EU Funds: 56 companies received between 10,000 and 90,000 BAM

Last week, the payment of grants for a total of 56 small and medium-sized enterprises (SMEs) within the EU Flood Recovery Programme was completed, announced the Delegation of the European Union, reports the BH news agency Patria.

The awarded grants will help selected companies to restart their business activities after the floods in May 2014, as well as to preserve and create jobs that were threatened by the floods. Grants were paid in the range of 5,100 to 46,000 euros (10,000 - 90,000 BAM) per legal entity, and all selected companies co-finance this EU investment.

This investment, worth 1,472,520.62 euros (2,880,000.00 BAM), is expected to result in the preservation and creation of up to 2,000 jobs in the flood-affected areas of Bosnia and Herzegovina.

- In order to achieve this goal and thus encourage the economic recovery of local communities after the floods, the EU has provided support only to healthy companies – those that have no tax debts, which operated without losses before the floods, and which already have established commercial ties with suppliers, a number of other SMEs and micro-producers – says Andy McGuffie, spokesperson for the EU Delegation to BiH and the EU Special Representative.

The first results of this EU investment are already visible. The company Voćar d.o.o. from Brčko District of BiH, specializing in the production of food products, is on the list of EU grant recipients. Founded as a small family business in 1989, it has grown into a medium-sized company that exports its products to the Western Balkan countries, EU member states, and the USA. Director Esed Musić emphasizes that the EU grant in the amount of 80,000 BAM was of key importance in maintaining the level of production and jobs.

- The funds were used to procure raw materials to maintain the continuity of the production process and retain the 43 employees we currently have on the payroll – adds Musić.

For Saša Vajić, director of the company for the production of lighting fixtures, research and development in the LED technology sector Saša-trade d.o.o. from Doboj, the EU grant was the first financial assistance the company received since its establishment in 1998.

- This was timely and effective assistance in the amount of 50,000 BAM, which we used to ensure the uninterrupted continuation of business. Thanks to these funds, we have retained existing employees and increased the number of employees from 30 to 35 – emphasizes Vajić.

The teams of the EU Flood Recovery Programme will closely monitor the use of grant funds, and selected companies are subject to a continuous verification and visit process to ensure the appropriate and efficient use of EU funds, as well as to ensure they continue to comply with tax payment obligations.

- In case any irregularities or breaches of contractual obligations are found, approved grants may be withdrawn and awarded to another company – concludes McGuffie.

The EU Flood Recovery Programme was launched with the aim of enabling the normalization of living conditions in local communities and ensuring that aid reaches the most vulnerable after the May floods. Financial resources are used for the restoration of public services and infrastructure, the reconstruction of residential buildings for the most vulnerable, and the socio-economic recovery of local communities. The value of the entire Programme is 43.52 million euros, of which 42.24 million was provided by the European Union.