Regulations Regarding Activity 3.4.3.3 "Support to Private Owners of Cultural Monuments in Monument Preservation and in the Effective Use of Their Socio-economic Potential" of the Supplement to the Operational Programme "Infrastructure and Services"

Issued pursuant to Section 18, Clause 10 of the
Law On Management of European Union
Structural Funds and the Cohesion Fund

I. General Provisions

1. This Regulation prescribes:

1.1. the procedures for the implementation of Activity 3.4.3.3 "Support to Private Owners of Cultural Monuments in Monument Preservation and in the Effective use of Their Socio-economic Potential" of Measure 3.4.3. "Socio-economic Impact of Cultural Environment" of Priority 3.4 "Quality Environment for Life and Economic Activity" of the Supplement to the Operational Programme "Infrastructure and Services" (hereinafter - Activity);

1.2. the criteria for the evaluation of project applications for the European Regional Development Fund (hereinafter - the criteria for the evaluation of project applications);

1.3. the requirements for a project applicant for the European Regional Development Fund (hereinafter - project applicant);

1.4. the Responsible Institution and the Co-operation Institution, the division of the competence between the two institutions and the co-operation procedures; and

1.5. the form of the functional subordination of the Responsible Institution and the Co-operation Institution.

2. The purpose of the Activity is to ensure the preservation, accessibility to the public and socio-economic use of such cultural monuments, which are in private ownership and ensure important public functions.

3. The type of implementation of the Activity shall be open call for project applications. The Responsible Institution shall organise an open call for project applications in one round for all the financing available in the Activity, announcing a notification regarding the submission of project applications. If project applications for the whole financing available in the Activity are not applied in the round for the submission of project applications, the Responsible Institution shall organise the second round of the submission of project applications for the remaining financing.

4. The Activity shall be co-financed from the resources of the European Regional Development Fund. The financing from the European Regional Development Fund available within the framework of the Activity shall be 3 999 999 lats. Private financing ensured by a project applicant shall be not less than 2 000 000 lats.

[15 June 2010]

5. The financing from the European Regional Development Fund available within the framework of the Activity per one project shall be not more than 1 999 999 lats and not less than 250 000 lats. The intensity of the financing from the European Regional Development Fund shall not exceed 50% from the total eligible costs.

6. The implementation of the Activity shall be ensured by the Responsible Institution and the Co-operation Institution. The Responsible Institution shall be the Ministry of Culture (hereinafter - Responsible Institution), the Co-operation Institution shall be the Central Finance and Contracting Agency (hereinafter - Co-operation Institution).

7. The Responsible Institution shall:

7.1. ensure the implementation, supervision and control of the Activity, including the fulfilment of the principle referred to in Article 93(1) and (2) of Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999, at the level of the Activity;

7.2. ensure the selection and evaluation of project applications, including the by-law of the commission for evaluation of project applications;

7.3. ensure the establishment of the commission for evaluation of project applications;

7.4. develop the methodology for the filling-in of a project application form and provide a project applicant with information regarding the preparation of a project application;

7.5. develop the methodology for the development of an object operational plan;

7.6. take a decision regarding approval, conditional approval or rejection of a project application and inform a project applicant thereof (if a project application is approved, the Co-operation Institution shall also be informed);

7.7. accumulate data regarding a project application in accordance with the regulatory enactments regarding the establishment and use of the information system for the management of the European Union Structural Funds and the Cohesion Fund;

7.8. co-ordinate a standard contract regarding the implementation of a project with the Co-operation Institution;

7.9. co-ordinate amendments to the contract, if amendments concern the term of implementation, the anticipated results, changes in the amount of the total eligible costs or the division thereof by years;

7.10. analyse the problems of implementation of the Activity and provide proposals to the Managing Authority regarding improvement of the implementation of the Activity; and

7.11. provide the public with information and ensure publicity in matters related to the Activity in accordance with the regulatory enactments regarding publishing such information, which is related to projects of European Union funds and the provision of the publicity and visual identity requirements.

8. The Co-operation Institution shall:

8.1. ensure the implementation, supervision and control of the Activity, including the fulfilment of the principle referred to in Article 93(1) and (2) of Council Regulation (EC) No 1083/2006 at the level of projects;

8.2. develop a standard contract regarding implementation of the project;

8.3. enter into a contract with the final beneficiary from the European Regional Development Fund (hereinafter - final beneficiary) regarding implementation of the project;

8.4. perform pre-examination of project procurements in accordance with the regulatory enactments regarding pre-examination of project procurements of the European Union Structural Funds and the Cohesion Fund;

8.5. [15 June 2010];

8.6. provide information to the final beneficiary regarding project implementation and the fulfilment of contractual provisions;

8.7. analyse the problems of implementation of projects and provide proposals to the Managing Authority regarding improvement of the implementation of projects;

8.8. verify payment requests submitted by the final beneficiaries, approve the sums of eligible expenditure, prepare payment orders, as well as prepare statements of expenditure and send them to the Managing Authority for examination;

8.9. evaluate project risks, each year prepare a plan of inspections at the project implementation sites and perform the referred to inspections;

8.10. in accordance with the procedures specified in regulatory enactments, accumulate data regarding projects in the information system for the management of the European Union Structural Funds and the Cohesion Fund, except the data referred to in Sub-paragraph 7.7 of this Regulation; and

8.11. co-operate with the Responsible Institution in matters related to informing the public.

9. The Co-operation Institution shall be under the functional supervision of the Responsible Institution.

II. Requirements for Project Applicants

10. A legal person or a natural person registered in the commercial register who owns a cultural monument may submit a project application within the framework of the Activity.

11. Requirements for a project applicant shall be as follows:

11.1. it has not been recognised by court adjudication as insolvent (including is not in the process of restoration or in the process of legal protection), the economic activities thereof have not been terminated or, in accordance with the information available in the commercial register, is not in the stage of liquidation (if applicable);

11.2. it has not provided false information to the Co-operation Institution in relation to the implementation of projects co-financed by the Structural Funds;

11.3. within the interests thereof, a natural person has not committed a criminal offence, which has affected financial interests of the Republic of Latvia or the European Union, and it has not been applied coercive measures;

11.4. it has not received financing or is not intending to receive financing for the same eligible costs within the framework of other activities from local, regional, State resources or resources of the European Union; and

11.5. it has observed the conditions for the receipt of the financing in accordance with the regulatory enactments regulating allocation of the funds from the State budget for the implementation of projects co-financed by a European Union fund and the procedures for the preparation of a statement of expenditure.

12. A project applicant may submit only one project application within the framework of the Activity.

III. Activities to Be and Not to Be Supported, Eligible and Ineligible Costs

13. The activities to be supported within the scope of a project shall be the preservation and restoration of such private objects of cultural heritage, in which wide access to the objects to be restored to the public is ensured.

14. Only such eligible costs shall be supported within the framework of the Activity, which are directly related to the activities performed within the scope of the project and are commensurate and substantiated.

15. Financing shall not be allocated to activities, for which the final beneficiary has made payment prior to entering into a contract regarding implementation of the project, except the case referred to in Sub-paragraph 16.1.1 of this Regulation.

16. The following costs shall be eligible within the framework of the Activity:

16.1. direct eligible costs:

16.1.1. project preparation costs (except the costs for filling-in of the form), which have occurred after 1 January 2009 - their amount shall not exceed 10 per cent of the total direct eligible costs of the project, which have been performed, observing the requirements specified in the regulatory enactments regulating the procurement field (except the costs that have occurred on the basis of an employment contract), including:

16.1.1.1. costs for preparation of a building design;

16.1.1.2. costs of engineering research;

16.1.1.3. costs for survey of a building design;

16.1.1.4. costs of cultural and historical research; and

16.1.1.5. costs of cultural and historical inventory;

16.1.2. project supervision costs (except the costs that have occurred on the basis of an employment contract):

16.1.2.1. costs of construction supervision;

16.1.2.2. costs of supervision by the author; and

16.1.2.3. costs of archaeological supervision;

16.1.3. costs for repair, restoration and conservation of buildings and structures in accordance with the regulatory enactments in the field of protection of cultural monuments (except the costs that have occurred on the basis of an employment contract);

16.1.4. costs for the development of the territory adjacent to the cultural monument if the territory has been included in the protection zone of the cultural monument (except the costs that have occurred on the basis of an employment contract);

16.1.5. value added tax, which is directly related to the project co-financed if the project applicant cannot recover it completely or partially in accordance with the regulatory enactments regulating taxes;

16.2. indirect eligible costs - unforeseen expenditure for the project implementation shall not exceed five per cent from the total direct eligible costs of the project (unforeseen expenditure, if necessary, may be used for covering direct eligible costs related to the project implementation).

[15 June 2010]

17. Within the framework of the Activity such costs shall be ineligible, which are related to information and publicity measures regarding project implementation.

18. Within the framework of the Activity the following costs shall not be eligible and shall not be included in the project application:

18.1. administrative costs;

18.2. interest payments, payments for money transfers, commission, losses for currency exchange and other costs not specified as eligible;

18.3. customs duties and fee payments, value added tax, except the case referred to in Sub-paragraph 16.1.6 of this Regulation;

18.4. surcharges, contractual penalties, late-payment interest, fines and legal expenditure;

18.5. purchase or lease costs of immovable property;

18.6. costs related to leasing transactions;

18.7. costs performed prior to entering into a contract regarding project implementation, except the case referred to in Sub-paragraph 16.1.1 of this Regulation.

[15 June 2010]

IV. Announcing Call for Project Applications and Submission of Project Applications

19. The Responsible Institution shall announce a notification regarding submission of project applications at least one month prior to the commencement of the selection of project applications:

19.1. in the newspaper Latvijas Vēstnesis [the official Gazette of the Government of Latvia];

19.2. on the Internet homepage of the Responsible Institution (www.km.gov.lv).

20. The notification referred to in Paragraph 19 of this Regulation shall specify:

20.1. the title of the Activity;

20.2. the purpose of the Activity;

20.3. the starting and final date of acceptance of project applications;

20.4. the procedures for the submission of project applications;

20.5. the planned informative measures;

20.6. the possibilities for submitting questions; and

20.7. the possibilities for receipt of additional information.

21. In order to apply for the receipt of financing, a project applicant shall submit a project application to the Responsible Institution:

21.1. a project application form (Annex 1);

21.2. the following additional documents:

21.2.1. a copy of the articles of association (if the project applicant is an association or a foundation);

21.2.2. a copy of the value added taxpayer registration certificate, if the project applicant is a person taxable with value added tax;

21.2.3. a statement of the State Revenue Service, which confirms that the project applicant does not have tax debts (the statement on the day of submitting the project application shall not be older than 30 calendar days), or a consent letter of the project applicant (the original of the letter shall be submitted separately, not binding it in the project application), in which the project applicant authorises the Responsible Institution to request a statement from the State Revenue Service regarding the fact that the project applicant does not have tax debts (has a tax debt) (Annex 2);

21.2.4. a statement of the institution or person, which after approval of the project will grant credit resources or other financial resources (if it is intended to attract such). The amount of the financing to be granted, referred to in the statement, together with the resources at the disposal of the project applicant shall cover the expenditure planned in the first year of project implementation. If credit resources or other financial resources are granted by an institution or person, which is not a credit institution, the State or a local government, or a State or local government institution shall additionally submit the annual report of the institution or person on the preceding year or any other document, which confirms the availability of resources in the amount indicated in the statement;

21.2.5. a copy of complete technical project of the object approved by the building authority (if applicable);

21.2.6. a copy of the technical project of the object approved by the building authority for zero cycle (if applicable);

21.2.7. a copy of the sketch project co-ordinated with the building authority (if applicable);

21.2.8. a copy of the planning and architectural task issued by the building authority (if applicable);

21.2.9. copies of all technical provisions issued by the owners or managers of engineering and communication systems (if applicable);

21.2.10. a confirmation of a person with the right to sign that the project applicant will submit a complete technical project of the object approved by the building authority until the deadline indicated by the Responsible Institution (if applicable);

21.2.11. a developed procurement documentation regarding construction (if applicable);

21.2.12. a copy of an estimate of construction costs developed in accordance with the procedures for the determination of construction costs of the Latvian Construction Standard LBN 501-06, on the basis of contracts with the third parties, or an estimate of costs of the anticipated construction, specifying and separating all positions of the work and material costs, which have been included in eligible and ineligible costs of the project (if applicable);

21.2.13. [15 June 2010];

21.2.14. a copy of the decision of the Environment State Bureau on non-application of the environmental impact assessment procedure or a copy of the opinion on the final report on environmental impact assessment (if applicable);

21.2.15. a copy of the opinion of the State Inspection for Heritage Protection, which confirms that the anticipated project conforms to the requirements for the protection of cultural monuments (if applicable);

21.2.16. a copy of the statement of the State Inspection for Heritage Protection regarding the status of the cultural monument to be restored within the framework of the Activity or a consent letter of the project applicant (the original of the letter shall be submitted separately, not binding it in the project application), in which the project applicant authorises the Responsible Institution to request a statement from the State Inspection for Heritage Protection regarding the status of the cultural monument to be restored within the framework of the Activity (Annex 3) (if applicable);

21.2.17. a copy of the document corroborating the property rights of the project applicant registered in the Land Register regarding a property, in which investments are made. If the property has not been registered in the Land Register, a statement of the State Land Service (original) regarding the belonging of the property to the project applicant and the composition, as well as a copy of the fixed assets record card for the property, in which investments are made, or a consent letter of the project applicant (the original of the letter shall be submitted separately, not binding it in the project application), in which the project applicant authorises the Responsible Institution to request a statement from the State Land Service regarding the belonging of the property to the project applicant and the composition, as well as a copy of the fixed assets record card for the property, in which investments are made (Annex 4); and

21.2.18. a copy of a valid operational plan of the object (the operational plan has been developed in accordance with the methodology developed by the Responsible Institution regarding the development of the operational plan of an object).

[15 June 2010]

22. The original of the project application shall be drawn up in accordance with the regulatory enactments regarding the development and drawing up of documents.

23. The project applicant may submit the project application to the Responsible Institution in:

23.1. hard copy, submitting it in person to the Responsible Institution or sending it by post in a registered letter;

23.2. electronic document form, submitting it in person to the Responsible Institution, sending it by post in a registered letter or sending it to the electronic mail address of the Responsible Institution.

24. If the project application is submitted in a hard copy, it shall be submitted in three copies (original, copy and identical electronic copy in an electronic data carrier) with corresponding indications. Each copy of the project application shall be submitted bound together, with numbered pages, with a table of contents, the ends of the string shall be glued on the back of the last page, sealed with the stamp of the project applicant, and information regarding the number of pages in the document, an attestation regarding the correctness of the content of the document, the name of the author of the document, the signature, the date and the place of development of the document shall be indicated on the adhesive label. The consent letters of the project applicant (if applicable) shall be submitted separately, not bound together in the project application, according to Annexes 2, 3 and 4 to this Regulation.

25. If the project application is submitted in an electronic document form, it shall be signed with a safe electronic signature, a time stamp shall be added and it shall be drawn up in accordance with the regulatory enactments regarding the circulation of electronic documents.

26. If the project application is submitted in person or sent by post in a registered letter, it shall be inserted in an envelope or a box, on which the following information shall be indicated:

26.1. addressee: the Ministry of Culture, K.Valdemāra iela 11a, Rīga, LV-1364;

26.2. the title of the Activity;

26.3. the name and address of the project applicant;

26.4. the title of the project; and

26.5. an indication " Do not open prior to commencement of evaluation".

27. If the project application is submitted in an electronic document form, sending it to the electronic mail address of the Responsible Institution, the information referred to in Paragraph 26 of this Regulation shall be indicated in the section "Theme" of the notification of electronic mail.

28. The Responsible Institution shall register receipt of the submitted project application on the day of receipt thereof. The Responsible Institution shall issue a confirmation regarding the receipt of the project application to the project applicant in person immediately or shall send it by post or electronically in an electronic document form within five working days after the end of the deadline for the submission of project applications, signing it with a safe electronic signature in accordance with the regulatory enactments regarding the drawing up of electronic documents.

V. Evaluation and Selection of Project Applications

29. The evaluation of the project applications submitted within the framework of the Activity shall be ensured by the commission for evaluation of project applications (hereinafter - commission). The composition of the commission shall include representatives from the Responsible Institution - the Ministry of Culture and from the subordinated institution thereof - the State Inspection for Heritage Protection. The commission shall operate according to the by-law approved by the Responsible Institution.

[15 June 2010]

30. The representatives of the Managing Authority and the Co-operation Institution may participate in meetings of the commission as observers.

31. The conformity of the project application to the administrative criteria, conformity criteria and criteria for granting financing shall be evaluated with "Yes" - conforms and "No" - does not conform. The conformity of the project application to the quality criteria shall be evaluated by assigning a certain number of points.

32. If the project application does not contain information in order to evaluate the conformity of the project application to one or several evaluation criteria, as well as if the referred to information is illegible or has not been submitted in the Latvian language, it shall be deemed that the project application does not conform to the relevant criterion, or the lowest evaluation shall be assigned in the relevant criterion.

33. The order for evaluation of the criteria shall be as follows:

33.1. at first the commission shall evaluate the conformity of the project application to the criteria referred to in Paragraphs 24, 25, 26, 27 and 33 of Annex 5 to this Regulation. If the project application does not conform to even one of the referred to criteria, the evaluation of the project application according to other criteria for evaluation of project applications shall not be continued;

33.2. if the project application conforms to the criteria referred to in Paragraphs 24, 25, 26, 27 and 33 of Annex 5 to this Regulation, the project application shall be evaluated in accordance with the criteria referred to in Paragraphs 12, 13, 14, 17, 19, 20, 21 and 22 of Annex 5 to this Regulation. If the project application does not conform to even one of the referred to criteria, the evaluation of the project application according to other criteria for evaluation of project applications shall not be continued;

33.3. if the project application conforms to the criteria referred to in Paragraphs 12, 13, 14, 17, 19, 20, 21 and 22 of Annex 5 to this Regulation, the project application shall be evaluated in accordance with the quality criteria referred to in Annex 5 to this Regulation. If the project application receives less than 37 points in the evaluation on the conformity to the quality criteria, the evaluation of the project application according to other criteria for evaluation of project applications shall not be continued;

33.4. If the project application has received 37 or more points in the evaluation on the conformity to the quality criteria, the project application shall be evaluated in accordance with the criteria for granting financing referred to in Annex 5 to this Regulation. If the project application does not conform to even one of the criteria for granting financing, the evaluation of the project application according to other criteria for evaluation of project applications shall not be continued;

33.5. if the project application conforms to the criteria for granting financing referred to in Annex 5 to this Regulation, the project application shall be evaluated in accordance with the criteria referred to in Paragraphs 11, 15, 16, 18, 23, 28, 29, 30, 31, 32, 34 and 35 of Annex 5 to this Regulation.

34. A decision regarding approval of the project application shall be taken if the project application has received at least 37 points in the evaluation on the conformity of the project to the quality criteria and criteria of horizontal priorities and has been evaluated with a "Yes" on conformity to the criteria of the conformity of the project and the conformity of the project applicant, to the administrative criteria and to the criteria for granting financing.

35. If several project applications receive the same number of points, the preference shall be given to the project application with a higher indicator of the evaluation of cost return. If the evaluation is the same also after evaluation of project applications according to the indicator of the evaluation of cost return, the preference shall be given to the project application with the lowest intensity of the financing requested from the European Regional Development Fund and the object restored and conserved as a result of the implementation of the project is a structure of public significance, where cultural events and events of national significance may be organised in accordance with the regulatory enactments regarding the preservation and protection of cultural monuments.

36. A decision on approval of the project application may include the following conditions to be met by the project applicant for it to be able to enter into a contract regarding project implementation:

36.1. to submit an additional explanation;

36.2. to ensure the conformity of the project application with the administrative criteria referred to in Paragraphs 28, 29, 30, 31, 32, 34 and 35 of Annex 5 to this Regulation;

36.3. to ensure the conformity of the project application with the conformity criteria referred to in Paragraphs 11, 15, 16, 18 and 23 of Annex 5 to this Regulation;

36.4. to specify more precisely the costs of the project application, including the estimate of construction costs of the project application or the financing sources of the project, the financing plan of the project or the summary of the budget of the project if arithmetical calculation errors have been made;

36.5. to specify more precisely the effective operational plan of the object;

36.6. to specify more precisely the time for commencement of implementation of the project and time schedule or planned costs according to years.

37. A decision regarding rejection of the project application shall be taken if the project application does not conform to the following criteria for evaluation of project applications:

37.1. the administrative criteria referred to in Paragraphs 24, 25, 26, 27 and 33 of Annex 5 to this Regulation;

37.2. the conformity criteria referred to in Paragraphs 12, 13, 14, 17, 19, 20, 21 and 22 of Annex 5 to this Regulation;

37.3. the criteria for granting financing referred to in Paragraphs 36 and 37 of Annex 5 to this Regulation.

38. The Responsible Institution shall notify the project applicant of the decision on approval, conditional approval or rejection of the project application within five working days after taking of the decision.

39. If a decision on conditional approval of the project application has been taken, the project applicant shall ensure the fulfilment of the conditions included in the decision within the period of time specified by the Responsible Institution, which does not exceed one month from the day of receipt of the relevant decision.

40. The commission shall evaluate the information submitted by the project applicant, and the Responsible Institution shall prepare an opinion on the conformity thereof with the conditions included in the decision on conditional approval of the project application.

41. If the project applicant does not fulfil the conditions included in the decision on conditional approval of the project application or does not fulfil them within the specified period of time, the project application shall be deemed rejected.

42. The Responsible Institution shall send the opinion on the fulfilment of the conditions included in the decision to the project applicant within two working days after signing of the opinion.

VI. Conditions for Implementation of the Project

43. The location of the project implementation shall be the territory of the Republic of Latvia.

44. [15 June 2010]

45. The final beneficiary shall implement the activities referred to in the project application within four years after entering into a contract with the Co-operation Institution regarding implementation of the project, but not later than until 30 June 2015.

46. If a procurement competition has not been announced before the entering into a contract with the Co-operation Institution regarding implementation of the project, the final beneficiary shall announce the first procurement competition not later than within three months after approval of the project application. If the first procurement competition is not announced in the referred to period of time, the Co-operation Institution shall notify the Responsible Institution thereof. The Responsible Institution may decide on termination of the contract.

47. An advance payment in the amount of not more than 35 per cent from the total amount of financing of the European Regional Development Fund granted to the project shall be available to the final beneficiary.

48. The final beneficiary shall request an advance payment if the following conditions have been met:

48.1. the final beneficiary has entered into a contract with the Co-operation Institution regarding implementation of the project;

48.2. the final beneficiary has submitted a procurement plan to the Co-operation Institution;

48.3. the current account indicated in the contract regarding implementation of the project has been opened; and

48.4. the final beneficiary has submitted a bank guarantee regarding the amount of the advance payment to the Co-operation Institution.

[15 June 2010]

49. The final beneficiary shall ensure that the current information regarding the process of project implementation is inserted on the Internet homepage (if any) of the final beneficiary at least once every three months.

Prime Minister V. Dombrovskis

Minister for Culture I. Dālderis

Translation © 2011 Valsts valodas centrs (State Language Centre)