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Most Frequented Questions on IPARD II

FAQ: Part one

What is IPARD?

IPARD is the EU and State Budget funded program to assist Albanian agriculture. IPARD provides grants for farmers based on applications that farmers make. Applications should be for investments that the program supports, within the deadlines, rules and application criteria, according to each call for applications.

What are the measures supported by IPARD ?

IPARD Program has three measures for which can be applied:
Measure 1: “Investing in physical assets in agricultural farms”
Measure 3: “Investment in physical assets for the processing and marketing of agricultural and fishery products”
Measure 7: “Farm diversification and business development”

May I apply for more than 2 different investments?

If the application includes different investments within a sector then it can be applied, eg investments in the fruit and vegetable sector. It is not acceptable If the application foresees investments in different measures and sectors.

When can be applied for IPARD?

It can be applied from 30.11.2018 to 30.01.2019.for first call.

How to apply?

You can apply with closed envelopes delivered within the respective application deadlines, to ARDA , by mail or hand. , We advise you, for your safety,to submit your application by hand at Str. Muhamet Gjollesha No. 56.

I have just done an investment in agriculture, can I benefit?

NO, according to the IPARD program, investments can start only after signing the financial support contract with ARDA. Investments that are not contracted can not be funded.

I took a support from National Schemes, can I apply for IPARD?

Yes, you can apply, but support can not be given for once funded investmet from any public funding scheme.

What documentation I need and who can prepare the file of application?

1. You can prepare the application yourself. Information on the documents you need, permissible investments and support measures can be found at http://azhbr.gov.al/programi-per-bujqesine-dhe — zhvollimin -rural-ipard-ii/
2. Private consultancy companies provide support services to farmers in the preparation of application files.
3. For additional information you can contact ARDA at tel. 0800 83 83
and email address: info@azhbr.gov.al

How is the grant paid?

The grant is paid in an installment after the completion of the investment (project) and payment of the investment costs by the beneficiary.

How much money can be earned from an application?

There is a minimum and maximum of eligible costs for each measure and consequently the grant is linked, depending on these costs. More detailed information can be found in the Guidelines for Applicants, which will be available at http://azhbr.gov.al/programi-per-bujqesine-dhe-zhvillimin -rural-ipard-ii/

How much time shall I have for realizing the investment?

The planned investment (project) implementation period will be determined in the individual grant contract between ARDA and beneficiaries.

Do I have to meet a certain standard for benifiting a grant?

It is mandatory to meet the minimum national standards and EU standards in each investment, according to the respective measures and sectors.
Institutions that will deal with the issuance of standards documentation are: environmental protection (National Environmental Agency), public health (National Food Authority), animal welfare (veterinary service) and protection at workplaces ( Labor Inspectorate). The national minimum standards from the beneficiary will be met at the end of the project and the investment will reach EU standards no later than before the last payment.

What investment can I apply for?

You will find , with the publication of Guidaline for Applicants an Eligible Expenditures Schedule detailing the investment you may apply.

FAQ: Part two

Which is the documentation of ownership accepted by the program?

Documentation of ownership required is:

  • Photocopy of the Certificate of Ownership issued by Immovable Property Registration Officeaccompanied by an indicative map and plan showing the ownership of the land and the building(s)inwhich investment will be carried out.
  • Photocopy of Certificate of Ownership issued by Immovable Property Registration Office accompanied with the indicative map, property card, and plan of land and building(s) ownership in which the investment will be carried out, or a notarized copy of the lease contract with the minimum duration of at least 10 years after the date of application with notarial verification.
  • Photocopy of a  Certificate of Ownership ssued by the Immovable Property Registration Office accompanied by indicative map,property card and plan and registered plan of land where is presented the ownership of the land and the building(s) for the leased person.

Are start-ups allowed in IPARD?

It is not forbidden to apply for start-ups, as long as all requirements and criteriasof program.are met

When applying for aromatic medicinal plants at what measure should we applyfor 1, 3 or 7?

Applications that are made for medicinal plants should be applied at measure 7.

How is the application possible, If the applicant has no experience in the field of agriculture for 3 years?

You must submit:

The original certificate issued by the Regional Agriculture Directorate certifying that the applicant  has three years of working experience n the field of agriculture for the investment he carries out, or statement that the applicant will  undertake a professional training of 50 hours of training in the relevant sector before final payment.

Who is the beneficiary investor of IPARD programin cases of application as UFA, itsmembers or UFA itself?

If you apply as UFA, the beneficiary is UFA itself, according to the application made.

If I have purchased tractor or mechanical tools from other programs including IPARD-like,can I apply for IPARD?

Yes you can apply for PARD. If you apply for the same type of investment you must carefully argue why the renovation is needed.

Who are the experts towhom should we address to do the required documentation?

Various private sector experts who provide this service. Expenditures on expertise of documentation preparation are allowed, according to the spending limits set out in the Annex6.

If I have benefited from national schemes, can I apply for IPARD?

You  can apply, but not for the same investment

Will the investor cover up the expenses of investment and after that receives the reimbursement?

Investment, after the contract signing, shall  be made100% with the applicant’s funds, in accordance with contractual terms and  then based on the request for payment, after the completion of investment the payment of the grant is made.

Is it obligatory to have 3 Offers for realizing investments or purchasing equipment?

There must be three offers for each proposed investment.

How many applications are allowed within one measure?

It is allowed only one application within the same measurebut it should also be within one sectorof the measure.

Are there allowed applications in different measures at the same time?

Yes, it can be applied in two different measures with two separate applications.

Is it acceptable, in measure 7, investmentfor a restaurant,or should it be accompanied by other investments and should it be close to the farm?

Investment, in measure 7, for a restaurant is allowed but must be inside farm.

The aid intensity for measure 1 goes from 60% to 65% and 70%. To go to 70% should there be fulfilled the conditions of both young farmer and mountainous area?

The aid intensity for measure 1 goes up to 70%, if the applicant is in the mountainous area or if the applicant is under the age of 40, so he is a young farmer at the moment of contracting.

Does ARDA have an agreement with the Technical Bodies and other institutions needed to issue certificates during the process?

ARDA has agreements with all institutions that issue documents for standards to be fulfilled, required by the program.

Investment implementation periodin slides deadline is 6 months, or will be implemented council regulation?

The realization period will depend from investment and will be determined in the contract, by type of investment and declaration of the applicant.Period of realization 6 months.in the presentation is given  as an illustration.

Will ARDA subsidize me if I take a loan, for expenses related to bank costs?

No, bank costs are not eligible costs, according to Annex 6 of the program.

When a company supplies agricultural equipment in retail outlets, in the case of presentation of offers.Is the offer valid if you takethese items both from the retail outlets and from the main company?

Offers should not be fictitious and there should not be a conflict of interest between bidding companies.

Which are institutions that give usage and explotation permitsconcerning point – irrigation?

You must refer to Law no. 111/2012 ON INTEGRATED WATER RESOURCE MANAGEMENT for permissions of usage and explotationof water.

Is Amount of 200 hl for being producted or sold in measure 3 for the wine sector?

Production capacity should be not less than 200 hl

Will there be a subsidy for heads (animals)?

Subsidies for heads(animals) are not acceptable.

As regardsto the calculation of the turnover level, which in measure 3 and 7 is adisqualifying criteria (eg.EUR 5 million formeasure 3 and EUR 1 million for measure 7), there is also a statement that required partner or related companies, this counts for companies that are out of Albania or within the territory of Albania.

All partner and related  companies inside and outside the country are included in calculating the size of the company according to Annex 4 of the program. Definition of partner and related companies is determined by EU legislation:

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32003H0361

Can a foreign citizen apply, or should he necessarily be an Albanian citizen?

The investment must be in Albania, regardless of the applicant’s statehood.

How will the exchange rate for equipment purchased outside Albania be calculated?

The calculation of the exchange rate will be according to European Commission rate, taking as a basis the month before the opening of the call for applications. The information is on the site:

http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/index_en.cfm

Please confirm whether there are acceptable for the IPARD II Program, agricultural equipments(Tractors) that originate from America (USA), for investments that do notexceed 100,000 euros?

For the origin of eligible places for purchased equipments, please read carefully.Chapter 5. Rules for Eligible Expenditures in Applicant Guideline as well as Annex 9: List of  Eligible Countries of Origin.

Are investments in slaughterhouse eligible and what are thecriteriasto benefit?

Regarding the type of investment you are writing to, we can say that investment in the slaughterhouse(Construction and / or reconstruction of facilities and / or lines, equipments, machinery etc.) is acceptablein the IPARD II program.

Support will be given for the construction / rehabilitation of no more than two slaughterhouses for each NUTS II regions (Districts)

How much time is needed for certificate of the payment of social security (for the year when the application is made or for the last 3 years)? What is in the case when the farmer is astart-up?

An Original Certificate is required to prove that the applicant has met the tax payment obligations (social contributions, health contributions issued by the Tax Office for natural and legal  personsor by the Social Insurance Institute for individual farmers no earlier than 30 days before submitting the application. Certificate must also be submitted for farmers /natural or legal persons that are start-ups.

FAQ - Part three

Can an applicant be a retired person?

The IPARD II program does not have age limitation criterion.

Is there required an environmental statement, in cases of new sowing investment?

Each project should be analyzed in relation to national and European standards as appropriate. Technical bodies will confirm whether investment / legislation requires or not the fulfillment of standards. Each project should be analyzed in connection with the minimum national standardsto be achieved by the enterprise at the end of the investmet, before submitting an application to the IPARD Agency. Institutionswhich will deal with the issuance of standards documentation are with regard to environmental protection(National Environmental Agency), public health (National Food Authority), the welfare ofanimals (Veterinary Service) and protection at workplaces, (Labor Inspectorate).

Can a non-agricultural business apply, in Measure 7, (eg. business that produces plastic packagings for dairy processing units), for solar panels being installed in a higher capacity than business needs?

No,it can not be  applied, as in this case the applicant is eligible but the investment is not acceptable. Private entities that are located outside the rural areas may also apply for Measure 7, if the investments for which support is sought will be carried out in rural areas but the investment should be in accordance with the eligible expenditures which are listed in ANNEX 6  List of Eligible Expenditures. It is acceptable for this measure to invest in renewable energy not in the function of the enterprise / farm but to be considered a separate investment.

Can there be little more information or orientation regarding permissible investments in the snail breeding sector?

You should consult ANNEX 6 List of Eligible Expenditures for eligible investments. There are listed in this document,according to measures and sectors all expenditures which are considered eligible under the IPARD II program

Can the land be rented?

use of at least10 years since the submission date of the application. The documentation that meets this criterion is:

– A photocopy of ownership certificate issued by the Immovable Property Registration Office on the land and building (s) where the investment will be carried out accompanied by indicative map, property card and layout (sketches), or

– photocopy of the lease contract with a term of at least 10 years after the date of application, notarized and

– Photocopy of the Certificate of Ownership issued by the Immovable Property Registration Office  on land and building  (s) of persons who have leased the land and building (s), accompanied by indicative map, property card and layout (sketches) of the title of registered property.

Can I apply as a start-up with the status of UFA for Measure 7 "Investment in Agrotourism"? How will effectiveness be assessed?

You can apply and in this case the applicant must submit a technical proposal project  or a business plan that proves the economic profitability at the end of the realization of the investment.

Can a company that produces animal food apply in measure 7 for aquaculture sector for the production of fish food?

The purpose of the sector is to create new farms or to expand farm production of  existing aquaculture capacities. IPARD II program, in this context supports investments under the ANNEX 6 List of Eligible Expenditures that are / will be developed in existing aquaculture farms.Thus, investments that are / will be developed outside aquaculture farms are not acceptable.