13/2012 Swiss Contribution - Cooperation Programme between Switzerland and the Slovak Republic
THE SWISS-SLOVAK COOPERATION PROGRAMME
PROJECT AGREEMENT
BETWEEN SWITZERLAND REPRESENTED BY THE SWISS AGENCY FOR DEVELOPMENT AND COOPERATION (SDC)
AND
THE SLOVAK REPUBLIC REPRESENTED BY THE GOVERNMENT OFFICE OF THE SLOVAK REPUBLIC
ON THE GRANT FOR THE PROJECT “ZEMPLINSKE HAMRE – DISCOVERING HISTORY OF MINING AND IRON SMELTING IN VIHORLAT MOUNTAINS” TO BE IMPLEMENTED DURING THE PERIOD 23.02.2012 – 30.04.2014
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Switzerland and the Slovak Republic
Having regard to the friendly relations between the two countries,
Desirous of strengthening these relations and the fruitful co-operation between the two countries,
Intending to promote further the social and economic development in the Slovak Republic,
Referring to the Framework Agreement between the Swiss Federal Council and the Government of the Slovak Republic concerning the implementation of the Swiss-Slovak cooperation programme to reduce economic and social disparities within the enlarged European Union, concluded on 20 December 2007,
Considering the Swiss Grant for ZEMPLINSKE HAMRE – discovering history of mining and iron smelting in Vihorlat Mountains, Slovak Republic, have agreed as follows:
Article 1 Definitions
In this Project Agreement, unless the context otherwise requires, the following terms shall have the following meaning:
- "Audit Authority" means the Slovak entity performing the compliance audit and ensuring the execution of system audits and audits of operation within the Swiss-Slovak Cooperation Programme pursuant to the Framework Agreement;
- "National Coordination Unit" (hereinafter referred to as "NCU") means the Slovak unit in charge of the coordination of the Swiss-Slovak Cooperation Programme. In reference to the Framework Agreement, Art 9., the Slovak Republic has authorized the Government Office of the Slovak Republic to act on its behalf as the NCU for the Swiss-Slovak Cooperation Programme;
- “Contracting Parties” of this Project Agreement means the Slovak Republic, represented by the Government Office of the Slovak Republic as the NCU on the one side and Switzerland, represented by the Swiss Agency for Development and Cooperation (hereinafter referred to as "SDC") on the other side;
- “Contribution” means the overall non-reimbursable financial contribution granted by Switzerland to the Slovak Republic under the Framework Agreement;
- “Effective Costs” means expenses incurred which are in compliance with the Framework Agreement and this Project Agreement;
- “Embassy of Switzerland” (hereinafter referred to as “Swiss Embassy”) means the official representative of the Swiss Confederation for the implementation of the Contribution in the Slovak Republic. The Swiss Embassy acts as a contact unit between the Slovak and Swiss side regarding the Swiss-Slovak Cooperation Programme;
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- “Executing Agency” is the Municipality of Zemplinske Hamre mandated by the NCU to implement the Project financed under this Project Agreement;
- “Framework Agreement” means the Agreement between the Swiss Federal Council and the Government of the Slovak Republic concerning the implementation of the Swiss-Slovak Cooperation Programme to reduce the economic and social disparities within the enlarged European Union, concluded on 20 December 2007, as amended;
- “Grant” means the non-reimbursable financial contribution granted by Switzerland under this Project Agreement;
- "Implementation Agreement" means an agreement between the NCU and the Executing Agency for the implementation of the Project;
- “Paying Authority” means the organisational unit in the Government Office of the Slovak Republic ensuring coordination of the financial management and appropriate financial control within the Swiss-Slovak Cooperation Programme;
- “Project Agreement” means the Agreement between the Swiss Agency for Development and Cooperation (SDC) and the Government Office of the Slovak Republic acting as the NCU which lays down the rights and obligations of the Contracting Parties regarding the implementation of the Project;
- “Project” means all activities undertaken under this Project Agreement;
- “Swiss Agency for Development and Cooperation” means the Swiss unit within the Federal Department of Foreign Affairs that is authorized by Switzerland for the implementation of the Swiss-Slovak Cooperation Programme;
- "Tender Evaluation Report" describes the evaluation methodology, evaluation criteria, scoring regime utilised to short list and evaluate the Tenderers against the requirements of Request for Tender and the subsequent justification for recommending the preferred Tenderer.
Article 2 Objectives and Scope of the Project
2.1 The objective of the Project ZEMPLINSKE HAMRE – discovering history of mining and iron smelting in Vihorlat Mountains is to contribute to the development of peripheral region Snina through mobilization of cultural-cognitive tourism, revival of cultural and technical heritage and creation of possibilities for all-year tourism in Zemplinske Hamre by achieving of the Project results listed in the Logframe in annex 2.
2.2 The Project has to be implemented by the NCU according to the following documents, listed by order of legal applicability: The Framework Agreement and its Annexes, this Project Agreement with the confirmation of the Project approval by SDC (annex 1 of this Project Agreement), the Final Project Proposal (annex 2 of this Project Agreement), and the Indicative disbursement plan (annex 3 of this Project Agreement).
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Article 3 Amount and Utilization
3.1 The total budget of the Project amounts to CHF 1'534'000.- (one million five hundred and thirty-four thousand Swiss Francs ) (see annex 2 of this Project Agreement). Amounts stated in this article in Swiss Francs are binding to Contracting Parties.
3.2 Switzerland shall provide a Grant of up to CHF 1’192’000.- (one million one hundred and ninety-two thousand Swiss Francs ), to the Slovak Republic for the implementation of the Project defined in Art. 2 of this Project Agreement.
3.3 The Grant shall cover a maximum of 85% of the total eligible costs of CHF 1’402’400.- (one million four hundred two thousand and four hundred Swiss Francs ) of the Project in Swiss Francs. This percentage shall not be exceeded during the project implementation. It shall be calculated on the basis of effective costs in Swiss Francs. The NCU shall ensure the timely provision of the co-financing of up to CHF 210'400.- (two hundred ten thousand and four hundred Swiss Francs ) i.e. 15% of the eligible costs by the Slovak Republic State Budget.
3.4 As stipulated in Art. 7.1 of the Framework Agreement, the Value Added Tax (VAT) shall be considered as an eligible cost only if it is genuinely and definitively borne by the Executing Agency. VAT, which is recoverable, by whatever means, shall not be considered eligible even if it is not actually recovered by the Executing Agency.
3.5 As stipulated in Art. 7.2 of the Framework Agreement, other levies, taxes or charges, in particular direct taxes and social security contributions on salaries and wages, shall constitute eligible expenditure only if they are genuinely and definitively borne by the Executing Agency.
3.6 The following costs shall not be eligible for grant support: expenditures incurred before the entering into effect of this Project Agreement, interests on debt, the purchase of real estate, staff costs of the Slovak Government and recoverable VAT as specified in Art. 3.4 of this Project Agreement.
3.7 Any works, supplies and/or services carried out or delivered after the end of the Project as defined in Art. 23.2 are not eligible for grant support, except services for reporting, auditing and evaluation provided not later than 12 months after the end of the Project.
3.8 The final date for eligibility of costs shall be 12 months after the end of the Project. Reimbursement requests must have been received by Switzerland not later than six months after the final date of eligibility of costs.
3.9 Any unutilised portion of the Grant remaining at the completion of the Project shall be eligible for re-commitment according to Art. 5.3 of the Framework Agreement, unless otherwise mutually agreed by the Contracting Parties.
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Article 4 Reimbursement Procedures
4.1 Reimbursements are made in accordance with the Framework Agreement, Annex 2, chapters 3 and 4 and with the approved annex 3 of this Project Agreement based on requests for reimbursements submitted by the Paying Authority.
4.2 The reimbursements shall be conditional upon receipt and approval by Switzerland of the reports pursuant to Art. 9 and 10 of this Project Agreement.
4.3 Before reimbursement can be made, the Swiss Embassy shall be provided with a Project Interim Report, according to Art. 9, in electronic and hard copy. The Project Interim Report shall cover a period specified in Art. 9.1.
4.4 When the required documents have been provided Switzerland shall verify that they are in the correct form and that the conditions for the reimbursement have been met. Reimbursements, if the Reimbursement Requests have been submitted correctly, shall be made by Switzerland without undue delays, within three months after the receipt of the reimbursement request. Switzerland shall notify the Paying Authority when such reimbursement order has been given.
4.5 In case of an error made in relation to a reimbursement resulting in a higher amount paid than required under this Project Agreement, the NCU through Paying Authority shall, upon request from Switzerland, reimburse without delay any amount unduly reimbursed. Similarly, if an error results in a lower amount paid than required, Switzerland shall, as soon as possible after being made aware of such an error, reimburse the missing amount.
4.6 When the reimbursement has been made, and received by the Paying Authority in full, Switzerland has fulfilled its obligations relating to that reimbursement.
4.7 The Reimbursement Requests sent to Switzerland by the Paying Authority shall be expressed in Swiss Francs, whereas the Paying Authority shall convert the local currency into Swiss Francs at the daily exchange rate prevailing at the date of issuance of the Reimbursement Request which is stipulated by the European Central Bank.
4.8 The equivalent value in local currency of each reimbursement made by Switzerland in Swiss Francs pursuant to the approval of the Reimbursement Requests will be received on the account of the Paying Authority and recorded by the Paying Authority in accordance with the national legislation.
4.9 The Contracting Parties may amend the Indicative disbursement plan (annex 3 of this Project Agreement) depending on the progress of the work and the expenses incurred.
4.10 At Project completion: A final reimbursement of maximum CHF 60’000.- (sixty thousand Swiss Francs) will be made by Switzerland after fulfilment of all contractual obligations of the Municipality of Zemplinske Hamre, after the receipt of the final Reimbursement Request, the corresponding last Project Interim Report, the Project Completion Report and the Final Financial Audit Report .
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4.11 All payments related to this Project Agreement shall be transferred in Swiss Francs to the Government Office of the Slovak Republic, account 7000407048, [IBAN: SK27 8180 0000 0070 0040 7048], Swift Code: SUBASKBX, State Treasury (Štátna pokladnica) Radlinského 32, 810 05 Bratislava 15, Slovenská republika, by Switzerland.
Article 5 Procurement
5.1 Procurement will be made by the Executing Agency in accordance with the Slovak national law and regulations and in compliance with the EU directives. A confirmation of compliance with the relevant procurement rules shall be provided to Switzerland by the NCU within 30 calendar days after the award of the contract. To increase transparency and to prevent corruption, tender documents shall contain an integrity clause.
5.2 According to Annex 2, Art. 3.4 of the Framework Agreement, in general, for public tenders within the scope of the EU directives on public procurement (2004/17/EC and 2004/18/EC), an English translation of the official tender evaluation report shall be provided to Switzerland for information at the latest 30 calendar days after the award of contract.
5.3 A copy of the tender documents and of the contracts shall be provided to Switzerland for the following public tenders undertaken within the frame of this Project Agreement: a) Construction works, with a budget amounting to CHF 830’125,- (eight hundred thirty thousand one hundred and twenty-five Swiss Francs net VAT) .
These documents shall be submitted at the latest 20 calendar days before the commencement of tendering and 20 calendar days after the signing of the contract, respectively.
5.4 In accordance with Art. 6.5 of the Framework Agreement, both Parties agree to provide all such information pertaining to the tender process and beyond the documents listed above that the other Party may reasonably request.
5.5 Switzerland has the intention to participate in the tender committee for the following public tenders undertaken within the frame of this Project Agreement: a) Construction works, with a budget amounting to CHF 830’125,- (eight hundred thirty thousand one hundred and twenty-five Swiss Francs net VAT) .
5.6 Switzerland shall have the right to conduct an audit of the procurement practices and procedures in general.
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Article 6 Main Responsibilities of National Coordination Unit
6.1 The NCU shall take all actions within its field of competences and responsibility, including coordination, the provision of advanced payment, and control of the co-financing, construction permits and other measures, necessary or appropriate, for carrying out the Project.
6.2 The NCU is responsible for the implementation, controlling and evaluation of the Project as well as for the use of the Grant in accordance with this Project Agreement and as stated in the Framework Agreement. The NCU shall ensure that all involved bodies fulfil the obligations and objectives stated in this Project Agreement and the Framework Agreement.
6.3 The NCU shall conclude an Implementation Agreement with the Municipality of Zemplinske Hamre that shall be assigned as the Executing Agency for this Project. The Implementation Agreement shall comply with this Project Agreement as well as with the Framework Agreement. Any other contract concluded in the framework of the implementation of this Project must not be in contradiction to the abovementioned agreements.
6.4 The NCU undertakes to support, advise and inform SDC with regard to project-related issues, including irregularities. The NCU undertakes to inform the Swiss Embassy immediately in writing with regard to key issues that could affect the implementation of the Project. In the event of the threat of any irreparable disadvantage, the NCU shall immediately take the requisite precautions.
6.5 The NCU or the Executing Agency will at all time clearly state that they are acting within the framework of the Swiss-Slovak Cooperation Programme to reduce economic and social disparities within the enlarged European Union. All publications referring to this Project Agreement must be labelled with the following term: "Swiss-Slovak Cooperation Programme”. The general public in the Slovak Republic will be informed adequately about the Project and the support provided by Switzerland.
Article 7 Project Organisation
7.1 The NCU supervises and steers the implementation of the Project; it establishes an adequate monitoring and financial auditing system.
7.2 Strategic decisions related to the Project are taken by the steering committee of the Project. The steering committee of the Project shall hold at least one meeting per year. If deemed necessary by one of the voting members of the steering committee, additional meetings are to be held. The meetings shall be organised by the Executing Agency, which also shall act as secretariat.
Members of the steering committee are representatives of the following parties:
- NCU,
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- Executing Agency, - any other party invited by the NCU or the Executing Agency.
Switzerland shall be invited to the Steering Committee meetings as an observer.
The steering committee shall i.a.: - Discuss operational and financial parts of the Project Reports;
- Propose requests on amendment of this Project Agreement;
- Discuss and approve any measures considered necessary to fully achieve the planned objectives.
Article 8 Monitoring and Review
The NCU shall ensure the establishment of a monitoring system that allows assessing periodically the status of achievement of the stated objectives. Results and conclusions have to be part of the project reports as mentioned in Art. 9 of this Project Agreement and should be the base of the annual reports on the Swiss-Slovak Cooperation Programme as stipulated in Art. 8 of the Framework Agreement.
Article 9 Reporting
9.1 Project Interim Reports cover a period of 4 months and are due to the Swiss Embassy not later than three months after the end of the period covered. The first Project Interim Report covers the period starting with the month of entering of this Project Agreement into effect and covers a period of 5 months . Project Interim Reports support payment claims and are therefore to be presented to Switzerland with the corresponding Reimbursement Request. They include information on financial and physical progress, compare actual with planned expenses and provide an update on progress status, while confirming the co-financing. Any deviation has to be justified and corrective measures suggested.
9.2 Annual Project Reports cover a period of one calendar year and are due to the Swiss Embassy not later than four months after the end of the reported calendar year. The first Annual Project Report covers the year of conclusion of this Project Agreement. Annual Project Reports have an operational part that describes the progress of the Project and include a financial part (Financial Report) having a summary data on financial progress for the reporting year as well as cumulative data to date. They compare actual with planned expenses and progress, based on quantified targets for output and where possible outcome indicators. Any deviation has to be justified and corrective measures suggested. Annual Project Reports are not linked to Reimbursement Requests.
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9.3 The Project Completion Report is due to the Swiss Embassy not later than six months after the final date of eligibility of costs, meaning not later than 31st of October 2015 for this Project. The Project Completion Report - together with the last Project Interim Report and the conclusions of the Final Financial Audit - is the base for the payment of the final reimbursement. The Project Completion Report has an operational part that documents and comments the overall achievement of outputs and outcomes against the original plan, the compliance with principles such as cross cutting themes and sustainability, and suggests lessons learned and conclusions. It contains a financial part (Final Financial Report) having a summary of financial data for the whole project and compare effective with planned expenses.
9.4 The financial parts of the Annual Project Reports and of the Project Completion Report, based on invoices or documents of equivalent value, are to be presented in local currency. The Reimbursement Requests are issued in Swiss Francs, the corresponding amount being calculated with the daily rate. The amount in local currency is also to be mentioned on the Reimbursement Requests.
Article 10 Audit
10.1 The NCU shall ensure that the Executing Agency will closely cooperate with the Audit Authority during the execution of audits. Any actual or alleged fraud or irregularity shall be followed, based on the respective national legislation.
10.2 At Project completion, an external licensed auditor will carry out a Final Financial Audit. The audit shall cover the period from 23 rd of February, 2012 to 30 th of April, 2014. It shall also provide a final declaration based on the results of any intermediary financial audits conducted. The conclusions and recommendations shall be transmitted to Switzerland, together with the Project Completion Report, by the NCU latest six months after the final date of eligibility of costs, not later than 31 st of October, 2015.
10.3 The NCU shall ensure that an external licensed auditor will be appointed for the purpose of execution of the financial audit of the Project in line with International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants. The NCU will submit to Switzerland for approval the name of the selected audit organisation. In case of external auditor: The costs are eligible for reimbursement and are included in the Project budget.
10.4 The objective of the audit of financial statements of the project is to enable the external licensed auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework (ISA 200, point 2). Thus, financial statements need to be prepared in accordance with one, or a combination of the international accounting standards, the national accounting standards or another authoritative and comprehensive financial reporting framework which has been designed for use in financial reporting and is identified in the financial statements (ISA 120, Point 3). The NCU shall ensure that the external licensed auditor will conduct the financial audit in accordance with International Standards on Auditing (ISA), issued by the International Auditing and Assurance Standards
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Board (IAASB) of the International Federation of Accountants (IFAC), to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether due to fraud or error (ISA 200, point 17). Results of any previous audits shall be taken into consideration. The NCU shall ensure that the external licensed auditor will take into account additional requirements that may be suggested by the Audit Authority or by Switzerland.
10.5 In addition to the auditor's report on the financial statements, the external licensed auditor is expected to provide the Executing Agency with a management letter concerning any material weaknesses in accounting and internal control systems detected by the external licensed auditor. Audit's arrangement with the external licensed auditor shall be effective for the whole project duration unless it is terminated, amended or superseded with appropriate justifications.
10.6 The NCU shall express its opinion to the conclusions of the financial audit and take appropriate correcting measures.
Article 11 Right of Examination
Switzerland, as well as any third party appointed by it, shall have the right to visit the Project, conduct a comprehensive assessment or evaluation, and shall be granted full access to all documents and information related to the Project settled by this Project Agreement, during its implementation and ten years after the end of the project as defined in art. 23.2 of this Project Agreement. The NCU shall, upon request, ensure that the above mentioned authorised representatives are accompanied by the relevant personnel and are provided with the necessary assistance. Requests under this article shall be sent at least two weeks before planned visit.
Article 12 Goods purchased under this Project Agreement
For the duration of the Project, goods procured under the Grant shall remain at the unrestricted disposal of the Executing Agency and shall not be diverted without prior written approval of Switzerland. No ownership transfer is allowed within five years after the completion of the Project, unless the Contracting Parties agree otherwise. Switzerland shall assume no liability whatsoever in connection with said goods.
Article 13 Liability
Switzerland does not assume any risk or responsibility whatsoever for any damages, injuries, or other possible adverse effects caused by the Project, including, but not limited to inconsistencies in the planning of the Project, other project(s) that might affect it or that it might
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affect, or public discontent. It is the full and sole responsibility of the NCU to satisfactorily address such issues.
Article 14 Common Concern The Contracting Parties share a common concern in the fight against corruption, which jeopardizes good governance and the proper use of resources needed for development, and, in addition, endangers fair and open competition based on price and quality. They declare, therefore, their intention of combining their efforts to fight corruption and, in particular, declare that any offer, gift, payment, remuneration or benefit of any kind whatsoever, made to whomsoever, directly or indirectly, with a view to being awarded a mandate or contract within the framework of this Project Agreement, or during its execution, will be construed as an illegal act or corrupt practice. Any act of this kind constitutes sufficient grounds to justify annulment of this Project Agreement, the procurement or resulting award, or for taking any other corrective measure laid down by the applicable law.
Article 15 Irregularities Clause
15.1 The NCU shall ensure efficient and prompt investigation of any suspected and actual cases of fraud and irregularity. The NCU shall, immediately report to the competent Swiss and Slovak authorities all suspected and actual cases of fraud and irregularity as well as all measures related thereto, taken by competent national authorities.
15.2 The Contracting Parties shall immediately inform each other if they become aware of any legal actions initiated or continued in relation to the Project.
15.3 In case of irregularities, wilfully or negligently caused by the NCU or the Executing Agency, regarding the execution of this Project Agreement and its annexes, Switzerland is entitled to: a) stop reimbursements immediately,
b) instruct the NCU to stop payments from the Swiss Contribution,
c) ask repayment of illegitimately paid reimbursements at any stage of the activities.
15.4 Irregularities are notably considered to be all actions or non-actions that are aimed at the illegitimate obtainment and/or usage of the Contribution - notably fraud, misappropriation, misrepresentation, breach of contractual duties, breach of duty of care and the like.
15.5 In case of irregularities, SDC shall immediately and in written form communicate the standpoint and reasons for their respective instructions and corrective measures to the NCU and all involved bodies.
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Article 16 Post-Completion Obligations
16.1 The NCU shall ensure that the Project is operational at least 5 years after it has been completed. An ex-post evaluation of the Project may be carried out by Switzerland. Non compliance with this Project Agreement or with the Framework Agreement may give Switzerland reasons to take corrective action, including claiming the reimbursements of the Grant.
16.2 Switzerland has neither responsibility for nor obligation to ensuring the maintenance, the repair or the undertaking of any measures for ensuring the safety and protection of persons, equipment, installations, of all objects on site or in the vicinity.
16.3 The Contracting Parties shall store all documents concerning this Project Agreement and its implementation for 10 years after the end of the project as defined in art. 23.2 of this Project Agreement.
Article 17 Annexes
The following annexes form an integral part of this Project Agreement: - annex 1: Confirmation of the Project approval by SDC - annex 2: Final Project Proposal composed of the Logframe of the Project, Budget of the Project and the respective Grant Application, - annex 3: Indicative disbursement plan.
Article 18 Language
18.1 All correspondence with Switzerland, including operational, financial and financial audit reports as well as project documents and any other documents related to the Project, shall be in English.
18.2 To the extent that original documents are not available in English, the documents shall be accompanied by full and accurate translations into English.
Article 19 Competent Authorities
19.1 The contracting parties shall take all appropriate and necessary measures to ensure the fulfilment of the obligations and objectives arising out of this Project Agreement.
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19.2 The contracting parties agree to provide all information necessary for the good functioning of this Project Agreement and to apply the highest degree of transparency and accountability as well as the principles of good governance, sustainable development and gender equality.
19.3 The contracting Parties shall promptly inform each other of any circumstances that interfere or threaten to interfere with the successful implementation of the Project.
19.4 All communication to Switzerland with regard to this Project Agreement shall be directed to the Swiss Embassy in Bratislava, which generally represents Switzerland towards the NCU.
19.5 Competent authority for the Slovak Republic:
Government Office of the Slovak Republic Department of Management and Implementation of the Swiss Contribution Námestie slobody 1 813 70 Bratislava Slovak Republic T: +421 2 572 95 111 F: +421 2 524 97 595 E: [email protected]
19.6 Competent authorities for Switzerland: Swiss Agency for Development and Cooperation (SDC) Freiburgerstrasse 130 CH - 3003 Bern Switzerland Tel: +41 31 322 34 75 Fax: +41 31 324 16 94
Embassy of Switzerland Swiss Contribution Office Michalska 12 811 01 Bratislava Slovak Republic T: +421 2 5930 1111 F: +421 2 5930 1100
Article 20 Settlement of Disputes
20.1 In accordance with Art. 11 of the Framework Agreement, any dispute which may result from the application of this Project Agreement shall be solved by diplomatic means.
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Article 21 Amendments
21.1 Any amendment to this Project Agreement and its annexes shall be made in writing with the mutual agreement of the Contracting Parties and according to their respective procedures, except changes in articles 19.5 and 19.6 that will be communicated without undue delays by an official letter only.
21.2 Any increase of the Project budget, any significant changes within the budget as well as any strategic changes or conceptual adjustments to the Project shall be discussed with and approved by Switzerland.
Article 22 Termination, Suspension
22.1 This Project Agreement can be terminated at any time by one of the Contracting Parties upon a three-month prior written notice. The Contracting Parties shall decide by mutual agreement on any consequences of the termination.
22.2 If either Contracting Party considers that the aims of this Project Agreement can no longer be achieved or that the other contracting party is not meeting its obligations, it shall have the right to suspend immediately the application of this Project Agreement by giving the other Contracting Party a written notice on the grounds.
Article 23 Entry into Force, Duration
23.1 This Project Agreement shall enter into force on the date of its signing by the Contracting Parties and enter into effect on 23.02.2012, and shall remain in force until all obligations under it have been fulfilled.
23.2 The Project shall be implemented in 27 months, starting on 23.02.2012 and ending on 30.04.2014.
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Done in Bratislava on 21.02.2012, in six originals in the English language and in six originals in the Slovak language. NCU shall receive five originals in both language versions and SDC shall receive one original in both language versions. In case of divergence in the interpretation of this Project Agreement the English version shall prevail.
For the Federal Department of For the Government Office of the Foreign Affairs Slovak Republic Swiss Agency for Development and Cooperation
H.E. Christian Fotsch Viktor Niž ňanský Ambassador of Switzerland Head of the Government Office of the Slovak Republic
15 Scŕlwt-tzensch!' Eldg<"r.o<;senseh.1ft Federal Department of Foreígn Aflatrs FDFA Conŕl>dératton su>sse Swlaa Agency for Oenlopmentand Cooperation SOC Conh:deraz1one Sv1nera Cooperation wíth Eastern Europe Confť'deranun svtzra
CH-3003 Bern.DEZA. KKU
A Post National Coordination Unit Mr. Ivan lvančin Director of the Department of Management and Implementation of Swiss Financial Mechanism Government Office of the Slovak Republic Námestie slobody 1 813 70 Bratislava Slovak Republic
Your reference: 1264912011/0RISFM Our reference. 7F-07898.011 FRI Berne, 19 January 2012
Subject: Swiss Contribution to the Enlarged EU - Cooperation Programme with Slovakia Oeciaion Letter on the Final Project Proposal Project Name: Zemplinske Hémre - discoverlng the history of mining and lron smelting in Vihorlat mountains Project N°: 7F-07898.01
Dear Mr. lvančin
The Final Project Proposal mentíoned above and submitted by the NCU on 31 October 2011 has been considered by Switzerland l have the pleasure to inform you that the project has been:
Approved Approved Swiss grant: CHF 1 '192'000.-
The project is considered as bemg of good quality and relevance. Nevertheless. you are kmdly requested to take mto account the recommendation expressed below, before proceecilng wtth the finalization of the Project Agreement as fíxed in the Annex 2 of the Framework Agreement, section 2.
Recommendations
1. The loca! government should prepare the loca! community for an increasing number of visitors and it should promote "a welcoming culture" in the municipality. The museum is a living space of lnhabitants facing vis1tors from outsíde creating new contacts and neighbourhoods. These proposttíons and measures are not defined in the FPP, but could be taken up between the NCU and the SCO at the time of negotiating the Project Agreement to which the revised final logframe shall be included.
Swiss Agency for Development and Cooperation SDC Kurt Kunz 2. It may be relevant to approximately assess the economic benefits of the investments made by the project after its completíon as well as to survey the vísitors regarding their satisfaction with the museum, the tourísm centre, the renovated techntcal monuments and with the educational trail
' History of industnal production' and the satisfaction of tocal citizens, while starting trom a baseiine descliblng the current situation. lndicators could include the number of additíonal visitors and their estimated spending in loca! busínesses as well as degrees of satisfaction.
Yours sincerely,
Swiss Agency for Development and Cooperation SOC
Ambassador, Assistant Director-General
Copies: SwissContribution Office Prague Swiss Embassy in Bratislava Annex 2: Logframe - Zemplinske Hamre – discovering history of mining and iron smelting in Vihorlat mountains Project description Indicators Source of verification Assumptions Overall objectives Increasing the competitiveness and the - Minimum 5 new jobs in the area of tourism services - Statistical statements and reports prepared employment in the municipality of Zemplinske created in 2016 compared to 2010 by municipality Zemplinske Hamre Hamre and its surrounding by development - Number of visitors served by tourism establishments - Evidence of tourism subjects / statistical and utilization of its tourism and cultural compared to 2010 increased by 9 000 reaching statements prepared by the hospitality and potential. 27 600 in 2015 accommodation providers - Earnings of establishments offering tourism services increased compared with 2011 Project purpose Increase of quality and widen offer of tourism - Number of subjects offering tourism services in - Statistical statements and reports prepared - Positive economical and political situation services utilizing the year-around attractions Zemplinske Hamre and its surrounding increased by by municipality Zemplinske Hamre in Slovakia and involvement of tourism auxiliary tools in 25% from 8 to 10 in 2014 (including the TIC and municipal museum) - Functioning SME support and job’s the municipality of Zemplinske Hamre and its - Implementation of common marketing action plan by 9 - Web page www.zemplinskehamre.sk creation and sustainment system in surroundings. subjects offering tourism services in Zemplinske - Visitors tourism service satisfaction survey Slovakia Hamre and its surrounding (Zemplin region) - Coordination of tourism in the Snina - Satisfaction of the visitors of the municipality and its region allowing its support from public surrounding with offered tourism services increased in sources in line Act 91/2010 Coll. on 2014 compared to 2012 tourism support Results Municipal museum in Zemplinske Hamre - Municipal museum in 2014 offers on the area of 1 169 - Project completion report - Suitable forms of involvement of local focused on history of industrial activities in m2 4 indoor expositions, 4 outdoor expositions - Operational documentation of the municipal and regional organizations into the Vihorlat mountains created including 6 reconstructed historical monuments museum and TIC preparation of common strategy and (mining – mine, ironworking – blast furnace, hammer - Photo documentation tourism product mill with water headrace, charcoal production – pile, - Legal take over - Interest for history and heritage by young wood transport – narrow gauge railway and 2 - Web page generation living in the region manufactories - Declarations of partnership respectively - Active attitude and approach of local - Length of marked tourist roads in Zemplinske Hamre Cooperation agreements inhabitants cadastre increased by 4 km from 3.6 to 7.6 km (Hamor - Cooperation with schools and their educational trail, 12 stops) management and lectors in presentation - 2 persons employed by the municipality and trained for of the cultural and historical potential of operation of Municipal museum/TIC the area during the education process Tourist information center and complex tourism - Tourism information center on the area of 32.4 m2 in using active methods information system created and operated in operation from 2014 providing information including Zemplinske Hamre non-stop access via 3 information kiosks - Action plan on development of tourism adopted by all tourism subjects in the municipality - Propaganda of tourism in Snina and Zemplin region including the possibility for tourism and quality of services development in 10 subjects approached within the promotion campaigns
1 Activities Means/ inputs Costs and financial sources (CHF) 1. Elaboration of technical and special 51 – Services (public procurement and building permit PPF 24 200 - Availability of qualified personnel in documentation for submitting of Final documentation, analysis, translation) municipalities and tourism services project proposal providers - Cooperation of subjects involved in 2. Renovation of destroyed technical 02- Building Procurement (reconstruction of 6 historical NFP 100% 402 840 tourism and self/governments in the monuments in Zemplinske Hamre monuments) municipality of Zemplinske Hamre 02 - Tangible assets (4 replica) NFP 100% 143 750 51 – Services (author supervision) NFP 100% 12 500
3. Municipal museum 02- Building Procurement (reconstruction of 2 buildings, NFP 100% 514 300 cca 620 m2 of used area| 02 - Tangible assets (panels, electric oven| NFP 100% 11 650 51 – Services (fare, consultance) NFP 100% 1 380
4. Tourist information centre 02- Building Procurement (TIC 45.3 m2)) NFP 100% 79 060 02 - Tangible assets (notebook, office furnishing) NFP 100% 3 800
5. Educational trail “History of industrial 02 - Tangible assets (panorama map, 3 multimedia NFP 100% 44 400 production” in Zemplinske Hamre information kiosks, panels) 51 – Services (fare, accommodation, consultation 54 NFP 100% 52 120 mandays)
Indirect project costs NFP 100% 37 000 Reserve (buildings) NFP 100% 99 600
Overall project expenses: 1 534 000 Eligible expenses of Project: 1 402 400 Grant from PPF: 24 200 Non-repayable assistance (NFP): 1 402 400 (100 % of eligible expenses of project) Pre-condition: Fulfillment of conditions for start-up of construction in line with the Act 50/1976 Coll. Building Code
2 Annex 2: Budget of the Project
Budget Breakdown
Total Eligible % of eligible Expenditure group expenditure expenditure expenses on (CHF) (CHF) total eligible expenses of the project a) b) c) d) 01 – Intangible asset 0 0 0,00%
02 – Building Procurement 1 103 000 996 200 71,04%
02 – Tangible asset 204 000 203 600 14,52%
03 – Land Procurement 0 0 0,00%
50 – Consumed Purchase 0 0 0,00%
51 - Services 90 400 66 000 4,71%
52 – Own Personnel 0 0 0,00%
Indirect project costs 37 000 37 000 2,64%
Reserve 99 600 99 600 7,10%
Total project expenditure (CHF) 1 534 000 1 402 400 100,00%* * minor differences in percentage of eligible expenses on total eligible expenses of the project may occur due to rounding up of the total eligible expenditure of the project
NATIONAL COORDINATION UNIT
GRANT APPLICATION
Type of Application Final Project Proposal
Applicant: Municipality of Zemplinske Hamre
Type of Project Individual project Zemplinske Hamre – discovering history of mining and Project Title iron smelting in Vihorlat mountains Thematic Focus Security, Stability and Support for Reforms Regional development initiatives in peripheral or Focus Area disadvantaged regions tourism planning at regional and district level
Project specific area mobilisation of tourism potentials
strengthening and improving the social network NUTS 2 East Slovakia Geographical focus NUTS 3 Prešov NUTS 4 Snina district Project duration (in months) 27 Indicative start date of the Project 03/2012 Implementation (MM/YYYY) Indicative end date of the Project implementation 05/2014 (MM/YYYY) Project Total Budget (EUR) 1 226 484,04
Requested Grant (EUR) 1 121 771,41 Swiss Contribution out from the requested Grant 953 505,70 (EUR) % of Grant on Total Budget 100 %
Code of Call 2010-03
Code of Project 9495/2010/ORIŠFM
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1. Applicant Applicant’s full legal name Municipality of Zemplinske Hamre Legal status self-government Official address Municipality of Zemplinske Hamre Hlavna ul. 152/183, 067 77 Zemplinske Hamre Postal address NA Organization Identification No. 323853 VAT payer NO Date of establishment 01.01.1990 Web page www.zemplinskehamre.sk Members of the Statutory Body Ing. Jozef Gajdoš, mayor Full name of contact person Ing. Jozef Gajdoš Fax of contact person Email of contact person Main activities of the organization with In accordance with Slovak Act No. 369/1990 Coll. on Municipal regard the submitted Project (max 900 Establishment the municipality Zemplinske Hamre executes all characters) activities related with public governance. Beside this the municipality realises also business activity - it is the owner and manager of Sport-Recreational Area Barnova rika. It is a member of several associations for regional development (White Stones Association, Cirocha Association, Slovak Iron Trail Association). The municipality Zemplinske Hamre in relation to submitted project preserves the cultural heritage with aim of its effective use for tourism development of Snina region. The municipality will ensure the bookkeeping in frame of the project. It will also active participate in preparation of all strategic documents. Total number of employees by the last day of 14 the previous month Turnover (v thousands EUR) 2006 344 2007 392 2008 525 2009 490 Assets (in thousands EUR) 2006 1 200 2007 1 289 2008 1 618 2009 1 868 Accounting Single entry Double entry Construction of Sport-Recreational Area Barnova rika. 2002-2010. Previous experience in project Total costs: 365 133 €. Financed from: own budget 232 357 €, credit implementation in similar area 99 582 €, grant from Office of the Government of SR for construction of multifunctional playground 33 193,90 €. Objectives: create of conditions for economic development of village, mainly tourism development. Activities: construction of swimming pool, children pool, sauna, children playground, multifunctional playground, tennis courts, parking places. Revitalisation of municipal infrastructure. 2011-2012. Total costs: 400 665 €. Grant EU: 380 632 € (ROP, measurement 4.1a). Objectives/Activities: reconstruction of infrastructure – square, communications, pavements, bridges, landscape gardening, illumination. Zemplinske Hamre – technical documentation for the revitalisation of municipal infrastructure. 2005 – 2006. Total costs: 450 000 Sk (14 937 €). Grant EU: 427 500 € (14 190 €). Objective: project preparation of complex revitalisation of municipal infrastructure. Activities: technical documentation for construction permit (objects – square, communications, pavements, bridges, illumination, bell tower, shelters).
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2. Project Partner’s data Number of partners in project No. Full legal name Justification of the involvement of the partner (max. 600 characters per partner) 1. Children organisation FÉNIX, civic Partner is author of several cycloroutes and tourist paths in Snina association region (International cycloroute R-61 Green bicycle leading from Regional directorate of Snina Poland through Snina region to Ukraine, Cycloroute of Icons...). In this project will provide counselling in preparation and implementation of Activity 5) Educational path Zemplinske Hamre. His task will be mostly supervision of fullness and rightness of data listed in panoramic maps of region which will be part of tourist signing of planned educational path. Besides this will be helpful by starting of both craft workshops planned in municipal museum. Together with other partners will participate on preparing of Tourism action plan and Annual museum programming and events of the Educational trail. 2. Slovak Technical Museum Partner is a specialized museum with a nationwide scope documenting the history of science and technique in Slovakia. It will participate on planning of expositions in hammer mill and mine. Together with other partners will participate on development of Tourism action plan and Annual museum programming and events of the Educational trail. It will be helpful with completion of historical equipment exposed in hammer mill (not included in project budget). 3. Zemplin Museum Michalovce Partner is a regional museum documenting the natural, cultural, historical and economic evolution of Zemplin region. It will participate on planning of interior museum expositions. Together with other partners will participate on development of Tourism action plan and Annual museum programming and events of the Educational trail. Besides this will ensure the professional education of employees in area of museum management and curatorship. 4. Association Pro Gonzenbergwerk Partner is the famous museum of mining in Sargans, Switzerland. It looks back to a successful work and will serve as a case and model for the municipality Zemplinske Hamre. It facilitates insights into the practice of right management, running, establishment of mining museum as well as successful marketing. Relevant are the impacts of the museum and its activities on people and institutions of the local and regional context. Together with other partners will participate on development of Tourism action plan and Annual museum programming and events of the Educational trail.
3. Project 3.1 Project title Development of horse tourism in Eastern Carpathians 3.2 Geographical identification of the project implementation Region: East Slovakia Self-governmental territorial unit: Prešov Self-Governing region District: Snina Municipality: Zemplinske Hamre tourism planning at regional and district level 3.2a Project specific area mobilisation of tourism potentials strengthening and improving the social network 3.3 Project results Project Result Output indicator Value new tourism services provided in Zemplinske Hamre number 2 utility area of new tourism facilities in Zemplinske Hamre m2 1201 (from grant) 2356 (total) revitalised technical monuments in Zemplinske Hamre number 8 non technical monuments revitalised in frame of project (part of number 2 educational path) marked tourist trail in cadastre of Zemplinske Hamre km 4 increase of capacity of new tourism facilities in Zemplinske Hamre number 9000/year elaboration of strategic documents accepted by all tourist facilities number 1 in Zemplinske Hamre 3
Activity 1 Elaboration of technical and special documentation for submitting of Final project proposal Financial sources from NPP were used for elaboration of documentation necessary in project implementation: 1) Historical technical documentation ( Annex 17.E )elaborated following historical research in archives 2) Technical documentation for building permit ( Annex 17.F ) for objects SO 01 Reconstruction of stone house with cornloft for municipal museum, SO 02 Replica of water head-race and hammer mill, SO 04 Reconstruction of narrow- gauge railway, SO 05 Reconstruction of mine, SO 06 Replica of charcoal pile, SO 07 Construction of tourist- information centre. Two other building objects designed before from own sources (SO 03 Replica of wooden bell- tower and SO 08 Construction of shelter) were included in technical documentation. 3) Final Project Proposal including Financial Analysis, Market Analysis and Tourism Destination Strategy ( Annex 7B and Annex 17.B) 4) Public procurement and preparation of tender documents ( Annex 8 ) The activity was finished by submitting of request for building permit ( Annex 17.G ) on local Construction Office. Activity 2 Renovation of destroyed technical monuments in Zemplinske Hamre Aim of the project is the revitalisation of existing cultural and technical monuments and notabilities in village and construction of replicas of destroyed technical monuments which should document industrial and economic activities in the village in 19 th century - iron mining and smelting, wood cutting, charcoal production and timber transport. The oldest existing buildings in the village – stone house with cornloft - are planned for the municipal museum. Further will be reconstructed part of narrow-gauge railway. Other objects (blast furnace, hammer mill with water head-race, wooden bell-tower, charcoal pile and mine) will be technically solved as replicas of former objects destroyed in the past or still existing but with no real renovation to the original situation. These objects will represent 4 external expositions of municipal museum: 1) iron mining – mine, 2) iron working and smelting – blast furnace, hammer mill with water head- race, 3) charcoal production – pile, 4) timber transport – narrow-gauge railway. Construction works will be realised following the technical documentation for building permit. They could start after obtaining of building permit and public procurement of works (together with Activity 3 and 4). The progress of works during the project implementation will be monitored by technical supervisor. At the beginning of works will be placed the information billboard with logo of the Swiss-Slovak Cooperation Programme. After completion of works will be installed the memorial tables on the objects. In frame of this activity will be realised the equipment of narrow-gauge railway and mine. Duration: 27 months Activity 3 Municipal museum In two oldest buildings in Zemplinske Hamre – stone house and cornloft from the beginning of 19 th century we plan to establish municipal museum with 4 permanent expositions focused on history of industrial production in the village, Carpathian narrow-gauge railways, Primeval beech forests of the Carpathians listed in World Heritage List of UNESCO and also regional attractions. In museum will be 2 craft workshops (weaving, ceramic) and reconstructed original oven for baking of bread. Construction works will be realised following the technical documentation for building permit. They could start after obtaining of building permit and public procurement of supplier (together with Activity 2 and 4). The progress of works during the project implementation will be monitored by technical supervisor. At the beginning of works will be placed the information billboard with logo of the Swiss-Slovak Cooperation Programme. After completion of works will be installed the memorial tables on the objects. In frame of this activity will be realised the equipment of narrow-gauge railway and mine. Equipment: Thematic concept of 4 planned permanent expositions will be realised in cooperation with Zemplin Museum Michalovce and Slovak Technical Museum Košice. After this will be realised the public procurement of promotion outputs (No. 4). Equipment will be delivered before end of construction works. To the municipal museum will be moved all historic tools from temporary museum in municipal office. Other historic tools which were not preserved in the village and are needful for promotion of industrial activity will be lent from Partner 2 – Slovak Technical Museum Košice (not included in the project budget). Measures for sustainability (management, marketing, personnel): Six months before the end of construction works will be realised a selection procedure of museum and TIC employees. Their professional education in museum management will be ensured by Partner 3 – Zemplin Museum Michalovce. Partnership cooperation will continue even after end of the project (common exhibitions with partner museums, creative craft workshops realised by Partner 1 – Children organisation Fenix Snina, demonstrations of baking the bread etc.). Duration of activity: 27 months Activity 4 Tourist information centre On the end stop of planned Educational trail and together the starting point for 2 other tourist trails ( yellow mark: cycloroute by trail of former narrow-gauge railway into the Recreational area Snina ponds and green mark: hiking trail to Vihorlat Protected Landscape Area) we plan to built the tourist information centre. It will be simple building 4x6 m from natural materials (wood, stone).
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Construction works will be realised following the technical documentation for building permit. They could start after obtaining of building permit and public procurement of works (together with Activity 2 and 3). The progress of works during the project implementation will be monitored by technical supervisor. At the beginning of works will be placed the information billboard with logo of the Swiss-Slovak Cooperation Programme. After completion of works will be installed the memorial tables on the object. Equipment will be delivered before planned end of construction works, by contractor selected following public procurement. Measures for sustainability (management, marketing, personnel): Six months before the end of construction works will be realised a selection procedure of museum and TIC employees. Their professional education will be ensured by Partner 3 – Zemplin Museum Michalovce. The tourist informer will pass the education in museum management/curatorship too due to necessary substitutability. Duration of activity: 27 months Activity 5 Educational trail "History of industrial production" in Zemplinske Hamre Tourist information system: Educational trail in length of 4 km will connect all existing monuments revitalised in frame of this project and all historical sites. It will lead from the Church square where is situated the stone house with cornloft (municipal museum). Gradually promote the former artificial lake, complex of former foundry, iron smelting and iron working in blast furnace and forging hammer on water head-race. Further it will lead along Barna stream to the locality By Vozar (place of former hammer mill rebuilt to a saw mill) and finally to the end of village – starting place of cycloroute and hiking trail – place where is planned the tourist information centre. Final stops will be revitalised narrow- gauge railway, mine and charcoal pile. All monuments and historic places will be presented by 12 information panels in 4 most frequently used languages. Plan of Educational trail is enclosed in Annex 17.D . In most frequently visited places will be installed 2 tourist shelters, 3 panoramic maps of region promoting planned Educational trail in connection to other hiking trails and cycloroutes in Snina region, as well as 3 multimedial information kiosks. Planned website will provide tourist information in most frequent 4 languages. New information guide about Educational trail will be issued and distributed in planned tourist information centre and partner organisations. Promotion activities will be realised with aim to improve the miserable quality of present tourist information and to ensure 100 % approach to tourist information. Strategic planning for successful marketing and management: In frame of this activity will be all partners involved into development of tourism action plan and annual museum programming and events of the Educational trail with aim to help start the running of museum as well as successful marketing. The municipality together with Partner 1 – Children organisation Fenix Snina will initiate the involvement of other subjects acting in tourism with aim to support tourism development in Snina and Zemplin region. Duration: 15 months 3.5 Project’s target groups (please indicate their number) Target group – name Target group – number visitors of museum (segment tourists) 7 000 / year visitors of museum (segment students) 2 000 / year Relevance of the project 3.6 Project purpose (max 600 Project purpose: development of peripheral region Snina through mobilisation characters) of cultural-cognitive tourism, revival of cultural and technical heritage of municipality, creation of possibilities for all-year tourism in Zemplinske Hamre, improvement of tourist services and creation of possibilities for prolongation of their stay here
Project results: - creation of 1 new tourism product in Snina region – Educational trail in Zemplinske Hamre (12 stops, 4 km), focused on history of industry in Vihorlat mountains (mining, smelting and charcoal production) documented by 4 external expositions (mining – mine, ironworking and smelting – blast furnace, hammer mill with water head-race, charcoal production – pile, timber transport – narrow-gauge railway) and 4 internal expositions in municipal museum (history of industrial production in the village, Carpathian narrow-gauge railways, Primeval beech forests of the Carpathians listed in World Heritage List of UNESCO, famous natives and regional attractions) - pcs), - improvement of information services for visitors thanks to the complex tourist information system ( information centre, 3 multimedial kiosks, multilingual website, 12 information boards of educational trail, 3 orientation maps, multilingual leaflets) - increase of employment (directly creation of 2 new jobs), development of small and medium enterprises in Zemplinske Hamre and Snina region 5
3.7 Project justification in relation Municipality Zemplinske Hamre becomes gradually one of the most visited to the initial situation (max 1800 places in Snina region. It is primarily because of its strategic localisation on characters) foothill of Vihorlat mountains (listed in UNESCO World Heritage) but also due to its effort to provide and permanently improve sport and recreational services which became popular tourism destination. In 2010 almost 70 000 tourists visited Zemplinske Hamre, thereof almost 52 % visited PLA Vihorlat (hiking - Sninsky Kamen Hill and Lake Morske Oko) and cycloroute of the former narrow-gauge railway (cyclotourism). Around 27 % out of the total number (18 600) visited the Sports and recreational area Barnova in order to relax near water whereby the multiple visits were paid by the same tourists, primarily from the region of Snina. Due to a fact, that present tourist services are highly depending on weather conditions, the visit rate varies. A long-term rainy period and cold weather in general in summer season 2011 (from 30 days was bad weather 20 days) caused a massive decrease in visit rate of Zemplinske Hamre. To 31 st July 2011 was the visit rate of village almost 24 000 tourists thereof only 2060 visited the Sport and recreational area Barnova rika. Therefore, it is necessary to develop tourist activities offered all year round. The new planned tourism product reflecting the history of industrial production in the mountains of Vihorlat can be exploited throughout the year. With its offer it could address the largest segments up to now (relax near water, cyclists/ hikers).Further marketing activities can increase the visit rate of such segments/markets which only transit through the village to PLA Vihorlat or visited the village until now rarely (students of in the framework of an education system – „Regional education“). There is a realistic assumption that after a completion of the already started huge infrastructural investments in Zemplinske Hamre (2012) and by increasing a tourist offer for visitors and quality of services, the visit rate of Zemplinske Hamre will increase at minimum on the level of year 2010. Zemplinske Hamre is the youngest municipality in region. It was founded before 200 years as settlement due to mining and smelting of iron stone. And this is the uniqueness of Zemplinske Hamre – it is the only from 34 municipalities in Snina region where was realised mining and smelting of iron. So it has rich mining and industrial history which was until now never used for tourism development due to fact that most of technical monuments were destroyed. Our aim is to revive historical heritage of our village, to complete present sport- recreational services with new cultural-cognitive tourism product focused on history of industrial production in Vihorlat mountains (mining, smelting and charcoal production). 3.8 Project’s contribution to the LOCAL LEVEL: objectives of the micro-regional/ compliance with Economic and social development programme of local, regional and national Zemplinske Hamre 2004 – 2014 1 strategic plan „Tourist infrastructure“, development plans (building of open air museum, complex tourist information system). Solving of identified problem „Missing heritage references“, concrete: preparation of technical documentation of monuments according to historical documents, construction of bell tower and its placement in original place, building of water headrace and mill, construction of municipal museum. compliance with Land Use Plan of Zemplinske Hamre 2 binding part of Land Use Plan. Project activities are solved in compliance with determined regulatives. Renovation of not existing buildings will be realised meeting requirement to maintain original architectural elements of building objects. In process of preparation the technical documentation will be used historical pictures and drafts.
1 http://www.zemplinskehamre.sk/hlasovania_a_uznesenia.php 2 http://www.zemplinskehamre.sk/uzemny_plan_obce.php 6
REGIONAL LEVEL: compliance with Economic and social development plan of Prešov Self- Governing region 2008 – 2015 3 priority theme 2 „Tourism development“, measurement 1.1: Preservation and renovation of tourist attractions, measurement 1.2: Preservation and building of basic infrastructure in tourism, measurement 1.3: Improvement of quality and offer of tourist products and services with emphasis on using of information and communication technologies. With main aim “Prešov region – the sought out tourist destination in Slovak republic”. compliance with Development plan Slovakia – East 4 topic „Tourism“, Priority 2: Effective use and development of tourist, natural, cultural and historical heritage, Specific objective 2: Renovation of important monumental objects and integrate them into tourism products. Also compliance with topic „Rural economic development“, Priority 1: Increase of rural attractiveness and regeneration of rural settlements, Specific objective 3: Increase of rural attractiveness for tourism. NATIONAL LEVEL: compliance with Tourism Development Strategy of the Slovak Republic until 2013 5 Specific objective 3: Increase of capacity of cognitive tourism – aim is „ preservation of mining works and devices in Slovakia as historically one of the most important centres of European mining and these reconstruct so it could be presented as technical and historical monuments in tourism. By this way create eventually complete existing individual projects for realisation of open air museums, educational paths, geo-parks and centres reflecting on mining history in region. Projects realise also from EU funds
Organization of the Project 3.9 Organisational part responsible for the Municipality Zemplinske Number of 1 internal Project implementation Hamre employees (bookkeeper) - general responsibility for project implementation and
bookkeeping 2 external (manager, Project and financial supervision) management and technical supervision of investor will be realised by external subjects selected in public procurement. 3.10 Personnel provision for the project Role in the project Number of persons External project and financial manager 1 subject/person (result of public procurement) External technical supervision of investor 1 subject/person (result of public procurement) Public procurement 1 subject/person (result of public procurement) External auditor 1 subject/person (result of public procurement) Bookkeeper 1 employee of Applicant (not included in project budget) 3.11 Technological provision for the project Technological provision for the project will be realised by external suppliers chosen in public procurement. Applicant allows the access to lands, will provide information and documents necessary for building approval procedures. For bookkeeping of the project will use its own premises of Municipality Office, equipped by PC, copying machine, print machine, telephone, internet.
3 http://www.po-kraj.sk/sk/samosprava/urad/odbor-regionalneho-rozvoja-uzemneho-planu-zivotneho-prostredia/dokumenty- regionalneho-rozvoja/phsr-psk-2008-2015.html 4 http://www.po-kraj.sk/files/dokumenty/Dokumenty-PSK/regionalny-rozvoj/rozvoj-dokumenty- kraja/rozvojovy%20plan%20vychod.pdf 5 http://www.economy.gov.sk/nova-strategia-rozvoja-cestovneho-ruchu-sr-do-roku-2013/130538s 7
3.12 Publicity and information measures (max 600 The general public will be informed about project characters) implementation by several means: During project implementation: - building site: large information billboard - articles in press (local, regional, national) - television (regional, national) - www.zemplinskehamre.sk After project completion: - ceremonial opening of Educational trail (not financed from project budget) - memorial tables on built/reconstructed objects - information about sources of financing including logo of Swiss Contribution Programme in all promotion outputs (12 information panels of Educational trail, 3 panoramic maps, 3 multimedial kiosks, information guide distributed in TIC, website promoting the educational trail in 4 languages)
4. Scheduled and related expenses of activities
% from total direct Total direct expenses on activity (EUR) Activity Activities expenses of all timeframe Current Capital Total activities (in months) expenses expenses (c+d) a) b) c) d) e) f) Activity 1 NA 19 360,00 0,00 19 360,00 1,87 Activity 2 27 15 200,00 434 242,90 449 442,90 43,40 Activity 3 27 10 400,00 411 435,85 421 835,85 40,74 Activity 4 27 3 612,70 63 240,68 66 853,38 6,46 Activity 5 15 61 685,00 16 314,03 77 999,03 7,53 Total 27 110 257,70 925 233,46 1 035 491,16 100
5. Budget Breakdown Eligible Non-eligible Total % of eligible expenses Expenditure group expenditure expenditure expenditure on total eligible expenses (EUR) (EUR) (EUR) of the project (b+c) a) b) c) d) e) 01 – Intangible asset 0,00 0,00 0,00 0,00 02 – Building Procurement 796 919,43 85 352,63 882 272,06 71,04 02 – Tangible asset 162 826,73 0,00 162 826,73 14,52 03 – Land Procurement 0,00 0,00 0,00 0,00 50 – Consumer Purchase 0,00 0,00 0,00 0,00 51 - Services 56 385,00 0,00 56 385,00 5,03 52 – Own Personnel 0,00 0,00 0,00 0,00 Indirect costs – external 5 000,00 0,00 5 000,00 0,45 financial audit Indirect costs for enhancement 20 961,31 0,00 20 961,31 1,87 of capacities of the applicant to manage the project Indirect project costs Reserve 79 691,94 0,00 79 691,94 7,10 Total project expenditure (EUR) 1 121 771,41 85 352,63 1 207 124,04 100
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6. Risk and risk management
Impact on project Value of Influenced Description Likelihood implementation Risk mitigation reserve activity of potential Extension Increase of Outputs measures (in EUR) risk of the time expenditur reduction of project es implement ation 1. Activity unpredictable high Detailed visual 79 691,94 2,3 barriers of inspections of the technical actual state, in character particular before during beginning of reconstruction demolition works, of historic control after each objects phase of work Total financial reserve 79 691,94
7. Public Procurement No. Public procurement subject Procurement Activities Start date Contract value method covered net VAT 1. open procedure construction works contract below limit Activities 2 – 4 03/2012 664 099,53 € works 2. open procedure Activity 2 equipment – historic and craft tools contract below limit 03/2012 98 583,33 € goods Activity 3 3. call for submissions of tenders equipment – information technologies Activity 4 contract below 09/2013 10 355,61 € and office furniture threshold Activity 5 goods open procedure 4. promotion outputs and tourist Activity 3 contract below limit 03/2013 41 750,00 € information system services Activity 5 Total 814 788,47 €
8. Source of project funding 1. Total project expenditures EUR 1 207 124,04 1.1. Total non-eligible expenditure EUR 85 352,63 1.2 Total eligible expenditure EUR 1 121 771,41 2. Requested Grant EUR 1 121 771,41 3. Applicant own sources EUR 85 352,63 3.1 Bank loans out of Applicant own sources EUR 0,00
9. Horizontal criteria 1. How will the project contribute to the objectives of the sustainable development strategy? NATIONAL STRATEGY OF SUSTAINABLE DEVELOPMENT http://www.tur.vlada.gov.sk/data/files/950.pdf Project directly solves these problem tasks: 9. Unequal development of urban area, difference in planning activities. Concrete: effort to avoid deepening of inter- regional differences and elimination of differences between urban and rural environment, creation of assumptions for elimination of unpopulation of small rural sites – by activities relating to increase of attractiveness of village, creation of conditions for more intensive inflow of tourists, mainly foreign +prolongation of their stay in village and region, finally economic development of Snina region 10. Forming of peripheral, marginal regions. Concrete: decrease of great regional differences also in infrastructure which has negative impact on other facts (increase of number of unemployment people, socially dependent citizens, low income of economically active population, big dependence on social benefits, low quality of services). Planned Educational trail with its all stops (revitalised monuments) contributes to completion of necessary infrastructure for peripheral region development. 11. Support of construction and maintenance of building fund and protection of historical structures in a country. Concrete: Renovation of historical heritage, preservation of heritage for the future generations. 9
22. Development of tercial sector (technical and transport infrastructure and tourism) and its negative aspects. Concrete: Improvement of offered tourist services, completion of sport-recreational services by cultural-cognitive tourism. Creation of complex tourism with possibility for variations (sport, relax, cognition…). 28. Improvement of the environmental quality in regions. Concrete: Support of ecotourism – using of country in accordance with its natural assumptions (potential) and with regard to rigid respecting of its limits, applying of regulatives for using the area and ensuring the protection of significant values. 2. What are the environmental impacts of the project implementation? What measures are proposed to mitigate the negative environmental impact? Project has no negative impacts on environment, for our project should not be processed the study of environmental impacts in accordance with Directives No. 85/337/EEC and 97/11/ES and new Slovak Act No. 24/2006 on environmental impact assessment. Usable waste from construction works will be transported to the collecting places. Other waste will be placed in Snina dump. 3. How are the gender equality and the non-discrimination principles applied in the project implementation? Project creates assumptions for equal treatment in providing services and equal treatment in labour relations (equality of remuneration of women and men for the equal work and work of equal value). Project outputs could use all people without any restrictions. Project enables the physically disabled visitors to use new services provided in the municipal museum and tourist information centre - unbarrier entrances to the buildings or access to the building provided by ramp. 4. How will the project contribute to the enhancement of the bilateral relations with the Swiss Confederation? The Swiss partner of the municipality Zemplinske Hamre is the famous museum of mining in Sargans. It looks back to a successful work and will serve as a case and model for the planned activities in the municipality Zemplinske Hamre. Exchange of knowledge with the Swiss partner helps running of museum and together with suitable marketing promote the industrial history of the municipality Zemplinske Hamre. The exchange of information will be mutual and enrich the visibility of the project in Slovakia as well as in Switzerland. So will project lead to strengthening of bilateral relations of both countries. 5. What innovative technologies/processes will be applied within the project implementation? By construction will be used innovative technologic procedures with aim to newly construct destroyed technical monuments in Zemplinske Hamre. It will be not common reconstruction but reconstruction/construction with using of specific materials and techniques. Innovative equipment: on 3 most frequently visited places in village will be installed multimedial information kiosks enabling interactive providing of tourist information.
10. Project readiness and Project Preparation Facility (PPF) 10.1 Project readiness planned under development ready
10.2 Assistance applied from the PPF for completion of the documentation YES NO 10.3 Grant requested from the PPF (EUR)
11. Sustainability of project’s results 1.Financial sustainability Municipality Zemplinske Hamre is financially stable applicant. Decrease of liquidity in years 2009 and 2010 related with the world economic crisis which reflect to decrease of incomes from the state budget as well as from the entrepreneurs. The municipality should finance the higher costs of delegated competences (basic education etc.) from its own resources. With aim to finish the construction of Sport-Recreational Area Barnova rika it financed this investment from credit in amount of 99 582 €. At present it still pays off this credit. Part of strategic investments planned for realisation this year will be co-financed from the EU funds (revitalisation of square, pavements, roads, bridges, illumination). In spite of this fact is the grant the only way how to realise project in such extent, because it is very expensive. In case of approval the submitted project can be guaranteed the financial sustainability of project outputs after project conclusion (municipal museum, tourist information centre). The negative cash flow in the first years of running will be covered from the other incomes of the municipality. The cumulative cash flow shows the positive balance every year. The IRR of the project is 3,19 %. More details are listed in the financial analysis – Annex 7B . It can be really supposed that realisation of the project will lead to significant economic development of the village as well as Snina region with affect to a development of small and medium enterprises.
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2. Institutional sustainability All project outputs remain the ownership of Municipality Zemplinske Hamre which represents stable institution gradually improving its activities and services for citizens and tourist too. Municipality is owner and keeper of Sport-Recreational Area Barnova rika where employs 6 people. The establishment of 2 new institutions – municipal museum and tourist information centre creates directly 2 new jobs (curator, informer/guide). By the increase of visit-rate we can really suppose creation of other jobs in close future. The municipality Zemplinske Hamre will be responsible for the management of new established tourism facilities. The employees of museum and TIC will be responsible for the running of infrastructure created in the frame of the project. The qualified personnel is one of the needful assumptions for achievement of the institutional sustainability. Supposed increase of jobs in area of tourism means that the municipality should ensure a complex education programme helping transformation of municipal tourism facilities on modern and customer-oriented organisations providing quality services. In this activity will the municipality Zemplinske Hamre cooperate with Zemplinske Museum Michalovce which ensures the specific professional education in area of museum management/curatorship. The proposal of measures for ensuring of sufficient qualification of personnel is listed in Annex 17.C . 2 a) Development and The submitted project creates the assumptions for building and development of maintenance of the partnerships in tourism area, in particular: partnerships and cooperation cooperation of project partners Fénix Snina , Slovak Technical Museum Košice , in the micro-regional/local Zemplin Museum Michalovce and Pro Gonzenbergwerk Sargans (Switzerland) and the regional context on development of tourism action plan and preparation of quality and attractive annual museum programe with variable side events of Educational trail in Zemplinske Hamre cooperation with Fénix Snina and other active tourism subjects with aim to development and acceptance the common marketing strategy and development of complex tourist offer in frame of the Ecomuseum „Forms of fire“ , primarily with all tourism subjects in the village and the Municipality Snina, East Carpathian Tourism Association Snina, Animotherapeutic – equestrian centre Snina, Municipality Kolonica, Astronomy Observatory Kolonica, Agrotourist facility Village Farm Kolonica and Municipality Stak čín . cooperation with Fénix Snina and other partners ( Municipality Snina , Vihorlat Museum Humenne, Municipality Uzhgorod – Ukraine ) on the second phase of the project – International cycloroute „Discovering the Ways of Hercules“ connecting Zemplinske Hamre with Snina, Humenne and Uzhgorod. The municipality is a member of several associations. The most important for the submitted project is the membership in Slovak Iron Trail Association (since June 2011) established with the aim to increase the awareness of protecting technical and cultural - historic heritage, to enable and save objects – witnesses of history or unique technical objects, to increase the interest in sightseeing tourism primarily in the regions affected by decay of mining and industrial production. The Slovak Iron Trail Association is the member of European Iron Trail in Central Europe – Association (Mitteleuropäische Eisenstrasse MEES) – one of the cultural routes registered by the European Institute of the Cultural Routes with its headquarters in Luxembourg (body of the Council of Europe). The membership in the Slovak Iron Trail Association presents for the municipality the possibility of planning the other project phases –development of the tercial sector, enhancement of narrow-gauge railway’s trail and its running and other activities which are subject of common planning with project partners in the frame of the project. 3. Sustainability at the level The realisation of the project is in compliance with objectives of the National Strategy of of policies and strategies Sustainable Development of the Slovak Republic and Economic and social development plan of Prešov Self-Governing region 2008 – 2015 in area of tourism. It is also in compliance with the Economic and social development programme of Zemplinske Hamre 2004 – 2014 and the Land Use Plan of Zemplinske Hamre . Within project implementation we suppose the legal procedures relating to public procurement in accordance with valid Slovak legislation (Act No. 26/2006 Coll. on Public Procurement) also final building approval in accordance with valid Slovak legislation (Act No. 50/1976 Coll. on Territorial Planning and the Building Code).
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3 a) Project’s multiplier effect Realisation of project creates necessary conditions for: and potential for a lead 1) realisation of planned project „ Ecomuseum – Forms of fire “ (in cooperation with project Fenix Snina and other subjects) focused on establishment of live „open air museum“ representing former economic activity in the village 2) realisation of planned international cycloroute „ Discovering the Ways of Hercules“ (in cooperation with Fenix Snina and other subjects) which should connect Zemplinske Hamre with places where are placed the statues made in Zemplinske Hamre in 1841-1842 (2 known statues of Hercules in Snina and Uzhgorod and 2 statues of lions in Humenne) 3) enhancement of the Slovak iron trail and related preparation activities for realisation of other project phase focused on completion and improvement of tourist services 4) an increase of small and medium enterprises offering tourist services suitably completed this project (accommodation and catering services, production and sale of traditional souvenirs, craft development) what finally helps to improve social- economic situations in village as well as Snina region.
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12. Signature and declaration I, the undersigned Ing. Jozef Gajdoš, declare being the person authorized to sign this Application form. I certify that: • The information given in this Application and its Annexes is correct and exact; • All attached copies of the Application including the Annexes and the electronic version are identical with the original Application and the Annexes; • English and Slovak versions of the Application and the Annexes 1 to 8 are content wise identical; • For the submitted Project no Grant has been provided from other national, international programmes or EU funds up to the date when the Grant Application is submitted; • For the submitted Project no Grant has been requested from other national, international or EU funds. Place: Zemplinske Hamre Date: 15.08.2011 Signature of the statutory body:
13. List of Annexes to the Grant Application No. Name of the Annex: Project Outline/Final Project Proposal 1. Project implementation and expenses schedule 2. Budget breakdown with detailed comment 3. Description of the Project implementation 4. Log frame 5. Partner description 6. Grant application within the Project Preparation Facility 7. Project financial analysis 8. Tender dossiers 9. Abstract from the respective organization register 10. Statutes or Articles of Association 11. Statement of finances 12. Annual report 13. VAT payer registration certificate from the competent tax authority 14. Extract from the Penal Register of all members of the statutory body of the
Applicant *15. Confirmation from the Social insurance, health insurances and respective tax
authority certifying that there are no due liabilities towards these institutions *16. Declaration that the applicant has access to financial sources for the implementation of the investment project above the limit of the grant (e.g. Decree of the local council, general assembly, board of directors, bank loan standby for the proposed project) *17. Other documents
* The Applicant submits the relevant Annexes in compliance with the Instructions to the Applicant
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Annex 3: Indicative disbursement plan
Name of Project: Zemplinske Hamre – Discovering history of mining and iron smelting in Vihorlat mountains
Implementation Start: 02/2012
Months of Other documents submitted to Disbursement Disbursement Amount in implementation Switzerland related to No. month CHF* covered Disbursement 1 0 – 5 12/2012 2 400 PIR 2 6 – 9 04/2013 115 600 PIR 3 10 – 13 08/2013 119 200 PIR, PAR 4 14 – 17 12/2013 266 700 PIR 5 18 - 21 04/2014 158 700 PIR 6 22 – 25 08/2014 384 700 PIR, PAR 7 26 - 27 01/2016 60 000 PIR, PCR, FAR Total: 1 107 300 * Does not include the aliquot part of the Reserve which should be financed from the Grant in line with the conditions specified in the Project Agreement and upon a prior agreement of the contracting parties
FAR Financial Audit Report PAR Project Annual Report PCR Project Completion Report PIR Project Interim Report