31 | Smart Regions Enterprise Innovation Scheme
ώ The total eligible project costs will be limited to the investment costs in tangible and intangible assets for the construction and/or upgrade of the infrastructure. Other costs, such as operating costs relating to the operation and maintenance of the infrastructure cannot be supported. ώ The funding gap, i.e. the maximum aid amount that can be provided is the difference between (i) the overall investment costs in tangible and intangible assets for the infrastructure and (ii) the projected total net operating profit over the lifetime of the infrastructure. That is, the projected profit is subtracted from the investment costs. The calculation of the projected profit should be based on the actual projected lifetime of the infrastructure and is expected to be at least a 15-year period. ώ The price charged for the use of the infrastructure shall correspond to the market price. ώ If the infrastructure has a residual value the infrastructure may be transferred to a public authority where the facility is to be used for a non-economic activity at the end of the useful lifetime of the asset. ώ The profit calculation will be assessed ex ante and post the actual delivery period. If profits exceed the projected figure, then these excess profits will be subject to a claw-back mechanism and will be repaid to the funding agency. ώ A claw-back mechanism will apply where the infrastructure has a residual value and is used for economic activity; it could be sold to an undertaking or a public authority carrying out an economic activity at market price and the amount of the sale returned to Enterprise Ireland. ώ This plan will identify a gap in the regional ecosystem that the promoters propose to provide a local infrastructure solution for; it must define the sector/s and company categories to which the local infrastructure will be provided; and give details of the local infrastructure to be constructed or upgraded by the promoters. The applicants must provide detail on their operational plans to deliver the local infrastructure over the life of the project; and the potential to maintain and/or scale the provision of the local infrastructure further. ώ Aid may not be given where the proposed recipient is subject to an outstanding order for the recovery of aid which has been declared by the Commission to be illegal and incompatible with the common market or where the proposed recipient is an undertaking in difficulty. Article 56 of the General Block Exemption Regulation (GBER) provides funding for the investment costs for the upgrade/construction of the local infrastructure projects only , this includes both tangible and intangible investment costs. Eligible Costs 12 Eligible costs are limited to the upgrade/construction of the local infrastructure. Eligible cost categories include: ώ Supportable Capital, New Build costs – Enterprise Ireland will support the construction of a new stand-alone building or an upgrade of infrastructure to an existing building to create dedicated space for the project. Eligible costs include construction costs and the related architectural and engineering design fees as well as the fit out and equipment costs.
12 All eligible costs exclude VAT. Where applicants can certify through the Revenue Commissioners that they have unrecoverable VAT and, if so indicated at application it may be deemed an eligible expense under this fund.
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