Consultations on the required documentation
In this section you will find a selection of the most frequently asked questions about the documentation required by the Intermediary in terms of revenue-generating projects, and the answer that it has offered.
The content of this section is a mere reference and lacks binding.
Question: ¿Quéalcance must have the analysis that "so justified, shows that the operation generates a negative flow of net income or that the amount of their net income is zero"?:
Answer: As indicated in document of "Instructions on the documentation required by the Intermediary"produced by this General Direction, for the purposes of Rule 55 (CE) No 1083 / 2006 of the board of 11 July 2006, will be considered “projects whose income generated are equal or lower than the operating costs of the project”, those actions which meet some of the features mentioned in paragraph 1 of this Article 55, its total amount exceeds one million euros and submit a negative flow of net income or the amount of net income is zero.
For this type of proceedings, the beneficiary entity should make the report of the intervention or body monitoring the local entity “ MOD. (III ” duly completed and, as an annex, an analysis signed by the subscriber of this report in which so justified, shows that the operation generates a negative flow of net income or that the amount of their net income is zero.
On the horizon or reference period must cover the analysis, their forecasts should be made to an appropriate period to economically useful life of the project. The duration will vary depending on the nature of investment. The time horizon of reference by sector based on internationally accepted practice and recommended by the European commission is as follows:
Sector | Horizon (in years) |
Energy | 25 |
Water and environment | 30 |
Railways | 30 |
Ports and airports | 25 |
Roads | 25 |
Industry | 10 |
Telecommunications | 15 |
Education | 15-20 |
Museums and cultural spaces | 10-15 |
Hospitals and health infrastructure | 20 |
Parks and forests | 25-35 |
Industrial areas and technology parks | 20 |
Other services | 15 |
In the detailed analysis, by annuity annuity, revenues generated and the planned generate, and operating costs of the project that have been supported and planned bear.
The analysis annex constitutes the technical justification of the statement by the intervention or body monitoring the local entity in the report “ MOD. (III ”. Therefore, the magnitudes employed should be based, preferentially, the documentation before the beneficiary entity and in particular, in the relative to the execution and liquidation of their budgets, and its accounting, detailing for each year, amounts recognised or planned recognize in the respective applications of states of income and expenditure.
The level of detail of data expressed in the analysis annex should ensure sufficiency and entity of the audit trail, allowing their identification in an administrative verification or on site.
On the assumption that use information provided by third parties - for example, a concesionario-, data shall have the appropriate support in his regime of accounts.
Question: If a municipal service, by which the user pays directly at a price, is managed indirectly by a concession which does not provide any revenue to the administration DO we face a project that does not generate income?
Answer: First, it is necessary to reiterate that analysis of revenue-generating projects must be addressed, obligatorily, based on the concept established in Article 55.1 of RFC. In this sense, as an example of course more common, necessarily TENDRÁN THE CONDICIÓN OF INCOME-GENERATING PROJECTS, all those performances in which the user is DIRECTLY PAYING a rate (or imports) for the use of infrastructure or at the reception of the service. These projects require reporting of intervention or Body monitoring the local entity MOD. II, III or (IV (depending on their characteristics) and other documentation concordant, in the terms that indicate the instructions.
Remember that these effects, it is absolutely irrelevant how is being managed infrastructure or providing the service (directly or indirectly), as well as the impact that the possible cashflows may have for the owner of the infrastructure or service (as the flow, in his case, it should analyse in the terms laid out in document instructions mentioned already). therefore, on the other hand, not Only have the status of "revenue-generating project" (report of the intervention or body monitoring the local entity MOD. I instructions), those actions of investment in infrastructure whose use is not subject to the direct payment of a fee by users (e. g. free use), or those supplies of services that are provided free of charge to users.
Question: if the infrastructure financed under the FEDERse has integrated into a service of a general nature that estitularidad another administration how should be considered for the purpose of the application of art. 55 of the regulations (CE) No 1083 / 2006 of the board of 11 July 2006?
Answer: On the assumption that the performance financed has been incorporated within an infrastructure or overall service (either This title of the beneficiary entity, either title of another local entity), information and analysis to refer, it should refer to the whole infrastructure or service, and not only the part that has been financed by the FEDERA, or which might belong to the beneficiary entity.
For example, if a Provincial office (recipient of aid), signed an agreement with a council of its territorial scope for the execution of a project to the expansion of the network of supply of drinking water at home in the municipality (financed action), the analysis of the project revenue generator and the documentation should be referred to the service of supply of drinking water at home of this municipality, in its entirety.
Question: what extent is the expression of that “ for an operation is considered breadwinners must have an independent functioning ”?
Answer: In the document of "Instructions on the documentation required by the Intermediary", sent along with the injunction, literally states:
“ for an operation is rated “revenue-generating project”, it requires that has an independent functioning and there is a group of specific users to pay fees or charges / corresponding fares. ”
This paragraph is situated within the section labeling“ what is being verified by the Intermediary? ”and has as its principal mission explain how to carry out the performance of control by the Intermediary. therefore, its contents should be interpreted in relation to the rest of the paragraph.
As he suggests, each of the projects funded by the FEDERA - European terminology, each “ transaction ” – is considered “integrated project”, i.e., are projects that mostly consist of several “ proceedings ”. Well, each of their actions can be part of the same service or infrastructure, or may have an independent functioning.
Thus, for theirexample, the integrated project of “ sustainable development of the city of XX ” (the operation funded), can be composed of three actions that possess an independent functioning (ex: “ construction of a house of culture ”, “ improvement of the network of water ” and “ enlargement of the municipal crèche ”).
Therefore, in order to ensure the full implementation of the Rule 55 (CE) No 1083 / 2006 of the board of 11 July 2006, it must be a “ independent analysis ” for each of the actions that could shape the integrated project.
Based on this premise, the analysis of each of the proceedings of the project is to take place in the light of the concept laid down in Article 55.1 of RFC. That way, has the status of revenue-generating project,
"(…) any operation that includes an investment in infrastructure whose use is subject to the direct payment of a fee by users or any operation that includes the sale or lease of land or immovable or any provision of services to title onerous".
As an example of a typical case, has the status of revenue-generating project a performance of investment in infrastructure, in which the user is directly paying a rate (or an amount) for its use, or at the reception of a service provided through the same.
These projects require reporting of intervention or body monitoring the local entity MOD. II, III or (IV (depending on their characteristics) and other documentation concordant, in the terms that indicate the instructions. (...)