Programme Manual for the period 2014 to 2020 version 7.1, approved by the Monitoring Committee on 17 June 2020 Programme Manual of Interreg Baltic Sea Region, a Transnational European Territorial Cooperation Programme, for the period 2014 to 2020, part-financed by the European Regional Development Fund (ERDF). Published by the Programme ’s Managing Authority/Joint Secretariat, Rostock, Germany. The Managing Authority/Joint Secretariat is hosted by Investitionsbank Schleswig-Holstein (IB.SH). Electronic document, available for download at interreg-baltic.eu. Programme Manual | Contents Table of contents A Introduction ................................................................................................... 7 List of abbreviations ................................................................................................ 8 Glossary .................................................................................................................. 9 B General information about Interreg Baltic Sea Region................................... 13 B.1 General objectives ............................................................................................... 13 B.2 Programme priorities ........................................................................................... 13 B.2.1 Priority 1 ‘Capacity for innovation’ ............................................................. 14 B.2.2 Priority 2 ‘Efficient management of natural resources’ ............................. 14 B.2.3 Priority 3 ‘Sustainable transport’ ................................................................ 15 B.2.4 Priority 4 ‘Institutional capacity for macro-regional cooperation’ ............. 16 B.3 Types of projects .................................................................................................. 17 B.4 Legal framework .................................................................................................. 17 B.5 Programme area .................................................................................................. 19 B.6 Programme budget and co-financing .................................................................. 19 B.7 Horizontal principles ............................................................................................ 21 B.8 Integrated territorial approach ............................................................................ 23 B.8.1 Projects’ contribution to the EUSBSR and partner countries’ strategies ... 23 B.8.2 Projects’ contribution to cross-cutting issues............................................. 24 B.9 Programme implementation structure ............................................................... 24 B.10 Programme language ........................................................................................... 25 C Formal expectations towards project partners .............................................. 26 C.1 Eligible project partners ....................................................................................... 26 C.1.1 Geographical location ................................................................................. 26 C.1.2 Legal entities eligible as project partners ................................................... 26 C.1.3 Legal entities eligible as lead partners ........................................................ 29 C.1.4 Project partners outside the Programme area receiving ERDF .................. 29 C.1.5 Project partners outside the Programme area receiving ENI/Russian co- financing ...................................................................................................... 33 C.2 Lead partner principle.......................................................................................... 33 C.2.1 Main responsibilities of the lead partner ................................................... 33 C.2.2 Main responsibilities of the project partners ............................................. 36 interreg-baltic.eu 1 Programme Manual | Contents C.3 Financial capacity of project partners ................................................................. 37 C.4 Project and financial management ...................................................................... 37 C.4.1 General coordination .................................................................................. 37 C.4.2 Sustainability of projects on operational level ........................................... 38 D Project types and application procedures ..................................................... 41 D.1 Regular projects ................................................................................................... 41 D.1.1 Objectives, results and main activities of regular projects ......................... 41 D.1.2 Work plan .................................................................................................... 47 D.1.3 Outputs of regular projects ......................................................................... 48 D.1.4 Output indicators ........................................................................................ 51 D.1.5 Communication in projects ......................................................................... 54 D.1.6 Composition of regular project partnerships ............................................. 56 D.1.7 Duration of regular projects ....................................................................... 60 D.1.8 Application of regular projects ................................................................... 61 D.1.9 Assessment of applications ......................................................................... 64 D.1.10 Approval of applications ............................................................................. 67 D.2 Extension stage projects ...................................................................................... 68 D.2.1 Objectives and main activities of extension stage projects........................ 68 D.2.2 Outputs of extension stage projects ........................................................... 69 D.2.3 Composition of extension stage project partnership ................................. 70 D.2.4 Duration of extension stage projects .......................................................... 70 D.2.5 Budget and eligibility of costs ..................................................................... 71 D.2.6 Application, assessment and approval of extension stage projects ........... 71 D.3 Project platforms ................................................................................................. 72 D.3.1 Objectives and main activities of project platforms ................................... 72 D.3.2 Outputs of project platforms ...................................................................... 74 D.3.3 Composition of project platform partnership ............................................ 74 D.3.4 Duration of project platforms ..................................................................... 76 D.3.5 Budget and eligibility of costs ..................................................................... 76 D.3.6 State aid rules ............................................................................................. 76 D.3.7 Application, assessment and approval of project platforms ...................... 76 E Contracting of approved applications ........................................................... 78 E.1 Contracting phase ................................................................................................ 78 E.2 Clarification procedure ........................................................................................ 78 interreg-baltic.eu 2 Programme Manual | Contents E.3 Subsidy contract .................................................................................................. 79 F Project budget and eligibility rules................................................................ 80 F.1 Horizontal rules applicable to all budget lines and types of instruments ........... 80 F.1.1 Legal background and hierarchy of rules .................................................... 80 F.1.2 General principles of eligibility ................................................................... 80 F.1.3 Ineligible costs ............................................................................................. 82 F.1.4 Procurement procedures for EU and Norwegian partners ........................ 82 F.1.5 Specific procurement procedures for Russian partners ............................. 92 F.1.6 State aid rules ............................................................................................. 94 F.1.7 Use of Euro and exchange rate ................................................................. 102 F.1.8 Value added tax and other financial charges ........................................... 103 F.1.9 Cash inflows .............................................................................................. 103 F.1.10 Visibility rules ............................................................................................ 106 F.2 Overview on project phases and related costs ................................................. 109 F.3 Budget lines ....................................................................................................... 113 F.3.1 Budget line 1 – Staff costs ......................................................................... 113 F.3.2 Budget line 2 – Office and administration costs ....................................... 124 F.3.3 Budget line 3 – Travel