Annual Conference of Competitiveness Operational Programmes November 2013

Transcription

1 Annual Conference of Competitiveness Operational Programmes November 2013 Hungarian experiences Economic Development Operational Programme Tamás Karsai, head of EDOP MA

2 Content General progress and status of EDOP Priority axis 1 Accredited Innovation Clusters Status of ELI major project Priority axis 2 Priority axis 3 Priority axis 4 Combined products and venture capital Modification of the OP and the status of EDIOP 2

3 General progress and the current status of EDOP implementation Mind the doors, please! Peak in all work stages: the last surge of projects decision preparation the same is true in connection with contracting and contract modifications relating to project closures payment peak programme evaluation for the feedbacks of experiences The returning funds are needed to be compensated in advance now: Between 2007 and 2010 reference period the returning funds came out at more than 20% Overcommitment are needed to be done now because the project implementation period could last to mid 2015 (the risk of Hungarian state budget) JEREMIE vs. non-repayable support -different lifecycle Still important: Optimal balance between the secured commitment and acceleration of processes The harmony needs to be maintained between the stakeholders (MA, IB, financial intermediaries etc.) Enhanced monitoring, utilisation of overcommitment Feedback for the planning In case of JEREMIE programmes implementationis now in a take off stage, it requires more attention, new problems can emerge at the level of final beneficiaries 3

4 Economic Development Operational Programme on 30 October 2013, Priority axis 1-3. Number and budget of calls 95 pcs 3 122,9 M EUR (874,4 billion HUF) Framework Priority axis 1-3.: 2 530,5 million EUR Projects approved by MA pcs 2 895,8 M EUR (810,8 billion HUF) Projects contracted pcs 2 632,4 M EUR (737,1 billion HUF) Payments to beneficiaries M EUR (355 billion HUF) Closed projects pcs 1 076,8 M EUR (301,5 billion HUF) Exchange rate: 280 HUF/EUR The table based on the data of 30 October Source: SMIS 1.1 4

5 Annualprogressof Priorityaxis1-3.* % 100% 114% 104% 80% 80% 75% 60% 57% 40% 20% 5% 0% 0% 0% 43% 50% 53% 36% 38% 30% 36% 28% 19% 16% 10% 11% 2% 0% Effective support Effective contract Payment * Compared to the 7 years budget figures; Exchange rate: 280 HUF/EUR; The table based on the data of 30 October Source: SMIS 1.1 5

6 The tendency of EDOP request of funds is already enough to meet 2013 N+2/N+3 threshold value The requested fund increased by the advancement and top-up is equal to 1746,07 million EUR 68,67 million EUR drawdown is needed to meet the 1814,68 million EUR threshold value for 2013 million EUR N+2/3 threshold for 2013: 1 814,68 million EUR , ,81 0,05 44,73 311,03 320,89 189,01 211, Sept Total 6

7 Priority axis 1: current status and results Up to October 2013 more than 135 billion HUF was committed in the priority axis in the year The ELI major project was submitted to the Commission in May Based on the experiences gained in relation with the returned funds and in favour of the total absorption further overcommitments were made in the end of 2012 and in 2013: The priority axis budget was increased - by 10,98 billion HUF in December 2012; - the Action Plan s budget by 49,16 billion HUF in July 2013 All the calls for proposal were closed due to the commitment of the funds. The contracts in force come to 311 billion HUF (1111 million EUR) at the end of October. 7

8 Priority axis 1in figureson 30 October2013 Number and budget of calls 35 pcs 1 270,0 M EUR (355,6 billion HUF) Framework ( ): 990,7 million EUR Projects approved by MA pcs 1 173,3 M EUR (328,5 billion HUF) Projects contracted pcs 1 116,2 M EUR (312,5 billion HUF) Payments to beneficiaries 367,6 M EUR (102,9 billion HUF) Closed projects pcs 254,3 M EUR (71,2 billion HUF) Exchange rate: 280 HUF/EUR The table based on the data of 30 October Source: SMIS 1.1 8

9 Accredited Innovation Clusters in Hungary Accredited clusters Industry Number Informatics 8 Healthcare 5 Environment 2 Packaging/plastic 1 Construction/ Energy 2 Machinery/automo 2 tive Furniture 1 Total 21 The most of the 21 Accredited Innovation Clusters relates to regional centres The total number of cluster members: 763, SME: 662; Assistance allocated to AIC member companies in 1-3 priority axis 101 billion HUF(R+D: 80 billion HUF /273 million EUR/) The total number of employees at AIC member companies:

10 ELI project status 4/1 Milestones Hungarian Government commits to the realisation of the project Preparation project No. 2. Start of construction works Major project Phase II. implementation Start of full capacity operation Preparation project No. 1. Major project Phase I. implementation EU COM approval Start of partial operation to the major project Project budget Eligible costs of the preparation projects * HUF 290,4 = EUR 1 Gross EUR 10.3 million (HUF 2,993.7 million)* Eligible costs of major projects Phase I. and II. Net EUR million (HUF 61,298 million)* 10

11 ELI project status 4/2 Phasing of the ELI-ALPS project Major project Phase I. Start of partial operation Start of full capacity operation Major project Phase II Major project Phase I. ( ) Major project Phase II. ( ) Max. budget Source of financing Technical content Net EUR million (HUF billion*) EDOP Construction of buildings Completion of the major part of the infrastructure works Delivery of the major part of the laser equipment, start of partial operation Net EUR 83.7 million (HUF 24.3 billion*) EDIOP Completion of the rest of the infrastructure works Delivery of the test of the laser technology, start of full capacity operation * HUF 290,4 = EUR 1 11

12 ELI project status 4/3 Progress of public procurements Meeting with DG Research Construction: Start of procurement: 27/06/2013 Opening bids: 30/09/2013 Contract signing: 27/ Penalty payments are applicable in case of any delay in the construction. The duration of the trial operation is one of the two evaluation criteria besides the financial offer. Architect/Designer control Contract signing: 09/2013 Supervising engineers: Contract signing: 10/2013 Additional design: Contract signing: 10/2013 Design controller for additional design: Contract signing: Q D virtual controlling Contract signing: Q4/2014 Report on the ELI Delivery Consortium Discussion of plans concerning the allocation of beam time Progress of public procurements Recruitment at ELI-HU Nltd. Set up and operation of the Scientific Advisory Committee 12

13 ELI project status 4/4 ELI as part of the integrated regional development strategy Internationally competitive R&D infrastructures are set as one of the four strategic tools for strengthening knowledge centres in Hungary in the National R&D and Innovation Strategy of the Government (Investment in the Future 2020) ELI-ALPS plays a crucial role here. Following a schedule agreed with DG REGIO the Ministry for National Economy prepares a White Book on the Regional Smart Specialisation Strategies. This will be completed in October The White Book embeds ELI in the South-Great Plain Smart Specialisation Strategy. The 90 hectare area surrounding ELI is planned to host a science park attracting leadingedge companies and research centres. International level research in various areas carried out at the University of Szeged relate to the activities of ELI-ALPS. 13

14 Priority axis 2: current status and results Up to October 2013 more than 109 billion HUF was committed in the priority axis in the year Successful calls both commitments and contracting: EDOP-211/B, EDOP-211/M and EDOP-213 Based on the experiences gained in relation with the returned funds and in favour of the total absorption further overcommitment was made in 2013: The formerly allocated 180,6 billion HUF Action Plan budget for was increased by 67,4 billion HUF. The current Action Plan budget framework is 248 billion HUF for the priority axis 2. The priority axis 2 is one of the best performing programme in the EDOP. The sum of the contracted projects have reached the total value of the budget framework. 14

15 Priority axis 2in figureson 30 October2013 Number and budget of calls 46 pcs 1 584,5 M EUR (443,7 billion HUF) Framework ( ): 1 314,4 million EUR Projects approved by MA pcs 1 559,9 M EUR (436,8 billion HUF) Projects contracted pcs 1 382,5 M EUR (387,1 billion HUF) Payments to beneficiaries 837,8 M EUR (234,6 billion HUF) Closed projects pcs 763,1 M EUR (213,7 billion HUF) Exchange rate: 280 HUF/EUR The table based on the data of 30 October Source: SMIS

16 Priority axis 3: current status and results The previously suspended EDOP logistics call was reopened at the end of July 2013 More than 12 billion HUF (40,9 million EUR) request for assistance was submitted during two weeks therefore the MA suspended the call again Experiences on EDOP-3.5.1: - More emphasis on the investment oriented solutions according to the project proposals received - Lesser application was submitted for the calls targeting the integration of individuals with changed working capacity than expected The performance of the priority axis 3 is in line with the plans New call for proposals: EDOP

17 Priority axis 3in figureson 30 October2013 Number and Budget of calls 14 pcs 268,4 M EUR (75,2 billion HUF) Framework ( ): 225,5 million EUR Projects approved By MA 442 pcs 162,6 M EUR (45,5 billion HUF) Projects contracted 363 pcs 133,8 M EUR (37,5 billion HUF) Payments to beneficiaries 62,6 M EUR (17,5 billion HUF) Closed projects 101 pcs 59,3 M EUR (16,6 billion HUF) Exchange rate: 280 HUF/EUR The table based on the data of 30 October Source: SMIS

18 Payments for closed projects, Priority axis 1-3 million EUR 763,1 EDOP-1. R+D and innovation 700 EDOP-2. Enterprise development ,3 59,3 120,5 180,7 11,9 EDOP-3. Modern business environment Growing emphasis on the programme closure and on the maintenance of the development results. Payments of closed projects Payments of closed projects in 2013 Exchange rate: 280 HUF/EUR Chart based on the data of 30 October Source: SMIS

19 Regional distribution of the contracted amount per enterprise, Priority axis 1-3 Source: AIR

20 Regional distribution of the supported projects, Priority axis 1-3, October2013 Key factors: urbanisation, existing infrastructure (ST lags behind); knowledge base relatedtouniversities (Szeged, Debrecen, Miskolc); supply chains around large integrator enterprises million EUR (billion HUF) 675,5 (189,1) 277,9 (77,8) 536,5 (150,2) 489,3 (137,0) 544,2 (152,4) 356,3 (99,8) Exchange rate: 280 HUF/EUR The chart is based on the data of 30 October Source: SMIS

21 Enterprise breakdown of the supported projects (basedoncontractedamounts), Priority axis % of the supports goes to SMEs, with relatively balanced distribution in the priorities Source: AIR

22 Priority axis 4: current status Further budget increase in Combined Micro Credit Program leader product In 2012 the intermediary application, in 2013 the application for final recipients has been suspended. Modification of the New Széchenyi Loan Credit institutions can offer credit up to HUF 500 million. Own source is evenly 10%. In the case of transaction HUF 100 million or more the on the spot control is obligatory and their administration and implementation is much more strict. Maximum interest rate has been decreased from 9% to 6,5% with a regard to the market trends. Modification of New Széchenyi Credit Guarantee The credit amount has been increased from HUF 200 million up to HUF 500 million. Own source is reduced from 20% to 10%. State or municipality owned financial bodies were involved as financial intermediaries. The guarantee fee has decreased from 1% to 0,5%. Reshaping products in order to match with demand by SME s Budget increase of the New Széchenyi Venture Capital Programme On the basis of the European Committee decision SA (2013N) which was approved in the frame of simplified procedure, two more venture capital programmes were announced. 22

23 Priority axis 4 in figures Total Approved by MA * Agreements with financial intermediaries Contracts with final recipients billion HUF million EUR number number billion HUF million EUR Loan 103,2 368, ,6 387,69 Guarantee ** 14,4 51, ,78 13,5 Venture capital , ,28 101,01 Total 203,6 727, ,62 502,2 * The 7 year budget based on the operative Action Plan. ** The sum of the eligible costs in JEREMIE Programme. Contracted transactions with the own sources of financial intermediaries, exchange rate: 280 HUF/EUR The table based on the data of 18 October Source: MV Zrt. 23

24 Number of financial intermediaries contracts by institutions (EDOP) Number of agreements concluded with financial intermediaries Financial intermediaries December 2011 December 2012 October 2013 Venture Capital Funds Commercial banks Financial enterprises, Microfinance institutions Saving cooperatives Total The table based on the data of 18 October Source: MV Zrt. 24

25 Combined Programmes - current status 2/1 Combined Loan with Guarantee was closed The programme was closed in the IV. quarter of 2012 because of the limited available grant assistance. Closing the Combined Micro Loan Programme The intermediary application was closed in Further financial intermediaries were not accredited (final recipients were not closed from the possibility of the access of assistance). The grant assistance for the final recipients was closed on 8th of February in Challenges in combined constructions: Combined programmes (Combined Loan with Guarantee and Combined Micro Loan) New rules of procedure was necessary to impose in accordance with the coordination of institutional actors. Combined Loan with Guarantee Programme The market was not prepared enough for the acceptance and application of a complex high amount combined construction with several participants. Combined Micro Loan Programme New type of beneficiaries were introduced to the application system (target group of Combined micro loan: micro and start up companies). 25

26 Combined Programmes - current status 2/2 Budget Contracts with final recipients Amount refinanced by MV Ltd. million EUR (billion HUF) Number million EUR (billion HUF) million EUR (billion HUF) 192,8 (54) ,88 (49,53) 171,67 (48,07) The table based on the data of 18 October Source: MV Zrt. 26

27 Current status of Venture Capital Programmes Year of public ation Type of Venture Capital Funds 2009 Growth capital Allocat ed funds (billion HUF) Venture Capital Fu nds (number) Contracts with final recipients (number) Contracts with final recipients (billion HUF) Transactio ns disbursed to final recipients (number) Transactio ns disbursed to final recipients (billion HUF) Amount invested by JEREMIE (billion HUF) 27, , ,52 15, Growth capital 22, , Seed financi ng 2013 Growth capital , Growth capital Total: , ,52 15,10 27

28 Venture Capital Programmes Aim: to improve the capital status of Hungarian SMEs in the early ( seed and start up) and growth stage. Facility: Venture Finance Hungary Plc. (MV Zrt.) mediates financial resources for venture capital funds (max. 70%) Private contribution required: min. 30% Financial intermediaries: Venture capital fund managers licensed by HFSA. Investment policy: Venture capital funds 1 - Growth: max. 1,5 million EUR/fund/12 months/max. 3 times Venture capital funds 2 - Seed: max. 150 thousand EUR/fund/12 months/max. 2 times Venture capital funds 2 - Growth: max. 2,5 million EUR/fund/12 months Growth Venture capital funds 3 and 4: max. 2,5 million EUR/fund/12 months By 30 October 2013 the financial intermediary contracts were signed with 25 financial intermediaries, the contracts of the 2 winners of the Growth Venture capital fund 4 are in the pipeline. Currently 17 financial intermediaries are actively investing in the Venture capital funds 1 and 2 programmes. In the case of financial intermediaries of the Venture capital funds 3 and 4 the registrations are under process by the HFSA. By the end of October 2013 in the framework of Venture Capital Programmes the value of the investments contracted was 27 billion HUF with 69 companies. The value of the investments decided approaches the 34 billion HUF. 28

29 Value and number of closed transactions, Priority axis 4 Exchange rate: 280 HUF/EUR Chart based on the data of 31 October Source: MV Zrt. *Amount refinanced by MV Zrt. 29

30 Regional distribution of transactions with payment by products, Priority axis 4, Sept 2013 million EUR (billion HUF) 80 (24) 76 (22) 92 (27) 67 (20) 62 (18) 75 (22) Exchange rate: 293,1 HUF/EUR Information based on the 31 August 2013 data. Source: MV Zrt. 30

31 Regional and enterprise breakdown of transactions with payment, Priority axis 4 Primary target group of repayable funds are micro and small enterprises (98-99%) By number of transactions By value of transactions Information based on the 31 August 2013 data. Source: MV Zrt. 31

32 The main features of the planned OP modification and preparation for EDIOP ( ) 1. The OP modification was submitted to the European Commission the 15th of October 2013 (through the official SFC system). 2. Instead of public cost based settlement the total cost based settlement would be used with the European Commission. 3. The own funds of the private sector can be eligible - the co- financing rate (85 percent) applies to the private and public expenditures jointly. 4. The switch would be advantageous for those priorities which contain significant amount of private funds: 1st priority axis which supports R+D and innovation, the 2nd that enhances the development of enterprises and the 3rd developing business environment. 5. The switch would be ex post facto : if due to the obtained private funds, the eligible cost increases in the settlement the gained amounts are transferred retroactively from the European Commission 32

33 Economic Development and Innovation Operational Programme (EDIOP) priority axes 1st priority axis: Development of the competitiveness of enterprises and improvement of employment 2nd priority axis :Development of knowledge economy 3rd priority axis: Development of infocommunication 4th priority axis: Protection of natural and cultural resources through the utilization of the heritage sites and enhancement of energy efficiency 5th priority: Promotion of employment and development of corporate adaptability 6th priority: Development of financial instruments and services 7th Priority axis: Technical assistance Development of business environment, priority areas and sectors and entrepreneur target groups, employment oriented economic development Corporate R+D+I, strategic cooperation, excellence of research institutes and international cooperation Development of ICT sector, promotion of digital economy, dissemination of ICT knowledge, broadband network and infrastructure Utilization and protection of cultural and natural heritage, utilization of the Lake Balaton s touristic capacities, renewable energy, energy and resource efficiency Support of entry into labour market, labour market integration of young people (15-24), social economy, and non-profit employment programmes, LLL, institutional system of vocational and adult education and development of adaptability Improvement of the availability of FEIs (R+D+I, energetic and ICT projects with emphasis), development of financial intermediaries 33

34 Allocation of funds among EDIOP s priority axes 5. Promotion of employment and developmentof corporate adaptability 18% 6. Development of financial instruments and services 13% 4. Preservation of natural and cultural resources, energy efficiency 9% 3. IC development 10% 7. Technical assistance 3% 1. Competitveness of enterprisesand improvement of employment 29% 2. Developmentof knowledge economy 18% Source: EDIOP 3.0, financial plan,

35 Thank you for your attention! 35