Prime - Programa de Incentivos à Modernização da Economia

MEASURE FACT-SHEET

Support to projects contributing to the improvement of the energy environment of enterprises, and namely those related to the provision of services of a public nature by the concessionaires of transport and supply of electric power and natural gas, as well as those submitted by other enterprises operating under public services licensees related to the transport and supply of natural gas.

Goals

To promote the diversification of energy supply sources;
To ensure energy supply under efficient and safe conditions;
To reduce oil dependency;
To minimise the environmental impacts resulting from energy production and consumption.

Type of projects

1 - Natural gas supply system:

Building of a re-gasification terminal on the Portuguese coast;
Building of underground storage facilities to ensure supply safety;
Extending of the surface gas pipeline, namely through the new connection to the European network and connections to the re-gasification terminal and underground storage;
Construction of branch lines for the supply of local distribution networks and big consumers;
Construction and surface expansion of licensed supply networks;
Construction of supply networks in new geographical areas, to be operated by concessionaires or licensees;
Adaptation of the gas supply network for supplying natural gas to the city of Lisbon;
Setting-up of autonomous natural gas re-gasification units;
Purchasing of containers and ancillary equipment for LNG road transport;
Construction of pressure reducing stations and all other necessary components for natural gas penetration and for the safe and reliable operation of the main facilities.

2 – Electric power transport and supply networks:

Construction of connecting branch lines between electric power production centres – namely from renewable sources and co-generation – and the existing supply network;
Upgrading and extension of power stations and transforming substations;
Setting-up of systems of remote control and management;
Construction of lines allowing the optimisation of network efficiency and the improvement of quality in services to consumers.

Beneficiaries

All concessionaire enterprises of transport and supply of electric power and gas, as well as other enterprises operating those services under public services licensees.

Activity sectors

Energy.

Eligibility requirements

For the Promoter

To be a publicly or privately-owned firm holding a concession or license related to natural gas or electric power transportation and supply;
To be legally established and registered, according to the legislation in force;
* To have an organised accounting system, according to the National Accounting System (POC);
To have fulfilled all obligations related to taxes and social security, and towards the paying agency responsible for the incentive;
To have a balanced economic and financial situation, under the terms of the relevant concession contract.

For the Project

To fulfil the legal conditions required for carrying out the activity, namely having been granted the necessary licenses or having been approved according to the applicable legislation;
To have started no earlier than six month before the submission of the application, provided that this does not imply an implementation higher than 30% of the investment, except for prospective studies started no earlier than 12 month before the submission of the application;
To start up within a maximum time limit of six month after the date of approval of the application;
To include a technical engineering project matching the objectives to be achieved;
To include an economic feasibility study that presents the corresponding detailed financing plan;
To have a maximum life span of two years, except in special, duly justified cases depending on a ministerial authorisation;
The implementation period shall start on the date of the first invoice imputed to the project and end on the date of the last invoice imputed to the project.

Eligible expenses

Construction or purchasing of buildings and any other construction works, including expropriations, land property purchase or land servitudes' constitution;
Purchase, transport and assembly of materials and equipment;
Purchase of specific software, directly applicable to the project;
Sales and marketing expenses made during the investment stage;
Intangible expenses, namely of studies, projects, start-up tests and trials, as well as costs of project implementation during the setting-up stage;
Costs of certified public accountants intervention.

Non-eligible expenses

Purchase of second-hand goods (except those mentioned in the regulating Order in Council);
Purchase of administrative buildings or re-housing;
Marketing related to the re-conversion of consumer equipment;
Structural costs and operating expenses of the beneficiaries;
Interests on loans and other financial charges;
Purchase of motor vehicles and other transport equipment.

Incentive

Non-refundable incentive. The incentive rate applying to the eligible expenses is 40%.

Surcharges

15% - for projects located in municipalities covered by PRASD (Programme for the Recovery of Depressed Areas and Sectors).

Application Submission

Applications to this Measure are now suspended (Ministerial Order no. 9681/2006, of 3 May and Ministerial Order no. 5058, of 6 March).

Entities in charge

Co-ordinating Bodies

IAPMEI - Institute for Support to Small and Medium-Size Enterprises and Investment

DGGE - Directorate-General of Geology and Energy

Geographical Area

Mainland Portugal and the Autonomous Regions.

This information does not dispense with consulting the applicable legislation.

Updated on November 2006.