COHESION FUND MONITORING COMMITTEE

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COHESION FUNDMONITORING COMMITTEE
Jurijs Spiridonovs Ministry of Environment Head
of Project Development Department
11 April 2008
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Allocation of CF Funding
to cover eligible costs
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Status of Disbursements to Contractors

• as on 25/09/2006
• DISBURSEMENTS MADE (eligible expenditure)
• 103,853,770.17 EUR
• VAT 18
• EUR 9,637,367.31
• TOTAL
• EUR 113,491,137.48

• From 01/11/2007 to 31/03/2008
• DISBURSEMENTS MADE (eligible expenditure)
• EUR 69,980,014.47
• VAT 18
• EUR 12,596,402.60
• TOTAL
• EUR 82,576,417.08

As on 01/11/2007 DISBURSEMENTS MADE (eligible
expenditure) 212,237,520.43 EUR VAT 18 EUR
28,690,647.15 TOTAL EUR 240,928,167.58

• as on 25/04/2006
• DISBURSEMENTS MADE (eligible expenditure)
• 88,765,403.82 EUR
• VAT 18
• EUR 7,410,397.56
• TOTAL
• EUR 96,175,801.38

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Disbursements to Contractors in 2003 - 2010, M
EUR (total expenditure)
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Disbursements to Contractors in 2008, M EUR
(total expenditure as on 31/03/2008)
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Disbursements claimed and received from EC by 31
March 2008
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Status of Agreements
EUR 485 M (total costs)
EUR 504 M (total costs)
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Increase in number of agreements signed, 2002
2008
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Physical progress Status of agreements as on
31/03/2008
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COMPLETED PROJECTS (I)

• Project implementation completed, final report
  and final expenditure statement submitted to the
  European Commission
• Solid waste management in Ventspils region,
  No.2000/LV/16/P/PE/004
• Solid waste management in Ziemelvidzeme region,
  Latvia, No.2001/LV/16/P/PE/006.
• Solid waste management in Ziemelvidzeme region,
  stage II, No.2006/LV/16/C/PE/001.
• Development of water supply and sewage services
  in Ventspils, No.2000/LV/16/P/PE/003
• Solid waste management in Liepaja district,
  No.2001/LV/16/P/PE/005,
• Development of water supply and sewage services
  in Jelgava, No.2000/LV/16/P/PE/002

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COMPLETED PROJECTS (II)

• Project implementation completed, winding-up
  report and final declaration of expenditure
  submitted to the Ministry of Finance
• Jurmala water services development,
  No.2001/LV/16/P/PE/008
• Technical assistance for environment projects in
  Latvia, No.2000/LV/16/P/PA/001
• Development of water supply and sewage services
  in Riga, No 2000/LV/16/P/PE/001
• Solid waste management in Austrumlatgale region,
  No.2002/LV/16/P/PE/010
• Solid waste management in Dienvidlatgale region,
  No.2002/LV/16/P/PE/011

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AUDITS AND CHECKS

• In December 2007 there were 15 audits carried out
  in the Ministry of Environment, including system
  audits, procurement and payment audits, sample
  checks of expenditure and checks of declarations
  of final project expenditure conducted by the
  MoEn Internal Audit Department, MoF Financial
  Control Department, State Audit Office, KNAB and
  audit companies.
• From 01/07/2007 to 31/12/2007 the Ministry of
  Environment conducted 18 on-the-spot checks

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MAIN PUBLICITY EVENTS (I)
In 2007 it is already the fourth time that the
Ministry of Environment presented the annual
award Abols 2007 (Apple 2007) to municipalities
for their contribution in implementation of
projects in the area of environmental
infrastructure and environmental protection. In
2007 there has been a higher activity of the
municipalities and interest to participate in
this competition - twice as much applications
were received than the year before, in total 55.
Prizes were awarded in categories of cities,
towns, agglomerated municipalities and rural
municipalities. Prize award ceremony was held on
22 November 2007.
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MAIN PUBLICITY EVENTS (II)

• On a regular basis, the Ministry of Environment
  informs the society about main events in the
  framework of Cohesion Fund projects, incl.
  signing of works, services and supplies
  agreements, commissioning of construction objects
  and other important events.
• On 05/03/2008 MoEs Guidelines for implementation
  of publicity activities to the Cohesion Fund
  implementation bodies and final beneficiaries
  were updated, incl. samples for informative and
  publicity plan, memorial planks, press releases.

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TOPICAL ISSUES AND RISKS

• There is a risk that implementation of the
  project Development of Ventspils district heating
  system will not be completed by December of 2009.
  The same risk exists for the project Development
  of water services in Riga, stage III, however in
  this project 5 procurement agreements have been
  signed and construction is in progress.
• The Cabinet of Ministers on 12 February 2008
  adopted the Decision No.9 to allocate state
  budget funding to cover increase in costs for the
  projects Development of water services in the
  river basins of Eastern Latvia, Solid waste
  management in Piejura region and Maliena region
  solid waste management, and on 19 February 2008 -
  the decision No 11 to allocate state budget funds
  for the projects Development of water services
  in Daugavpils, stage II, Development of water
  services in Olaine and Jaunolaine (approx. EUR 30
  M in total), as well as supported in principle
  allocation of state budget funds to the project
  Development of water services in Ventspils, stage
  II.
• Issues within the competence of municipalities
  (ownership rights, approvals from responsible
  institutions, etc.) significantly affect the
  implementation progress of projects, e.g.,
  Development of water services in Riga, stage III.
• There is a problem of regulatory instruments
  (incl. guidelines), recommendations and
  instructions in the competent authorities are
  developed after the specific actions within the
  projects have taken place (e.g., in case of EC
  audit opinion on the project Solid waste
  management in Dienvidlatgale region), or during
  project implementation, when it is almost
  impossible to make corrective actions according
  to the new requirements.
• Problems related to attraction of qualified
  personnel for work in state and municipal
  institutions affect the capacity of institutions
  involved in the management of EU Funds.

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SOLUTIONS TO PROBLEMS

• To decrease the impact of increase in
  construction costs on projects being implemented
  the Ministry of Environment in cooperation with
  final beneficiaries carry out modifications to
  technical specifications of procurement tenders,
  reducing scope of work that does not affect the
  technological process and project objectives.
• To increase the competition and reduce project
  costs the Ministry of Environment together with
  final beneficiaries by elaborating procurement
  strategy for the project, chooses the optimum
  amount to be procured (dividing into lots or
  joining into one procurement). At the same time
  comparison is made between the results of the
  tender and the planned agreement value (incl. by
  inviting competent experts), in case of necessity
  launching tenders repeatedly.
• The risks identified in regard to delays in
  particular projects are thoroughly analysed and
  in cooperation with final beneficiaries solutions
  are found for averting and reducing these risks
  and problems.
• For projects in which increase in costs has taken
  place, from now on during drafting of the
  winding-up report a repeated cost-benefit
  analysis will be carried out.

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