This budget line covers costs related to equipment purchased, rented or leased by a beneficiary which is essential for the implementation of the project and for carrying out project activities.
Cost of equipment is only eligible if foreseen in the approved AF. During project implementation, purchase of any equipment not explicitly mentioned in the AF will have to be subject to prior approval by the MA/JS.
In the case of small scale investments implemented in pilot activities, the related expenditure must be included in the budget line e) “equipment expenditure”.
Eligible cost items under this budget line are:
- Office equipment;
- IT hardware and software;
- Furniture and fittings;
- Laboratory equipment;
- Machines and instruments,
- Tools or devices;
- Other specific equipment needed for the project.
Equipment necessary for the project implementation: i.e.: a tool or device used to carry out project activities and necessary for the delivery of the project outputs and, therefore, used for that scope can be classified within the following two categories:
- Equipment for general office use as computers, office furniture, printers, cameras, etc. upon condition that it is for the exclusive use for the project and it can be demonstrated. When the exclusive use for project purposes and activities cannot be demonstrated, such costs are deemed to be covered under the office and administration budget line.
Costs of office equipment already in possession of the beneficiary organisation and used to carry out project activities are not eligible under this budget line, as such costs are already covered under the budget line office and administration.
Equipment for general office use shall be reimbursed by the Programme, based on the depreciation rates in compliance with the national rules and calculated only for the time period between the purchase of the equipment and the end of the project.
The full cost of equipment is only eligible when the following conditions are satisfied:
- Equipment item is exclusively used for the project implementation;
- The depreciation period is shorter than the time lap between the purchase of the equipment and the end of the project;
- Equipment item is not depreciable (e.g. low value asset) according to the national legislation of the concerned partner.
- Equipment considered as thematic and functional to the implementation of pilot actions (small scale investments and demonstration projects). It can be a tool or a device that remains in use by the partnership after the completion of the project. Thematic and functional equipment are reimbursed in full.
Cost items accounted under the equipment budget line cannot be reimbursed under any other budget line.
All the equipment items must be clearly indicated in the AF. Projects are required to describe the nature, quantity and cost of each equipment item foreseen to be purchased, as well as indicate the link with the deliverables and outputs foreseen in the work plan. In case of depreciation, it should be also illustrated how the costs for the project were calculated.
The selection of the suppliers for the purchasing, rental and/or leasing of any equipment item shall comply with the relevant EU and national public procurement law in force, and in case of the IPA partners, with the PRAG rules.
Irrespective if under category (i) or (ii), the equipment cannot be sold (i.e.: change of owner) for at least 5 years after the project end date.