COSME Programme Call for Proposals

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EUROPEAN COMMISSION

EXECUTIVE AGENCY FOR SMALL AND MEDIUM-SIZED ENTERPRISES (EASME) Department A COSME, H2020 SME & EMFF

COSME

COSME Programme

Call for Proposals

Boosting the uptake of digitalisation, innovation

and new technologies in tourism through

transnational cooperation and capacity building

COS-TOURINN-2020-3-04

GRO/SME/20/C/07

[email protected]

Questions and Answers

Version 2

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HISTORY OF CHANGES Version Publication

Date Change Page

1 14.12.2020  Initial version

2 21.12.2020  New questions and answers added

- New Questions (and Answers) when compared to previous versions are highlighted in yellow

9,10,14, 15

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A. GENERAL

A.1 What is the definition of tourism SME to be supported via financial support under this call for proposal?

Section 12.1f) Financial support to third parties defines tourism SMEs for the purpose of this call for proposals. Please refer to the text of the Call for the precise definition of an SME and of the categories of tourism industries concerned.

A.2 Will there be a webinar or information session on this call for proposals?

No.

A.3 Could you please specify where to find the application form with the different questions we need to answer?

Please refer to the templates for different parts of an application form under ‘Documents’ scrolling towards the bottom of the call’s EASME website or directly through the Proposal template itself.

A.4 Where can I find terms of reference of this COSME call?

Please consult the document Call for proposals.

A.5 Would it be possible to get further explanation as to what is required from public authorities in this Call? Are there any guidelines related to the specific role they are supposed to play?

Public authorities as specified in Section 6.1 of the Call are indeed eligible for participation as applicants. The consortium should effectively include a minimum one (1) but not more than two (2) public authorities and bodies (Section 6.2). In the context of your question, your attention is drawn particularly but not exclusively to the objectives, themes, activities and outputs as elaborated upon in Section 2 of the Call. An example of a possible output, as elaborated in this section, is: enhanced transnational cooperation of public and private stakeholders (including SMEs) on innovation, digitalisation and smart tourism as well as the use of new technologies. The Policy Context and Financial Provisions as elaborated upon respectively in Sections 1 and 12 are also of relevance.

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A.6 Nous vous contactons dans le cadre du programme COSME afin de voir s'il est possible d'obtenir un financement. Merci de nous indiquer les formalités pour déposer notre dossier.

Nous vous prions de suivre le lien suivant pour toute information concernant la

soumission électronique de documents. D`autre information sur l`appel est disponible ici aussi.

A.7 At the end of the programme should all participant SME’s realize a final Project as an innovation example in their job? Or only the institution who will apply as a coordinator in the program should create a digital ecosystem for them and is that enough only for applying this?

Kindly refer to the Call specifications especially but not exclusively to Sections 8 and 12, besides the objectives, themes, activities and outputs as elaborated upon in Section 2 of the Call. Section 2.3 for instance indicates that grant applicants must form transnational consortia, acting as a network of public and private stakeholders which may include business incubators, accelerators and business support organisations providing business support to SMEs and start-ups cooperating with providers of travel technologies, data processing and similar services, digital solutions, research and education institutes, professional associations. The consortium will act as an intermediary organising specific activities for tourism SMEs in different COSME countries. The consortium will organise and provide direct support to companies to build their capacities to develop and implement new, innovative approaches services and operations with the help of digital technologies.

A.8 We have a project idea, named XXXXXX. We however have no possibility to be a lead partner, how could we find other partners?

A Partner Search is available on the Call page, feel free to contact other partners accordingly. You may also wish to note that the Enterprise Europe Network closest to your place of work might help you find partners to form a consortium accordingly: https://een.ec.europa.eu/about/about

A.9 We are preparing a proposal and have a question regarding publicity of complementary funding. We are looking for complementary funding to cover the 25% that is not covered by EASME (mainly the part related to the SMEs funding). We anticipate that we can get the funds, most probably by a public body. We therefore would like to know if there is any restriction for publicity and communication of this public body within the project (if it is awarded), taking into account that this organization will not be a consortium member (they are just interested in contributing to the 25% not covered by the program).

As elaborated upon in Section 12.1(c) of the Call, co-financing may indeed take the form, amongst others, of financial contributions from third parties. Should the

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application be successful, the consortium will have obligations to primarily clearly acknowledge co-funding by the EU, but acknowledgement of sponsorship by third parties is in principle also acceptable unless it is counterproductive to the implementation and visibility of the project.

Adverse publicity through the involvement of a public authority is usually not the case, but in parallel the consortium should always ensure that the provisions included in this Call are fully respected. It would also be appropriate that you elaborate in the proposal on the role of this third party (ex. involved in project and/or management tasks? sponsor in one market only, or in all countries providing SME support?), and possibly include a letter of intent too (you can scan it along the other documents).

It is recommended that you also familiarise yourself with the content of Section 12.2 of the Call (on Funding Forms) and that you thereafter discuss in further detail with EASME, should the application be successful.

A.10 In the description, a couple of templates are mentioned (all in PDF format). Are these templates also available in WS-Word or GoogleDoc formats?

You can find the PDF templates and the call document here

Editable documents are available for downloading when starting the submission.

A.11 Does the consortium have to be created by the project partners before submitting the proposal? Or is it sufficient for the partners to sign a letter committing to create a consortium between them if their proposal will be accepted?

All consortium members need to be identified at application stage, and the required details – including the description of the action and the budget breakdown - need to be included prior to submission. The coordinator will also be requested to sign some declarations on behalf of the consortium, through the submission tool. A consortium agreement should also be signed between consortium partners, but this is necessary only if the application is successful.

A.12 Should the application be submitted to the other consortium members, and if so where can an applicant connect with the consortium?

The onus is on the coordinator to ensure that the actual project benefits from the agreement of the other consortium members. The coordinator will also be requested to sign some declarations on behalf of the consortium, through the submission tool. Consortium members and interested parties can however also familiarise themselves with the Call specifications and submission documents through the Proposal template and within the ‘Documents’ section. You can also find a partners search function through the Funding & Tender Opportunities Portal, to contact additional partners, should you so wish.

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B. ADMISSIBILITY REQUIREMENTS, ELIGIBILITY, EXCLUSION AND SELECTION CRITERIA

B.1 Can we submit a proposal for this call if we have submitted a proposal for another call funded by the COSME programme?

Yes, it is possible for the same organisation to be partner in more than one call under the COSME programme.

B.2 May one legal entity participate (be partner) in more than one proposal under this call for proposals?

Yes, provided that, for instance, the operational capacity requirements (Section 8.2) are met.

B.3 We are wondering which partner to appoint as lead partner (coordinating organisation). Are there any specific requirements for the lead partner (coordinating organisation) in difference to a (simple) partner?

There are no specific eligibility requirements for the lead partner (coordinating organisation).

Please refer also to section 8.2 Operational Capacity on requirements regarding the team primarily responsible for managing and implementing proposed action. This team must include a project manager/coordinator, with the profile as set in Section 8.2 (c), who must be directly linked to the lead partner (coordinating organisation) of the project.

B.4 In what language shall we submit the proposal?

Section 5 of the Call indicates that applications must be drafted in one of the EU official languages. The applicant may include a translation of important supporting documents (such as Technical Annex 1 – Section A: Project Summary) in English. If the application is successful, English will be used as the working language in the Grant Agreement preparation and project implementation phase.

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B.5 Where can I find the declaration on honour on exclusion criteria? Section 7.4 states: Applicants and affiliated entities must all provide a declaration on their honour certifying that they are not in one of the situations referred to in Articles 136(1) and 141 of the EU Financial Regulation (FR), by filling in the relevant form attached to the application form accompanying this call for proposals.

There is no template of declaration on honour as such in the application stage. The online submission form requires the applicant to tick relevant fields in order to confirm that the applicants are not in any situation of exclusion and that they meet the eligibility and selection criteria. Such declaration is made by the coordinator on behalf of all the partners involved in the consortium.

B.6 Is it permitted for a partner in a project to be a subcontractor to another partner?

Subcontracting, amongst others, requires the respect of public procurement procedures and the absence of conflict of interest. In this regard, please refer to Section 12.1e) of the Call for proposals and to Articles 10 and 20 of the Model Grant Agreement for additional guidance accordingly.

B.7 Are restaurants eligible as tourism SMEs in the current call? Restaurants are among the highest resource-consuming SMEs within the tourism sector and part of a very wide value chain.

For the purposes of this Call, tourism SMEs supported must fall under the selected categories of tourism industries as indicated specifically in Section 12.1f).

B.8 I am looking to launch an innovative hostel in the EU and am looking for funding help. Am I eligible for this call for proposals?

Please note that the Executive Agency services cannot, for reasons of equal treatment, neither assess proposals at this stage nor help to draft proposals. Assessing the proposal – including its eligibility - is the exclusive competence of an appointed evaluation committee.

In the context of your question, if you mean your eligibility as applicant, please be guided particularly by the eligibility criteria for applicants that are set out in Section 6 of the Call, besides Sections 2, 8 and 16. Eligible applicants must be fully or partly public or private bodies; private bodies must be properly constituted and registered under national law.

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If you mean your involvement as third party (tourism SME) which is to be supported financially, please refer particularly to Section 12 of the Call. Applicants shall not specifically identify these SMEs at application stage as their selection will be done during the co-financing period. The tourism SMEs will be selected by beneficiaries (successful applicants of this call for proposals) via a call for applications.

B.9 Is an education programme in 5 countries including Turkey eligible and can this be selected as a project aiming to reinforce tourism SMEs?

Eligibility criteria are elaborated upon in Section 6 of the Call, which also includes the countries that are eligible for participation in COSME (Footnote 20). Please also note that the Executive Agency services cannot, for reasons of equal treatment, neither assess proposals at this stage nor help to draft proposals. Assessing the proposal – including its eligibility - is the exclusive competence of an appointed evaluation committee. In the context of your question, you are moreover requested to kindly refer to the Call specifications especially but not exclusively to the objectives, themes, activities and outputs as elaborated upon in Section 2 of the Call.

B.10 Which kind of innovation activities in tourism can be acceptable for the call?

As indicated in Section 2.3 of the Call, proposed projects may, amongst others, aim at improving SMEs uptake and use of digital and smart technologies, such as making better use of data, innovative tools based on artificial intelligence, blockchain, Internet of Things (IoT), communications systems, etc., including in partnership with other relevant private or public actors. Their overall purpose shall be the improved competitiveness of tourism SMEs, by offering more customised, efficient and effective tourism products, improving the quality of services, etc. These examples are non-exhaustive and proposals may have different focus and objectives, as long as they are in line with EU policies and the objectives of the present call for proposals.

B.11 Could you tell me if a French association with 90% public funding is considered an association or a public body?

In the context of your question, please be guided particularly by the eligibility criteria for applicants that are set out in Section 6 of the Call, besides Sections 2, 8 and 16. Eligible applicants must be fully or partly public or private bodies; private bodies must be properly constituted and registered under national law.

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B.12 I would like to ask if eligible organizations from EU Member States and COSME countries could also involve and support SMEs from other countries such as the EU Overseas Countries and Territories and CARIFORUM countries.

Footnote 20 in the Call elaborates on the countries that are eligible for participation in COSME, according to the COSME Regulation. It also follows from Council Decision 2001/822/EC (2) that entities and bodies of the overseas countries and territories are eligible to participate in the COSME programme. CARIFORUM countries are not mentioned in the Regulation.

B.13 Is UK an eligible country?

Eligibility criteria are elaborated upon in Section 6 of the Call, which also includes section 6.3 for British applicant and the countries that are eligible for participation in COSME (Footnote 20)

B.14 Is Switzerland an eligible country?

Eligibility criteria are elaborated upon in Section 6 of the Call, which also includes the countries that are eligible for participation in COSME (Footnote 20)

Switzerland cannot participate as there is currently no legal basis under which it could do so.

B.15 Are restaurants and Food and beverage related companies eligible as SMEs to be supported?

For the purpose of this call for proposals, tourism SMEs supported must fall under the categories of tourism industries stated in section 12.1 f)

B.16 Are leisure activities (e.g.: trekking services, water sports activities, etc.) companies eligible as SMES to be supported?

For the purpose of this call for proposals, tourism SMEs supported must fall under the categories of tourism industries stated in section 12.1 f)

B.17 We are a "Ente Fiera” (Fair Organization) according to Italian law and more precisely a SRL – Società a Responsabilità Limitata. About 71% of the shares of the SRL are owned by public bodies (Region, Provinces, Municipalities, etc.). Can we be considered public body?

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In the context of your question, please be guided particularly by the eligibility criteria for applicants that are set out in Section 6 of the Call, besides Sections 2, 8 and 16. Eligible applicants must be fully or partly public or private bodies; private bodies must be properly constituted and registered under national law

B.18 We would like to know if an University or an incubator are (totally or partially) own by public entities, for the purpose of the call, are considered as a public body.

In the context of your question, please be guided particularly by the eligibility criteria for applicants that are set out in Section 6 of the Call, besides Sections 2, 8 and 16. Eligible applicants must be fully or partly public or private bodies; private bodies must be properly constituted and registered under national law.

B.19 The organisation I am working for is an association of 130+ Universities from 23 countries. We are registered as a non-profit organisation in Italy but we are acting as an international organisation. As we are evaluating to participate in one of your calls for project I wonder if there is an official definition I can refer to for :

1) non-profit organisations (private or public) 2) international organisations

B.20 I would like to ask a clarification regarding the call requirement to involve “minimum one (1) but not more than two (2) public authorities and bodies”.

Would you please specify what is meant by the programme under the definition of “Public bodies” and provide some examples the kind of public bodies that could be included under this definition?

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C. FINANCIAL PROVISIONS

C.1 Could you confirm that the EUR 1 000 000 threshold refers to the EU contribution and, therefore, a total budget could exceed such amount?

As indicated in Section 4 of the Call, EUR 1 000 000 is the maximum EU grant per project. Total eligible costs need to be higher, given that the grant is limited to a maximum reimbursement rate of 75% of eligible costs.

C.2 If the project product is sold and generates income during the project period, is the overall funding amount for the project diminished in proportion to the profit made from the products?

Please refer to Section 12.2 of the Call specifications, specifically: ‘EU grants may not have the purpose or effect of producing a profit within the framework of the action. Profit shall be defined as a surplus, calculated at the payment of the balance, of receipts over the eligible costs of the action, where receipts are limited to the Union grant and the revenue generated by that action. In this respect, where a profit is made, the Agency shall be entitled to recover the percentage of the profit corresponding to the Union contribution to the eligible costs actually incurred by the beneficiary to carry out the action’.

C.3 According to Section 12.2 Funding forms, applicants are expected to include in their proposals the financial support to third parties (tourism SMEs) of maximum EUR 600 000. In practice, at which co-financing rate will the EU reimburse this financial support during the implementation of the action?

The financial support to third parties (tourism SMEs) has a specific category under eligible costs. It comes under the category ‘C. Direct costs of providing financial support to third parties’. The EU contribution (co-financing rate) to eligible costs incurred by the consortium and to financial support to third parties is maximum 75%; consequently, part of the financial support to third parties must be financed from sources other than the EU grant (see also, for instance, Section 12.1c).

C.4 I would like to know if the support to the third parties cannot exceed 600 000 euros, and if this means that there is 400 000 euros for the consortium?

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As specified in Sections 4 and 12.2 of the Call, the maximum grant per project will be EUR 1 000 000 and the maximum amount of financial support to be granted in total to the third parties (tourism SMEs) cannot exceed EUR 600 000.

C.5 Could the 25% own funding for the support to third parties (tourism SMEs) come from the tourism SMEs themselves? Could the project consortium reimburse tourism SMEs up to 75% of their eligible costs and the tourism SME itself contribute the remaining 25% to comply with the co-financing requirement?

EASME will sign grant agreements in the framework of this Call with the consortium, not with the tourism SMEs. The onus is on the consortium to find the remaining 25% and in this regard, Section 12.1c) of the Call provides guidance on co-financing accordingly. Please note that co-financing may take the form of:

 the beneficiary's own resources;  income generated by the action;

 financial contributions from third parties.

As for financial support to the tourism SMEs, the grant reimburses up to 75% of the support allocated by the consortium to third parties (the tourism SMEs in this case) and the consortium is free to choose the form of such support, and how the amount is allocated (refer also to Section 12.2).

Please be aware that in order for costs to be considered eligible, such costs must be incurred by the beneficiary. At the moment of cost declaration related to the financial support provided to third parties under this grant agreement, the consortium will thereafter declare to EASME such costs and out of this amount, the grant reimburses up to 75%.

Refer also to Question C.10 for additional information.

C.6 I have a question about the funding form. In the Call text there is the maximum grant of EUR 1 000 000 with a 75%-reimbursement rate. Does this mean that a proposal will receive a maximum of EUR 750 000 from the COSME programme with the remaining EUR 250 000 to be covered by the partnership? Or will the COSME programme cover EUR 1 000 000 with EUR 250 000 to be covered by the partnership with a total amount of EUR 1 250 000?

Please refer to Question C.1. The maximum grant per project from the COSME programme will be EUR 1 000 000, which is equal to the maximum reimbursement rate of 75% of total eligible costs.

If the total amount of eligible costs is EUR 1 000 000, the COSME will cover EUR 750 000 and the consortium shall co-finance the remaining EUR 250 000. If the total amount of eligible costs is EUR 1 250 000, the COSME programme will finance maximum EUR 937 500 (equal to 75 % of EUR 1 250 000) as 937 500 euros is lower than the maximum grant amount (EUR 1 000 000).

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C.7 Could you please confirm that the financial support per individual third party cannot exceed ten thousand euros (EUR 10 000) as set in the call (and not taking into account the Model Grant agreement 11a.1 a – EUR 6 600)?

The financial support per individual third party cannot exceed EUR 10 000 as set in Section 12.2 of the Call. The Model Grant Agreement allows this to achieve the objectives of the action.

C.8 Is it possible to support the beneficiaries SMEs in the form of in-kind

services instead of transfering money? e.g. namely, delivering technical support and advisory services by the consortium members and also subcontracting when needed?

Please be aware that the in-kind contribution proposed cannot be considered as a financial support. Moreover, please note that Section 12.2 of the Call stipulates that in-kind contributions provided by third parties are considered as ineligible costs. As regards sub-contracting, please refer to Section 12.1e) of the Call for proposals and to Articles 10 and 20 of the Model Grant Agreement for additional guidance accordingly.

C.9 Can you please indicate what percentage (%) of total budget can be used for the direct personnel costs and how much can be used for buying equipment, infrastructure or other assets?

The onus is on the applicants to provide an appropriate budgetary mix according to the Call requirements and as provided through the different headings indicated within Technical Annex II – the Budget Template. Your attention is also drawn in particular to the Award Criteria – Section 9 of the Call.

C.10 -We are preparing a proposal and we have a question about the financing to third parties. We understand that the maximum budget for third parties is 600.000€ and that 75% of this will be covered from the funding from the EU, but we have a query about the remaining 25%, 150.000€. Does each SME have to contribute their 25% of the difference or does the project consortium have to cover this 25% with their own budget not financed by the EU?

The grant reimburses up to 75 % of the eligible costs incurred by the consortium and up to 75 % of the support allocated by the consortium to third parties. The remaining part (25%) could be covered by the beneficiaries’ own contribution, by income generated by the action or from financial contributions from third parties. As regards the reimbursement rate mechanism, please also refer to C.6 above.

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Concerning the SME context, the activities organised by the project consortium within this action must be free of participation/registration fees for the tourism SMEs participating in the project. Participating SMEs should therefore not be requested to become sponsors/contribute financially. This is against the call provisions since the purpose of the financial support to third parties (tourism SMEs) shall serve to cover costs of their participation in the project activities and to build their capacity to uptake solutions. This would also go against the spirit of the Guidelines for Awarding Financial Support to Third Parties (Tourism SMEs) that are included as one of the Call Annexes.

Refer also to Question C.5 for additional information.

C.11 What is the financing rate for financial support for SMEs ?

The financial support to third parties requirements are elaborated upon under Section 12.2 in the Call for Proposal document. Refer however to other parts of the Call too, including Section 2.

C.12 Could you please clarify if the mandatory provision of direct financial support to selected tourism SMEs (Objectives 2.1.iii) is limited only to activities that qualify as to cover costs of their participation in the project activities and to build their capacity to uptake solutions as mentioned in Financial Provisions 12.1.f.

In other words, is the direct financial support exhausted in the types of activities (mentioned in Objectives 2.1.ii and 2.1.iii) to perform that qualify for giving financial support to selected tourism SMEs?

Financial support to third parties needs to form an essential and integral part of the proposal. The onus is thereafter on the applicants to relate the financial support to the other provisions of the Call. In this regard, particular attention should be given to Sections 2 and 12, amongst others.

For the purpose of this call for proposals, tourism SMEs supported must be in line with selected Eurostat classes as elaborated upon in Section 12.1(f).

C.13 We would like to know if the reference of to “a minimum 60 tourism SMEs that should participate in the support scheme” design by the project, means that all the SMES participating in the scheme should receive the designated financial support or if SMEs participating in the scheme are considered both the ones receiving funds and the also the ones receiving training or mentoring or any other type of support.

Please refer to Question C.5. For financial support to the tourism SMEs, the grant reimburses up to 75% of the support allocated by the consortium to third parties (the

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tourism SMEs in this case) and the consortium is free to choose the form of such support, and how the amount is allocated (refer also to Section 12.2)

C.14 The maximum grant per project is equal to Eur 1.000.000. The third parties financial support is to be calculated within this maximum grant project or the program will fund the 75 % of total eligible costs equal to Eur 1.000.000 and the 75 % of EUR 600. 000?

Please refer to Question C.1 and C.6. The maximum grant per project from the COSME programme will be EUR 1 000 000, which is equal to the maximum reimbursement rate of 75% of total eligible costs.

C.15 Is there a minimum total amount of financial support to be granted in total to the third parties (tourism SMEs)?

Financial support to third parties requirements are elaborated upon under Section 12.2 in the Call for Proposal document.

The Call text does not define minimum amount of this financial support to third parties.

C.16 Regarding the financial support directly allocated to a tourism SME (maximum 10.000€). I understand it covers their Travel, registration and accommodation cost, and Digital innovation and smart tourism investments. The question is, can a member/partners of the consortia invoice the SME for these services (training, advisory services and ad-hoc reports) to be paid with this funding allocation (maximum 10.000€)? In other words, are services provided by a member of the consortium eligible as activities included in the financial support of SMEs?

Please refer to Question C.5. For financial support to the tourism SMEs, the grant reimburses up to 75% of the support allocated by the consortium to third parties (the tourism SMEs in this case) and the consortium is free to choose the form of such support, and how the amount is allocated (refer also to Section 12.2)

Concerning the SME context, please refer to Question C.10. The activities organised by the project consortium within this action must be free of participation/registration fees for the tourism SMEs participating in the project. Participating SMEs should therefore not be requested to become sponsors/contribute financially