A Success Story: Implementing Support for Young Farmers Under Measure 6.1.1

Lecor olive oil
EU Funds
Loans
04/09/2022
JOHN MATHEW

Lecor d.o.o. from Benkovac is a long-standing client of Zobnica d.o.o. Located in the village of Lepuri, Lecor d.o.o. manages a 17-hectare estate featuring an olive grove with over 4,000 olive trees, as well as a state-of-the-art olive processing plant with a capacity of 1,000 kg/h.

Our cooperation with Lecor d.o.o. began back in 2017 with the planning of several projects, all aimed at raising business quality, diversifying activities, and consolidating their offer.

To date, we have achieved the following results:

  • Realized investment under Measure 6.1.1 “Support for young farmers” in the amount of HRK 473,000, of which HRK 370,000 was awarded as non-repayable grants.

  • Ongoing implementation of an investment under Measure 4.2.1 “Increasing value added to agricultural products” – facilities for oil production. The total investment amount is HRK 2,139,573.96, with approved grants amounting to HRK 974,993.72.

  • Ongoing implementation of an investment under Measure 6.2.1 “Support for investment in the creation of non-agricultural activities in rural areas” – launching an olive oil tasting room. The total investment amount is HRK 693,262.00, with approved grants amounting to HRK 370,000.00.

  • Secured credit financing from a commercial bank in the amount of HRK 3,800,000.00.

We hope this is just a fraction of the projects completed for our dear clients, and we look forward to future business ventures.

Yours, Zobnica

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Person writing in notebook
EU Funds
4 Mar , 2024

A Guide for Farmers

Whether you’ve just started or have been planning to apply for a non-reimbursable EU grant for some time, I believe you have various questions and dilemmas and are looking for answers.

This manual is the ideal starting point for your search for answers, and it was created after numerous conversations and meetings with farmers who have never applied for or implemented projects co-financed by EU funds.

The manual stems from the need to familiarize users with the fundamental prerequisites/concepts related to agricultural holdings viewed from the aspect of applying for non-reimbursable EU tenders.

The good news that I must emphasize right here is that with the purchase of this manual, you also receive half an hour of telephone consultations during which I will give you answers to your questions related to the content of the manual, as well as free advertising of your products and services on our portal Ethno Dalmacija. Our cooperation doesn’t have to end here; on the contrary, we dare to say that this is just the beginning, and you can see what else we can do for you and how we can help you on our website, where you can choose something for yourself. The price of the guide in PDF format is 70.00 Euros, which you can pay using this payment slip and confirm to us by email: info@zobnica.hr. Once we receive the payment, we will send you the guide by email and arrange a time for telephone consultations!

Take a look at the guide DownloadPay and send an email to info@zobnica.hrDownload

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Person writing in notebook
Implementation
17 Jul , 2023

Procurement within the scope of projects financed by EU funds

Public procurement holds a significant place in ensuring the most efficient expenditure of public funds. Within the framework of EU tenders, grants are allocated to entrepreneurs, representing a vital incentive for the realization of projects that contribute to their further development and market competitiveness. Entrepreneurs who have applied their projects for certain tenders and have received a funding decision for them, must also take into account procurement for the activities foreseen by the project in the later implementation phase for successful realization and achievement of project goals. Allocated grants may also be subject to repayment if certain irregularities are found during the procurement procedure itself. Financial corrections are applied if the allocated funds were not used for the purposes for which they were intended. The conduct of procurement procedures is not reserved only for obligors of the application of the Public Procurement Act. Legal entities and sole proprietorships that are not obligors of the Public Procurement Act (NOJN) must carry out procurement while respecting certain rules.
Person writing in notebook
Why do I have to conduct a procurement procedure even though I am not a legal obligor? The fundamental principles of public procurement are key to “introducing order” within the framework of market competition among entrepreneurs. The main principles, on the one hand, limit entrepreneurs (in this case, contracting authorities) who are prevented from favoring certain entities to contract jobs (e.g., rigging jobs for family members, acquaintances, and the like), while on the other hand, they organize the market, which enables equal treatment for all entities – potential bidders, according to which they can equally participate in procedures for obtaining and executing work. What is the main framework for conducting procurement for non-obligors of public procurement (NOJN)? According to the Public Procurement Act, basic principles that obligors must respect are defined to prevent illegal actions that would impede fair competition of economic operators in the market. Just like obligors of the application of the Public Procurement Act, non-obligors of the application of the Act must also respect certain principles. NOJNs must adhere to the following principles when conducting the procurement procedure:
  • Avoiding conflicts of interest
  • Principle of proportionality
  • Principle of equal treatment
  • Principle of non-discrimination
  • Principle of rational and economic spending of funds
What are the steps in conducting the procurement procedure for NOJN?
  1. Preparation and publication of the call for tenders
  2. Defining capacity conditions, the subject of procurement, criteria for the selection of the bid, and deadlines for submitting bids
  3. Review and evaluation of received bids
What are the thresholds for applying the rules for non-obligors of the application of the Public Procurement Act?
  1. Procurement procedure with a single bidder For procurement of goods, works, and services with an estimated value up to HRK 150,000.00 – the contracting authority is not obliged to prepare a call for tenders, and in that case, there is no formal review and evaluation of bids conducted in the procurement procedure with mandatory publication.
  2. Procurement procedure with mandatory publication. For procurement of goods, works, and services with an estimated value exceeding HRK 150,000.00 – the contracting authority is obliged to publish the call for tenders on the website www.strukturnifondovi.hr, and in that case, they perform a formal review and evaluation of the received bids.
  3. Special procurement procedures – conducting the procurement procedure by sending or publishing a call for tenders to one or more bidders regardless of the estimated value of the procurement, possible only in exceptional cases.
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What if I do not conduct procurement in accordance with the defined rules that apply to persons who are not obligors of the Public Procurement Act? Properly conducted procurement ultimately ensures the proper implementation of the EU project. The consequence of errors in the procurement procedure, for the beneficiary of grants, can lead to the occurrence of financial corrections, i.e., the complete repayment of the allocated funds. In case of determining irregularities within the scope of project implementation, the competent authority resorts to financial corrections, which are a negative consequence for the project holder. Financial corrections imply the repayment of all or part of the funding paid to the beneficiary, depending on the severity of the determined irregularity. Some examples of applying financial corrections for NOJN
  • Failure to publish the call for tenders
  • Artificial division of contracts to avoid publishing the call for tenders
  • Unjustified use of a special procurement procedure
  • Shortening deadlines
  • Discriminatory technical specifications
What should I pay attention to when conducting procurement procedures?
  • The thresholds for conducting the procedure
  • Grouping of the subject of procurement to avoid the annulment of the procurement procedure
  • Clearly defining the technical specifications of the subject of procurement
  • Clearly defining the capacity conditions of the bidder for the execution of the contract subject
  • Paying attention to deadlines
If you are one of the potential applicants for individual tenders under which you can finance your own projects partly from EU grants, the assumption is that you will have to conduct a procurement procedure for the subject of procurement, which is published on the pages of Structural Funds (https://strukturnifondovi.hr/). Properly conducted procurement is the foundation for the successful implementation of project activities, therefore it is important to properly set up and implement all parts. The article was published on: Women in Adria
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