G/SCM/N/3/EEC
Page 388
4. Duration of the subsidy
The Plan runs from 1992 to 1996.
5. Statistical data
The total amount of 2,307 million pesetas has been used to subsidize 265 projects, each of which
has received 8.7 million pesetas on average.
In view of the above figures and the fact that exports from the Spanish textile and clothing sector
in 1994 amounted to 350,951 billion pesetas and imports to 588,302 billion pesetas, it can be assumed that
the trade effects of the Plan are very slight.
6. Beneficiaries and requirements for grant of the subsidy
The following are eligible:
-Industrial enterprises and associations of enterprises, particularly SMEs, operating in the textile and
clothing sector or which contribute to diversification in areas where employment in the
textile sector accounts for at least 10 per cent of industrial employment.
-Public or private entities or bodies which carry out directly or support the activities listed in the objectives.
-Entities which promote the development of economic activities, which generate jobs and improve
scientific and industrial equipment, making the textile sector less dependent in the
above-mentioned areas.
Provision of the aid is subject to the applicants meeting their tax and social security obligations.
They are also required to submit documentation which provides adequate evidence that the activity for
which the subsidy is granted has actually been carried out in the corresponding financial year.
Additional Note
The Plan is regulated by the Ministerial Order of 16 July 1992 and is part of the Community
initiative RETEX. It applies only to the areas set out in 1, 2 or 5(b), and is notified under Article 25
purposes, having been in force in 1994.
9. AID TO SHIPBUILDING
Shipbuilding subsidies
These are provided for in Community legislation, and in 1994 were applied in accordance with
the Council Directive of 21 December 1990 on aid to shipbuilding (90/684/EEC) or Seventh Directive, as
amended by Directive 93/115/EEC regarding its period of application.
(i)Form of the subsidy
Non-repayable.G/SCM/N/3/EEC
Page 389
(ii)Subsidy per unit
Total subsidy granted in 1994: 11,583 million pesetas;
No. of subsidies granted in 1994: 26 vessels;
Average subsidy per unit: 445.5 million pesetas.
Of the 11,583 million pesetas, 7,304 million account for aid for financing and 4,279 million, aid for
restructuring, as defined in point (iii).
(iii)Policy objective and/or purpose of the subsidy
The fundamental aim of community and national policy is to ensure that the shipbuilding sector remains
competitive in the world market.
Since third countries continue to apply aid and/or measures that distort free competition in the
shipbuilding sector, in order to compete in the international market Community
shipyards must have access to operational aid (limited by a common ceiling: 9 per cent
or 4.5 per cent depending on whether or not the value of the ship to be built exceeds 10
million ECUs) and restructuring aid (for investments which do not imply an increase in
capacity, total or partial closure of facilities and research and development).
(iv)Time span
The duration of the programme is the same as that of the Seventh Directive which, in principle is in force
until 31 December 1995.
The subsidy is provided once the relevant construction or conversion contract has come into effect and
payments are made as the ship is built or converted, subject to provision being made in
the annual budget, which means an average delay in payments of approximately one year.
(v) Statistical data
Subsidies granted in 1994 did not increase Spain's share in the world market since, according to available
data, new contracts in 1994 for ships to be built in Spanish shipyards account for 2.1 per
cent of the world total, whereas historically the figure was higher (approximately 4 to 5 per
cent).
(vi)Beneficiaries and requirements for grant of the subsidy
For the purposes of the Plan, the shipbuilding sector is understood to mean shipbuilding enterprises
authorized to build metal-hulled vessels of over 100 Gross Registered Tonnes, other than
enterprises that have by shipbuilding plans connected with Ministry of Defence
programmes.
In order to obtain aid under the Plan, shipbuilders must submit an up-to-date schedule of their activities.
Entitlement to payments is subject to approval of the schedules.G/SCM/N/3/EEC
Page 390
Interest subsidy for shipbuilding loans
This is in addition to the shipbuilding subsidies described above.
(i) Form of the subsidy
Interest-rate subsidy
(ii)No. of subsidies granted 2 vessels;
Total amounts granted: 1,549 million and 330 million pesetas;
Period for repayment of loans: 14 and 8.5 years;
Average annual amounts: 110.6 and 38.8 million pesetas.
(iii) Purpose
As described in first section of point 9.
The measure applies only to national shipowners or those domiciled in the European Union and consists
of payment of up to 3 percentage points of the interest on shipbuilding loans granted by
domestic or foreign financial entities.
(iv)Time span
The duration of the programme is the same as that of the Seventh Directive which, in principle, is in force
until 31 December 1995.
The subsidy is paid throughout the term of the loan (8.5 to 14 years) subject to provision being made in
the annual budget, which means that there is a 3 to 9 month delay in payments.
(v)Statistical data
Subsidies granted in 1994 did not lead to an increase in the number of orders from domestic
shipowners or shipowners domiciled in the European Union to Spanish shipyards: in
1994 orders accounted for only some 15 per cent of total new orders to domestic
shipyards as opposed to an average of about 40 per cent in recent years.
10. AID TO IRON AND STEEL
(a) CSI
I. Form of the subsidy
This is a subsidy of 485,150 million pesetas, the ultimate purpose of which is to cover the
liabilities and surplus labour costs of two iron and steel companies in the process of being dissolved:
ALTOS HORNOS DE VIZCAYA and ENSIDESA, as part of the plan to restructure the holding
company, CSI, formed by the other two. The plan is based on the provisions of Commission
Decision 94/258/ECSC.G/SCM/N/3/EEC
Page 391
II. Subsidy per unit
Not applicable.
III. Policy objective or purpose of the subsidy
The restructuring of CSI comes under the 1993 Community iron and steel restructuring plan
whose main purpose is to reduce steelmaking capacity in the European Community.
The main objective is the closure of an integrated steelworks and a hot rolling mill in Vizcaya, and
the elimination of the following surplus production capacities:
-Pig iron2,300,000 t.
-Raw steel1,400,000 t.
-Hot-rolled coil 2,300,000 t.
IV. Duration of the subsidy
The subsidy is to be provided in a single payment, which was due before 31 December 1992 but
has been delayed.
V. Trade effects
-The closure of manufacturing plants will have a favourable impact as it will reduce surplus production
capacity in the European Community.
-Furthermore, the subsidy is to cover the liabilities and surplus labour costs of two residual companies with
no future steelmaking activity, and will therefore have no trade effects.
(b)SIDENOR
I. Form of the subsidy
The subsidy is for an amount of 87,842 million pesetas and its ultimate purpose is to cover the
liabilities and surplus labour costs of two iron and steel companies in the process of being dissolved:
ACENOR, FORJAS and ACEROS DE REINOSA, as part of the plan to restructure the holding
company, SIDENOR, formed by the other two. The plan is based on the provisions of Commission
Decision 94/261/ECSC of 12 April 1994.
II. Subsidy per unit
Not applicable.
III. Policy objective or purpose of the subsidy
The restructuring of SIDENOR comes under the 1993 Community iron and steel restructuring
plan whose main purpose is to reduce steelmaking capacity in the European Community.
Its main objective is the closure of two plants located in the Basque country manufacturing
structural steel light angles, shapes and sections, together with their electric steel plants, and the elimination
of the following surplus production capacity:
-Raw steel505,000 t.G/SCM/N/3/EEC
Page 392
-Hot-rolled angles, shapes and sections379,000 t.
IV. Duration of the subsidy
The subsidy is to be provided in a single payment, which was due before 31 December 1992 but
has been delayed.
V. Trade effects
-The closure of manufacturing plants will have a favourable impact by reducing surplus production
capacity in the European Community.
-Furthermore, the subsidy is to cover the liabilities and surplus labour costs of two residual companies with
no future activity in iron and steel, and will therefore have no trade effects.
11. INDUSTRIAL TECHNOLOGY ACTION PLAN
1. Form of the subsidy
Non-repayable grant and in some cases interest-rate subsidy.
2. Annual amount
8,671 million pesetas.
3. Purpose of the subsidy
The Plan's objectives, as laid down in the Ministerial Order of 15 March 1994
(BOE 22 March 1994), are to contribute to improving the overall level of competitiveness of the
economic and production system by introducing advanced technologies and improving the capacity to
generate them.
The Plan establishes the following actions:
-General measures to stimulate activities for incorporating advanced technologies.
-The creation and strengthening of technological infrastructures to facilitate access by SMEs to innovative
activities, with particular emphasis on less privileged regions.
-Promoting technological development in priority areas such as: information and communication
technologies, production technologies (automation, robotics, etc.), materials technologies,
life technologies (biotechnology and pharmaceutical research and development),
chemical technology and basic and processing industrial technologies.
4. Duration of the subsidy
The Plan is to run until 1996.
The subsidies are provided annually and projects covering more than one year may be subsidized
for a maximum of three years.
5. Statistical dataG/SCM/N/3/EEC
Page 393
In 1994 a total of 801 projects were subsidized, the average subsidy per project being 10.8 million
pesetas. In view of these figures, the size of the enterprises, the annual budgetary provision and the
number and type of beneficiaries, it can be said the trade effects are minimal.
6. Beneficiaries and requirements for grant of the subsidy
The following are eligible:
-public or private enterprises and entities;
-associations of such enterprises;
-non-profit making institutions;
which implement projects or measures related to the activities referred in the Plan's
objectives.
Subsidies under the Plan must be applied for and beneficiaries must be up-to-date with their tax
and social security obligations. Before the subsidy is paid, beneficiaries must produce documents showing
that the activity for which the subsidy is granted has actually been carried out. Certification is issued upon
completion of the project and the corresponding technical and economic verification.
Additional Note
The Plan subsidizes research and development projects and is therefore a non-actionable subsidy
within the meaning of Article 8.2(a) of the SCM Agreement. It is notified under Article 25, having been
in force in 1994.
12. CENTRE FOR THE DEVELOPMENT OF INDUSTRIAL TECHNOLOGY (CDTI)
1. Form of the subsidy
Low or even zero interest loans for company research and development projects.
2. Annual amount
-Commitments covering more than one year made in the 1994 financial year for projects for technological
development, innovation and the promotion of technology: 15,250 million pesetas.
-Payments made in the 1994 financial year for projects for technological development, innovation and
promotion of technology: 9,043 million pesetas.
3. Purpose of the subsidy
Support for the funding of different types of research in enterprises.
The legal basis for the subsidization of these activities is Royal Decree No. 2/1984 of
4 January 1984.
4. Duration of the subsidyG/SCM/N/3/EEC
Page 394
The duration of the projects varies, generally from 1 to 3 years. Loans are approved for the
whole project period, but payments are made as each technical stage is completed.
The CDTI's activity has no prescribed time-limit.
5. Statistical data
The aid has no distorting effects on international trade: in 1994 for example, it is distributed
between 316 approved new projects, 87 per cent of which are being carried out by small and medium-sized
enterprises with less than 500 workers. The average yearly payment per project is less than 30 million
pesetas, and projects are widely distributed among sectors.
6. Beneficiaries and requirements for grant of the subsidy
Enterprises implementing projects for technological development, innovation or technology
promotion are eligible for aid under the CDTI.
Additional note
CDTI aid goes to funding R&D projects exclusively, and is therefore deemed to be
"non-actionable" within the meaning of Article 8.2(a) of the SCM Agreement. It is notified under Article
25, having been in force in 1994.
13. AIRBUS PROGRAMME
1. Form of the subsidy
Repayable advances.
2.Annual amount
6,361 million pesetas.
3.Purpose of the subsidy
The AIRBUS A330/A340 development programme, supported by intergovernmental agreements
between the programme's partners.
4.Duration of the subsidy
The programme is to run until 1996.
5.Statistical data
Not applicable.
14. R&D PLAN FOR THE AERONAUTICAL SECTORG/SCM/N/3/EEC
Page 395
1.Form of the subsidy
Repayable advances.
2.Annual amount
2,862 million pesetas.
3.Purpose of the subsidy
Aerospace basic research and development projects.
4.Duration of the subsidy
The R&D Plan runs for five years, until 1998.
5.Statistical data
Since the Programme covers basic research, which is far removed from the marketing stage, it has
no trade effects.
Additional Note
The Plan is for basic research projects and is therefore regarded as programme of "non-actionable"
aid within the meaning of Article 8.2(a) of the SCM Agreement. It is notified under Article 25, having
been in force in 1994.G/SCM/N/3/EEC
Page 397
MINISTRY OF AGRICULTURE, FISHERIES AND FOODG/SCM/N/3/EEC
Page 398
I. NATIONAL SUBSIDIES TO THE AGRICULTURAL SECTOR IN 1994
1. PROMOTION OF THE CONTRACT SYSTEM IN AGRICULTURE
Form of the subsidy -Subsidization of costs of promotion campaigns
-Subsidization of part of the interest on loans granted by financial entities
that have concluded specific cooperation agreements.
Amount -Less than 10 per cent of promotion costs
-Up to 50 per cent if contracts involve associations.
Purpose Promotion of contract system from the production sector through the
distribution sector, for agricultural products with specific or generic
designation of origin.
Duration Specific to each individual promotion project or each loan requested
therefor.
Legal basis Order of 4 January 1989 of the Ministry of Agriculture, Fisheries and Food.
Beneficiaries Food distribution enterprises and associations of producers.
Requirements Contracts must be approved by the Ministry of Agriculture, Fisheries and
Food.
Value 411.7 million pesetas.
2. AGRICULTURAL INSURANCE
Form of the subsidy Subsidization of cost of farmers' weather insurance policies.
Amount 25 per cent, 40 per cent or 60 per cent of value of policy, according to
product.
Purpose Promotion of insurance in agricultural sector (and elimination of special
compensation for damage to insurable products).
Duration Specific to each insurance policy.
Legal basis Order of 12 January 1994 of Ministry of Agriculture, Fisheries and Food.
Beneficiaries Any individual farmer or association of producers taking out insurance.
Requirements The Agricultural Insurance Plan classifies combined insurance according to
weather accidents (frost, hail, wind, rain, ...) and products. The dates on
which insurance starts are set.
Value 15,600 million pesetas.G/SCM/N/3/EEC
Page 399
3. REPAIR AND PREVENTION OF DISASTER DAMAGE
Form of the subsidy Aid to owners of farms in regions affected by drought, in the form of a
moratorium on payment of social security contributions, water consumption
charges, mortgage loans, cancellation of tax on real estate and interest-rate
subsidies for social-interest loans.
Amount Three-point discount on interest on loans granted by financial entities that
have agreements with the Ministry of the Agriculture, Fisheries and Food;
up to a ceiling of 85,000 million pesetas.
Purpose To alleviate effects of drought.
Duration Specific in the case of special loans. Moratoriums and cancellations concern
1994.
Legal basis Royal Decree Law of 27 May 1994. Order of 7 July 1994 of the Ministry of
Agriculture, Fisheries and Food.
Beneficiaries Owners of farms in regions specifically mentioned in the Ministerial Order.
Requirements The amount of the special loan is calculated on the basis of 25,000 pesetas
per LSU, 40,000 pesetas per unirrigated hectare and 150,000 pesetas per
irrigated hectare, with a ceiling of 4 million pesetas per farm owner.
Value 18,201.3 million pesetas.1
1Of this amount, 703.1 million concern the loan interest-rate subsidies, and 1,368.2 million the moratoriums and
cancellations.G/SCM/N/3/EEC
Page 400
II.SUBSIDIES TO THE AGRICULTURAL SECTOR CO-FINANCED BY THE EUROPEAN
UNION IN 1994
Title Amount
(million pesetas)
Modernization of agricultural structures 29,751.1
Conservation of protected regions and areas 1,038.5
Prevention of and protection against forest fires 1,869.8
Agricultural and food research and testing 292.6
Occupational training in agriculture 731.2
Management and improvement of agricultural productivity 914.5
Animal reproduction and selection 463.7
CAP accompanying measures 11,224.2
Restructuring sectors of production 10,352.0
Animal and plant health 5,884.1
Management of agricultural supply 3,606.1
Promotion of agricultural industrialization 11,152.31
Agricultural income compensation (IMC) 11,225.7
Agreements on statistical information and accountancy network 395.0
Promotion of cooperativism 370.4
1Figure corresponds to national contributions. The amounts corresponding to the other titles are down in the Spanish
General State Budgets as paid out in 1994. Approximately 45 per cent of the amounts will be refunded by the European Union.
This percentage should therefore be regarded as an advance provided by the Spanish State.G/SCM/N/3/EEC
Page 401
MINISTRY OF THE ECONOMY AND FINANCEG/SCM/N/3/EEC
Page 402
Member State
Spain.
Department responsible
Ministry of the Economy and Finance, General Directorate of Regional Economic Incentives,
Paseo de la Castellana 147, 28071 Madrid.
Relevant legislation
- Law 50/1985 of 27 December on regional economic incentives to correct economic imbalances
within the territory.
- Regulation approved by Royal Decree 1535/1987 of 11 December as amended by Royal
Decree 897/1991 of 14 July, Royal Decree 302/1993 of 26 February and Royal Decree 2315/1993 of 29
December. The Regulation was adopted by an EU Commission Decision of 1 June 1987.
Thirteen Royal Decrees delimiting the areas for economic promotion.
Form
Non-repayable subsidies granted for production investments and calculated on the investment
approved by the Administration.
Procedure for payment of the aid
The aid is provided once the Autonomous Community concerned has issued a report showing
that the project has been fully implemented and that the requirements in the corresponding Individual
Resolution accepted beforehand by the beneficiary have been met within the set time-limit. Enterprises
may apply to receive the subsidy in instalments provided that they produce evidence that the part of the
investment corresponding to each instalment has been completed, together with adequate guarantees
against failure to complete.
Annual amount budgeted
General State Budgets for 1994: 17,063.2 million pesetas, spent in their entirety.
Objectives
The purpose of the regional incentives is to promote entrepreneurial activity and encourage the
establishment of enterprises in previously determined areas, in order to lessen economic disparities
between different parts of the national territory, achieve more balanced distribution of economic activities
throughout the territory and strengthen the regions' potential for internally generated development.
Duration of the regional aid scheme
The scheme will continue to apply as long as the disparities in regional development which
prompted its establishment persist.G/SCM/N/3/EEC
Page 403
Statistical data
With regard to statistical data permitting an assessment of the trade effects of the aid programme,
it should be noted that since the subsidies take the form of capital for production investment in
less-favoured regions, they are not considered to be inconsistent with the principle of free competition.G/SCM/N/3/EEC
Page 404MINISTRY OF PUBLIC WORKS, TRANSPORT
AND THE ENVIRONMENTG/SCM/N/3/EEC
Page 406
AID TO THE NATIONAL ENTERPRISE FOR THE MANAGEMENT
OF INDUSTRIAL WASTE
Form of the subsidy
Direct transfer of funds.
Amount for 1994
600 million pesetas.
Purpose of the subsidy
Participation in the construction of a waste incinerator for the city of Melilla.
Legal basis
BOE of 30 December 1993. Law of 29 December 1993. State Budgets for 1994. Budget Item
17.14.443.D.740.
Statistical data
No trade effects.G/SCM/N/3/EEC
Page 407
AUTONOMOUS COMMUNITY OF ANDALUSIAG/SCM/N/3/EEC
Page 408
AID GRANTED IN THE FINANCIAL YEAR 1994
The statistical data available do not permit an assessment of the trade effects of the aid measures
adopted by the Autonomous Community of Andalusia which are set out in detail below.
1.AID FOR ENTERPRISES SET UP IN THE CARTUJA 93 TECHNOLOGY PARK IN SEVILLE
-Legislation: Order of 2 February 1994 concerning aid for enterprises setting up in Cartuja 93, Seville
(BOJA*No. 14 of 5 February 1994).
-Beneficiaries: Enterprises which carry out projects involving any of the activities listed below:
(a) Research and development;
(b) advanced services;
(c) technological support and dissemination of technology.
- Conditions on which aid is granted:
Types of aid:
- Grant;
-subsidy on the interest charged by the private financial institution granting the corresponding
credit on market terms.
- Conditions of application:
-Percentage of investment: The grant may not exceed 30 per cent of the subsidizable investment;
- the interest subsidy will be from one to eight points.
Costs entering into the aid calculations:
(a) Tangible fixed assets connected with the realization of the project;
(b)intangible assets linked with the investment in question. Within this category preference will
be given to subsidizing the cost of the research and development carried out by the
enterprise itself in Cartuja 93 in which connection the subsidizable items will include the
costs of hiring or obtaining the collaboration of research personnel.
- Objective of the aid programme:
Technological research and development and regional development
The aim of the programme was to support investment in technological research and development in
Andalusia and, more specifically, in the Cartuja Technology Park in the city of Seville.
*Official Journal of the Autonomous Government of Andalusia.G/SCM/N/3/EEC
Page 409
- Regional administration: Autonomous Government of Andalusia
- Implementation period: 1994
- Total cost: 75,000,000 pesetas
2.AID PROGRAMME FOR THE TECHNOLOGICAL MODERNIZATION OF THE
ANDALUSIAN INDUSTRIAL SECTOR FOR THE FINANCIAL YEAR 1994
-Legislation: Order of 2 February 1994 establishing an aid programme for the technological
modernization of the Andalusian industrial sector (BOJA No. 14 of 5 February 1994)
- Beneficiaries: small- and medium-sized enterprises (SMEs)
- Conditions on which aid is granted:
Type of aid: Grant
Percentage of investment: Where fixed assets are concerned, the amount of aid may not exceed
30 per cent of the subsidizable investment, with a maximum of 50 million pesetas. In other cases - studies,
plans, training, etc. - the subsidy may amount to 75 per cent of the proposed investment, with a maximum
of 10 million pesetas.
Costs entering into the aid calculations: There are five types of subsidizable projects and hence of
costs which may enter into the aid calculations:
(1) Investment for renewing or modernizing production machinery or equipment.
Costs:
- Investment in fixed assets, preferably intended for:
- Automating and improving the flexibility of the production process;
- warehouse automation;
- purchase of numerically controlled machinery and machine tools;
- computer-aided control of the production process;
- computer-aided manufacturing;
- introduction of computer-aided design;
- production chain robotics;
- in general, the incorporation of advanced technology in the production system.
(2) Investment for encouraging technological innovation and development
Costs:
- Investment in equipment intended for creating and/or upgrading I&D units;G/SCM/N/3/EEC
Page 410
- setting up pilot plants;
- making prototypes and presses;
-running costs associated with I&D projects, industrial design, industrial cooperation in the area of
innovation and technology, training in advanced technologies, access to technological
information services, protection of industrial property rights and technology transfer,
development of proposals for participation in national and international I&D
programmes and technological demonstration and dissemination operations.
(3) Investment for improving industrial quality systems
Costs: Investment, preferably for:
- Installing and equipping testing laboratories;
- purchasing and installing process control and measuring equipment;
- purchasing and installing product control and measuring equipment.
(4) Promotion of the use of advanced telecommunications services (ATS) by SMEs
Costs:
- ATS popularization, training and dissemination activities;
-studies and projects intended to introduce industrial SMEs or trade associations to the
above-mentioned services.
(5) Energy efficiency
Costs:
- Adaptation or modification of production plant, equipment or processes;
- cogeneration;
- waste heat recovery;
- replacement of conventional by renewable energy sources;
- replacement of conventional energy sources by natural gas.
- Objective of the aid programme:
Regional development
The programme had the following objectives:
(1) Renewal or modernization of production machinery and equipment in Andalusia;
(2) encouragement of technological innovation and development;G/SCM/N/3/EEC
Page 411
(3) improvement of the industrial quality system;
(4) promotion of the use of advanced telecommunications services by SMEs;
(5) energy efficiency.
- Regional administration: Autonomous Government of Andalusia
- Implementation period: 1994
- Total cost: 1,225 million pesetas
ERDF funding ........................ 937 million pesetas
A.G. of Andalusia funding.......... 288 million pesetas
3. AID PROGRAMME FOR INVESTMENT IN INFRASTRUCTURE AND EQUIPMENT
-Legislation: Order of 2 February 1994 concerning the granting of subsidies for investment in
infrastructure and equipment (BOJA No. 14 of 5 February 1994)
- Beneficiaries: Small- and medium-sized enterprises (SMEs)
- Conditions on which aid is granted:
Type of aid: Grant
Conditions of application:
-Percentage of investment: The amount of aid may not exceed 30 per cent of the subsidizable
investment, with a maximum of 100 million pesetas per project.
Costs entering into the aid calculations:
- Rural power distribution and supply installations;
- commercial natural gas distribution networks;
-installation of power stations using renewable resources, with a capacity of not more than 5 MW
(hydraulic power) or 15 MW (other types of renewable energy).
- Objective of the aid programme:
Regional development
Since Andalusia's energy supply depends mainly on petroleum derivatives, it was considered
necessary to promote the use of alternatives such as natural gas and renewable energy sources. Given the
existence of a primary infrastructure for the transport of natural gas in Andalusia, it was decided to support
the development of the commercial natural gas distribution networks by providing installation subsidies.
Moreover, to promote the use of local renewable resources for energy production it was considered
desirable to support the installation of power stations that use these resources, thereby reducing energy
dependency.G/SCM/N/3/EEC
Page 412
- Regional administration: Autonomous Government of Andalusia
- Implementation period: 1994
- Total cost: 1,700 million pesetas.
4.AID INTENDED FOR COFINANCING USED OIL AND PLASTIC WASTE MANAGEMENT
ACTIVITIES
-Legislation: Order of 22 September 1994 concerning the granting of aid by the Environmental Agency
for the management of used oil and agricultural plastic waste generated by farming activities on
Andalusian territory (BOJA No. 158 of 7 October 1994)
- Beneficiaries:
Public and private enterprises which perform the management tasks described above. All the beneficiary
enterprises are SMEs.
- Conditions on which aid is granted:
Type of aid: Grant
The aid is directed towards the following activities:
-Management of used oil collected within the territory of the Autonomous Community of
Andalusia involving reclamation, use as fuel, storage, analysis and grading in transfer
centres;
-collection, storage and treatment (recycling or re-use as fuel in controlled processes) of plastic
waste generated by farming within the same territory.
- Objective of the aid programme:
Protection of the environment. Seeks to bolster two activities.
- Regional administration: Autonomous Government of Andalusia
- Implementation period: 1994
- Total cost: 95 million pesetas
5.SUBSIDIES INTENDED TO IMPROVE THE CONDITIONS OF PROCESSING AND
MARKETING OF AGRICULTURAL PRODUCTS
-Legislation: Order of 2 February 1994 developing Decree 22/1994 of 1 February establishing economic
revitalization and business support measures relating to investment in the handling, processing and
marketing of agricultural products (BOJA No. 14 of 5 February 1994)
- Beneficiaries:
Any legally constituted enterprise, and preferably agrarian associations composed mainly of agricultural
producersG/SCM/N/3/EEC
Page 413
- Conditions on which aid is granted:
Types of aid:
- Grants;
- subsidy on the interest.
Conditions of application:
- Subsidies: limit of subsidy relative to investment subsidized:
Agrarian associations: up to 50 per cent
Other beneficiaries: up to 45 per cent
- Interest subsidies: up to eight points
- Costs entering into the aid calculations:
The investments eligible for subsidization are those specified in Annex 1 of the accompanying Decree.
The following investments are excluded:
-Purchases of office equipment, furniture, purchases of equipment that can be written off in one
year and the like;
- formation and initial costs;
- taxes and charges, whether or not recoverable by the beneficiary;
-vehicles, except when because of their special characteristics they meet the requirements of the
industrial activity;
-secondhand buildings, unless they have been unoccupied for more than six months and by their
nature are adaptable to the industrial activity to be subsidized.
- Objective of the aid programme:
Regional development. Seeks to promote improvements in the conditions of processing and
marketing of agricultural products by cofinancing investment intended for that purpose.
- Regional administration: Autonomous Government of Andalusia
- Implementation period: indefinite duration
- Total cost: 1,944 million pesetas per year. The budget for 1994 has already been spent.
6. AID FROM THE ANDALUSIAN PROMOTION INSTITUTE (IFA)G/SCM/N/3/EEC
Page 414
-Legislation: Law 3/1987, dated 13 April, establishing the Andalusian Promotion Institute (BOJA No. 33
of 14 April 1987)
Decree 122/1987, dated 6 May, approving the General Regulations of the Andalusian Promotion Institute
Law (BOJA No. 42 of 18 May 1987)
- Objective of the aid programme:
Regional development
- Beneficiaries: SMEs
- Conditions on which aid is granted:
Types of aid:
- Grants;
- equity participation;
- repayable loans;
- equity loans;
- avals;
- interest subsidies;
- rescue and restructuring aid for SMEs in crisis.
(1) SUBSIDIES
Subsidizable projects and conditions on which aid is granted: the following projects may be
subsidized:
(a)Studies which provide support for decision-making in business management and for improving
the competitiveness of enterprises
Limit: 50 per cent of cost, but not more than 3 million pesetas
(b)Studies required to give SMEs easier access to risk capital. Thus both the studies which the
enterprises must make and the cost of those which must be carried out by the revenue
capital company itself to assess its participation will be subsidized
Limit: 50 per cent of cost, but not more than three million pesetas
(c)Recruitment of experts by SMEs for specific projects of limited duration (technological
modernization or study projects)
Maximum percentage subsidy: 50 per cent
Maximum amount: 3 million pesetas per expert per year
Maximum duration: two yearsG/SCM/N/3/EEC
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(d)Cost to enterprises of introducing Community quality standards. The following are covered:
1. Preparation of a Quality Procedures Manual
Maximum percentage: 50 per cent
Maximum amount: 2 million pesetas
2. Introduction of quality and certification procedures
Maximum percentage: 70 per cent
Maximum amount: 2.5 million pesetas
3. Product certification in accordance with quality standards
Maximum percentage: 50 per cent
Maximum amount: 5 million pesetas, as a general rule but subject to compliance with
the quality standards applicable
4.Investment in intangibles, mainly training in quality topics and computerized quality
control and assurance equipment
Maximum percentage: 50 per cent
Maximum amount: 1.5 million pesetas per year
(e)Subsidies for cogeneration projects. Exclusively for project feasibility studies (not for investment
in tangible assets)
Maximum percentage: 50 per cent
Maximum amount: 3 million pesetas
(f)Technological audits for SMEs. The technological audit involves a study of the production
structure and organization of the beneficiary enterprise leading to an expert diagnosis and
a series of proposals for improving the production process. The audit is regarded more as
a tool for the use of the IFA since it enables the Institute to understand the true situation
of the enterprise studied and to act with full knowledge of the facts on any aid application
made by the enterprise in connection with its projects
(g)Viable job creation or plant conversion investment initiatives providing employment for at least
two years
Maximum percentage: 50 per cent
Maximum amount: 100 million pesetas
(2) EQUITY PARTICIPATION
Types of projects eligible for subsidization:
Participation where justified by the socio-economic importance of the project to be undertaken or
the relevance of the enterprise itself to regional development. The initiatives must be viable and suitable
managers must be available.
The following types of projects are eligible for subsidization:
-Initial creation or launching of an enterprise on terms equivalent to those for a private investor;G/SCM/N/3/EEC
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-creation and increase, within specified limits, of the capital of advanced services centres for
providing services for enterprises at market rates;
-capital contributions for the creation of enterprises or public entities or bodies formed for the
purpose of establishing industrial parks, with the subsequent sale of sites on market
terms;
-creation and increase of the capital of venture capital companies, with the participation of, and on
the same terms as, private partners. In the event of an increase of capital, the IFA's
participation will not exceed the specified limit;
-contributions intended to help an SME overcome a crisis situation by providing it with
self-financing for the investment needed to ensure viability in the medium term. The
characteristics of this type of aid are defined at the end of item 10 of this communication.
Conditions on which aid is granted:
Maximum percentage: 49 per cent of capital
Maximum amount: 150 million pesetas
(3) LOANS
- Types of project eligible for subsidization:
- Financing of fixed and current assets;
- debt refinancing.
As regards the financing of fixed and current assets, it should be noted that, as a general rule, the
IFA does not grant loans intended exclusively for financing an enterprise's current assets. The amounts
earmarked for this purpose are very limited and tied to the financing of fixed assets and to a single
production cycle.
In exceptional circumstances and, in general, for enterprises with a special socio-economic impact
on their environment, loans may be granted for current assets not directly linked with an investment in
fixed assets but necessary for the continued activity of the enterprise. This credit line will not exceed 5 per
cent of the loan aid budget.
The projects must be at least 30 per cent self-financed.
As far as debt refinancing is concerned, there are two possibilities:
- Refinancing of the debt associated with a recent investment
In granting this type of aid consideration will be given to the fact that it is intended to overcome the
immediate difficulties of small- and medium-sized enterprises (bearing in mind that
Andalusia is a 92.3(a) region) and to the fact that it will be granted only once.
-debt refinancing for small- and medium-sized enterprises in crisis by providing self-financing for
the investment necessary to enable them to achieve medium-term viability