Rural Economic Development Zone (REDZ) pilot scheme allocated €2m via local authorities for rural development
The aim is to support projects at sub-county, or Rural Economic Development Zone (REDZ) level.
The pilot initiative will not provide 100% financial support for proposed projects, but local authorities can assign funding from their own resources, or work with private stakeholders, to match REDZ funding.
If the pilot initiative is successful, a more extensive REDZ initiative within the LEADER programme could take place in early 2016.
An open call for proposals was launched this week, from which a number of pilot projects will be chosen.
Proposals will be accepted from individual local authorities (or multiple local authorities where a rural economic development zone crosses the current administrative boundaries).
Up to 75% of the funding required is available through the pilot initiative, with the balance to come from cash and in-kind contributions from sources such as local authorities, chambers of commerce, local business, fund raising etc. The maximum grant envisaged is €250,000. There is a minimum cash requirement of 15%.
In-kind contributions can include premises, machinery, sites, skilled and unskilled labour, etc.
The final decision on allocation of REDZ funding will rest with Environment Minister Alan Kelly and Minister of State for Rural Affairs Ann Phelan.
For example, a project costing €400,000 could attract a pilot fund grant of €250,000. The applicant group must then provide €150,000 in cash and in-kind contributions. The minimum cash requirement is €60,000 (15% of the total cost).
The biggest grants will go to flagship rural economic development zones, those for which a town with a population of 10,000 plus is the main economic driver for the area.
There are also medium and small REDZs, respectively based around towns of between 5,000 and 10,000, and less than 5,000.
Further details can be found on the www.environ.ie website under rural development.
