Regional Development Block Grant (2008-2011) funded by the Norwegian and European Economic Area Financial Mechanisms

The sub-objectives of the Block Grant are as follows:

• To strengthen the administrative capacity of Estonian local governments, local government associations and county governments, mainly for developing public services and creating innovative/better development solutions for regions;
• To promote cooperation between local governments, county governments, local government associations and non-profit associations on the local and regional level;
• To improve the economic environment and sustainability of regions.

Volume and implementation of the Block Grant

In the framework of the Block Grant, a total of ca 53.2 million EEK (ca 3.4 million EUR) is allocated for grants. The Block Grant is implemented on the entire territory of Estonia. The Estonian Ministry of the Interior is responsible for the entire coordination of the Block Grant. Enterprise Estonia is responsible for the implementation of the Block Grant.

Eligible applicants are as follows:

• Local government units;
• Local government associations;
• County governments;
• Non-profit associations and foundations.

Eligible activities:

Within the framework of the Block Grant, activities are supported in two priority fields.

Priority I – “Promotion of local and regional cooperation and strengthening of the administrative capacity of public sector organisations”

1) Preparatory activities (surveys, analyses, forecasts, expert opinions, seminars, etc) with the following objectives:

• development of the common public services of at least two local government units;
• contractual transfer of public services to non-profit associations via cooperation between at least two local government units;
• optimisation of territorial administrative division;

2) Implementation of pilot projects for the better provision (economically more efficient, sustainable) of common public services via cooperation between at least two local government units, except the activities related to housing, water and sewerage supply, maintenance of roads and city streets, waste management and public territory maintenance;

3) Compilation of common development plans, strategies, comprehensive plans (master plans) and thematic plans of at least two local government units;

4) Activities aimed at the development of the administrative capacity of local governments, local government associations and county governments, and the increasing of development-related competence, mainly via partnerships with local and regional authorities and associations thereof from other EEA and EFTA member states (especially the donor states of the Block Grant, i.e. Norway, Iceland and Liechtenstein);

5) Enhancement of the negotiation and lobby skills of local government associations, their participation in policy-making processes, and development their consultation services offered to their members (including pilot projects).

Priority II – “Improvement of the economic and development environment”

1) Central activity of county governments or local government associations: establishment of public wireless internet areas, improvement of quality and safeness of public internet connections, provision of public internet point computers with ID-card readers.

2) Activities for passing on and applying local traditional know-how, e.g. establishment and furnishing of local workshops;

3) Elaboration of alternative activities for stimulating local employment, also for decreasing long-term unemployment;

4) Development of business contacts and information networks between Estonia and EEA/EFTA member states aimed at reviving local economic activity.

Duration of projects:

Maximum duration of projects is 24 months, but no longer than 28.02.2011.

Grant amount per project:

The minimum size of grants per project is EEK 100 000 (EUR 6 391,16)

The maximum size of grants per project is EEK 3 100 000 (EUR 198 126,11)

Rates of grant assistance and self-financing:

The grant rate shall not exceed 85% of the eligible expenditure of the project, if at least 15% of eligible expenditures are funded from the budget of state or local government units.

The grant rate shall not exceed 90% of the eligible expenditure of the project if grant recipients are non-profit associations or foundations that are operating in the public interest and are not under the control of the state or a local government.

For activities falling under the priority II activity number 4 the grant rate shall not exceed 60% of eligible expenditure of the project and self-financing is at least 40%.

In other cases, the grant rate shall not exceed 60% of eligible expenditure and self-financing is at least 40%.

In-kind contributions (as a part of self-financing) can amount to 5% of the entire eligible expenditure of the project and mean the provision of premises, equipment, materials, scientific work, professional activity or unpaid voluntary work.

Grant disbursements:

Projects applications may qualify for an advance payment up to 40 percent of the total grant which shall be paid at the time of the signing of the implementation contract. 40 percent of the grant shall be paid according to incurred costs. At least 20 percent of the grant shall be withheld until the completion report of the project has been approved.

Application for grants:

There shall be two open calls for applications for grants. The deadline for submission of applications in the first open call is the 30 of June 2008. The deadline for submission of applications in the second open call falls between December 2008 and January 2009, the exact date will be specified later.

The amount allocated for grants in the first open call is ca 26.6 millions EEK (ca 1.7 millions EUR). Applications should be submitted by the 30 of June 2008 at 5 PM local time to Enterprise Estonia address: Liivalaia 13/15, 10118 Tallinn, or by e-mail info(at)eas.ee.

Between 15 February 2008 and 30 June 2008, Enterprise Estonia will disseminate information about the Block Grant and advise potential applicants. More detailed information on the Block Grant (applying conditions and documents) will be available at webpage www.eas.ee/noremp. Please contact the Enterprise Estonia development consultant Anna Julegina (e-mail: anna.julegina(at)eas.ee) for further information concerning the Block Grant.

Information days:

The first information seminar of the Block Grant took place on the 15th of February at the conference centre of Hotel Olympia in Tallinn, where the Block Grant conditions and procedures were introduced.

In March and April 2008, information days will be held in Tartu, Pärnu and Jõhvi.