22 – CLARIFICATIONS

22.1    Own contribution

1. The funds exceeding the grant needed to complete the total project budget will constitute the project’s own contribution. This can be financed either through loans from financial institutions or direct company resources. Proof of own contribution must be included in the electronic application submission, such as bank statements or letters certifying available funds in the name of the business or its shareholders. If shareholder funds are used, an additional formal declaration indicating their commitment to finance the project is required.
2. For own contributions financed through bank loans, official documentation from the financial institution confirming the loan approval must be presented. The Grant Agreement will specify that grant funds must be deposited into a designated account, and any change to this account must be approved in writing by the lending bank. The agreement will also ensure all transactions related to eligible expenses are processed through a bank account registered under the beneficiary’s name, adhering to stipulations outlined in paragraph 8.3.14 of the Clearing Act.

22.2     Grant funds

Grant funds will be disbursed directly to the beneficiary and cannot be transferred to third parties.

22.3     Eligible Investments

1. Beneficiaries must purchase new machinery and equipment for the project. The eligible costs will cover the procurement of energy storage systems, their installation and technical testing, site preparation, container housing system (incl. HVAC, fire suppression system, DC panel, auxiliary supply inside the housing), inverter, transformer, balance of system, energy management system (incl. SCADA), Engineering, Procurement and Construction (EPC), and the certifications of storage units. No aid will be provided for research and development, facilities for electricity generation from RES and for their connection to the grid, as well as for Value Added Tax (VAT).
2. Investments to meet Union standards post-transition period per Union legislation are ineligible for funding.
3. Union standards refer to compulsory levels that businesses must meet, primarily regarding environment, hygiene, and animal treatment practices.
4. Eligible expense documentation includes original or certified true copies of paid invoices and payment receipts, which should be kept for audits as specified in the Grant Agreement. Invoices and receipts must be in the business’s name.
5. The grant calculation for equipment costs will be based on the CIF (Cost, Insurance, and Freight) price for items imported directly by the company from abroad, or on the purchase price as shown on the invoice for items bought domestically. Invoices from Cypriot suppliers of machinery, equipment, or services that are not VAT-registered will not be accepted.
6. Invoices will be considered valid for payment if they are settled through the company’s banking mechanisms, including cheques, credit card payments, or direct bank transfers, all in the name of the supplier. This must be substantiated with relevant documentation such as the company’s bank statement, which should detail the cheque numbers, and record bank and credit card transactions used for these payments.
7. If the cheque number is not specified on the payment receipt for an invoice, a bank-stamped copy of the cheque is required. Payments in cash will not be eligible for grant reimbursement. Expenses under €100, excluding VAT, are also ineligible. For equipment purchases through a finance lease where the applicant is the lessee, costs will be recognized if lease payment documentation is submitted.
8. All subsidized assets must be used solely in the aided unit, be depreciable, and purchased from unrelated third parties. Purchases from relatives up to the 4th degree or affiliated businesses will only consider the original cost of products or raw materials. Notably, acquiring services or software from these relatives or affiliated entities does not qualify as an eligible expense.
9. For all eligible expenses, quotations must be submitted with the application.
10. MECI holds the authority to set the final eligible cost for all investment cost categories based on available data.
11. For grant disbursement, beneficiaries must clear any dues with the Social Insurance Services and the Department of Taxation regarding VAT and income tax. Under the Law on Accounting and Financial Management and Financial Control of the Republic of Cyprus (Law 38(I)/2014), Article 13 “Offsetting of Income and Expenses”, the Accountant General may offset payments due to any economic entity or specialist from payments made to individuals or legal entities.

Τέλος