Loans – EDIOP
Updated: 07.01.2019
Author: John Szabo
Apart from subsidies, the Economic Development and Investment Operational Programme (EDIOP) also provides loans for the deployment of renewable energy sources within the following financing directions Annex 1 to Decision 1006/2016 (I.18.):
- EDIOP – 4.1.1 -8.4.4-16 “Energetic refurbishment of buildings with the inclusion of RES backed by a combined credit product” HUF 6.95 billion (approx. € 190.85 million). The tender has been open since December 2016.
- EDIOP – 4.1.1-18 “Energetic refurbishment of buildings with the inclusion of RES backed by a combined credit product” HUF 52.5 billion (approx. € 163.55 million). The tender has been open since February 2018.
- EDIOP -8.4.1/A-17: “Enhancement of energy efficiency and use of renewable energy sources in residential build-ings supported with a bank loan”, HUF 105.2 billion (approx. € 327.72 million). The tender has been open since February 2017.
Amount
The budget of the European Structural and Investment funds for Hungary is € 24.98 billion within the financing period of 2014-2020. For more information on the composition of the budget see: https://ec.europa.eu/info/publications/partnership-agreement-hungary-2014-20_en.
According to the Hungarian government, the overall budget of the ten national operational programmes amounts to HUF 12,000 billion (€ 37.38 billion).
Procedure
Process flow | - The Ministry responsible opens the invitation for tender. Calls for tenders are to be opened according to the sched-ule of the respective Government Decision (e.g. Decision No. 1084/2016 on the budget for the Environmental and Energy Efficiency Operational Programme). However, the deadlines for tender initiation are often not met.
- Online registration for the application. Applicants must check whether they meet eligibility criteria in the frame-work of a certain call for tender. Information is provided by the government on the respective online platform, where the applicant can find tender documentation. The applicant may then initiate the online application process. The applica-tion can only be submitted if the mandatory documents are completed.
- Evaluation of the application. (standard procedure) After having submitted the online application, the respective au-thority begins the evaluation process provided that the can-didate is eligible for the allocable funds. The authority in-forms the applicant in case documents are missing and grants a certain timeframe to provide these. Subsequently, the authority evaluates the application according to content criteria. Unless otherwise stated, the applicant can be con-tacted both in written and oral form, if the authority finds (ex post) that the call for tender had contradictory ele-ments.
- Decision on the application (standard procedure). A deci-sion preparation committee is nominated by the application coordination authority in order to decide the success of a certain application. The coordination authority then deter-mines whether the recommendation of the decision prepa-ration committee will be accepted or rejected. If the appli-cation is considered successful, the applicant has to be in-formed up tp ten days after the decision is taken.
Exceptions and further criteria The process flow described above is the standard application proce-dure. Some calls for tenders are initiated in the framework of a sim-plified process (no decision preparation committee involved) or an ‘exceptional’ invitation. Regarding the latter, the authority might decide that the project can be supported if the applicant does not fulfil certain criteria (ex ante) laid out in the tender documentation. In this case, those criteria are negotiated ex post between the au-thority and the applicant. Furthermore, additional criteria which have to be taken into account are laid out within the call for tender. More information (in Hungarian): https://www.palyazat.gov.hu/download.php?objectId=53779 |
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Distribution of costs
European Union | The national operational programmes serve as an allocation mecha-nism of the European Structural and Investment Funds (ESI). Over the period of 2014-2020 a total budget of € 25 billion is granted to Hun-gary. Furthermore, the Hungarian state contributes to the financing of the national operational programmes (see above). |
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State | The Hungarian state contributes to the financing of ten national op-erational programmes, which mainly allocate financial means from the European Structural and Investment funds (ESI) for different purposes, e.g. energy and environmental issues. The state contribut-ed € 4.63 billion for the period between 2014-2020. |
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