PART THREEGENERAL PROVISIONS APPLICABLE TO THE ERDF, THE ESF AND THE COHESION FUND

TITLE IIPROGRAMMING

CHAPTER IIMajor projects

Article 102Decision on a major project

1

Where a major project has been appraised positively by a quality review by independent experts, on the basis of their assessment of the information referred to in the first paragraph of Article 101, the managing authority may proceed with the selection of the major project in accordance with Article 125(3). The managing authority shall notify the Commission of the selected major project. That notification shall consist of the following elements:

a

the document referred to in point (c) of Article 125(3) setting out:

  1. (i)

    the body to be responsible for implementation of the major project;

  2. (ii)

    a description of the investment, its location, timetable and expected contribution of the major project to the specific objectives of the relevant priority axis or axes;

  3. (iii)

    the total cost and total eligible cost, taking account of the requirements set out in Article 61;

  4. (iv)

    the financing plan, and the physical and financial indicators for monitoring progress, taking account of the identified risks;

b

the quality review of the independent experts, providing clear statements on the investment's feasibility and the economic viability of the major project.

The financial contribution to the major project selected by the Member State shall be deemed to be approved by the Commission in the absence of a decision, by means of an implementing act, refusing the financial contribution within three months of the date of the notification referred to in the first subparagraph. The Commission shall refuse the financial contribution only on the grounds that it has established a significant weakness in the independent quality review.

The Commission shall adopt implementing acts establishing the format for the notification referred to in the first subparagraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 150(3).

2

In cases other than those referred to in paragraph 1 of this Article, the Commission shall appraise the major project on the basis of the information referred to in Article 101 in order to determine whether the requested financial contribution for the major project selected by the managing authority in accordance with Article 125(3) is justified. The Commission shall adopt a decision on the approval of the financial contribution to the selected major project, by means of an implementing act, no later than three months after the date of submission of the information referred to in Article 101.

3

The approval by the Commission under the second subparagraph of paragraph 1 and paragraph 2 shall be conditional on the first works contract being concluded, or, in the case of operations implemented under PPP structures, on the signing of the PPP agreement between the public body and the private sector body, within three years of the date of the approval. At the duly motivated request of the Member State, in particular in the case of delays resulting from administrative and legal proceedings related to the implementation of major projects, and made within the three year period, the Commission may adopt a decision, by means of an implementing act, on the extension of the period by not more than two years.

4

Where the Commission does not approve the financial contribution to the selected major project, it shall give in its decision the reasons for its refusal.

5

Major projects notified to the Commission under paragraph 1 or submitted for approval under paragraph 2 shall be contained in the list of major projects in an operational programme.

F16

Expenditure relating to a major project may be included in a payment application after the submission for approval referred to in paragraph 2. Where the Commission does not approve the major project selected by the managing authority, the declaration of expenditure following the withdrawal of the application by the Member State or the adoption of the Commission decision shall be rectified accordingly.

F27

Where the major project is appraised by independent experts pursuant to paragraph 1 of this Article, expenditure relating to that major project may be included in a payment application after the managing authority has informed the Commission of the submission to the independent experts of the information required under Article 101.

An independent quality review shall be delivered within six months of the submission of that information to the independent experts.

The corresponding expenditure shall be withdrawn and the declaration of expenditure shall be rectified accordingly in the following cases:

a

where the independent quality review has not been notified to the Commission within three months of the expiry of the deadline referred to in the second subparagraph;

b

where the submission of the information is withdrawn by the Member State; or

c

where the relevant appraisal is negative.