MOSTAR, February 4, 2025 – Under the first call of the Small Project Fund of the EmBRACE project, implemented by the Croatian Agency for SMEs and Investments (HAMAG-BICRO), co-financing from European funds has been approved for 24 small cross-border cooperation projects involving 66 micro and small entrepreneurs in the program area of Croatia, Bosnia and Herzegovina, and Montenegro. The total value of eligible costs of approved projects amounts to EUR 4,811,916.77, with EUR 4,090,129.24 in grants from the European Union budget under the Cohesion Policy programme Interreg Croatia – Bosnia and Herzegovina – Montenegro 2021–2027. The Small Project Fund is an initiative that not only supports border development but also builds links between communities on both sides of the border and promotes cooperation in various fields such as IT solutions, production, innovation.
Regarding the small cross-border cooperation projects approved for financing, Dr. Sławomir Tokarski, Director responsible for Interreg Programmes at the European Commission stated: “The European funds not only support large infrastructure projects such as motorways or gas pipelines, but European Union’s cohesion policy funds are often invested into small local projects, to support their needs. With the EmBRACE Small Project Fund it turns out, that what would seem a remote EU priority or an abstract EU strategy is in fact in line with the needs of local micro and small entrepreneurs”.
The ceremonial contract award event was opened with a welcome speech by the Minister of Regional Development and EU Funds of the Republic of Croatia, Šime Erlić: “This is the first time that, within the framework of the Interreg cross-border cooperation program Croatia – Bosnia and Herzegovina – Montenegro, we have secured special funds for investment in entrepreneurship. Through the EmBRACE project, we have established a financial line in which the end users are small and medium-sized enterprises from the program area. Thanks to our partners at HAMAG-BICRO, we successfully carried out the first call and today we are awarding 66 contracts worth 4 million euros for 24 new entrepreneurial projects, ranging from landslide monitoring systems to eco-friendly furniture, modular nZEB houses, and solar carport canopies. I am confident that these innovative projects will stimulate integrated, sustainable, and inclusive growth in the cross-border area,” said Minister Erlić, wishing all recipients the best of luck and success in the implementation of their projects.
Šime Erlić, the Minister of Regional Development and EU Funds of the Republic of Croatia and Maida Gorčević, the Minister of European Affairs of Montenegro
On behalf of Montenegro, the Minister of European Affairs of Montenegro, Maida Gorčević, addressed the attendees, stating: “Micro and small enterprises are the pillars of the economies of Croatia, Bosnia and Herzegovina, and Montenegro. They not only play a crucial role in the economic development of our three countries but also employ a large number of people and provide access to various products and services. Therefore, it is important that we encourage their further growth, sustainability, and competitiveness.” Minister Gorčević emphasized that businesses supported through the EmBRACE project will be more competitive in the market, both in the region and beyond. “Additionally, this support mechanism is of great importance for Montenegrin beneficiaries, as it provides them with the opportunity to better prepare for utilizing the European Union’s structural funds,” concluded Minister Gorčević.
Elvira Habota, the Director of the Directorate for European Integration of Bosnia and Herzegovina and Mario Kordić, the Mayor of Mostar
Regarding the significance of the EmBRACE project for Bosnia and Herzegovina, the Director of the Directorate for European Integration of Bosnia and Herzegovina, Elvira Habota, highlighted: “Through these projects, with a maximum individual value of up to 200,000 euros, our entrepreneurs will have the opportunity to exchange experiences, explore new market opportunities, increase the competitiveness of their businesses, work on developing new products and services, implement pilot actions, and create new jobs. In this regard, the projects we are supporting today show that the size of the investment is not decisive when it comes to creating a positive impact on the local communities where they will be implemented.”
Vjeran Vrbanec, Chairman of the Board of Directors of HAMAG-BICRO and Šime Erlić, the Minister of Regional Development and EU Funds of the Republic of Croatia
Vjeran Vrbanec, Chairman of the Board of Directors of HAMAG-BICRO, reflected on the response and quality of the projects submitted for funding under the first call of the Small Project Fund of the EmBRACE project: “We are pleased that, due to the large number of high-quality projects submitted, we increased the allocation from the originally planned 3 million euros to as much as 4.1 million euros, which clearly shows that this project, aimed for the first time at cross-border cooperation among entrepreneurs in Croatia, Bosnia and Herzegovina, and Montenegro, has exceeded our expectations. We are glad that the drive for improving business operations and developing innovative processes and products is encouraging cooperation between these three countries, as well as between entrepreneurs whom we are confident will achieve good business results and contribute to the development of our economies.”
Mario Kordić, Mayor of Mostar
As the host, the Mayor of Mostar, Mario Kordić, greeted the attendees and said: “The City of Mostar strongly supports the development of the economy, recognizing the importance of European funds for strengthening the capacity and competitiveness of our entrepreneurs. We are pleased that the EmBRACE program has provided an opportunity to access funds that will contribute not only to the development of their businesses but also to the overall economic progress of our city and region.”
The contract award ceremony for the first call of the Small Project Fund of the EmBRACE project was attended by the Ambassador of the Republic of Croatia to Bosnia and Herzegovina Ivan Sabolić, the Consul General in Mostar Dr. Marko Babić, the State Secretary from the Ministry of Regional Development and EU Funds of the Republic of Croatia Domagoj Mikulić, the Deputy Chairman of the Board of Directors of HAMAG-BICRO Ante-Janko Bobetko and Member of the Board of Directors of HAMAG-BICRO Želimir Kramarić, as well as Directors of Directorates within the Ministry of Regional Development and European Union Funds Stella Arneri and Ivan Bota.
The total value of the EmBRACE (Enhancing MSEs sustainaBle gRowth And CompEtitiveness) Small Project Fund project is EUR 11,764,706, of which a total of EUR 8,725,324.36 from the European Regional Development Fund and IPA III is available to micro and small entrepreneurs in this programme area for the first time. The list of all approved small projects is published at the link. European funds can co-finance up to 85% of the total project value, with the highest amount of European funds available per small project being 200,000 EUR. Each small project proposal must involve cooperation between at least two (2) and no more than four (4) project partners or end users from different countries within the program area, with one partner required to be based in the European Union.
European funding can cover up to 85% of the total project value, with the maximum amount of European funds available per small project being EUR 200,000. Each small project proposal must involve collaboration between at least two (2) and a maximum of four (4) project partners or end users from different countries within the program area. One partner must be based in an EU member state.
The second call for the Small Project Fund of the EmBRACE project will be announced in mid-2025 on the official HAMAG-BICRO website.
The project is financed under the Interreg VI-A IPA Croatia – Bosnia and Herzegovina – Montenegro 2021-2027 program. More information about the program is available on the official website https://interreg-hr-ba-me.eu/, as well as on the project’s platform at https://cbchb.eu/cbc-cro-bih-mne/embrace/.
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The project is co-financed by ERDF and IPA III funds of the European Union.