RULEBOOK ON MANAGEMENT OF THE SUPPORT … · World Bank and Credits and Grants from the International Development Association on Behalf of ... World Bank Pollution Prevention and

Based on Article 25, paragraph 19 of the Law on Innovation Activity ("Official Gazette of the Republic

of Macedonia" no. 79/13, 137/13, 41/14, 44/15, 6/16 and 53/16) and Article 20, paragraph 2, indent 11

of the Statute of the Fund for Innovations and Technology Development, the Managing Board of the

Fund for Innovations and Technology Development, on the session held on 05.10.2016, adopted the

following:

RULEBOOK ON MANAGEMENT OF THE SUPPORT INSTRUMENTS OF THE FUND

FOR INNOVATIONS AND TECHNOLOGY DEVELOPMENT

I. GENERAL PROVISIONS

Definitions

1. "Anti-corruption guidelines" are "Guidelines for Preventing and Fighting Fraud and Corruption in

Projects Financed with World Bank Loans and Credits and Grants of the International Development

Association" from 15 October 2006, revised in January 2011.

2. "Applicant" is a subject that has submitted a project proposal to the Fund for Innovations and

Technology Development (hereinafter referred to as "the Fund") following an open public call for

awarding funds under the Fund's support instruments (hereinafter referred to as: the instruments).

3. "Agreement for Awarding Funds" is an agreement between the Fund and the selected beneficiary,

for awarding funds, concluded in accordance with the rules and procedures indicated in the Rulebook

on Management of the Support Instruments of the Fund for Innovations and Technology Development

(hereinafter referred to as: "the Management Rulebook"), as well as in the rulebooks on the respective

Fund instruments, acceptable for the World Bank.

4. "Committee for Approval of Investments" is a Committee made up of international experts,

established in accordance with the Law on Innovation Activities, operating in accordance with the

Law, the Management Rulebook and the Committee's Rules of Procedure.

5. "Beneficiary" is a legal entity that has signed an agreement for awarding funds with the Fund.

6. "Co-financed grant" is a grant given by the Fund to a beneficiary for financing work, goods,

consultation and other services in accordance with the approved project application and project

budget, co-financed by the beneficiary in accordance with the requirements indicated in the

Management Rulebook, as well as the rulebook on the respective Fund instrument.

7. "Consultant Guidelines" are the "Guidelines: Selecting and Engaging Loan Consultants from the

World Bank and Credits and Grants from the International Development Association on Behalf of

Borrowers of the World Bank" since January 2011.

8. "Procurement Guidelines" are the "Guidelines for Procurement of Goods, Works and Non-

Consulting Services under World Bank Loans and IDA Credits and Grants by World Bank Borrowers"

from January 2011.

9. "Environmental Management Plan" is a plan for environmental management for innovation

projects, acceptable for the World Bank, containing detailed information on the appropriate/i.e.

necessary measures for maximising the projects benefits, removing, replacing, i.e. alleviating all the

harmful effects to the environment, i.e. decreasing them to an acceptable level, together with the

budget and cost assessments, financing resources, appropriate institutional arrangements and

monitoring and reporting arrangements that allow appropriate implementation and regular feedback

submission on the compliance with that environmental management plan.

10. "Training" are training courses, consultancy services, study trips, seminars, workshops and other

activities for the transfer of knowledge and for increasing human capacity.

11. "Project Proposal" is a project submitted following an open public call for awarding funds under

the Fund's support instruments, to be financed through a co-financed grant or conditional in

accordance with the criteria and procedures in the Operational Rulebook and the rulebook on the

respective Fund instrument.

12. "Conditional loan" is a loan given by the Fund to a certain beneficiary for financing works, goods,

consultation and other services in accordance with the approved project application and project

budget, co-financed by the beneficiary in accordance with the requirements indicated in the

Management Rulebook, as well as the rulebook on the respective Fund instrument.

Article 1

(1) This Management Rulebook regulates, inter alia: the criteria and the procedures for awarding

funds, the content of the public call for awarding funds, the manner of evaluation of the submitted

project proposals, the manner of monitoring of the granted projects, keeping records on the

beneficiaries of the funds awarded by the Fund and other things related to the operation of the Fund.

(2) This Management Rulebook contains the following:

- the criteria and the requirements for awarding funds under the Fund's instruments;

- the procedures for awarding of funds under the Fund's instruments;

- the rules of payment of the funds;

- the rules for implementation of projects supported through the Fund's instruments;

- the rules for supervision, monitoring and evaluation;

- the conditions for temporary financing discontinuation and termination;

- the rules for providing training for the beneficiaries of the Fund's funds;

- the mechanisms for protection of the funds awarded under the Fund's instruments; and

- other issues concerning the Fund's work.

II. THE FUND'S MISSION, ORGANISATIONAL STRUCTURE AND INSTRUMENTS

Article 2

(1) The Fund's mission is to encourage and support innovation activities in micro, small and medium-

sized enterprises to achieve accelerated technological development based on knowledge transfer, to

conduct development and innovation research that contributes to the creation of new work places and

economic growth and development, while improving the business environment for the development

of enterprise competitive advantage.

(2) The Fund's management structure is the following:

- Managing Board;

- Committee for Approval of Investments (hereinafter referred to as: the Committee);

- Director.

(3) The activity, internal organisation and manner of operation, as well as the rights, obligations and

responsibilities of the Fund and other issues of importance to the Fund's operation are regulated under

the Law on Innovation Activities, the Fund's Statute, the Rulebooks on the Fund's Systematization and

Internal Organisation, the Rules of Procedure of the Managing Board, the Rules of Procedure of the

Committee and other internal acts of the Fund.

Article 3

(1) The Fund grants funds through these 4 (four) support instruments:

Co-financed Grants for Newly Established Enterprises: Start-up and Spin-off;1

Co-financed Grants and Conditional Loans for Commercialisation of Innovations;2

Co-financed Grants for Technology Transfer;3 and

Co-financed Grants for Establishing, Operating and Investing of Business-Technology

Accelerators.4

(2) The main features of the instruments, as well as the particular characteristics for eligibility are

described in detail and regulated with rulebooks on the respective support instruments adopted by the

Fund's Managing Board.

1Mini grants for proof of concept 2Co-financed grants and loans for commercialisation; 3Co-financed grants for sector technology extension; 4Establishing accelerators

III. PROCEDURES FOR AWARDING FUNDS UNDER THE FUND'S INSTRUMENTS

Article 4

(1) For each awarding of funds through the Fund's instruments, the Fund issues a public call, of

which the Managing Board is previously informed. The public call is obligatorily published in at least

two public media and on the Fund's web-site.

(2) The deadline for submitting the project proposals shall be determined as 30 (thirty) to 90 (ninety)

days from the day of publication of the public call.

Article 5

(1) The public call must contain the following information:

- information on the authority issuing the call;

- the date of issue of the public call;

- the manner of submission of the project proposal and accompanying documents;

- the deadline for submitting the project proposals;

- a brief description of the instruments, including the applicant eligibility criteria, the eligible

activities and eligible costs acceptable for financing;

- the total budget for the call, as well as the possibility for reallocation of funds that have not been

awarded to another call under the same instrument or in the amount of 30% of the budget for one

instrument in the budget of another instrument within the same call;

- contact information.

(2) All above-mentioned data must be contained in the complete public call published on the Fund's

web-site. A summarised version of the public call shall be published in the public media.

Article 6

(1) The following documents shall be submitted when applying for funding under any of the Fund's

instruments:

1. The project documentation (containing the forms for the project proposal, available on the Fund's

web-site and also given as an annex to the rulebook on the respective instrument):

- a duly completed project application form (signed and sealed by an authorised representative);

- a duly completed project budget form (signed and sealed by an authorised representative);

- a duly completed financial projection form;

- applicant's statement that the applicant accepts the Fund's requirements (Annex 1 of the Management

Rulebook, signed and sealed by an authorised representative);

- a duly completed Environmental Screening Questionnaire (signed and sealed by an authorised

representative), except for the support instrument Co-financed Grants for Establishing, Operating and

Investing of Business-Technology Accelerators, where the accelerator shall sign an environmental

statement with which it confirms that the beneficiaries of the accelerator will comply with the procedures

of the Environmental Management Framework.

2. Applicant-related documents:

For all the Fund's instruments, except for the support instrument Co-financed Grants for Establishing,

Operating and Investing of Business-Technology Accelerators:

- short CVs of the main persons engaged in the project (maximum five people);

- current status statement from the Central Register of the Republic of Macedonia, not older than 6

(six) months, submitted in original or a copy notarized by the applicant;

- stamped financial statements for the previous and the current year, except for a newly established

enterprise registered in the same year the project proposal was submitted.

For the support instrument Co-financed Grants for Establishing, Operating and Investing of Business-

Technology Accelerators:

- CVs of the managers of the accelerator, CVs of the accelerator's operational team, a list of

experts/mentors involved in the operation of the accelerator;

- current status statement from the Central Register of the Republic of Macedonia, not older than 6

(six) months, submitted in original or a copy notarized by the applicant for applicants that are legal

persons; or a copy of the citizenship confirmation for applicants that are natural persons;

- stamped financial statements for the previous and the current year for applicants that are legal

persons, except for public institutions and newly established enterprises registered in the same year

when the project proposal was submitted.

(3) In case of project proposals that require a partnership approach (for example, a consortium, a

partner etc.), the applicant will also have to send a consortium agreement and/or an agreement for co-

operation, respectively, with regulated rights, obligations, ownership relations and appointed

authorised representative. In case the project proposal is submitted by several applicants for the

support instrument Co-financed Grants for Establishing, Operating and Investing of Business-

Technology Accelerators, the applicants shall submit a co-operation agreement with regulated rights,

obligations, ownership relations and an appointed authorised representative for establishing the

business-technological accelerator.

(4) The project application, the project budget and the financial projection should be submitted in both

Macedonian and English language. The CVs should be submitted only in English. The applicant-related

documents should be submitted only in Macedonian language.

(5) The project documentation must be submitted on forms prepared by the Fund.

(6) In case the project is based on already existing intellectual property rights, the applicant shall

together with the project documentation submit proof that the applicant has the right to use the

intellectual property in the form of a licensing agreement, agreement for "in-kind" contribution or

other type of contract that confirms that the applicant has the right to use the intellectual property that

the project outcomes are based upon.

(7) All project-proposals submitted following a public call for awarding funds under the Fund's

instruments or submitted to the business-technology accelerators financed by the Fund that have

environmental impact, must comply with the environmental impact policies of the World Bank, the

World Bank Pollution Prevention and Abatement Handbook, the Environmental Law and other

relevant applicable laws and by-laws in the Republic of Macedonia.

(8) The fund shall reserve the right to, if necessary, request other documents from the applicants.

Article 7

(1) In case the applicant is awarded financing, the applicant shall also submit the following

documents before signing the agreement for awarding funds:

- agreements with third parties relevant for the implementation of the project

- financial statements for the previous year issued by the Central Register of the Republic of

Macedonia, except for a newly established enterprise registered the same year the project proposal is

submitted;

- statement for accumulation of state aid in the last three fiscal years (if applicable);

- signed and sealed Environmental Management Plan (if applicable);

- information for an opened separate project account.

(2) For the support instrument Co-financed Grants for Establishing, Operating and Investing of

Business-Technology Accelerators, when the business-technological accelerator is not established

before the project application is submitted, the applicant/applicants are obliged to submit a decision for

a registered activity of a business-technology accelerator from a competent authority before signing the

document for awarding funds. The agreement for awarding funds is signed between the Fund and the

business-technology accelerator.

(3) The Fund reserves the right to, if necessary, request other documents from the applicants that

should be submitted as soon as possible.

IV. EVALUATION OF PROJECT PROPOSALS

Article 8

(1) In order to determine whether the project proposal is complete and in accordance with the

eligibility criteria indicated in the public call and the rulebook on the respective instrument, a

Commission (or commissions) for Administrative Verification of the arrived project proposals is

established. The Commission (or commissions) review each proposal separately.

(2) The Commission for Administrative Verification of the received project proposals is formed by

the director or a person authorised by the director and consists of at least two employees.

(3) When reviewing the project proposals, the Commission for Administrative Verification complies

with the Document for Administrative Verification of the Project Proposals (given as an annex to the

rulebook on the respective support instrument).

(4) After the administrative verification of the project proposals is completed, the Commission for

Administrative Verification shall prepare notes.

(5) If a project proposal is incomplete, i.e. the applicant has not submitted the required

documentation when applying in accordance with Article 6 of this Management Rulebook or has an

incorrectly completed project budget or/and financial projection, the committee for administrative

verification shall inform the applicant and give him an opportunity to within 5 (five) work days

additionally submit the missing documents and/or a corrected project budget and/or corrected

financial projection electronically or to the Fund's archive. When documents are additionally

submitted, no changes to the project application or in the project budget are allowed that are not

requested by the Fund.

(6) If the applicant fails to submit the missing documents within the additional 5 (five) working days,

or the applicant and/or the members of the consortium/the partners do not comply with the eligibility

criteria indicated in the rulebook for the respective instrument, the committee for administrative

verification shall put a comment in the notes that the project proposal is incomplete, i.e. that the

applicant and/or the members of the consortium/the partners are not eligible and it will not be

evaluated by the Committee.

(7) The notes referred to in paragraph 4 of this Article, together with the completed documents for

administrative verification, are prepared by the Commission for Administrative Verificatio within 20

(twenty) working days from the deadline for submitting the project proposals.

(8) All project proposals that are submitted on time, that are complete and comply with the eligibility

criteria for the applicant and/or the partners, are sent by the Fund's director or a person authorised by

the director for evaluation to the members of the Committee in accordance with the procedure under

Article 8 of this Management Rulebook.

(9) Aside for the notes, the Commission for Administrative Verification also prepares a list with all

the received project proposals containing the following data:

- name of the applicant/consortium member/partner

- ownership structure of the applicant/consortium member/partner;

- authorised person (manager/director) of the applicant/consortium member/partner.

(10) The Committee sends the list under paragraph 9 to the Fund's employees, the director, the

members of the Managing Board and the members of the Committee, for the purpose of determining

a potential conflict of interests in accordance with the Rulebook on Preventing Conflicts of Interest

and Protection of Trade Secrets.

(11) If any of the members of the Committee identifies a conflict of interest, the member shall inform

the Fund's director as soon as possible, after which the member shall be excluded from the process of

evaluation of that project proposal.

(12) If more members of the Committee identify a conflict of interest concerning a project proposal

and that project can not be evaluated by at least 3 (three) members of the Committee, the project shall

be excluded from any further procedure and will not be evaluated.

Article 9

(1) The Committee reviews the project proposals and takes the final decision for financing under the

Fund's support instruments, with the exception of the support instrument Co-financed Grants for

Establishing, Operating and Investing of Business-Technology Accelerators, in two phases: the pre-

selection phase and the selection phase in accordance with Article 10 and Article 11 of this

Management Rulebook.

(2) Regarding the support instrument Co-financed Grants for Establishing, Operating and Investing of

Business-Technology Accelerators, the Committee reviews and takes the final financing decision after

only one selection phase in accordance with Article 12 of this Management Rulebook.

(3) At least three of the Committee members should take part in the project proposal evaluation

procedure.

Article 10

(1) In the pre-selection phase, two Committee members, assigned by the director, shall duly complete

the project proposal evaluation tables and evaluate the project proposals within a deadline previously

determined by the director.

(2) The total number of received points for each project shall be determined as an average between the

evaluations received by the two Committee members.

(3) If the difference between the two Committee member's evaluations is more than 30 (thirty) points,

the project proposal is evaluated by a third Committee member within the deadline previously

determined by the director. The total number of received points shall be determined as the average of

the three evaluations.

(4) Each project proposal that receives 51 (fifty-one) points or more (of a total of 100 - hundred -

points), in the pre-selection phase shall enter the next selection phase.

(5) Each project proposal that receives less than 51 (fifty-one) points (of a total of 100 - hundred -

points), in the pre-selection phase is considered rejected for financing under the Fund's support

instruments.

(6) In the project proposal pre-selection phase, the Committee members have the right to ask for a

peer-reviewer to be engaged by the Fund to evaluate a project proposal in the selection phase, as well

as to suggest additional questions for the applicants and the project proposal that will be checked by

the Fund's employees. The Fund shall engage a peer-reviewer and/or shall check only if the project

proposal enters the selection phase.

(7) One of the Committee members that evaluates the project proposals shall be appointed by the

Fund's director to consolidate the evaluations and the comments for the project proposals rejected for

financing in the pre-selection phase.

(8) Each applicant whose project proposal has not received 51 (fifty-one) points or more, i.e. whose

project has not passed the pre-selection phase shall be informed of the results within 30 (thirty) days

from the day the Committee takes the final financing decision.

Article 11

(1) In the selection phase, each Committee member that participates in the evaluation of the call, and

who in the pre-selection phase did not evaluate the respective pre-selected project proposal, shall

complete the project proposal evaluation table and evaluate the project proposal within the deadline

previously determined by the director.

(2) In cases where the Committee members requested an evaluation and expert opinion from a peer-

reviewer, the project proposals are submitted to be evaluated by the peer-reviewer. The rules and the

procedures for project proposal evaluation by peer-reviewers are regulated with the Rulebook on the

Manner of Engagement and Work of the Peer-reviewers in the Work of the Fund for Innovations and

Technology Development.

(3) If the Committee members required additional questions for the applicants and for the project

proposals to be checked by the Fund's employees, the director nominates persons that provide for the

required additional information by visiting the applicant's premises, communicating with the key

persons of the project proposals and/or administrative verification of the information. The assigned

persons are obliged to provide the necessary information within the deadline previously determined by

the director.

(4) In the selection phase, the pre-selected project proposals shall also be reviewed by environmental

experts. The environmental expert shall complete all the necessary procedures for review of the pre-

selected project proposals in accordance with the Environmental Protection Framework. The

environmental expert's duty is to submit a report for categorisation of the pre-selected project-

proposals. In accordance with the Environmental Management Framework, the Fund shall not finance

projects categorised as "category 3 - high risk".

(5) The evaluations made by the peer-reviewers, the reports for categorisation of the environmental

expert and the reports for the additionally provided information on behalf of the Fund's employees, are

submitted to all Committee members. The Committee members shall take into consideration these

reports when evaluating the project proposals.

(6) The total number of received points for each project proposal is determined as the average of the

evaluation of each of the Committee members received in the pre-selection phase and the selection

phase.

(7) A list is prepared for the selected project proposals based on the received points.

Article 12

(1) Where the support instrument Co-financed Grants for Establishing, Operating and Investing

of Business-Technology Accelerators is concerned, each Committee member shall complete the

project proposal evaluation table given as an annex to the Rulebook on the Support Instrument Co-

financed Grants for Establishing, Operating and Investing of Business-Technology Accelerators and

shall evaluate the project proposals within the deadline previously determined by the director.

(2) The total number of received points for each project shall be determined as an average

between the evaluations of all the Committee members.

(3) A list is prepared for the selected project proposals based on the received points.

Article 13

(1) The final decision for project proposal financing under all the Fund's support instruments is taken

by the Committee at a meeting held within 90 (ninety) days from the day the project proposals are

submitted to the Committee.

(2) During the meeting, the Fund can organize a pitch-event for the pre-selected project proposals. At

this pitch-event, each applicant shall briefly present his/her project proposal, and the Committee

members have the right to ask questions in order to get additional information that shall help them

when taking the decision.

(3) The Committee shall take the final financing decision during the meeting with public voting "for"

or "against" the awarding of funds to a pre-selected project proposal. The funds for a pre-selected

project proposal can be awarded only if at least three Committee members voted "for" the awarding

of funds for that project proposal.

(4) The available financing budget for each respective public call will also have considerable impact

on the financing decision. The Committee shall take the financing decision for project proposals only

within the determined public call budget.

(5) If under an instrument, the determined budget in the public call is higher than necessary, i.e. there

are not enough project proposals approved for financing, the unused funds can be reallocated for

another public call or the funds in the amount of 30 % can be reallocated for another instrument of

the Fund in the same public call, provided the other instrument has more project proposals eligible

for financing than the budget determined for that instrument in the public call.

(6) Committee members that evaluate the project proposals shall be assigned by the Fund's director to

consolidate the evaluations and the comments of the project proposals rejected for financing in the

selection phase.

(7) Each applicant whose project proposal has passed the selection phase shall be informed of the

results within 30 (thirty) days from the day the Committee made the final financing decision.

(8) The applicants whose project proposals has not been approved for financing, may apply once

again to be awarded funds from the Fund up to three times with the same project proposal.

V. PROJECT IMPLEMENTATION

Article 14

(1) The applicants for which a financing decision has been taken shall be invited to sign an agreement

for awarding funds within 30 (thirty) days from the day the decision was taken.

(2) Obligatory elements of the agreement for awarding funds under the Fund's instruments are:

- the contractual parties;

- agreement subject;

- definitions and interpreting;

- agreement value;

- project duration;

- rights and obligations of the Fund and the beneficiary;

- force majeure;

- agreement termination; and

- final provisions.

(3) The agreement forms from paragraph 2 of this Article are given as an annex to the rulebook on

the respective instrument.

Article 15

(1) Before signing an agreement for awarding funds through one of the Fund's instruments, the

beneficiary shall open a separate bank account intended for the project.

(2) For all support instruments, with exception of the support instrument Co-financed Grants for

Establishing, Operating and Investing of Business-Technology Accelerators, the funds are paid in

advance, quarterly, in accordance with the project budget and the provisions of the Management

Rulebook and the rulebook for the respective support instrument. For the support instrument Co-

financed Grants for Establishing, Operating and Investing of Business-Technology Accelerators, the

funds are paid in accordance with the project budget and the provisions of this Management

Rulebook and the Rulebook on the Support instrument - Co-financed Grants for Establishing,

Operating and Investing of Business-Technology Accelerators.

(3) The funds expressed in EUR currency in the agreement for awarding funds and the project budget

shall be paid in Macedonian denars in the amount determined in accordance with the buying rate of

the National Bank of the Republic of Macedonia on the day of payment.

Article 16

(1) The funds for the first quarter will be paid to the separate account after the signing of the

agreement for awarding funds and after the beneficiary submits to the Fund proof of made payment

for co-financing for the first quarter in the form of a bank statement.

(2) The funds for each following quarter shall be paid to the separate account after the following

conditions are fulfilled:

- approved quarterly report on the progress in the previous quarter (narrative part and financial part);

- at least 70 % (seventy percent) from the previously budgeted funds are adequately spent

- proof is submitted for the made payment for co-financing from own resources for the following

quarter in the form of a bank statement.

(3) Regarding the support instrument Co-financed Grants for Establishing, Operating and Investing of

Business-Technology Accelerators, a requirement for further financing is a received positive

evaluation of the accelerator by the Committee in accordance with the monitoring procedures

determined in the rulebook on the respective instrument.

(4) The procedure for all payments made to the beneficiary, with the exception of the first payment,

shall start within 14 (fourteen) days from the day the quarterly report was approved.

(5) From the latest payments, the Fund retains 5 % (five percent) of the total project budget, except

for the instrument Co-financed Grants for Establishing, Operating and Investing of Business-

Technology Accelerators where the Fund retains 5 % of the total co-financing on behalf of the Fund,

decreased for the amount of savings made during the project implementation.

(6) The procedure for payment of the retained funds under paragraph 5 of this Article shall start within

14 (fourteen) days from the day the final project report is approved (narrative part and financial part).

(7) If there are unused funds and/or in case of malpractice, a corresponding amount of the retainer

shall not be paid to the beneficiary.

Article 17

(1) The beneficiary shall duly fulfil the obligations to the Fund regarding the repayment of the loan

(principal and interest), payment of royalties and revenue from the assets from the sale of the

investment and other exit strategies of the accelerator beneficiaries.

(2) If the agreement for awarding funds is interrupted or terminated, the beneficiary shall return the

received funds in accordance with the agreement terms.

(3) The beneficiary's payments should be calculated in EUR and paid in Macedonian denars in

accordance with official buying rate of the National Bank of the Republic of Macedonia on the day of

payment.

(4) The Fund shall keep records for servicing of the fund beneficiaries' obligations towards the Fund.

(5) For each delay of payment of the funds for settling the obligations towards the Fund on behalf of

the beneficiaries that exceeds 30 (thirty) days, the Fund shall send a written notice to the beneficiary

regarding the delay.


the beneficiaries that exceeds 60 (sixty) days, the Fund shall send a written notice to the beneficiary

regarding the delay.


the beneficiaries that exceeds 90 (sixty) days, the Fund shall terminate the agreement for awarding

funds and shall activate the protection instruments foreseen in accordance with the agreement.

(8) For each delay of payment of the obligations towards the Fund on behalf of the beneficiaries that

exceeds 30 (thirty) days, the Fund shall calculate and charge legal penal interest in accordance with

the Contract Law of the Republic of Macedonia.

Article 18

(1) The beneficiary shall implement the project in accordance with the conditions foreseen in this

Management Rulebook, in the rulebook for the respective instrument and the agreement for awarding

funds, as well as in accordance with the good technical, economic, financial, administrative,

ecological and social standards and practices and in accordance with the laws and by-laws in the

Republic of Macedonia.

(2) The beneficiary shall implement the project effectively and efficiently, in accordance with the

project application and the project budget.

(3) The beneficiary shall maintain the system for financial management and to keep a system of

separate financial-accounting records, in accordance with the international accounting standards and

in a manner most appropriate for the respective project activities, the available resources and costs

related to the project and shall prepare financial reports in accordance with cash-based accounting

principles, clearly recording the receipts and made payments for the quarter that they relate to, in a

manner corresponding with the project related activities, resources and costs.

(4) The Fund requires the beneficiaries, as well as the selected suppliers, consultants and participants

in the project, to adhere to the highest ethical standards in accordance with the World Bank Anti-

corruption Guidelines5 and the Law on Preventing Corruption, with the aim of preventing corruption

and similar behaviour during the project implementation.

Article 19

(1) The beneficiary shall make each procurement of goods and services in accordance with the World

Bank Procurement and Consultant Guidelines6 and the herein indicated acceptable commercial

practices:

- When making the procurements foreseen in the project, the beneficiaries shall take into consideration

5The World Bank Anti-corruption Guidelines are available on

http://siteresources.worldbank.org/INTOFFEVASUS/Resources/WB_Anti_Corruption_Guidelines_10_2006.pdf 6The World Bank Consultant Guidelines and the Procurement Guidelines are available on

www.worldbank.org/procurement.

the economic need, the efficiency, the transparency and the duration of the procurement procedure, as

well as the quality of the procured services and goods.

- For the procurements made under the instrument for Co-financed Grants for Newly Established

Enterprises: Start-up and Spin-off that are above 5,000.00 (five thousand) EUR, the beneficiary must

implement a call procedure and acquire at least three offers. The beneficiary shall submit the

documentation for each phase of the call procedure to the Fund for approval (for example: the public

announcement, the selection criteria, the agreement).

- For the procurements made under the instruments for Co-financed Grants and Conditional Loans for

Commercialisation of Innovations and Co-financed Grants for Technology Transfers that are above

10,000.00 (ten thousand) EUR, the beneficiary must implement a call procedure and acquire at least

three offers. The beneficiary shall submit the documentation for each phase of the call procedure to the

Fund for approval (for example: the public announcement, the selection criteria, the agreement).

In justified cases, the procurements from indent 2 and indent 3 of this Article may be implemented

without a call procedure after received approval from the Fund's director.

(2) When applicable, the agreements between the beneficiary and third parties should include

provisions on intellectual property protection, conflict of interest prevention, audit and environmental

impact.

Article 20

(1) During the project implementation, the beneficiary shall put the logo and name of the Fund on all

marketing materials for the project and to clearly state that the project is implemented with the Fund's

financial support.

(2) The equipment procured through the project financed by the Fund must be marked with the

Fund's logo, as well as with the notice: "Supported by the Fund for Innovations and Technology

Development of the Republic of Macedonia".

(3) If the beneficiary has a web-site, the beneficiary shall publish a brief information on the financial

support provided by the Fund. If the beneficiary publishes or gives a statement to the media with

regard to the project, the beneficiary shall mention the support provided by the Fund.

Article 21

(1) Each project amendment should be justified and for the purpose of achieving the expected project

outcomes.

(2) Each insignificant deviation from the project application and the project budget (changes in the

activity plan that do not lead to a change in the expected project outcomes, change of the key persons of

the project etc.) shall be previously approved by the Fund's director.

(3) Each insignificant deviation from the project application and the project budget (change of

beneficiary status, change of the dominant beneficiary ownership, change in the dominant Macedonian

ownership of the beneficiary, reallocation within the project budget higher than the one allowed in

paragraph 4 of this Article and/or more significant changes that arise from an unavoidable obstacle

from a technical or market point of view, that hinder the realisation of the expected project outcomes)

shall be previously approved by the Committee.

(4) The beneficiary shall realise the planned costs following the dynamics and within the framework

indicated in the project budget. The beneficiary may reallocate the funds as follows:

- for the instrument Co-financed Grants for Newly Established Enterprises: Start-up and Spin-off

within 15% (fifteen percent) of the total project budget during the whole project duration;

- for the instrument Co-financed Grants and Conditional Loans for Commercialisation of Innovations

within 10% (ten percent) of the total project budget during the project duration.

- for the instrument Co-financed Grants for Technology Transfers within 5% (five percent) of the total

project budget during the project duration.

- for the support instrument Co-financed Grants for Establishing, Operating and Investing of Business-

Technology Accelerators, any reallocation of the funds is allowed, with the exception of reallocation

regarding the budget items "initial investment" and "further Investment" of the project budget.

(5) Each reallocation of funds that exceeds the amount mentioned in paragraph 4 of this Article shall

be previously approved on behalf of the Committee, based on the request submitted by the beneficiary

with a revised project budget in attachment.

(6) In case of reallocation of funds approved by the Committee, the beneficiary shall implement the

project in accordance with the revised project budget.

Article 22

(1) The beneficiary shall keep the entire project documentation from the onset of the project

implementation.

The obligatory project documentation contains:

- project documentation and documentation related to the beneficiary;

- all official documents for communication between the beneficiary and the Fund during the

application period;

- notification for awarding of funds;

- agreement for awarding funds;

- all official documents during the project implementation and period of reporting obligation;

- original copies of all reports submitted to the Fund;

- notification of approval of all reports submitted to the Fund;

- original copies of all invoices;

- all other documents including agreements with third parties and other project-related proofs of

payment.

(2) The beneficiary shall keep the entire documentation from paragraph 1 of this Article at least until

2023.

(3) All information regarding the project-related agreements and procurements must be accessible for

review by the World Bank representatives, the Fund's employees and/or persons authorised by the

Fund.

VI. SUPERVISION, MONITORING AND EVALUATION OF THE PROJECT RESULTS

Article 23

(1) The supervision goal is to follow the progress of the project and implementation of the planned

activities, to confirm that the expenditures are in accordance with the approved budget for the given

period and in accordance with the Fund's procedures, as well as to evaluate the achieved results after

the project end.

(2) The supervision methods include:

- reviewing and approving the reports submitted by the beneficiary;

- making field visits to the beneficiary and the consortium members;

- making field visits to the beneficiaries of the business-technology accelerators financed under the

instrument Co-financed Grants for Establishing, Operating and Investing of Business-Technology

Accelerators;

- evaluation of the achieved results from the projects and in-depth business and financial analysis.

(3) The supervision is carried out by monitoring teams assigned by the Fund's director and/or audit

experts assigned by the Fund's director.

Article 24

(1) The beneficiary shall submit the following reports to the Fund:

- quarterly progress reports (narrative and financial part) that the beneficiary shall submit

during the project duration within 14 (fourteen) days after the expiry of the last calendar day of the

quarter.

- Final report (narrative and financial part) that the beneficiary shall submit during the project

duration within 60 (sixty) days after the expiry of the last calendar day of the project.

- Six-month reports which the beneficiary shall submit after the project end, until the

beneficiary's obligations towards the Fund still apply.

(2) The project documentation must be submitted on forms prepared by the Fund.

(3) The six-month reports after the termination of the project are submitted:

- at latest by 30 July of the current year in the form of financial reports for the period 1 January until

30 June of the current year, and

of the current year in the form of financial reports together with a financial

statement submitted to the Central Register of the Republic of Macedonia for the period 1 January

until 31 December of the previous year.

(5) The supervision is carried out by monitoring teams assigned by the Fund's director and/or audit

experts assigned by the Fund's director. In the case of identified irregularities in the reporting that can

be corrected by the beneficiary, the Fund shall inform the beneficiary of the identified irregularities

with the request to correct the irregularities and to submit a revised report.

(6) In case the report is duly completed and submitted, the Fund's director, following the

recommendations of the monitoring teams, shall approve the report and shall submit the approval to

the beneficiary.

(7) The monitoring team has the right to ask the beneficiary to submit additional information and

documents related to the reports, as well as to make an unannounced field visit to the beneficiary in

order to check the information submitted in the reports.

Article 25

(1) The monitoring teams make at least one field visit per project within 12 months. The Fund has the

right to make more field visits if necessary.

(2) The field visits include a visit of the business premises of the beneficiary and a meeting with the

key persons of the project in order to supervise the implementation of the project (for example

adherence to the procedures, reaching the envisioned results, adhering to the time framework,

adhering to the agreement for awarding funds provisions etc.)

(3) The field visit may be either announced or unannounced. When the field visit is announced, the

monitoring team sends the beneficiary a notification for making a field visit containing the location

details, the time of the visit, the persons that should be present, the documentation and the acquired

equipment that should be available for inspection. The notification for the intended field visit is

submitted at least 7 days before making the visit.

(4) The monitoring team shall prepare minutes from the conducted field visit containing information

on the course of the visit, the persons present at the field visit, the checked documents, the comments

made by the team, the identified irregularities, the guidelines and the deadlines for eliminating the

possible irregularities etc.

(5) The monitoring team shall send the beneficiary a notification relating the made field visit. In case

of established irregularities, the beneficiary shall take measures in accordance with the guidelines and

the deadlines indicated in the notification.

Article 26

(1) During the implementation of the projects, if the monitoring teams identify any irregularities that

are not under their authorisation, they can submit a proposal to the director to call a meeting of the

Committee to take decision regarding the identified irregularities.

(2) During the implementation of the projects, audit experts may also be included in accordance with

the Rulebook on the Manner of Inclusion and Work of the Audit Experts in the Work of the Fund for

Innovations and Technology Development.

(3) After the project end, audit experts may be included in accordance with the Rulebook on the

Manner of Inclusion and Work of the Audit Experts in the Work of the Fund for Innovations and

Technology Development for evaluation of the outcomes and/or in-depth business and financial

analysis of the financial projects.

(4) The audit expert from paragraph 2 and paragraph 3 of this Article shall revise the project

documentation, make a field visit to the beneficiary’s premises (if necessary) and submit a report and

expert opinion to the Fund within 14 work days from the date of receipt of the documentation.

Article 27

(1) The beneficiary shall comply with the procedures and shall enable the Fund to easily supervise

the project implementation.

(2) The beneficiary shall enable the Fund or the persons authorised by the Fund to at all times do an

in-depth analysis on the project implementation, of the activities and the achieved outcomes, as well

as to complete a revision of the project and financial documentation related to the project. The

beneficiary shall prepare all the relevant project-related documents and submit them to the Fund at

the Fund's request.

Article 28

(1) In case of a possible change in the dominant ownership structure (over 50.1% ownership) and/or

change in the dominant Macedonian ownership (over 50,1% ownership), the beneficiary shall request

approval for the change from the Committee. This obligation is not relevant in the case of death of

the owner/co-owner and/or stockholder and the carrying out of probate proceedings.

(2) Regarding the requirement from paragraph 1 of this Article, the Committee shall take a decision as

soon as possible.

(3) In case of change of the ownership structure which does not constitute a change in the dominant

ownership, the beneficiary shall within 15 (fifteen days) from the day of entering the change in the

Central Register of the Republic of Macedonia inform the Fund of the change. This obligation is not

relevant in the case of death of the owner/co-owner and/or stockholder and the carrying out of

probate proceedings. When the change happens, the beneficiary shall maintain the dominant

Macedonian ownership structure.

(4) The purpose of the beneficiary's obligation to ask the Committee for approval of changes to the

dominant ownership structure and/or the dominant Macedonian ownership is to prevent attempts by

third persons to establish control over the beneficiary and shall apply until all obligations towards the

Fund are fulfilled in accordance with the agreement for awarding funds.

(5) In case of change in the dominant ownership structure (transfer of shares and/or stock), the

beneficiary's new owner should take over all the legal obligations and responsibilities of the

agreement for awarding funds and shall sign a statement for project continuation and confirmation of

the time framework with a statement of liability.

(6) If in the project implementation period and while the obligations towards the Fund still apply, the

beneficiary changes the dominant ownership structure and/or the dominant Macedonian ownership

without previously receiving the Committee's approval, and transfers the enterprise, the activities

and/or transfers the right to ownership of the technology/products/services created under the project to

a foreign country in any way, the beneficiary shall pay 100% of the amount of awarded funds,

decreased by the amount of the paid royalties, revenue from the sale of investments in the beneficiaries

of the accelerator, the paid principal and/or interest to the Fund. From the due date to the date of

payment, the Fund shall calculate and charge a penalty interest rate in accordance with the Contract

Law of the Republic of Macedonia. If the beneficiary plans to close or liquidate the enterprise, the

beneficiary shall afore hand inform the Fund of the intention.

(7) If in the project implementation period and while the obligations towards the Fund still apply, the

new owner of the beneficiary changes the dominant ownership structure and/or the dominant

Macedonian ownership without previously receiving the Committee's approval, closes or liquidates or

transfers the enterprise, the activities and/or transfers the right to ownership of the

technology/products/services made under the project duration to a foreign country in any way, the new

beneficiary shall pay 100% of the amount of awarded funds, decreased by the amount of the paid

royalties, revenue from the sale of investments in the beneficiaries of the accelerator, the paid principal

and/or interest to the Fund. (8) From the due date to the date of payment, the Fund shall calculate and

charge a penalty interest rate in accordance with the Contract Law of the Republic of Macedonia.

Article 29

(1) In case of a possible change of the status - the beneficiary is divided, affiliated or merged, the

beneficiary shall ask the Committee for approval of the change.

(2) Regarding the requirement from paragraph 1 of this Article, the Committee shall take a decision as

soon as possible.

(3) If the Committee gives its approval for status change - the beneficiary is divided, affiliated or

merged, the beneficiary shall ask the Committee for approval of the change, the new owners of the

beneficiary, the legal successor (enterprises that the beneficiary has affiliated with, with which the

beneficiary has merged or to which the owner has transferred funds - newly established enterprises or

existing ones), they shall within 15 days from the entry of the change in the Central Register of the

Republic of Macedonia prepare an annex of the agreement for awarding funds.

(4) The beneficiary's obligation to ask for approval from the Committee for the change of the status

of the beneficiary applies until all obligations towards the Fund are fulfilled in accordance with the

agreement for awarding funds.

(5) If in the period within which the obligations towards the Fund still apply, the new legal successor

(enterprises that the beneficiary has affiliated with, with which the beneficiary has merged or to

which the owner has transferred funds - newly established enterprises or existing ones), closes or

liquidates or transfers the enterprise, the activities and/or transfers the right to ownership of the

technology/products/services made under the project duration to a foreign country in any way, the

new beneficiary shall pay 100% of the amount of awarded funds, decreased by the amount of the paid

royalties, revenue from the sale of investments in the beneficiaries of the accelerator, the paid

principal and/or interest to the Fund. From the due date to the date of payment, the Fund shall

calculate and charge legal penal interest in accordance with the Contract Law of the Republic of

Macedonia.

(6) In order to control the possible changes in the dominant ownerships structure, the dominant

Macedonian ownership structure and/or status change, the Fund may at any time ask the beneficiary

to submit a new current statement from the Central Register of the Republic of Macedonia (not older

than 8 - eight - days).

VII. DISCONTINUATION OF FINANCING AND TERMINATION

OF THE AGREEMENT FOR AWARDING FUNDS

Article 30

(1) The Fund has the right to discontinue the agreement and/or the financing, as well as to terminate

the agreement entirely or partially, in case of embezzlement and breach of the obligations from the

agreement for awarding funds, and/or the provisions of this Management Rulebook and/or the

provisions of the rulebook on the respective instrument, but especially in these cases:

1. if the beneficiary fails to use the approved financial funds for their intended purpose, including the

reallocation of funds in a larger percent than the determined percent of funds from the total project

budget in accordance with Article 21 paragraph 4 without the prior written consent of the Committee;

2. if the beneficiary with the intention to perpetrate fraud gives inaccurate data during the fund

awarding procedure and during the duration of the agreement for awarding funds which have material

impact on the project;

3. if the beneficiary fails to introduce appropriate policies and procedures that shall allow the Fund to

supervise and to evaluate the project progress;

4. if the beneficiary fails to introduce and maintain a system of financial management and does not

prepare financial reports in accordance with the accounting standards in a manner that appropriately

reflect the project-related activities, resources and costs;

5. if on the Fund's request the beneficiary does not allow an audit to be performed by an independent

auditor and/or an audit expert assigned by the Fund;

6. if the beneficiary fails to provide the Fund or the persons assigned by the Fund to inspect the project

implementation, its activities, achieved results and all relevant project documents, or the receipts

and/or does not submit them to the Fund at the Fund's request;

7. if the beneficiary fails to inform the Fund of every significant change that has material impact on the

project;

8. if the beneficiary acts contrary to the provision under Article 18, paragraph 4 of the Management

Rulebook relating to fraud and corruption;

9. if the beneficiary fails to ask for consent to the status change and/or to the change of the dominant

ownership structure and/or dominant Macedonian ownership structure with the purpose of preventing

any attempt of a third person to establish control over the beneficiary;

10. if the beneficiary fails to comply with the provisions under Article 28 and Article 29 of the

Management Rulebook in case a status change and/or ownership structure is approved;

11. regarding a request made by the beneficiary or the monitoring team, if the future results of the

project are endangered due to an unavoidable obstacle of technical and market aspect;

12. if according to the annual evaluation by the Committee of the work of the business-technology

accelerator, it has not achieved satisfactory results (in case of funds awarded under the support

instrument Co-financed Grants for Establishing, Operating and Investing of Business-Technology

Accelerators).

Article 31

(1) In case any of the circumstances under Article 30 of this Management Rulebook arise, the Fund

shall reserve the right to take a decision for temporary discontinuation of the financing, and/or shall

request part or all of the financial funds paid to the beneficiary up to that moment to be returned.

(2) The Fund shall send a written notification to the beneficiary at the same time the decision for

temporary discontinuation of the financing is taken, informing him/her of the breach of the agreement

for awarding funds requiring the beneficiary to remedy the breaches within 14 (fourteen) days of

receipt of the notification.

(3) On request by the beneficiary, the Fund's director may approve the beneficiary additional 30

(thirty) days to remedy the breaches.

(4) In case the beneficiary remedies the identified breaches within the deadlines under paragraph 2

and paragraph 3 of this Article, the Fund's director shall take a decision to withdraw the temporary

discontinuation of financing.

(5) In case the beneficiary fails to remedy the identified breaches within the deadlines under

paragraph 2 and paragraph 3 of this Article, the Fund's director shall inform the Committee of this

and send a proposal, and the Committee shall decide whether the agreement shall be terminated.

Article 32

(1) In case any of the circumstances under Article 30 of this Management Rulebook arise, the Fund

shall reserve the right to take a decision for termination of the agreement and/or shall request part or

all of the funds paid to the beneficiary up to that moment to be returned.

(2) The decision to terminate the agreement for awarding funds and the financing is taken by the

Committee.

(3) In case of termination of the agreement, the beneficiary shall return to the Fund the entire amount

transferred from the Fund to the beneficiary, and particularly in cases relating to the requirements

under Article 30, paragraph 1, indents 2, 5, 6 and 8. The Fund reserves the right to request damage

compensation.

(4) If the agreement for awarding funds is terminated for any of the reasons under Article 30, and the

allocated funds are not used, the beneficiary shall return to the Fund the entire unused amount of

funds at latest within 8 (eight) days from the day the Fund made such a request, otherwise the

beneficiary will be late and may have to pay a penalty interest rate for the same amount in accordance

with the Contract Law, calculated from the date that the beneficiary is late, until the final payment.

(5) In case any of the circumstances under Article 30, paragraph 1, indent 11 of this Management

Rulebook arise, the beneficiary shall be required to submit the documentation to the Fund and to

request termination of the project and the financing. Subsequently, the Committee shall determine

whether the evidence of existence of an unavoidable obstacle which threatens the future project

results is acceptable, and shall take an appropriate decision. If the Committee decides that the

requirements under Article 30, paragraph 1, indent 11 are satisfied, the beneficiary shall not be

obliged to return the awarded funds. The agreement shall not be terminated and the obligations to pay

royalties, interest, principal and/or sale revenues on the investments in the accelerator beneficiaries

and the outcome strategy shall apply as long as the agreement is in force.

(6) In case any of the circumstances under Article 30, paragraph 1, indent 9 and/or 10 of this

Management Rulebook arise, the beneficiary shall pay the Fund 100% of the amount of awarded

funds, decreased by the amount of the paid royalties, revenue from the sale of investments in the

beneficiaries of the accelerator, the paid principal and/or interest to the Fund. From the due date to

the date of payment, the Fund shall calculate and charge legal penal interest in accordance with the

Contract Law of the Republic of Macedonia.

(7) The Fund has the right to request a penalty interest rate, damage compensation and to initiate an

appropriate procedure for securing the claims from the beneficiary's in accordance with the

requirements under the agreement and this Management Rulebook as soon as possible, it the

beneficiary fails to fulfil the requirement in paragraphs 3, 4, 5 and 6 of this Article in order for the

already paid fund to the beneficiary to be returned in full.

(8) The beneficiary's payments shall be paid to the Fund in Macedonian denars in accordance with

the official buying rate of the National Bank of the Republic of Macedonia on the day of payment.

VIII. PROTECTION INSTRUMENTS

Article 33 1) The following shall be used as instruments for securing the Fund's claims in the amount of the awarded funds which are an integral part of the agreement for awarding funds:

a signed blank promisary note issued and accepted by (the beneficiary's name) with a unique personal

entity number ________ by the manager ____________ (name and surname, unique personal ID

number), guaranteed by (name and surname of one or all founders, indicating their unique personal ID

numbers), as guarantors of the claim (guarantors of the receiver) in the form of a notary act - a

statement regulating the rights and obligations of the signers of the bank promisary note with effective

clauses (only for the support instrument - Co-financed Grants and Conditional Loans for

Commercialisation of Innovations and the support instrument - Co-financed Grants for Technology

Transfer);

Agreement for colateral of movable assets and/or property mortgage and/or deposit colateral (in a ratio

of 1: 1 with the awarded funds), signed by the owners (co-owners or stockholders) with effective

clauses, solemnized by a notary (only for the support instrument Co-financed Grants for Technology

Transfer).

IX. TRAINING

Article 34

(1) For the fund beneficiaries, the Fund shall organise training based on needs analyses.

(2) The selection of trainers to perform the training under paragraph 1 which are financed with funds

under the Word Bank loan, shall be conducted in accordance with the World Bank Procurement

Rules and the procurement shall be conducted by the Project Management Unit.

Article 35

(1) The type and duration of the training, as well as the profiles of the trainers shall depend on the

results from the conducted analysis under Article 34, paragraph 1 of this Management Rulebook.

(2) The trainers shall keep track of the training beneficiaries, evaluate the conducted trainings and prepare

a report that shall be submitted to the Fund.

X. MONITORING AND EVALUATION OF THE FUND'S WORK

Article 36

(1) The Fund follows the indicators related to open calls, applicants and fund beneficiaries, in

order to assess the results from the instruments, especially those related to the number of accelerated

enterprises, number of trained fund beneficiaries and number of fund beneficiaries that introduced a

new or improved process or product.

(2) As part of its operation, the Fund shall keep record of the data on received applications and

approved projects.

(3) The Fund shall submit to the Government annual and midterm reports that contain at least the

following information:

- number of published/announced open calls per instrument;

- number of received applications per instrument;

- number of approved applications per instrument;

- total approved funds per call, per instrument;

- number of new employees in the grant beneficiaries, per instrument (number of newly created work

positions) and structure of the new employees with the grant beneficiaries in accordance with level of

education;

- number of enterprises that have submitted an application for protection or have protected their

industrial property with the funds awarded by the Fund; and

- number of enterprises that have after using the funds under the Fund provided for further project

financing from other sources, per instrument, in the 3 (three) years following the project end.

XI. FINAL PROVISIONS

Article 37

The provisions of this Management Rulebook shall be interpreted by the Fund's Managing Board.

Article 38

On the date this Management Rulebook enters into force, the Rulebook on Instrument Management of

the Fund for Innovations and Technology Development no. 01-500 from 18.09.2015 shall be repealed.

Article 39

This Management Rulebook enters into force the day after it is published on the Fund's notice board,

following received consent from the Government of the Republic of Macedonia.

President of the Managing

Board

No. 01-415/1

Skopje, 5.10.2016

ANNEXES

Annex 1 - Statement for Acceptance of the Fund's Terms

Note: Only one legal person (enterprise) shall have the capacity of applicant/lead applicant. The

statement is completed by an authorised representative of the legal person.

In case of a consortium or a partnership, the statement, in the name of all members of the consortium

and/or the partners, shall be completed by the applicant's authorised representative.

STATEMENT OF THE APPLICANT FOR CO-FINANCING

On behalf of [title and seat of the applicant] (hereinafter referred to as "the Applicant") and in the

capacity of a person authorised by the applicant (for the instruments where applicable: the members of

the consortium/partners), with this statement:

I confirm the intent of the applicant (for the instruments where applicable: and the other legal persons

on behalf of which the project proposal is being submitted) to apply for the open call for awarding

funds under the instrument [indicate the instrument for which the project proposal applies],

published by the Fund for Innovations and Technology Development (hereinafter referred to as "the

Fund"), and the intent to implement all the activities indicated in the project application and the project

budget.

1. Compliance with the Eligibility Criteria

I confirm that the applicant (for the instruments where applicable: the members of the

consortium/partners) comply with the eligibility criteria under the Rulebook on the Instrument [indicate

the instrument for which the project proposal applies], I confirm that the applicant (for the

instruments where applicable: the members of the consortium/partners) complies with the requirements

to provide all the documents necessary before the signing of the agreement for awarding the funds

under the Rulebook on Management for the Support Instruments of the Fund for Innovation and

Technology Development.

I confirm that upon request of the Fund, I shall submit all additional document and certificates

necessary to prove that the eligibility criteria are complied with.

I confirm that there are no bankruptcy proceedings against the applicant (for the instruments where

applicable: the members of the consortium/partners), nor liquidation proceedings at the time of signing

of this Statement.


applicable: the members of the consortium/partners), prohibiting the applicant to participate in open

call procedures, awards of contracts for public procurement and public/private partnership agreements;


applicable: the members of the consortium/partners), temporarily or permanently prohibiting the

applicant to carry out certain activities;


applicable: the members of the consortium/partners), prohibiting the applicant to practice a profession,

activity or duty, i.e. a temporary prohibition for carrying out a certain activity;

If applicable, I confirm that the applicant (for the instruments where applicable: the members of the

consortium/partners/indirect beneficiaries), has no capital connection (in accordance with the Law on

Trade Companies) with another company or another enterprise (with more than 250 employees) where

the total annual revenues of the enterprises exceeds 1,000,000.000 (one million) EUR in the two past

years;


consortium/partners) has paid all the obligations related to tax, revenues and other due fees in

accordance with law.

2. Statement of Intent Regarding the Manner of Providing for the Co-financing funds

I confirm that the applicant (the members of the consortium/partner institutions) shall provide for the

necessary funds for co-financing of the project proposal in the amount of [co-financing amount to be

provided by the applicant in EUR] under:

[please mark the appropriate field]

own funds

credit or loan from a financial institution (please indicate)

donation (please indicate) ________________________

other (please indicate)

3. Data Accuracy and Confidentiality

I confirm that all information in the project proposal is complete and true.

I agree for the general data for the applicant (the members of the consortium/partner institutions), the

name, the contacts and the main narrative of the project to be publicly available.

I agree for the project proposal data to be entered in the Fund's data records, to be used for analyses and

for reporting by the Fund (with the exception of the confidential information related to IP and the

technical details regarding the technology).

In case the project proposal is approved and funds are awarded by the Fund, I agree for the project

proposal data to be used for the promotion of the Fund's instruments (with the exception of the

confidential information related to IP and the technical details regarding the technology).

4. Access to Additional Information


consortium/partners) shall on the Fund's request submit all the additional information/document to the

Fund needed in the process of evaluation and for supervising.


consortium/partners) shall timely notify the Fund of any change that may arise, which is of importance

to the process for analysis and evaluation of the project proposal and for monitoring the approved

project, as well as, in case such notification is not submitted fully and timely to the Fund, the applicant

(for the instruments where applicable: members of the consortium/partners) shall be liable for any

damages or costs that may arise.

I confirm that the applicant (for the instruments where applicable: members of the consortium/partners)

shall adhere to the applicable procedures and principles that shall enable the Fund to supervise and

assess the project progress and the achievement of the project results.

In case the project proposal is approved, I confirm that the applicant (for the instruments where

applicable: members of the consortium/partners) shall allow the Fund, the World Bank and/or the

people authorised by the Fund to inspect and review all the documents related to the project proposal

and of the project application.

5. Committee for Approval of Investments

I confirm that we are aware of the fact that the applicant (for the instruments where applicable: the

members of the consortium/partners), may not and has no right to dispute the evaluation and the

decisions of the Committee for Approval of Investments. I also hereby confirm that we are aware of the

fact that the Fund has no impact on the results from the decision-making process of the Committee for

Approving Investments and that because of that it shall not be held responsible for the results from the

decision-making process or the content of the decision.

6. Financing


consortium/partners) has read/understood and accepted all the terms of the Agreement for Awarding

Funds.

In case the project proposal is approved for financing, I confirm that the applicant shall sign the

Agreement for Awarding Funds within the determined period.

In case the project proposal is approved for financing, I confirm that the applicant (for the instruments

where applicable: members of the consortium/partners) shall implement the project duly and efficiently

in accordance with the requirements of the Fund and in compliance with technology, economic,

financial, environmental and social standards and practices, acceptable to the Fund and the World Bank.


where applicable: members of the consortium/partners) shall timely provide for the funds for co-

financing and for implementation of the project from other private sources, independent from the

Fund, as determined in the Agreement for Awarding Funds.


where applicable: members of the consortium/partners) shall use the approved finances in accordance

with the budget approved by the Fund and shall maintain a financial reporting system in accordance

with international accounting standards.

In case the project proposal is approved, I confirm that the the applicant, on request by the Fund, shall

provide conditions for the persons assigned by the Fund to inspect the implementing of the project, its

activities and achieved results and shall allow for an independent auditor assigned by the Fund to audit

the project documents and the financial operations in accordance with international accounting

standards.

If the project is successful, I confirm that the applicant shall pay royalties to the Fund, principal,

interest and/or revenues from investments, as defined under the Agreement for Awarding Funds.

7. Intellectual Property

I confirm that in case the feasibility and the implementation of the project that I am applying with is

dependent on already existing IP rights, I shall submit proof (a licensing agreement and other

agreement, in-kind agreement for revenues, options or obligations etc.) to the Fund that shall confirm

that the applicant (for the instruments where applicable: the members of the consortium/partners) has

the right to use, have at disposal, access or the right to commercialise the technology being developed

and the created product or service.

I confirm that any IP and "know-how" that result in the course of project implementation or as a

project result, shall belong to the applicant (with the exception of cases where an agreement for co-

operation with a higher education, i.e. scientific-research institution is signed) and that the applicant

shall undertake all the necessary actions to protect and commercialise the IP which results from the

project implementation.

Regarding the support instrument Co-financed Grants for Establishing, Operating and Investing of

Business-Technology Accelerators, I confirm that the IP rights which result during project

implementation or as a project result shall belong to the beneficiary of the accelerator and that the

accelerator and beneficiary alike shall take all the necessary activities for IP protection and for

commercialisation of the IP which results from the project implementation.

I confirm that the IP subject of the project proposal does not consciously and intentionally violate the

IP of any third party.

The Fund shall not be held liable in case of any dispute related to IP rights. I understand that the

applicant (for the instruments where applicable: members of the consortium/partners) shall regulate its

IP rights with third parties before submitting the project proposal and during project impelemtation.

8. Procurement


where applicable: members of the consortium/partners) shall carry out the procurement of goods and

consulting services as defined in the project proposal, applying the procurement standards and practices

acceptable for the Word Bank, in accordance with the "Guidelines: Selecting and Engaging Loan

Consultants from the World Bank" from January 2011 and the "Guidelines for Procurement of Goods,

Works and Non-Consulting Services under World Bank Loans and IDA Credits and Grants by World

Bank Borrowers" from January 2011, which shall ensure that the funds shall be used only for

procurement of the goods and consulting services necessary for the project implementation in the most

economic, efficient and transparent manner.

I agree that the applicant (for the instruments where applicable: members of the consortium/partners)

shall ensure that no agreement is signed with a company deemed ineligible by the World Bank for the

activities financed by the Fund. Also, the agreements between the applicant (for the instruments where

applicable: members of the consortium/partners) and the suppliers and consultants shall contain the

standard clauses on fraud and corruption of the World Bank, as well as the standard audit clause.

9. Environment


shall adhere to all legal provisions on environmental protection of the Republic of Macedonia, as well

as to the rules regulated by the World Bank. The applicant (for the instruments where applicable:

members of the consortium/partners) shall compensate any caused damage and shall protect the Fund in

case the Fund suffers any loss due to violation of the laws on environmental protection.

10. Corruption and Fraudulent Behaviour


shall comply with the Law on Corruption Prevention and all other applicable legal provisions of the

Republic of Macedonia, as well as the Anti-corruption Guidelines of the World Band for Preventing

and Fighting Fraud and Corruption in Projects Financed with World Bank Loans and Credits and

Grants of the International Development Association" from 15 October 2006, revised in January 2011,

in the process of project application, evaluation and implementation,

11. Statement for Acceptance of the Rulebook on Management of the Support Instruments of the

Fund for Innovations and Technology Development and the rulebook on the respective support

instrument

I hereby sign this statement and confirm, under full material and criminal liability, that the applicant

(for the instruments where applicable: the member of the consortium/partners) is fully aware and

agrees with the content of the Rulebook on Managing the Instruments of the Fund for Innovations and

Technology Development, as well as with the content of the rulebook on the support instrument under

which he/we is/are applying, that the applicant understands all provisions, including the Fund's

Rulebook on Preventing Conflicts of Interest and for Protection of Confidential Data, and that the

applicant shall comply with them and agrees with their application.

Skopje, (date)

Statement given by:

Signature of the authorised representative and stamp

23

Grading Project

proposal no. Name of Applicant Received

points Comment

(not compulsory) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Annex 2 - List of assessed project proposals

CALL

NUMBER

INSTRUMEN

T

Date:

Documents

RULEBOOK ON MANAGEMENT OF THE SUPPORT … · World Bank and Credits and Grants from the International Development Association on Behalf of ... World Bank Pollution Prevention and