Adamos Adamou
In the new year, the sponsorship plan for the digital upgrade of the companies will finally be announced, for which they have been budgeted for expenses of 20 million euros. The plan for digital business upgrade is one of the eight sponsorship plans that will be announced in 2022 by the Ministry of Energy, Trade and Industry. The total amount that will be used for the sponsorship plans in the new year will approach 130 million euros based on the presentation of the budget of the Ministry of Energy that took place recently in Parliament.
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Regarding the plan for digital upgrade of companies that the market expected this year, the ministry remains committed to increase its budget fivefold compared to the plan implemented in 2019, as it provides, as mentioned, an expenditure of 20 million euros in relation to sponsorships of 6 million. euro. Under the previous plan, there were 509 applications, for proposed investments of 18.5 million euros and by the middle of the year, 371 companies were approved to raise sponsorships amounting to 5.3 million euros. Around € 30 million will be available for digital upgrades over the next seven years, of which € 20 million will be available with the announcement in 2022. However, the lion's share of the Ministry of Energy, Trade and Industry sponsorship plans (YEEB) for 2022 has the plan for energy upgrade of companies and local authorities since it is estimated to amount to 40 million euros. It follows with a cost of 35 million euros the plan of sponsorships for energy upgrading of houses. Within 2022, a grant plan of 7-8 million euros for thermal insulation, RES and charging stations for electric vehicles will also be announced, which will provide double sponsorship for the mountainous areas. As far as businesses are concerned, in the new year, based on the presentation of the IEEB budget, a plan for the provision of consulting services to companies of 5 million euros will be announced, and a sponsorship plan for large industries of 7 million euros. The IEEB will also announce a sponsorship plan for the circular economy of 13 million euros and a special subscriber plan to ensure businesses' access to 15 thousand euro standards.
Proposals of 209 million euros
Almost all IEB sponsorships are co-financed by the European Structural Funds. According to the ministry, the implementation of co-financed sponsorship schemes is an important tool for achieving the goals of the Industry and Technology Service of YEEB. “Undoubtedly, financing is one of the main factors of business activity, which is why emphasis has been placed on utilizing as much resources as possible from the Structural and Investment Funds of both the previous programming period (2014-2020) and the new period 2021- 2027 “, he states in a relevant note, adding that for the new programming period 2021-2027, the Industry and Technology Service has submitted proposals corresponding to 209 million euros.
Then the YEEB records the announcements that have already been made in the context of the co-financed projects of the new programming period. Specifically, the ministry refers to this year's announcements, noting the following:
• Sponsorship Plan to Enhance the Competitiveness of SMEs in the Manufacturing Sector and other Targeted Economic Activities (budget € 50 million). The Plan was announced on February 9, 2021 and applications were accepted until September 30, 2021. 652 applications have been submitted, which are in the stage of administrative control / evaluation.
• Sponsorship Plan “Saving – Upgrading to Housing” (Budget € 35 million). The Plan was announced on March 9, 2021 and applications were accepted until June 22, 2021 due to the exhaustion of the budget of the announcement. 2152 applications have been submitted, which are in the stage of administrative control / evaluation.
• EPSA Measure 3a “Investments in wine companies” 10th Announcement (Budget € 2.75 million). The Plan was announced on April 8, 2021 and applications were accepted until July 2, 2021. 33 applications have been submitted. The evaluation of the applications has been completed and 27 applications were approved for a budget of € 2.1 million.
• New Entrepreneurship Support Plan (Budget € 30 million). The Plan was announced on May 17, 2021 and applications are accepted until December 30, 2021 or until the available budget is exhausted.
The ministry also reminds that with the sponsorship plans of the programming period 2014-2020, a total of approvals were given to 3,756 beneficiaries for a total amount of € 118.4 million, of which 1,638 for an amount of € 97.4 million concern businesses, while the rest 2,118 for € 21.59 million concern the “Save-Upgrade Houses” Plan. To date, € 63 million have been paid to 876 companies and € 16 million. to 1,625 natural persons (residences). It also informs that for the implementation of the sponsorship plans the Ministry has a significant part of its human resources, and in addition for the purpose of speeding up the processing time of the payment requests, this work has been assigned to private accounting offices. The same practice applies to projects co-financed by the European Regional Development Fund and the costs are covered by technical assistance. According to the YEEB, for the programming period 2021-2027, the recruitment of fixed-term employees and / or the hiring of services is planned to cover the additional needs that are created. In addition, for the purposes of better management and faster processing of applications, he reminds that a national electronic platform has been created, which was prepared by a private company with the coordination of the TYP and the ministry. “The platform hosts all the sponsorship plans and the applications for the new announcements are now submitted electronically, as will happen with the new announcements. Undoubtedly, this effort will bring substantial benefits, such as a significant reduction in bureaucracy, increased productivity, savings in evaluation time and an increase in the absorption of available resources. “Two part-time employees are expected to be hired soon for the purpose of faster and better implementation of the project of computerization of sponsorship projects”, the YEEB continues in its note.
The project for which consultation is initiated has also been included in the Recovery and Sustainability Plan
8.4 million plan to strengthen the extroversion of Cypriot companies
Within 2022, it is expected that the foundations will be laid for a sponsorship plan that will strengthen the extroversion of Cypriot companies. For this purpose, it is planned to start consulting with all stakeholders in order to announce a sponsorship plan to strengthen extroversion, which has been included in the Recovery and Sustainability Plan with a budget of 8.43 million euros. For the purposes of the project, this year's budget of the Ministry of Energy envisages expenditures of 580 thousand euros, while for 2023 expenditures of 2.2 million euros are foreseen as in 2024. This plan will finance actions carried out by existing or new Cypriot companies with the aim of strengthening extroversion and increasing exports. The project will benefit companies operating in the fields of processing and marketing of agricultural and industrial products as well as in the field of services. In addition, from the new year, due to the lifting of the restrictions that existed due to the pandemic, the ministry will offer sponsorship projects amounting to 3.6 million euros for companies to participate in exhibitions aimed at promoting Cypriot products and services abroad. In this context, the above sponsorships will be allocated for the operation of the de minimis project (de mimimis) to companies active in the fields of processing and / or marketing of agricultural products for private participation in trade fairs in Cyprus and abroad and the de minimis project ” de minimis ”to Cypriot companies participating in trade fairs abroad in which the Ministry of Energy, Trade and Industry participates with a state kiosk. The sponsorships will also be used for the state aid scheme for promotion and advertising of agricultural products in the EU. and third countries and for organizing events for the promotion of agricultural products, participation in specialized food fairs in Cyprus and abroad, as well as other promotional events.
