PUBLIC AGENCY OF THE REPUBLIC OF SLOVENIA FOR ENTREPRENEURSHIP AND FOREIGN INVESTMENTS

Transcription

1 PUBLIC AGENCY OF THE REPUBLIC OF SLOVENIA FOR ENTREPRENEURSHIP AND FOREIGN INVESTMENTS PUBLIC TENDER FOR APPLICATIONS UNDER THE CO-FINANCING GRANT SCHEME FOR THE PROMOTION OF FOREIGN DIRECT INVESTMENT IN THE REPUBLIC OF SLOVENIA FOR 2010 AND 2011 no. JR 4/ TENDER DOCUMENTATION I. SUBJECT-MATTER OF THE TENDER... 2 I.1 Subject-matter of the Public Tender... 2 I.2 Purpose of the Public Tender... 4 I.3 Objective of the Public Tender... 4 I.4 Applicants... 4 I.5 Eligible recipients of co-financing... 4 I.6 Eligible costs/expenses... 6 I.7 Formal responsiveness of applications... 7 I.8 Amendment to applications... 7 I.9 Fulfilment of the terms and conditions for the award of co-financing... 8 I.10 Criteria for the evaluation of applications... 9 I.11 Amount of co-financing... 9 I.12 Urgency condition I.13 Period for drawing down the awarded funds I.14 Submission of applications and the time frame I.15 Opening of applications I.16 Notification of award I.17 Tender Documentation I.18 Additional information II. DETAILED DESCRIPTION OF THE AWARD CRITERIA AND THE METHOD FOR AWARDING CO-FINANCING III. INSTRUCTIONS TO APPLICANTS FOR THE PREPARATION OF APPLICATIONS IV. FORMS and DECLARATIONS IV.1 Declaration on the acceptance with the terms and conditions of the public tender IV.2 IV.3 Application form for the foreign investor Information referring to the type of the investment project IV.4 General information on the foreign investor IV.5 IV.6 Brief corporate history of the foreign investor Description of the investment project (not subject to amendment!) IV.7 Declaration the recipient of the co-financing on compliance with terms and conditions under the public tender IV.8 Declaration of the recipient of the co-financing on the award of state aid IV.9 Information on the recipient of the co-financing incorporated/ registered in the Republic of Slovenia IV.10 Brief corporate history of the recipient of the co-financing IV.11 Declaration on commitment to set up the research and development activity as a separate organisational unit IV.12 Mandatory documents to be submitted by the foreign investor IV.13 Contract agreement - draft Public Agency for Entrepreneurship and Foreign Investments 1 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

2 I. SUBJECT-MATTER OF THE TENDER Pursuant to the Public Finance Act (Official Gazette of the Republic of Slovenia, Nos. 79/1999, 124/2000, 79/2001, 30/2002, 56/2002-ZJU, 127/2006-ZJZP, 14/2007-ZSPDPO, 109/2008, 49/2009), Promotion of Foreign Direct Investment and Internationalisation of Enterprises Act (Official Gazette of the Republic of Slovenia, No. 107/06 - UPB1), the Budget of the Republic of Slovenia for 2010 (Official Gazette of the Republic of Slovenia, No. 99/2009), the Budget of the Republic of Slovenia for 2011 (Official Gazette of the Republic of Slovenia, No. 99/2009), Republic of Slovenia Budget 2010 and 2011 Implementation Act (Official Gazette of the Republic of Slovenia, No. 99/2009), Rules on procedures for implementing the budget of the Republic of Slovenia (Official Gazette of the Republic of Slovenia, Nos. 50/2007, 61/2008, 99/2009), Articles 16 and 30 of the Public Administration Act (Official Gazette of the Republic of Slovenia, Nos. ZDU-1-UPB3, 24/2005, 48/2009), the Decree on Financial Incentives for Foreign Direct Investments (Official Gazette of the Republic of Slovenia, Nos. 11/07, 19/2009), the Programme of Work of the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments for 2010 and 2011 and the Financial Plan of the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign investments for 2010 and 2011 (Decision adopted by the Government of the Republic of Slovenia, No /2010/3 as of 21 January 2010), the Contract Agreement No. JAPTI 2010/ MV on the Funding for the Public Tender for Applications under the co-financing grant scheme for the promotion of foreign direct investment in the Republic of Slovenia in 2010 and 2011 as of 2 February 2010 and the State Aid Schemes (Schemes Number: BE , BE /1, BE , BE /1), the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments, Verovškova 60, 1000 Ljubljana, hereby publishes PUBLIC TENDER FOR APPLICATIONS UNDER THE CO-FINANCING GRANT SCHEME FOR THE PROMOTION OF FOREIGN DIRECT INVESTMENT IN 2010 AND 2011 I.1 SUBJECT-MATTER OF THE PUBLIC TENDER The subject-matter of the Public Tender is the award of co-financing for initial (greenfield) investments to be executed by applicants foreign persons governed by private law non-residents (hereinafter referred to as the foreign investor) in the territory of the Republic of Slovenia. An initial (greenfield) investment shall be deemed to be the investment in tangible assets (property, plant and equipment) and/or intangible assets when a new enterprise is established, when expanding an already existing enterprise, when diversifying the range of products manufactured by the enterprise by adding new products or when making significant changes to the manufacturing process in an existing enterprise that already operates in the Republic of Slovenia in manufacturing sector, in the service sector whose services are sold in the international market or in the research and development (R & D) activity. Neither the increase in the existing output of products already produced by the recipient /beneficiary of co-financing (hereinafter referred to as the recipient of co-financing, i.e. the enterprise in charge of the investment project) or by their connected legal persons in the Republic of Slovenia nor the increase in the volume of the services already provided by the beneficiary/recipient of the cofinancing or his connected legal persons in the Republic of Slovenia, shall be treated as an initial (greenfield) investment. Public Agency for Entrepreneurship and Foreign Investments 2 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

3 No activities listed below shall be deemed eligible for the co-financing under the Public Tender for Applications: - primary production (agriculture) on the list in Appendix I to the Treaty Establishing the European Community and for the production and distribution of products, which imitate or replace milk and milk products, and products falling under CN codes 4502, 4503 and 4504 (cork products); - processing and putting on market of agricultural products when the amount of the cofinancing is determined by taking into account the price, i.e. the quantity of such products purchased from primary processors or placed on the market by the respective company, or when the co-financing is conditional on whether it is partly or completely passed on to primary processors; - fishing and fisheries; - coal-mining; - steelworks; - transport; - shipbuilding; - man-made fibres industry; - manufacturing of arms and ammunition. The co-financing shall not be allocated to investment projects that fall within the scope of the following economic activities: trade, tourism, construction, education and health and social security. Furthermore, the co-financing shall not be allocated to the business activities associated with exports directly connected with the exported quantities, with setting up and operating a distribution network or with other operating costs in relation to the exporting activity. Moreover, the co-financing shall not be awarded in the cases where the use of domestic goods would be given advantage over the use of imported goods. The co-financing shall not be awarded to an enterprise in the procedure of paying back any amount paid incorrectly of State aid pursuant to the Commission Decision (EC), declaring State aid granted unlawful and incompatible with the common market of the Community. The co-financing shall not be awarded for investments proposing eligible costs in excess of 50 million euros (a large investment project). Public Agency for Entrepreneurship and Foreign Investments 3 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

4 I.2 PURPOSE OF THE PUBLIC TENDER The purpose of the Public Tender is to attract foreign investors to invest within the territory of the Republic of Slovenia and make investments that meet the following requirements: - in accordance with the supply on the labour market in the Republic of Slovenia provide for the creation of new employment, and in particular in the industries with higher value added; - contribute towards the transfer of knowledge and technology and to the co-operation of scientific and/or research enterprises and establishments within the territory of the Republic of Slovenia with foreign investors; - contribute towards more balanced regional development; - contribute towards the increase in synergic effects of linking foreign investors with the Slovenian companies, mainly in the field of supplies for foreign investors and the exchange of knowledge and technology. I.3 OBJECTIVE OF THE PUBLIC TENDER The objective of the Public Tender is the creation of 500 new posts - jobs (on the annual level) within the period of three years following the completion of the respective investment project. I.4 APPLICANTS The invitation to submit applications under this Public Tender is open to foreign investors, subject to the condition that the foreign investors or their foreign associates have track record in taking up and the pursuit of the business of the recipient of co-financing, which must be demonstrated in the application submitted in response to the Public Tender for Applications for the award of the cofinancing. Relationships between enterprises are assessed by applying the provisions laid down in the Companies Act ZGD-1 (Official Gazette of the Republic of Slovenia, No. 65/2009 UPB3). I.5 ELIGIBLE RECIPIENTS OF CO-FINANCING Only the enterprises incorporated in the Republic of Slovenia not later than on the application submission day in which the foreign investors that file an application have directly at least a 10 per cent interest (equity holding), shall be eligible recipients of co-financing. The enterprises deemed eligible to compete for the award of co-financing as potential recipients are those: - with investment projects in the manufacturing sector that within the period of three years following the completion of the respective investment project will open at least 25 new posts (jobs). The minimum value of the investment project eligible for the co-financing is 1 (one) million euros; - with investment projects in the sector whose services are internationally traded that envisage the opening of a minimum of 10 new posts (jobs) within the period of three years following the completion of the investment project. The minimum value of the investment project eligible for the co-financing is 0.5 million euros. The sector whose services are internationally traded mainly refers to the following: Customer Contact Centres, Public Agency for Entrepreneurship and Foreign Investments 4 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

5 Shared Services Centres, Logistics and Distribution, and Regional Headquarters; - with investment projects in the research and development activity pencilling in the opening of at least 5 new posts within the period of three years following the completion of the investment project. The minimum value of the investment project eligible for the co-financing is 0.5 million euros. An activity classified as research and development is the activity carried out by an enterprise/company or a self-contain/spun-off organisational unit whose core activity is research and experimental development in the area of technology. A portion of the research project must fall within the category of base research subjects, industrial research or experimental development. The companies whose core activity is not research and development must run the research and development unit as a separate/spun-off organisational unit. Research and development tasks must also be stated in the job classification, as far as it is legally required, as well as in the internal enactments of such undertakings; The minimum value of investment is deemed to include only the investment in fixed tangible assets (property, plant and equipment-ppe) (land, buildings and equipment, service connections and infrastructure facilities for the plot/site, the purchase, construction and modernisation of buildings, the purchase of new machines and equipment) and/or investments in intangible assets (the purchase of patents, licences, know-how or technical knowledge not protected by intellectual or industry property rights). In the case of small and medium-sized enterprises (SMEs), the purchase of second-hand machinery and equipment shall also be deemed to constitute investments in property, plant and equipment (PPE). The recipient of co-financing must provide funding in the amount of at least 25 per cent of eligible costs of material/tangible and intangible/immaterial investments from own sources of funds or by arranging financing from external creditors (leverage) and in the form that has no connection with public funding. The creation of new employment shall mean the net increase in the number of employees, directly employed in an enterprise in comparison with the average number of employees for the 12 monthperiod before the signing of the contract agreement to award co-financing, taking into account pro rata full- time and part-time employees. Consequently, each post (job) lost during the 12- month period shall be deducted from the total number of posts (jobs) created during the same period. The new employment created shall be opened no later than within three years from the date of the investment s completion and maintained in region for a minimum of five years, in the case of small and medium-sized enterprises, the employment created shall be maintained during a minimum period of three years following the day on which a post (job) was filled for the first time. The date of the completion of the investment project shall be the completion of the works under the investment project that must be completed within the period of three years of the signing of the contract agreement. No co-financing shall be made available if: - it is the investment project for the same purpose, which contains elements of State aid, already co-financed from other public funds (from the government budget, the local budget, the EU funding and other sources of funding), i.e. if the aggregate amount of the funding received from the aforementioned sources exceeds the maximum allowable amount of co-financing determined under the rules governing the area of State aid; - the foreign investor or the beneficiary/recipient of the co-financing is insolvent; - the foreign investor or the beneficiary/recipient of the co-financing does not have the capital adequacy ratio in accordance with paragraph 3 of Article 11 of the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (Official Gazette of Public Agency for Entrepreneurship and Foreign Investments 5 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

6 the Republic of Slovenia, No 126/2007); an enterprise is deemed to have adequate capital if its long-term sources of financing are sufficient with regard to the scale and nature of its business and the risks it is exposed to in the course of pursuing its business; - bankruptcy proceedings, compulsory composition proceedings or liquidation proceedings/winding up have been initiated against the foreign investor or against the /recipient of the co-financing by the court s final judgement; - is the recipient of the co-financing or the foreign investor is on the list of corporate entities as stipulated in the decision to publish such a list of entities deemed ineligible on the basis of the provisions laid down in the Prevention of Corruption Act as contractors, i.e. providers of services under contracts with contracting authorities referred to in the first, second and third paragraph of Article 28 of the Prevention of Corruption Act (Official Gazette of the Republic of Slovenia No. 43/2007, 68/207, 29/2008, 55/2008 and 91/2008); - the foreign investor or recipient of co-financing has outstanding obligations to the Republic of Slovenia; - at the time of the submission of the application for the award of the co-financing, the recipient of the co-financing is in difficulties in accordance with the Community guidelines on State aid for rescuing and restructuring firms in difficulty (UL C 244 as of 1 October 2004, page 2) and the Act Governing the Rescue and Restructuring Aid for Companies in Difficulty (ZPRPGDT-UPB2) (Official Gazette of the Republic of Slovenia, No. 44/2007). Small and medium-sized enterprises, which have been in operation for less than three years after registration, shall not be deemed to constitute companies in difficulty within the meaning of the Community guidelines on State aid for rescuing and restructuring firms in difficulties, save in the case that they meet the criteria for instigating the bankruptcy proceedings in accordance with the regulations governing financial operations of enterprises. The cumulation rule applying to State aids means that every State aid received is cumulated with other State aid. Consequently, the purpose of the cumulation rule is to ensure that the intensity of State aid is not higher than the maximum aid allowed. If the recipient of the co-financing has already received funding from the budget of the central government, the local government or from the EU budget, i.e. if the aggregate amount of the funding received under State aid exceeds the ceiling State aid measure determined by the rules governing the area of State aid measures, or such funding has been approved, the contract agreement shall be terminated and the Agency shall request shall request the refund of all wrongly received sums including statutory penalty interest accrued to the day on which the payment is actually made. I.6 ELIGIBLE COSTS/EXPENSES Costs/expenses eligible for co-financing are: - costs/expenses of material/tangible investments (investments in property, plant and equipment-fixed assets) (buildings and equipment, service connections and infrastructure facilities for the site/location, the purchase, construction and modernisation of buildings, the purchase of new machinery and equipment, i.e. in the case of SMEs also the purchase of second-hand machinery and equipment)); - costs/expenses of non-material/intangible investments (investments in intangible assets (purchase of patents, know-how or technical knowledge not protected by intellectual or industry property rights); in case of investments in large enterprises, cost support cannot exceed 50 per cent of eligible costs/expenses of the entire investment); - in the case of investments in small and medium-sized enterprises (SMEs), costs/expenses eligible for co-financing are also costs/expenses of feasibility studies and consultancy services related to the investment, in the amount of 50 per cent of costs/expenses actually incurred. Only those costs/expenses incurred by engaging external consultants shall be Public Agency for Entrepreneurship and Foreign Investments 6 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

7 deemed consultant services eligible for co-financing. In the case that the amount of the cofinancing for the consultant services rendered to small and medium-sized enterprises from all sources exceeds 2 (two) million euros per enterprise and per investment, a prior individual notification of co-financing is required; - costs/expenses of creating new employments arising directly from the investment project, calculated for the period of two years and being the amounts actually disbursed by the recipient of the co-financing in relation to the respective employment ( i.e. costs/expenses of gross salaries before taxes and compulsory contributions for social security (contributed by the employer)). Value-added tax (VAT) is not deemed an eligible cost/expense. When calculating the maximum State aid ceiling, the higher amount of the eligible costs/expenses shall be taken into account: either the aggregate amount of eligible costs/expenses of tangible and intangible investments (and in the case of SMEs also the costs/expenses of feasibility studies in the amount of 50 per cent of the costs/expenses actually incurred) or the amount of costs/expenses to creating new employment. I.7 FORMAL RESPONSIVENESS OF APPLICATIONS An application shall be deemed formally responsive, if it comprises, in accordance with the instructions laid down in the Tender Documentation, all forms and appendices duly filled out and accompanied by supporting documents. I.8 AMENDMENT TO APPLICATIONS In the case that an application is found to be formally incomplete, the evaluation committee will invite the applicant within 8 days from opening applications to amend it by the set deadline in accordance with the Rules on the procedures of implementing the budget of the Republic of Slovenia, Nos. 50/2007, 61/2008, 99/2009-ZIPRS1011) within 8 days after receiving the invitation to amend the application. Incomplete applications not amended by the applicant within 8 days, will be rejected as non-responsive by adopting a decision to that effect. The contracting authority that has published the Public Tender may at any time during the period of from the opening of tenders to the selection of the most successful applicant summon the applicant to clarify the information contained in the application. The applicant invited to clarify his application must do so within 5 days of the receipt of the invitation. In the event that the applicant should fail to provide a clarification, the contracting authority under the Public Tender will decide as to the relevance of the information in question based on the available documentation. The contracting authority of the Public Tender may at any time during the period from the opening of applications to the selection of a successful applicant invite the applicant to submit proof attesting to the authenticity and correctness of the statements made in the application in relation to which no official records are kept. The applicant invited to submit such proof must do so within 5 days of the receipt of the invitation. In the case that the applicant should fail to submit the requested documents by the set date, the contracting authority of the Public Tender will not take into account those statements made in the application. The content of the project description shall not be the subject-matter of amendments to applications. Public Agency for Entrepreneurship and Foreign Investments 7 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

8 I.9 FULFILMENT OF THE TERMS AND CONDITIONS FOR THE AWARD OF CO-FINANCING For the purpose of evaluation of the applications received, the applicants must fulfil the following terms and conditions: - the applicant is a foreign person governed by private law; - the recipient of the co-financing is an enterprise/company incorporated/registered in the Republic of Slovenia as of the day on which the application is submitted; - the applicant has directly at least a 10 per cent interest (equity holding) in the recipient of the co-financing ; - the urgency criterion is met; - the applicant must have experience in the business taken up and pursed by the recipient of co-financing; - the investment is made in an activity eligible for co-financing to be awarded under the Public Tender: it is investment in the manufacturing sector or in the internationally traded services or in the research and development activity; - the value of the investment made in the manufacturing sector (in tangible assets and/ or in intangible assets) must be 1 million euros as a minimum and it must create at least 25 new net posts (jobs); - the value of the investment made in internationally traded services (in tangible assets and/ or in intangible assets) must be 0.5 million euros as a minimum and it must create at least 10 new net posts (jobs); - the value of the investment in the research and development activity (in tangible assets and/ or in intangible assets) must be 0.5 million euros as a minimum and it must create at least 5 new net posts (jobs); - the recipient of the co-financing must provide funding in the amount of at least 25 per cent of eligible costs of tangible and intangible investments from own sources of funds or by arranging financing from external creditors (leverage) and in the form that has no connection with public funds. - initial (greefield) investment (as initial (greefield) investment shall be deemed to be the investment in tangible assets (property, plant and equipment) and/or intangible assets when a new company is established, when expanding existing operations, when diversifying the operating company's production by adding new additional products or when significant modifications to the manufacturing process of the company that already operates in the Republic of Slovenia are made in the manufacturing industry, in the service sector whose services are sold in the international market or in the research and development activity). In the case that the application does not contain the data/information to shown that a particular condition is complied with, it shall be deemed that the application does not fulfil that particular condition and it will be rejected by passing a decision to that effect. Public Agency for Entrepreneurship and Foreign Investments 8 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

9 I.10 CRITERIA FOR THE EVALUATION OF APPLICATIONS All formally responsive applications that meet the mandatory terms and conditions will be evaluated by the evaluation committee appointed by the Director of the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign investments by applying the following award criteria: Criterion 1. The position of the foreign investor in the market The equity holding of the foreign investor in the enterprise incorporated in Slovenia The share of local suppliers and the impact of the proposed investment on the productivity of other local enterprises that operate in the same industry 4. The sustainable nature of the proposed investment project 5 5. The impact of the investment on research and development activity The impact of the proposed investment on human capital Environmental impact assessment where the investment is made in the manufacturing sector / the extent of the international distribution of the internationally traded service where the investment is to be made in the service sector and the number markets where the service will be offered The impact of the investment on development in the case that the region is classified as underdeveloped in economic terms 9. The value of the investment project 5 TOTAL 100 Number of points JAPTI will co-finance those enterprises with investment projects whose applications will score the number of points considered as the threshold for co-financing, i.e. at least 60 points. A detailed description of the award criteria and the model for awarding (allocating) co-financing is on page 14 of the Tender documentation. I.11 AMOUNT OF CO-FINANCING The aggregate amount of co-financing under the cost-sharing grant scheme for 2010 and 2011 is 14,496,470,00 euros and specifically in 2010 allocated funds total 6,496, euros and in 2011 this amount is 8,000, euros. The funding has been allocated under the budgetary item 5343 of the Ministry of the Republic of Slovenia for the Economy. The amount of co-financing will be determined on the basis of the award criteria, the number of newly created employment (jobs), the value of the investment project (based on the amount of eligible costs/expenses for investments in tangible and intangible assets) and within the framework of available funding allocated to the co-financing under the Public Tender. The amount of the co-financing awarded must not exceed 30 per cent of the amount of eligible costs/expenses incurred under the investment or costs/expenses incurred associated with creating new Public Agency for Entrepreneurship and Foreign Investments 9 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

10 employment within the framework of investments in a large enterprise. In the case of medium-sized enterprises, the amount of the co-financing awarded must not exceed 40 per cent, while in the case of small enterprises, the ceiling is 50 per cent of eligible costs/expenses under a single project. For the purpose of determining the size of the recipient of the co-financing the criteria specified in Appendix I of the Commission Regulation (EC) No. 800/2008 as of 6 August 2008 declaring certain categories of aid compatible with the common market in application of articles 87 and 88 of the Treaty (General Block Exemption Regulation) (OJ L No. 800/2008 as of , page 3). As regards awarding co-financing in excess of 2 (two) million euros shall be subject to a prior authorisation of the Government of the Republic of Slovenia. In the event that the amount of the cofinancing for the consultant services rendered to small and medium-sized enterprises from all sources exceed 2 (two) million euros per company and per project, a prior individual notification of the cofinancing is required. When a company shall be awarded aid in the form of venture capital, and in the period of the first three years following the receipt of the venture capital it submits its application for the co-financing under the Public Tender, the maximum allowable aid intensity rate shall be 24 per cent of eligible costs incurred under the investment project or of the costs incurred under new employment in relation to the investment project for large enterprises. In the case of medium-sized enterprises, the amount of the granted co-financing shall not exceed 32 per cent, while in the case of small enterprises this amount can be 40 per cent of eligible costs/expenses incurred under the specified project. As regards consultant services rendered to small and medium-sized enterprises, the maximum allowable aid intensity rate can be up to 40 per cent of the eligible consultancy costs. In the case that the difference between the highest allowable rates of aid intensity (30, 40 or 50 per cent), and the highest intensities in the case of venture capital ( 24, 32 or 40 per cent), should exceed the amount of the invested venture capital, the maximum allowable value of aid allocated under this Public Tender shall be decreased only by the amount of the invested venture capital. Should it happen that having completed the scoring phase the aggregate value of the expected cofinancing of the eligible costs/expenses incurred under the investment projects that have reached the threshold for the co-financing under the Public Tender exceeds the amount allocated to the cofinancing scheme, funding shall be distributed on the basis of the score, i.e. achieved points so that the investment projects with a higher score (more awarded points) come ahead of those with lower scores for the allocation of funding. In the case that several proposed investment projects end up by having the same score, the project that envisages a higher number of newly created jobs shall be given precedence; in so far as those investment projects comply with the same criterion, the number of points awarded to the applicant, i.e. prospective beneficiary/recipient during the project evaluation phase under Criterion No. 5 - Research and development effects of the investment project-shall be given precedence. In the case that the value of the awarded co-financing under the project exceeds the amount available for co-financing, the Agency will not sign the contract agreement with the applicant. Public Agency for Entrepreneurship and Foreign Investments 10 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

11 I.12 URGENCY CONDITION In the case that the co-financing is awarded to small and medium-sized enterprises, the applicant must file the application for the award of co-financing before enterprises commences the investment project. In the case that co-financing is awarded to large enterprises, the applicant must comply with the condition laid down in the first paragraph hereof, and at the same time also comply with one or more of the following criteria: A significant extension of the size of the project companies or activity as a result of the co-financing; A significant extension of the scale of the project or activity as a result of the co-financing; A significant increase of the aggregate amount disbursed by the beneficiary/recipient for the investment project or activity as a result of contribution, i.e. aid; A significant increase in the speed at which the investment project or activity in question can be completed; In the case that no co-financing is made available, the investment project as such could not be carried out in the designated region as proposed. I.13 PERIOD FOR DRAWING DOWN THE AWARDED FUNDS The costs/expenses deemed eligible for co-financing are the costs/expenses incurred during the period between the date of the signing of the contract on co-financing and the date on which the request for co-financing is submitted, namely not later than on 20 October 2010 for the contracts concluded in 2010 and not later than on 20 October 2011 for the contracts concluded in 2011 and the costs/expenses have already been paid prior to the submission of the request. The recipient of the co-financing can include in the request for co-financing also the eligible costs/expenses to be incurred during the period of three years from the date of signing of the contract on cofinancing, subject to the submission of a bank guarantee issued for that amount with which an investment-grade bank guarantees that the funding will be used for the specified purpose. A sample security form (a bank guarantee) is Appendix 5 on page 63 and it is the integral part of the Tender Documentation. I.14 SUBMISSION OF APPLICATIONS AND THE TIME FRAME The Public Tender will remain in force until 09 September 2011, i.e. until the budgetary funds allocated to co-financing of FDI projects have not been fully drawn down. Applications considered to be complete (responsive) in accordance with these instructions specified in the Tender Documentation must be delivered to the following address: Javna agencija Republike Slovenije za podjetništvo in tuje investicije (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments), Verovškova 60, SI-1000 Ljubljana in a sealed envelope marked with»ne odpiraj prijava za razpis - spodbujanje TNI 2010/2011«(Do not open Public Tender FDI incentives) and the full address of the recipient of the co-financing). Applicants have to submit their duly filled out applications in paper form as original documents and the entire text shall be in the Slovenian or in the English language, i.e. certified translation, in accordance with the instructions and the forms included in the Tender Documentation. All information contained in the applications opened by the evaluation committee will be treated as public, with the exception of those clearly designated by the foreign investor designate as being confidential (a business secret). Only particular information i.e. a part of the application may be designated as a business secret. No business secrecy obligation may apply to the entire application. Public Agency for Entrepreneurship and Foreign Investments 11 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

12 I.15 OPENING OF APPLICATIONS Since a high number of applications can be expected, the opening of the applications submitted in response to the Public Tender will not be public. Opening of tenders will take place on the following business day after the closing date for the submission of applications scheduled to start at CET in the premises of the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (the Agency). The applications to be examined shall be those delivered at the main office of the Agency, Verovškova 60, 1000 Ljubljana, irrespective of the way of delivery on the day designated as the closing date for the submission of applications and namely not later than at CET. The closing dates for the delivery of applications in 2010 and 2011: for the first opening of applications: 14 April 2010 at 12:00 (noon) CET, for the second opening of applications: 9 June 2010 at 12:00 (noon) CET, for the third opening of applications: 10 September 2010 at 12:00 (noon) CET, for the fourth opening of applications: 17 November 2010 at 12:00 (noon) CET. for the fifth opening of applications: 9 February 2011 at 12:00 (noon) CET, for the sixth opening of applications: 12 April 2011 at 12:00 (noon) CET, for the seventh opening of applications: 7 June 2011 at 12:00 (noon) CET, for the eight opening of applications: 9 September 2011 at 12:00 (noon) CET. The evaluation committee will not take into account any applications not properly marked (it is not clearly shown that it is an application submitted in response to the invitation for applications under the Public Tender) and such applications will be returned to respective senders unopened. Applications that arrive after the deadline fixed for the submission of applications will be included in the following opening of applications. Applications that arrive after the last deadline for the submission of applications in 2011 shall be rejected as late applications by virtue of the decision passed. I.16 NOTIFICATION OF AWARD The recipients of the co-financing will be notified of the award of co-financing in the decision on the award of co-financing adopted on the basis of the proposal made by the evaluation committee within 60 days of the day of the opening of the received applications I.17 TENDER DOCUMENTATION The Tender Documentation in the Slovenian and in the English language will be available at the main office of the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign investments, Verovškova 60, Ljubljana, every working day between 9.00 and CET or on the websites: and The Tender Documentation may also be forwarded by in reply to request sent by a company to the electronic mail address: matej.skocir@japti.si. Prospective applicants should send a request for sending the Tender Documentation by ordinary mail or by electronic mail 5 days at the latest before the closing date for the submission of applications. Public Agency for Entrepreneurship and Foreign Investments 12 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

13 I.18 ADDITIONAL INFORMATION Additional information with regard to the preparation of applications and clarifications of the tender Documentation will be provided to prospective applicants who send a request in writing to the address of Javna agencija Republike Slovenije za podjetnišvo in tuje investicije (Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments), Verovškova ulica 60, 1000 Ljubljana (marked with: Javni razpis TNI 2010/2011/Public Tender FDI 2010/2011) or to the electronic mail address: matej.skocir@japti.si (subject: javni razpis TNI 2010/2011/Public Tender FDI 2010/2011), provided that any and all such requests are received at the latest 8 days before the respective closing date for the submission of applications. All questions of prospective applicants and the answers given by the contracting authority of the Public Tender will be published at the least 3 days before the respective closing date for the submission of applications on the website: The answers and clarifications provided by the contracting authority of the Public Tender shall be an integral part of the Tender Documentation. Further information can be obtained by phoning the contact person Mr. Matej Skočir at the phone number or by phoning the person responsible for the Public Tender Ms. Simona Novak, M.Sc. at the phone number For further clarifications you may also send your electronic mail to the electronic mail address: matej.skocir@japti.si. Igor Plestenjak, Director Public Agency for Entrepreneurship and Foreign Investments 13 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

14 II. DETAILED DESCRIPTION OF THE AWARD CRITERIA AND THE METHOD FOR AWARDING CO-FINANCING All formally complete (responsive) application assessed as compliant with the terms and conditions for the award of co-financing and in line with the purpose of the Public Tender will be scored by the members of the evaluation committee in accordance with the award criteria listed below: Criterion Number of points 1. The position of the foreign investor in the market The equity holding of the foreign investor in the enterprise incorporated in Slovenia The share of local suppliers and the impact of the proposed investment on the productivity of other local enterprises that operate in the same industry 4. The sustainable nature of the proposed investment project 5 5. The impact of the investment on research and development activity The impact of the proposed investment on human capital Environmental impact assessment where the investment is made in the manufacturing sector / the extent of the international distribution of the internationally traded service where the investment is to be made in the service sector and the number markets where the service will be offered The impact of the investment on development in the case that the region is classified as underdeveloped in economic terms 9. The value of the investment project 5 TOTAL THE POSITION OF THE FOREIGN INVESTOR IN THE MARKET (THE MAXIMUM NUMBER OF POINTS IS 15) The score is commensurate with the international reputation of the foreign investor i.e. his parent company (listing on international stock exchanges, a leading position in the industry ) and by taking into account successfully executed cross-border investments made by the foreign investor i.e. his parent company. The maximum number of points (15) will be awarded to the foreign investor listed on one of the international stock exchanges i.e. is among the leading companies in its industry at the world scale and it has carried out numerous successful cross-border investment projects. Nil (0) points will be awarded to the foreign investor without any successfully executed investment projects and not known in the local market in his line of business, i.e. industry. The foreign investor is a multinational company (the company s shares are listed on the most important stock exchanges such as New York, London, Frankfurt, Tokyo, Zurich, etc.) and his track record includes cross-border investment projects of similar size and nature. The foreign investor is a company with internationally gained reputation and his track record includes cross-border investment projects of similar size and nature. The foreign investor is a company with internationally gained reputation but without cross-border investment projects of similar scope and nature. The foreign investor has gained reputation in his local market where he has already executed with success investment projects of similar scope and 15 points 13 points 10 points 6 points Public Agency for Entrepreneurship and Foreign Investments 14 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

15 nature. The foreign investor has gained reputation in his local market, but without executed significant cross-border investment projects. The foreign investor is a company without reputation in his industry without any significant investment projects. 3 points 0 points 2. THE EQUITY HOLDING OF THE FOREIGN INVESTOR IN THE SLOVENIAN ENTERPRISE (THE MAXIMUM NUMBER OF POINTS IS 5) The equity holding (interest) of the foreign investor in the Slovenian enterprise is: More than 75 up to 100% 5 points More than 50 up to 75% 4 points More than 35 up to 50% 3 points More than 20 up to 35% 1 point Up to 20% 0 points 3. THE SHARE OF LOCAL SUPPLIERS AND THE IMPACT OF THE INVESTMENT ON THE PRODUCTIVITY OF OTHER LOCAL ENTERPRISES THAT OPERATE IN THE SAME INDUSTRY (THE MAXIMUM NUMBER OF POINTS IS 10) The score is composed of two parts: in the first part we assess the share of domestic suppliers after the investment project has been completed (the maximum number of points is 5), in the second part we assess the impact of the investment on productivity of other local enterprises in his line of business, i.e. industry (the maximum number of points is 5). The share of local suppliers (the maximum number of points is 5). The score is commensurate with the envisaged share of domestic suppliers in running the investment and with the beneficial impact of the investment on the productivity of enterprises/companies that operate in the sector. The maximum number of points (5) will be awarded to the investment project where the share of domestic suppliers is above 75%. Nil (0) points will be awarded to the investment project where the share of local suppliers will be less than a 10 per cent share. Local suppliers will have more than a 60 % share. Local suppliers will have more than a 45 % share. Local suppliers will have more than a 30 % share. Local suppliers will have more than a 20 % share. Local suppliers will have more than a 10 % share. Local suppliers will have less than a 10 % share. 5 points 4 points 3 points 2 points 1 point 0 points Public Agency for Entrepreneurship and Foreign Investments 15 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

16 The impact of the investments on productivity of other local enterprises that operate in the same industry (the maximum number of points is 5). The evaluation takes into account mainly the potential horizontal and vertical»spill over«effects and the possibility of technology transfers. The investment will contribute significantly to the productivity increase of other enterprises that operate in the same industry. The investment will not contribute significantly to the productivity increase of other enterprises that operate in the same industry. The investment will not contribute to the productivity increase of other enterprises that operate in the same industry. 5 points 3 points 0 points 4. THE SUSTAINABLE NATURE OF THE INVESTMENT (THE MAXIMUM NUMBER OF POINTS IS 5) The score is in the reverse order to the possibility to transfer the investment from Slovenia to other countries at low costs and with minimum difficulty. The maximum number of points (5) will be awarded to the investment project whose nature is such that a transfer of the operations from Slovenia is highly unlikely and associated with very high costs. Nil (0) points will be awarded to the investment project where the operations could be transferred from Slovenia at very low costs. The evaluation takes into account mainly the type of investment in property, plant and equipment (PPE) (purchase/freehold, leasehold), costs of equipment, transport, the value of manufacturing facilities, the investor s investments in human resources, etc. The nature of the investment project makes it practically impossible to relocate machinery and equipment from the Republic of Slovenia. The equipment and machinery can be relocated from the Republic of Slovenia; however, it is associated with high costs and is time-consuming. The equipment and machinery can be relocated from the Republic of Slovenia very quickly and at negligible costs. 5 points 3 points 0 points 5. THE IMPACT OF THE INVESTMENT ON THE RESEARCH AND DEVELOPMENT ACTIVITY (THE MAXIMUM NUMBER OF POINTS IS 25) The score is composed of four parts: in the first part we assess the share of high technology in the investment project (the maximum number of points is 10), in the second part we assess the possibility for the transfer of technology to other Slovenian enterprises (the maximum number of points is 6), in the third part we assess input of the Slovenian scientific and research establishments in the investment project (the maximum number of points is 6), in the fourth part we assess the existing co-operation between the foreign investor and the scientific and research establishments (the maximum number of points is 3). a) The share of high technology in the investment (the maximum number of points is 10) The investment refers to the operations classified as new economy (telecommunications, microelectronics, information technology, biotechnology, new materials, etc.) The investment involves mostly high technology (a high tech project). The investment involves technology at a medium level (a middle tech project). 10 points 7 points 4 points Public Agency for Entrepreneurship and Foreign Investments 16 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011

17 The investment does not involve new technology (a low-tech project). 0 points b) The possibility for the transfer of technology to other Slovenian enterprise (the maximum number of points is 6) The nature of the investment project enables technology transfer to other Slovenian enterprises. The nature of the investment project enables partial technology transfer to other Slovenian enterprises. The nature of the investment project does not enable technology transfer to other Slovenian enterprises. 6 points 3 points 0 points c) The participation of the Slovenian scientific and research establishments in the investment project (the maximum number of points is 6) The investment project envisages strong and continuous collaboration with the Slovenian scientific and research establishments and engaging external researchers for research groups within the investor s enterprise. The investment project envisages limited co-operation with the Slovenian scientific and research establishments on the basis of outsourcing individual R&D separated from the development function of the enterprise. The investment project does not deploy any Slovenian scientific and research institutions. 6 points 3 points 0 points d) The existing co-operation between the foreign investor and the scientific research establishments (the maximum number of points is 3) The application and supporting documents show that the foreign investor continually co-operates with the scientific research establishments and includes external researchers. The application and supporting documents show that the foreign investor cooperates to a lesser extent with the scientific and research establishments on the basis of outsourcing individual research and development establishments separated from the development function of the enterprise. The application and supporting documents do not show any co-operation between the foreign investor and the scientific and research institutions. 3 points 1 point 0 points 6. THE IMPACT OF THE PROPOSED INVESTMENT ON HUMAN CAPITAL (THE MAXIMUM NUMBER OF POINTS IS 10) The score is commensurate with the possibility of the transfer of relevant knowledge and skills to other enterprises/companies in Slovenia. The maximum number of points (10) will be awarded to the investment project, which envisages occupational education and training for the majority of employees who will in turn obtain relevant knowledge and skills that could be used also in other enterprises that operate in that sector/industry. Nil (0) points will be awarded to the investment project, which does not envisage occupational education and training of employees. Public Agency for Entrepreneurship and Foreign Investments 17 RD ATTRACTING FOREIGN DIRECT INVESTMENTS IN 2010 and 2011