EEA & Norwegian Financial Mechanism

The European Economic Area (EEA) was created by means of an agreement negotiated between the EU and seven member countries of the European Free Trade Association (EFTA) and signed in May 1992. At present, only Norway, Iceland and Liechtenstein maintain their participation in the EEA.

As a result of the Agreement, the three EEA EFTA states share in the four freedoms associated with the EU but must also satisfy certain conditions, including that of contributing to the funding of projects. Through the EEA Enlargement Agreement, two new financing instruments were established - the EEA and the Norwegian Financial Mechanisms.

Through the EEA Financial Mechanism, the three EEA EFTA states have made €600 million available for projects in the 10 new EU members, and to Greece, Portugal and Spain. Additionally Norway has made € 567 million available to projects in the 10 new member states through the Norwegian Financial Mechanism. Thus, a total of € 1.17 billion have been made available for projects in the priority sectors of the financial mechanisms for the period 2004 – 2009.

Objectives

Through the two mechanisms, Iceland, Liechtenstein and Norway contribute towards:

Solidarity, by reducing the social and economic disparities in the newly enlarged EEA;
Opportunity, by helping new EEA members become fully integrated in the Internal Market;
Cooperation, by bringing old and new EEA members together and opening new arenas for political and economic relations.

Principles, Rules and Regulations

The beneficiary states set priorities and propose, develop and implement projects.
In order to ensure the effective implementation of the mechanisms, a Memorandum of Understanding (MoU) is concluded between the EFTA states and each beneficiary state. There is one MoU for each mechanism. In the case of Malta, the MoU for the EEA Financial Mechanism was signed on 28 April 2005 granting Malta €1.92M. On the other hand, the MoU for the Norwegian Financial Mechanism, granting Malta €1.701M, was signed on 27 June 2005.
ALERT mismanagement of funds

The MoU

Specifies the target areas to which particular attention is to be paid;
Establishes the specific form of grant assistance;
Outlines the arrangements for managing the projects;
Establishes a framework for co-operation;
Institutes a National Focal Point (NFP) that will co-ordinate all applications and follow up all projects within each beneficiary state. The National Focal Point also ensures that information about the available funds and grants is made public in the beneficiary state;
Recommends adherence to EEA legislation. The rules on public procurement, state aid and competition are particularly relevant;
In order to be eligible, the recipient must provide a share of the total financing from other sources (15% in the case of public-sector projects and 40% in the case of private-sector projects).

Priorities

The financial mechanisms support projects implemented in the various Beneficiary States which target a wide range of priority sectors:

Protection of the environment
Sustainable development
Conservation of European cultural heritage
Development of human resources
Health and childcare

The Norwegian Financial Mechanism will also make funding available for:

Implementation of legislation in the field of internal security and border control, such as support for ‘Schengen' action plans
Regional policy and cross-border activities
Implementation of acquis communitaire through technical assistance

Academic research within the priority sectors of both mechanisms may also be eligible for funding.

Within these sectors, each beneficiary state decides its own priorities, thus it may not necessarily receive funding in all priority sectors. The chosen priority sectors for Malta are:

EEA FM	PRIORITY AREA	FOCUS AREAS
1	Protection of the environment, including the human environment	Integrated pollution prevention and control; fuel reduction Promotion of renewable energy
2	Conservation of European cultural heritage, including public transport, and urban renewal	Revitalisation, conservation, renovation, modernization and adaptation of historical objects, which have European significance Condition monitoring and preventive maintenance routines for historical objects and complexes: and purpose remedies
3	Health and Childcare	Modernisation and equipping crèches, nursery schools, schools, special school-educational centres, orphanages Scholarship programmes Promoting gender equality
4	Academic Research	Fields of intervention as outlines in 1 – 3 above

NORWEGIAN FM	PRIORITY AREA	FOCUS AREA
1	Conservation of European cultural heritage, including public transport, and urban renewal	Revitalization, conservation, renovation, modernization and adaptation of historical objects, which have European significance Condition monitoring and preventive maintenance routines for historical objects and complexes: and purpose remedies
2	Implementation of the Schengen Acquis	Support of National Schengen Action Plans Strengthening police-cooperation in order to prepare for membership in the Schengen information system
3	Strengthening the judiciary	Improved standard of prison buildings and training of personnel Educational programmes in prisons Improved health care and health information for prison inmates Preventive action to reduce youth criminality Improved competence programmes and physical conditions for asylum seekers and illegal immigrants
4	Academic research	Fields of intervention as outlined in 1-3 above

A call for proposals was issued by the Maltese NFP on 25th August 2005 making available available € 1,741,824 through the EEA Financial Mechanism and € 1,527,073 through the Norwegian Financial Mechanism. All public or private sector bodies and non-governmental organisations (NGOs) were targeted as potential applicants. Applicants were also expected to constitute a legal entity and registered in Malta. The subject of the application was also expected to be an activity in the public interest and performed in Malta. a total of 41 projects were submitted from several organisations ranging from national and local authorities to voluntary and community organisations and from education institutions to environmental bodies. The number of non-governmental and private organisations applying for EEA funds was considerable.

Following a rigid Project Selection procedure, 8 projects were selected for implementation under the EEA and Norwegian Financial Mechanisms:

CODE MT	PROJECT TITLE	EEA/NFM GRANT €	PP CO-FIN €	TOTAL VALUE €	FM	BENEFICIARY	STATUS
0005	Master Plan for the Cittadella – the old fortified city of the Island of Gozo	229,075	40,425	269,500	EEA	MGOZ	Concluded
0006	Implementation of Schengen Acquis requirements at MIA by April 2007	517,863	528,959	1,046,822	NFM	Malta Int'l Aiport Plc.	Concluded
0008	Procurement and Installation of Security/Safety Equipment for Building Sites housing SIS equipment	246,656	43,528	290,184	NFM	Malta Police Force	Concluded
0010	Setting up an Oil Spill Response Capability for the Protection of our seas	800,000	200,000	1,000,000	EEA	Transport Malta	Ongoing
0011	Xrobb l-Ghagin Nature Park and Sustainable Development Centre	635,725	88,916	724,641	EEA/NFM	Nature Trust (Malta)	Ongoing
0012	Consolidation of Terrain and Historic Ramparts Underlying Council Square, Mdina	562,488	99,262	661,750	EEA/NFM	MRRA (Restoration Unit, Works Division)	Concluded
0013	Technical Assistance Fund for Malta	73,288	12,933	86,220	EEA/NFM	OPM (PPCD)	Ongoing
0014	Conservation of Hal Saflieni Hypogeum – World Heritage Site	324,863	57,329	382,192	NFM	Heritage Malta	Ongoing

Manual of Procedures

April 2010:

Manual of Procedures (MoP) v. April 2010
Annexes to MoP v. April 2010

August 2008:

Guidelines

Legal Documents

Annual Reports – EEA Financial Mechanism

Annual Reports – Norwegian Financial Mechanism

Minutes of Annual Meetings held

Presentations

For more information

Contact: Ms. Leonie Aquilina Xuereb
Planning and Priorities Co-ordination Department
Office of the Prime Minister
12 St. Paul Street
Valletta VLT1210
Malta
Tel. No.: 356 2200 1860
Fax No: 356 2200 1141
Email

For more general information

Contact: Financial Mechanism Office12-16
Rue Joseph II
B-1000 Brussels
Belgium
Tel: 32 (0)2 286 17 01
Fax: 32 (0)2 286 17 89
Email

Planning and Priorities Coordination Department

Office of the Prime Minister