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Better access to advance payments for the beneficiaries of the polish operational programme innovative economy 2007-2013

From EPSA - European Public Sector Award

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In Poland, the European Funds for the period 2007-2013 have been implemented within the framework of the National Cohesion Strategy (NCS). The main objective of NCS is to create conditions for the improvement of competitiveness of the economy based on knowledge and entrepreneurship, ensuring the increase of employment and the higher level of social, economic cohesion. The NCS is implemented via Operational Programmes managed by the Ministry of Regional Development (the so-called Managing Authority). One of the responsibilities of The Ministry of Regional Development is to set some common rules for the process of co-financing the expenses within the projects. These questions have been covered by the ministerial Regulation issued in September 2007. Several rules of the above Regulation concerned paying advances to the Beneficiaries of a project on the account of their future expenses. The possibility for the Beneficiaries to be paid in advance had existed, to some extent, since the beginning of implementation of Programmes, nevertheless, the application of the advanced payments was very limited because of the relatively high cost of collaterals (e.g. bank guarantees, etc).

The attempt to facilitate and broaden the usage of advance payments was implemented in the beginning of 2009. However, the Polish Ministry of Economy, acting as the Intermediate Body in the process of implementation of the Axes III-VI of the Operational Programme Innovative Economy, had observed that, until the middle of 2009, the interest of Beneficiaries to take advantage of this solution had still been minor. The entrepreneurs couldn’t afford securing advance payments. This became a barrier for implementation of their projects particularly during the period of the economic crisis. They had to face the unfavourable trends of financial markets, poor economic performance of certain business branches and depreciation of Polish złoty, influencing raise of cost of investments. The Ministry of Economy observed such difficulties particularly with regards to those projects implemented within the framework of the Operational Programme Innovative Economy that required constant access to financing.

As a response to the threat for implementation of projects, in the beginning of 2009 the Ministry decided to propose a change to the rules concerning the security coverage of the advance payments. In particular, it proposed to raise the threshold of the amount of advance payment, for which the bill of exchange in blanco provided by the Beneficiary would constitute a collateral (from złoty 4 to 10 million).The proposition of the Ministry of Economy was implemented and the amended Regulation entered into force in July 2009. The amendment allowed more Beneficiaries of the Operational Programme Innovative Economy to be paid in advance. This, in turn translated into an increase of their financial liquidity, which is crucial for the implementation of projects particularly during the period of turndown in the world and Polish economy.

Award info
Award category: smart public service delivery
Award type: submission
Award year: 2011
Project type
Sector: Economic affairs, competition, SME
Type of activity:
Keywords: Advance payments, Polish Operational Programme Innovative Economy
Short English description: The amendment allowed more Beneficiaries of the Operational Programme Innovative Economy to be paid in advance. This, in turn translated into an increase of their financial liquidity, which is crucial for the implementation of projects particularly during the period of turndown in the world and Polish economy.
Further information
Organisation: Ministry of Economy
Other applicants:
Homepage:
Level of government: national level
Size of organisation: >100
Number of people involved: >15
Country: Poland
EU membership: EU member
Language code: en
Start date:
End date:


Better access to advance payments for the beneficiaries of the polish operational programme innovative economy 2007-2013 (52.2285077, 21.0217065)
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