the reasons why there have been changes in LEF.
These documents are to be sent directly to the Contracting authority, and to be addressed to Ms. Mirjana Maksimovic.


Question:

We kindly ask You for information about euro exchange rate that will be  used on the project. We want to ask you for  exact amount.

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.


Question:

We are implementing the project „…“. One of the budget items relating whit participation in the salaries of our employees, who are engaged in part-time in this project.
In this regard, please let us know about the Euro exchange rate which will be used during the implementation of project activities.

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:

Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.


Question:

According to the point 15.9 of the section Rules for currency conversion of General Conditions, we agreed to report using the rate of exchange at which the Contracting`s Authority contribution was recorded in the Beneficiaries’ accounts.
The point is not very clear for us and we have dilemma what is better:
1. Is it better to immediately change total amount of Initial pre-financing payment in RSD and for every future transaction related to this payment use the same exchange rate or
2. Convert certain amounts of Initial pre-financing payment periodically (not total amount at once) and use, for project activities payment, the different exchange rate at which the certain amount of EUR is converted to RSD

Answer:

Regarding your dilemma, the Contracting authority and provisions of PRAG officially do not have any rules and requirements regarding how and when to exchange different currencies.
As a recommendation, please take into consideration when you do exchange of the currencies the first reporting period (12 months) and overall reporting period (after project finalization) and the requirement that you will have to do financial reporting using the exchange rate using the date when the Contracting`s Authority contribution was recorded in the Beneficiaries’ (your) account.
Therefore, it is up to the Grant beneficiary to decide when and how will perform currency exchange.


Question:

I am sending you an updated LEF Document of our Municipality with amended VAT and registration numbers.
If you also need a hard copy of the document, please state the address where it can be send to.

Answer:

Thank you for submitting an electronic version of the updated LEF.
However, please note that it is necessary to further send an updated hard copy of new LEF directly to the Contracting authority (to be addressed to Ms. Mirjana Maksimovic) along with another document (dopis) on official letterhead stating the reasons why changes occurred in new LEF.


Question:

Here are a few questions regarding some uncertainties we have.
– How to calculate the euro exchange rate during the implementation of the project budget? If we apply the course to the date of payment of the EU or the current daily rate of NBS at the payment date?
– Do we have any obligation to fill time sheets for the project team members and expert associates engaged on some project activities?
– We have to purchase some equipment for the project team office. We contacted potential suppliers and we have got information that there are some items (digital camera, tablet, multifunctional office device – printer/scanner/fax) that we can’t get certificates and satisfy Rule of origin for the EU-funded projects. I’d like to know if we still can buy this equipment and, if we can, under what circumstances?
– There is a budget line 2.2 – local transportation. I’d like to know it we can pay the cost of all travel in the country from that budget line (local and intercity transport)? What is the right way to justify the transport costs at the local level (within a city)?

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.
Following, as you will be provided during the Grant Award Ceremony / Implementation workshop on 10 February 2016 I Kraljevo, it is recommended that you have filled out timesheets as supporting evidence to the expenditures incurred for experts and associates implementing project activities.
Then, as stipulated in PRAG Article 2.3.1 The rules on nationality and origin:
All goods (supplies and materials) purchased under a contract financed under an EU instrument, including the EDF, must originate from the EU or from an eligible country (see above, ‘nationality’, and below, ‘exceptions to the rule on nationality and origin’).
Next, from your Justification tab of the project budget you have stated that the expenses to be incurred under Budget line 2.2. will be used for project team members for fuel costs for local transportation. As supporting evidence for travel expenditures, recommendation from the PMU is to have (list not exhaustive): business trip order, report from the trip, list of participants if used to attend some conference, memo, ticket and/or invoice.


Question:

Following the yesterday’s workshop, we would like to get clarifications on the 2 issues:
1. Our budget lines 2.2.1 Fuel for management staff and 2.2.2 Fuel for home care in … and … have been budgeted by using unit “per km”. Accordingly, the means are predicted to cover all the costs related to the official car travels (which includes fuel, car depreciation, road tolls, registration). In our previous EU funded projects (CBC, CSF), the car log (find an example attached) was the only supporting document and as such sufficient for justification and accepted by the audit. Can you please check if the same principle/document is acceptable for the DEU under this call?

Answer:

The PMU would kindly ask you to verify whether in your previous grant, „…“ was allowed to use Simplified cost option for travel costs, which is a different case for reporting (and where in this case, you would be allowed to use this reporting procedure).
In this budget, you have not marked that you wish to use Simplified cost option for travel expenditures rather you have budgeted travel costs as unit costs. In this case, and as referred to in Tool 2 – Reporting, which was distributed to you during the Grant Award Ceremony/Instructive workshop, recommendation is that for reporting and justification of the travel expenditures, the Grant beneficiary is to use duly filled order for business trip, individual report on business trip, mission report, tickets etc. (list not exhaustive).


Question:

We would also need info for PPO PDV:
Подаци о међународном уговору:
Назив уговора:
Број уговора: Датум потписивања:

Answer:

Please note that international agreement to be stated on the VAT (PPO-PDV) form is the following:
Финансијски споразум између Владе Републике Србије и Европске комисије у вези са националним програмом за Републику Србију за 2012. годину у оквиру инструмената за претприступну помоћ.
Датум потписивања: 20.12.2012


Question:

Whether the Municipality …, as the applicant on the project „…“, should transfer money co -applicant for implementation of public procurement( for example; printers, lap – tops, vehicles), or Municipality of …. implements public procurement for co – applicants?

Answer:

Please note that procurement to be implemented during project implementation is up to the agreement between applicants; the Contracting authority does not have any formal requirements regarding this issue.
However, prior to transferring funds to the co-applicant, please check with the Tax authorities whether they have received the list of the co-applicants on this CfP in order to be eligible for VAT exemption.


Question:

Although you talk about this issue on the conference in …  we want to be sure that we use the right procedure concerning exchange rate. We receive information from our bank of the first instalment from EU on our foreign currency account on 4th January 2016. The funds stayed on our foreign currency account until 5th February when we made conversion in RSD (only the part of the funds in amount of 15.000 eur).  Shell we use exchange rate for 4th January for all funds that we received for first instalment or we should use exchange rate for each transaction from our foreign currency account to RSD account?

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.

Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.


Question:

We need your assistance to resolve the dilemma concerning our budget line 1.1.5 – Joint legal officer. This full-time position represents financial contribution of „…“ (though financed by the „…“) in the total amount of 9.900 EUR (18 x 550 EUR). However, upon reception of the salary slips, I’ve noticed that his actual gross salary is 640 EUR. The management of „…“ explained that there had been an increase of his salary over time. I am curious about whether we should change our budget or not having in mind that the figures on the slips are higher than those presented in the budget.
Might decreasing number of units and increasing the unit value be an option? (18 x 550 EUR = 15,46875 x 640 EUR)

Answer:

It is not necessary to request budget modification.
Once when preparing Interim and Final financial reports, you will only declare and report sum originally planned i.e. 550 EUR per month regardless of person’s increase in salary.


Question:

I am writing as Project Coordinator of „…“.
Our project team has a question related to our Co-Applicant 1, Association of „…“.
While project was being developed, the Association had full time employed staff and the fee for their engagement in this project was calculated as 25% of their working hours at the Association (3 persons, project budget lines 1.1.1.3, 1.1.1.4, 1.1.1.6).
In the meantime, the situation has changed. At the moment of the actual project initiation (21.12.2015.) the Association of „…“ did not have and still does not have full time employees but only associates and volunteers. They remain committed to project implementation but the issue is now that the calculation of 25% of their full time in Association is not possible.
Our project team suggest that these 3 persons from Association sign a contract (Ugovor o delu) with the Applicant Municipality of …. The basis for calculation of their 25% of working time, according to Serbian Law, can be 40 hours working week and national salary average.
If this option is in agreement with EUD policies and practice please let us know so we can proceed with administrative procedures.If not, please let us know what would be the advisable solution.

Answer:

The easiest way would be that the lead applicant transfers funds to the co-applicant for salaries of persons envisaged to work under those budget lines.


Question:

We want to inform us in which language should be contracts for services, foreseen in Section5 of the project budget (other costs/services)?

We have to sign contracts ranging from 80 to 70,000 Euros. Are there special rules in this regard?

Whether the language of the contract depends on the value and procedure of procurement?

Answer:

We want to inform us in which language should be contracts for services, foreseen in Section5 of the project budget (other costs/services)?

Official language of the entire CfP is English.
All PRAG templates are in English language.

We have to sign contracts ranging from 80 to 70,000 Euros. Are there special rules in this regard?

The Grant beneficiary needs to respect national legislation when signing contracts with natural and legal persons.

Whether the language of the contract depends on the value and procedure of procurement?

Official language of the entire CfP is English language.


Question:

Please confirm once again that during the reporting and accounting of all payments on the project „…“ uses the average exchange rate of the euro on the date of payment of the grant. How do we understand the workshop on the Implementing 10.02. in …, precisely this course is the reporting and use it until after the payment of the second tranche of surrendered Interim report-a. In the Agreement is sometimes referred monthly exchange Info euro but to avoid confusion and potential errors in understanding, please once again for the interpretation of the exchange rate during the implementation of our project.

Answer:

Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.


Question:

Could you be so kind to check out our first tender documentation.
This one is for printing materials for project visibility and it is necessary for Opening conference for the end of this month.
We await your answer ASAP.

Answer:

PMU or Contracting authority is not authorised to check and approve tender dossiers prepared by Grant beneficiaries.


Question:

I would like to consult with you regarding the transportation cost related to the upcoming seminars.
The current budget allows for the cost of transportation, based on the cost of fuel per distance travelled without a car rental, however due to the number of participants (at least 5) rental car would represent a saving. With the suggested alternative, we would stay within the approved budget.
Please advise regarding the optimal way of representing these potential changes.
If you have any additional questions, please feel free to contact us.

Answer:

Please note that subcontracting a car rental company for this budget line is not forbidden.
However, in the reporting phase, you will be required to report expenditures according to the approved budget and respective budget line.


Question:

We have several questions which we would like your advice and clarifications on how to act.
1. In the initial project budget travel costs for the project team the foreseen amount was 2700 EUR. A modification of the budget was sent and this amount was reduced to 2250.00. During the period from project initiation and the final acceptance of the Administrative order, the project team had field visits and for them gasoline was bought by individuals but with receipts on the Association of Roma of Branicevo district. Our question is: can we reimburse the project team members in cash (kroz blaganju) for the gasoline expenses up to the acceptance of the Administrative order, and the remaining amount on the budget line 2.2.1 Transportation for the project team, procure gasoline through an invoice with the necessary VAT exemption procedure? We are aware that VAT for the spent amount on gasoline is not an eligible costs.
2. In the budget justifications, for Administrative costs, it is defined that a foreseen amount would be spent for the purchasing of equipment (computers, etc.). Our question: since the budget section4 Local office was deleted during the project approval process and it was recommended that such costs be covered through the Administrative costs, can the items identified in the justifications be altered and instead of the purchasing of equipment (which is not needed by the Applicant) the funds be used for covering office costs, office materials, etc. or must we strictly stick to what is listed in the justifications?
3. The third and final question. With the granted Administrative order, a new project team member was introduced (the project finance assistant). The assistant is engaged with 20% working time. Since he was not engaged during the first 3 months, realistically there was no great need for his engagement during this period, can his engagement vary from month to month but in total the engagement be 3.6 months on the project? Meaning that despite the fact that he was not on the project from the very beginning, the funds foreseen for his position will be used in full by the end of the project.
Thank you in advance for the requested clarifications.

Answer:

1. Cash transfers should in general be avoided. Recommendation is to find a way where financial trail would be evident and noted in bank statements. If impossible, the Grant beneficiary is to follow at all times national legislation governing this field.

2. Please refer to the Article 2.1.5.3. of the GfA, which states the following:
The indirect costs incurred in carrying out the action may be eligible for flat-rate funding, but the total must not exceed 7 % of the estimated total eligible direct costs. Indirect costs are eligible provided that they do not include costs assigned to another budget heading in the standard grant contract. The applicant may be asked to justify the percentage requested before the contract is signed. However, once the flat rate has been fixed in the special conditions of the standard grant contract, no supporting documents need to be provided. If any of the applicants or affiliated entity(ies) is in receipt of an operating grant financed by the EU, it may not claim indirect costs on its incurred costs within the proposed budget for the action.

3. Project finance assistant is to work 20% (i.e. 3.6 months) of the remaining project implementation period; specifics of the employment/engagement contract is to be defined by the Grant beneficiary.


Question:

As you are aware, our project in … foresees recruitment of new staff in the two SWCs for the purpose of providing home care services. It has been planned that each center employs 3 home care assistants with a social care professional equally sharing her full working time between the two. Since the new organizational units of the two centers have been already approved by relevant bodies in both municipalities and the rulebooks on staffing and internal organization amended accordingly, the new staff should normally conclude employment contracts (ugovor o radu). However, as we all know, these may come into collision with the actual legal regulations in Serbia (Zakon o budžetskom sistemu, Zakon o načinu određivanja maksimalnog broja zaposlenih u javnom sektoru, Uredba o postupku za pribavljanje saglasnosti za novo zapošljavanje i dodatno radno angažovanje kod korisnika javnih sredstava). Without prejudice to the status of these regulations at the end of the project, the main concern of the Social Welfare Centres is whether they are allowed at this moment to conclude employment contracts for a specified period of time (zakon o radu na odredjeno vreme) as the salaries are project based and financed by EU. We also have in mind that any other form of recruitment (ugovor o delu, ugovor o privremenim i povremenim poslovima) bears a huge risk of not getting the license.
We would greatly appreciate if you could forward our inquiry to the relevant body and provide us with their opinion shortly.

Answer:

As PMU is aware, ban on employment in state institutions is limited only to the funds from the state budget.
Recommendation is that co-applicants, as state institutions and budget beneficiaries of the Republic of Serbia, contact directly Ministry of Finance in order to receive their opinion; it is recommended also to mention this project with emphasis that reimbursement will come from EU funds.


Question:

We would hereby like to draw your attention to the existence of an error in the records of the Tax Administration regarding the projects funded by the EU and which are exempt from VAT payment in accordance with applicable international agreements.
Namely, in the records of the Tax Administration and on the basis of information that they obtained from the Ministry of Finance, it is stated that the beneficiary of the project „…“ is
the organization „…“ ‘from … , which is not a partner in the project nor it participates in the project, whereas all of the following three organizations / institutions that are in fact partners/beneficiaries on the project „…“, are not registered with the Tax Administration as the beneficiaries of funds:
1. „…“
2. „…“
3. „…“
Due to the existence of this error the mentioned organizations cannot conduct procurement of goods and services on the project and be exempt from paying the VAT.
Hence, we hereby kindly ask you to provide us with the instructions on how to proceed so that the error in the data of the Tax Administration can be corrected?
Also, could you please send us the exact name of the international agreement signed between the Government of the Republic of Serbia and the European Commission, which represents the basis for the use of these funds and exemption from VAT payment.

Answer:

Please note that international agreement to be stated on the VAT (PPO-PDV) form is the following:

Финансијски споразум између Владе Републике Србије и Европске комисије у вези са националним програмом за Републику Србију за 2012. годину у оквиру инструмената за претприступну помоћ
Датум потписивања: 20.12.2012.

Regarding the error made by the CFCU of the Ministry of Finance, please get in touch with them and inform them about this error in order for them to make up for it since this is their fault. In case they have some additional questions, please direct them to us if necessary.


Question:

Regarding the activity 5.7.2. Organization of workshop for volunteers in project „…“ , we should select an expert for preparation and realization of an education program for school children, as we cannot engage an expert who is already part of the project team.
The maximum budget available for this contract is 600 EUR (6 expert days x 100 EUR), is it necessary to carry out single tender procedure or there is a possibility of conducting simplified tender procedure in accordance with PRAG 2013, point 2.4.1. „For service and supply contracts, a payment may be made against invoice without prior acceptance of a tender if the expenditure is ≤ EUR 2500“?

Answer:

Please note that payment against invoice are to be made by legal persons.

As you correctly have quoted PRAG 2013 and respective Article 2.4.8. If applicable, payments for amounts less than or equal to EUR 2500 may consist simply in payment against invoices without prior acceptance of a tender, while ensuring that …basic principles relating to procurement procedures such as checking compliance with eligibility rules (nationality rules), Selection and exclusion criteria are duly applied.


Question:

I’m writing with the VAT related question, namely whether the VAT related to bus tickets we are buying for the purpose of the project is eligible cost according to the Contracting Authority.
Thank you in advance.

Answer:

Please note that in accordance with the Article 2.1.5.5. of the Guidelines for Applicants VAT is ineligible cost unless meeting following conditions:
a) the value added taxes are not recoverable by any means;
b) it is established that they are borne by the final beneficiary, and
c) they are clearly identified in the project proposal


Question:

Could you please inform us when and how (what is the procedure) to claim the second instalment of funds for the project?
Thank you in advance.

Answer:

Please refer to the Article 4 – Reporting and payment arrangements of your Grant contract, which states the following:
Payments shall be made in accordance with Article 15 of Annex II option no. 2 as set out in Article 15.1
Initial pre-financing payment: 107,568.66 EUR
Further pre-financing payments(s): 37,528.41 EUR
(subject to the provisions of Annex II)
Balance of the final amount of the grant: 16,121.90 EUR
(subject to the provisions of Annex II)
For further clarifications, Article 15 – Payment and interest on late payment of the General conditions applicable to your Grant contract states the following:
….
Option 2: Actions with an implementation period of more than 12 months and grant of more than EUR100 000
(i) an initial pre-financing payment of 100 % of the part of the estimated budget financed by the Contracting Authority for the first reporting period (excluding contingencies). The part of the budget financed by the Contracting Authority is calculated by applying the percentage set out in Article 3.2 of the Special Conditions;
(ii) further pre-financing payments of 100 % of the part of the estimated budget financed by the Contracting Authority for the following reporting period (excluding not authorised contingencies);
− the reporting period is intended as a twelve-month period unless otherwise provided for in the Special Conditions. When the remaining period to the end of the Action is up to 18 months, the reporting period
shall cover it entirely;
− within 60 days following the end of the reporting period, the Coordinator shall present an interim report or, if unable to do so, it shall inform the Contracting Authority of the reasons and provide a summary of progress of the Action;
− if at the end of the reporting period the part of the expenditure actually incurred which is financed by the Contracting Authority is less than 70 % of the previous payment (and 100 % of any previous payments),
the further pre-financing payment shall be reduced by the amount corresponding to the difference between the 70 % of the previous prefinancing payment and the part of the expenditure actually incurred which is financed by the Contracting Authority;
− the Coordinator may submit a request for further pre-financing payment before the end of the reporting period, when the part of the expenditure actually incurred which is financed by the Contracting Authority is more than 70 % of the previous payment (and 100 % of any previous payments). In this case, the following reporting period starts anew from the end date of the period covered by this payment request;
− in addition, for grants of more than EUR 5 000 000, a further prefinancing payment may be made only if the part financed by the Contracting Authority of the of eligible costs approved is at least equal to the total amount of all the previous payments excluding the last one;
− the total sum of pre-financing payments may not exceed 90 % of the amount referred to in Article 3.2 of the Special Conditions, excluding not authorised contingencies;
(ii) the balance of the final amount of the grant.

Question:

Also, let us know which tender procedure to use and which tender documentation to be used. Please send us a tender packages.

Answer:

Additionally, please note that as a Grant beneficiary under this CfP, you are to use PRAG tender procedures as well as PRAG 2013 tender documentation, which you can find attached to this email.
As a information, TA team in cooperation with the Contracting authority will organise a Grant Award Ceremony + Instructive meeting beginning of February where you will receive all the instructions regarding implementation.
Attachments: General PRAG 2013, Supplies PRAG 2013, Grants PRAG 2013, Services PRAG 2013


Question:

We want to inform us in which language should be contracts for services, foreseen in Section 5 of the project budget (other costs/services)?
We have to sign contracts ranging from 80 to 70,000 Euros.

Answer:

Official language of the entire CfP is English.
All PRAG templates are in English language. The Grant beneficiary needs to respect national legislation when signing contracts with natural and legal persons.

Question:

As regards procurement, we need tender templates for the procurement of up to 20 000 euro for works, services and supplies, and tender templates for the procurement of supplies for the value  20,000 to 100,000 euro

Answer:

Please find attached requested templates. http://ec.europa.eu/europeaid/prag/
Please note that PRAG 2013 templates are same for no matter what the amount of the procurement is, in general.
Attachments: Works PRAG 2013,General PRAG 2013, Supplies PRAG 2013, Services PRAG 2013


Question:

Please provide me with the forms for the tender documents

Answer:

Please find attached requested tender documents.
Attachments: General PRAG 2013, Supplies PRAG 2013, Grants PRAG 2013, Services PRAG 2013 http://ec.europa.eu/europeaid/prag/


Question:

1. Could you please give us clear instructions for the for VAT exemption procedure?
2. Since we are CSO, we are not obligated to apply the Law on Public Procurement of the Republic of Serbia we do not have an official procedure for procurements. In this case we will use the PRAG procedures, could you please inform us which version to use. We have notices a new version was released in mid January but since the Project contract was signed in December 2015, which version do we use?
3. For the public procurements do you recommend the grouping of similar budget lines for the procurement procedures?
4. Are we obliged to send our tender documentation for your approval prior to announcing a tender for your approval?
5.. Can you also give us instructions related to the exchange rate and which rate to use during the project implementation.
We await your quick response and look forward to a good and constructive cooperation.

Answer:

Please note that the Contracting authority has delivered a list of the Grant beneficiaries to the Tax Authorities of the Republic of Serbia.

Standard procedure is that the Main applicant (Coordinator of the grant) or Co-applicant fills out the PPO-PDV form with necessary information regarding service/supplies provider.
However, please note that international agreement to be stated (on the header of the document) on the VAT (PPO-PDV) form is the following:
Финансијски споразум између Владе Републике Србије и Европске комисије у вези са националним програмом за Републику Србију за 2012. годину у оквиру инструмената за преtприступну помоћ
Датум потписивања: 20.12.2012.
We would suggest before going to the Tax Authorities to send PPO-PDV form for verification to the TA Team.
Yes, grouping of the smaller and similar budget lines is recommended and obligatory in order not to circumvent thresholds provided in the PRAG.
Following, please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.
Therefore, the only requirement Contracting Authority has regarding the exchange rate is the one concerned with reporting; exchange rates used for payments are to be defined by the Grant beneficiaries and in line with the national legislation.


Question:

We would like to use this opportunity to ask for your support and clarification of the following issue in our project:
In our project budget (budget line 5.7.10 Mentors for elementary scholars – 4 mentors unit- per month; No. Of units 10; price per unit 400.00; total 4000.00 EUR), it is foreseen to engage 4 mentors for 4 different subjects (Serbian, Math, English and Physics/Chemistry) to hold classes for Roma children for a period of 10 months.
Our dilemma is:
• Can we engage individuals based on elaborated TORs for each individual mentor or must we conduct a public procurement procedure.
• If a tendering procedure is obligatory can you advise us on which procedure to use. Since the engagement is foreseen to be paid on a monthly basis, do we use the fee-based forms or the global price?
• Can we also invite individuals to participate in the tendering procedure? If so what are they obligated to send as part of their offer?

We would appreciate your advice in this manner.

Answer:

ToR is a compulsory part of the tender dossier for Service contracts. Natural persons are also eligible to apply under tender procedure. However, please note that you will also engage other potential experts from Budget heading 5. Other costs, services, therefore, it is advisable to group several budget lines in one tender dossier and subcontract one company, which would provide you with the necessary experts responding to the qualifications and skills set out in the ToR.
• If a tendering procedure is obligatory can you advise us on which procedure to use. Since the engagement is foreseen to be paid on a monthly basis, do we use the fee-based forms or the global price?
Please refer to the answer above. Since you have budgeted engagement on per month basis, recommendation is to use fee-based forms.
• Can we also invite individuals to participate in the tendering procedure? If so what are they obligated to send as part of their offer?
Please refer to the answer above.


Question:

Is PUC „…“ obliged to procurement of funds that grant agreement envisaged as a share of  the City of „…“ implement under the provisions of Public Procurement Law of the Republic of Serbia or procedures PRAG 2013?

Answer:

Since co-funding is included in the project budget, it is advisable that these budget lines are procured according to the PRAG 2013 procedures.


Question:

Are we allowed to when creating a tender package for Single tender for organization of events use b8h-AnnexIV-References-of-contractor_Single (enclosed) instead of the document b8h_annexivexperts_en document, due to the fact that a company provides the service not individuals mentioned in tender documents so we consider it is more appropriate for the company to submit references. Attached: Annex IV-References of Contractor

Answer:

Please take into consideration document attached (Contract notice) where in this document you define Selection and Award criteria for potential contractors; regardless of the tender procedure, the Grant beneficiary needs to respect provisions of equal treatment and transparency.
In the Selection and Award criteria, the Grant beneficiary defines financial, professional and technical criteria of the potential tenderers.
Further on, it is also necessary to define whether you will organise this contract as a global price or fee-based.
If organised as a fee-based contract, in the second document attached (Terms of Reference for Fee based contracts) the Grant beneficiary sets out necessary Qualifications and skills, General and Specific professional experience of the experts necessary to perform services envisaged. In this case, the tenderers are required to submit CVs of potential experts which are to evaluated by the Grant beneficiary and its Evaluation committee.
If organised as a global price, the Grant beneficiary may set out requirements for potential experts to carry out necessary services. However, in this case, the tenderers are not required to submit CVs of potential experts. Also attached to this email is the document Terms of Reference for Global price contracts. Attached: Contract Notice, Annex ToR fee, Annex ToR global.


Question:

We are in preparation for procurement of equipment (lap tops and projectors) and need some clarification. The planned amount for this procurement is 4.400 EUR. Which procedures, documents and forms  we have to provide?

Answer:

You will apply tender procedure for Supply contracts.
Please find attached necessary PRAG templates.


Question:

I have a few questions about procurement and exchange rate. Here they are:
1. Delegation has transferred the money on December 31. but the money is on „…“ account on January 4th. Which exchange rate we should use, the one from 4th January or 31th December?
2. Does the contracts should be both on Serbian and English?
3. We are going to use 3 bids for procurements, and my question is: where we can find the document examples for procurements in Word ?

Answer:

1. Please refer to the Article 15.9 of the General Conditions applicable to your Grant contract, which states the following:
Rules for currency conversion
15.9. The Contracting Authority shall make payments to the Coordinator to the bank account referred to in the financial identification form in Annex V, which allows the identification of the funds paid by the Contracting Authority. The Contracting Authority shall make payments in euro or in the currency of the country to which it belongs, in accordance with the currency set in the Special Conditions.
Reports shall be submitted in the currency set out in the Special Conditions, and may be drawn from financial statements denominated in other currencies, on the basis of the Beneficiary(ies)’s applicable legislation and applicable accounting standards. In such case and for the purpose of reporting, conversion into the currency set in the Special Conditions shall be made using the rate of exchange at which the Contracting Authority ‘s contribution was recorded in the Beneficiary(ies)’s accounts, unless otherwise provided for in the Special Conditions.
Costs incurred in other currencies than the one used in the Beneficiary(ies)’s accounts shall be converted using the monthly Inforeuro on the date of payment or according to its usual accounting practices if so provided for in the Special Conditions. In the event of an exceptional exchange-rate fluctuation, the Parties shall consult each other with a view to amending the Action in order to lessen the impact of such a fluctuation. Where necessary, the Contracting Authority may take additional measures such as terminating the Contract.

2. Please note that the official language of this CfP is English.

3. Depending on the type of procurement, please find attached necessary PRAG 2013 templates. Attached: Works PRAG, Supplies PRAG, Services PRAG


Question:

We want to ask you what shall we do about tender for media services, regarding Opening/closing conferences?
We have in our budget costs for conferences which include also media covering.
Should we excluded this service in tender for Media services for whole project on public procurement?

Answer:

Please note that in accordance with PRAG Article 2.4.1. Which procurement procedure to apply, the Grant beneficiaries are not to artificially split potential contracts in order to circumvent procurement thresholds.


Question:

Could you check our tender documents for media services and initial opening conference of the project.  Attached: Tender Dossier

Answer:

PMU or Contracting authority is not authorised to check and approve tender dossiers prepared by Grant beneficiaries.


Question:

We have question regarding single tender that we would like to launch. We are aware that similar activities should be merged and jointly specified in tender dossier. But is it possible to merge budget lines that refer to different activity in the project, i.e. is it possible in our project to merge lines 5.7.1 and 5.7.5, which refer to different seminar/trainings:. 5.7.1 is service regarding organization of seminars for 24 participants (accommodation), while 5.7.5 is service regarding travel costs for different seminar (100 participants. Please see table bellow with description of respective budget lines and matching activities that are of different matter.
5.7.1 Organization of 2 seminars for (female) Roma organizations (two-2day seminars – HB, refreshments, etc. for 24 participants and 2 experts) Per seminar 2,00 2500,00 5000,00
5.7.5. Travel for participant of vocational trainings Per person 100,00 30,00 3000,00

Answer:

Yes, it is possible to merge those budget lines because they refer to the same/similar services to be procured irrelevant of the project activities to be implemented.


Question:

We are looking for clarification concerning a specific tender for goods regarding „…“. Namely, project team has identified single tender for following budget lines:
3.5.1. Winter jacket with the EU logo ( 455,00 eur)
3.5.2. Protective coat ( 120,00 eur)
3.5.3. Hygiene gloves (24,00 eur)
3.5.4. Hygienic material for service provision: ( Purchase of a basic hygienic material for service provision in user’s homes (cleaning Cloths, Dust Mop, Dusting Spray, Furniture Polish, Trash Cans, Trash Can Liners, All-Purpose Cleaner, Kitchen Cleaner or Wipes, Bathroom Cleaner or Wipes, Sponges, Paper Towels, Scrubbers, Gloves, etc)) (5,400 eur)
Total value of all budget lines is 5,999,00 Eur
Question is: Do we need a proof of origin issued by Chamber of Commerce in country of export ( the lump sum exceed 5,000,00 Eur) or we can enclose some other specific certificate?

Answer:

Please refer to the Article 2.3.1. The Rules on nationality and origin – Origin of goods of the PRAG, which states the following:
All goods (supplies and materials) purchased under a contract financed under an EU instrument, including the EDF, must originate from the EU or from an eligible country (see above, ‘nationality’, and below, ‘exceptions to the rule on nationality and origin’).
Additionally, please also refer to the subsection Proof, which states the following:
When submitting its tender, the tenderer must state expressly that all the goods meet the requirements concerning origin and must state the country(ies) of origin.. When tendering for systems comprising more than one item, the origin of each item in the system must be specified. The supplier may be requested to provide documents supporting the stated origin. In this case, the supplier must provide a certificate of origin or additional information considering that the issuing authority may refuse to issue at tendering stage a certificate of origin without presentation of commercial invoices.
The official certificates of origin must, in any case, be submitted before provisional acceptance. Failing this, the Contracting Authority will not make any further payment to the Contractor.
Certificates of origin must be issued by the competent authorities of the goods’ or supplier’s country of origin (usually the Chamber of Commerce) and comply with the international agreements to which that country is a signatory.
It is the Contracting Authority’s obligation to check the existence of a certificate of origin. Where there are serious doubts about the authenticity of a certificate of origin or the information it contains (e.g. because of discrepancies in the document, spelling errors, etc.), the Contracting Authority should contact the issuing authority and request confirmation of the authenticity of the documents submitted and the information it contains. For EDF procurement, supplies originating in the Overseas Countries and Territories are regarded as originating in the EU.
Another referential document regulating rule of origin is Annex IV, and its article 2.2, which states the following:
If the basic act or the other applicable instruments so require, the tenderer must prove the origin of the supplies acquired under the grant. For the purpose of this annex, the term „origin“ is defined in chapter 2 of Regulation (EC) No 450/2008 of the European Parliament and of the Council of 23 April 2008 laying down the EU Customs Code (Modernised Customs Code). For equipment and vehicles of a unit cost on purchase of more than € 5 000, contractors must present proof of origin to the Beneficiary(ies), at the latest when the first invoice is presented. The certificate of origin must be made out by the competent authorities of the country of origin of the supplies and must comply with the rules laid down by the relevant Union legislation.
Finally, please consult document attached for the list of eligible countries under this programme. Attached: Eligibility Programmes


Question:

Are you able to send or tell us where we can find the list of countries (IT equipment manufacturers) of which we can buy two laptops for the purpose of further project activities based on the approved project budget?

Answer:

Please refer to the document attached where list of eligible countries under IPA programmes is presented.
Attached: Eligibility Programmes


Question:

I would like to kindly ask for your confirmation that the attached document is appropriate (and enough) proof of origin for the vehicle procured.
The document is submitted in original to us, in tender dossier. According to our knowledge, this is also the document checked by MUP Serbia for each imported vehicle. Attached: Compressor Origin

Answer:

In accordance with Article 4.3.9.4. Evaluation of technical offers for Supply contracts of PRAG, Rule of origin section states the following:
Rule of origin: All tenders must fulfil the requirements listed in point 2.3.1. In case of any doubt as to the origin of goods, additional information must be requested. Should doubts persist, the advice of the European Commission should be sought (if it is not the Contracting Authority).
The tenderer will be required to provide proof of origin in the form of a Certificate of Origin or other official documentation as prima facie evidence, before the contract is signed if possible.
To establish origin, one must determine where the product in question has been obtained or produced. Tenders which clearly fail to satisfy the rule of origin must be rejected.


Question:

We are very pleased to have you as our  support and guide in implementation of EU procedures which are sometimes numerous and complex. We thank you for sending us package Supplies PRAG 2013. However, since our next procurement is up to 4.400 EUR, we would like to perform a single tender procedure for Tender for Supplies (computers, tablets, projector). The package Supplies PRAG 2013 has a long list of annexes and we need your help in order to find out which of the annexes are obligatory for this procurement?

Answer:

Regarding single tender procedure for Supplies contract, please refer to the PRAG Article 4.3.2. Drafting and content of the tender dossier, which states the following:
…. TENDER DOSSIER CONTENT
A. Instruction to Tenderers
B. Draft Contract, Special Conditions and Annexes (incl. Technical Specifications)
C. Further Information
D. Tender Form for a Supply Contract
See the standard format in Annex C4.
The tender dossier must clearly state whether a firm, non-revisable price must be quoted. The prices should normally be fixed and not subject to revision, but in specific cases a price revision clause might be justified. If that is the case, the tender dossier must lay down the conditions and/or formulas for revision of prices during the lifetime of the contract. In such cases the Contracting Authority must take particular account of:
a) the object of the procurement procedure and the economic situation in which it is taking place;
b) the type of tasks and contract and their duration;
c) its financial interests.
A guarantee is required in return for a pre-financing payment exceeding € 300 000. However, where the contractor is a public body, the authorising officer responsible may waive that obligation, depending on his or her risk assessment. The guarantee will be released after provisional acceptance of the goods in accordance with the terms of the contract.


Question:

We have a few questions about the procurement of fuel BL 2.2. Local transportation (21 months x 22 days x 100 km x 0,15 EUR) in the project „…“
The total budgeted amount for the procurement of fuel is 6.930 EUR. Budgeted amount for the first year is 2.970 EUR.
– Is it necessary to conduct the procurement of fuel, and if necessary, according which procedure to carry out procurement? Whether to apply national law or PRAG procedure?
The Grant beneficiaries are to apply PRAG procedures for procurement under this CfP.
– Is it necessary to conduct a procurement for the entire duration of the project or separately for the first year, and later for the second year, as plans for procurement under our legislation are made by years?
The procurement for fuel is to be conducted for the full amount specified in the project budget and for the entire duration of the project.

Answer:

We have a few questions about the procurement of fuel BL 2.2. Local transportation (21 months x 22 days x 100 km x 0,15 EUR) in the project.
The total budgeted amount for the procurement of fuel is 6.930 EUR. Budgeted amount for the first year is 2.970 EUR.
– Is it necessary to conduct the procurement of fuel, and if necessary, according which procedure to carry out procurement? Whether to apply national law or PRAG procedure?
The Grant beneficiaries are to apply PRAG procedures for procurement under this CfP.
– Is it necessary to conduct a procurement for the entire duration of the project or separately for the first year, and later for the second year, as plans for procurement under our legislation are made by years?
The procurement for fuel is to be conducted for the full amount specified in the project budget and for the entire duration of the project.


Question:

You pass on the question of the project partners (the following letter attached to an e-mail) Association „…“ is a partner to „…“ on the project „…“
According to the project budget, the purchase of a vehicle in the amount of €12,000 within budget line 3.1 has been envisaged. The cost of the vehicle which could satisfy operational needs of our association slightly exceeds the above mentioned envisaged amount. Since the difference between the envisaged cost for the vehicle and the cost of the vehicle we are interested in purchasing is between € 500-900, we would like to ask you if it would be possible to take this amount from budget line 4.1, which also refers to the vehicle.

Answer:

If the co-applicant wants to propose a budget modification request regarding increasing the cost of the vehicle, please follow steps provided in the attached documents. – Attached Contract Modification doc and Contract Modification Budget


Question:

On 18th May 2016, during the meeting of the Committee for the Vehicle Supply in the Municipality of … , we have concluded that certain mistakes have been done in the Vehicle Supply Procedure.
Chosen procedure for the Vehicle Supply is Competitive negotiated procedure.
Due to a mistake the documentation for the Service Contracts has been sent to the tenderers instead of the documentation for the Supply Contracts . (In the attachment you will find the documentation which has been sent to the tenderers).

Previously mentioned documentation has been sent to three tenderers.
Deadline for the tender submission was 18th May 2016. Only one tender has been received until the deadline and the tender opening session has not been organized yet.
I would like to mention that, according the the budget, the amount dedicated for the Vehicle Supply is 12.000,00 euros.

In this case, is it necessary to cancel the procurement procedure?
If we cancel the procurement, should we choose again the Competitive negotiated procedure for Supply Contracts or the Single tender procedure in the new proceeding ( please, indicate us, also, the deadline for the tender submission in the Single tender procedure)?May we invite the same tenderers in the new proceeding?
Please, be so kind to send us the answers as soon as possible.

Answer:

Yes, it is necessary to cancel the tender procedure since inappropriate type of procurement documents have been sent to the potential tenderers.


Question:

Is it obligatory  that the Contractor of the work on the Inclusive Website, issue an invoice for payment after approval of the Website by the EU delegation, or it is possible to make a payment before Visibility approval?

Answer:

Please note that all visibility material prior to publication is to be consulted with the PMU team and the Contracting authority.

In this sense, it is advisable firstly that draft version of the website is firstly consulted with the PMU and the Contracting authority, and to receive an approval after which you are to reimburse the Contractor.


Question:

Single tender procedure for vehicle supply will be used in the repeated process. What is the deadline for the tender submission in the single tender procedure?

Answer:

Officially, the PRAG does not prescribe minimum period for submission of tenders in single tender procedure.
However, whatever the procedure used, the Contracting Authority i.e. Grant beneficiary must ensure that the conditions allow fair competition.
Also, please bear in mind that in all cases, the Contracting Authority must draft a report explaining the Rules of application with participant(s) in the negotiations were picked and the price set, and the grounds for the award decision (see Annex A10b for single tender procedures attached to this email).
The Contracting Authority must follow the negotiation steps shown in the negotiation report template (Annex A10b for single tender procedures) and ensure that basic principles relating to procurement procedures such as checking compliance with eligibility rules (nationality rules) Selection and exclusion criteria are duly applied.


Question:

We would kindly like to ask you for a clarification related to rules of origin for purchasing of computer equipment on the „…“ project.

We understood at the PMU presentation in Kraljevo that we should follow the rule of origin in the implementation of this project.
However, it remained unclear what does this mean in practice and what paper work we should be asking from the supplier/contractor when conducting this kind of purchases? Should the certificate of origin be confirmed/issued by the national Chamber of Commerce?
Also, could you please comment if our understanding is right, that the certificate of origin is not required if the unit cost on purchase is less then 5000 EUR (given the Annex 4 Special Conditions stipulates that For equipment and vehicles of a unit cost on purchase of more than € 5 000, contractors must present proof of origin to the Beneficiary(i.e.)?
Thank you very much for your advice on this matter.

Answer:

Please consider Article 2.3.1. of the PRAG, which states the following:

…Origin of goods
– The rule of origin:
All goods (supplies and materials) purchased under a contract financed under an EU instrument, including the EDF, must originate from the EU or from an eligible country (see above, ‘nationality’, and below, ‘exceptions to the rule on nationality and origin’).
….The proof:
When submitting its tender, the tenderer must state expressly that all the goods meet the requirements concerning origin and must state the country(ies) of origin. When tendering for systems comprising more than one item, the origin of each item in the system must be specified. The supplier may be requested to provide documents supporting the stated origin.
In this case, the supplier must provide a certificate of origin or additional information considering that the issuing authority may refuse to issue at tendering stage a certificate of origin without presentation of commercial invoices.
The official certificates of origin must, in any case, be submitted before provisional acceptance. Failing this, the Contracting Authority will not make any further payment to the Contractor.
Certificates of origin must be issued by the competent authorities of the goods’ or supplier’s country of origin (usually the Chamber of Commerce) and comply with the international agreements to which that country is a signatory.
It is the Contracting Authority’s obligation to check the existence of a certificate of origin. Where there are serious doubts about the authenticity of a certificate of origin or the information it contains (e.g. because of discrepancies in the document, spelling errors, etc.), the Contracting Authority should contact the issuing authority and request confirmation of the authenticity of the documents submitted and the information it contains. For EDF procurement, supplies originating in the Overseas Countries and Territories are regarded as originating in the EU.
Also, regarding your second question, the supplier is not requested to provide Certificate of origin if the unit cost of the equipment and vehicles is less than 5,000 EUR, however, the supplier still has to respect the provisions regarding overall Rules on nationality and origin and has to provide a Statement in which it will state expressly that all goods meet requirements concerning origin and country of origin.


Question:

Do we need the approval by you (technical support):
1) of the prepared documentation for the single tender procedure before we send it to the potential tenderers;
2) of the Single tender report before we sign the contract with the selected tenderer?

Answer:

Neither Contracting authority or PMU issues approval of the tender documentation for any Grant beneficiary. Grant beneficiaries are obliged to use PRAG templates and documents and procedures, all of which is to be verified during regular and ad hoc monitoring visits as well as during regular audit missions by the Contracting authority whose goal is to check eligibility of expenditures.


Question:

My question is regarding the necessary documentation for the single tender. I found a list of the necessary documents in your instructions, I just want to confirm whether this is all we need for this procedure? Below you can find list of documents that need to be filled by the supplier.
– Instructions to tenderers
– Draft contract and special conditions, including annexes
Draft contract
Special conditions
Annex I: General conditions
Annex II + III
Annex IV
Annex V; Forms
– Administrative compliance grid
– Evaluation grid
– Tender form for a supply contract
I just want to add that we already have 3 offers, as you suggested to get for all purchases.

Answer:

Presented below documentation for the tender dossier to be sent to the potential tenderers is adequate.

This email does not bear the approval of the tender dossier content or the eligibility of the expenditures to be incurred.

Question:

We would like to organise a media conference and project promotion. Where can we found guidelines for organisation of public events and other instructions in regard to visibility?

Answer:

All instructions, templates and guidelines are given within Tool on Visibility which can be downloaded from the project website at: http://www.socijalnainkluzija.rs/tools-and-templates-for-grant-beneficiaries/?lang=en