This will be the case mainly when the feasibility studies are not detailed enough and the level of information is insufficient for introducing an application, or when the results of the bids, potentially in the case of a competitive dialogue procedure, could substantially influence the financial figures of the project. It could also apply if the grant applicant wishes to reduce the risk of having to re-submit an application due to changes in project cost and grant rate resulting from the tender process.
There is a risk that the grant might not be approved after the commercial close, although this risk might be lower if the project is already listed as an indicative major project in the Operational Programme. As a practical and operational solution to mitigate this risk, the grant applicant should always communicate with the Managing Authority and request it to review the tender dossier before it is published. After review, the grant application is finally submitted to the Commission. Such communication could also be established at Commission level, although it should be noted that the Commission is more involved at Operational Programme level than at project level. JASPERS, whose role is to assist certain Member States in the preparation of this type of projects, should also be a valuable interlocutor.
By the time that a preferred bidder is selected, the Contracting Authority should finalise the grant application. The following steps should be taken in chronological order:
a) Close the commercial phase.
b) Include all the relevant information on the contract in the grant application.
c) Submit the grant application.
As mentioned previously, the Commission has the obligation to communicate its decision within a maximum of three months from the day the grant application is submitted, provided that the application is clear and the application process does not need to be interrupted to obtain further information.
The table bellow summarises the respective advantages and drawbacks of each of the two scenarios described above, taking into account that in each case careful time management is crucial:
| Advantages | Drawbacks | Type of projects where preferable |
Scenario 1: grant application before commercial close | • Reduces the delays of grant award • The private sector can fully integrate the EU grant into its proposal | • Risk of bids being igher/lower than estimated and therefore level of grant is inaccurate | • High quality of feasibility studies |
Scenario 2: grant application after commercial close | • Allows to provide full information on the PPP contract in the grant application • Reduces uncertainty on award of grant | • Extends the overall length of the procedure | • When bids could substantially influence the financial figures of the project (competitive dialogue) |