The eligible expenditure is the key basis for the calculation of the level of Community assistance. This calculation depends on the type of project:
For non-revenue generating projects:
The level of grant is calculated by applying the co-financing rate to the total of eligible costs25.
For revenue generating projects:
The funding-gap26 method will be applied.
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25 The co-financing rate, defined as the percentage of total eligible costs that can be co-financed by the EU grant, is set by priority axis in every operational programme.
26 The funding-gap method is defined in article 55 of the General Regulation. It is also clearly explained in the Commission Working Document No.4 "Guidance on the methodology for carrying out Cost-Benefit analysis" and in COCOF 07/0074/04-EN. Further guidance is available in JASPERS's Working paper "Combining EU Grant Funding with PPP for Infrastructure: Conceptual Models and Case Examples".