The amount of grant which may be paid under this scheme shall not exceed 5 per cent of such expenditure incurred, or to be incurred, for the purposes of the project as is approved by the Commission or the Council in deciding the amount of Community aid under the interim Council Regulation or the new Council Regulation, as the case may be, which the project shall receive.

Where the expenditure referred to in sub-paragraph (1) of this paragraph has been approved for the purposes of any grant out of United Kingdom public funds other than a grant under this scheme, and that other grant is insufficient to enable the project to receive the amount of Community aid decided by the Commission or the Council, the amount of grant which may be paid under this scheme shall not exceed such amount as is sufficient, when added to that other grant, to enable the project to receive that amount of Community aid.

A grant is a grant out of United Kingdom public funds for the purposes of sub-paragraph (2) of this paragraph if, and only if, it constitutes a financial contribution of the United Kingdom to the total investment for the purposes of article 6(2)(b) of the interim Council Regulation or article 15(4) of the new Council Regulation, as the case may be.