WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.4 
22 November 2007 
 (07-5141) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Cyprus .   
 
_______________ 
 G/SCM/N/155/EEC/Add.4 
Page 2  
 
  CYPRUS  
 
TABLE OF CONTENTS 
 
  Page  
I. INCENTIVES PROVIDED TO CYPRIOT COMPANIES PARTICIPATING IN 
TRADE FAIRS, ORGANIZED BY THE MINISTRY OF COMMERCE, INDUSTRY AND TOURISM, ABROAD.............................................................................. 3
 
II. INCENTIVES PROVIDED TO CYPRIOT COMPANIES PARTICIPATING IN 
TRADE FAIRS ABROAD, ON THEIR OWN EXPENSES................................................ 4  
III. CONTRIBUTION TO THE INST ITUTE OF TECHNOLOGY ........................................ 4  
IV. CONSULTANCY SERVICES SCHE ME FOR INDUSTRY .............................................. 5  
V. A SCHEME FOR THE SUBSIDISATION OF STUDIES FOR THE ADOPTION 
OF STANDARDS ................................................................................................................... .6 
VI. A SCHEME FOR THE SUBSIDISATION OF STUDIES FOR MARKET 
RESEARCH FOR FOREIGN MARKETS ........................................................................... 7  
VII. A SCHEME FOR THE UTILISAT ION OF THE INTERNET .......................................... 8  
VIII.  SCHEME FOR TECHNOLOGICAL UPGRADING OF THE 
MANUFACTURING SECTOR ............................................................................................. 9  
IX. SUBSIDISATION OF LOAN INTEREST FOR TECHNOLOGICAL 
UPGRADING OF THE MANUF ACTURING INDUSTRY.............................................. 10  
X. SCHEME FOR THE RELOCATION OF SMALL ENTERPRISES IN 
APPROVED AREAS............................................................................................................. 10  
XI. ASSISTANCE TO MANUFACTURING INDUSTRIES TO ESTABLISH POLLUTION CONTROL SYSTEMS................................................................................. 11
 
XII. "RESEARCH FOR ENTERPRISES" PROGRAMME .................................................... 12  
XIII.  "EUREKA CYPRUS" PROGRAMME .............................................................................. 13  
XIV.  "FOLLOW-UP" SCHEME .................................................................................................. 15  
XV. GRANT FOR THE IMPLEMENTATION OF THE ΗΑCCP SYSTEM IN THE 
FOOD AND DRINK INDUSTRY ........................................................................................ 17  
XVI.  GRANT FOR STRENGTHENING THE LABORATORY INFRASTRUCTURE 
IN CYPRUS...................................................................................................................... ...... 18  
XVII.  GRANT FOR STRENGTHENING THE LABORATORY INFRASTRUCTURE 
IN CYPRUS IN THE IN THE FORM OF DEMINIMIS................................................... 19  
XVIII.  GRANT FOR CONTROL QUALITY ABROAD (LABORATORY TESTING 
ABROAD)........................................................................................................................ ....... 21  
XIX.  PROGRAM FOR THE CREATION AND OPERATION OF BUSINESS 
INCUBATORS..................................................................................................................... ..22 
XX. PROGRAM FOR THE CREATION OF NEW ENTERPRISES OF HIGH 
TECHNOLOGY AND INNOVATION THROUGH THE INSTITUTION OF BUSINESS INCUBATORS................................................................................................... 23
 
XXI.  PROMOTION OF HANDICRAFTS ................................................................................... 24  
  G/SCM/N/155/EEC/Add.4 
 Page 3 
 
 
  I. INCENTIVES PROVIDED TO CYPRIOT COMPANIES PARTICIPATING IN 
TRADE FAIRS, ORGANIZED BY THE MINISTRY OF COMMERCE, INDUSTRY AND TOURISM, ABROAD 
1. Title of subsidy
 
 
 Promotion of industrial products by providing financial incentives to the Cypriot companies, 
participating in Trade Fairs organi zed by the Ministry abroad.   
 2. Period covered by notification
 
 
 2005 - 2006.   
 3. Policy objective
 
  To promote Cyprus industrial products exhibited in Trade Fairs organized by the Ministry 
abroad.   
 4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tour ism.  Annually approved by the Council of 
Ministers through the Government Budget.   
 
5. Form of subsidy
 
  The Ministry bears the transportation costs of th e exhibits, the rental costs of the exhibition 
area and the construction expenses of the stand of th e Cypriot companies participating in the National 
pavilion.   
 6. To whom the subsidy is paid
 
  This incentive is provided to Cypriot companies participating in trade fairs organized by the 
Ministry abroad.   
 
7. Duration of subsidy
 
  The scheme is provided every year and is still in existence.    
8. Amount budgeted for 2005
:  CYP 1 100 00.   
  Amount budgeted for 2006
:  CYP1 100 00.   
  Amount spent in 2005
:  CYP 1.048. 000.   
 
 Amount spent in 2006 :  CYP 1.073. 000.   
 9. The trade effects of the subsidy
 
  No effects on international trade.   
 G/SCM/N/155/EEC/Add.4 
Page 4  
 
  II. INCENTIVES PROVIDED TO CYPRIOT COMPANIES PARTICIPATING IN 
TRADE FAIRS ABROAD, ON THEIR OWN EXPENSES 
1. Title of subsidy
 
  Promotion of industrial products by providing financial incentives to the Cypriot companies, 
participating in Trade Fairs abroad, on their own expenses.   
 2. Period covered by notification
 
  2005 - 2006.   
 
3. Policy objective
 
  To promote Cyprus industrial products exhibited in Trade Fairs abroad.    
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tour ism.  Annually approved by the Council of 
Ministers through the Government Budget.    5. Form of subsidy
 
 
 The Ministry covers 70 percent of the rental and construction costs of the stand etc up to a maximum of CYP 2500 for non spacious exhibits and up to CYP 4000 for spacious exhibits.   
 6. To whom the subsidy is paid
 
 
 This incentive is provided to Cypriot companie s participating in trade fairs abroad, on their 
own expenses.   7. Duration of subsidy
 
 
 The scheme is provided every year and is still in existence.   
 8. Amount budgeted for 2005
:  CYP 400.000.   
  Amount budgeted for 2006
:  CYP 491.000.   
 
 Amount spent in 2005 :  CYP 163. 000.   
  Amount spent in 2006
:  CYP 241.000 
 9. The trade effects of the subsidy
 
 
 No effects on international trade.     
III. CONTRIBUTION TO THE INSTITUTE OF TECHNOLOGY 
1. Title of subsidy
 
  Contribution to the Institute of Technology.     G/SCM/N/155/EEC/Add.4 
 Page 5 
 
 
  2. Period covered by notification  
  2005 - 2006.    3. Policy objectives
 
 
 To help the Institute of Technology materi alise its development pr ogramme for technology 
transfer.    4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Tourism on the basis of a Decision of the Council of Ministers (No. 485/2004 dated 7 April 2004).    5. Form of subsidy
 
 
 A grant of a maximum amount of £160.000 calculated on the basis of the annual budget deficit resulting from yearly operating expenses.    6. To whom and how the subsidy is paid
 
 
 Institute of Technology – 50 per cent of the grant is paid at the beginning of the year as an 
advance payment and the rest is paid at the end of the economic year on the basis of the final 
accounts.   7. Amount of subsidy
  
 
 Total payment in: 2005:  £CY 152.126.       2006:  £CY 160.000.    8. Duration of subsidy
 
 
 The aid was granted for the first time in 1999 and continues to be granted on a yearly basis.   
 9. The trade effects of the subsidy
 
 
No effects on international trade.   
 
 
IV. CONSULTANCY SERVICES SCHEME FOR INDUSTRY 
1. Title of subsidy  
  Consultancy Services Scheme for Industry.   
 
2. Period covered by notification
 
  2005 - 2006.    
3. Policy objectives
 
  To assist and encourage local enterprises to upgrade their units  by subsidizing the cost of 
specialized studies carried out by accredited consultants.   
 G/SCM/N/155/EEC/Add.4 
Page 6  
 
  4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tourism.    5. Form of subsidy
 
 
(a) Grant of up to 40 per cent of the cost of the study.  The amount of grant is limited to a 
maximum of £CY 6.000 per company for the duration of the scheme.   
(b) Grant of up to 50 per cent of the cost of th e implementation of the results of the study.  
The amount of grant is limited to a maximum of £CY 2.500 per company for the 
duration of the scheme.   
 6. To whom and how the subsidy is paid
 
  To existing and newly established manufacturing industries.   
 
7. Amount of subsidy
 
  Total payment in: 2005: £CY 64.487.        2006: £CY 138.740.    
8. Duration of subsidy
 
  The scheme was introduced in 1992 and has been terminated on 31 January 2007.   
 9. The trade effects of the subsidy
 
 
 No effects on international trade.     
V. A SCHEME FOR THE SUBSIDISATION OF  STUDIES FOR THE ADOPTION OF 
STANDARDS 
1. Title of subsidy
 
  A Scheme for the subsidization of Studies for the Adoption of Standards.    2. Period covered by notification
 
 
 2005 - 2006.   
3. Policy objectives  
  To assist and encourage local enterprises to adopt standards with the aim of improving the 
quality of produced goods.   
 
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tourism.    G/SCM/N/155/EEC/Add.4 
 Page 7 
 
 
  5. Form of subsidy  
  (a) Grant of up to 40 per cent of the cost of the study.  The amount of grant is limited to a 
maximum of £CY 6.000 per company for the duration of the scheme.   
 
6. To whom and how the subsidy is paid
 
  To existing manufacturing industries.    7. Amount of subsidy
 
 
 Total payment in  2005: £CY 57.404.       2006: £CY 278.561.    8. Duration of subsidy
 
 
 The scheme was introduced in 2000 and has been terminated on 31 January 2007.   
 9. The trade effects of the subsidy
 
  No effects on international trade.    
 
VI. A SCHEME FOR THE SUBSIDISATION OF STUDIES FOR MARKET RESEARCH 
FOR FOREIGN MARKETS 
1. Title of subsidy
 
 
 A scheme for the subsidization of studies fo r market research for foreign markets.   
2. Period covered by notification  
  2005 - 2006.    
3. Policy objectives
 
  To provide incentives to companies to penetrate foreign markets.   
 4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Tourism.    5. Form of subsidy
 
  (a) Grant of up to 30 per cent of the cost of the study carried out for one company.  The 
amount of grant is limited to a maximum of £CY6.000 per company for the duration 
of the scheme.   
 (b) Grant of up to 40 per cent of the cost of the study carried out for more than one 
company.  The amount of grant is limited to a maximum of £CY8.000 per application 
for the duration of the scheme.   
 
6. To whom and how the subsidy is paid
 
  To existing and newly established manufacturing industries.   G/SCM/N/155/EEC/Add.4 
Page 8  
 
  7. Amount of subsidy
 
  Total payment in: 2005:  £CY NIL.       2006:  £CY 1.800.    
8. Duration of subsidy
 
  The scheme was introduced in 2000 and has been terminated on 31 January 2007.   
 9. The trade effects of the subsidy
 
 
 No effects on international trade.     
VII. A SCHEME FOR THE UTILISATION OF THE INTERNET 
1. Title of subsidy
 
  A scheme for the utilization of the Internet.    2. Period covered by notification
 
 
 2005 - 2006.   
 3. Policy objectives
 
  T ο encourage utilization of the Internet by manufacturing industries.   
 
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tourism.    5. Form of subsidy
 
 
 (a) Grant of up to 50 per cent of the cost of development of a web side.  The amount of 
grant is limited to a maximum of £CY 500 per company for the duration of the 
scheme.   
 
6. To whom and how the subsidy is paid  
  To existing manufacturing industries.  7. Amount of subsidy
 
 
 Total payment in: 2005:  £CY 1.250.   
    2006:  £CY NIL.    8. Duration of subsidy
 
 
 The scheme was introduced in 2000 and has been terminated on 31 January 2007.   
 9. The trade effects of the subsidy
 
  No effects on international trade.    G/SCM/N/155/EEC/Add.4 
 Page 9 
 
 
  VIII.  SCHEME FOR TECHNOLOGICAL UPGRADING OF THE MANUFACTURING 
SECTOR 
1. Title of subsidy  
  Grant for technological upgrading of the manufacturing sector.   
 
2. Period covered by notification
  
  2005 - 2006.    
3. Policy objectives
 
  The objective of the scheme is to encourage i nvestments in modern technology with the aim 
of improving both productivity and quality of locally produced goods.    
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Touris m.  Approved by the Council of Ministers 
decision no.44.177 dated 17 April 1996.    5. Form of subsidy
 
 
 The grant as a percentage of the eligible i nvestment ranges from 20 to 30 per cent of the 
investment in new machinery and equipment.  Th e amount of grant is limited to a maximum of 
£C300.000 per applicant for small enterprises and ₤600.000 for medium and large enterprises per 
applicant, for the period 2004-2006.   
 
6. To whom and how the subsidy is paid  
  To existing and newly established manufacturing units.    7. Amount of subsidy
  
 
 Total payment in 2005:  £C2.977.981.    Total payment in 2006:  £C3.910.020.    8. Duration of subsidy
 
 
 The scheme was introduced in 1996.    9. The trade effects of the subsidy
 
  No effects on international trade.   
 G/SCM/N/155/EEC/Add.4 
Page 10  
 
  IX. SUBSIDISATION OF LOAN INTEREST FOR TECHNOLOGICAL UPGRADING OF 
THE MANUFACTURING INDUSTRY 
 THE PROGRAMME WAS TERMINATED ON 31 DECEMBER 1998 BUT PAYMENTS 
FOR OUTSTANDING OBLIGATIONS CARRIED THROUGH UP UNTIL 2006.    
1. Title of subsidy
 
  Subsidisation of loan interest for technological upgrading of the manufacturing industry.    2. Amount of subsidy
 
 
 Total payment in 2005:  C£ 21.319.    Total payment in 2006:  C£ 8.160.     X. SCHEME FOR THE RELOCATION OF SM ALL ENTERPRISES IN APPROVED 
AREAS  
1. Title of subsidy
 
  Program for the relocation of small enterprises to authorized areas.    
2. Period covered by notification
 
  2005 - 2006.    3. Policy objectives
 
 
 The aim of the programme is to encourage already existing small enterprises engaged in 
manufacturing or specific service activities, to move from residential areas to other authorized areas.    4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Touris m.  Approved by the Council of Ministers 
decision no. 54.862 dated 9 January 2002.    5. Form of subsidy
 
 
 The amount, which will be granted if and when the application is approved, is calculated as 
follow:     (a) For the small enterprises a grant of 7,5 per cent on the eligible costs (cost of land and 
buildings) with maximum amount C£15.000.   
 
 (b) For very small-enterprises a grant of 15 per cent on the eligible costs with maximum 
amount of C£10.000.   
 6. To whom and how the subsidy is paid
 
 
 To enterprises established after the 1 July 2002.    G/SCM/N/155/EEC/Add.4 
 Page 11 
 
 
  7. Amount of subsidy  
  Total payment in:   2005:  £C 117.570.   
 2006:  £C 241.373.   
 8. Duration of subsidy
 
  The scheme was introduced in 2002 and expired on 31 December 2006.   
 
9. The trade effects of the subsidy
 
  No effects on international trade.    
 
XI. ASSISTANCE TO MANUFACTURING INDU STRIES TO ESTABLISH POLLUTION 
CONTROL SYSTEMS 
1. Title of Subsidy
 
  Grant scheme for the protection of the environment from industrial pollution.   
 
2. Period covered by notification
 
  2004 - 2006.    
3. Policy Objective
 
  To assist financially existing and newly estab lished manufacturing units in order to comply 
with legal requirements of air and water protection legislation.   
 4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Tourism.(Council of Ministers Decisions No. 38.933 of 18 February 1993, No. 39.633 of 7 July 1993, No. 40.706 of 9 March 1994, No.44.448 of 27 June 1996 No.48.230 of 7 August 1998, No. 56.761 of 7 April 2004 and 61.790 of 30 March 2005). 
 
5. Form of subsidy
 
  The grant as a percentage of the eligible  investment ranges from 30 to 45 per cent of 
investment, depending on the size of the ente rprise, the environmental performance and some 
maximum limits on unit land and building costs.  Poten tial investors are required to contribute at least 
25 per cent of the required capital.  The amount of  grant is limited to a maximum of CY£150.000 per 
applicant for the duration of the scheme.    6. To whom and how the subsidy is paid
 
 
 To existing and newly established manufacturi ng units from the industrial sectors of mining 
and quarrying, manufacturing industry, car maintena nce, packaging, the processing or recycling of 
waste and the washing or dry cleaning of textiles.   The grant is paid after the installation and 
satisfactory operation of the system.    G/SCM/N/155/EEC/Add.4 
Page 12  
 
  7. Amount of subsidy
 
  Total payment in 2005:  £ 41.200.   
Total payment in 2006:  £ 108.175.   
 
8. Duration of Subsidy
 
  The scheme was introduced in 1993 for a five-y ear period and was extended for five more 
years in 1998.  This scheme has b een abolished since 30 April 2003.  It has been replaced by a similar 
scheme compatible with the European Union state aid guidelines, which has accepted applications but 
has not reimbursed any funds during 2004.  The modified scheme was valid until the 
31 December 2006.    9. The trade effects of the subsidy
 
 
 No effects on international trade.   
  
XII. "RESEARCH FOR ENTERPRISES" PROGRAMME 
 Specific Actions:  "Development of New Products and Processes" and "ICT 
Applications in the Development of New Products and Processes" 
 
1. Title of Subsidy
 
  "Research for Enterprises" Pr ogramme / Specific Actions:  "Development of New Products 
and Processes" and "ICT Applications in the De velopment of New Products and Processes".   
 
2. Period Covered by the Notification
 
  Years 2005 - 2006.    3. Policy Objectives
 
 
 To encourage the introduction and developmen t of research activities within enterprises in 
Cyprus.  Research results are expected to su pport the development of new-innovative products, 
services, production and organization methods, which w ill subsequently lead to the enhancement of 
competitiveness levels in the enterprises.    
4. Authority of Subsidy
 
  Research Promotion Foundation.    5. Form of Subsidy
 
 
 Grant.     The percentage of funding was up-to 75 per cent and it was calculated based on the type of 
research activity of the project (Basic Research Activi ties:  75 per cent, Industrial Research Activities:  
60 per cent, Pre-competitive Development Activities:   35 per cent) and based on special provisions 
regarding the size of the beneficiary organization, the existence of collaboration among partners from 
at least two Member States, the collaboration of  enterprises and public research organizations, the 
dissemination of results and the location of the beneficiary.    G/SCM/N/155/EEC/Add.4 
 Page 13 
 
 
  The maximum amount of funding provided is presented in the table below.   
 
Maximum Amount of Funding 
per Project Specific Action 
2005 2006 
"Development of New Products a nd Processes" 85.000 CYP 100.000 CYP 
"ICT Applications in the Development of New 
Products and Processes" 60.000 CYP 80.000 CYP 
 
6. To whom and how the subsidy is paid  
 
 To enterprises, enterprise associations, resea rch organizations and non-profit organizations 
participating in the networks submitting the pro posals (2006 calls excluded Large Enterprises from 
the beneficiaries).    
 Subsidy is provided through three installments :  40 per cent upon the sign of contract, 40 per 
cent half way through the project and 20 per cent at the end of the project.  The 2
nd and 3rd installment 
are made available only upon the approval of the re levant progress reports submitted by the research 
teams.    7. Amount of Subsidy
 
 
Total funding included in 
contracts signed in year Specific Action 
2005 2006 
"Development of New Products and Processes" 475.985 1.086.915 
"ICT Applications in the Development of New 
Products and Processes" 0 261.205 
TOTAL 475.985 CYP 1.348.120 CYP 
 
 8. Duration of Subsidy
 
 
 The scheme was introduced in 2003 and had a duration of 3 years, until 2005.  The scheme 
was re-introduced in 2006 for a one-year period.   
 
9. The trade effects of the subsidy  
  No effects on international trade.   
 
 
XIII.  "EUREKA CYPRUS" PROGRAMME 
 Specific Actions:  "New Projects" and "Ongoing Projects" 
 1. Title of Subsidy
 
  "EUREKA Cyprus" PROGRAMME / Specific Actions:  "New Projects" and "Ongoing Projects".   G/SCM/N/155/EEC/Add.4 
Page 14  
 
  2. Period Covered by the Notification
 
  Years 2005 - 2006.    3. Policy Objectives
 
 
 The EUREKA Organisation is a pan-European network established in 1985 for the promotion 
of market oriented research and development.  Today, 31 countries collaborate with the European 
Commission for the promotion of industrial r esearch and development.  Through the EUREKA 
network industries, research institutes and univers ities develop and exploit technologies, which are 
crucial for the global competitiveness and the improveme nt of the quality of life.  Cyprus participates 
in the EUREKA Organisation as a full member since June 2002.      EUREKA projects are based on a "bottom-up" a pproach, meaning that the participants are 
free to design a specific project form, its objectives and network of implementation, and specify the 
contribution of each partner and the way in which each partner will exploit the research results.   
  Each member-state is responsible for providing financial aid to partne rs participating in a 
EUREKA project coming from the specific country.  The procedures followed by each member-state 
differ in each country.    
 "EUREKA Cyprus" Programme provides funding through the following Specific Actions:   
 
 "New Projects":  Researchers may submit pr oposals for the participation of Cypriot 
organisations / enterprises in new projects that  have not yet received the approval of the 
EUREKA Organisation.   
 "Ongoing Projects":  Researchers submit proposals for the participation of Cypriot 
organisations / enterprises in already approved EUREKA projects.   
 
4. Authority of Subsidy
 
  Research Promotion Foundation (Funding only the Cypriot partners in each project).   
 
5. Form of Subsidy
 
  Grant.    
 The percentage of funding was up-to 75 per cent and it was calculated based on the type of 
research activity of the project (Basic Research Activi ties:  75 per cent, Industrial Research Activities:  
60 per cent, Pre-competitive Development Activitie s:  35per cent) and based on special provisions 
regarding the size of the beneficiary organization, the existence of collaboration among partners from 
at least two Member States, the collaboration of  enterprises and public research organizations, the 
dissemination of results and the location of the bene ficiary.  All projects funded under this programme 
received an additional 15 per cent of funding, prov ided that the total funding did not exceed 75 per 
cent of the project's total budget.    G/SCM/N/155/EEC/Add.4 
 Page 15 
 
 
  The maximum amount of funding provided is presented in the table below.   
 
Maximum Amount of Funding 
per Project Specific Action 
2005 2006 
"New Projects"  100.000 CYP 100.000 CYP 
"Ongoing Projects" 60.000 CYP 60.000 CYP 
 
6. To whom and how the subsidy is paid  
 
 To Cypriot  enterprises, enterprise associations, research organizations and non-profit 
organizations participating in the networks submitting the proposals (2006 calls excluded Large 
Enterprises from the beneficiaries).     The programme does not exclude projects and beneficiaries from the service sector.   
 
 Subsidy is provided through three installments:  40 per cent upon the sign of contract, 40 per 
cent half way through the project and 20 per cent at the end of the project.  The 2
nd and 3rd installment 
are made available only upon the approval of the re levant progress reports submitted by the research 
teams.    
7. Amount of Subsidy
 
 
Total funding included in 
contracts signed in year Specific Action 
2005 2006 
"New Projects"  0 405.038 
"Ongoing Projects" 29.212 116.810 
TOTAL 29.212 CYP 521.848 CYP 
 
 8. Duration of Subsidy
 
  The scheme was introduced in 2003 and had a duration of 3 years, until 2005.  The scheme 
was re-introduced in 2006 for a one-year period.   
 
9. The trade effects of the subsidy
 
  No effects on international trade.   
 
 
XIV.  "FOLLOW-UP" SCHEME 
 Specific Actions:  "RPF Projects" and "General Projects" 
 1. Title of Subsidy
 
  "Follow-up" SCHEME / Specific Actions:  "RPF Projects" and "General Projects".   G/SCM/N/155/EEC/Add.4 
Page 16  
 
  2. Period Covered by the Notification
 
  Years 2005 - 2006.    3. Policy Objectives
 
 
 To encourage the implementation of technolog ical development activities and the exploitation 
of basic and industrial research project results on beha lf of enterprises in Cyprus.  Research results are 
expected to support the development of new-i nnovative or improved produc ts, services, production 
and organization methods, which will subsequently le ad to the enhancement of competitiveness levels 
in the enterprises.   
  The Scheme involves the follo wing two Specific Actions:   
 
 "RPF Projects":  This Specific Action is addressed  to organisations and individuals who have 
successfully completed a research project funded under one of RPF's previous funding 
Programmes.   
 "General Projects":  This Specific Action concerns Cypriot research organisations that have 
participated in and successfully completed rese arch projects funded by an organisation other 
than the RPF and have obtained the rights to u se the research results or part of them.   
 
4. Authority of Subsidy
 
  Research Promotion Foundation.    5. Form of Subsidy
 
 
 Grant.     The percentage of funding was up-to 75 per cent and it was calculated based on the type of 
research activity of the project (Basic Research Activi ties:  75 per cent, Industrial Research Activities:  
60 per cent, Pre-competitive Development Activities:   35 per cent) and based on special provisions 
regarding the size of the beneficiary organization, the existence of collaboration among partners from 
at least two Member States, the collaboration of  enterprises and public research organizations, the 
dissemination of results and the location of the beneficiary.     The maximum amount of funding provided is presented in the table below.   
 
Maximum Amount of Funding 
per Project 
Specific Action 
2005 2006 
"RPF Projects"  60.000 CYP 90.000 CYP 
"General Projects" 60.000 CYP 90.000 CYP 
 
6. To whom and how the subsidy is paid  
  To enterprises, enterprise associations, resea rch organizations and non-profit organizations 
participating in the networks submitting the pro posals (2006 calls excluded Large Enterprises from 
the beneficiaries).   
  The programme does not exclude projects and beneficiaries from the service sector.     G/SCM/N/155/EEC/Add.4 
 Page 17 
 
 
   Subsidy is provided through three installments:  40 per cent upon the sign of contract, 40 per 
cent half way through the project and 20 per cent at the end of the project.  The 2nd and 3rd installment 
are made available only upon the approval of the re levant progress reports submitted by the research 
teams.    
7. Amount of Subsidy
 
 
Total funding included in 
contracts signed in year Specific Action 
2005 2006 
"RPF Projects" 60.000 320.391 
"General Projects" 59.400 248.559 
TOTAL 119.400 CYP 568.950 CYP 
 
 8. Duration of Subsidy
 
 
 The scheme was introduced in 2003 and had a duration of 3 years, until 2005.  The scheme 
was re-introduced in 2006 for a one-year period.   
 
9. The trade effects of the subsidy  
  No effects on international trade.   
 
 
XV. GRANT FOR THE IMPLEMENTATION OF THE ΗΑCCP SYSTEM IN THE FOOD 
AND DRINK INDUSTRY 
1. Title of Subsidy
 
 
 Hazard Analysis, Critical Control Points (HA CCP) System, for the food and drink industry.   
 2. Period covered by Notification
 
  2005 - 2006.   
 
3. Policy Objective
 
  Promotion of the implementation of the HACCP system (preventing measure for the hygienic 
quality of food and drink products).   
 
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Touris m.  Approved by the Council of Ministers 
(Decision No. 59.762 dated 7 April 2004).   
 
5. Form of subsidy
 
  The subsidy as a percentage of the eligible invest ment is 30 per cent of the investment in new 
equipment used for the monitoring (chemical, physical, microbiological control points) of Critical Control Points (C. C. Ps).  The amount of grant is limited to £50.000 per applicant.   
 G/SCM/N/155/EEC/Add.4 
Page 18  
 
  6. To whom and how the subsidy is paid
 
  To existing and newly established manufacturi ng units (food and drink industry) which are 
implementing the HACCP system and are regist ered with the appropriate authorities.   
 
7. Amount of subsidy
 
  Total payment in 2005:  £144.846.    Total payment in 2006:  £292.815.    
8. Duration of subsidy
 
  The scheme was initially introduced in 1999.   The modified scheme was introduced on 
7
 April 2004 and is valid until the 31 December 2006.   
 
9. The trade effects of the subsidy  
  No effects on international trade.     
XVI.  GRANT FOR STRENGTHENING THE LABORATORY INFRASTRUCTURE IN 
CYPRUS 
1. Title of Subsidy
 
  Grant for strengthening of laboratory infrastructure in Cyprus.    
2. Period covered by notification
 
  2005 - 2006.    3. Policy Objective
 
 
 The objective of the scheme is to encourag e investments in laboratory equipment and 
introduction of quality assurance systems with the aim of accreditation of laboratories.    4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Tourism.   
 5. Form of subsidy
 
  The maximum amount that each  applicant/laboratory, covered under this plan, is 
£175,000.00.  This amount covers the following;   
 
i) Laboratory equipment 
  The subsidy for equipment is 20 per cent plus an additional 10 per cent if the company is of a 
small or medium size.  Maximum subsidy fo r the laboratory equipment is £100,000.00.    G/SCM/N/155/EEC/Add.4 
 Page 19 
 
 
  ii) Buildings 
  The subsidy for buildings is 20 per cent of the expenditure plus an additional 10 per cent if 
the company is of a small or medium size, w ith maximum limit of £75.00 per square metre 
and £50,000.00 in total.   
 
iii) Accreditation 
  The maximum subsidy for accreditation is £20,000.00  and is divided into two categories:   
 
1) 50 per cent of the cost for consulting ser vices with maximum limit of £10,000.00.  
2) 50 per cent of the cost for accreditation with maximum limit of £10,000.00.   
 
iv) Feasibility Studies – e.g. techno-economical studies, business plan.    
The maximum subsidy for the techno-economical study is 50 per cent with a maximum limit 
of £5,000.00, which is divided into two sections:   
 
1) 25 per cent of the cost for the completion of the study, with a limit of £2,500.00.   2) 25 per cent of the cost, with a limit of £2, 500.00, which will be given after the start of 
the plant.   
 
 The current subsidy plan is valid until the end of 2006.   
 6. To whom and how the subsidy is paid
 
 
 Beneficiaries are;  existing and ne wly established laboratory units.   
 7. Amount of subsidy
 
  The following amounts have been given under this plan, which expired on the 
31 December 2006:   
 
Total payment in: 2005:  £48,869.   
2006:  £125,166.   
 8. Duration of subsidy
 
 
 The scheme was introduced on the 7 April 2004 and is valid until the 31 December 2006.   
 9. The trade effects of the subsidy
 
  No effects on international trade.   
 
 
XVII.  GRANT FOR STRENGTHENING THE LABORATORY INFRASTRUCTURE IN 
CYPRUS IN THE IN THE FORM OF DEMINIMIS 
1. Title of Subsidy
 
 
 Grant for strengthening of laboratory infrastructure in Cyprus.   G/SCM/N/155/EEC/Add.4 
Page 20  
 
  2. Period covered by notification
 
  2005 - 2006.    3. Policy Objective
 
 
 The objective of the scheme is to encourag e investments in laboratory equipment and 
introduction of quality assurance systems with the aim of accreditation of laboratories.    4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Tourism.    5. Form of subsidy
 
 
 The maximum amount that each applicant/laborator y, covered under this plan, can obtain is 
£57,000.00.  This amount covers the following;     a. Laboratory equipment   The subsidy for equipment is 30 per cent.  Ma ximum subsidy for the laboratory equipment is 
£47,000.00.   
  b. Accreditation   The maximum subsidy for accreditation is £10,000.00  and is divided into two categories:   
 
 i) 50 per cent of the cost for consulting services with maximum limit of 
£5,000.00.   
  ii) 50 per cent of the cost for accredita tion with maximum limit of £5,000.00.   
 6. To whom and how the subsidy is paid
 
 
 Beneficiaries are; existing and ne wly established laboratory units.   
 7. Amount of subsidy
 
 
 The following amounts have been given under this plan, which expired on the 
31 December 2006:   Total payment in: 2005:  £128,858.       2006:  £179,618.    
8. Duration of subsidy
 
  The scheme was introduced on the 7 April 2004 and was valid until June 2004.   
 9. The trade effects of the subsidy
 
 
 No effects on international trade.      G/SCM/N/155/EEC/Add.4 
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  XVIII.  GRANT FOR CONTROL QUALITY ABROAD (LABORATORY TESTING 
ABROAD) 
1. Title of Subsidy  
  Grant for Control of Quality (laboratory testing) abroad.   
 
2. Period covered by notification
 
  2005 - 2006.    
3. Policy Objective
 
  The objective of the scheme is to subsidise co sts for quality control testing abroad, in the 
cases where such testing is not available in Cyprus.  
4. Authority of subsidy
 
 
 Ministry of Commerce, Industry and Tourism.   
 5. Form of subsidy
 
  The grant is 50 per cent of the eligible invest ment on equipment.  The amount of grant is 
limited to £57.000 per applicant/laboratory, over a pe riod of three years.  The current subsidy plan is 
valid until the 30 June 2007.  However for equipmen t purchases related to fish Industry, animal and 
crop farming, the subsidy was valid until the 1 May 2004.    6. To whom and how the subsidy is paid
 
 
 Beneficiaries;  existing and newly established laboratory units.    7. Amount of subsidy
 
  Under this plan no subsidies have been given yet.  The following amounts have been given 
under the previous plan, which commenced on the 20 June 1999, and covered the same group of 
beneficiaries;    
Total payment in: 2005:  Nil.   
2006:  £10,643.   
 
8. Duration of subsidy
 
 
The scheme was introduced on the 7 April 2004 and is valid until the 31 December 2006.   
 9. The trade effects of the subsidy
 
 
 No effects on international trade.    G/SCM/N/155/EEC/Add.4 
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  XIX.  PROGRAM FOR THE CREATION AND OPERATION OF BUSINESS 
INCUBATORS 
1. Title of subsidy
 
 
 Program for the creation and operation of Business Incubators.   
 
2. Period covered by notification  
 
2005 - 2006.   
 
3. Policy objective  
  To create four incubators which will host new inventors in the early stages in order to materialise, develop and trade their innovative ideas and thus create new high technology enterprises.   
 
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tourism (Council of Ministers Decisions No 52.310 of 30 August 2000 and 54.599 of 28 November 2001).    5. Form of subsidy 
 
 
 The following grants were provided:     (a) Grant towards operating expenses and pur chase of equipment (aid covered by the de 
minimis rule).  This grant will not exceed th e ceiling of £57.000 over a period of three 
years.   
  (b) Grant for small and medium enterpris es – Investment aid (15 per cent for small 
companies and 7 per cent for medium companies.   
 6. To whom and how the subsidy is paid
 
 
 To individuals or legal entities or partnerships  engaged with a contract with the Government 
of the Republic of Cyprus after a press release and a selection procedure.  The Ministry of Commerce, Industry and Tourism received ten applications whic h were evaluated using the following criteria:   
 
 a) Experience of applicant in industrial issues and/or creation/operation of business 
incubators and/or similar projects (dur ation of experience, number and size of 
projects).   
  b) Organisational Structure of Private Company/Organisation (type, range of activities, 
size, organisation, composition of firm, image).   
 
 c) Qualifications and experience of the personne l that will be involved in the project.   
  d) Installations of Private Company/Organi sation (building facilities and equipment).   
 
 e) Implementation plan of the project (area of specialisation and the possible benefits for 
the local economy will be considered).   
  f) Financial health/ability to finance the program/project.     G/SCM/N/155/EEC/Add.4 
 Page 23 
 
 
   Only the applications that secured the minimum acceptable score for the above criteria, were 
further evaluated on the basis of the economic criteria and as a result four were selected.  7. Amount of subsidy
 
 
 Total payment in: 2005:  £CY 132.527.   
 Total payment in: 2006:  £CY 19.000.    8. Duration of subsidy
 
 
 Four years on a yearly basis.   
 9. The trade effects of the subsidy
 
  No effects on international trade.   
 
 
XX. PROGRAM FOR THE CREATION OF NEW ENTERPRISES OF HIGH 
TECHNOLOGY AND INNOVATION THROUGH THE INSTITUTION OF BUSINESS INCUBATORS 
1. Title of subsidy
 
 
 Program for the Creation of New Enterprises of High Technology and Innovation through the 
Institution of Business Incubators.    2. Period covered by notification
 
 
 2006 - 2006.    3. Policy objective
 
  To promote the development of high technology enterprises.   
 
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Tourism (Council of Ministers Decisions No 52.310 of 30 August 2000 and 54.599 of 28 November 2001).   
 
5. Form of subsidy
 
  The following grants are provided:     a) Grant towards operating expenses and purch ase of equipment (aid covered by the de 
minimis rule).  This grant will not exceed  the ceiling of £57.000 over a period of 
three years.   
  b) Grant for research and technological deve lopment (for industrial research 50 per cent 
and for pre-competitive development 25 per cent.  These figures can be increased by 
10 per cent for aid given to small and medium enterprises.   
  c) Grant for small and medium enterprises – Investment aid (15 per cent for small 
companies and 7 per cent for medium companies. 
 G/SCM/N/155/EEC/Add.4 
Page 24  
 
   The total amount of grant will not exceed the sum of CY£120.000.   
 6. To whom and how the subsidy is paid
 
  Individuals or small groups of individuals are entitled to participate in the Programme by 
submitting a business plan meeting the selection criteria specified here below.  Applications that are 
submitted by groups of individuals th at include non-Cypriots inventor s shall also be considered.   
 
 Innovation.   
 Technological viability.   
 Marketability of the idea.   
 The possibility to develop the idea within th e budget and time framework described in the 
project proposal.   
 The suitability and adequacy of the team w ith regard to the scientific and business 
requirements of the project.   
 
7. Amount of subsidy
 
  Total payment in 2005:  £CY 799.099.    Total payment in 2006:  £CY 473.000.    
8. Duration of subsidy
 
  Two years on a yearly basis.    9. The trade effects of the subsidy
 
 
 No effects on international trade.     
XXI.  PROMOTION OF HANDICRAFTS 
1. Title of subsidy
 
 
 Promotion of Handicrafts.    2. Period covered by notification
 
 
 2005 - 2006.   
 3. Policy objective
 
  Promotion of Cypriot cultural inheritance through popular art.    
4. Authority of subsidy
 
  Ministry of Commerce, Industry and Touris m. Funds annually approved by the Council of 
Ministers through the Government Budget.    
5. Form of subsidy
 
  Training of local craftsmen and pr omotion of items made by them.    G/SCM/N/155/EEC/Add.4 
 Page 25 
 
 
  6. To whom and how the subsidy is paid  
  Local craftsmen (in the form of services).    7. Amount of subsidy
 
 
 Total payment in 2005:  £527.250.    Total payment in 2006:  £538.460.    8. Duration of subsidy
 
 
 The scheme will be in existence until 31 December  2012.  On that date it will be re-examined 
whether it will continue.    9. The trade effects of the subsidy
 
 
 No effects on international trade.     
__________