Procurement and State Aid

Archive 2007-13 ERDF Programme Material

 

ERDF Logo Landscape Colour JPEG

Procurement

The most common error on ERDF is procurement. Project recipients must strictly follow the National ERDF Procurement Requirements which can be downloaded here.

A robust, open, transparent and non-discriminatory procurement process should be followed to ensure that all grant recipients:

  • Consider value for money (VFM)
  • Maximise the efficient use of public money and;
  • Maintain competitiveness and fairness across the EU.

Projects must ensure that they are also compliant with ERDF publicity / advertising requirements throughout procurement activity. Procurement processes, activity and evidence will be reviewed during audit visits. If this is unsatisfactory the grant could be subject to penalty or clawback.

State Aid

State Aid law regulates how public funding is applied in the EU to ensure that it does not distort trade between different Member States and thereby undermine the European Common Market.

A finding of unlawful State Aid could mean that the ERDF funding awarded is immediately repayable with compounded interest backdated to the point of award.

The Department for Business, Innovation and Skills (BIS) State Aid branch has led responsibility within UK government for co-ordination and development of state aid policy. The National State Aid Law Requirements and further information on State Aid can be found on DCLG website.

More information on State Aid can be found via the European Commission website.