How to Prepare a Project

Idea of and Search for a Suitable Program

Have you come across an activity that is feasible in your municipality, school, business, non-profit organization, etc., for which you would like to receive support from the European Union? At the first stage, it is necessary to find out, which operational program would come into force for acquisition of the subsidy in your case. In the Section Programs 2007–2013, nyou will find features of each of them. One may follow the sphere of your activity (thematic OPs) or the place where you realize your activities (regional operational programs, programs for Prague and programs of cross-border cooperation).
 
Your project has to be consistent with the objectives of the operational program, from which you wish to draw finances. You can find details of the OP objectives in the program and implementation documents issued by individual managing authorities, which are easily available at the respective websites (see the bookmark Contacts). We recommend careful studying of these materials.
 
In general, it applies that EU funds support generally beneficial projects that will contribute to improvement of the social and economic environment in the Member States and their regions. These are by no means purposeless financial injections into the non-profit-making sector, private companies, municipalities, regions or any other entities. On the contrary - the beneficiaries have to prove and specifically justify the general beneficial effect of their plans.
 
The general beneficial effect is nevertheless understood in a wider meaning, not just as a social activity. Therefore private companies asking for subsidies for example for a new technology, training of employees, etc. are definitely not excluded from the receipt of the support from European funds. All applicants, however, must prove in their project application the social overlapping of the planned activities within their project. As concerns private companies, this is frequently, for example, the regional employment support.

Specification of a Suitable Call

Operational programs accept project applications within the so-called calls, i.e. time-limited stages intended for filing of applications for a subsidy. In order to be successful, it is essential for you to monitor which calls are active at the moment and which ones are planned for the closest period of time. You can find this information by various criteria in the Section Calls. Employees of the managing authorities will naturally also provide you with advice.
The time "window" of a call is usually open for several weeks or even months. In relation to more complex projects, this period may not be sufficient for detailed preparation of the project application. Hence it is recommended to prepare the project application in advance.

Preparation of the Project Application

The project application represents a key document that will decide on whether you will be successful in your effort to get finances from the European funds or not. When preparing the application, you shall be guided by the applicant's manuals and other methodical instructions prepared by the corresponding operational program. At the same time, consultations with employees of the managing authority or the intermediate body, seminars, conferences, etc. are available. During the stage of preparation, don't be afraid to ask questions in order to include everything necessary into your project application.
 
The applications have to be filled out in the electronic form. Most operational programs use the internet application BENEFIT for this. Nevertheless, the OP Environment prepared for the applicants the electronic tool BENE-FILL and the OP Enterprise and Innovation prepared the application eAccount. All above-mentioned applications are available at the address https://www.eu-zadost.cz/stromFormularu.aspx.
 
Enclosures that might be requested in addition to the project application:
 
Logical Framework
Well-arranged material briefly describing the project objectives in connection with specific activities and outcomes of its activities.
 
Feasibility Study
The feasibility study serves to evaluate the workability and viability of the project. It describes the financial aspect of all activities and it evaluates the effectiveness of spent finances. It usually ranges from 20 to 50 pages. This document is binding and the objectives specified therein will have to be met, otherwise the subsidy may be withdrawn. The less costly or the so-called soft (non-investment) projects require only a simplified feasibility study. More expensive, usually investment projects require the standard feasibility study.
 
Cost-Benefit Analysis (CBA)
The methodology for evaluation of the positives the project brings and of what the project takes both in terms of finances and in social terms. The abbreviation means Cost-Benefit Analysis.
 
Project Budget
It is necessary for every application for acquisition of finances from the European Union funds. It is important due to the fact that it forms the basis for the final statement of accounts.
 
This list of enclosures is to be used only for overall orientation as specific requirements are determined by each individual operational program separately.
 
Selection of entities, to whom the subsidy will be granted, shall be carried out according to the evaluation and points criteria that are publicly available in advance. They are usually a part of the information for the concerned call or they are specified in the program document of the OP.
In the case your project is successful, the contract on financing will be concluded with you. This is a moment suitable for celebration but at the same time it is only the beginning of a long journey.

What to Be Aware of during Realization

Administration 
When putting the project into action, you also have to spare some time for preparation of monitoring reports evidencing what and in what manner you have already carried out and how you meet the indicators set by yourselves in the project application. In addition, it is necessary to also execute a request for payment. Finances are paid either after the project completion or by its individual stages planned in advance in the feasibility study and other parts of the project application.
 
Financing 
But for a few exceptions, the costs of the project are reimbursed to the applicants retroactively. During realization of the project or at least its part, you have to finance it from your own resources or via a bank loan.
 
Ensuring Project Sustainability 
In most cases, European standards require for the results achieved by the project to last for a certain period of time. This period of time (= sustainability of the project) is most frequently five years but it may differ according to the OP requirements.
 
Public Aid 
In the EU, a general ban applies to support of enterprise from public budgets that might affect the trade between Member States. The European funds also adhere to this rule, but within the funds there are certain exceptions resulting from the Treaty Establishing the EC that are commonly used (a bloc exception, de minimis rule - it makes it possible to grant public aid to one beneficiary up to the amount of EUR 200,000 in the course of three years - etc.)
Still it is important to know whether your project is a so-called project establishing unauthorized public aid despite the fact the exception applies to it. The fact is that projects establishing and not establishing public aid differ in the manner of financing. Projects establishing public aid usually have a lower percentage of costs reimbursed and they subtract their profit from the granted subsidy.
 
In order to determine whether a project establishes public aid, it is not decisive if the project implementator is a businessman, non-profit organization or a territorially administrative unit. The activity related to the project realization is a determinant.
 
Three basic features of unauthorized public aid:
  1. It is provided from public finances.
  2. It benefits the concerned enterprise, municipality, non-profit organization etc. as long as it is engaged in the activity, in relation to which there are competitors and within which economic competition exists.
Its provision adversely affects the economic competition and it interferes with or threatens to interfere with the trade between the Community Member States.
 
Detailed information about the issues of gaining support from the funds are included in the brochure How to Prepare and Manage a Project in a Nutshell issued by the intermediate body Centre for Regional Development (CRD) last year.
The CRD, being an allowance organization of the Ministry for Regional Development of the Czech Republic established in 1997, actively supports regional policy of the Government of the Czech Republic. Services of the Centre are intended for experts, representatives of state administration and self-administration as well as the wide public, for example small and medium-sized enterprises.