Taotlus

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PROJECT APPLICATION FORM

Project identification Project title Improving sewage treatment in Setomaa WWTPs

Project Acronym SetoWWTP

Project number ER274

Programme thematic objective TO 6 Environmental protection, climate change mitigation and adaptation

Programme specific area Improving the quality of shared water assets by reducing their pollution load

Name of the lead partner organisation/original language Setomaa Haldus OÜ

Name of the lead partner organisation/English Setomaa Management Ltd.

Project duration in months 6 months 0 days

Start date 30.06.2023

End date 29.12.2023

Date of submission 02.02.2023

Project summary Please give a short overview of the project and describe:

the common challenge of the programme area you are jointly tackling in your project; the overall objective of the project and the expected change your project will make to the current situation; the main outputs you will produce and who will benefit from them; the approach you plan to take and why is cross-border approach needed; what is new/original about it?

Please note that, in case of approval, parts of this summary will be published on the programme's web site. It should be clear, easily readable, self-explanatory and without references to other parts of the application form and other

documents.

Please pay attention that all the questions are answered!

The project is focused to improving the quality of shared water assets by means of improving waste water treatment facilities in Setomaa. Setomaa municipality is borderland area, lying right next to Russia. The overall goal is to accomplish wastewater treatment plant reconstruction both in Saatse and Obinitsa villages. The project will rise sewage treatment standard in Saatse WWTP by introducing additional ditch as additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. Investment will also contribute to preserving habitat of pond frog (Pelophylax lessonae, under protection, III category), further minimising pollution load to habitat area. The reconstruction of Obinitsa WWTP will contribute to minimising pollution load, as new WWTP will be more energy-efficient and strictly dimensioned to needs of existing sewage volume. The reconstruction will include construction of new maintenance building, electricity and automation systems, technical equipment, new sewage tank and accompanying pipes. Old WWTP building structures will be demolished.  Overall number of direct beneficiaries will be 186 inhabitants in total, living in both villages (Saatse - 52, Obinitsa - 134). Overall target of the project is to preserve natural environment, by applying significantly higher sewage treatment level than previously in order to reduce effluent and sediments outflow to nature.      

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Programme Co-financing (based on information filled in sections Partners and Partner budget)

Partner Programme co-financing Contribution

Total eligible Partner Partner

abbreviation Country EE-RU CBC EE-RU CBC

co-financing( %)

Percentage of total EE-RU

CBC

Public contribution

Private contribution

Total contribution

Setomaa Haldus OÜ SetoHaldus EESTI 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Subtotal for partners inside 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Subtotal for partners outside 0,00 --- 0,00 % 0,00 0,00 0,00 0,00

Total 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Programme output indicators and your contribution

Programme output indicators and your contribution (based on information filled in the Work package list section) Programme output indicators Project's target (total) Measurement unit Project's targets Output code

The number of projects that are related to the purification of common water assets 2,00 Number

1,00 I1.1.1

1,00 I1.2.1

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PROJECT PARTNERS

Partner list

Number Name Region Inside programme area

Abbreviation Role Associated to

1 Setomaa Haldus OÜ Lõuna-Eesti Yes SetoHaldus LP

2 Setomaa vald Lõuna-Eesti Yes AP Setomaa Haldus OÜ

Partnership Description

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Project partners

Project partner 1 Partner role in the project LP

Name of organisation in original language Setomaa Haldus OÜ

Name of organisation in English Setomaa Management Ltd.

Abbreviation of organisation SetoHaldus

Department/unit/division N/A

Address Area EESTI (EE)

Country Eesti (EE00)

Region Lõuna-Eesti (EE008)

Postal code 64001

City Värska

Street Pikk

House number 30

Homepage https://setomaa.kovtp.ee/setomaahaldus

Legal and Financial Information

Type of Partner Other bodies that are governed by public legal acts, (e.g., municipal and national enterprises, trade unions, medical institutions, museums, etc.)

Legal status private

Co-financing rate (%) 90.00

Is your organisation entitled to recover VAT based on national legislation for the activities implemented in the project? Yes

VAT Number EE100001598

Registration number

Legal Representative First name Raul

Last name Lepp

E-mail address [email protected]

Phone number 5183557

Contact Person First name RAUL

Last name ALTNURME

E-mail address [email protected]

Phone number 56451976

Experiences of partner Which are the organisation’s experiences and thematic competences and experiences relevant for the project?

Setomaa Haldus OÜ is the water enterprise of Setomaa municipality, which ownership belongs 100 % to Setomaa municipality. Setomaa Haldus is also providing in addition to water and wastewater services other communal services as planting and landscaping, incl. management of graveyards. Setomaa Haldus OÜ will be the key actor in implementing the project, carrying out the project activities. Enterprise have previous experience in carrying out investment projects in water and wastewater sector.

Benefit What is the benefit for the organisation from participating in the project?

Benefit for the organisation will be opportunity to carry out significant investment program related to WWTPs, which will be not possible without additional grant.

Other projects Please describe the organisation’s experience (if any) in participating in and/or managing international/EU co-financed projects/ national projects or other projects.

Setomaa Haldus OÜ has been established at the end of 2018 by merging of different smaller enterprises (OÜ Katel, OÜ Meremäe Vesi and OÜ Verska Calor) after municipal administrative reform, which created also Setomaa municipality. New enterprice has not yet carried out projects financed by national or EU donors.

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Associated partner 2 Partner role in the project AP

Name of organisation in original language Setomaa vald

Name of organisation in English Setomaa municipality

Associated to partner Setomaa Haldus OÜ

Address Area EESTI (EE)

Country Eesti (EE00)

Region Lõuna-Eesti (EE008)

Postal code 64001

City Värska

Street Pikk

House number 12

Legal Representative First name Raul

Last name Kudre

E-mail address [email protected]

Phone number 7964733

Contact Person First name Lauri

Last name Saar

E-mail address [email protected]

Phone number 5204526

Role Partner's role in the project

Role of the Setomaa municipality is to participate in dissemination of information about project objectives, activities and output. The main channel for media and communication is municipal website, from where public will be informed. Also ensuring adequate visibility of EU financing will be accomplished together with municipality, as suitable spots for construction billboards will be on public land. Municipality is carrying out also compulsory legal tasks - such as issuing building permit for reconstruction of Obinitsa WWTP. Therefore smooth communication between involved parties and observing needs of the project will be key factors for success of the project.

What is the benefit for the organisation from participating in the project?

The main benefit for the organisation is rising standards of environmental protection in the Setomaa municipality via implementing better practices of sewage treatment. As the overall level of sewage treatment in those villages is rising, thus also the benefits will be disseminated to wider public.

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PROJECT DESCRIPTION

Project relevance Cross-border Challenge

What are the common cross-border challenges that will be tackled by the project?

Please describe the relevance of your project for the programme area in terms of common challenges and/or joint assets addressed?

The project is focused to improving the quality of shared water assets by means of improving waste water treatment facilities in Setomaa. Setomaa municipality is borderland area, lying right next to Russia in mainland Estonia. Project covers wastewater treatment of two villages - Saatse and Obinitsa. One of them - Saatse is situating just 1 kilometre from Estonian- Russian border and local road from municipal capital Värska to Saatse is going through Russia, where entry is permitted only to vehicles and stopping is prohibited. This has generated quite unique context for managing water resources and sewage treatment, as geographical context is evident in daily management of utilities. Obinitsa is situating also in border area, around 3-4 kilometres from the border. 

Project approach

What is the project's approach in addressing these common challenges and/or joint assets and what is new about the approach the project takes?

Please describe new solutions that will be developed during the project and/or existing solutions that will be adopted and implemented during the project lifetime and in what way the approach goes beyond existing practice in the sector/programme area/participating countries.

The overall goal of the project is to accomplish wastewater treatment plant reconstruction both in Saatse and Obinitsa villages. The project will rise sewage treatment standard in Saatse WWTP by introducing additional ditch as additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. Investment will also contribute to preserving habitat of pond frog (Pelophylax lessonae, under protection, III category), further minimising pollution load to habitat area. The reconstruction of Obinitsa WWTP will contribute to minimising pollution load, as new WWTP will be more energy-efficient and strictly dimensioned to needs of existing sewage volume. The reconstruction will include construction of new maintenance building, electricity and automation systems, technical equipment, new sewage tank and accompanying pipes. Old WWTP building structures will be demolished.  Overall number of direct beneficiaries will be 186 inhabitants in total, living in both villages (Saatse - 52, Obinitsa - 134). Overall target of the project is to preserve natural environment, by reducing effluent and sediments outflow to nature at significantly higher treatment level than previously.

Cooperation Reason

Why is cross-border cooperation needed to achieve the projects objectives and result?

Please explain why the project goals cannot be efficiently reached acting only on a national/regional/local level and/or describe what benefits the project partners/target groups/project area gain in taking a cross-border approach.

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Project focus Programme TO (thematic objective) specific area Improving the quality of shared water assets by reducing their pollution load

Project Main Overall Objective

What is the main overall objective of the project and how does it link to the programme objective? Specify one project main objective and describe its contribution to the programme priority specific objective.

Main objective of the project is reducing effluent and sediments outflow to nature and protecting shared water assets via significantly higher wastewater treatment level in Saatse and Obinitsa villages.

Programme Result Indicator

Select one programme result indicator your project will contribute to.

Increased capacity in environmental protection for joint water assets

Project Main Result

What are the project main results and how do they link to the programme result indicator? Specify your one or more projects main results and describe their contribution to the programme result indicator.

The main result of the project are two reconstructed WWTP`s in borderland area of Estonia, which contribute to reduction of pollution load of water bodies.

Project Specific Objectives

Which are the specific objectives the project will be working towards? Define max. 3 project specific objectives.

Please provide a short explanation on the defined specific objectives

Project specific objective Short explanation of the defined specific objective

Project context Project Context How does the project contribute to wider strategies and policies? Please describe the project`s contribution to relevant strategies and policies; in particular, those concerning the project or programme area.

The project will contribute to achieving goals of the municipal water and wastewater development plan for the period 2023-2035. The new development plan of the water and wastewater of Setomaa municipality is in the consultation phase with relevant state authorities and will be adopted by the municipal council on March 2023 at latest.

Synergies What are the synergies with other past or current EU and other -projects or EU-initiatives the project makes use of?

The focus on reconstructing WWTP`s is contributing to the overall strategy of European Union to help Estonia in achieving higher environmental standards via appropriate wastewater treatment plants and new water purification plants. In 2014-2020 EU financing framework period over 115 million euros were allocated to water and wastewater projects in Estonia, according to Environmental Investment Centre - reference - https://www.kik.ee/et/projektid?area[]=281&funding_source[]=327&application_round[]=366&items_per_page=20 . However - water and wastewater projects in smaller settlements of Estonia are still in need for investments. This is evident especially in border area, where population density and socio-economic situation is not comparable to bigger towns or capital area of Tallinn. Therefore this project has clear catalytic effect of implementing higher environmental standards in wastewater treatment in less developed border areas of Estonia.

Knowledge How does the project make use of building available knowledge? Please describe the experiences/lessons learned from previously funded EU projects the project draws on, and other available knowledge the project capitalises on.

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Horizontal principles (cross-cutting issues) Please indicate which type of contribution to horizontal principles applies to the project, and justify the choice.

Horizontal principles Type of contribution Description of the contribution

Sustainable development (environment) positive

The project has clear positive impact on sustainable development, as it contributes to environmental protection via minimizing pollution load from sewage. Also it promotes energy-saving as new technologies implemented for sewage treatment are more energy-efficient than in the past.

Equal opportunity and non-discrimination neutral The project has neutral impact on equal opportunity and non-discrimination.

Equality between men and women neutral The project has neutral impact on equality between men and women.

HIV prevention neutral The project has neutral impact on HIV prevention.

Project risks

Risk 1 Start date End date Risk impact Risk likelihood

01.05.2023 30.06.2023 medium not likely

Legal problems with construction tender

Risk description

The main project risk is related to carrying out construction tender in smooth manner, as this can affect the actual construction period on the second half of the year. Possible legal challanges during or after tender can affect implementation of the project.

Risk mitigation

The risk will be mitigated through carrying out construction tender before start of the project (starting in May) and thus this risk is minimised. Project implementation period - 6 months - is sufficient for carrying out proposed works.

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WORK PLAN

Work plan per work packages

Preparation

WP Nr WP Title WP Start date WP End date WP Budget P Preparation 01.2023 01.2023 0,00

Summary description and objective of the work package including explanation of how partners will be involved (who will do what)

Project preparation costs are covered as ineligible costs and are not indicated in the budget.

Management

WP Nr WP Title WP Start date WP End date WP Budget M Management 06.2023 12.2023 12 000,00

WP responsible partner Setomaa Haldus OÜ

Partner involvement

Partners involved Name: Setomaa Management Ltd. Role: LP

Describe how the management on the strategic and operational level will be carried out in the project, specifically:

structure, responsibilities, procedures for the day-to-day management and co-ordination communication within the partnership reporting and evaluation procedures risk and quality management Indicate whether the management is foreseen to be externalised

The project management is carried out by external project manager, who has in-depth expertise in carrying out tenders in the field of water and wastewater infrastructure for 20 years. Project manager is reponsible to manager of water enterprise on the day-to-day basis, who has supervision authority over management of the project. Manager of water company is subsequently held responsible to the board of the Setomaa Haldus Ltd. Project management costs will be covered by the water enterprise itself. In additon to that, owner´s supervision services for construction will be purchased by competitive tendering for reconstruction of WWTPs under the project. Subsequent budget line has been therefore indicated. As competent specialists are hired for carrying out key services, management risks have been mitigated.

Please describe activities and outputs of each activity within the work package

Activity Number Activity Title Activity Start Date Activity End Date

Activity M.1 Project management and owner´s supervision services 06.2023 12.2023

Project management and owner´s supervision services are carried out during project eligibility period (June 2023-Dec. 2023). The project management is carried out by external project manager, whose costs are covered by water company as ineligible costs due to fact that the activities start before eligibility period of the project. Owner´s supervision services are included in the project budget as eligible costs and thus these services will be purchased by competitive tendering.

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Investment

WP Nr WP Title WP Start date WP End date WP Budget

I1 Reconstruction of Saatse and Obinitsa WWTPs 06.2023 12.2023 302 000,00

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WP responsible partner Setomaa Management Ltd.

Partner involvement

Partners involved Name: Setomaa Management Ltd. Role: LP

Description and objective of the work package

The overall goal of the project is to accomplish wastewater treatment plant (WWTP) reconstruction both in Saatse and Obinitsa villages. The project will rise sewage treatment standard in Saatse WWTP by introducing additional ditch as an additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. Investment will also contribute to preserving habitat of pond frog (Pelophylax lessonae, under protection, III category), further minimising pollution load to habitat area. The reconstruction of Obinitsa WWTP will contribute to minimising pollution load, as new WWTP will be more energy-efficient and strictly dimensioned to needs of existing sewage volume. The reconstruction will include construction of new maintenance building, electricity and automation systems, technical equipment, new sewage aeration tank and accompanying pipes. Old WWTP building structures will be demolished.  Overall number of direct beneficiaries will be 186 inhabitants in total, living in both villages (Saatse - 52, Obinitsa - 134). Overall target of the project is to preserve natural environment, by reducing effluent and sediments outflow to nature at significantly higher treatment level than previously.

Main objective of the project is reducing effluent and sediments outflow to nature and protecting shared water assets via significantly higher wastewater treatment level in Saatse and Obinitsa villages.  

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Justification Explain the need for investment to achieve project objectives and results. Describe clearly the cross-border relevance of the investment. Describe who is benefiting (e.g. partners, regions, end-users etc.) from this investment and in what way. In case of pilot investment, please clarify which problem it tackles, which findings you expect from it, how it can be replicated and how the experience coming from it will be used for the benefit of the programme area.

Saatse WWTP does not meet effluent quality standards for biological oxygen demand (BOD), chemical oxygen demand (COD) and suspended solids. In last quarters it has been inconsistent with the quality standards set by national legislation - for example in 2021, 3rd quarter: BOD 67 mg/l (required level is 40 mg/l), COD 210 mg/l (required level is 150 mg/l) and suspended solids 130 mg/l (required level is 35 mg/l), which means that norms have been exceeded even for 1,5-4 times. The main deficiency is coming from the fact that water layer of the purification pond is too deep (2 metres) - therefore natural purification of wastewater is inefficient. At the same time configuration of the purification pond doesn`t allow regulation of depth of water layer, because inflow to the pond is in the same vertical height as the outflow pipe. Therefore ditch shall be introduced to the system as additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. In Obinitsa WWTP existing sewage aeration system is deficient for achieving required quality standards in wastewater treatment. Also technical equipment used in WWTP is amortised and does not meet environmental and energy-saving standards. In purification pond sludge has been settled to an extent, where it needs to be removed for re-establishing purification capability. Also electricity and automation systems are amortised and WWTP system needs to be more precisely adapted to the actual pollution load from residents. Therefore WWTP reconstruction will include construction of new maintenance building, installation of electricity and automation systems, technical equipment and setting up new sewage aeration tank with pipes. Old WWTP will be demolished. The direct beneficiaries of the project are residents of the Setomaa area - 186 inhabitants, living in both villages (Saatse - 52, Obinitsa - 134). As it affects directly Lämmijärv - the number of indirect benefiaries is 28 000 in the region.

Location of the investment Location of the physical investment Area: EE, EESTI Country: EE00, Eesti Region: EE008, Lõuna-Eesti

Saatse WWTP is situating in Saatse village, Setomaa municipality, cadastral no. 93401:001:0374 (owner: Setomaa Haldus OÜ) Saatse WWTP is very close to Russian border at proximity of 1,5 kilometres. Obinitsa WWTP is situating in Obinitsa village, Setomaa municipality, cadastral no. 46001:001:0367 (owner: Setomaa Haldus OÜ)

Risks associated with the investment Description of the risks associated with the investment, go/no-go decisions, etc. (if any)

Investment documentation Please list all documents (technical documentation and permissions (e.g. building permits)) relevant to this workpackage and attached to this project application. In case they are already available attach them to this application form, otherwise indicate when do you expect them to be available.

1. Saatse WWTP Detailed Design ("Saatse küla reoveepuhasti järelpuhastuskraav. Põhiprojekt. Keskkond ja Partnerid, Töö nr. 064/2022) 2. Saatse WWTP Building Permit (Ehitusluba 2212271/2018) 3. Saatse WWTP price calculation 4. Obinitsa WWTP Preliminary Design ("Obinitsa küla reoveepuhasti rekonstrueerimine". Keskkond ja Partnerid, Töö nr. 006/2023), incl. price calculation. 5. Ownership documents (for both WWTPs).

Ownership Who owns the site where the investment is located? - Who will retain ownership of the investment at the end of the project? - Who will take care of maintenance of the investment? How will this be done?

Both sites of the investment are owned by Setomaa Haldus OÜ, who is also applicant. Setomaa Haldus OÜ will be also the future owner and operator of the wastewater facilities. Therefore maintenance of the investment will be granted by applicant, who is water enterprise of the Setomaa municipality. The operation costs of the WWTPs will be covered by the wastewater tariffs paid by the end-users in Setomaa.

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Please describe project main outputs that will be delivered based on the activities carried out in this work package. For each project main output a programme output indicator should be chosen. Please note that they need to have the same measurement unit.

Project main output Describe your project main output

Choose a programme indicator to which the project main output will contribute

Measurement unit

Quantify your distribution

I1.1 Reconstructed Saatse WWTP

New ditch has been constructed and all works carried out.

The number of projects that are related to the purification of common water assets

Number 1,00

I1.2 Reconstructed Obinitsa WWTP

New maintenance building, electricity and automation systems, technical equipment and new sewage aeration tank with pipes are in place.

The number of projects that are related to the purification of common water assets

Number 1,00

Target groups per main outputs Who will use the main outputs

Target group involvement

Sustainability of main outputs How will the project main output be further used once the project has ended? Please describe concrete measures (including e.g. institutional structures, financial sources, etc.) taken during and after project implementation to ensure the durability of the project main output. If relevant, please explain who will be responsible and/or the owner of the output.

How will the project ensure that the project outputs are applicable and replicable by other organisations/regions/countries outside of the current partnership? Please describe to what extent it will be possible to transfer the outputs to other organisations/regions/countries outside of the current partnership.

Please describe activities and activity outputs within the work package

Activity Number Activity Title Activity Start Date Activity End Date Activity I1.1 Reconstruction works for Saatse WWTP 06.2023 12.2023

Reconstruction works according to design and building permit attached.

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Activity Number Activity Title Activity Start Date Activity End Date Activity I1.2 Reconstruction works for Obinitsa WWTP 06.2023 12.2023

Reconstruction works according to design and building permit (building permit will be issued in April 2023, after completion of detailed design).

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Communication

WP Nr WP Title WP Start date WP End date WP Budget

C Communication and visibility 06.2023 12.2023 1 000,00

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WP responsible partner Setomaa Management Ltd.

Partner involvement

Partners involved Name: Setomaa Management Ltd. Role: LP

Summary description and objectives of the workpackage including explanation of how will partners be involved of activities carried out and contribution of each partner.

The applicant will be responsible for communication activities and following visibility rules. In this role also Setomaa municipality will provide its input via disseminating information over municipal website and informing local public about project goals, timetable, activities and results. Also information will be given to wider audience in Estonia via Estonian Public Broadcasting (ERR) or nationwide media channels (Postimees, Kanal2 etc.)  EU visibility guidelines will be strictly followed and billboards will be put in place near construction sites, indicating significant financial input from European Union. The role of following visibility guidelines and communication procedures will be part of the responsibilities of the project manager.

Project specific objectives Communication objectives - What can communications do to reach a specific project objective?

Approach/Tactics - How do you plan to reach the communication objective?

Please describe activities and activity outputs within the work package

Activity Number Activity Title Activity Start Date Activity End Date Activity C.1 Start-up activities including communication 06.2023 07.2023

Information about project goals, timetable, activities and expected results will be given via municipal website to local public. Also information will be given to wider audience via Estonian Public Broadcasting (ERR) - potential contact local reporter (Mirjam Mõttus).

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Activity Number Activity Title Activity Start Date Activity End Date Activity C.2 Digital activities 06.2023 12.2023

Information about project goals, timetable, activities and expected results will be given via municipal website to local public.

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Periods

Period number Duration Start Date End Date Reporting Date 0 0 months 02.01.2023 02.01.2023 29.12.2023

1 6 months 30.06.2023 29.12.2023 29.12.2023

Target groups

Target group/-s

Please further specify the target group/s (e.g., bilingual elementary schools, environmental experts, etc.).

Target value Please indicate the size of the target group you will reach.

Infrastructure and (public) service provider

The details of the project will be shared with other infrastructure and public service providers. The target is to reach some 30 public water service providers via sharing information with The Estonian Waterworks Association (EVEL).

30,00

General public

The information about the project will be shared via National Public Broadcasting (ERR) and we reach probably to 300,000 residents of Estonia.

300 000,00

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PROJECT BUDGET

Partner Budget

Name of partner organisation Setomaa Haldus OÜ

Partner ID 1

Legal status private

Type of partner Other bodies that are governed by public legal acts, (e.g., municipal and national enterprises, trade unions, medical institutions, museums, etc.)

Co-financing source EE-RU CBC

Inside programme area yes

Partner Budget Amount Co-financing rate

Programme co-financing 283 500,00 90,00 %

Partner contribution 31 500,00 10,00 %

Partner total eligible budget 315 000,00 100.00 %

Origin of partner contribution (indicative)

Source of contribution Legal status % of total partner contribution Amount

Setomaa Haldus OÜ private 100,00 % 31 500,00

Sub-total public contribution 0,00 % 0,00

Sub-total private contribution 100,00 % 31 500,00

Total 100,00 % 31 500,00

Partner total target value 31 500,00

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Office and administration Description Unit type WP P - preparation

Period No. of units Price per unit Total Period -1 1,00 0,00 0,00

Total 0,00

Office and administration Description Unit type WP C - communication

Period No. of units Price per unit Total Period -1 1,00 0,00 0,00

Total 0,00

External expertise and services Description Unit type WP C - communication

Period No. of units Price per unit Total External expertise and services

Communication services will be purchased as a service for whole duration of the project. Period -1 1,00 0,00 1 000,00

Total 1 000,00

Investment Description Unit type WP P - preparation Period No. of units Price per unit Total

Reconstruction of Saatse WWTP Period -1 1,00 0,00 0,00

Reconstruction of Obinitsa WWTP Period -1 1,00 0,00 0,00

Owner`s Supervision services Period -1 1,00 0,00 0,00

Total 0,00

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Investment Description Unit type WP M - management Period No. of units Price per unit Total

Owner`s Supervision services Separate procurement will be carried out. Period -1 1,00 0,00 12 000,00

Total 12 000,00

Investment Description Unit type WP I1 - investment Period No. of units Price per unit Total

Reconstruction of Saatse WWTP

Separate procurement will be carried out for Saatse WWTP reconstruction. Period -1 1,00 0,00 49 820,00

Reconstruction of Obinitsa WWTP

Separate procurement will be carried out for Obinitsa WWTP reconstruction. Period -1 1,00 0,00 252 180,00

Total 302 000,00

Investment Description Unit type WP C - communication Period No. of units Price per unit Total

Reconstruction of Saatse WWTP Period -1 1,00 0,00 0,00

Total 0,00

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Activities outside the programme area

Please describe and justify the location of activities, which take place outside the eligible programme area.

There are no activities outside the programme territory.

Total budget of activities to be carried out outside the programme area 0,00

Total EE-RU CBC for activities outside 0,00

% of total EE-RU CBC (indicative) 0,00 %

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PROJECT BUDGET OVERVIEW

Project budget per co-financing source (fund) - breakdown per partner

Partner Programme co-financing Contribution Total eligiblePartner

Abbreviation Country EE-RU CBC EE-RU CBC co-financing(%)

Percentage of total EE-RU CBC

Public Contribution

Private Contribution Total Contribution

SetoHaldus EESTI 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Sub-total For Partners Inside 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Sub-total For Partners Outside 0,00 --- 0,00 % 0,00 0,00 0,00 0,00

Total 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Project budget - overview per partner/ per budget line

Partner Abbreviation

Co-financing Source Staff costs Office and

administration

Travel and accommodatio

n

External expertise and

services Equipment Investment Total Budget Net Revenue Total Eligible

SetoHaldus EE-RU CBC 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Total 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 0,00 % 0,00 % 0,31 % 0,00 % 99,68 % 100,00 % 0,00% Of Total Budget

100,00% Of Total Budget

Co-financing Source Staff costs Office and

administration Travel and

accommodation

External expertise and

services Equipment Investment Sum Financed

Budget Decreasing Net

Revenue Total Financed

Budget

EE-RU CBC 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

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Project budget - overview per partner/ per period Partner Abbreviation Co-financing Source Period 0 Period 1 Total Budget Net Revenue Total Eligible

SetoHaldus EE-RU CBC 0,00 0,00 315 000,00 0,00 315 000,00

Total 0,00 0,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 0,00 % 100,00 % 0,00% Of Total Budget 100,00% Of Total Budget

Co-financing Source Period 0 Period 1 Total Financed Budget

EE-RU CBC 0,00 0,00 315 000,00

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Project budget - overview per partner/ per WP Partner

Abbreviation Co-financing

Source WP P WP M WP I1 WP C Total Budget Net Revenue Total Eligible

SetoHaldus EE-RU CBC 0,00 12 000,00 302 000,00 1 000,00 315 000,00 0,00 315 000,00

Total 0,00 12 000,00 302 000,00 1 000,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 3,80 % 95,87 % 0,31 % 100,00 % 0,00% Of Total Budget

100,00% Of Total Budget

Co-financing Source WP P WP M WP I1 WP C Total Financed Budget

EE-RU CBC 0,00 12 000,00 302 000,00 1 000,00 315 000,00

Page 21 of 22

Project budget - overview per WP/ per budget line

WP Number Staff costs Office and administration

Travel and accommodation

External expertise and

services Equipment Investment Total Budget Net Revenue Total Eligible

WP P 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

WP M 0,00 0,00 0,00 0,00 0,00 12 000,00 12 000,00 0,00 12 000,00

WP I1 0,00 0,00 0,00 0,00 0,00 302 000,00 302 000,00 0,00 302 000,00

WP C 0,00 0,00 0,00 1 000,00 0,00 0,00 1 000,00 0,00 1 000,00

Total 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 0,00 % 0,00 % 0,31 % 0,00 % 99,68 % 100,00 % 0,00% Of Total

Budget 100,00% Of Total

Budget

Co-financing Source Staff costs Office and

administration Travel and

accommodation

External expertise and

services Equipment Investment Sum Financed

Budget Decreasing Net

Revenue Total Financed

Budget

EE-RU CBC 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Page 22 of 22

Project budget - overview per WP/ per period WP Number Period 0 Period 1 Total Budget Net Revenue Total Eligible

WP P 0,00 0,00 0,00 0,00 0,00

WP M 0,00 0,00 12 000,00 0,00 12 000,00

WP I1 0,00 0,00 302 000,00 0,00 302 000,00

WP C 0,00 0,00 1 000,00 0,00 1 000,00

Co-financing Source Period 0 Period 1 Total Financed Budget

EE-RU CBC 0,00 0,00 315 000,00

Total EU Funds 0,00 0,00 315 000,00

1

Estonian EU external border programme

2014-2020

Grant Contract

for the implementation of the project (one beneficiary)

ER274 Improving sewage treatment in Setomaa WWTPs

(SetoWWTP)

2

Preamble

This Grant Contract („the Contract“) is concluded between State Shared Service Centre

(registry code 70007340), Lõkke 4, Tallinn 10122, Estonia

acting as the Managing Authority („MA“) of the Estonian EU external border programme

2014-20201 („Programme“) represented by Mrs Külli KAARE, Acting Head of the Managing

Authority

of the one part,

and

Setomaa Management Ltd. (in original language: Setomaa Haldus OÜ) (reg.nr. 10322845,

private body), Pikk 30, Värska 64001, Estonia, represented by Mr Raul LEPP, board

member

Acting as the Lead Beneficiary (the "Beneficiary”)

of the other part,

(the Parties)

have agreed for the implementation of the project ER274 Improving sewage treatment in

Setomaa WWTPs (SetoWWTP) (“the Project”) as follows:

1 In accordance with the Commission Implementing Decision C(2014)7172 the legal name of the Programme is

Estonia-Russia Cross Border Cooperation Programme 2014-2020, however due to suspension of the Financing

Agreement between the European Unioin, the Russian Federation and the Republic of Estonia, and JMC decision

made on 23 May 2022 the Estonia-Russia CBC Programme 2014-2020 is temporary called Estonian EU external

border programme.

3

Article 1 – Legal Framework

1. The Lead Beneficiary shall guarantee that the Project referred to in Article 2 is

implemented and managed in accordance with the following regulations and rules as well

as the horizontal policies of the European Union and national legislation:

1.1 National rules of the Republic of Estonia

1.2 European Union legal acts:

1.2.1 Regulation (EC) No 232/2014 of the European Parliament and of the Council

of 11 March 2014 (ENI Regulation);

1.2.2 Council Regulation (EC, EURATOM) No 966/2012 on the Financial Regulation

that is applicable to the general budget for the European Communities;

1.2.3 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the

protection on the European Communities financial interests;

1.2.4 Regulation No 236/2014 of the European Parliament and of the Council of 11

March 2014 laying down common rules and procedures for the implementation of

the Union’s instruments for financing external action;

1.2.5 Commission Implementing Regulation No 897/2014 of 18 August 2014 laying

down implementing rules for cross-border cooperation programmes financed under

Regulation No 232/2014 of the European Parliament and of the Council laying down

general provisions establishing a European Neighbourhood Instrument

(Implementing Rules);

1.2.6 Regulation (EU) 2016/679 of the European Parliament and of the Council of

27 April 2016 on the protection of natural persons with regard to the processing of

personal data and on the free movement of such data, and repealing Directive

95/46/EC (General Data Protection Regulation).

1.2.7 Regulation (EU) 2022/2192 of the European Parliament and of the Council of

9 November 2022 laying down specific provisions for the 2014-2020 cooperation

programmes supported by the European Neighbourhood Instrument and under the

European territorial cooperation goal, following programme implementation

distruption

1.3 Estonia - Russia Cross Border Cooperation Joint Operational Programme 2014 -

2020 approved by the European Commission on 18 December 2015, decision No

C(2015)9193, last changes approved on 16.12.2020.

1.4 Guidelines for the 6th Call for proposals.

1.5 Project Implementation Guidelines and annexes thereto.

Article 2 — Purpose

2.1 The purpose of this Contract is the award of a grant by the MA for the implementation

of the Project no ER274 entitled: Improving sewage treatment in Setomaa WWTPs

(SetoWWTP) attached as Annex I.

2.2 The Contract is signed in accordance with the decision of the Joint Monitoring

Committee (the “JMC”) of the Programme of 25-26 April 2023 and with the decision of the

MA No 43/2023 to award the grant to the Project.

2.3 The Lead Beneficiary (the “Beneficiary”) will be awarded the grant on the terms and

conditions set out in this Contract and Annex I, which the Beneficiary hereby declares it

has noted and accepted.

2.4 The Beneficiary accepts the grant and undertakes to be responsible for carrying out

the Project.

4

Article 3 — Implementation period of the Project

3.1 This Contract shall enter into force on the date when the second of the two Parties

signs.

3.2 The Project implementation period starts on 30.06.2023 and ends on 29.12.2023.

Starting date of the Project implementation period can be either:

1. the day following that on which the Contract is signed by both the Beneficiary

and MA;

2. a later date agreed in the Contract, but no later than 1 July 2023.

3.3 The execution period of this Contract shall end when the payment of the balance is

made by the MA unless postponed in accordance with Article 18.4 of this Contract.

Article 4 — Financing the Project

4.1 The total eligible costs of the Project are estimated at EUR 315 000,00, as set out in

Annex I.

4.2 The MA undertakes to finance a maximum amount of EUR 283 500,00 from the

Programme budget.

4.3 The grant is further limited to 90% of the total actually incurred eligible cost of the

Project.

4.4 To the activities of the Beneficiay of the Republic of Estonia, the following State aid or

de minimis aid are applicable:

Name of

the

Project

partner

Activity Total cost

of the

activity

(EUR) (incl.

VAT)

Eligible

costs of the

activity

(EUR)

Aid

inte

nsity

(%)

Aid amount

(EUR)

Relevant

State

aid/de

minimis

aid

regulatio

n and

article

Setomaa

Manage

ment

Ltd.

Obinitsa WWTP

reconstruction

302,616.00 252,180.00 90.00 226,962.00 Regulation (EU) No 651/2014, Article 56

Saatse WWTP

reconstruction

59,784.00 49,820.00 90.00 44,838.00 De minis aid

Owner`s

supervision

services

14,400.00 12,000.00 90.00 10,800.00 De minimis aid

Communication 1,200.00 1,000.00 90.00 900.00 Regulation (EU) No 651/2014, Article 56

4.5 On the basis of this Contract the Beneficiary ensures that they may grant indirect de

minimis aid to the participants of Project activities. In this case the Beneficiary collects

data from the receivers of indirect de minimis aid, checks that any new grant of aid does

not exceed the relevant ceiling and informs the undertaking which receives the aid in

writing of the prospective amount of the aid expressed as a gross grant equivalent and of

its de minimis character, making reference to the respective EU regulation and citing its

5

title and publication reference in the Official Journal of the European Union. The Beneficiary

must inform participants of the Project activities about becoming subjects to de minimis

aid before the Project activity takes place.

4.6 The Beneficiary of the public sector of the Republic of Estonia that receives state aid

or de minimis aid above Programme co-financing rate is considered as state aid or de

minimis aid grantors for themself, unless their co-financing comes from external financing,

in a form, which is free of any public support (e.g from other economic activities or loans).

4.7 The flat-rate of eligible indirect costs for the Beneficiary is 0%, as calculated according

to the point 2.5.6.2 of the Implementation Guidelines.

Costs declared under flat-rate shall satisfy the eligibility criteria set out in Article 20.1 and

20.2. They do not need to be backed by accounting or supporting documents.

4.8 The amounts transferred but not used by the Beneficiary have to be returned to the

MA.

Article 5 — Communication with Programme authorities

5.1 Any communication with the Programme authorities related to this Contract shall be

effected via electronic monitoring system (eMS), https://ems.estoniarussia.eu.

Article 6 — Annexes

6.1 The following documents form an integral part of the Contract:

 Latest full Project application with annexes approved by the JMC/MA/JTS and

uploaded in eMS

6.2 In the event of a conflict between the provisions of this Contract and the Annex thereto,

the Contract shall take precedence.

Article 7 — General provisions

General principles

7.1 The Beneficiary and the MA are the only Parties to this Contract.

Data protection

7.2 Any personal data will be processed solely for the purposes of the performance,

management and monitoring of this Contract by the MA and may also be passed to the

bodies charged with monitoring or inspection tasks under the law of the European Union

and, the Republic of Estonia. If the Beneficiary has any queries concerning the processing

of personal data, it shall address them to the MA. The MA and the Beneficiary have to

undertake all measures to fulfil the requirements of EU General Data Protection Regulation

and national legislation. The Beneficiary and the MA will have right of recourse at any time

to the European Data Protection Supervisor.

7.3 The Beneficiary shall ensure that personal data of natural persons participating in the

Programme shall be collected, stored and transferred, with their consent, in databases of

the Programme Authorities and management bodies. The Beneficiary shall limit access and

use of personal data to that strictly necessary for the performance, management and

monitoring of this Contract and shall adopt all appropriate technical and organisational

security measures necessary to preserve the strictest confidentiality and limit access to

this data.

6

Responsibilities of the Beneficiary :

7.4 setting up and maintaining effective, efficient and reliable Project implementation

system (strategic, daily operational and financial management), i.e.: ensuring efficient use

of the Project’s resources; ensuring that these tasks are subsequently fulfilled; ensuring

proper communication with wider public, whererelevant;

7.5 representing the Project – the Beneficiary serves as a contact point to the MA, JMC,

National Authority (the NA), Audit Authority (the AA) and Joint Technical Secretariat (JTS)

concerning the implementation of the Project and should ensure continuous communication

with the Programme (JTS);

7.6 progress of the Project as far as its financial and physical execution is concerned, and

in particular, for ensuring the delivery of outputs and results in line with the Project

application;

7.7 establishing adequate monitoring and evaluation system of the Project that ensures

timely delivery of Project outputs and results in a proper quality;

7.8 ensuring that the MA, JTS, JMC members, as well as independent assessors authorised

by the Programme authorities and representatives of the European Commission can have

access to all Project documents, sites and premises when carrying out monitoring or

evaluation missions, on-the-spot checks and audits; Access shall be granted on conditions

of strict confidentiality with regard to third parties, without prejudice to public law

obligations to which they are subject;

7.9 timely and correct reporting in compliance with Article 8 of this Contract;

7.10 requesting and receiving payments from the MA;

7.11 respecting and observing Programme rules and requirements, the EU, EURATOM, and

national legislation concerning financial management and controls, public procurement,

rules on nationality and origin, information and publicity and state aid rules;

7.12 ensuring the correctness of the Project accounting system and documents. The

Beneficiary shall have separate accounting system or an adequate accounting code for the

Project funds and expenditures.

7.13 ensuring that the Beneficary`s expenditure has been incurred, is supported by

invoices or documented by accounting documents and adequate supporting documents

understandable to third parties and has actually been paid out by the Beneficiary in

accordance with the Implementation Guidelines and no later then 31 December 2023.

7.14 ensuring that the expenditure presented by the Beneficiary has been incurred for the

purpose of implementing the Project and corresponds to the application and verify that the

expenditures has been examined by public officer;

7.15 ensuring production and maintenance of all documentary evidence required for control

and audit purposes on the Beneficiary's level;

7.16 ensuring timely and proper closure of the Project;

7.17 repayment of the amounts to the MA unduly paid according to the Financial Correction

Decision;.

7.18 ensuring adequate visibility of the EU contribution to the project, as well the

contribution by the participating country, Estonia, in order to strengthen public awareness

of the actions being taken by Estonia and EU, and to create a consistent image for the

support by Estonia, and EU in the project.

7

Article 8 — Obligations related to reporting

8.1 As project duration covers only 6 months the Beneficiary must draw up only Final

Report.

8.2 The Beneficiary prepares an individual final report and fills in information in eMS within

30 calendar days after the end of the project. An inividual final report shall consist of

narrative and financial report on the costs incurred and paid in the reporting period;

8.3 The public officer shall examine within 60 calendar days whether the costs declared by

the Beneficiary and the revenue of the Project are real, accurately recorded and eligible

under this Contract and produce an expenditure verification report.

8.4 The Beneficiary prepares a consolidated final report on the basis of the verified

individual report and submits it to the JTS via eMS. The consolidated report shall be

submitted to the JTS by the Beneficiary within 30 calendar days after the individual final

report is verified by the public officer.

The consolidated report shall contain all necessary information on achievement of project

outputs, a detailed description of the conditions in which the project was carried out,

information on the steps taken to ensure the visibility of Programme financing, information

with which to evaluate the project's outputs, the proof of the transfers of ownership (if

applicable), etc.

The JTS and MA have 25 working days to check and approve the consolidated report.

8.5 The Beneficiary shall provide the MA with all required information on the

implementation of the Project. The report shall describe the implementation of the Project

according to the activities envisaged, difficulties encountered and measures taken to

overcome problems, eventual changes introduced, as well as the degree of achievement

of its results (impact, outcomes or outputs) as measured by corresponding indicators. The

reports shall be drafted in such a way as to allow monitoring of the objective(s), the means

envisaged or employed and the budget details for the Project. The level of detail in any

report should match that of the Project and of the budget for the Project.

8.6 The individual and consolidated final reports shall be prepared in eMS in English and in

accordance with the Implementation Guidelines.

The final reports shall:

a) be submitted via eMS and cover the Project as a whole, regardless of which part

of it is financed by the MA;

b) consist of a narrative and a financial part;

c) provide a full account of all aspects of the Project's implementation for the period

covered the qualitative and quantitative information needed to demonstrate the

fulfilment of the conditions established in this Contract, incl. flat rate amount;

d) include the results within an updated table based on the logical framework matrix

including the results achieved by the Project as measured by their corresponding

indicators; agreed baselines and targets, and relevant sources of verification;

e) be drafted in the currency of euro (EUR) and in the English language;

f) include information about communication and visibility activities respecting

requirements as provided by Article 12;

g) include any relevant reports, publications, press releases and updates related to

the Project.

h) include the proofs of the transfers of ownership as referred to in Article 13 (if

applicable).

8.7 The public officer, the JTS and the MA may ask the Beneficiary complementary

information on the reports if necessary. In this case the Beneficiary is given a concrete

8

time-frame for submitting this information. The time limit for approving the reports will

start counting again as of the day of the receipt of this information.

8.8 If the Beneficiary fails to provide any report or fails to provide any additional

information requested by the Programme authorities within the set deadline without an

acceptable and written explanation of the reasons, the MA may terminate this Contract

according to Article 18.2 (a) and (f) of this Contract.

Article 9 — Liability

9.1 The MA cannot under any circumstances or for any reason whatsoever be held liable

for damage or injury sustained by the staff or property of the Beneficiary while the Project

is being carried out or as a consequence of the Project. The MA cannot, therefore, accept

any claim for compensation or increases in payment in connection with such damage or

injury.

9.2 The Beneficiary shall assume sole liability towards third parties related to Beneficiary,

including liability for damage or injury of any kind sustained by it while the Project is being

carried out or as a consequence of the Project. The Beneficiary shall discharge the MA of

all liability arising from any claim or action brought as a result of an infringement of rules

or regulations by its employees or individuals for whom those employees are responsible,

or as a result of violation of a third party’s rights.

Article 10 — Conflict of interest and good conduct

10.1 The Beneficiary shall take all necessary measures to prevent or end any situation that

could compromise the impartial and objective performance of this Contract. Such conflict

of interests may arise in particular as a result of economic interest, political or national

affinity, family or emotional ties, or any other relevant connection or shared interest.

10.2 Any conflict of interests which may arise during performance of this Contract must be

notified in writing to the MA without delay. In the event of such conflict, the Beneficiary

shall immediately take all necessary steps to resolve it.

10.3 The MA reserves the right to verify that the measures taken are appropriate and may

require additional measures to be taken if necessary.

10.4 The Beneficiary shall ensure that Project staff, including its management, is not placed

in a situation which could give rise to conflict of interests. Without prejudice to its obligation

under this Contract, the Beneficiary shall ensure replacement, immediately and without

compensation from the MA, of any member of Project staff in such a situation.

10.5 The Beneficiary shall ensure that during Project implementation all Project staff

respect human rights and applicable environmental legislation including multilateral

environmental agreements, as well as internationally agreed core labour standards.

Article 11 — Confidentiality

11.1 The MA and the Beneficiary undertake to preserve the confidentiality of any

information, notwithstanding its form, disclosed in writing or orally in relation to the

implementation of this Contract and identified in writing as confidential until at least 5

years after the payment of the balance or according to time limit stipulated in national

legislation.

11.2 The Beneficiary shall not use confidential information for any aim other than fulfilling

their obligations under this Contract unless otherwise agreed with the MA.

11.3 The Parties who have authorised access to the documents related to the Project, shall

maintain the same level of confidentiality.

9

Article 12 — Visibility

12.1 Unless the MA agrees or requests otherwise, the Beneficiary shall take all necessary

steps to publicise the fact that the Programme has co-financed the Project. Such measures

shall comply with the Communication and Visibility Guidelines for the implementation of

projects in line with Communication and Visibility Instructions for beneficiaries from the

Republic of Estonia.

12.2 In particular, the Beneficiary shall mention the Programme´s financial contribution in

information given to the final recipients of the Project, in its reports, and in any dealings

with the media. It shall display the Programme logo wherever appropriate and as specified

in the Communication and Visibility Instructions for beneficiaries from the Republic of

Estonia.

12.3 Any notice or publication by the Beneficiary concerning the Project, including those

given at conferences or seminars, shall specify that the Project has received Programme

funding. Any publication by the Beneficiary in whatever form and by whatever medium,

including the internet, shall include the disclaimer as specified in Communication and

Visibility Instructions for beneficiaries from the Republic of Estonia.

12.4 The Beneficiary authorises the NA, MA, JTS, members of the JMC and the European

Commission to publish its name and address, nationality, the purpose of the grant, duration

and location as well as the maximum amount of the grant and the rate of funding of the

Project's costs, as laid down in Article 3 of this Contract. Derogation from publication of

this information may be granted if it could endanger the Beneficiary or harm their interests.

Article 13 — Ownership/use of results and assets

13.1 Ownership of, and title and intellectual and industrial property rights to, the Project´s

results, reports and other documents relating to it will be vested in the Beneficiary.

13.2 Without prejudice to Article 13.1, the Beneficiary grant the NA, MA, JTS, members

of the JMC and the European Commission the right to use freely and as it sees fit, and in

particular, to store, modify, translate, display, reproduce by any technical procedure,

publish or communicate by any medium all documents deriving from the Project whatever

their form, provided it does not thereby breach existing industrial and intellectual property

rights.

13.3 The Republic of Estonia and the European Commission shall be entitled to use, publish

or disclose to third parties any study produced in the framework of the Project.

13.4 In case of the transfer of ownership, industrial and intellectual property rights for

outputs and results the transfer shall be done according to the national legislation. The

sustainability requirements defined in the Project should not be jeopardised and transfer

of the ownership should not result in a profit for the Beneficiary.

13.5 According to the Article 39.3 of the Implementing Rules, any Project including an

infrastructure component shall repay the Union contribution as well as the contribution of

the Republic of Estonia if, within five years of the Project closure or within the period of

time set out in state aid rules, where applicable, it is subject to a substantial change

affecting its nature, objectives or implementation conditions which would result in

undermining its original objectives. Sums unduly paid in respect of the Project shall

be recovered by the MA in proportion to the period for which the requirement has not been

fulfilled.

13.6 The MA should be notified about changes of ownership of the Project results

during implementation period of the Project and five years after completion of the Project.

13.7 The Beneficiary shall ensure that it has all rights to use any pre-existing intellectual

property rights necessary to implement this Contract.

10

Article 14 — Evaluation/monitoring of the Project

14.1 The monitoring of implementation of the project shall be carried out by the MA and

JTS. The monitoring will be performed based on the result-oriented evaluation. The

beneficiary shall be ready to report on the outputs and results achieved by the project in

any point of the project implementation.

14.2 If the European Commission carries out an interim or ex post evaluation or a

monitoring mission, the Beneficiary shall undertake to provide it and/or the persons

authorised by it as well as the NAs, MA, JTS and authorised independent assessors access

to the Project site as well as with the documents or information necessary for the evaluation

or the monitoring mission. Access should be granted on conditions of strict confidentiality

with regard to third parties without prejudice to public law obligations to which they are

subject.

14.3 If the construction/ renovation works are planned in the Project, within 2 weeks after

the contract on construction/renovation works is signed within the Project, the Beneficiary

shall inform JTS of the construction/renovation works including the start date of the works.

In addition, the Beneficiary should inform the JTS prior to other major Project events as

well.

14.4 If either the Beneficiary, or the Programme carries out or commissions an evaluation

in the course of the Project, it shall provide the other with a copy of the evaluation report.

Article 15 — Amendment of the Contract

15.1 The Contract and the Project can be amended as stipulated in Article 5.10 of the

Implementation Guidelines.

15.2 The amendment may not have the purpose or the effect of making changes to this

Contract that would call into question the grant award decision or be contrary to the equal

treatment of applicants. The maximum grant referred to in Article 4.2 of this Contract may

not be increased.

15.3 The responsibility of eligibility of changes lies down on Beneficiary and to be examined

by auditors.

Article 16 — Contracts with suppliers/service providers

16.1 In procurement procedures, the Public procurement act of the Republic of Estonia has

to be followed.

Article 17 — Extension and suspension

Extension

17.1 Programme level eligibility for project implementation ends on 31 December 2023,

meaning that all project activities have to be completed, costs incurred and payments

made by that date without possibility for extension.

Suspension by the Beneficiary

17.2 The Beneficiary may suspend implementation of the Project, or any part thereof, if

exceptional circumstances, notably of force majeure, make such implementation

excessively difficult or dangerous. The Beneficiary shall inform the MA without delay,

stating the nature, probable duration and foreseeable effects of the suspension.

17.3 The Beneficiary or the MA may then terminate this Contract in accordance with Article

17.4 If the Contract is not terminated, the Beneficiary shall endeavour to minimise the

time of its suspension and any possible damage and shall resume implementation once

circumstances allow, informing the MA accordingly.

11

Suspension by the MA

17.5 The MA may request the Beneficiary to suspend implementation of the Project, or any

part thereof, if exceptional circumstances, notably of force majeure, make such

implementation excessively difficult or dangerous. To this purpose, the MA shall inform the

Beneficiary stating the nature and probable duration of the suspension.

17.6 The Beneficiary or the MA may then terminate this Contract in accordance with Article

17.7. If the Contract is not terminated, the Beneficiary shall endeavour to minimise the

time of its suspension and any possible damage and shall resume implementation once

circumstances allow and after having obtained the approval of the MA.

17.8 The MA may also suspend this Contract or the participation of a Beneficiary in this

Contract if the MA has evidence that, or if, for objective and well justified reasons, the MA

deems necessary to verify whether presumably:

a) the grant award procedure or the implementation of the Project have been

subject to substantial errors, irregularities or fraud;

b) the Beneficiary has breached any substantial obligation under this Contract.

17.9 The Beneficiary shall provide any requested information, clarification or document

within 30 days of receipt of the requests sent by the MA. If, notwithstanding the

information, clarification or document provided by the Beneficiary, the award procedure or

the implementation of the grant prove to have been subject to substantial errors,

irregularities, fraud, or breach of obligations, then the MA may terminate this Contract

according to Article 18.2(h).

Force majeure

17.10 “Force majeure” shall mean any unforeseeable and exceptional situation or event

beyond the Parties’ control which prevents either of them from fulfilling any of their

obligations, not attributable to error or negligence on their part (or the part of their

contractors, agents or employees) and proves insurmountable in spite of all due diligence.

Defects in equipment or material or delays in making them available, labour disputes,

strikes or financial difficulties cannot be invoked as force majeure.

17.11 None of the Parties shall be held liable for breach of its obligations under this

Contract if it is prevented from fulfilling them by circumstances of force majeure, provided

that it takes measures to minimise any possible damage and that the other Parties are

duly informed.

Article 18 — Termination of the Contract

18.1 In the cases foreseen in Article 17.2 and 17.4, if the Beneficiary or the MA believes

that this Contract can no longer be executed effectively or appropriately, it shall duly

consult the other. Failing agreement on a solution, the Beneficiary or the MA may terminate

this Contract by serving two months written notice, without being required to pay

indemnity.

Termination by the MA

18.2 Without prejudice to Article 18.1, in the following circumstances the MA may, after

having duly consulted the Beneficiary, terminate this Contract without any indemnity on

its part when:

a) Beneficiary fails, without justification, to fulfil any substantial obligation, after

being given notice by letter to comply with those obligations, still fails to do so or

to furnish a satisfactory explanation within 30 days of receipt of the letter;

b) Beneficiary or any person that assumes unlimited liability for the debts of the

Beneficiary is bankrupt, subject to insolvency or winding up procedures, is having

its assets administered by a liquidator or by the courts, has entered into an

arrangement with creditors, has suspended business activities, or is in any

12

analogous situation arising from a similar procedure provided for under any national

law or regulations relevant to the Beneficiary;

c) Beneficiary, or any related entity or person, have been found guilty of an offence

concerning their professional conduct proven by any means;

d) it has been established by a final judgment or a final administrative decision or

by proof in possession of the MA that the Beneficiary has been guilty of fraud,

corruption, involvement in a criminal organisation, money laundering or terrorist

financing, terrorist related offences, child labour or other forms of trafficking of

human beings or has committed an irregularity;

e) a change to Beneficiary’s legal, financial, technical, organisational or ownership

situation or the termination of the participation of Beneficiary substantially affects

the implementation of this Contract or calls into question the decision awarding the

grant;

f) Beneficiary or any related person, are guilty of misrepresentation in supplying the

information required in the award procedure or in the implementation of the Project

or fail to supply – within the deadlines set under this Contract - any information

related to the Project required by the MA;

g) Beneficiary has not fulfilled obligations relating to the payment of social security

contributions or the payment of taxes in accordance with the legal provisions of the

country in which it is established;

h) the MA has evidence that a Beneficiary or any related entity or person, has

committed substantial errors, irregularities or fraud in the award procedure or in

the implementation of the Project;

i) Beneficiary is subject to an administrative penalty referred to in Article 18.8;

j) the MA has evidence that Beneficiary is subject to a conflict of interests;

k) the MA has evidence that Beneficiary has committed systemic or recurrent errors

or irregularities, fraud, or serious breach of obligations under other grants financed

by the Programme and awarded to that specific Beneficiary under similar conditions,

provided that those errors, irregularities, fraud or serious breach of obligations have

a material impact on this grant.

The cases of termination under points (b), (c), (d), (h), (j) and (k) may refer also to

persons who are members of the administrative, management or supervisory body of the

Beneficiary and/or to persons having powers of representation, decision or control with

regard to the Beneficiary.

18.3 In the cases referred to in points (c), (f), (h) and (k) above, a related person means

any physical person with powers of representation, decision-making or control in relation

to the Beneficiary. Any related entity means, in particular, any entity which has a majority

of the shareholders’ or members’ voting rights or the right to exercise a dominant influence

over another enterprise according to the national legislation.

End date

18.4 The payment obligations of the Programme under this Contract shall end 6 months

after the implementation period laid down in Article 3 of this Contract, unless this Contract

is terminated according to Article 18.

The MA may postpone this end date, so as to be able to fulfil its payment obligations, in

all cases where the Beneficiary has submitted a payment request in accordance with

contractual provisions or, in case of dispute, until completion of the dispute settlement

procedure provided for in Article 19. The MA shall notify the Beneficiary of any

postponement of the end date.

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Effects of Termination

18.5 Upon termination of this Contract the Beneficiary shall take all immediate steps to

bring the Project to a close in a prompt and orderly manner and to reduce further

expenditure to a minimum.

Without prejudice to Article 20, the Beneficiary shall be entitled to payment only for the

part of the Project carried out, excluding costs relating to current commitments that are

due to be executed after termination.

To this purpose, the Beneficiary shall introduce a payment request to the MA within the

time limit set by Article 21.3 starting from the date of termination.

In the event of termination according to Article 18.1, the MA may agree to reimburse the

unavoidable residual expenditures incurred during the notice period, provided, the first

paragraph of Article 18.7 has been properly executed.

In the cases of termination foreseen in Article 18.2 a), c), d), f), h) and k) the MA may,

after having properly consulted the Beneficiary and depending on the gravity of the failings,

request full or partial repayment of amounts unduly paid for the Project.

Administrative sanctions

18.6 Without prejudice to the application of other remedies laid down in this Contract, a

sanction of exclusion from all contracts and grants financed by the Programme, may be

imposed, after an adversarial procedure, upon the Beneficiary who, in particular,

a) is guilty of grave professional misconduct, has committed irregularities or has

been found in serious breach of its contractual obligations. The duration of the

exclusion shall not exceed the duration set by final judgement or final administrative

decision or, in the absence thereof, three years;

b) is guilty of fraud, corruption, participation in a criminal organisation, money

laundering, terrorist-related offences, child labour or trafficking of human beings.

The duration of the exclusion shall not exceed the duration set by final judgement

or final administrative decision or, in the absence thereof, five years;

18.7 Where the MA is entitled to impose financial penalties, the financial penalties and

corrections shall be done according to thefinancial correction decision. The MA may deduct

such financial penalties from any sums due to the Beneficiary or call on the appropriate

guarantee.

18.8 The decision to impose administrative sanctions may be published on a dedicated

internet-site, explicitly naming the Beneficiary.

18.9 The abovementioned administrative sanctions may also be imposed to persons who

are members of the administrative, management or supervisory body of theBeneficiary, to

persons having powers of representation, decision or control with regard to the Beneficiary.

Article 19 — Applicable law and procedures for complaints

19.1 Without prejudice to the applicable European law, this Contract shall be governed by

the law of the country of the Republic of Estonia.

19.2 The Parties to this Contract shall do everything possible to settle amicably any dispute

arising between them during the implementation of this Contract. To that end, they can

meet each other at either’s request or communicate their positions in writing. In case of

written communication the reply has to be provided within 30 days as of the receipt of the

written notice.

19.3 The administrative decisions can be appealed within the framework of a pre-trial

process according to the General Rules of Procedure for Complaints.

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Financial provisions

Article 20 — Eligible costs

Cost eligibility criteria

20.1 Eligible costs are actual costs incurred by the Beneficiary which meet all the following

criteria:

1) they are incurred and paid during the implementation or preparation period of the

Project as specified in Article 3 and 20.1 of this Contract. In particular:

a) costs relating to services and works shall relate to activities performed

during the implementation period. Costs relating to supplies shall relate to delivery

and installation of items during the implementation period. Signature of a contract,

placing of an order, or entering into any commitment for expenditure within the

implementation period for future delivery of services, works or supplies after expiry

of the implementation period do not meet this requirement;

b) all costs incurred should be paid as latest on 31 December 2023;

c) procedures to award contracts, as referred to in Article 16 of this Contract,

may have been initiated and contracts may be concluded by the Beneficiary before

the start of the implementation period of the Project, provided the provisions of

Article 16 have been respected;

2) they are indicated in the Project's estimated overall budget;

3) they are necessary for the Project implementation;

4) they are identifiable and verifiable, in particular being recorded in the accounting

records of the Beneficiary and determined according to the accounting standards and the

usual cost accounting practices applicable to the Beneficiary;

5) they comply with the requirements of applicable tax and social legislation;

6) they are reasonable, justified, and comply with the requirements of sound financial

management, in particular regarding economy and efficiency;

7) they are supported by invoices or documents of equivalent probative value.

Eligible costs

20.2 Subject to Article 20.1 the eligible costs are stipulated in Article 7 of the Guidelines

for the 6th Call for proposals;

Non-eligible costs

20.3 The costs as stipulated in Article 7.3.3 of the Guidelines for the 6th Call for proposals

are non-eligible.

Article 21 — Payment

Payments and pre-payments to the Beneficiary

21.1 The MA must pay the grant to the Beneficiary following the payment procedures as

stated in Article 10.2.3 of the Guidelines for the 6th Call for proposals:

a) Pre-financing (after signing of the Grant Contract) in amount of 60% of awarded

grant;

b) payment of the final balance (upon completion of the project) after approval of

the Final Consolidated Report.

21.2 The basis for making payments to the Beneficiary are:

a) Contract, signed by the Head of the MA and the Beneficiary for the advance

payment;

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b) Consolidated final report accompanied by expenditure verification report

approved by the MA for the final payment. The final report shall in all cases include

a detailed breakdown of expenditure covering the whole Project.

Payment shall not imply recognition of the regularity or of the authenticity, completeness

and correctness of the declarations and information provided.

Suspension of the period for payments

21.3 Without prejudice to Article 18, the time-limits for payments may be suspended by

notifying the Beneficiary that:

a) the amount indicated in its request of payments is not due, or;

b) proper supporting documents have not been supplied, or;

c) clarifications, modifications or additional information to the individual or

consolidated final report are needed, or;

d) there are doubts on the eligibility of expenditure and it is necessary to carry out

additional checks, including on-the-spot checks to make sure that the expenditure

is eligible, or;

e) it is necessary to verify whether presumed substantial errors, irregularities or

fraud have occurred in the grant award procedure or the implementation of the

Project, or;

f) it is necessary to verify whether the Beneficiary have breached any substantial

obligations under this Contract, or;

g) the visibility obligations set out in Article 12 are not complied with.

The suspension of the time-limits for payments starts when the above notification is sent

to the Beneficiary. The time-limit starts running again on the date on which the above

notification has been satisfactorily answered and if needed, a correctly formulated request

for payment is recorded. The Beneficiary shall provide any requested information,

clarification or document within 30 days of the request.

If, notwithstanding the information, clarification or document provided by the Beneficiary,

the payment request is still inadmissible, or if the award procedure or the implementation

of the grant proves to have been subject to substantial errors, irregularities, fraud, or

breach of obligations, then the MA may refuse to proceed further with payments and may,

in the cases foreseen in Article 18, terminate accordingly this Contract.

In addition, the MA may also suspend payments as a precautionary measure without prior

notice, prior to, or instead of, terminating this Contract as provided for in Article 18.

Article 22— Accounts, technical and financial checks and audit

Accounts

22.1 The Beneficiary shall keep accurate and regular accounts of the implementation of

the Project using an appropriate accounting and double-entry bookkeeping system. The

Beneficiary must use accrual accounting, so that the expenditure verification can be

correctly performed..

The accounts:

a) may be an integrated part of or an adjunct to the Beneficiary’s regular system;

b) shall comply with the accounting and bookkeeping policies and rules that apply

in the country concerned;

c) shall enable income and expenditure relating to the Project to be easily traced,

identified and verified.

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22.2 The Beneficiary shall ensure that any report as required under Article 8 can be

properly and easily reconciled to the accounting and bookkeeping system and to the

underlying accounting and other relevant records.

Audit

22.3 The MA, the Audit Authority (AA), the European Commission, the European Anti-Fraud

office (OLAF) and the European Court of Auditors, and any external auditor or public officer

authorized by these institutions and bodies, with the support of the Group of Auditors may

conduct documentary and on-the-spot checks on the use made of the Project financing

under this Contract and carrying out a full audit, if necessary, on the basis of supporting

documents of accounts and accounting documents and any other documents relating to

the financing of the Project, throughout the duration of this Programme and for the period

of record-keeping.

The authorities carrying out the checks must be informed of the exact location of the

documents at which they are kept. Where appropriate, the findings may lead to recovery

by the MA.

Right of access

22.4 The Beneficiary shall grant the authorities mentioned in Article 22.5, as well as NA,

MA, JTS and their authorised agents access to sites and premises at which operations

financed under this Contract are carried out, including their computer systems, and to any

documents and computerised data concerning the technical and financial management of

those operations, and to take every appropriate measure to facilitate their work with the

exception of data classified as a state secret in accordance with the national legislation.

Access shall be granted on the basis of confidentiality with respect to third parties, without

prejudice to the obligations of public law to which they are subject.

22.5 The Beneficiary shall allow the above entities to:

a) access the sites and locations at which the Project is implemented;

b) examine its accounting and information systems, documents and databases

concerning the technical and financial management of the Project;

c) take copies of documents;

d) carry out on the-spot-checks

e) conduct a full audit on the basis of all accounting documents and any other

document relevant to the financing of the Project.

22.6 Additionally the authorised persons of the Republic of Estonia and European Anti-

Fraud Office shall be allowed to carry out on-the-spot checks and inspections in accordance

with the procedures laid down by the respective legislation for the protection of the financial

interests of the Republic of Estonia and European Union against fraud and other

irregularities.

Where appropriate, the findings may lead to recovery by the MA.

22.7 Access given to agents of the European Commission, European Anti-Fraud Office and

the European Court of Auditors and to any external auditor or public officer authorised by

the MA carrying out verifications shall be on the basis of confidentiality with respect to third

parties, without prejudice to the obligations of public law to which they are subject.

Record keeping

22.8 Project accounting and other relevant records and supporting documents need to be

kept for five years from the date of payment of the balance to the programme or until the

date stipulated in the state aid rules (if applicable). As long as the balance payment date

is unknown, it is agreed that both programme and project level records and supporting

documents need to be kept until at least end of 2030. The MA informs the Beneficiary

about the date of reception of the balance payment from EC.

17

They shall be easily accessible and filed so as to facilitate their examination and the

Beneficiary shall inform the MA of their precise location. The Beneficiary is obliged to use

accrual accounting, so that the audit can be correctly performed.

22.9 All the supporting documents shall be available in the original form, which includes

also electronic form. In case a circumstance occurs where the Beneficiary cannot keep the

original of a document, a certified true copy of the document should be available.

22.10 In addition to the reports mentioned in Article 8, the documents referred to in this

Article include but are not limited to:

a) Accounting records (computerised or manual) from the Beneficiary’s accounting

system such as general ledger, sub-ledgers and payroll accounts, fixed assets

registers and other relevant accounting information, regulation of organisations’

relevant internal procedures (if necessary);

b) Proof of procurement procedures such as tendering documents, bids from

tenderers and evaluation reports;

c) Proof of commitments such as contracts and order forms;

d) Proof of delivery of services such as approved reports, signed time sheets,

transport tickets, proof of attending seminars, conferences and training courses

(including relevant documentation and material obtained, certificates) etc;

e) Proof of receipt of goods such as delivery slips from suppliers;

f) Proof of completion of works, such as acceptance certificates;

g) Proof of purchase such as invoices and receipts;

h) Proof of payment such as bank statements, debit notices, proof of settlement by

the contractor;

i) Proof that taxes and/or VAT that have been paid cannot actually be reclaimed;

j) For fuel and oil expenses, a summary list of the distance covered, the average

consumption of the vehicles used, fuel costs and maintenance costs;

k) Staff and payroll records such as contracts, salary statements and signed time

sheets.

22.11 Failure to comply with the obligations set forth in Article 22.1 to 22.11 constitutes a

case of breach of a substantial obligation under this Contract. In this case, the MA may in

particular suspend the Contract, payments or the time-limit for a payment, terminate the

Contract and/or reduce the grant.

Article 23 — Final amount of the grant

Final amount

23.1 The grant may not exceed the maximum ceiling as stated in Article 4.2 of this

Contract.

If the eligible costs of the Project at the end of the Project are less than the estimated

eligible costs as referred to in Article 4.1 of this Contract, the grant shall be limited to the

amount obtained by applying the percentage laid down in Article 4.3 of this Contract to the

eligible costs of the Project approved by the MA.

23.2 In addition and without prejudice to its right to terminate this Contract pursuant to

Article 18, if the Project is implemented poorly or partially - and therefore not in accordance

with the requirements of the Project in Annex I - or late, the MA may, by a duly reasoned

decision and after allowing the Beneficiary to submit its observations, reduce the initial

grant in line with the actual implementation of the Project and in accordance with the terms

of this Contract. This applies as well with regards to the visibility obligations set out in

Article 12.

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No profit

23.3 The grant may not produce a profit for the Beneficiary. Profit is defined as a surplus

of the receipts over the eligible costs approved by the MA when the request for payment

of the balance is made or according to State aid regulation if the Project is State aid

relevant.

23.4 Where the final amount of the grant determined in accordance with the Contract

would result in a profit, it shall be reduced by the percentage of the profit corresponding

to the final Programme contribution to the eligible costs actually incurred approved by the

MA.

Article 24 — Recovery

Recovery

24.1 If any amount is unduly paid to the Beneficiary, or if recovery is justified under the

terms of this Contract, the Beneficiary undertakes to repay the MA these amounts. The

repayments will be effected as stipulated in the Financial Correction Decision.

24.2 In particular, payments made do not preclude the possibility for the MA to issue a

financial correction decision.

24.3 As a rule, the financial correction decision shall be submitted to the Beneficiary

through eMS or any other relevant channel.

24.4 The NA of the Republic of Estonia or the European Commission is entitled to demand

the repayment of the amount due to the MA from the Beneficiaryestablished in the Republic

of Estonia in case the Beneficiaryhas not reimbursed the funds unduly spent to the MA.

Interest and fine for delay

24.5 The MA will charge interest if the repayment of the support to be refunded is

postponed and in case of the unlawful state aid according to the Guidelines to Financial

Corrections as approved by the JMC of the Programme. If the amounts have not been

repaid by the due term for repayment of support, the MA will charge fine for delay according

to the Guidelines to Financial Corrections as approved by the JMC of the Programme.

Offsetting

24.6 Amounts to be repaid to the MA may be offset against amounts of any kind due to

the Beneficiary, after informing it accordingly. This shall not affect the Parties’ right to

agree on payment in instalments.

Other provisions

24.7 Bank charges incurred by the repayment of amounts due to the MA shall be borne

entirely by the Beneficiary.

24.8 Without prejudice to the prerogative of the MA, if necessary, the European Union

may, as donor, proceed itself to the recovery by any means.

Article 25 – Applicable law

25.1 Without prejudice to the applicable European law, this Contract is governed by the

laws of the Republic of Estonia. The place of jurisdiction is Tallinn, Estonia.

Article 26 – Payment and contact details

Payment details

26.1 The MA shall make payments in EUR to the Beneficiary to the following bank account

referred to in this Contract which allows the identification of the funds paid by the MA:

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Bank name: Swedbank AS

IBAN: EE672200001120242093

SWIFT: HABAEE2X

Holder of the account: OÜ Setomaa Haldus

26.2 Contact details of the MA and the Beneficiary

For the MA

Mrs Külli Kaare

Acting as Head of Managing Authority

Grants Development Department

State Shared Service Centre

Lõkke 4, Tallinn 10122, Estonia

E-mail: [email protected]

Phone: +372 663 1950

For the Beneficiary

Mr Raul Lepp

Board member

Setomaa Management Ltd.

Pikk 30, Värska 64001, Estonia

E-mail: [email protected]

Phone: +372 518 3557

Signatures

Külli Kaare Raul Lepp

Acting Head of the Managing Authority Board member

Signed digitally Signed digitally

Vabariigi Valitsuse reservi sihtotstarbeliste vahendite välistoetuste mitte-abikõlblike kulude katteks kasutamise põhimõtted Vabariigi Valitsuse kabinetinõupidamisel 27.05.2021 (päevakorra punkt 7) ja 22.09.2022 täiendatud (lisatud alapunkt 4) tehtud otsused: Vabariigi Valitsuse reservi sihtotstarbeliste vahendite riigiülese tegevuse „Välistoetuste tagastused“ raames võib taotleda ja eraldada vahendeid järgmistel juhtudel:

lootusetuks tunnistatud tagasinõuded ulatuses, mida välistoetuse andja ei kata;1. mitteolulise suurusega tagasinõuded, mis jäetakse otstarbekuse kaalutlusel sisse nõudmata ja2. mida välistoetuse andja ei kata; rakendussüsteemist tingitud erijuhtumite korral, kus erimeelsuste lahendamiseks kokku kutsutud3. ümarlauas otsustatakse jätta nõue toetuse saajale esitamata või ei ole alust seda teha ning kulusid ei ole võimalik välistoetuse andjale katmiseks esitada:

tagasinõude aluseks oleva sätte suhtes ei olnud kulude tegemise ajal (sh hanke läbiviimise ajal) välja kujunenud selget õiguspraktikat või teadmist või on õigustõlgendus aja jooksul täpsustunud ja see ei olnud kulude tegemise hetkel teada, sh nt kui auditeeriv asutus ei ole varasemate (sama hanke) kontrollide tulemusel probleemi välja toonud; vaideorgani otsuse tulemusel toetuse saajale välja makstavad või tagasi nõudmata jäetavad summad, mida ei ole võimalik välistoetuse andjale esitada; korraldusasutuse ja auditeeriva asutuse vahelise lahendamatu erimeelsuse korral, mille tulemusel rakendusüksus auditi soovitust täies ulatuses või osaliselt ei täida, aga auditis märgitud mitteabikõlblikke kulusid ei saa välistoetuse andjale hüvitamiseks esitada; kui korraldusasutus, rakendusasutus või rakendusüksus on andnud tahtmatult eksitavad suunised toetuse saajatele.

Euroopa Komisjoni ja teiste doonorite poolt raamatupidamisarvestuse kontrollimise ja4. heakskiitmise menetluse ning vastavuskontrolli menetluse tagajärjel tehtud finantskorrektsioonide ja vähendamiste summad, mida ei ole võimalik toetuse saajatelt tagasi nõuda. Riigi Tugiteenuste Keskus korraldusasutusena kooskõlastab ministeeriumidega summad,5. täpsustab programmid ning esitab Rahandusministeeriumile programmide lõikes ühe koondtaotluse. Vabariigi Valitsuse reservist kaetud struktuurivahendite finantskorrektsioonide alt vabanev toetus6. suunatakse valitsuskabineti 12. mai 2020. a otsuse kohaselt kriisileevendusmeetmete ülebroneeringu katteks.

Välistoetustega seotud mitteabikõlblike kulude reservist hüvitamise põhimõtted

Reservi sihtotstarbeliste vahendite riigiülese tegevuse „välistoetuste tagastused“ eelarvet saab1. kasutada kõikidele vahendatavatele[1] välistoetustele valdkonna eest vastutava ministri

põhjendatud taotluse alusel või struktuurivahendite korraldusasutuse (Riigi Tugiteenuste Keskus, RTK) koondtaotluse alusel, mis on ministeeriumitega (mitteametlikult) kooskõlastatud. Reservist kaetakse lootusetuks tunnistatud tagasinõuete toetuse osa, mida ei ole võimalik2. komisjonile jagamiseks esitada või mida toetuse andja on otsustanud osaliselt või täielikult mitte jagada. Kaetakse järgmised juhtumid:

Tagastused, mida toetuse saaja tagasi ei maksa ning mida ei saa komisjonile jagamiseks esitada, kuna need kulud on enne kulude sertifitseerimist maksetaotlusest maha arvatud. Tagastused, mille osas on peale perioodi lõpparuande komisjonile esitamist selgunud, et toetuse saajalt ei ole võimalik toetust tagasi saada. Tagastused, mida ei ole võimalik toetuse saajalt tagasi saada, aga mida komisjon ei ole nõus jagama vastavalt komisjoni delegeeritud määruse nr 2016/568 artiklile 2. Tagastused, mis tulenevad ühise põllumajanduspoliitika rahastamise, haldamise ja seire kohta kohaldatava Euroopa Parlamendi ja nõukogu määruse (EL) nr 1306/2013 artikkel 54 lõikest 2, mille alusel kaetakse toetuse saajatelt laekumata võlgnevustega seonduvad finantstagajärjed 50% ulatuses asjaomase liikmesriigi poolt ja 50% ulatuses liidu eelarvest, kui tagasinõudmist ei ole toimunud nelja aasta jooksul alates tagasinõudmistaotluse kuupäevast või kaheksa aasta jooksul, kui tagasinõudmine toimub siseriikliku kohtu kaudu.

Reservist rahastatakse struktuurivahendite kuni 1000 euro suuruseid tagastusi, mida toetuse3. saajalt pole halduskulude vaatest mõistlik tagasi nõuda, aga mida ei saa komisjonile esitada, vastavalt Vabariigi Valituse määruse nr 143 „Perioodi 2014–2020 struktuuritoetusest hüvitatavate kulude abikõlblikuks lugemise, toetuse maksmise ning finantskorrektsioonide tegemise tingimused ja kord“ §-i 23 lõikele 4. Reservi kasutatakse rakendussüsteemist tingitud mitteabikõlblike kulude katteks, kui ümarlaua4. tulemusel otsustatakse nõuet toetuse saajale mitte esitada või ei ole alust esitada (ümarlaua otsused fikseeritakse protokollis) ning kulusid ei ole võimalik ka komisjonile sertifitseerida:

finantskorrektsiooni aluseks oleva sätte osas ei olnud kulude tegemise ajal (sh hanke läbiviimise aja) välja kujunenud selget õiguspraktikat või teadmist või on õigustõlgendus aja jooksul täpsustunud ja see ei olnud rikkumise toimepanemise hetkel teada, sh nt kui auditeeriv asutus ei ole varasemate (sama hanke) kontrollide tulemusel probleemi välja toonud; vaideorgani rahuldatud vaide tulemusel toetuse saajale välja makstavad või tagasi mitte nõutavad summad, mida ei ole võimalik komisjonile esitada, juhul kui vaide rahuldamine oli korraldusasutuse ja auditeeriva asutuse hinnangul põhjendatud; korraldusasutuse ja auditeeriva asutuse vahelise lahendamatu erimeelsusega seotud kulude katteks, mille tulemusel rakendusüksus auditi soovitust täies ulatuses või osaliselt ei täida, aga mida korraldusasutus ei saa komisjonile esitada, kuna auditi lõpparuande alusel tuleb kulud maha arvata; kui korraldusasutus, rakendusasutus või rakendusüksus on andnud tahtmatult eksitavad suunised toetuse saajatele.

Euroopa Komisjoni ja teiste doonorite poolt raamatupidamisarvestuse kontrollimise ja5. heakskiitmise menetluse ning vastavuskontrolli menetluse tagajärjel tehtud finantskorrektsioonide ja vähendamiste summad, mida ei ole võimalik toetuse saajatelt tagasi nõuda. Struktuurivahendite 2014-2020 perioodi tagastuste katteks eraldatud vahendeid kasutatakse6. valitsuskabineti 12. mai 2020. a otsuse (päevakorrapunkt 4) kohaselt kriisileevendusmeetmete ülebroneeringu katteks. See tähendab, et vahendid ei lähe tagasi lisarahaks meetme tegevuse ega

projekti eelarvesse, kus mitteabikõlblikud kulud tuvastati. Rahandusministeerium lisab vastava märke ka vahendite eraldamise käskkirja.

Protsess

Tuvastatud mitteabikõlblikke kulusid ei maksta välja, tasaarveldatakse uute abikõlblike kuludega või tuleb toetuse saajal toetus mitteabikõlblike kulude ulatuses tagasi maksta etteantud tähtajal (struktuuritoetuse seadus § 48 lõige 1). Riigieelarve seaduse § 54 lõike 2 punkt 2 kohaselt: kui riigiasutus on teinud käesoleva paragrahvi lõikes 1 nimetatud vahendite arvel väljamakseid suuremas summas, kui laekub välistoetust või välistoetuse kaasrahastamise vahendeid, peab riigiasutus või tema kõrgemalseisev ministeerium, välistoetuse vahendaja tehtud väljamaksete puhul ministeerium, kelle vastutusalas on vastava välistoetuse väljamaksmise ülesande täitmine, katma puudujääva summa valitsemisala eelarvelistest vahenditest või taotlema puudujäägi katmist Vabariigi Valitsuse reservist. Vahendid ei laeku, kui kulud on juba välja makstud, aga Euroopa Komisjonile pole võimalik neid hüvitamiseks esitada (näiteks toetuse saaja ei maksa tagasi (nt on läinud pankrotti)); mitteabikõlblikud kulud on tekkinud auditi lõpparuande ja sellele järgneva finantskorrektsiooni otsuse erinevusest tingitult; õigusaktide tõlgenduse muutumisel või mõnel muul juhul, mille korral ei olegi põhjendatud toetuse saajalt toetuse tagasi nõudmine jne.

Olukorras, kus finantskorrektsiooni otsus toetuse saajale erineb summast, mida korraldusasutus saab Euroopa Komisjonile abikõlblikuna deklareerida (nt auditi aruande põhjal tehtud toetuse tagasinõudmise soovitus oli suurem kui finantskorrektsiooni otsusega mitteabikõlblikuks loetud osa), tuleb tekkinud vahe osas rakendusüksusel projektile sisestada tehniline tagastus, mille katteallikaks on sõltuvalt asjaoludest kas Vabariigi Valitsuse sihtotstarbeline reserv või valitsemisala eelarve. Sama kehtib ka nendele kuludele, kus finantskorrektsiooni otsuse tegemisest on loobutud, kuid on teada, et kulusid abikõlblikuna Euroopa Komisjonile sertifitseerida pole võimalik (nt jäävad pooled erimeelsuse ümarlaual rikkumise esinemise osas erinevale seisukohale ning juhtum kuulutatakse lahendamatuks erimeelsuseks; samuti kuni 1000 euro erandiga tagastused, mida toetuse saajalt tagasi ei küsita). Katteallikate paremaks planeerimiseks tuleb sellised tagastused sisestada infosüsteemi kohe, kui selgub, et makseasutus on nimetatud kulud sertifitseeritavate kulude seast välja arvanud (lõppenud aruandeaasta kulude osas selgub info peale annual accountsi esitamist aruandeaastale järgneva aasta märtsikuuks) või on juhtum kuulutatud ümarlaual lahendamatuks erimeelsuseks. Korraldusasutus koondab eelnimetatud info ja edastab selle nii rakendusasutustele kui rakendusüksustele.

Riigieelarve seaduse § 54 lõike 2 punktis 2 viidatud Vabariigi Valitsuse reserv (millest taotlemist reguleerib Vabariigi Valitsuse reservist vahendite eraldamise ja eraldatud vahendite kasutamise kord) võimaldab vahendeid eraldada 1) erakorraliselt ettenägematuteks kuludeks ning 2) sihtotstarbeliselt Vabariigi Valitsuse heaks kiidetud tegevuste rahastamiseks (mh eelarverida välistoetuste tagasinõuete erijuhtumite katteks).

Vahendatava välistoetuse korraldusasutus [RTK (toetuste arendamise osakonna riskijuhtimise ja1. järelevalve talitus) ja /või Maaeluministeerium ja/või Siseministeerium] analüüsib tähtajaks tagastamata mitteabikõlblike kulude sisu ja seisu ning sihtotstarbelisest reservist katmise vajadust ning põhjendatust:

lootusetuks tunnistatud tagasinõuete korral üks kord aastas vastavalt oma tööplaanile aga

hiljemalt I kvartali jooksul eelmise aasta reservi kasutamise taotluse. kuni 1000-eurosed struktuurivahendite tagasinõuded 1x aastas vastavalt oma tööplaanile aga hiljemalt I kvartali jooksul eelmise aasta reservi kasutamise taotluse. erijuhtumid – struktuurivahendite korral ca 2x aastas: peale annual accountsi ja septembris või suuremate üksikjuhtumite korral vastavalt vajadusele; teised fondid vastavalt vajadusele.

Korraldusasutus esitab ministeeriumitega kooskõlastatud (mitteametlikult) taotluse2. sihtotstarbelisest reservist vahendite eraldamiseks Rahandusministeeriumile. Taotluse Rahandusministeeriumile võib esitada ka valdkonna eest vastutav ministeerium, sihtotstarbelisest reservist kasutamise osas konsulteerib Rahandusministeerium vastava fondi korraldusasutusega. Taotluses viidatakse Vabariigi Valitsuse otsusele, millega on tegevuse rahastamine heaks3. kiidetud, ja sellele lisatakse selgitused võetud või võetavate kohustuste kohta, taotletava summa üksikasjalik arvestus ning muu oluline teave (sh millise rakendusasutuse missuguse tulemusvaldkonna programmi ja programmi tegevuse eelarvet laekumata tagastus mõjutab; sh prognoos järgmise RES perioodi kulude osas; sh rikkumised, mis tuleb osaliselt katta valitsemisala eelarvest, tuuakse eraldi välja). Rahandusministeeriumi riigieelarve osakond lähtub Vabariigi Valitsuse sihtotstarbelise reservi4. kasutamise korrast rahandusministri käskkirja koostamisel ning saadud sisendist RES protsessis vastava reservi rea eelarve planeerimisel. Nõuetele vastava taotluse puhul teeb rahandusminister otsuse vahendite eraldamiseks, arvestades sihtotstarbeliste vahendite olemasolu Vabariigi Valitsuse reservis. Struktuurivahendite taotluste menetluse eest vastutab välisvahendite talitus. Ministri käskkirja alusel avab RTK riigiarvestuse töötaja asutusele limiidi.5. Finantskorrektsiooni otsuse ulatuses, mille katteks vahendeid reservist eraldati, kannab RTK6. valitsemisala finantsarvestuse talitus antud toetused SAPis ümber sihtotstarbelisest reservist antud toetusteks. Vahemikus hetkest, mil selgub, et doonorilt tulusid ei laeku kuni otsustatakse siseriiklik katteallikas mitteabikõlblikele kuludele on mitteabikõlblik kulu SAPis kajastatud välistoetusena, kuid RTK valitsemisala finantsarvestuse talitus kannab saadaoleva toetuse nõude ebatõenäoliselt laekuvaks (kuluks). Kui selgub, millisest allikast tehtud mitteabikõlblik kulu kaetakse, kannab RTK Finantsarvestuse talitus kulu ümber sellele allikale, võtab tagasi välistoetuse tulu ja nõude ning ebatõenäoliselt laekuvaks kantud välistoetuse nõude. Kui toetuste vahendeid arvestatakse rahaliselt eraldi e-riigikassa kontol, teeb RTK valitsemisala7. finantsarvestuse talitus ülekande valitsemisala üldiselt kulukontolt toetuste (SFOSi või mõnes muus IT süsteemis kajastuvate toetustega seotud) kontole riigikassas ning teavitab rakendusüksust ja korraldusasutust laekumisest. Rakendusüksus märgib finantskorrektsiooni otsuse alusel tekkinud nõude SFOSis või muus IT8. süsteemis laekunuks ja teavitab tegevuse lõpetamisest korraldusasutust. Korraldusasutus kontrollib sisestatud andmed üle, veendub nende korrektsuses, sh vajadusel palub teha parandused rakendusüksusel või SFOS kasutajatoel. RTK valitsemisala finantsarvestuse talitus inventeerib kvartaalselt tähtajaks laekumata nõudeid.9. RTK saadab info tähtajaks laekumata summast rakendusasutusele. Kui välistoetust ei laeku, tuleb leida kasutatud eelarve katteks uus allikas. Iga toetuse saldo peab lõpuks jõudma nulli. Kuni mitteabikõlblike kulude katteallikas ei ole otsustatud, on aruandlus raamatupidamises 10. eelarveliikide lõikes ebakorrektne – kuigi on teada, et kulu ei olnud võimalik katta toetusest, kajastub see endiselt toetusest tehtud kuluna. Valitsemisala peab tehtud kulule uue katteallika leidma esimesel võimalusel.

Kõikide nende juhtude korral, mis ei klassifitseeru VV 27.05.2021 ja 22.09.2022 otsuse kohaste

juhtumite alla, ning kus valitsemisala oma eelarve piires ei leia vahendeid ega neid ei ole ka võimalik järgmise RESi protsessis eraldada või lisataotlusega saada, võib ministeerium pöörduda taotlusega VV erakorralisse reservi. Silmas tuleb pidada, et VV erakorralisest reservist eraldatakse vahendeid erakorralisteks (ettenägematuteks) juhtudeks. Protsess on kirjeldatud VV määruses (taotlus esitatakse Rahandusministeeriumile; sellele lisatakse: VV korralduse eelnõu reservist vahendite eraldamise kohta (kus on välja toodud tulemusvaldkond ja programm); VV korralduse eelnõu seletuskiri, milles esitatakse taotletava summa üksikasjalik arvestus, põhjendus vahendite eraldamise vajalikkuse kohta ja analüüs taotletavate vahendite asemel olemasolevate ressursside kasutamise võimaluste kohta; muud õigusaktides sätestatud või reservist vahendite eraldamise otsustamisel tähtsust omavad dokumendid ja informatsioon. Rahandusministeerium vaatab esitatud taotluse läbi 20 tööpäeva jooksul, kontrollides taotluse ja taotletava summa reservist eraldamise põhjendatust ning vastavust õigusaktidele ja nõuetele. Rahandusministeerium seejuures konsulteerib vastava fondi korraldusasutusega, et vajadusel selgitada välja konkreetse juhtumi asjaolud ning anda hinnang, kas antud kulu on võimalik katta hoopis VV sihtotstarbelisest reservist või mitte. Kui taotlus vastab õigusaktidele ning on nõuetekohane ja piisavalt põhjendatud, edastab Rahandusministeerium esitatud korralduse eelnõu Vabariigi Valitsusele. Rahandusministeeriumil ei ole õigus muuta Vabariigi Valitsusele esitatavas korralduse eelnõus taotleja taotletava summa suurust. Vajaduse korral esitab Rahandusministeerium Vabariigi Valitsusele alternatiivset arvamust kajastava Vabariigi Valitsuse korralduse eelnõu koos selgitustega. Otsuse teeb Vabariigi Valitsus.

Taust

Välistoetuste projektide rakendamine peab lähtuma nii Euroopa Liidu kui liikmesriigi õigusaktides kehtestatud reeglitest: nt tulemuste saavutamine, kulude abikõlblikkus, rakendusperiood, riigiabi ja riigihanke reeglid, teavitusnõuded jne. Nende reeglite täitmist kontrollivad rakendusüksused, korraldusasutus, audiitorid ning lisaks võivad kontrollida ka Riigikontroll, Euroopa Komisjoni audiitorid ja Euroopa Kontrollikoda. Finantskorrektsiooni otsused tuvastatud mitteabikõlblike kulude kohta koostavad rakendusüksused nii enda kui teiste nimetatud asutuste kontrollide tulemuste alusel. Tuvastatud mitteabikõlblike kulude katteks toetust ei maksta, tagasinõuded tasaarveldatakse uute abikõlblike kulude katteks makstava toetusega või tuleb toetuse saajal tagasinõutud toetus mitteabikõlblike kulude ulatuses tagasi maksta etteantud tähtajal. Kui toetuse saaja tagasinõutud toetust tagasi ei maksa, siis riigieelarve seaduse § 54 lõike 2 kohaselt vastutab vahendite tagastamise eest riigieelarvesse ministeerium oma eelarvega ning kui valdkonna ministeeriumi eelarvest vahendeid leida ei ole võimalik, siis peab ministeerium taotlema puudujäägile katet Vabariigi Valitsuse reservist.

Teatud juhtudel tekib olukordi, kus ei ole põhjendatud toetuse saajalt toetus tagasi nõuda.2018. aasta detsembris muutis Euroopa Komisjon kulude sertifitseerimise juhendit[2], mis on liikmesriikidele täitmiseks rangelt soovituslik. Juhise kohaselt on auditi lõpparuandes toodud mitteabikõlblikud kulud lõplikud ehk need tuleb abikõlblike kulude hulgast sertifitseerimisel välja võtta, isegi kui nendele ei järgne finantskorrektsiooni otsust või tehakse otsus väiksemas summas. Tagasi saab neid panna ainult kohtuotsuse või mõne muu struktuurivahendite administratsioonist sõltumatu organi otsuse alusel. Perioodi 2014-2020 struktuuritoetuse seaduse (STS) ning Euroopa Liidu ühise põllumajanduspoliitika rakendamise seaduse alusel rakendatavate fondide korral tuleb finantskorrektsiooni otsusega mittenõustumisel enne halduskohtule kaebuse esitamist läbida vaidemenetlus. Kuna STS §-i 51 kohaselt rahuldab rakendusüksuse peale esitatud vaided rakendusasutus või rakendusüksus, kes komisjoni juhendit arvestades ei ole sõltumatu struktuurivahendite administratsiooniväline organ, siis sellest

tulenevalt ei saa sellise mittesõltumatu organi otsuse alusel kulusid uuesti abikõlblikuks lugeda, kui need on kord sertifitseerimise protsessis maha võetud. Vaidemenetluse kui haldusorgani enesekontrolli meetme kaudu võib teatud juhtudel olla tulemuseks, et toetuse saaja esitatud vaie rahuldatakse ning algne finantskorrektsiooni otsus tühistatakse. Nii võivad erimeelsused audiitori, finantskorrektsiooni ja vaide otsuse tegijate vahel kaasa tuua arvestatava finantsmõju riigieelarvele: tehtud kulud on auditi tulemusel tunnistatud mitteabikõlblikuks ja sertifitseeritavatest kuludest maha võetud, kuid siseriiklikult abikõlblikuks loetud, välja makstud, aga komisjonile neid abikõlblikuna deklareerida ka ei saa, mistõttu on vaja leida alternatiivsed allikad kulu katmiseks.

Teine olulise finantsmõjuga probleem on riigihangetega seotud rikkumised. Nii kohtupraktika (sh Euroopa Kohtu praktika), riigihangete seadus kui ka liikmesriikidele kohalduvad komisjoni juhised riigihangete rikkumiste kohta on pidevas muutumises. Viimastel aastatel (alates 2017. a) on komisjon ja sellest tulenevalt ka Rahandusministeeriumis asuv auditeeriv asutus võtnud luubi alla piiravad kvalifitseerimistingimused riigihangetes. Koolituspäevad ja teavitustöö ei ole sellistel puhkudel alati piisavad, sest rikkumisi leitakse endiselt. Suurtes investeeringuprojektides on nende finantsmõju väga suur. Fikseeritud finantskorrektsioonimäärad ja nende alusel koostatud toetuste tagasinõuded tulenevad komisjoni uuendatud juhendist,[3] mille kohaselt konkurentsi piiravaid riigihankerikkumisi käsitletakse väga rangelt ja karistatakse fikseeritud finantskorrektsioonimäärade alusel. Kuivõrd nimetatud määrade rakendamine baseerub põhimõttel, et rikkumise tulemusel ei ole võimalik täpset finantskahju hinnata, siis on komisjoni poolt fikseeritud kindlad protsendimäärad. Ebaproportsionaalsusele on riigid, sh Eesti, korduvalt tähelepanu juhtinud. Juhendi muutmisele eelnes 1,5 aastat arutelusid liikmesriikidega, seatud protsendimäärad on komisjon kehtestanud täie teadlikkuse juures selge sooviga olla range. Regulatsioonil on ka preventiivne eesmärk, millega soovitakse toetuse kasutajaid suunata järgima valdkondlike erireegleid, et tagada Euroopa Liidu konkurentsipoliitikat. Komisjon annab toetuse ja ka reeglid.

Tulenevalt eeltoodust on ette tulnud ka olukordi, kus rakendusüksus on nõustanud toetuse saajaid valesti: nt toetuse saajate nõustamise ajal oli siseriiklikult levinud teistsugune õiguspraktika (hea tava), kuid seisukohad on ajas täpsustunud või muutunud ning kontrolli teostamise ajal selgub, et rakendusüksuse varem antud nõuanne osutub vääraks; või varasemate sama hanke kontrollide käigus ei ole probleemi tuvastatud, ühel hetkel on audiitorite või siseriikliku toetuse andja teadlikkus kasvanud ning leidnud probleemi hilisemate kontrollide raames kas hanke elluviimise või elluviimise järgses etapis. Sellist muutust ei ole võimalik ette näha. Juhul, kui seotud kulusid komisjonile sertifitseerida ei ole võimalik ja neid ei ole võimalik toetuse saajalt tagasi saada või põhjendatud toetuse saajalt tagasi nõuda, tuleb mitteabikõlblike kulude katteks leida vahendid riigieelarvest.

Süsteemist tingitud mitteabikõlblike kulude minimeerimiseks ja välistamiseks viiakse alates 2020. aastast läbi ümarlaudasid[4] eesmärgiga kujundada ühtne seisukoht enne auditi lõpparuande kinnitamist (mis komisjoni jaoks muudab välja toodud mitteabikõlblikud kulud lõplikuks). Ümarlaua koosseisus on korraldusasutuse, auditeeriva asutuse, rakendusüksuse ja vajadusel ka rakendusasutuse esindajad ning selle tulemusel kinnitatud auditi lõpparuande osas ei peaks rakendusüksus enam teistsugusele seisukohale asuma. Komisjonile kulude abikõlblikkuse kinnitamise eest vastutab korraldusasutus, mistõttu on viimase seisukoht määrav. Täiendavalt on alates 2019. aastast kokku lepitud, et iga komisjoni maksetaotluse koostamisel kontrollitakse, kas lisandunud tasutud finantskorrektsioonide puhul on esitatud vaie või ei ole vaide menetlemise tähtaeg veel saabunud. Kui tagasimakse tehakse enne vaideotsuse saamist, siis kuni vaidemenetluse lõpuni finantskorrektsiooni

aluseks olevaid kulusid komisjoni maksetaotlustest maha ei arvata. Vaiete lahendamisel peab samuti järgima komisjoni juhendit: kui komisjoni kehtestatud juhendis on protsendimäärad ette kirjutatud, siis ei ole vaideorganil õigust rikkumisele leebemalt tõlgendada.

Kontaktid

Kui kellelgi on täpsustavaid küsimusi tehnilise poole pealt, siis esimeses järjekorras palun pöörduge oma valitsemisala pearaamatupidaja poole või siis riigi pearaamatupidaja poole.

Rahandusministeeriumi riigieelarve osakonna välisvahendite talitus, Juhan Anupõld, nõunik, 5885 1365, [email protected]

Riigi Tugiteenuste Keskuse toetuste arendamise osakonna riskijuhtimise ja järelevalve talitus, Mairi Uusen, talituse juhataja, 663 1941, [email protected]

[1] Vahendatavate välistoetuste all mõeldakse siinkohal on riigisisest rakendussüsteemi omavaid toetusskeeme, kus välistoetuse vahendaja annab riigisiseselt kokku lepitud valdkondade tegevustele määratletud tingimustel välistoetuse edasi. Vahendatavateks välistoetusteks on näiteks: Euroopa Regionaalarengu Fond, Euroopa Sotsiaalfond, Ühtekuuluvusfond, Euroopa Merendus- ja Kalandusfond, Maaelu Arengu Euroopa Põllumajandusfond, Euroopa Põllumajanduse Tagatisfond, Euroopa Majanduspiirkonna ja Norra Finantsmehhanismid, Eesti-Šveitsi koostööprogramm, Eesti-Läti programm, Eesti-Vene programm, Varjupaiga-, Rände- ja Integratsioonifond, Sisejulgeolekufondid, uuel perioodil lisanduvad Õiglase Ülemineku Fond ja Taaste- ja vastupidavusrahastu.

[2] EGESIF_15_0016-04 (https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_audit_accounts_en.p df), EGESIF_15_0017-04 (https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_withdrawals_recover ies_en.pdf), seisukoht NR. regio.ddg.d.5/JO/(2019)8319003 ja EGESIF_15_0018-04 (https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_prep_exam_account s_en.pdf), 03/12/2018

[3] KOMISJONI OTSUS, 14.5.2019, millega kehtestatakse suunised kohaldatavate riigihanke-eeskirjade rikkumise korral liidu rahastatavate kulude suhtes tehtavate finantskorrektsioonide kindlaksmääramiseks. Otsus kättesaadav: https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/GL_corrections_pp_irregularitie s_ET.pdf, lisa: https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/GL_corrections_pp_irregularitie s_annex_ET.pdf

[4] Ümarlaudade läbiviimise täpsem protsess on kirjeldatud korraldusasutuse koostatud juhises „Juhendmaterjal juhtimis- ja kontrollisüsteemide ning projektiauditite järeltegevuste menetlemiseks“.

Viimati uuendatud 11.12.2023

Lõkke 4 / 10122 Tallinn / 663 8200 / [email protected] / www.rtk.ee / Registrikood 70007340

For official use only

Notation done at: 16.09.2024

Access restriction until: 16.09.2029

Basis: AvTS § 35 lg 1 p 2

Holder of information: State Shared Service Centre

Raul Lepp

Setomaa Haldus OÜ

[email protected] Ours 16.09.2024 no 11.1-14/24/2115-1

Pikk 30

64001 Värska

Eligibility of project ER274 SetoWWTP costs

and deadlines

The Estonia-Russia Cross-Border Cooperation Programme 2014-2020 was initiated as part of the

European Neighbourhood Instrument 2014-2020. However, due to the war that started in 2022,

cooperation with the Russian Federation was suspended, and the Programme implementation

continued unilaterally as the Estonian EU External Border Programme. Setomaa Management Ltd.

participated as the Lead Beneficiary in the 6th call for proposals of the Estonian EU External Border

Programme with the project ER274 "Improving sewage treatment in Setomaa WWTPs"

(SetoWWTP).

The basis for opening the 6th call for proposals included various legal acts, including:

Regulation (EU) 2022/2192 of the European Parliament and of the Council. This regulation

established special provisions for, among other things, the European Neighbourhood Instrument,

under which the Estonian EU External Border Programme falls, in the event of a disruption to the

programme's implementation. Under Article 6(2) of the regulation, the deadline for concluding

contracts was extended: The managing authority may sign contracts, other than contracts for large

infrastructure projects, after 31 December 2022, provided all project activities financed by the

programme end by 31 December 2023.

Commission Implementing Regulation (EU) 2020/879, amending Implementing Regulation (EU)

No 897/2014 as regards specific provisions to align the provisions for the implementation of cross-

border cooperation programmes financed under the European Neighbourhood Instrument with

specific measures in response to the COVID-19 pandemic. According to Article 1(3) in Article

18(3) of the Implementing Regulation (EU) No 897/2014 the eligibility period for projects is

extended by one year until 31 December 2023. With Article 1.(7)(b) Article 48(2a) is added,

stating: 2a. Notwithstanding Article 19(1), costs shall not be eligible for Union financing if they

are paid after 31 December 2023.

Article 288 of the Treaty on the Functioning of the European Union stipulates that a regulation

shall have general application. It shall be binding in its entirety and directly applicable in all

Member States. This principle ensures the uniform application of EU regulations across the Union,

avoiding discrepancies in interpretation and implementation that may arise with national laws, but

shall leave to the national authorities the choice of form and methods. In the current case, the

eligibility deadline and conditions are very clearly defined to ensure their uniform implementation

across Member States.

The 6th call for proposals guidelines of the Estonian EU External Border Programme, the Project

Implementation Guidelines, and Article 20.1.1 b) of the SetoWWTP support agreement stipulated

that all costs incurred should be paid as latest on 31 December 2023.

Furthermore, the programme’s Joint Technical Secretariat repeatedly informed applicants and later

project beneficiaries about the end date for eligible costs (31 December 2023) during seminars,

consultations, and in writing. The call for proposals information was also available on the

programme's website.

Setomaa Management Ltd. failed to comply with the final deadline for the eligibility of project

costs by paying project-related expenses after 31 December 2023, specifically on 16 January and

12 February 2024.

On 5 June 2024, the programme's Managing Authority and Joint Technical Secretariat consulted

with the European Commission representative during the 17th meeting of the programme's Joint

Monitoring Committee on this matter. All parties agreed that the same rules apply to all projects

and that the regulation is unequivocal – costs paid after 31 December 2023 are not eligible.

Also, it is not possible to seek reimbursement for the SetoWWTP project costs from the

Government of the Republic's reserve, as targeted funds to cover ineligible external aid costs may

only be requested and allocated in the following cases:

• Irrecoverable claims to the extent that is not covered by the external aid provider;

• Non-significantly small claims that are not pursued on grounds of expediency and are not

covered by the external aid provider;

• In special cases arising from the implementation system, where it is decided not to pursue

the claim against the aid recipient or where there is no basis for doing so, and the costs

cannot be submitted to the external aid provider for reimbursement.

In this case, none of the allowed options apply. According to Chapter 8 of the Project

Implementation Guidelines, the Managing Authority, Joint Technical Secretariat, and First Level

Control (FLC)/auditors have discretionary power to recover the amounts unduly paid together

with any interest on late payments from the LB. In general ineligible costs that are detected during

verification of project reports are deducted (from the project payment) in the relevant reporting

period without making financial correction decision and reducing the project budget.

The programme uses the eMS information system, in which project applications and reports for

approved projects are submitted. The reporting process is also controlled in this information

system, and the first-level control certificates are made available to the beneficiaries in the same

system. In accordance with Chapter 8 of the Project Implementation Guidelines, the circumstances

and reasoning for deduction or financial correction are described in the eMS in the FLC

Certificate.

The SetoWWTP project certificate was confirmed in the eMS information system on 20 March

2024, and it has been accessible to the beneficiary in the system since that date. As the Lead

Beneficiary, Setomaa Management Ltd submitted the consolidated project report on 22 April 2024,

using the data from the given certificate.

The 6th call for proposals guidelines of the Estonian EU External Border Programme p 10.7.

provides that the Managing Authority shall recover the amounts unduly paid together with any

interest on late payments from the lead beneficiary. The Project Implementation Guidelines p 8

provides that a financial correction decision with reducing the project budget shall be made for

expenditure that is considered as a financial irregularity and are the breach of Programme rules.

Estonian EU External Border Programme made an advance payment of €170,100.00 to the

SetoWWTP project, but the eligible costs of the project amount to €168,059.20, of which the grant

(90%) is €151,253.28. Therefore, the Lead Beneficiary, Setomaa Management Ltd, is required to

repay €18,846.72 to the programme.

Due to the fact that the programme eligibility deadline is 30 September 2024, we kindly ask you

to make the voluntary payment of the abovementioned amount by 27 September 2024. We will

also prepare the financial correction decision, which will take this action also into account while

deliberating.

Please be informed, that the response to this letter will be considered as your use of the right to be

heard and your comments/explanations will be added to the financial correction decision.

Yours sincerely,

(signed digitally)

Ege Ello

Head of the Managing Authority

Estonian EU External Border Programme

Ege Ello 663 1933

[email protected]

Page 1 of 22

PROJECT APPLICATION FORM

Project identification Project title Improving sewage treatment in Setomaa WWTPs

Project Acronym SetoWWTP

Project number ER274

Programme thematic objective TO 6 Environmental protection, climate change mitigation and adaptation

Programme specific area Improving the quality of shared water assets by reducing their pollution load

Name of the lead partner organisation/original language Setomaa Haldus OÜ

Name of the lead partner organisation/English Setomaa Management Ltd.

Project duration in months 6 months 0 days

Start date 30.06.2023

End date 29.12.2023

Date of submission 02.02.2023

Project summary Please give a short overview of the project and describe:

the common challenge of the programme area you are jointly tackling in your project; the overall objective of the project and the expected change your project will make to the current situation; the main outputs you will produce and who will benefit from them; the approach you plan to take and why is cross-border approach needed; what is new/original about it?

Please note that, in case of approval, parts of this summary will be published on the programme's web site. It should be clear, easily readable, self-explanatory and without references to other parts of the application form and other

documents.

Please pay attention that all the questions are answered!

The project is focused to improving the quality of shared water assets by means of improving waste water treatment facilities in Setomaa. Setomaa municipality is borderland area, lying right next to Russia. The overall goal is to accomplish wastewater treatment plant reconstruction both in Saatse and Obinitsa villages. The project will rise sewage treatment standard in Saatse WWTP by introducing additional ditch as additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. Investment will also contribute to preserving habitat of pond frog (Pelophylax lessonae, under protection, III category), further minimising pollution load to habitat area. The reconstruction of Obinitsa WWTP will contribute to minimising pollution load, as new WWTP will be more energy-efficient and strictly dimensioned to needs of existing sewage volume. The reconstruction will include construction of new maintenance building, electricity and automation systems, technical equipment, new sewage tank and accompanying pipes. Old WWTP building structures will be demolished.  Overall number of direct beneficiaries will be 186 inhabitants in total, living in both villages (Saatse - 52, Obinitsa - 134). Overall target of the project is to preserve natural environment, by applying significantly higher sewage treatment level than previously in order to reduce effluent and sediments outflow to nature.      

Page 2 of 22

Programme Co-financing (based on information filled in sections Partners and Partner budget)

Partner Programme co-financing Contribution

Total eligible Partner Partner

abbreviation Country EE-RU CBC EE-RU CBC

co-financing( %)

Percentage of total EE-RU

CBC

Public contribution

Private contribution

Total contribution

Setomaa Haldus OÜ SetoHaldus EESTI 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Subtotal for partners inside 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Subtotal for partners outside 0,00 --- 0,00 % 0,00 0,00 0,00 0,00

Total 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Programme output indicators and your contribution

Programme output indicators and your contribution (based on information filled in the Work package list section) Programme output indicators Project's target (total) Measurement unit Project's targets Output code

The number of projects that are related to the purification of common water assets 2,00 Number

1,00 I1.1.1

1,00 I1.2.1

Page 3 of 22

PROJECT PARTNERS

Partner list

Number Name Region Inside programme area

Abbreviation Role Associated to

1 Setomaa Haldus OÜ Lõuna-Eesti Yes SetoHaldus LP

2 Setomaa vald Lõuna-Eesti Yes AP Setomaa Haldus OÜ

Partnership Description

Page 4 of 22

Project partners

Project partner 1 Partner role in the project LP

Name of organisation in original language Setomaa Haldus OÜ

Name of organisation in English Setomaa Management Ltd.

Abbreviation of organisation SetoHaldus

Department/unit/division N/A

Address Area EESTI (EE)

Country Eesti (EE00)

Region Lõuna-Eesti (EE008)

Postal code 64001

City Värska

Street Pikk

House number 30

Homepage https://setomaa.kovtp.ee/setomaahaldus

Legal and Financial Information

Type of Partner Other bodies that are governed by public legal acts, (e.g., municipal and national enterprises, trade unions, medical institutions, museums, etc.)

Legal status private

Co-financing rate (%) 90.00

Is your organisation entitled to recover VAT based on national legislation for the activities implemented in the project? Yes

VAT Number EE100001598

Registration number

Legal Representative First name Raul

Last name Lepp

E-mail address [email protected]

Phone number 5183557

Contact Person First name RAUL

Last name ALTNURME

E-mail address [email protected]

Phone number 56451976

Experiences of partner Which are the organisation’s experiences and thematic competences and experiences relevant for the project?

Setomaa Haldus OÜ is the water enterprise of Setomaa municipality, which ownership belongs 100 % to Setomaa municipality. Setomaa Haldus is also providing in addition to water and wastewater services other communal services as planting and landscaping, incl. management of graveyards. Setomaa Haldus OÜ will be the key actor in implementing the project, carrying out the project activities. Enterprise have previous experience in carrying out investment projects in water and wastewater sector.

Benefit What is the benefit for the organisation from participating in the project?

Benefit for the organisation will be opportunity to carry out significant investment program related to WWTPs, which will be not possible without additional grant.

Other projects Please describe the organisation’s experience (if any) in participating in and/or managing international/EU co-financed projects/ national projects or other projects.

Setomaa Haldus OÜ has been established at the end of 2018 by merging of different smaller enterprises (OÜ Katel, OÜ Meremäe Vesi and OÜ Verska Calor) after municipal administrative reform, which created also Setomaa municipality. New enterprice has not yet carried out projects financed by national or EU donors.

Page 5 of 22

Associated partner 2 Partner role in the project AP

Name of organisation in original language Setomaa vald

Name of organisation in English Setomaa municipality

Associated to partner Setomaa Haldus OÜ

Address Area EESTI (EE)

Country Eesti (EE00)

Region Lõuna-Eesti (EE008)

Postal code 64001

City Värska

Street Pikk

House number 12

Legal Representative First name Raul

Last name Kudre

E-mail address [email protected]

Phone number 7964733

Contact Person First name Lauri

Last name Saar

E-mail address [email protected]

Phone number 5204526

Role Partner's role in the project

Role of the Setomaa municipality is to participate in dissemination of information about project objectives, activities and output. The main channel for media and communication is municipal website, from where public will be informed. Also ensuring adequate visibility of EU financing will be accomplished together with municipality, as suitable spots for construction billboards will be on public land. Municipality is carrying out also compulsory legal tasks - such as issuing building permit for reconstruction of Obinitsa WWTP. Therefore smooth communication between involved parties and observing needs of the project will be key factors for success of the project.

What is the benefit for the organisation from participating in the project?

The main benefit for the organisation is rising standards of environmental protection in the Setomaa municipality via implementing better practices of sewage treatment. As the overall level of sewage treatment in those villages is rising, thus also the benefits will be disseminated to wider public.

Page 6 of 22

PROJECT DESCRIPTION

Project relevance Cross-border Challenge

What are the common cross-border challenges that will be tackled by the project?

Please describe the relevance of your project for the programme area in terms of common challenges and/or joint assets addressed?

The project is focused to improving the quality of shared water assets by means of improving waste water treatment facilities in Setomaa. Setomaa municipality is borderland area, lying right next to Russia in mainland Estonia. Project covers wastewater treatment of two villages - Saatse and Obinitsa. One of them - Saatse is situating just 1 kilometre from Estonian- Russian border and local road from municipal capital Värska to Saatse is going through Russia, where entry is permitted only to vehicles and stopping is prohibited. This has generated quite unique context for managing water resources and sewage treatment, as geographical context is evident in daily management of utilities. Obinitsa is situating also in border area, around 3-4 kilometres from the border. 

Project approach

What is the project's approach in addressing these common challenges and/or joint assets and what is new about the approach the project takes?

Please describe new solutions that will be developed during the project and/or existing solutions that will be adopted and implemented during the project lifetime and in what way the approach goes beyond existing practice in the sector/programme area/participating countries.

The overall goal of the project is to accomplish wastewater treatment plant reconstruction both in Saatse and Obinitsa villages. The project will rise sewage treatment standard in Saatse WWTP by introducing additional ditch as additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. Investment will also contribute to preserving habitat of pond frog (Pelophylax lessonae, under protection, III category), further minimising pollution load to habitat area. The reconstruction of Obinitsa WWTP will contribute to minimising pollution load, as new WWTP will be more energy-efficient and strictly dimensioned to needs of existing sewage volume. The reconstruction will include construction of new maintenance building, electricity and automation systems, technical equipment, new sewage tank and accompanying pipes. Old WWTP building structures will be demolished.  Overall number of direct beneficiaries will be 186 inhabitants in total, living in both villages (Saatse - 52, Obinitsa - 134). Overall target of the project is to preserve natural environment, by reducing effluent and sediments outflow to nature at significantly higher treatment level than previously.

Cooperation Reason

Why is cross-border cooperation needed to achieve the projects objectives and result?

Please explain why the project goals cannot be efficiently reached acting only on a national/regional/local level and/or describe what benefits the project partners/target groups/project area gain in taking a cross-border approach.

Page 7 of 22

Project focus Programme TO (thematic objective) specific area Improving the quality of shared water assets by reducing their pollution load

Project Main Overall Objective

What is the main overall objective of the project and how does it link to the programme objective? Specify one project main objective and describe its contribution to the programme priority specific objective.

Main objective of the project is reducing effluent and sediments outflow to nature and protecting shared water assets via significantly higher wastewater treatment level in Saatse and Obinitsa villages.

Programme Result Indicator

Select one programme result indicator your project will contribute to.

Increased capacity in environmental protection for joint water assets

Project Main Result

What are the project main results and how do they link to the programme result indicator? Specify your one or more projects main results and describe their contribution to the programme result indicator.

The main result of the project are two reconstructed WWTP`s in borderland area of Estonia, which contribute to reduction of pollution load of water bodies.

Project Specific Objectives

Which are the specific objectives the project will be working towards? Define max. 3 project specific objectives.

Please provide a short explanation on the defined specific objectives

Project specific objective Short explanation of the defined specific objective

Project context Project Context How does the project contribute to wider strategies and policies? Please describe the project`s contribution to relevant strategies and policies; in particular, those concerning the project or programme area.

The project will contribute to achieving goals of the municipal water and wastewater development plan for the period 2023-2035. The new development plan of the water and wastewater of Setomaa municipality is in the consultation phase with relevant state authorities and will be adopted by the municipal council on March 2023 at latest.

Synergies What are the synergies with other past or current EU and other -projects or EU-initiatives the project makes use of?

The focus on reconstructing WWTP`s is contributing to the overall strategy of European Union to help Estonia in achieving higher environmental standards via appropriate wastewater treatment plants and new water purification plants. In 2014-2020 EU financing framework period over 115 million euros were allocated to water and wastewater projects in Estonia, according to Environmental Investment Centre - reference - https://www.kik.ee/et/projektid?area[]=281&funding_source[]=327&application_round[]=366&items_per_page=20 . However - water and wastewater projects in smaller settlements of Estonia are still in need for investments. This is evident especially in border area, where population density and socio-economic situation is not comparable to bigger towns or capital area of Tallinn. Therefore this project has clear catalytic effect of implementing higher environmental standards in wastewater treatment in less developed border areas of Estonia.

Knowledge How does the project make use of building available knowledge? Please describe the experiences/lessons learned from previously funded EU projects the project draws on, and other available knowledge the project capitalises on.

Page 8 of 22

Horizontal principles (cross-cutting issues) Please indicate which type of contribution to horizontal principles applies to the project, and justify the choice.

Horizontal principles Type of contribution Description of the contribution

Sustainable development (environment) positive

The project has clear positive impact on sustainable development, as it contributes to environmental protection via minimizing pollution load from sewage. Also it promotes energy-saving as new technologies implemented for sewage treatment are more energy-efficient than in the past.

Equal opportunity and non-discrimination neutral The project has neutral impact on equal opportunity and non-discrimination.

Equality between men and women neutral The project has neutral impact on equality between men and women.

HIV prevention neutral The project has neutral impact on HIV prevention.

Project risks

Risk 1 Start date End date Risk impact Risk likelihood

01.05.2023 30.06.2023 medium not likely

Legal problems with construction tender

Risk description

The main project risk is related to carrying out construction tender in smooth manner, as this can affect the actual construction period on the second half of the year. Possible legal challanges during or after tender can affect implementation of the project.

Risk mitigation

The risk will be mitigated through carrying out construction tender before start of the project (starting in May) and thus this risk is minimised. Project implementation period - 6 months - is sufficient for carrying out proposed works.

Page 9 of 22

WORK PLAN

Work plan per work packages

Preparation

WP Nr WP Title WP Start date WP End date WP Budget P Preparation 01.2023 01.2023 0,00

Summary description and objective of the work package including explanation of how partners will be involved (who will do what)

Project preparation costs are covered as ineligible costs and are not indicated in the budget.

Management

WP Nr WP Title WP Start date WP End date WP Budget M Management 06.2023 12.2023 12 000,00

WP responsible partner Setomaa Haldus OÜ

Partner involvement

Partners involved Name: Setomaa Management Ltd. Role: LP

Describe how the management on the strategic and operational level will be carried out in the project, specifically:

structure, responsibilities, procedures for the day-to-day management and co-ordination communication within the partnership reporting and evaluation procedures risk and quality management Indicate whether the management is foreseen to be externalised

The project management is carried out by external project manager, who has in-depth expertise in carrying out tenders in the field of water and wastewater infrastructure for 20 years. Project manager is reponsible to manager of water enterprise on the day-to-day basis, who has supervision authority over management of the project. Manager of water company is subsequently held responsible to the board of the Setomaa Haldus Ltd. Project management costs will be covered by the water enterprise itself. In additon to that, owner´s supervision services for construction will be purchased by competitive tendering for reconstruction of WWTPs under the project. Subsequent budget line has been therefore indicated. As competent specialists are hired for carrying out key services, management risks have been mitigated.

Please describe activities and outputs of each activity within the work package

Activity Number Activity Title Activity Start Date Activity End Date

Activity M.1 Project management and owner´s supervision services 06.2023 12.2023

Project management and owner´s supervision services are carried out during project eligibility period (June 2023-Dec. 2023). The project management is carried out by external project manager, whose costs are covered by water company as ineligible costs due to fact that the activities start before eligibility period of the project. Owner´s supervision services are included in the project budget as eligible costs and thus these services will be purchased by competitive tendering.

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Investment

WP Nr WP Title WP Start date WP End date WP Budget

I1 Reconstruction of Saatse and Obinitsa WWTPs 06.2023 12.2023 302 000,00

Page 10 of 22

WP responsible partner Setomaa Management Ltd.

Partner involvement

Partners involved Name: Setomaa Management Ltd. Role: LP

Description and objective of the work package

The overall goal of the project is to accomplish wastewater treatment plant (WWTP) reconstruction both in Saatse and Obinitsa villages. The project will rise sewage treatment standard in Saatse WWTP by introducing additional ditch as an additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. Investment will also contribute to preserving habitat of pond frog (Pelophylax lessonae, under protection, III category), further minimising pollution load to habitat area. The reconstruction of Obinitsa WWTP will contribute to minimising pollution load, as new WWTP will be more energy-efficient and strictly dimensioned to needs of existing sewage volume. The reconstruction will include construction of new maintenance building, electricity and automation systems, technical equipment, new sewage aeration tank and accompanying pipes. Old WWTP building structures will be demolished.  Overall number of direct beneficiaries will be 186 inhabitants in total, living in both villages (Saatse - 52, Obinitsa - 134). Overall target of the project is to preserve natural environment, by reducing effluent and sediments outflow to nature at significantly higher treatment level than previously.

Main objective of the project is reducing effluent and sediments outflow to nature and protecting shared water assets via significantly higher wastewater treatment level in Saatse and Obinitsa villages.  

Page 11 of 22

Justification Explain the need for investment to achieve project objectives and results. Describe clearly the cross-border relevance of the investment. Describe who is benefiting (e.g. partners, regions, end-users etc.) from this investment and in what way. In case of pilot investment, please clarify which problem it tackles, which findings you expect from it, how it can be replicated and how the experience coming from it will be used for the benefit of the programme area.

Saatse WWTP does not meet effluent quality standards for biological oxygen demand (BOD), chemical oxygen demand (COD) and suspended solids. In last quarters it has been inconsistent with the quality standards set by national legislation - for example in 2021, 3rd quarter: BOD 67 mg/l (required level is 40 mg/l), COD 210 mg/l (required level is 150 mg/l) and suspended solids 130 mg/l (required level is 35 mg/l), which means that norms have been exceeded even for 1,5-4 times. The main deficiency is coming from the fact that water layer of the purification pond is too deep (2 metres) - therefore natural purification of wastewater is inefficient. At the same time configuration of the purification pond doesn`t allow regulation of depth of water layer, because inflow to the pond is in the same vertical height as the outflow pipe. Therefore ditch shall be introduced to the system as additional treatment after WWTP and thus minimising effluents and sediments outflow to nature. In Obinitsa WWTP existing sewage aeration system is deficient for achieving required quality standards in wastewater treatment. Also technical equipment used in WWTP is amortised and does not meet environmental and energy-saving standards. In purification pond sludge has been settled to an extent, where it needs to be removed for re-establishing purification capability. Also electricity and automation systems are amortised and WWTP system needs to be more precisely adapted to the actual pollution load from residents. Therefore WWTP reconstruction will include construction of new maintenance building, installation of electricity and automation systems, technical equipment and setting up new sewage aeration tank with pipes. Old WWTP will be demolished. The direct beneficiaries of the project are residents of the Setomaa area - 186 inhabitants, living in both villages (Saatse - 52, Obinitsa - 134). As it affects directly Lämmijärv - the number of indirect benefiaries is 28 000 in the region.

Location of the investment Location of the physical investment Area: EE, EESTI Country: EE00, Eesti Region: EE008, Lõuna-Eesti

Saatse WWTP is situating in Saatse village, Setomaa municipality, cadastral no. 93401:001:0374 (owner: Setomaa Haldus OÜ) Saatse WWTP is very close to Russian border at proximity of 1,5 kilometres. Obinitsa WWTP is situating in Obinitsa village, Setomaa municipality, cadastral no. 46001:001:0367 (owner: Setomaa Haldus OÜ)

Risks associated with the investment Description of the risks associated with the investment, go/no-go decisions, etc. (if any)

Investment documentation Please list all documents (technical documentation and permissions (e.g. building permits)) relevant to this workpackage and attached to this project application. In case they are already available attach them to this application form, otherwise indicate when do you expect them to be available.

1. Saatse WWTP Detailed Design ("Saatse küla reoveepuhasti järelpuhastuskraav. Põhiprojekt. Keskkond ja Partnerid, Töö nr. 064/2022) 2. Saatse WWTP Building Permit (Ehitusluba 2212271/2018) 3. Saatse WWTP price calculation 4. Obinitsa WWTP Preliminary Design ("Obinitsa küla reoveepuhasti rekonstrueerimine". Keskkond ja Partnerid, Töö nr. 006/2023), incl. price calculation. 5. Ownership documents (for both WWTPs).

Ownership Who owns the site where the investment is located? - Who will retain ownership of the investment at the end of the project? - Who will take care of maintenance of the investment? How will this be done?

Both sites of the investment are owned by Setomaa Haldus OÜ, who is also applicant. Setomaa Haldus OÜ will be also the future owner and operator of the wastewater facilities. Therefore maintenance of the investment will be granted by applicant, who is water enterprise of the Setomaa municipality. The operation costs of the WWTPs will be covered by the wastewater tariffs paid by the end-users in Setomaa.

Page 12 of 22

Please describe project main outputs that will be delivered based on the activities carried out in this work package. For each project main output a programme output indicator should be chosen. Please note that they need to have the same measurement unit.

Project main output Describe your project main output

Choose a programme indicator to which the project main output will contribute

Measurement unit

Quantify your distribution

I1.1 Reconstructed Saatse WWTP

New ditch has been constructed and all works carried out.

The number of projects that are related to the purification of common water assets

Number 1,00

I1.2 Reconstructed Obinitsa WWTP

New maintenance building, electricity and automation systems, technical equipment and new sewage aeration tank with pipes are in place.

The number of projects that are related to the purification of common water assets

Number 1,00

Target groups per main outputs Who will use the main outputs

Target group involvement

Sustainability of main outputs How will the project main output be further used once the project has ended? Please describe concrete measures (including e.g. institutional structures, financial sources, etc.) taken during and after project implementation to ensure the durability of the project main output. If relevant, please explain who will be responsible and/or the owner of the output.

How will the project ensure that the project outputs are applicable and replicable by other organisations/regions/countries outside of the current partnership? Please describe to what extent it will be possible to transfer the outputs to other organisations/regions/countries outside of the current partnership.

Please describe activities and activity outputs within the work package

Activity Number Activity Title Activity Start Date Activity End Date Activity I1.1 Reconstruction works for Saatse WWTP 06.2023 12.2023

Reconstruction works according to design and building permit attached.

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Activity Number Activity Title Activity Start Date Activity End Date Activity I1.2 Reconstruction works for Obinitsa WWTP 06.2023 12.2023

Reconstruction works according to design and building permit (building permit will be issued in April 2023, after completion of detailed design).

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Communication

WP Nr WP Title WP Start date WP End date WP Budget

C Communication and visibility 06.2023 12.2023 1 000,00

Page 13 of 22

WP responsible partner Setomaa Management Ltd.

Partner involvement

Partners involved Name: Setomaa Management Ltd. Role: LP

Summary description and objectives of the workpackage including explanation of how will partners be involved of activities carried out and contribution of each partner.

The applicant will be responsible for communication activities and following visibility rules. In this role also Setomaa municipality will provide its input via disseminating information over municipal website and informing local public about project goals, timetable, activities and results. Also information will be given to wider audience in Estonia via Estonian Public Broadcasting (ERR) or nationwide media channels (Postimees, Kanal2 etc.)  EU visibility guidelines will be strictly followed and billboards will be put in place near construction sites, indicating significant financial input from European Union. The role of following visibility guidelines and communication procedures will be part of the responsibilities of the project manager.

Project specific objectives Communication objectives - What can communications do to reach a specific project objective?

Approach/Tactics - How do you plan to reach the communication objective?

Please describe activities and activity outputs within the work package

Activity Number Activity Title Activity Start Date Activity End Date Activity C.1 Start-up activities including communication 06.2023 07.2023

Information about project goals, timetable, activities and expected results will be given via municipal website to local public. Also information will be given to wider audience via Estonian Public Broadcasting (ERR) - potential contact local reporter (Mirjam Mõttus).

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Activity Number Activity Title Activity Start Date Activity End Date Activity C.2 Digital activities 06.2023 12.2023

Information about project goals, timetable, activities and expected results will be given via municipal website to local public.

Activity Output Number Activity Output Title Activity Output

Targetvalue Activity Output Date

Periods

Period number Duration Start Date End Date Reporting Date 0 0 months 02.01.2023 02.01.2023 29.12.2023

1 6 months 30.06.2023 29.12.2023 29.12.2023

Target groups

Target group/-s

Please further specify the target group/s (e.g., bilingual elementary schools, environmental experts, etc.).

Target value Please indicate the size of the target group you will reach.

Infrastructure and (public) service provider

The details of the project will be shared with other infrastructure and public service providers. The target is to reach some 30 public water service providers via sharing information with The Estonian Waterworks Association (EVEL).

30,00

General public

The information about the project will be shared via National Public Broadcasting (ERR) and we reach probably to 300,000 residents of Estonia.

300 000,00

Page 14 of 22

PROJECT BUDGET

Partner Budget

Name of partner organisation Setomaa Haldus OÜ

Partner ID 1

Legal status private

Type of partner Other bodies that are governed by public legal acts, (e.g., municipal and national enterprises, trade unions, medical institutions, museums, etc.)

Co-financing source EE-RU CBC

Inside programme area yes

Partner Budget Amount Co-financing rate

Programme co-financing 283 500,00 90,00 %

Partner contribution 31 500,00 10,00 %

Partner total eligible budget 315 000,00 100.00 %

Origin of partner contribution (indicative)

Source of contribution Legal status % of total partner contribution Amount

Setomaa Haldus OÜ private 100,00 % 31 500,00

Sub-total public contribution 0,00 % 0,00

Sub-total private contribution 100,00 % 31 500,00

Total 100,00 % 31 500,00

Partner total target value 31 500,00

Page 15 of 22

Office and administration Description Unit type WP P - preparation

Period No. of units Price per unit Total Period -1 1,00 0,00 0,00

Total 0,00

Office and administration Description Unit type WP C - communication

Period No. of units Price per unit Total Period -1 1,00 0,00 0,00

Total 0,00

External expertise and services Description Unit type WP C - communication

Period No. of units Price per unit Total External expertise and services

Communication services will be purchased as a service for whole duration of the project. Period -1 1,00 0,00 1 000,00

Total 1 000,00

Investment Description Unit type WP P - preparation Period No. of units Price per unit Total

Reconstruction of Saatse WWTP Period -1 1,00 0,00 0,00

Reconstruction of Obinitsa WWTP Period -1 1,00 0,00 0,00

Owner`s Supervision services Period -1 1,00 0,00 0,00

Total 0,00

Page 16 of 22

Investment Description Unit type WP M - management Period No. of units Price per unit Total

Owner`s Supervision services Separate procurement will be carried out. Period -1 1,00 0,00 12 000,00

Total 12 000,00

Investment Description Unit type WP I1 - investment Period No. of units Price per unit Total

Reconstruction of Saatse WWTP

Separate procurement will be carried out for Saatse WWTP reconstruction. Period -1 1,00 0,00 49 820,00

Reconstruction of Obinitsa WWTP

Separate procurement will be carried out for Obinitsa WWTP reconstruction. Period -1 1,00 0,00 252 180,00

Total 302 000,00

Investment Description Unit type WP C - communication Period No. of units Price per unit Total

Reconstruction of Saatse WWTP Period -1 1,00 0,00 0,00

Total 0,00

Page 17 of 22

Activities outside the programme area

Please describe and justify the location of activities, which take place outside the eligible programme area.

There are no activities outside the programme territory.

Total budget of activities to be carried out outside the programme area 0,00

Total EE-RU CBC for activities outside 0,00

% of total EE-RU CBC (indicative) 0,00 %

Page 18 of 22

PROJECT BUDGET OVERVIEW

Project budget per co-financing source (fund) - breakdown per partner

Partner Programme co-financing Contribution Total eligiblePartner

Abbreviation Country EE-RU CBC EE-RU CBC co-financing(%)

Percentage of total EE-RU CBC

Public Contribution

Private Contribution Total Contribution

SetoHaldus EESTI 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Sub-total For Partners Inside 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Sub-total For Partners Outside 0,00 --- 0,00 % 0,00 0,00 0,00 0,00

Total 283 500,00 90,00 % 100,00 % 0,00 31 500,00 31 500,00 315 000,00

Project budget - overview per partner/ per budget line

Partner Abbreviation

Co-financing Source Staff costs Office and

administration

Travel and accommodatio

n

External expertise and

services Equipment Investment Total Budget Net Revenue Total Eligible

SetoHaldus EE-RU CBC 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Total 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 0,00 % 0,00 % 0,31 % 0,00 % 99,68 % 100,00 % 0,00% Of Total Budget

100,00% Of Total Budget

Co-financing Source Staff costs Office and

administration Travel and

accommodation

External expertise and

services Equipment Investment Sum Financed

Budget Decreasing Net

Revenue Total Financed

Budget

EE-RU CBC 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Page 19 of 22

Project budget - overview per partner/ per period Partner Abbreviation Co-financing Source Period 0 Period 1 Total Budget Net Revenue Total Eligible

SetoHaldus EE-RU CBC 0,00 0,00 315 000,00 0,00 315 000,00

Total 0,00 0,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 0,00 % 100,00 % 0,00% Of Total Budget 100,00% Of Total Budget

Co-financing Source Period 0 Period 1 Total Financed Budget

EE-RU CBC 0,00 0,00 315 000,00

Page 20 of 22

Project budget - overview per partner/ per WP Partner

Abbreviation Co-financing

Source WP P WP M WP I1 WP C Total Budget Net Revenue Total Eligible

SetoHaldus EE-RU CBC 0,00 12 000,00 302 000,00 1 000,00 315 000,00 0,00 315 000,00

Total 0,00 12 000,00 302 000,00 1 000,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 3,80 % 95,87 % 0,31 % 100,00 % 0,00% Of Total Budget

100,00% Of Total Budget

Co-financing Source WP P WP M WP I1 WP C Total Financed Budget

EE-RU CBC 0,00 12 000,00 302 000,00 1 000,00 315 000,00

Page 21 of 22

Project budget - overview per WP/ per budget line

WP Number Staff costs Office and administration

Travel and accommodation

External expertise and

services Equipment Investment Total Budget Net Revenue Total Eligible

WP P 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

WP M 0,00 0,00 0,00 0,00 0,00 12 000,00 12 000,00 0,00 12 000,00

WP I1 0,00 0,00 0,00 0,00 0,00 302 000,00 302 000,00 0,00 302 000,00

WP C 0,00 0,00 0,00 1 000,00 0,00 0,00 1 000,00 0,00 1 000,00

Total 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Percentage Of Total Budget 0,00 % 0,00 % 0,00 % 0,31 % 0,00 % 99,68 % 100,00 % 0,00% Of Total

Budget 100,00% Of Total

Budget

Co-financing Source Staff costs Office and

administration Travel and

accommodation

External expertise and

services Equipment Investment Sum Financed

Budget Decreasing Net

Revenue Total Financed

Budget

EE-RU CBC 0,00 0,00 0,00 1 000,00 0,00 314 000,00 315 000,00 0,00 315 000,00

Page 22 of 22

Project budget - overview per WP/ per period WP Number Period 0 Period 1 Total Budget Net Revenue Total Eligible

WP P 0,00 0,00 0,00 0,00 0,00

WP M 0,00 0,00 12 000,00 0,00 12 000,00

WP I1 0,00 0,00 302 000,00 0,00 302 000,00

WP C 0,00 0,00 1 000,00 0,00 1 000,00

Co-financing Source Period 0 Period 1 Total Financed Budget

EE-RU CBC 0,00 0,00 315 000,00

Total EU Funds 0,00 0,00 315 000,00

1

Estonian EU external border programme

2014-2020

Grant Contract

for the implementation of the project (one beneficiary)

ER274 Improving sewage treatment in Setomaa WWTPs

(SetoWWTP)

2

Preamble

This Grant Contract („the Contract“) is concluded between State Shared Service Centre

(registry code 70007340), Lõkke 4, Tallinn 10122, Estonia

acting as the Managing Authority („MA“) of the Estonian EU external border programme

2014-20201 („Programme“) represented by Mrs Külli KAARE, Acting Head of the Managing

Authority

of the one part,

and

Setomaa Management Ltd. (in original language: Setomaa Haldus OÜ) (reg.nr. 10322845,

private body), Pikk 30, Värska 64001, Estonia, represented by Mr Raul LEPP, board

member

Acting as the Lead Beneficiary (the "Beneficiary”)

of the other part,

(the Parties)

have agreed for the implementation of the project ER274 Improving sewage treatment in

Setomaa WWTPs (SetoWWTP) (“the Project”) as follows:

1 In accordance with the Commission Implementing Decision C(2014)7172 the legal name of the Programme is

Estonia-Russia Cross Border Cooperation Programme 2014-2020, however due to suspension of the Financing

Agreement between the European Unioin, the Russian Federation and the Republic of Estonia, and JMC decision

made on 23 May 2022 the Estonia-Russia CBC Programme 2014-2020 is temporary called Estonian EU external

border programme.

3

Article 1 – Legal Framework

1. The Lead Beneficiary shall guarantee that the Project referred to in Article 2 is

implemented and managed in accordance with the following regulations and rules as well

as the horizontal policies of the European Union and national legislation:

1.1 National rules of the Republic of Estonia

1.2 European Union legal acts:

1.2.1 Regulation (EC) No 232/2014 of the European Parliament and of the Council

of 11 March 2014 (ENI Regulation);

1.2.2 Council Regulation (EC, EURATOM) No 966/2012 on the Financial Regulation

that is applicable to the general budget for the European Communities;

1.2.3 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the

protection on the European Communities financial interests;

1.2.4 Regulation No 236/2014 of the European Parliament and of the Council of 11

March 2014 laying down common rules and procedures for the implementation of

the Union’s instruments for financing external action;

1.2.5 Commission Implementing Regulation No 897/2014 of 18 August 2014 laying

down implementing rules for cross-border cooperation programmes financed under

Regulation No 232/2014 of the European Parliament and of the Council laying down

general provisions establishing a European Neighbourhood Instrument

(Implementing Rules);

1.2.6 Regulation (EU) 2016/679 of the European Parliament and of the Council of

27 April 2016 on the protection of natural persons with regard to the processing of

personal data and on the free movement of such data, and repealing Directive

95/46/EC (General Data Protection Regulation).

1.2.7 Regulation (EU) 2022/2192 of the European Parliament and of the Council of

9 November 2022 laying down specific provisions for the 2014-2020 cooperation

programmes supported by the European Neighbourhood Instrument and under the

European territorial cooperation goal, following programme implementation

distruption

1.3 Estonia - Russia Cross Border Cooperation Joint Operational Programme 2014 -

2020 approved by the European Commission on 18 December 2015, decision No

C(2015)9193, last changes approved on 16.12.2020.

1.4 Guidelines for the 6th Call for proposals.

1.5 Project Implementation Guidelines and annexes thereto.

Article 2 — Purpose

2.1 The purpose of this Contract is the award of a grant by the MA for the implementation

of the Project no ER274 entitled: Improving sewage treatment in Setomaa WWTPs

(SetoWWTP) attached as Annex I.

2.2 The Contract is signed in accordance with the decision of the Joint Monitoring

Committee (the “JMC”) of the Programme of 25-26 April 2023 and with the decision of the

MA No 43/2023 to award the grant to the Project.

2.3 The Lead Beneficiary (the “Beneficiary”) will be awarded the grant on the terms and

conditions set out in this Contract and Annex I, which the Beneficiary hereby declares it

has noted and accepted.

2.4 The Beneficiary accepts the grant and undertakes to be responsible for carrying out

the Project.

4

Article 3 — Implementation period of the Project

3.1 This Contract shall enter into force on the date when the second of the two Parties

signs.

3.2 The Project implementation period starts on 30.06.2023 and ends on 29.12.2023.

Starting date of the Project implementation period can be either:

1. the day following that on which the Contract is signed by both the Beneficiary

and MA;

2. a later date agreed in the Contract, but no later than 1 July 2023.

3.3 The execution period of this Contract shall end when the payment of the balance is

made by the MA unless postponed in accordance with Article 18.4 of this Contract.

Article 4 — Financing the Project

4.1 The total eligible costs of the Project are estimated at EUR 315 000,00, as set out in

Annex I.

4.2 The MA undertakes to finance a maximum amount of EUR 283 500,00 from the

Programme budget.

4.3 The grant is further limited to 90% of the total actually incurred eligible cost of the

Project.

4.4 To the activities of the Beneficiay of the Republic of Estonia, the following State aid or

de minimis aid are applicable:

Name of

the

Project

partner

Activity Total cost

of the

activity

(EUR) (incl.

VAT)

Eligible

costs of the

activity

(EUR)

Aid

inte

nsity

(%)

Aid amount

(EUR)

Relevant

State

aid/de

minimis

aid

regulatio

n and

article

Setomaa

Manage

ment

Ltd.

Obinitsa WWTP

reconstruction

302,616.00 252,180.00 90.00 226,962.00 Regulation (EU) No 651/2014, Article 56

Saatse WWTP

reconstruction

59,784.00 49,820.00 90.00 44,838.00 De minis aid

Owner`s

supervision

services

14,400.00 12,000.00 90.00 10,800.00 De minimis aid

Communication 1,200.00 1,000.00 90.00 900.00 Regulation (EU) No 651/2014, Article 56

4.5 On the basis of this Contract the Beneficiary ensures that they may grant indirect de

minimis aid to the participants of Project activities. In this case the Beneficiary collects

data from the receivers of indirect de minimis aid, checks that any new grant of aid does

not exceed the relevant ceiling and informs the undertaking which receives the aid in

writing of the prospective amount of the aid expressed as a gross grant equivalent and of

its de minimis character, making reference to the respective EU regulation and citing its

5

title and publication reference in the Official Journal of the European Union. The Beneficiary

must inform participants of the Project activities about becoming subjects to de minimis

aid before the Project activity takes place.

4.6 The Beneficiary of the public sector of the Republic of Estonia that receives state aid

or de minimis aid above Programme co-financing rate is considered as state aid or de

minimis aid grantors for themself, unless their co-financing comes from external financing,

in a form, which is free of any public support (e.g from other economic activities or loans).

4.7 The flat-rate of eligible indirect costs for the Beneficiary is 0%, as calculated according

to the point 2.5.6.2 of the Implementation Guidelines.

Costs declared under flat-rate shall satisfy the eligibility criteria set out in Article 20.1 and

20.2. They do not need to be backed by accounting or supporting documents.

4.8 The amounts transferred but not used by the Beneficiary have to be returned to the

MA.

Article 5 — Communication with Programme authorities

5.1 Any communication with the Programme authorities related to this Contract shall be

effected via electronic monitoring system (eMS), https://ems.estoniarussia.eu.

Article 6 — Annexes

6.1 The following documents form an integral part of the Contract:

 Latest full Project application with annexes approved by the JMC/MA/JTS and

uploaded in eMS

6.2 In the event of a conflict between the provisions of this Contract and the Annex thereto,

the Contract shall take precedence.

Article 7 — General provisions

General principles

7.1 The Beneficiary and the MA are the only Parties to this Contract.

Data protection

7.2 Any personal data will be processed solely for the purposes of the performance,

management and monitoring of this Contract by the MA and may also be passed to the

bodies charged with monitoring or inspection tasks under the law of the European Union

and, the Republic of Estonia. If the Beneficiary has any queries concerning the processing

of personal data, it shall address them to the MA. The MA and the Beneficiary have to

undertake all measures to fulfil the requirements of EU General Data Protection Regulation

and national legislation. The Beneficiary and the MA will have right of recourse at any time

to the European Data Protection Supervisor.

7.3 The Beneficiary shall ensure that personal data of natural persons participating in the

Programme shall be collected, stored and transferred, with their consent, in databases of

the Programme Authorities and management bodies. The Beneficiary shall limit access and

use of personal data to that strictly necessary for the performance, management and

monitoring of this Contract and shall adopt all appropriate technical and organisational

security measures necessary to preserve the strictest confidentiality and limit access to

this data.

6

Responsibilities of the Beneficiary :

7.4 setting up and maintaining effective, efficient and reliable Project implementation

system (strategic, daily operational and financial management), i.e.: ensuring efficient use

of the Project’s resources; ensuring that these tasks are subsequently fulfilled; ensuring

proper communication with wider public, whererelevant;

7.5 representing the Project – the Beneficiary serves as a contact point to the MA, JMC,

National Authority (the NA), Audit Authority (the AA) and Joint Technical Secretariat (JTS)

concerning the implementation of the Project and should ensure continuous communication

with the Programme (JTS);

7.6 progress of the Project as far as its financial and physical execution is concerned, and

in particular, for ensuring the delivery of outputs and results in line with the Project

application;

7.7 establishing adequate monitoring and evaluation system of the Project that ensures

timely delivery of Project outputs and results in a proper quality;

7.8 ensuring that the MA, JTS, JMC members, as well as independent assessors authorised

by the Programme authorities and representatives of the European Commission can have

access to all Project documents, sites and premises when carrying out monitoring or

evaluation missions, on-the-spot checks and audits; Access shall be granted on conditions

of strict confidentiality with regard to third parties, without prejudice to public law

obligations to which they are subject;

7.9 timely and correct reporting in compliance with Article 8 of this Contract;

7.10 requesting and receiving payments from the MA;

7.11 respecting and observing Programme rules and requirements, the EU, EURATOM, and

national legislation concerning financial management and controls, public procurement,

rules on nationality and origin, information and publicity and state aid rules;

7.12 ensuring the correctness of the Project accounting system and documents. The

Beneficiary shall have separate accounting system or an adequate accounting code for the

Project funds and expenditures.

7.13 ensuring that the Beneficary`s expenditure has been incurred, is supported by

invoices or documented by accounting documents and adequate supporting documents

understandable to third parties and has actually been paid out by the Beneficiary in

accordance with the Implementation Guidelines and no later then 31 December 2023.

7.14 ensuring that the expenditure presented by the Beneficiary has been incurred for the

purpose of implementing the Project and corresponds to the application and verify that the

expenditures has been examined by public officer;

7.15 ensuring production and maintenance of all documentary evidence required for control

and audit purposes on the Beneficiary's level;

7.16 ensuring timely and proper closure of the Project;

7.17 repayment of the amounts to the MA unduly paid according to the Financial Correction

Decision;.

7.18 ensuring adequate visibility of the EU contribution to the project, as well the

contribution by the participating country, Estonia, in order to strengthen public awareness

of the actions being taken by Estonia and EU, and to create a consistent image for the

support by Estonia, and EU in the project.

7

Article 8 — Obligations related to reporting

8.1 As project duration covers only 6 months the Beneficiary must draw up only Final

Report.

8.2 The Beneficiary prepares an individual final report and fills in information in eMS within

30 calendar days after the end of the project. An inividual final report shall consist of

narrative and financial report on the costs incurred and paid in the reporting period;

8.3 The public officer shall examine within 60 calendar days whether the costs declared by

the Beneficiary and the revenue of the Project are real, accurately recorded and eligible

under this Contract and produce an expenditure verification report.

8.4 The Beneficiary prepares a consolidated final report on the basis of the verified

individual report and submits it to the JTS via eMS. The consolidated report shall be

submitted to the JTS by the Beneficiary within 30 calendar days after the individual final

report is verified by the public officer.

The consolidated report shall contain all necessary information on achievement of project

outputs, a detailed description of the conditions in which the project was carried out,

information on the steps taken to ensure the visibility of Programme financing, information

with which to evaluate the project's outputs, the proof of the transfers of ownership (if

applicable), etc.

The JTS and MA have 25 working days to check and approve the consolidated report.

8.5 The Beneficiary shall provide the MA with all required information on the

implementation of the Project. The report shall describe the implementation of the Project

according to the activities envisaged, difficulties encountered and measures taken to

overcome problems, eventual changes introduced, as well as the degree of achievement

of its results (impact, outcomes or outputs) as measured by corresponding indicators. The

reports shall be drafted in such a way as to allow monitoring of the objective(s), the means

envisaged or employed and the budget details for the Project. The level of detail in any

report should match that of the Project and of the budget for the Project.

8.6 The individual and consolidated final reports shall be prepared in eMS in English and in

accordance with the Implementation Guidelines.

The final reports shall:

a) be submitted via eMS and cover the Project as a whole, regardless of which part

of it is financed by the MA;

b) consist of a narrative and a financial part;

c) provide a full account of all aspects of the Project's implementation for the period

covered the qualitative and quantitative information needed to demonstrate the

fulfilment of the conditions established in this Contract, incl. flat rate amount;

d) include the results within an updated table based on the logical framework matrix

including the results achieved by the Project as measured by their corresponding

indicators; agreed baselines and targets, and relevant sources of verification;

e) be drafted in the currency of euro (EUR) and in the English language;

f) include information about communication and visibility activities respecting

requirements as provided by Article 12;

g) include any relevant reports, publications, press releases and updates related to

the Project.

h) include the proofs of the transfers of ownership as referred to in Article 13 (if

applicable).

8.7 The public officer, the JTS and the MA may ask the Beneficiary complementary

information on the reports if necessary. In this case the Beneficiary is given a concrete

8

time-frame for submitting this information. The time limit for approving the reports will

start counting again as of the day of the receipt of this information.

8.8 If the Beneficiary fails to provide any report or fails to provide any additional

information requested by the Programme authorities within the set deadline without an

acceptable and written explanation of the reasons, the MA may terminate this Contract

according to Article 18.2 (a) and (f) of this Contract.

Article 9 — Liability

9.1 The MA cannot under any circumstances or for any reason whatsoever be held liable

for damage or injury sustained by the staff or property of the Beneficiary while the Project

is being carried out or as a consequence of the Project. The MA cannot, therefore, accept

any claim for compensation or increases in payment in connection with such damage or

injury.

9.2 The Beneficiary shall assume sole liability towards third parties related to Beneficiary,

including liability for damage or injury of any kind sustained by it while the Project is being

carried out or as a consequence of the Project. The Beneficiary shall discharge the MA of

all liability arising from any claim or action brought as a result of an infringement of rules

or regulations by its employees or individuals for whom those employees are responsible,

or as a result of violation of a third party’s rights.

Article 10 — Conflict of interest and good conduct

10.1 The Beneficiary shall take all necessary measures to prevent or end any situation that

could compromise the impartial and objective performance of this Contract. Such conflict

of interests may arise in particular as a result of economic interest, political or national

affinity, family or emotional ties, or any other relevant connection or shared interest.

10.2 Any conflict of interests which may arise during performance of this Contract must be

notified in writing to the MA without delay. In the event of such conflict, the Beneficiary

shall immediately take all necessary steps to resolve it.

10.3 The MA reserves the right to verify that the measures taken are appropriate and may

require additional measures to be taken if necessary.

10.4 The Beneficiary shall ensure that Project staff, including its management, is not placed

in a situation which could give rise to conflict of interests. Without prejudice to its obligation

under this Contract, the Beneficiary shall ensure replacement, immediately and without

compensation from the MA, of any member of Project staff in such a situation.

10.5 The Beneficiary shall ensure that during Project implementation all Project staff

respect human rights and applicable environmental legislation including multilateral

environmental agreements, as well as internationally agreed core labour standards.

Article 11 — Confidentiality

11.1 The MA and the Beneficiary undertake to preserve the confidentiality of any

information, notwithstanding its form, disclosed in writing or orally in relation to the

implementation of this Contract and identified in writing as confidential until at least 5

years after the payment of the balance or according to time limit stipulated in national

legislation.

11.2 The Beneficiary shall not use confidential information for any aim other than fulfilling

their obligations under this Contract unless otherwise agreed with the MA.

11.3 The Parties who have authorised access to the documents related to the Project, shall

maintain the same level of confidentiality.

9

Article 12 — Visibility

12.1 Unless the MA agrees or requests otherwise, the Beneficiary shall take all necessary

steps to publicise the fact that the Programme has co-financed the Project. Such measures

shall comply with the Communication and Visibility Guidelines for the implementation of

projects in line with Communication and Visibility Instructions for beneficiaries from the

Republic of Estonia.

12.2 In particular, the Beneficiary shall mention the Programme´s financial contribution in

information given to the final recipients of the Project, in its reports, and in any dealings

with the media. It shall display the Programme logo wherever appropriate and as specified

in the Communication and Visibility Instructions for beneficiaries from the Republic of

Estonia.

12.3 Any notice or publication by the Beneficiary concerning the Project, including those

given at conferences or seminars, shall specify that the Project has received Programme

funding. Any publication by the Beneficiary in whatever form and by whatever medium,

including the internet, shall include the disclaimer as specified in Communication and

Visibility Instructions for beneficiaries from the Republic of Estonia.

12.4 The Beneficiary authorises the NA, MA, JTS, members of the JMC and the European

Commission to publish its name and address, nationality, the purpose of the grant, duration

and location as well as the maximum amount of the grant and the rate of funding of the

Project's costs, as laid down in Article 3 of this Contract. Derogation from publication of

this information may be granted if it could endanger the Beneficiary or harm their interests.

Article 13 — Ownership/use of results and assets

13.1 Ownership of, and title and intellectual and industrial property rights to, the Project´s

results, reports and other documents relating to it will be vested in the Beneficiary.

13.2 Without prejudice to Article 13.1, the Beneficiary grant the NA, MA, JTS, members

of the JMC and the European Commission the right to use freely and as it sees fit, and in

particular, to store, modify, translate, display, reproduce by any technical procedure,

publish or communicate by any medium all documents deriving from the Project whatever

their form, provided it does not thereby breach existing industrial and intellectual property

rights.

13.3 The Republic of Estonia and the European Commission shall be entitled to use, publish

or disclose to third parties any study produced in the framework of the Project.

13.4 In case of the transfer of ownership, industrial and intellectual property rights for

outputs and results the transfer shall be done according to the national legislation. The

sustainability requirements defined in the Project should not be jeopardised and transfer

of the ownership should not result in a profit for the Beneficiary.

13.5 According to the Article 39.3 of the Implementing Rules, any Project including an

infrastructure component shall repay the Union contribution as well as the contribution of

the Republic of Estonia if, within five years of the Project closure or within the period of

time set out in state aid rules, where applicable, it is subject to a substantial change

affecting its nature, objectives or implementation conditions which would result in

undermining its original objectives. Sums unduly paid in respect of the Project shall

be recovered by the MA in proportion to the period for which the requirement has not been

fulfilled.

13.6 The MA should be notified about changes of ownership of the Project results

during implementation period of the Project and five years after completion of the Project.

13.7 The Beneficiary shall ensure that it has all rights to use any pre-existing intellectual

property rights necessary to implement this Contract.

10

Article 14 — Evaluation/monitoring of the Project

14.1 The monitoring of implementation of the project shall be carried out by the MA and

JTS. The monitoring will be performed based on the result-oriented evaluation. The

beneficiary shall be ready to report on the outputs and results achieved by the project in

any point of the project implementation.

14.2 If the European Commission carries out an interim or ex post evaluation or a

monitoring mission, the Beneficiary shall undertake to provide it and/or the persons

authorised by it as well as the NAs, MA, JTS and authorised independent assessors access

to the Project site as well as with the documents or information necessary for the evaluation

or the monitoring mission. Access should be granted on conditions of strict confidentiality

with regard to third parties without prejudice to public law obligations to which they are

subject.

14.3 If the construction/ renovation works are planned in the Project, within 2 weeks after

the contract on construction/renovation works is signed within the Project, the Beneficiary

shall inform JTS of the construction/renovation works including the start date of the works.

In addition, the Beneficiary should inform the JTS prior to other major Project events as

well.

14.4 If either the Beneficiary, or the Programme carries out or commissions an evaluation

in the course of the Project, it shall provide the other with a copy of the evaluation report.

Article 15 — Amendment of the Contract

15.1 The Contract and the Project can be amended as stipulated in Article 5.10 of the

Implementation Guidelines.

15.2 The amendment may not have the purpose or the effect of making changes to this

Contract that would call into question the grant award decision or be contrary to the equal

treatment of applicants. The maximum grant referred to in Article 4.2 of this Contract may

not be increased.

15.3 The responsibility of eligibility of changes lies down on Beneficiary and to be examined

by auditors.

Article 16 — Contracts with suppliers/service providers

16.1 In procurement procedures, the Public procurement act of the Republic of Estonia has

to be followed.

Article 17 — Extension and suspension

Extension

17.1 Programme level eligibility for project implementation ends on 31 December 2023,

meaning that all project activities have to be completed, costs incurred and payments

made by that date without possibility for extension.

Suspension by the Beneficiary

17.2 The Beneficiary may suspend implementation of the Project, or any part thereof, if

exceptional circumstances, notably of force majeure, make such implementation

excessively difficult or dangerous. The Beneficiary shall inform the MA without delay,

stating the nature, probable duration and foreseeable effects of the suspension.

17.3 The Beneficiary or the MA may then terminate this Contract in accordance with Article

17.4 If the Contract is not terminated, the Beneficiary shall endeavour to minimise the

time of its suspension and any possible damage and shall resume implementation once

circumstances allow, informing the MA accordingly.

11

Suspension by the MA

17.5 The MA may request the Beneficiary to suspend implementation of the Project, or any

part thereof, if exceptional circumstances, notably of force majeure, make such

implementation excessively difficult or dangerous. To this purpose, the MA shall inform the

Beneficiary stating the nature and probable duration of the suspension.

17.6 The Beneficiary or the MA may then terminate this Contract in accordance with Article

17.7. If the Contract is not terminated, the Beneficiary shall endeavour to minimise the

time of its suspension and any possible damage and shall resume implementation once

circumstances allow and after having obtained the approval of the MA.

17.8 The MA may also suspend this Contract or the participation of a Beneficiary in this

Contract if the MA has evidence that, or if, for objective and well justified reasons, the MA

deems necessary to verify whether presumably:

a) the grant award procedure or the implementation of the Project have been

subject to substantial errors, irregularities or fraud;

b) the Beneficiary has breached any substantial obligation under this Contract.

17.9 The Beneficiary shall provide any requested information, clarification or document

within 30 days of receipt of the requests sent by the MA. If, notwithstanding the

information, clarification or document provided by the Beneficiary, the award procedure or

the implementation of the grant prove to have been subject to substantial errors,

irregularities, fraud, or breach of obligations, then the MA may terminate this Contract

according to Article 18.2(h).

Force majeure

17.10 “Force majeure” shall mean any unforeseeable and exceptional situation or event

beyond the Parties’ control which prevents either of them from fulfilling any of their

obligations, not attributable to error or negligence on their part (or the part of their

contractors, agents or employees) and proves insurmountable in spite of all due diligence.

Defects in equipment or material or delays in making them available, labour disputes,

strikes or financial difficulties cannot be invoked as force majeure.

17.11 None of the Parties shall be held liable for breach of its obligations under this

Contract if it is prevented from fulfilling them by circumstances of force majeure, provided

that it takes measures to minimise any possible damage and that the other Parties are

duly informed.

Article 18 — Termination of the Contract

18.1 In the cases foreseen in Article 17.2 and 17.4, if the Beneficiary or the MA believes

that this Contract can no longer be executed effectively or appropriately, it shall duly

consult the other. Failing agreement on a solution, the Beneficiary or the MA may terminate

this Contract by serving two months written notice, without being required to pay

indemnity.

Termination by the MA

18.2 Without prejudice to Article 18.1, in the following circumstances the MA may, after

having duly consulted the Beneficiary, terminate this Contract without any indemnity on

its part when:

a) Beneficiary fails, without justification, to fulfil any substantial obligation, after

being given notice by letter to comply with those obligations, still fails to do so or

to furnish a satisfactory explanation within 30 days of receipt of the letter;

b) Beneficiary or any person that assumes unlimited liability for the debts of the

Beneficiary is bankrupt, subject to insolvency or winding up procedures, is having

its assets administered by a liquidator or by the courts, has entered into an

arrangement with creditors, has suspended business activities, or is in any

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analogous situation arising from a similar procedure provided for under any national

law or regulations relevant to the Beneficiary;

c) Beneficiary, or any related entity or person, have been found guilty of an offence

concerning their professional conduct proven by any means;

d) it has been established by a final judgment or a final administrative decision or

by proof in possession of the MA that the Beneficiary has been guilty of fraud,

corruption, involvement in a criminal organisation, money laundering or terrorist

financing, terrorist related offences, child labour or other forms of trafficking of

human beings or has committed an irregularity;

e) a change to Beneficiary’s legal, financial, technical, organisational or ownership

situation or the termination of the participation of Beneficiary substantially affects

the implementation of this Contract or calls into question the decision awarding the

grant;

f) Beneficiary or any related person, are guilty of misrepresentation in supplying the

information required in the award procedure or in the implementation of the Project

or fail to supply – within the deadlines set under this Contract - any information

related to the Project required by the MA;

g) Beneficiary has not fulfilled obligations relating to the payment of social security

contributions or the payment of taxes in accordance with the legal provisions of the

country in which it is established;

h) the MA has evidence that a Beneficiary or any related entity or person, has

committed substantial errors, irregularities or fraud in the award procedure or in

the implementation of the Project;

i) Beneficiary is subject to an administrative penalty referred to in Article 18.8;

j) the MA has evidence that Beneficiary is subject to a conflict of interests;

k) the MA has evidence that Beneficiary has committed systemic or recurrent errors

or irregularities, fraud, or serious breach of obligations under other grants financed

by the Programme and awarded to that specific Beneficiary under similar conditions,

provided that those errors, irregularities, fraud or serious breach of obligations have

a material impact on this grant.

The cases of termination under points (b), (c), (d), (h), (j) and (k) may refer also to

persons who are members of the administrative, management or supervisory body of the

Beneficiary and/or to persons having powers of representation, decision or control with

regard to the Beneficiary.

18.3 In the cases referred to in points (c), (f), (h) and (k) above, a related person means

any physical person with powers of representation, decision-making or control in relation

to the Beneficiary. Any related entity means, in particular, any entity which has a majority

of the shareholders’ or members’ voting rights or the right to exercise a dominant influence

over another enterprise according to the national legislation.

End date

18.4 The payment obligations of the Programme under this Contract shall end 6 months

after the implementation period laid down in Article 3 of this Contract, unless this Contract

is terminated according to Article 18.

The MA may postpone this end date, so as to be able to fulfil its payment obligations, in

all cases where the Beneficiary has submitted a payment request in accordance with

contractual provisions or, in case of dispute, until completion of the dispute settlement

procedure provided for in Article 19. The MA shall notify the Beneficiary of any

postponement of the end date.

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Effects of Termination

18.5 Upon termination of this Contract the Beneficiary shall take all immediate steps to

bring the Project to a close in a prompt and orderly manner and to reduce further

expenditure to a minimum.

Without prejudice to Article 20, the Beneficiary shall be entitled to payment only for the

part of the Project carried out, excluding costs relating to current commitments that are

due to be executed after termination.

To this purpose, the Beneficiary shall introduce a payment request to the MA within the

time limit set by Article 21.3 starting from the date of termination.

In the event of termination according to Article 18.1, the MA may agree to reimburse the

unavoidable residual expenditures incurred during the notice period, provided, the first

paragraph of Article 18.7 has been properly executed.

In the cases of termination foreseen in Article 18.2 a), c), d), f), h) and k) the MA may,

after having properly consulted the Beneficiary and depending on the gravity of the failings,

request full or partial repayment of amounts unduly paid for the Project.

Administrative sanctions

18.6 Without prejudice to the application of other remedies laid down in this Contract, a

sanction of exclusion from all contracts and grants financed by the Programme, may be

imposed, after an adversarial procedure, upon the Beneficiary who, in particular,

a) is guilty of grave professional misconduct, has committed irregularities or has

been found in serious breach of its contractual obligations. The duration of the

exclusion shall not exceed the duration set by final judgement or final administrative

decision or, in the absence thereof, three years;

b) is guilty of fraud, corruption, participation in a criminal organisation, money

laundering, terrorist-related offences, child labour or trafficking of human beings.

The duration of the exclusion shall not exceed the duration set by final judgement

or final administrative decision or, in the absence thereof, five years;

18.7 Where the MA is entitled to impose financial penalties, the financial penalties and

corrections shall be done according to thefinancial correction decision. The MA may deduct

such financial penalties from any sums due to the Beneficiary or call on the appropriate

guarantee.

18.8 The decision to impose administrative sanctions may be published on a dedicated

internet-site, explicitly naming the Beneficiary.

18.9 The abovementioned administrative sanctions may also be imposed to persons who

are members of the administrative, management or supervisory body of theBeneficiary, to

persons having powers of representation, decision or control with regard to the Beneficiary.

Article 19 — Applicable law and procedures for complaints

19.1 Without prejudice to the applicable European law, this Contract shall be governed by

the law of the country of the Republic of Estonia.

19.2 The Parties to this Contract shall do everything possible to settle amicably any dispute

arising between them during the implementation of this Contract. To that end, they can

meet each other at either’s request or communicate their positions in writing. In case of

written communication the reply has to be provided within 30 days as of the receipt of the

written notice.

19.3 The administrative decisions can be appealed within the framework of a pre-trial

process according to the General Rules of Procedure for Complaints.

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Financial provisions

Article 20 — Eligible costs

Cost eligibility criteria

20.1 Eligible costs are actual costs incurred by the Beneficiary which meet all the following

criteria:

1) they are incurred and paid during the implementation or preparation period of the

Project as specified in Article 3 and 20.1 of this Contract. In particular:

a) costs relating to services and works shall relate to activities performed

during the implementation period. Costs relating to supplies shall relate to delivery

and installation of items during the implementation period. Signature of a contract,

placing of an order, or entering into any commitment for expenditure within the

implementation period for future delivery of services, works or supplies after expiry

of the implementation period do not meet this requirement;

b) all costs incurred should be paid as latest on 31 December 2023;

c) procedures to award contracts, as referred to in Article 16 of this Contract,

may have been initiated and contracts may be concluded by the Beneficiary before

the start of the implementation period of the Project, provided the provisions of

Article 16 have been respected;

2) they are indicated in the Project's estimated overall budget;

3) they are necessary for the Project implementation;

4) they are identifiable and verifiable, in particular being recorded in the accounting

records of the Beneficiary and determined according to the accounting standards and the

usual cost accounting practices applicable to the Beneficiary;

5) they comply with the requirements of applicable tax and social legislation;

6) they are reasonable, justified, and comply with the requirements of sound financial

management, in particular regarding economy and efficiency;

7) they are supported by invoices or documents of equivalent probative value.

Eligible costs

20.2 Subject to Article 20.1 the eligible costs are stipulated in Article 7 of the Guidelines

for the 6th Call for proposals;

Non-eligible costs

20.3 The costs as stipulated in Article 7.3.3 of the Guidelines for the 6th Call for proposals

are non-eligible.

Article 21 — Payment

Payments and pre-payments to the Beneficiary

21.1 The MA must pay the grant to the Beneficiary following the payment procedures as

stated in Article 10.2.3 of the Guidelines for the 6th Call for proposals:

a) Pre-financing (after signing of the Grant Contract) in amount of 60% of awarded

grant;

b) payment of the final balance (upon completion of the project) after approval of

the Final Consolidated Report.

21.2 The basis for making payments to the Beneficiary are:

a) Contract, signed by the Head of the MA and the Beneficiary for the advance

payment;

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b) Consolidated final report accompanied by expenditure verification report

approved by the MA for the final payment. The final report shall in all cases include

a detailed breakdown of expenditure covering the whole Project.

Payment shall not imply recognition of the regularity or of the authenticity, completeness

and correctness of the declarations and information provided.

Suspension of the period for payments

21.3 Without prejudice to Article 18, the time-limits for payments may be suspended by

notifying the Beneficiary that:

a) the amount indicated in its request of payments is not due, or;

b) proper supporting documents have not been supplied, or;

c) clarifications, modifications or additional information to the individual or

consolidated final report are needed, or;

d) there are doubts on the eligibility of expenditure and it is necessary to carry out

additional checks, including on-the-spot checks to make sure that the expenditure

is eligible, or;

e) it is necessary to verify whether presumed substantial errors, irregularities or

fraud have occurred in the grant award procedure or the implementation of the

Project, or;

f) it is necessary to verify whether the Beneficiary have breached any substantial

obligations under this Contract, or;

g) the visibility obligations set out in Article 12 are not complied with.

The suspension of the time-limits for payments starts when the above notification is sent

to the Beneficiary. The time-limit starts running again on the date on which the above

notification has been satisfactorily answered and if needed, a correctly formulated request

for payment is recorded. The Beneficiary shall provide any requested information,

clarification or document within 30 days of the request.

If, notwithstanding the information, clarification or document provided by the Beneficiary,

the payment request is still inadmissible, or if the award procedure or the implementation

of the grant proves to have been subject to substantial errors, irregularities, fraud, or

breach of obligations, then the MA may refuse to proceed further with payments and may,

in the cases foreseen in Article 18, terminate accordingly this Contract.

In addition, the MA may also suspend payments as a precautionary measure without prior

notice, prior to, or instead of, terminating this Contract as provided for in Article 18.

Article 22— Accounts, technical and financial checks and audit

Accounts

22.1 The Beneficiary shall keep accurate and regular accounts of the implementation of

the Project using an appropriate accounting and double-entry bookkeeping system. The

Beneficiary must use accrual accounting, so that the expenditure verification can be

correctly performed..

The accounts:

a) may be an integrated part of or an adjunct to the Beneficiary’s regular system;

b) shall comply with the accounting and bookkeeping policies and rules that apply

in the country concerned;

c) shall enable income and expenditure relating to the Project to be easily traced,

identified and verified.

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22.2 The Beneficiary shall ensure that any report as required under Article 8 can be

properly and easily reconciled to the accounting and bookkeeping system and to the

underlying accounting and other relevant records.

Audit

22.3 The MA, the Audit Authority (AA), the European Commission, the European Anti-Fraud

office (OLAF) and the European Court of Auditors, and any external auditor or public officer

authorized by these institutions and bodies, with the support of the Group of Auditors may

conduct documentary and on-the-spot checks on the use made of the Project financing

under this Contract and carrying out a full audit, if necessary, on the basis of supporting

documents of accounts and accounting documents and any other documents relating to

the financing of the Project, throughout the duration of this Programme and for the period

of record-keeping.

The authorities carrying out the checks must be informed of the exact location of the

documents at which they are kept. Where appropriate, the findings may lead to recovery

by the MA.

Right of access

22.4 The Beneficiary shall grant the authorities mentioned in Article 22.5, as well as NA,

MA, JTS and their authorised agents access to sites and premises at which operations

financed under this Contract are carried out, including their computer systems, and to any

documents and computerised data concerning the technical and financial management of

those operations, and to take every appropriate measure to facilitate their work with the

exception of data classified as a state secret in accordance with the national legislation.

Access shall be granted on the basis of confidentiality with respect to third parties, without

prejudice to the obligations of public law to which they are subject.

22.5 The Beneficiary shall allow the above entities to:

a) access the sites and locations at which the Project is implemented;

b) examine its accounting and information systems, documents and databases

concerning the technical and financial management of the Project;

c) take copies of documents;

d) carry out on the-spot-checks

e) conduct a full audit on the basis of all accounting documents and any other

document relevant to the financing of the Project.

22.6 Additionally the authorised persons of the Republic of Estonia and European Anti-

Fraud Office shall be allowed to carry out on-the-spot checks and inspections in accordance

with the procedures laid down by the respective legislation for the protection of the financial

interests of the Republic of Estonia and European Union against fraud and other

irregularities.

Where appropriate, the findings may lead to recovery by the MA.

22.7 Access given to agents of the European Commission, European Anti-Fraud Office and

the European Court of Auditors and to any external auditor or public officer authorised by

the MA carrying out verifications shall be on the basis of confidentiality with respect to third

parties, without prejudice to the obligations of public law to which they are subject.

Record keeping

22.8 Project accounting and other relevant records and supporting documents need to be

kept for five years from the date of payment of the balance to the programme or until the

date stipulated in the state aid rules (if applicable). As long as the balance payment date

is unknown, it is agreed that both programme and project level records and supporting

documents need to be kept until at least end of 2030. The MA informs the Beneficiary

about the date of reception of the balance payment from EC.

17

They shall be easily accessible and filed so as to facilitate their examination and the

Beneficiary shall inform the MA of their precise location. The Beneficiary is obliged to use

accrual accounting, so that the audit can be correctly performed.

22.9 All the supporting documents shall be available in the original form, which includes

also electronic form. In case a circumstance occurs where the Beneficiary cannot keep the

original of a document, a certified true copy of the document should be available.

22.10 In addition to the reports mentioned in Article 8, the documents referred to in this

Article include but are not limited to:

a) Accounting records (computerised or manual) from the Beneficiary’s accounting

system such as general ledger, sub-ledgers and payroll accounts, fixed assets

registers and other relevant accounting information, regulation of organisations’

relevant internal procedures (if necessary);

b) Proof of procurement procedures such as tendering documents, bids from

tenderers and evaluation reports;

c) Proof of commitments such as contracts and order forms;

d) Proof of delivery of services such as approved reports, signed time sheets,

transport tickets, proof of attending seminars, conferences and training courses

(including relevant documentation and material obtained, certificates) etc;

e) Proof of receipt of goods such as delivery slips from suppliers;

f) Proof of completion of works, such as acceptance certificates;

g) Proof of purchase such as invoices and receipts;

h) Proof of payment such as bank statements, debit notices, proof of settlement by

the contractor;

i) Proof that taxes and/or VAT that have been paid cannot actually be reclaimed;

j) For fuel and oil expenses, a summary list of the distance covered, the average

consumption of the vehicles used, fuel costs and maintenance costs;

k) Staff and payroll records such as contracts, salary statements and signed time

sheets.

22.11 Failure to comply with the obligations set forth in Article 22.1 to 22.11 constitutes a

case of breach of a substantial obligation under this Contract. In this case, the MA may in

particular suspend the Contract, payments or the time-limit for a payment, terminate the

Contract and/or reduce the grant.

Article 23 — Final amount of the grant

Final amount

23.1 The grant may not exceed the maximum ceiling as stated in Article 4.2 of this

Contract.

If the eligible costs of the Project at the end of the Project are less than the estimated

eligible costs as referred to in Article 4.1 of this Contract, the grant shall be limited to the

amount obtained by applying the percentage laid down in Article 4.3 of this Contract to the

eligible costs of the Project approved by the MA.

23.2 In addition and without prejudice to its right to terminate this Contract pursuant to

Article 18, if the Project is implemented poorly or partially - and therefore not in accordance

with the requirements of the Project in Annex I - or late, the MA may, by a duly reasoned

decision and after allowing the Beneficiary to submit its observations, reduce the initial

grant in line with the actual implementation of the Project and in accordance with the terms

of this Contract. This applies as well with regards to the visibility obligations set out in

Article 12.

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No profit

23.3 The grant may not produce a profit for the Beneficiary. Profit is defined as a surplus

of the receipts over the eligible costs approved by the MA when the request for payment

of the balance is made or according to State aid regulation if the Project is State aid

relevant.

23.4 Where the final amount of the grant determined in accordance with the Contract

would result in a profit, it shall be reduced by the percentage of the profit corresponding

to the final Programme contribution to the eligible costs actually incurred approved by the

MA.

Article 24 — Recovery

Recovery

24.1 If any amount is unduly paid to the Beneficiary, or if recovery is justified under the

terms of this Contract, the Beneficiary undertakes to repay the MA these amounts. The

repayments will be effected as stipulated in the Financial Correction Decision.

24.2 In particular, payments made do not preclude the possibility for the MA to issue a

financial correction decision.

24.3 As a rule, the financial correction decision shall be submitted to the Beneficiary

through eMS or any other relevant channel.

24.4 The NA of the Republic of Estonia or the European Commission is entitled to demand

the repayment of the amount due to the MA from the Beneficiaryestablished in the Republic

of Estonia in case the Beneficiaryhas not reimbursed the funds unduly spent to the MA.

Interest and fine for delay

24.5 The MA will charge interest if the repayment of the support to be refunded is

postponed and in case of the unlawful state aid according to the Guidelines to Financial

Corrections as approved by the JMC of the Programme. If the amounts have not been

repaid by the due term for repayment of support, the MA will charge fine for delay according

to the Guidelines to Financial Corrections as approved by the JMC of the Programme.

Offsetting

24.6 Amounts to be repaid to the MA may be offset against amounts of any kind due to

the Beneficiary, after informing it accordingly. This shall not affect the Parties’ right to

agree on payment in instalments.

Other provisions

24.7 Bank charges incurred by the repayment of amounts due to the MA shall be borne

entirely by the Beneficiary.

24.8 Without prejudice to the prerogative of the MA, if necessary, the European Union

may, as donor, proceed itself to the recovery by any means.

Article 25 – Applicable law

25.1 Without prejudice to the applicable European law, this Contract is governed by the

laws of the Republic of Estonia. The place of jurisdiction is Tallinn, Estonia.

Article 26 – Payment and contact details

Payment details

26.1 The MA shall make payments in EUR to the Beneficiary to the following bank account

referred to in this Contract which allows the identification of the funds paid by the MA:

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Bank name: Swedbank AS

IBAN: EE672200001120242093

SWIFT: HABAEE2X

Holder of the account: OÜ Setomaa Haldus

26.2 Contact details of the MA and the Beneficiary

For the MA

Mrs Külli Kaare

Acting as Head of Managing Authority

Grants Development Department

State Shared Service Centre

Lõkke 4, Tallinn 10122, Estonia

E-mail: [email protected]

Phone: +372 663 1950

For the Beneficiary

Mr Raul Lepp

Board member

Setomaa Management Ltd.

Pikk 30, Värska 64001, Estonia

E-mail: [email protected]

Phone: +372 518 3557

Signatures

Külli Kaare Raul Lepp

Acting Head of the Managing Authority Board member

Signed digitally Signed digitally

Vabariigi Valitsuse reservi sihtotstarbeliste vahendite välistoetuste mitte-abikõlblike kulude katteks kasutamise põhimõtted Vabariigi Valitsuse kabinetinõupidamisel 27.05.2021 (päevakorra punkt 7) ja 22.09.2022 täiendatud (lisatud alapunkt 4) tehtud otsused: Vabariigi Valitsuse reservi sihtotstarbeliste vahendite riigiülese tegevuse „Välistoetuste tagastused“ raames võib taotleda ja eraldada vahendeid järgmistel juhtudel:

lootusetuks tunnistatud tagasinõuded ulatuses, mida välistoetuse andja ei kata;1. mitteolulise suurusega tagasinõuded, mis jäetakse otstarbekuse kaalutlusel sisse nõudmata ja2. mida välistoetuse andja ei kata; rakendussüsteemist tingitud erijuhtumite korral, kus erimeelsuste lahendamiseks kokku kutsutud3. ümarlauas otsustatakse jätta nõue toetuse saajale esitamata või ei ole alust seda teha ning kulusid ei ole võimalik välistoetuse andjale katmiseks esitada:

tagasinõude aluseks oleva sätte suhtes ei olnud kulude tegemise ajal (sh hanke läbiviimise ajal) välja kujunenud selget õiguspraktikat või teadmist või on õigustõlgendus aja jooksul täpsustunud ja see ei olnud kulude tegemise hetkel teada, sh nt kui auditeeriv asutus ei ole varasemate (sama hanke) kontrollide tulemusel probleemi välja toonud; vaideorgani otsuse tulemusel toetuse saajale välja makstavad või tagasi nõudmata jäetavad summad, mida ei ole võimalik välistoetuse andjale esitada; korraldusasutuse ja auditeeriva asutuse vahelise lahendamatu erimeelsuse korral, mille tulemusel rakendusüksus auditi soovitust täies ulatuses või osaliselt ei täida, aga auditis märgitud mitteabikõlblikke kulusid ei saa välistoetuse andjale hüvitamiseks esitada; kui korraldusasutus, rakendusasutus või rakendusüksus on andnud tahtmatult eksitavad suunised toetuse saajatele.

Euroopa Komisjoni ja teiste doonorite poolt raamatupidamisarvestuse kontrollimise ja4. heakskiitmise menetluse ning vastavuskontrolli menetluse tagajärjel tehtud finantskorrektsioonide ja vähendamiste summad, mida ei ole võimalik toetuse saajatelt tagasi nõuda. Riigi Tugiteenuste Keskus korraldusasutusena kooskõlastab ministeeriumidega summad,5. täpsustab programmid ning esitab Rahandusministeeriumile programmide lõikes ühe koondtaotluse. Vabariigi Valitsuse reservist kaetud struktuurivahendite finantskorrektsioonide alt vabanev toetus6. suunatakse valitsuskabineti 12. mai 2020. a otsuse kohaselt kriisileevendusmeetmete ülebroneeringu katteks.

Välistoetustega seotud mitteabikõlblike kulude reservist hüvitamise põhimõtted

Reservi sihtotstarbeliste vahendite riigiülese tegevuse „välistoetuste tagastused“ eelarvet saab1. kasutada kõikidele vahendatavatele[1] välistoetustele valdkonna eest vastutava ministri

põhjendatud taotluse alusel või struktuurivahendite korraldusasutuse (Riigi Tugiteenuste Keskus, RTK) koondtaotluse alusel, mis on ministeeriumitega (mitteametlikult) kooskõlastatud. Reservist kaetakse lootusetuks tunnistatud tagasinõuete toetuse osa, mida ei ole võimalik2. komisjonile jagamiseks esitada või mida toetuse andja on otsustanud osaliselt või täielikult mitte jagada. Kaetakse järgmised juhtumid:

Tagastused, mida toetuse saaja tagasi ei maksa ning mida ei saa komisjonile jagamiseks esitada, kuna need kulud on enne kulude sertifitseerimist maksetaotlusest maha arvatud. Tagastused, mille osas on peale perioodi lõpparuande komisjonile esitamist selgunud, et toetuse saajalt ei ole võimalik toetust tagasi saada. Tagastused, mida ei ole võimalik toetuse saajalt tagasi saada, aga mida komisjon ei ole nõus jagama vastavalt komisjoni delegeeritud määruse nr 2016/568 artiklile 2. Tagastused, mis tulenevad ühise põllumajanduspoliitika rahastamise, haldamise ja seire kohta kohaldatava Euroopa Parlamendi ja nõukogu määruse (EL) nr 1306/2013 artikkel 54 lõikest 2, mille alusel kaetakse toetuse saajatelt laekumata võlgnevustega seonduvad finantstagajärjed 50% ulatuses asjaomase liikmesriigi poolt ja 50% ulatuses liidu eelarvest, kui tagasinõudmist ei ole toimunud nelja aasta jooksul alates tagasinõudmistaotluse kuupäevast või kaheksa aasta jooksul, kui tagasinõudmine toimub siseriikliku kohtu kaudu.

Reservist rahastatakse struktuurivahendite kuni 1000 euro suuruseid tagastusi, mida toetuse3. saajalt pole halduskulude vaatest mõistlik tagasi nõuda, aga mida ei saa komisjonile esitada, vastavalt Vabariigi Valituse määruse nr 143 „Perioodi 2014–2020 struktuuritoetusest hüvitatavate kulude abikõlblikuks lugemise, toetuse maksmise ning finantskorrektsioonide tegemise tingimused ja kord“ §-i 23 lõikele 4. Reservi kasutatakse rakendussüsteemist tingitud mitteabikõlblike kulude katteks, kui ümarlaua4. tulemusel otsustatakse nõuet toetuse saajale mitte esitada või ei ole alust esitada (ümarlaua otsused fikseeritakse protokollis) ning kulusid ei ole võimalik ka komisjonile sertifitseerida:

finantskorrektsiooni aluseks oleva sätte osas ei olnud kulude tegemise ajal (sh hanke läbiviimise aja) välja kujunenud selget õiguspraktikat või teadmist või on õigustõlgendus aja jooksul täpsustunud ja see ei olnud rikkumise toimepanemise hetkel teada, sh nt kui auditeeriv asutus ei ole varasemate (sama hanke) kontrollide tulemusel probleemi välja toonud; vaideorgani rahuldatud vaide tulemusel toetuse saajale välja makstavad või tagasi mitte nõutavad summad, mida ei ole võimalik komisjonile esitada, juhul kui vaide rahuldamine oli korraldusasutuse ja auditeeriva asutuse hinnangul põhjendatud; korraldusasutuse ja auditeeriva asutuse vahelise lahendamatu erimeelsusega seotud kulude katteks, mille tulemusel rakendusüksus auditi soovitust täies ulatuses või osaliselt ei täida, aga mida korraldusasutus ei saa komisjonile esitada, kuna auditi lõpparuande alusel tuleb kulud maha arvata; kui korraldusasutus, rakendusasutus või rakendusüksus on andnud tahtmatult eksitavad suunised toetuse saajatele.

Euroopa Komisjoni ja teiste doonorite poolt raamatupidamisarvestuse kontrollimise ja5. heakskiitmise menetluse ning vastavuskontrolli menetluse tagajärjel tehtud finantskorrektsioonide ja vähendamiste summad, mida ei ole võimalik toetuse saajatelt tagasi nõuda. Struktuurivahendite 2014-2020 perioodi tagastuste katteks eraldatud vahendeid kasutatakse6. valitsuskabineti 12. mai 2020. a otsuse (päevakorrapunkt 4) kohaselt kriisileevendusmeetmete ülebroneeringu katteks. See tähendab, et vahendid ei lähe tagasi lisarahaks meetme tegevuse ega

projekti eelarvesse, kus mitteabikõlblikud kulud tuvastati. Rahandusministeerium lisab vastava märke ka vahendite eraldamise käskkirja.

Protsess

Tuvastatud mitteabikõlblikke kulusid ei maksta välja, tasaarveldatakse uute abikõlblike kuludega või tuleb toetuse saajal toetus mitteabikõlblike kulude ulatuses tagasi maksta etteantud tähtajal (struktuuritoetuse seadus § 48 lõige 1). Riigieelarve seaduse § 54 lõike 2 punkt 2 kohaselt: kui riigiasutus on teinud käesoleva paragrahvi lõikes 1 nimetatud vahendite arvel väljamakseid suuremas summas, kui laekub välistoetust või välistoetuse kaasrahastamise vahendeid, peab riigiasutus või tema kõrgemalseisev ministeerium, välistoetuse vahendaja tehtud väljamaksete puhul ministeerium, kelle vastutusalas on vastava välistoetuse väljamaksmise ülesande täitmine, katma puudujääva summa valitsemisala eelarvelistest vahenditest või taotlema puudujäägi katmist Vabariigi Valitsuse reservist. Vahendid ei laeku, kui kulud on juba välja makstud, aga Euroopa Komisjonile pole võimalik neid hüvitamiseks esitada (näiteks toetuse saaja ei maksa tagasi (nt on läinud pankrotti)); mitteabikõlblikud kulud on tekkinud auditi lõpparuande ja sellele järgneva finantskorrektsiooni otsuse erinevusest tingitult; õigusaktide tõlgenduse muutumisel või mõnel muul juhul, mille korral ei olegi põhjendatud toetuse saajalt toetuse tagasi nõudmine jne.

Olukorras, kus finantskorrektsiooni otsus toetuse saajale erineb summast, mida korraldusasutus saab Euroopa Komisjonile abikõlblikuna deklareerida (nt auditi aruande põhjal tehtud toetuse tagasinõudmise soovitus oli suurem kui finantskorrektsiooni otsusega mitteabikõlblikuks loetud osa), tuleb tekkinud vahe osas rakendusüksusel projektile sisestada tehniline tagastus, mille katteallikaks on sõltuvalt asjaoludest kas Vabariigi Valitsuse sihtotstarbeline reserv või valitsemisala eelarve. Sama kehtib ka nendele kuludele, kus finantskorrektsiooni otsuse tegemisest on loobutud, kuid on teada, et kulusid abikõlblikuna Euroopa Komisjonile sertifitseerida pole võimalik (nt jäävad pooled erimeelsuse ümarlaual rikkumise esinemise osas erinevale seisukohale ning juhtum kuulutatakse lahendamatuks erimeelsuseks; samuti kuni 1000 euro erandiga tagastused, mida toetuse saajalt tagasi ei küsita). Katteallikate paremaks planeerimiseks tuleb sellised tagastused sisestada infosüsteemi kohe, kui selgub, et makseasutus on nimetatud kulud sertifitseeritavate kulude seast välja arvanud (lõppenud aruandeaasta kulude osas selgub info peale annual accountsi esitamist aruandeaastale järgneva aasta märtsikuuks) või on juhtum kuulutatud ümarlaual lahendamatuks erimeelsuseks. Korraldusasutus koondab eelnimetatud info ja edastab selle nii rakendusasutustele kui rakendusüksustele.

Riigieelarve seaduse § 54 lõike 2 punktis 2 viidatud Vabariigi Valitsuse reserv (millest taotlemist reguleerib Vabariigi Valitsuse reservist vahendite eraldamise ja eraldatud vahendite kasutamise kord) võimaldab vahendeid eraldada 1) erakorraliselt ettenägematuteks kuludeks ning 2) sihtotstarbeliselt Vabariigi Valitsuse heaks kiidetud tegevuste rahastamiseks (mh eelarverida välistoetuste tagasinõuete erijuhtumite katteks).

Vahendatava välistoetuse korraldusasutus [RTK (toetuste arendamise osakonna riskijuhtimise ja1. järelevalve talitus) ja /või Maaeluministeerium ja/või Siseministeerium] analüüsib tähtajaks tagastamata mitteabikõlblike kulude sisu ja seisu ning sihtotstarbelisest reservist katmise vajadust ning põhjendatust:

lootusetuks tunnistatud tagasinõuete korral üks kord aastas vastavalt oma tööplaanile aga

hiljemalt I kvartali jooksul eelmise aasta reservi kasutamise taotluse. kuni 1000-eurosed struktuurivahendite tagasinõuded 1x aastas vastavalt oma tööplaanile aga hiljemalt I kvartali jooksul eelmise aasta reservi kasutamise taotluse. erijuhtumid – struktuurivahendite korral ca 2x aastas: peale annual accountsi ja septembris või suuremate üksikjuhtumite korral vastavalt vajadusele; teised fondid vastavalt vajadusele.

Korraldusasutus esitab ministeeriumitega kooskõlastatud (mitteametlikult) taotluse2. sihtotstarbelisest reservist vahendite eraldamiseks Rahandusministeeriumile. Taotluse Rahandusministeeriumile võib esitada ka valdkonna eest vastutav ministeerium, sihtotstarbelisest reservist kasutamise osas konsulteerib Rahandusministeerium vastava fondi korraldusasutusega. Taotluses viidatakse Vabariigi Valitsuse otsusele, millega on tegevuse rahastamine heaks3. kiidetud, ja sellele lisatakse selgitused võetud või võetavate kohustuste kohta, taotletava summa üksikasjalik arvestus ning muu oluline teave (sh millise rakendusasutuse missuguse tulemusvaldkonna programmi ja programmi tegevuse eelarvet laekumata tagastus mõjutab; sh prognoos järgmise RES perioodi kulude osas; sh rikkumised, mis tuleb osaliselt katta valitsemisala eelarvest, tuuakse eraldi välja). Rahandusministeeriumi riigieelarve osakond lähtub Vabariigi Valitsuse sihtotstarbelise reservi4. kasutamise korrast rahandusministri käskkirja koostamisel ning saadud sisendist RES protsessis vastava reservi rea eelarve planeerimisel. Nõuetele vastava taotluse puhul teeb rahandusminister otsuse vahendite eraldamiseks, arvestades sihtotstarbeliste vahendite olemasolu Vabariigi Valitsuse reservis. Struktuurivahendite taotluste menetluse eest vastutab välisvahendite talitus. Ministri käskkirja alusel avab RTK riigiarvestuse töötaja asutusele limiidi.5. Finantskorrektsiooni otsuse ulatuses, mille katteks vahendeid reservist eraldati, kannab RTK6. valitsemisala finantsarvestuse talitus antud toetused SAPis ümber sihtotstarbelisest reservist antud toetusteks. Vahemikus hetkest, mil selgub, et doonorilt tulusid ei laeku kuni otsustatakse siseriiklik katteallikas mitteabikõlblikele kuludele on mitteabikõlblik kulu SAPis kajastatud välistoetusena, kuid RTK valitsemisala finantsarvestuse talitus kannab saadaoleva toetuse nõude ebatõenäoliselt laekuvaks (kuluks). Kui selgub, millisest allikast tehtud mitteabikõlblik kulu kaetakse, kannab RTK Finantsarvestuse talitus kulu ümber sellele allikale, võtab tagasi välistoetuse tulu ja nõude ning ebatõenäoliselt laekuvaks kantud välistoetuse nõude. Kui toetuste vahendeid arvestatakse rahaliselt eraldi e-riigikassa kontol, teeb RTK valitsemisala7. finantsarvestuse talitus ülekande valitsemisala üldiselt kulukontolt toetuste (SFOSi või mõnes muus IT süsteemis kajastuvate toetustega seotud) kontole riigikassas ning teavitab rakendusüksust ja korraldusasutust laekumisest. Rakendusüksus märgib finantskorrektsiooni otsuse alusel tekkinud nõude SFOSis või muus IT8. süsteemis laekunuks ja teavitab tegevuse lõpetamisest korraldusasutust. Korraldusasutus kontrollib sisestatud andmed üle, veendub nende korrektsuses, sh vajadusel palub teha parandused rakendusüksusel või SFOS kasutajatoel. RTK valitsemisala finantsarvestuse talitus inventeerib kvartaalselt tähtajaks laekumata nõudeid.9. RTK saadab info tähtajaks laekumata summast rakendusasutusele. Kui välistoetust ei laeku, tuleb leida kasutatud eelarve katteks uus allikas. Iga toetuse saldo peab lõpuks jõudma nulli. Kuni mitteabikõlblike kulude katteallikas ei ole otsustatud, on aruandlus raamatupidamises 10. eelarveliikide lõikes ebakorrektne – kuigi on teada, et kulu ei olnud võimalik katta toetusest, kajastub see endiselt toetusest tehtud kuluna. Valitsemisala peab tehtud kulule uue katteallika leidma esimesel võimalusel.

Kõikide nende juhtude korral, mis ei klassifitseeru VV 27.05.2021 ja 22.09.2022 otsuse kohaste

juhtumite alla, ning kus valitsemisala oma eelarve piires ei leia vahendeid ega neid ei ole ka võimalik järgmise RESi protsessis eraldada või lisataotlusega saada, võib ministeerium pöörduda taotlusega VV erakorralisse reservi. Silmas tuleb pidada, et VV erakorralisest reservist eraldatakse vahendeid erakorralisteks (ettenägematuteks) juhtudeks. Protsess on kirjeldatud VV määruses (taotlus esitatakse Rahandusministeeriumile; sellele lisatakse: VV korralduse eelnõu reservist vahendite eraldamise kohta (kus on välja toodud tulemusvaldkond ja programm); VV korralduse eelnõu seletuskiri, milles esitatakse taotletava summa üksikasjalik arvestus, põhjendus vahendite eraldamise vajalikkuse kohta ja analüüs taotletavate vahendite asemel olemasolevate ressursside kasutamise võimaluste kohta; muud õigusaktides sätestatud või reservist vahendite eraldamise otsustamisel tähtsust omavad dokumendid ja informatsioon. Rahandusministeerium vaatab esitatud taotluse läbi 20 tööpäeva jooksul, kontrollides taotluse ja taotletava summa reservist eraldamise põhjendatust ning vastavust õigusaktidele ja nõuetele. Rahandusministeerium seejuures konsulteerib vastava fondi korraldusasutusega, et vajadusel selgitada välja konkreetse juhtumi asjaolud ning anda hinnang, kas antud kulu on võimalik katta hoopis VV sihtotstarbelisest reservist või mitte. Kui taotlus vastab õigusaktidele ning on nõuetekohane ja piisavalt põhjendatud, edastab Rahandusministeerium esitatud korralduse eelnõu Vabariigi Valitsusele. Rahandusministeeriumil ei ole õigus muuta Vabariigi Valitsusele esitatavas korralduse eelnõus taotleja taotletava summa suurust. Vajaduse korral esitab Rahandusministeerium Vabariigi Valitsusele alternatiivset arvamust kajastava Vabariigi Valitsuse korralduse eelnõu koos selgitustega. Otsuse teeb Vabariigi Valitsus.

Taust

Välistoetuste projektide rakendamine peab lähtuma nii Euroopa Liidu kui liikmesriigi õigusaktides kehtestatud reeglitest: nt tulemuste saavutamine, kulude abikõlblikkus, rakendusperiood, riigiabi ja riigihanke reeglid, teavitusnõuded jne. Nende reeglite täitmist kontrollivad rakendusüksused, korraldusasutus, audiitorid ning lisaks võivad kontrollida ka Riigikontroll, Euroopa Komisjoni audiitorid ja Euroopa Kontrollikoda. Finantskorrektsiooni otsused tuvastatud mitteabikõlblike kulude kohta koostavad rakendusüksused nii enda kui teiste nimetatud asutuste kontrollide tulemuste alusel. Tuvastatud mitteabikõlblike kulude katteks toetust ei maksta, tagasinõuded tasaarveldatakse uute abikõlblike kulude katteks makstava toetusega või tuleb toetuse saajal tagasinõutud toetus mitteabikõlblike kulude ulatuses tagasi maksta etteantud tähtajal. Kui toetuse saaja tagasinõutud toetust tagasi ei maksa, siis riigieelarve seaduse § 54 lõike 2 kohaselt vastutab vahendite tagastamise eest riigieelarvesse ministeerium oma eelarvega ning kui valdkonna ministeeriumi eelarvest vahendeid leida ei ole võimalik, siis peab ministeerium taotlema puudujäägile katet Vabariigi Valitsuse reservist.

Teatud juhtudel tekib olukordi, kus ei ole põhjendatud toetuse saajalt toetus tagasi nõuda.2018. aasta detsembris muutis Euroopa Komisjon kulude sertifitseerimise juhendit[2], mis on liikmesriikidele täitmiseks rangelt soovituslik. Juhise kohaselt on auditi lõpparuandes toodud mitteabikõlblikud kulud lõplikud ehk need tuleb abikõlblike kulude hulgast sertifitseerimisel välja võtta, isegi kui nendele ei järgne finantskorrektsiooni otsust või tehakse otsus väiksemas summas. Tagasi saab neid panna ainult kohtuotsuse või mõne muu struktuurivahendite administratsioonist sõltumatu organi otsuse alusel. Perioodi 2014-2020 struktuuritoetuse seaduse (STS) ning Euroopa Liidu ühise põllumajanduspoliitika rakendamise seaduse alusel rakendatavate fondide korral tuleb finantskorrektsiooni otsusega mittenõustumisel enne halduskohtule kaebuse esitamist läbida vaidemenetlus. Kuna STS §-i 51 kohaselt rahuldab rakendusüksuse peale esitatud vaided rakendusasutus või rakendusüksus, kes komisjoni juhendit arvestades ei ole sõltumatu struktuurivahendite administratsiooniväline organ, siis sellest

tulenevalt ei saa sellise mittesõltumatu organi otsuse alusel kulusid uuesti abikõlblikuks lugeda, kui need on kord sertifitseerimise protsessis maha võetud. Vaidemenetluse kui haldusorgani enesekontrolli meetme kaudu võib teatud juhtudel olla tulemuseks, et toetuse saaja esitatud vaie rahuldatakse ning algne finantskorrektsiooni otsus tühistatakse. Nii võivad erimeelsused audiitori, finantskorrektsiooni ja vaide otsuse tegijate vahel kaasa tuua arvestatava finantsmõju riigieelarvele: tehtud kulud on auditi tulemusel tunnistatud mitteabikõlblikuks ja sertifitseeritavatest kuludest maha võetud, kuid siseriiklikult abikõlblikuks loetud, välja makstud, aga komisjonile neid abikõlblikuna deklareerida ka ei saa, mistõttu on vaja leida alternatiivsed allikad kulu katmiseks.

Teine olulise finantsmõjuga probleem on riigihangetega seotud rikkumised. Nii kohtupraktika (sh Euroopa Kohtu praktika), riigihangete seadus kui ka liikmesriikidele kohalduvad komisjoni juhised riigihangete rikkumiste kohta on pidevas muutumises. Viimastel aastatel (alates 2017. a) on komisjon ja sellest tulenevalt ka Rahandusministeeriumis asuv auditeeriv asutus võtnud luubi alla piiravad kvalifitseerimistingimused riigihangetes. Koolituspäevad ja teavitustöö ei ole sellistel puhkudel alati piisavad, sest rikkumisi leitakse endiselt. Suurtes investeeringuprojektides on nende finantsmõju väga suur. Fikseeritud finantskorrektsioonimäärad ja nende alusel koostatud toetuste tagasinõuded tulenevad komisjoni uuendatud juhendist,[3] mille kohaselt konkurentsi piiravaid riigihankerikkumisi käsitletakse väga rangelt ja karistatakse fikseeritud finantskorrektsioonimäärade alusel. Kuivõrd nimetatud määrade rakendamine baseerub põhimõttel, et rikkumise tulemusel ei ole võimalik täpset finantskahju hinnata, siis on komisjoni poolt fikseeritud kindlad protsendimäärad. Ebaproportsionaalsusele on riigid, sh Eesti, korduvalt tähelepanu juhtinud. Juhendi muutmisele eelnes 1,5 aastat arutelusid liikmesriikidega, seatud protsendimäärad on komisjon kehtestanud täie teadlikkuse juures selge sooviga olla range. Regulatsioonil on ka preventiivne eesmärk, millega soovitakse toetuse kasutajaid suunata järgima valdkondlike erireegleid, et tagada Euroopa Liidu konkurentsipoliitikat. Komisjon annab toetuse ja ka reeglid.

Tulenevalt eeltoodust on ette tulnud ka olukordi, kus rakendusüksus on nõustanud toetuse saajaid valesti: nt toetuse saajate nõustamise ajal oli siseriiklikult levinud teistsugune õiguspraktika (hea tava), kuid seisukohad on ajas täpsustunud või muutunud ning kontrolli teostamise ajal selgub, et rakendusüksuse varem antud nõuanne osutub vääraks; või varasemate sama hanke kontrollide käigus ei ole probleemi tuvastatud, ühel hetkel on audiitorite või siseriikliku toetuse andja teadlikkus kasvanud ning leidnud probleemi hilisemate kontrollide raames kas hanke elluviimise või elluviimise järgses etapis. Sellist muutust ei ole võimalik ette näha. Juhul, kui seotud kulusid komisjonile sertifitseerida ei ole võimalik ja neid ei ole võimalik toetuse saajalt tagasi saada või põhjendatud toetuse saajalt tagasi nõuda, tuleb mitteabikõlblike kulude katteks leida vahendid riigieelarvest.

Süsteemist tingitud mitteabikõlblike kulude minimeerimiseks ja välistamiseks viiakse alates 2020. aastast läbi ümarlaudasid[4] eesmärgiga kujundada ühtne seisukoht enne auditi lõpparuande kinnitamist (mis komisjoni jaoks muudab välja toodud mitteabikõlblikud kulud lõplikuks). Ümarlaua koosseisus on korraldusasutuse, auditeeriva asutuse, rakendusüksuse ja vajadusel ka rakendusasutuse esindajad ning selle tulemusel kinnitatud auditi lõpparuande osas ei peaks rakendusüksus enam teistsugusele seisukohale asuma. Komisjonile kulude abikõlblikkuse kinnitamise eest vastutab korraldusasutus, mistõttu on viimase seisukoht määrav. Täiendavalt on alates 2019. aastast kokku lepitud, et iga komisjoni maksetaotluse koostamisel kontrollitakse, kas lisandunud tasutud finantskorrektsioonide puhul on esitatud vaie või ei ole vaide menetlemise tähtaeg veel saabunud. Kui tagasimakse tehakse enne vaideotsuse saamist, siis kuni vaidemenetluse lõpuni finantskorrektsiooni

aluseks olevaid kulusid komisjoni maksetaotlustest maha ei arvata. Vaiete lahendamisel peab samuti järgima komisjoni juhendit: kui komisjoni kehtestatud juhendis on protsendimäärad ette kirjutatud, siis ei ole vaideorganil õigust rikkumisele leebemalt tõlgendada.

Kontaktid

Kui kellelgi on täpsustavaid küsimusi tehnilise poole pealt, siis esimeses järjekorras palun pöörduge oma valitsemisala pearaamatupidaja poole või siis riigi pearaamatupidaja poole.

Rahandusministeeriumi riigieelarve osakonna välisvahendite talitus, Juhan Anupõld, nõunik, 5885 1365, [email protected]

Riigi Tugiteenuste Keskuse toetuste arendamise osakonna riskijuhtimise ja järelevalve talitus, Mairi Uusen, talituse juhataja, 663 1941, [email protected]

[1] Vahendatavate välistoetuste all mõeldakse siinkohal on riigisisest rakendussüsteemi omavaid toetusskeeme, kus välistoetuse vahendaja annab riigisiseselt kokku lepitud valdkondade tegevustele määratletud tingimustel välistoetuse edasi. Vahendatavateks välistoetusteks on näiteks: Euroopa Regionaalarengu Fond, Euroopa Sotsiaalfond, Ühtekuuluvusfond, Euroopa Merendus- ja Kalandusfond, Maaelu Arengu Euroopa Põllumajandusfond, Euroopa Põllumajanduse Tagatisfond, Euroopa Majanduspiirkonna ja Norra Finantsmehhanismid, Eesti-Šveitsi koostööprogramm, Eesti-Läti programm, Eesti-Vene programm, Varjupaiga-, Rände- ja Integratsioonifond, Sisejulgeolekufondid, uuel perioodil lisanduvad Õiglase Ülemineku Fond ja Taaste- ja vastupidavusrahastu.

[2] EGESIF_15_0016-04 (https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_audit_accounts_en.p df), EGESIF_15_0017-04 (https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_withdrawals_recover ies_en.pdf), seisukoht NR. regio.ddg.d.5/JO/(2019)8319003 ja EGESIF_15_0018-04 (https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/guidance_prep_exam_account s_en.pdf), 03/12/2018

[3] KOMISJONI OTSUS, 14.5.2019, millega kehtestatakse suunised kohaldatavate riigihanke-eeskirjade rikkumise korral liidu rahastatavate kulude suhtes tehtavate finantskorrektsioonide kindlaksmääramiseks. Otsus kättesaadav: https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/GL_corrections_pp_irregularitie s_ET.pdf, lisa: https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/GL_corrections_pp_irregularitie s_annex_ET.pdf

[4] Ümarlaudade läbiviimise täpsem protsess on kirjeldatud korraldusasutuse koostatud juhises „Juhendmaterjal juhtimis- ja kontrollisüsteemide ning projektiauditite järeltegevuste menetlemiseks“.

Viimati uuendatud 11.12.2023

Lõkke 4 / 10122 Tallinn / 663 8200 / [email protected] / www.rtk.ee / Registrikood 70007340

For official use only

Notation done at: 16.09.2024

Access restriction until: 16.09.2029

Basis: AvTS § 35 lg 1 p 2

Holder of information: State Shared Service Centre

Raul Lepp

Setomaa Haldus OÜ

[email protected] Ours 16.09.2024 no 11.1-14/24/2115-1

Pikk 30

64001 Värska

Eligibility of project ER274 SetoWWTP costs

and deadlines

The Estonia-Russia Cross-Border Cooperation Programme 2014-2020 was initiated as part of the

European Neighbourhood Instrument 2014-2020. However, due to the war that started in 2022,

cooperation with the Russian Federation was suspended, and the Programme implementation

continued unilaterally as the Estonian EU External Border Programme. Setomaa Management Ltd.

participated as the Lead Beneficiary in the 6th call for proposals of the Estonian EU External Border

Programme with the project ER274 "Improving sewage treatment in Setomaa WWTPs"

(SetoWWTP).

The basis for opening the 6th call for proposals included various legal acts, including:

Regulation (EU) 2022/2192 of the European Parliament and of the Council. This regulation

established special provisions for, among other things, the European Neighbourhood Instrument,

under which the Estonian EU External Border Programme falls, in the event of a disruption to the

programme's implementation. Under Article 6(2) of the regulation, the deadline for concluding

contracts was extended: The managing authority may sign contracts, other than contracts for large

infrastructure projects, after 31 December 2022, provided all project activities financed by the

programme end by 31 December 2023.

Commission Implementing Regulation (EU) 2020/879, amending Implementing Regulation (EU)

No 897/2014 as regards specific provisions to align the provisions for the implementation of cross-

border cooperation programmes financed under the European Neighbourhood Instrument with

specific measures in response to the COVID-19 pandemic. According to Article 1(3) in Article

18(3) of the Implementing Regulation (EU) No 897/2014 the eligibility period for projects is

extended by one year until 31 December 2023. With Article 1.(7)(b) Article 48(2a) is added,

stating: 2a. Notwithstanding Article 19(1), costs shall not be eligible for Union financing if they

are paid after 31 December 2023.

Article 288 of the Treaty on the Functioning of the European Union stipulates that a regulation

shall have general application. It shall be binding in its entirety and directly applicable in all

Member States. This principle ensures the uniform application of EU regulations across the Union,

avoiding discrepancies in interpretation and implementation that may arise with national laws, but

shall leave to the national authorities the choice of form and methods. In the current case, the

eligibility deadline and conditions are very clearly defined to ensure their uniform implementation

across Member States.

The 6th call for proposals guidelines of the Estonian EU External Border Programme, the Project

Implementation Guidelines, and Article 20.1.1 b) of the SetoWWTP support agreement stipulated

that all costs incurred should be paid as latest on 31 December 2023.

Furthermore, the programme’s Joint Technical Secretariat repeatedly informed applicants and later

project beneficiaries about the end date for eligible costs (31 December 2023) during seminars,

consultations, and in writing. The call for proposals information was also available on the

programme's website.

Setomaa Management Ltd. failed to comply with the final deadline for the eligibility of project

costs by paying project-related expenses after 31 December 2023, specifically on 16 January and

12 February 2024.

On 5 June 2024, the programme's Managing Authority and Joint Technical Secretariat consulted

with the European Commission representative during the 17th meeting of the programme's Joint

Monitoring Committee on this matter. All parties agreed that the same rules apply to all projects

and that the regulation is unequivocal – costs paid after 31 December 2023 are not eligible.

Also, it is not possible to seek reimbursement for the SetoWWTP project costs from the

Government of the Republic's reserve, as targeted funds to cover ineligible external aid costs may

only be requested and allocated in the following cases:

• Irrecoverable claims to the extent that is not covered by the external aid provider;

• Non-significantly small claims that are not pursued on grounds of expediency and are not

covered by the external aid provider;

• In special cases arising from the implementation system, where it is decided not to pursue

the claim against the aid recipient or where there is no basis for doing so, and the costs

cannot be submitted to the external aid provider for reimbursement.

In this case, none of the allowed options apply. According to Chapter 8 of the Project

Implementation Guidelines, the Managing Authority, Joint Technical Secretariat, and First Level

Control (FLC)/auditors have discretionary power to recover the amounts unduly paid together

with any interest on late payments from the LB. In general ineligible costs that are detected during

verification of project reports are deducted (from the project payment) in the relevant reporting

period without making financial correction decision and reducing the project budget.

The programme uses the eMS information system, in which project applications and reports for

approved projects are submitted. The reporting process is also controlled in this information

system, and the first-level control certificates are made available to the beneficiaries in the same

system. In accordance with Chapter 8 of the Project Implementation Guidelines, the circumstances

and reasoning for deduction or financial correction are described in the eMS in the FLC

Certificate.

The SetoWWTP project certificate was confirmed in the eMS information system on 20 March

2024, and it has been accessible to the beneficiary in the system since that date. As the Lead

Beneficiary, Setomaa Management Ltd submitted the consolidated project report on 22 April 2024,

using the data from the given certificate.

The 6th call for proposals guidelines of the Estonian EU External Border Programme p 10.7.

provides that the Managing Authority shall recover the amounts unduly paid together with any

interest on late payments from the lead beneficiary. The Project Implementation Guidelines p 8

provides that a financial correction decision with reducing the project budget shall be made for

expenditure that is considered as a financial irregularity and are the breach of Programme rules.

Estonian EU External Border Programme made an advance payment of €170,100.00 to the

SetoWWTP project, but the eligible costs of the project amount to €168,059.20, of which the grant

(90%) is €151,253.28. Therefore, the Lead Beneficiary, Setomaa Management Ltd, is required to

repay €18,846.72 to the programme.

Due to the fact that the programme eligibility deadline is 30 September 2024, we kindly ask you

to make the voluntary payment of the abovementioned amount by 27 September 2024. We will

also prepare the financial correction decision, which will take this action also into account while

deliberating.

Please be informed, that the response to this letter will be considered as your use of the right to be

heard and your comments/explanations will be added to the financial correction decision.

Yours sincerely,

(signed digitally)

Ege Ello

Head of the Managing Authority

Estonian EU External Border Programme

Ege Ello 663 1933

[email protected]