Cypriots rush to secure EU funding

Cyprus businesses, non-governmental organisations, research centres and other institutions are rushing to secure access to billions of euros made available under the EU’s 2007-2013 funding assistance programmes.

Until recently, the process of getting access to EU funds was seen as very difficult and expensive, but that has changed thanks to the European Institute of Cyprus and its innovative web site at www.eicy.eu detailing hundreds of EU and national programmes.

Dr. Neophytos Chrysochos, Acting Director of the EIC told the Financial Mirror that Cyprus-based enterprises have access to 207 programmes with more in the pipeline covering a multiple range of areas and sectors.

The EIC has categorised funding programmes into four major categories of European, Co-Funded, National and Neighbourhood.

Dr. Chrysochos said that those interested may search the site and go through programmes one at a time, or choose an easier way by becoming a member, which is free of charge, and opt to receive email or SMS alerts on new programmes. The Institute also has a help line (8000 1112) manned by expert officers who provide help and guide people on how to navigate through the different programmes.

“The alert system helps people save time since there is no more need for them to go into the vast database,” added Dr. Chrysochos.

Those wishing access to European and Neighbourhood programmes need to team up with other EU-member establishments, while those aiming for National and Co-Funded programmes will be directed to the local centres, which usually are the Cyprus Planning Bureau and the various Ministries.

“Our task is to transfer knowledge to the people and help as many Cyprus based establishments gain access to EU and national funding programmes.”

The EIC also allows Cyprus based enterprises to register separately if they wish to participate in programmes that have been initiated by other EU member enterprises. In effect, a Cyprus company puts itself up to enter into a project led by a company from another EU member state.

Business establishments that believe they are innovative and have new ideas to improve competitiveness and help the country in general may gain access to EU funds through the help of the Institute, which Dr. Chrysochos says is here to help in the preparing and submission of applications either at national level or to the EU.

 

Lots of money now

 

Dr. Chrysochos said access to national or EU programmes may not require a business plan for every project, but it helps if people prepare well and submit feasibility studies on why they wish to gain access to EU funds and how viable and sustainable such projects will be in the future.

Since the new funding program covers the 2007-2013 period, there is a better chance to secure funding for various programmes now that most are opening and the budgets have not yet been exhausted rather than at the end of the period.

Also, that programmes open and close constantly, which is why it is better for those interested to enrol to the email and SMS alerts.

As outlined by the General Manager of the Planning Bureau, Andreas Moleskis, Cyprus will have access to a total of 800 mln euros for the period 2007 – 2013 through the EU’s Structural Funds and Agricultural Development Funds, which could top 1 bln euros with the contribution of the Republic of Cyprus national programmes.

Of the 800 mln euros, 160 mln will be from the Agricultural Development Fund and 640 mln from the Structural Funds, and will be allocated for the competitiveness of the Cypriot economy including infrastructure and human resources development.
Moleskis stressed that “the primary objective is the full absorption of the European grants,” adding that so far this objective is met in full since not a single euro was lost from the European funds during the period 2004 – 2008.

“Research and innovation are the new challenges to which we must respond to be able to produce products and services of high added value, which could compete within the globalised environment,” he added.

 

Cyprus experience

 

Dr. Chrysochos said the reason why many Cypriots could not get easier access to previous EU funds is because when Cyprus joined the EU in May 2004, it was in the middle of the previous funding period of 2004-2008, so it was difficult for many to organise themselves and file applications. Still, during the last two years, Cyprus based research institutions have gained access to 45 mln euro funding programmes, while Cyprus has also drawn substantial amounts from the EU Agricultural programmes during the same period.

Cyprus also needs to create the right infrastructure of having competent consultancy firms to aid businesses to tap into EU and national funds. At the moment, most Cypriots apply for National and Co-Funded programmes, which are easier for them to understand and communicate with officials at local level, but Dr. Chrysochos encourages people with innovative ideas to proceed and aim for EU programmes, which are far substantial and thus there is a better chance of securing larger and longer-term funding aid.

 

Fast approvals

 

Dr. Chrysochos said once a complete application is made, it will take no more than 2-3 months for approval from the EU or national authority. And the funding usually covers 60-80% of the project costs.

As projects are implemented, the recipient needs to file progress reports together with financial reports that will state the degree of progress, the use of funds and if the project is meeting its objective.

“For this purpose, I strongly recommend the appointment of expert consultants to help in the preparation of the reports,” said Dr. Chrysochos.

Once the project is approved, the usual practise is for 20% of the funds to be released on approval and thereafter 40% as the project is in progress and 40% upon completion. Soft projects like a seminar organisation would have the above funding mix but for tangible projects where there is a need to purchase machinery, then the funding structure would change.