Overview of the Structural Funds in Bulgaria in the Programming Period 20072013 Special focus on Env

1
Overview of the Structural Funds in Bulgaria in
the Programming Period 2007-2013 Special focus
on Environmental and Competitiveness Programmes
energy and innovation Projects, stakeholders,
opportunities for SMEs
Mr. Riccardo Honorati Bianchi RTA, Ministry of
Economic Development of Italy
Sofia, 20 November 2007
2
Mr. Riccardo HONORATI BIANCHI Senior Expert -
Ministry of Economic Development of Italy
Department for Development and Cohesion
Policies Resident Twinning Adviser (RTA)
PHARE Twinning Project BG04/IB/EN/05/UEStrengthe
ning the capacity of the Ministry of Environment
and Water to manage Operational Programme
Environment under EU Structural and Cohesion
Funds(September 2006 October 2007) PHARE
Twinning Project BG 06 IB SPP 01 Improvement of
the coordination, management and implementation
mechanisms of EU Structural Instruments in
Bulgaria (Starting December 2007 till March
2009 within Bulgarian Ministry of Finance)
RHB
3
EU Structural Instruments allocations for
Bulgaria 2007-2013
Objective/Fund Budget () Share Convergence 4.
391 mln 65.7 ERDF 3.205 mln 72.9
ESF 1.186 mln 27.1 Cohesion Fund 2.283
mln 34.3 Total 6.674 mln 97.4
European Territorial Cooperation ERDF
179 mln 2.6 TOTAL
6.853 mln 100.0
4
EU Structural Funds 2007-2013 and National
Co-financing
179.227.177 Euro from ERDF are allocated
additionally for cross-border cooperation (Total
EU Structural Funds 6,853 Billion Euro)
RHB
5
SCF INSTITUTIONAL ARRANGEMENTS IN BULGARIA


CERTIFYING AUTHORITY MINISTRY OF FINANCE
6
Certifying Authority (CA) is the competent body
(designed by Member State) for receiving payments
from the EC. The CA is responsible for
certification statement of expenditure and
applications for payment before they are sent to
European Commission.Audit Authority (AA) is a
national, regional or local public body (designed
by Member State), functionally independent of the
Managing and Certifying Authorities, designed for
verifying the effective functioning of the
management and control system Managing
Authority (MA) is an authority, public or
private, national, regional or local body
designed by the Member State to manage an
Operational Programme Intermediate Body (IB)
is any body or public/private service which acts
under the responsability of a Managing or
Certifying Authority or which carries out duties
on behalf of such an authority vis-à-vis
beneficiaries implementing interventionsBenefici
ary is an operator, body or firm, public or
private, responsible for initiating or initiating
and implementing operations (projects). In most
of grant schemes, the final beneficiaries are
enterprises (public or private firms carryng out
an individual project and receiving public aid gt
grant recipient)Final recipient is any person,
body, company, group, which is going to make use
of the final results from the implementation of
the interventions and/or activities under the
Operational Programme
RHB
7
RHB
8
Operational Programme Environment 2007-2013(7
November 2007)

• Managing Authority Ministry of Environment and
  Water, CPED
• Intermediate Body Ministry of Environment and
  Water, EUFED
• Objectives protection and improvement of the
  condition of water resources, of waste management
  and soil protection and preservation of
  biodiversity and nature protection gt supporting
  the development of necessary infrastructure for
  wastewater collection, treatment and discharge
  and restoration of biodiversity
• Budget 1,8 Billion Euro
• Priority axis 1 (WATER) (71,3)
• Activities construction/recons./modernization
  of waste water treatment plants (WWTP), of sewage
  networks, river basins management plans, studies
• Beneficiaries Municipalities, Water Supply and
  Sewerage Companies, River Basin Management
  Directorates

RHB
9
Operational Programme Environment 2007-2013(7
November 2007)

• Priority axis 2 (WASTE) (20,4)
• Activities Completion and construction of
  installations for waste treatment, pre-treatment,
  west recycling centers, recovery of gas emission
  (methane), waste management plans, studies
• Beneficiaries Municipalities, Regional and
  Municipalities associations
• Priority axis 3 (BIODIVERSITY) (5,8)
• Activities Management plans, studies, seminars,
  communication material and network,
  infrastructure, research project
• Beneficiaries Municipalities, Water Supply and
  Sewerage Companies, River Basin Management
  Directorates
• Priority axis 4 (Technical Assistance) (2,5)
• Activities Assessment projects, organization
  MC, data monitoring, studies, information
  system,
• Beneficiaries MA, IB, MC, Project Selection and
  Coordination Committee, Internal Audit
  Directorate within MoEW, working groups,

RHB
10
RHB
11
Operational Programme Competitiveness
2007-2013(27 September 2007)

• Managing Authority Ministry of Economy and
  Energy, EFCD
• Intermediate Body Bulgarian Small and
  Medium-sized Enterprises Promotion Agency, BSMEPA
• Objectives development of a dynamic and
  competitive economy, encouraging innovations and
  increasing the efficiency of enterprises,
  improving the business environment, financial
  resources for developing enterprises,
  strengthening the international market positions
  of the Bulgarian economy
• Budget 1,162 Billion Euro
• Priority axis 1 (21)
• Activity 1 Support for innovation activities in
  enterprises, increase of the share of RD
  personnel in enterprises and protection of
  industrial property rights.
• Activity 2 Improvement of the pro-innovative
  infrastructure technology
• Beneficiaries Bulgarian enterprises with
  potential for development and commercialization
  of innovations, either startups or already
  existing ones public or private research
  organizations NGOs and commercial entities,
  setting up and managing technology transfer
  offices, technology business incubators,

RHB
12
Operational Programme Competitiveness
2007-2013(27 September 2007)

• Priority axis 2 (51)
• Activities 1) Improvement (modernization) of
  the technologies and management in enterprises
  2) Creation of business support infrastructure
  (BSOs) 3) Introduction of energy-saving
  technologies and renewable energy sources used by
  enterprises 4) Promotion of business networking
  and clustering
• Beneficiaries Bulgarian enterprises (productive
  and service sectors) public bodies and
  non-governmental organizations, providing
  business support services and/or operating
  business incubators educational and/or research
  organizations, NGOs, entities included in cluster
  networks.
• Priority axis 3 (17)
• Activities 1) Improvement of access to finance
  for SMEs support for guarantee funds -
  micro-loan funds - venture capital funds
  investing in SMEs 2) support for creating or
  existing business angels networks in Bulgaria.
• Beneficiaries Organizations (public bodies,
  commercial entities or NGOs), operating a
  guarantee fund - operating a micro-loan fund
  Venture capital funds investing in SMEs
  Organizations, managing Business angels network.

RHB
13
Operational Programme Competitiveness
2007-2013(27 September 2007)

• Priority axis 4 (7,5 )
• Activities 1) Promoting the investors
  advantages of Bulgaria 2) Promoting the
  internationalization of Bulgarian enterprises 3)
  improvement of the national quality
  infrastructure (NQI), certification
  infrastructure
• Beneficiaries Invest Bulgaria Agency (IBA)
  Bulgarian Small and Medium-sized Enterprises
  Promotion Agency (BSMEPA) enterprises, public
  and private standardization, certification or
  conformity assurance bodies
• Priority axis 5 (3)
• Activities Support for the management,
  implementation, monitoring and evaluation of the
  Operational Programme
• Beneficiaries Managing Authority and
  Intermediate Body of the OP.

RHB
14
Operational Programme Competitiveness PRESENT
OPPORTUNITIES FOR ENTEPRISES

• 3 OPEN CALLS FOR PROPOSALS (deadline for
  candidature January 2008 !)
• The schemes are focused on innovative
  activities, technology modernization and
  introduction of international standards. Full
  text available in Bulgarian only.
• Support for the creation and development of
  innovative start-up companies (2007BG161PO003/1.1.
  1-01/2007)
• Upgrade of technologies in enterprises
  (2007BG161PO003/2.1.1-01/2007)
• Achieving compliance with internationally
  recognized standards (2007BG161PO003/2.1.2-01/2007
  )
• Beneficiaries Bulgarian Enterprises
• See more information on http//www.eufunds.bg
• See more information on http//www.sme.government
  .bg
• See more information on http//www.opcompetitiven
  ess.bg

RHB
15
Operational Programme Competitiveness PRESENT
OPPORTUNITIES FOR ENTEPRISES

• Support for the creation and development of
  innovative start-up companies
• (2007BG161PO003/1.1.1-01/2007)
• OP Axis/Activity 1.1.1
• Total Budget 7,8 mln BGN (4,4 mln Euro)
• Project Budget (maximum) 391.166 BGN (220.000
  Euro)
• Private co-financing 10
• Deadline for candidature OPEN according to
  available funds
• Where to present candidature/proposal BSMEPA
  (OP Intermediate Body)
• Beneficiaries enterprises (new SMEs established
  no more than 3 years ago in BG),
• Project proposal (indicative activities)
  elaboration of prototypes and technology,
  introduction of new products and new
  process/methodology, conduction of applied
  research activities, elaboration of marketing
  studies, business plans, and strategies,
• Indicative costs costs for HR, costs for
  services (legal,), consultancy, tests,
  measurements, costs for delivery of materials and
  equipements related to the elaboration of the
  prototypes, introduction of new product on the
  market,.

RHB
16
Operational Programme Competitiveness PRESENT
OPPORTUNITIES FOR ENTEPRISES

• Upgrade of technologies in enterprises
• (2007BG161PO003/2.1.1-01/2007)
• OP Axis/Activity 2.1.1
• Total Budget 48,89 mln BGN (25 mln Euro)
• Project Budget (maximum) 2 mln BGN (1 mln Euro)
• Private co-financing 20-55
• Deadline for candidature 22 January 2008 (h.
  16.00)
• Where to present candidature/proposal BSMEPA
  (OP Intermediate Body)
• Beneficiaries SMEs established in Bulgaria
  before 31.12.2003,.
• Project proposal (indicatives activities)
• support for the implementation of investments
  aiming at modernisation of enterprises,
  technological modernization, extending business
  activities, introduction of new products,
  services or processes and consultancy services to
  SMEs.
• Indicative costs purchasing, installation and
  maintenance of new technologies and equipments,
  acquisition of patents, licenses, know-how

RHB
17
Operational Programme Competitiveness PRESENT
OPPORTUNITIES FOR ENTEPRISES

• 3) Achieving compliance with internationally
  recognized standards (2007BG161PO003/2.1.2-01/2007
  )
• OP Axis/Activity 2.1.2
• Total Budget 9,779 mln BGN (5 mln Euro)
• Project Budget (maximum) 100.000 BGN (50.000
  Euro)
• Private co-financing max 50
• Deadline for candidature 15 January 2008 (h.
  16.00)
• Where to present candidature/proposal BSMEPA
  (OP Intermediate Body)
• Beneficiaries enterprises (new SMEs established
  no more than 3 years ago in BG),
• Project proposal (indicative activities)
• introduction of management system achieving
  conformity of products with international
  standards requirements aimed to obtaining
  certificate/mark of conformity (EMAS,)
• Indicative costs consultation service connected
  with the introduction of the management system,
  purchase of equipement and improvement of
  infrastructure of the production facilities

RHB
18
OPPORTUNITIES FOR SMES

• direct
• as direct Beneficiaries, receiving public aid
  directly by the Body responsible for payments
  (for example the Bulgarian enterprises could be
  grant recipient directly)
• indirect
• as contractor/supplier/consultant for work,
  supply or service activities awarded - according
  to the national public procurement rules - by a
  direct Beneficiary ( i.e. Municipality) whose
  project has been already approved by MA or IB
  within the Operational Programme

RHB
19
Public procurement

• When the envisaged contract is for work, supply
  or service activities, the public procurement
  rules/procedures for awarding a certain public
  contract will be compliant with the European
  regulation (Directives 2004/17/EC and 2004/18/EC)
  and national legislation, Public Procurement Act
  (PPA), based on on the principles of free and
  fair competition, publicity and transparency,
  equal treatment and non-discrimination. Criteria
  for assessment of the offers the lowest price or
  most economically favorable offer.
• When a grant scheme is envisaged, award
  procedure will be compliant with Ordinance of the
  Council of Minister N. 121/31.05.2007 (awarding
  of grants under the Operational Programme
  co-financed by the Structural Funds) and OCM N
  55/12.03.2007 (awarding procedure conducted by
  beneficiaries of agreed grant from EU Structural
  Funds, which are not contracting authorities
  according to PPA) the conditions and procedures
  provided for in the decree, shall be applied when
  the ammount of the agreed grant is higher than
  50 of the total sum of the approved project.

RHB
20
General principles in the SFC financing process

• Generally, the EU Funds reimburse eligible
  expenditures already paid by the beneficiaries in
  implementing operations/projects. The
  expenditure paid by beneficiaries shall be
  supported by receipt invoices or accounting
  documents of equivalent probative value.
• All elegible expenditures are listed in calls for
  proposal (tenders) and are established at
  national level (Decree No. 62, March 21st, 2007
  -The adoption of national rules on eligibility of
  expenditure under the OPs co-financed by the
  Structural Funds and the Cohesion Fund) and in
  accordance with the exceptions provided by
  specific EU Regulations for each Fund.
• Expenditure shall be eligible only where
  incurred for operations established by the OP
  Managing Authority, compliant with criteria fixed
  by the Monitoring Committee.
• Elegible period (to obtain reimbursment) the
  expenditures have been incurred / paid by the
  beneficiaries between 1 January 2007 and 31
  December 2015.
• The EU Structural Funds complement but do not
  replace national efforts. They should not replace
  public expenditure by Member State.

RHB
21
Payments shall take the form of

• 1) Pre-financing a single pre-financing amount
  for the 2007-2013 period shall be paid by the
  Commission to the Ministry of Finance (Certifying
  Authority) in different instalments. The maximum
  pre-financing amount that could be paid to Member
  State Bulgaria is
• 7 of total contribution from ERDF/ESF (2 in
  2007, 3 in 2008, 2 in 2009)
• 10.5 of Cohesion Fund (CF) total contribution
  (2,5 in2007, 4 in 2008, 4 in 2009) 
• 2) Interim payments payments shall be made
  following to an application for payment and a
  statement of expenditure certified by the
  Certifying Authority. The interim payment has to
  be related to expenditures already paid by
  beneficiaries in implementing the concerned
  operations (supported by receipted invoices or
  accounting documents).
• 3) Final balance the European Commission shall
  pay the final balance provided that the Member
  State has sent a payment application by 31 March
  2017.
• The same scheme could be applied in the
  relationship between Managing Authority or
  Intermediate Body and Beneficiaries (Financing
  Agreement) of Operational Programme.
• The cumulative total of pre-financing and interim
  payments made shall not exceed 95 of the
  contribution from the Funds to the Operational
  Programme.

RHB
22

• Riccardo Honorati Bianchi
• Resident Twinning Adviser
• mobile (BG) 359 885892405
• mobile (ITA) 39 348 8230692
• r.honoratibianchi_at_gmail.com
• riccardo.honoratibianchi_at_tesoro.it

23
Cohesion Policy

• The Community is to aim at reducing disparities
  between the levels of development of the various
  European regions this action is supported by the
  Structural Funds,.
• Cohesion Policy should contribute to increasing
  growth, competitiveness and employment
• Cohesion Policy is 33 of the EU Budget (308
  Million EUR, at 2004 price).
• CP is splitted about 50-50 between old (15) and
  new (102) Member States. More than ¾ of the
  financial resources envisaged for the Cohesion
  Policy is to cover the least-developed Member
  States and regions (Objective 1 Convergence)

RHB
24
EU Structural Funds

• The Structural Funds are instruments to
  co-finance multi-annual programmes which
  constitute development strategies Reg. (CE) N.
  1083/2006
• The EU Funds providing assistance under the
  Cohesion Policy are
• - European Regional Development Fund (ERDF) -
  Reg. (CE) N. 1080/2006
• The role of the ERDF is to promote investment,
  sustainable development and to help reduce
  regional imbalances across the Union.
• - European Social Fund (ESF) - Reg. (CE) N.
  1081/2006
• The ESF supports policies and priorities aimed
  to achieve progress towards full employment,
  human resource development to improve quality and
  productivity at work and to promote social
  inclusion and cohesion.
• - Cohesion Fund (CF) - Reg. (CE) N. 1084/2006
• The CF contributes to interventions in the
  field of the environment and trans- European
  networks, with emphasis on rail, maritime,
  multi-modal and sustainable urban transport
  connections and energy efficiency and renewable
  energy. It applies to Member States with a GNI
  less than 90 of the Community average.
• The Structural Funds complement but do not
  replace national efforts. They should not replace
  public or other equivalent structural expenditure
  by Member State (Principle of additionality)

RHB
25
Objectives, Structural Funds and instruments
2007-2013
26
NUTS II Regions
All Bulgarian NUTS II regions have a per capita
Gross Domestic Product (GDP) of less than 75
of the Community average. . therefore, all of
Bulgaria is eligible for funding from the
Structural Funds, under the Convergence
objective. (Objective 1)