Application period: July 27 – October 3, 2023.
Total budget: BGN 180 000 000
The current procedure is in implementation of the investment “Economic Transformation Program” to the “Intelligent Industry” component of the National Recovery and Resilience Plan.
The purpose of the procedure is to contribute to the acceleration of the transition to a circular economy by providing grants to enterprises of the C sector “Processing industry” to introduce circular models for the use of resources and the implementation of climate-neutral production methods and technologies and consumption of the products of their activity.
Eligible candidates:
1) To be merchants within the meaning of the Commercial Law or the Law on Cooperatives or to be an equivalent entity within the meaning of the legislation of a member state of the European Economic Area.
2) To be registered no later than 31.12.2020.
3) To be micro, small and medium-sized enterprises within the meaning of Art. 3 and Art. 4 of the Law on Small and Medium Enterprises and Annex I to Regulation (EU) No. 651/2014 of the Commission regarding the definition of micro, small and medium enterprises or being large enterprises.
4) To have realized net sales revenue for 2022 financial year depending on the category of the candidate enterprise, as follows:
- for micro enterprises ≥ BGN 170,000.
- for small enterprises ≥ BGN 550,000.
- for medium-sized enterprises ≥ BGN 950,000.
- for large enterprises ≥ BGN 3,000,000.
5) To apply for support for their main economic activity or an additional economic activity that forms no less than 20% of their net sales revenue for 2022 in sector C “Processing industry” according to the Classification of Economic Activities (KID-2008).
Eligible partners:
According to the current procedure, candidates can participate alone or together with partners. ONLY ONE partner can participate in one proposal, which meets all the eligibility criteria of the candidates.
IMPORTANT: An enterprise is allowed to participate as a partner in only one investment proposal under the procedure. In addition, an enterprise is eligible to participate in ONLY ONE proposal – either as a candidate or as a partner.
Eligible activities:
Acquisition of new technologies for introducing circular models in enterprises in one or more of the following areas
- Reducing the generation of waste by implementing technologies for:
-> preparation for reuse and/or recycling and/or other activities for the processing of waste from the production activity (of the applicant and/or of the partner, in case the proposal is implemented in partnership) and their subsequent input as raw material in production processes, and/ or
-> reduction of the amount of waste generated during the production of a unit of product from the activity for which support has been applied for, and/or
-> reduction of the raw materials used for the production of a unit of product (the amount of raw materials used for the production of a unit of product and/or reduction of the types /number of raw materials used in the final product), which achieves a reduction in the amount of waste generated during the production of a unit of product the activity for which support is requested.
- Limiting the use of single-use plastic products by implementing technologies for:
-> replacing single-use plastic products (including plastic packaging) with alternative products and/or reusable, biodegradable, compostable, bio-based products and packaging, and/or
-> reducing the use of plastic as a raw material put into single-use products and/or packaging, and/or
-> eliminating or limiting the use of plastic packaging, or replacing composite packaging (including plastic) with greener options (biodegradable, recyclable or other “green” packaging).
- Using resources of biological origin by implementing technologies for:
-> input of resources of biological origin (for example, substitution of synthetic raw materials or fossil-based resources with those of biological origin).
- Improving the standards of environmental friendliness of products by implementing technologies for:
-> achieving compliance of the manufactured products with the environmental standards and/or product requirements applicable to them (which at the time of application have not been met), resulting from European and/or national legislation in the field of environmental protection.
- Improving the energy efficiency of products by implementing technologies for:
-> production of products with higher energy efficiency in their use (compared to the energy efficiency of the same product from the activity for which support was requested before the implementation of the relevant technology).
IMPORTANT: Any investment proposal should include the introduction of circular models in at least one of the above areas.
In addition to the mandatory areas, proposals may also include activities in the following area, which is not mandatory, but only supportive of the others:
- Introducing other models of the circular economy by deploying technologies for:
-> using alternative raw materials, including recycled, and/or
-> increasing the use of recyclable raw materials, and/or
-> replacing or increasing the use of reusable raw materials and/or reducing the raw materials used to produce a unit of product (the amount of raw materials used to produce a unit of product and/or reducing the types/number of raw materials used in the final product), and/or
-> eliminating the need for packaging (other than plastic packaging) or replacing composite packaging (which does not contain plastic) with greener options (biodegradable, recyclable or other “green” packaging), and/or
-> replacing or reducing the use of hazardous substances included in the manufactured products, and/or
-> ensuring the multiple or repeated use of existing and/or new products for the enterprise, and/or increasing their durability, and/or
-> provision of opportunities for modernization and repair of products – repair/replacement of damaged parts and/or components with a view to increasing the durability of use of the products, and/or
-> increasing the possibilities of recycling the products after their use, including the possibilities of disassembly at the end of the life cycle in order to facilitate the recycling or recovery of the waste of the products after their end-of-use.
Eligible expenses:
- Costs for the acquisition of machinery, plant and equipment, representing tangible fixed assets;
- Costs for the acquisition of specialized software for the production process, representing a long-term intangible asset – allowable in the amount of up to 50% of the total allowable costs for the relevant candidate/partner (for all categories of enterprises – micro, small, medium and large enterprises).
Amount of the grant:
- minimum amount of the grant: BGN 70 000.
- maximum amount of the grant according to the category of the candidate enterprise:
-> for micro enterprises – BGN 350 000.
-> for small enterprises – BGN 550 000.
-> for medium-sized enterprises – BGN 750 000.
-> for large enterprises – BGN 1 000 000.
IMPORTANT: In case the investment is carried out in partnership, the partner’s total eligible expenses should be up to 30% of the total allowable costs under the proposal, but not more than BGN 273 816.
Additionally, the maximum amount of the grant funding under individual proposals should NOT exceed:
- for micro enterprises – 90% of the average annual net sales revenue of the applicant enterprise for the three-year period 2020, 2021 and 2022.
- for small enterprises – 60% of the average annual net sales revenue of the applicant enterprise for the three-year period 2020, 2021 and 2022.
- for medium-sized enterprises – 30% of the average annual net sales revenue of the applicant enterprise for the three-year period 2020, 2021 and 2022.
- for large enterprises – 20% of the average annual net sales revenue of the applicant enterprise for the three-year period 2020, 2021 and 2022.
Percentage of funding:
- Maximum intensity of aid under the selected regime “regional investment aid” for activities outside the southwest region (NUTS-2):
-> micro, small and medium enterprises – 50%
-> large enterprises – 35%
- Maximum intensity of aid under the selected regime “regional investment aid” for activities in the southwest region (NUTS-2):
-> micro and small enterprises – Sofia city (capital): 40%; Sofia region: 50%; Blagoevgrad District: 50%; Pernik District: 40%; Kyustendil Region: 45%
-> medium-sized enterprises – Sofia city (capital): 30%; Sofia region: 50%; Blagoevgrad District: 50%; Pernik District: 30%; Kyustendil Region: 35%
-> large enterprises – Sofia city (capital) and Pernik Region: 20%; Sofia Region, Blagoevgrad Region and Kyustendil Region: 25%
- Maximum intensity (percentage) of grant funding under the “de minimis” regime selected:
-> micro, small and medium enterprises – 50%
-> large enterprises – 35%
IMPORTANT: Applicants can choose only ONE of the two admissible regimes – the “regional investment aid” regime or the “de minimis” regime, depending on their needs and the specifics of the investment proposals.
Duration of projects: up to 18 months
For consultation on eligibility, required documents and assistance in applying under this procedure, please contact our team of professionals: www.tetra-solutions.eu/en/contact/.