6. Eligibility of Expenditure for Community Funding

6.1 General selection criteria

Only the operations and projects carried out under the conditions set by the present Plan are eligible for Community assistance. Investments eligible shall meet selection criteria fixing priorities and indicating investments, which are not eligible. In order to be eligible for Community assistance, the measures implemented of the present Plan have to be in accordance with the guidelines of the Community’s policies and in particular with the Rural Development Strategy and the Objectives of the CAP as set out under Point 3.1 above.

Unless otherwise specified in the present Plan, the rules laid down in Council Regulations (EC) No. 1268/1999, 2759/1999, 1266/1999, and Commission Decision 99/595/EC shall apply correspondingly to the measures under the present Plan.

Expenditure relating to administrative costs and personnel borne by Applicant Countries and by recipients of aid from EU will not be taken over by the Fund.

Selection criteria for actions related to rural development:

·        Application is submitted by an applicant eligible for support under the SAPARD programme (see definition of the final beneficiary);

·        The investments proposed must concern agricultural product of the approved priority sector;

·        Project is directly related to implementation of the acquis communautaire;

·        Project is able to contribute to the overall objectives of the Rural Development Programme for Lithuania;

·        Project assures compliance with Community requirements regarding veterinary standards;

·        Project assures compliance with Community requirements regarding environmental rules;

·        A holding or an enterprise meets the minimum standards regarding the environment, hygiene and animal welfare (Environmental impact assessment where necessary completed and relevant legal acts, approved by the State Veterinary Service, cover the standards regarding hygiene, sanitation and animal welfare);

·        Project involves activities, which are not already funded under other national measures and EU structural instruments;

·        Applicant has no deferred tax liabilities and keeps accounts;

·        Support will be granted only to the projects without the objective of increase in production for which no normal market outlets can be found;

·        Any operation shall remain eligible only if it does not within five years from the date of the authorization of the payment by the Lithuanian National Paying Agency undergo a substantial modification affecting its nature or its implementation conditions or giving to a firm or public body a undue advantage; and resulting either from a change in the nature of ownership in a item of infrastructure or a cessation or change in location in a productive activity;

·        Where applicable Environmental impact assessment shall be carried out prior to investment according to Law On Assessment of the impact on Environment (compliant with EU directives 85/337/EEC and 97/11/EC, including Annex I and II)

·        Beneficiary shall ensure that activities financed by this programme are not co-financed by other Community funds, e.g. ISPA and Phare*.

6.2 Specific selection criteria

The specific conditions for eligibility and selection criteria applicable to each of the measures under the present Plan are set out in the Technical Sheets in ANNEX II to this Document.