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ACTIVITY REPORT

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Four PHARE Program Implementing Agencies (IAs) at: Ministry of Finance (MF) ... cooperation with the European Anti-fraud Office (OLAF), SANS, Supreme cassation ... – PowerPoint PPT presentation

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Title: ACTIVITY REPORT


1
  • ACTIVITY REPORT
  • on EU Funds absorption
  • May 2008 May 2009

Meglena Plugtschieva Deputy Prime Minister
2
PHARE Program May 2008
  • Total budget of PHARE Program 2000-2006 1480
    mln EUR breakdown
  • EU funding Financing Memorandum 2000-2006 1152
    mln EUR
  • National co-financing 327 mln EUR
  • Four PHARE Program Implementing Agencies (IAs)
    at Ministry of Finance (MF), Ministry of
    Regional Development and Public Works (MRDPW),
    Ministry of Economy and Energy (MEE), Ministry of
    Labor and Social Policy (MLSP).

3
PHARE Program May 2008
  • In March 2008 the EC suspended payments to the
    PHARE Implementing Agency at the MF the CFCU,
    and to the PHARE Implementing Agency at the
    MRDPW.
  • The suspension of payments affected the CFCU (MF)
    36.6 mln EUR and the MRDPW 14.1 mln EUR.
  • The total budget of the two IAs under 2005
    Financing Agreements amounts to 102 mln EUR and
    under 2006 Financing Agreements, to 0.7 mln EUR.
  • Real risk that the accreditation of the IAs at
    the MF and MRDPW might be withdrawn.
  • Problems were identified in
  • Public procurement procedures
  • Project management
  • Administrative capacity
  • Backup and storage of documents
  • The system of timely reporting suspicions of
    fraud and irregularities, etc.

4
PHARE Program May 2008
  • As of May 2008 of the total budget of the active
    Financing Memoranda (2001-2006) amounting to 966
    mln EUR for the 4 PHARE IAs, 553 mln EUR were
    contracted and 296 mln EUR were paid.
  • To be contracted till 30.11.2008
  • under Financing Agreements (2005 and 2006) - 311
    mln EUR.
  • Outstanding payments
  • on the active Financing Memoranda and Financing
    Agreements (2001-2006) - 567 mln EUR till end
    2010.
  • When the accreditation was withdrawn in July
    2008 323 mln EUR were frozen, the breakdown
    being
  • 197 mln EUR for contracts made in conditions
    subject to control by the EC Delegation in
    Bulgaria and
  • 126 mln EUR for contracts made after 29.06.2007.

5
PHARE Program May 2009
  • Actions taken following the EC July 2008 report
    and decision to take away the accreditation of
    the CFCU and the IA at the MRDPW
  • The EC noted the positive steps taken by the
    Bulgarian institutions to improve the programme
    management systems in line of transparency,
    competency and firm will to overcome problems
    from the past.
  • Further to the European Commissions
    recommendations, measures were taken to
    strengthen the management and control systems,
    i.e. Senior Programme Officers were appointed in
    every beneficiary institution to take charge of
    on-going projects, and Operating Agreements were
    signed between the Senior Programme Officers and
    the Programme Authorizing Officers (PAOs).
  • The Bulgarian administration implemented and
    reported to the EC its Action Plan with specific
    measures corresponding to the ones outlined in
    Appendix No. 1 to the Decision.
  • Additional monitoring controls were introduced.
    Measures, addressed at the management levels,
    aiming to ensure the functioning of the systems
    in accordance with good financial management
    principles.
  • The Instructions of the National Authorizing
    Officer (NAO) to all PAOs were updated to
    regulate the entry of information in the Early
    Warning System.
  • The NAOs instructions are being followed and
    procedures for reporting irregularities are
    published on the web-page of the respective
    Ministry and are included in the tender dossier.

5
6
PHARE Program May 2009
  • Strengthened administrative capacity,
  • ?he role and functions of the NAO was amended
    expanding the NAOs powers in order to guarantee
    and strengthen the NAOs leading role in the
    process of managing the PHARE funds.
  • Personnel changes were made within the management
    of the CFCU and the PHARE IA at the MRDPW.
  • The programme implementation is regularly
    reported to the Council of Ministers.
  • Day-to-day monitoring of problem projects
    according to a project implementation schedule.
  • The NAOs supervisory role in the control
    architecture was stepped up through amendments to
    several normative acts. The regulatory framework
    was amended with respect to the human resource
    management policy in the PHARE sector.

6
7
PHARE Program May 2009
  • Implementation of the coordinated and uniform
    policy on irregularities has been ensured by
    protection of the persons who report
    irregularities. Immediate investigation of such
    cases is encouraged whereas the use of public
    means for personal benefit is precluded.
  • Priority is given to sensitive issues of great
    public significance such as public procurement
    transparency, the approval of a Law on the
    Detection and Prevention of Conflicts of
    Interest, administrative capacity strengthening,
    improving the process of irregularity treatment
    and rejection of contractors involved in cases
    of irregularities under contracts co-financed by
    EU funds.
  • Management and control systems have been
    strengthened on the basis of best practices to
    find a lasting solution in the prevention of
    established irregularities and the achievement of
    convincing results with guaranteed stability and
    irrevocability in the long run.

7
8
PHARE Program May 2009
  • The other two IAs at the MLSP and the MEE, which
    had only contracted a total of 5 under the 2006
    FA until June 2008, have reported contracting
    almost 90 of the funds.
  • As at May 2008, out of the total budget of Euro
    966 million under the FM for the four PHARE IAs,
    Euro 553 million had been contracted and Euro 296
    million had been disbursed.
  • As at May 2009 , Euro 1008 million have been
    contracted and Euro 796 million have been
    disbursed.
  • To have the payments suspension measure lifted,
    the Bulgarian administration prepared and sent
    the EC detailed information, an analysis and
    assessment of the legality of contracts, signed
    prior to the Extended Decentralized System. The
    EC is expected to react to the Payment Requests
    sent in by the MF for contracts signed prior to
    the EDIS.
  • The Bulgarian administration has implemented the
    recommended corrective measures and has thus
    proven the firmly declared will of the Bulgarian
    government to ensure transparency, control and
    reliability of the programme management systems.
    The Management and Control Systems have been
    changed and improved.
  • The National Fund has sent in 5 Payment Requests
    to the EC in connection with contracts signed
    prior to the EDIS
  • The national co-financing component for payments
    under PHARE-FA 2006 has been ensured by Council
    of Ministers Decree (CMD) 243/2008 and CMD
    89/2009.

8
9
SAPARD Program May 2008
  • Total budget 591 mln. EUR (AFA 2000-2006).
  • Completion of the Program scheduled for end
    2008.
  • Bulgaria asked for an extension of the period of
    payments end 2009 however, the Commission did
    not reply.
  • There was a real risk to lose some of the AFA
    financing for 2005 and 2006.
  • As of May 2008 just 23 mln. EUR were paid out of
    the AFA 2005 and 2006 total budget amounting to
    210 mln. EUR.

10
SAPARD Program May 2008
  • Suspension of payments for 3 measures and one
    sub-measure
  • Measure 1 investment in farms (270 projects,
    cost 96 mln BGN)
  • Measure 2 improvement of the processing and
    marketing of agricultural and fish products (47
    projects, cost 77.5 mln BGN)
  • Measure 3 promotion and diversification of
    economic activities, multiple activities and
    alternative income (302 projects, cost 86.7 mln
    BGN)
  • Measure 5 (sub-measure) wholesale markets (4
    projects, cost 12 mln BGN).
  • Prior to the suspension of payments for the
    measures, 623 contracts had been signed worth
    272.2 mln BGN (139 mln EUR).

11
SAPARD PROGRAMME May 2009
  • Status of the SAPARD Programme as of May 2009
  • The programme management and control systems have
    been improved in line with the EC recommendations
    of June 2008
  • The effective period of the 2006 Annual Financial
    Agreement has been extended until the end of 2009
    in order to make all payments to the programme
    beneficiaries
  • Payments under the four suspended measures of the
    SAPARD programme have been resumed. As of May
    2009, the total amount of the European subsidy
    due for approved projects under such measures
    amounts to approximately Euro 76 million (148,6
    million levs).

11
12
SAPARD PROGRAMME May 2009
  • Based on the positive results from the Action
    Plan implementation and the assurance of the
    audit company Ernst Young, payments to end
    beneficiaries under the suspended 3 measures and
    1 sub-measure were resumed in the middle of
    October 2008.
  • From the programme start (2000) to 15 May 2009, a
    total of 3,509 projects were approved under
    SAPARD with a subsidy of BGN 1,375,931,680. Of
    these, full payments were made under 2,218
    projects with a subsidy of BGN 757,387,340.
  • Council of Ministers Decree No. 74 of 30 March
    2009 on Payments out of the Agriculture State
    Fund under Contracts with End Beneficiaries to
    the SAPARD Programme allowed the Agriculture
    State Fund to expend BGN 100 million.
  • After the meetings in the EC in May some tasks
    remain to be finalized

12
13
ISPA Program May 2008
  • ISPA period of implementation from 2000 to 2010.
  • Total budget 1,603 mln EUR (EU financing 880
    mln EUR, national co-financing 723 mln EUR).
  • The ISPA Program is implemented in two sectors
    Transport and Environment.
  • In May 2008 the Monitoring Committee on Cohesion
    Fund assistance (Regulation 1164/94) identified
    14 projects at risk of which 3 in the Transport
    sector and 11 in the Environment sector.

14
ISPA Program Transport sector May 2008.
  • The total number of FMs for CF/ISPA Transport
    sector is 11.
  • The total sum of the FM is 909 mln EUR.
  • The ISPA Program Monitoring Committee identified
    3 projects at risk in the Transport sector
  • - Construction of a new cross-border combined
    road/railway bridge at Vidin-Calafat on the
    Danube
  • - Laying a second track and electrification of
    the Plovdiv-Svilengrad railway
  • - Construction of Lyulin Motorway Sofia
    Bypass Daskalovo Road Junction.

15
ISPA Program Environment sector May 2008
  • The total number of FMs for CF/ISPA Environment
    sector is 25, the breakdown being
  • Water sector 19
  • Waste sector 2
  • Protection of the environment 1 (flue gas
    desulphurization plant at TPP Maritsa East 2)
  • Technical assistance 3
  • The FM sum total is 639 mln EUR.
  • In June 2008 a total of 12 risk projects were
    identified (7 in the Water sector, 1 in the
    Protection of the Environment sector, 1 in the
    Waste sector and 2 Technical Assistance
    projects).
  • As of May 2008 the amount of the non-contracted
    funds is 196 mln. EURO

16
ISPA Program - Transport Sector
  • Status of the ISPA Programme, Transport Sector as
    at May 2009
  • Contracted Euro 793 mln Paid Euro 309 mln
    (39).
  • Completed Projects which have to a very high
    degree cached up with the delay in
    implementation
  • Sofia Airport Reconstruction, Modernization and
    Expansion
  • Transit Roads ??? Lots 3, 4, 8 and 9.
  • On-going Projects
  • Construction of a New Cross-Border Combined
    Road/Railway Bridge over the Danube at
    Vidin-Calafat. Doubling and Electrification of
    the Plovdiv Svilengrad Railway Connection
  • Construction of Lyulin Motorway Sofia Bypass
    Daskalovo Road Junction
  • Technical Assistance for the Modernization of the
    Railway Lines along Pan-European Transport
    Corridors (TEN-T)
  • Technical Assistance for the Reconstruction of
    the Plovdiv-Burgas and Mezdra-Gorna Oryahovitsa
    Railway Lines in Bulgaria
  • Technical Assistance for the Modernization of the
    Vidin-Sofia Railway Connection
  • Technical Assistance for Preparation of Road
    Projects along Pan-European Transport Corridors
    (TEN-T) located in Bulgaria.
  • Substantial progress in the organization and
    implementation of the projects is registered

16
17
ISPA Program Transport Sector May 2009
  • THE EC RELEASED EURO 115 MLN UNDER THE ISPA
    PROGRAMME ON 12 MAY 2009
  • THE EC REACHED THIS DECISION FURTHER TO THE
    FOLLOWING ACTIONS TAKEN BY BULGARIA
  • Amendments to the existing legislation (Roads
    Act, Detection and Prevention of Conflicts of
    Interests Act, Public Procurement Act, Rules and
    Regulations of the National Road Infrastructure
    Agency etc.).
  • Changes in the existing administrative structures
    (The National Road Infrastructure Fund was
    transformed into the National Road Infrastructure
    Agency (NRIA) a new Executive Director and
    Supervisory Board were appointed NRIF was
    transformed into an intermediate body reporting
    to the Managing Authority at the Ministry of
    Transport. Agreements signed between the Managing
    Authority at the MT and the Intermediate Body at
    NRIF)
  • The administrative capacity of the National Road
    Infrastructure Agency was enhanced by the
    appointment of new staff members and the conduct
    of training.
  • External audits were made, which confirmed the
    absence of conflicts of interest and the
    effective functioning of the management and
    control systems in this field.
  • An advisor from the Federal Ministry of
    Transport, Construction and Urban Development of
    the Federal Republic of Germany was appointed in
    support of the management of the National Road
    Infrastructure Agency.

17
18
ISPA Program Transport Sector May 2009
  • On 12 May 2009, the European Commission
    officially announced the release of Euro 115 mln.
    under the ISPA programme for Bulgaria.
  • Pending
  • Visit of EC DG Regional Policy Director General
    Mr. Dirk Ahner, 26-28 May 2009.
  • Visit of Commissioner for Regional Policy, Ms.
    Danuta Hübner, 17-19 June 2009.

18
19
ISPA PROGRAMME Environment Sector May 2009
  • Waste water treatment installations were built
    and put into operation in Pazardjik and
    Blagoevgrad.
  • All tender procedures for the selection of
    contractors under approved projects have been
    conducted, and the final tender procedure for the
    selection of a contractor for the Development of
    the Sofia Water Supply and Sewerage Grid, Tender
    2 has been announced.
  • As of May 2008 there are non-contracted funds of
    196 mln. EURO
  • CMD 267/03.11.2008 approved the allocation of
    earmarked additional national co-financing for
    the successful completion of ISPA projects in the
    Environment Sector in 2008 to the amount of BGN
    11.49 mln, and another BGN 45.28 mln for 2009 and
    2010.

19
20
SCHENGEN FACILITY May 2008
  • National Indicative Program (2007-2009) cost
    161 mln EUR.
  • Deadline for contracting 31.12.2009.
  • As of May 2008 3 contracts, total cost 44,000
    EUR.
  • Shortage of capacity to prepare and hold
    tendering procedures for the Schengen Facility as
    the CFCU at the MF had to complete in parallel
    the contracting under PHARE 2005 and PHARE 2006.
  • Late start of the tendering procedures scheduled
    for 2007 and 2008.

21
SCHENGEN FACILITY May 2009 .
  • Contracts have been signed to the amount of over
    Euro 7 mln. These are 7 procurement contracts
    (among which for the delivery of two 200-ton
    ships, 6 river-going vessels, 200 vehicles) and 6
    contracts for the hiring of independent experts.
  • A tender organization timetable is observed. So
    far 25 selection procedures have been completed
    to the amount of approximately Euro 101 mln.
  • The Central Financing and Contracts Unit at the
    Ministry of Finance received documentation from
    the beneficiaries for tender procedures to the
    amount of Euro 90 million. Projects for over Euro
    37 mln more are ready to submit to the CFCU.
  • In 2009, public procurement and contracting
    procedures are expected to take place in the
    fields of aerial surveillance of the borders (3
    helicopters), special police operation equipment,
    automobile equipment, renovation of the Border
    Police Directorate General buildings and
    construction of a specialized hostel for illegal
    immigrants near the border with the Republic of
    Turkey, means of communication, technical
    equipment and software for joining the Schengen
    Information System and Visa Information System,
    raising the qualifications of employees in
    implementing the Schengen legislation.

21
22
OPERATIONAL PROGRAMMES AS OF MAY 2008
  • Overall delay of OPs.
  • Contracts concluded from 1.01.2007 till May 2008
    amount to BGN 93,132,149 (EUR 47,617,712).
  • Problems with the administrative capacity
  • UMIS tendering procedure has failed
  • Need to strengthen the capacity of the Audit
    Authority (Audit of EU Funds Directorate, MoF)
  • Speeding up the acquisition of positive
    compliance assessment of management and control
    systems.
  • Completion of UMIS.
  • Insufficient control
  • Complex and clumsy procedures
  • Insufficient transparency
  • Lack of public feedback
  • The preparation of starting FLAG Fund was
    blocked

23
OPERATIONAL PROGRAMMES May 2009
  • Contracting under all OPs is expedited
  • The contracts concluded as of May 2009 amount to
  • BGN 2,435,726,077 (EUR 1,245,366,968)
  • The Administrative capacity of the units is
    strengthened
  • The Audit Authoritys capacity is restructured
    and strengthened
  • Work on the conformity assessment is expedited
  • A UMIS is in operation
  • Procedures are streamlined and the time frames
    for conducting and decision-making are shortened
  • Transparency, communication and relation with the
    public are enhanced

24
OPERATIONAL PROGRAMMES May 2009
  • Control mechanisms are improved
  • A number of legislative amendments are made to
    the primary and secondary legislation
  • The interaction and cooperation with the European
    Anti-fraud Office (OLAF), SANS, Supreme cassation
    Prosecutors Office, State Receivables Agency,
    Agency Public Financial Control Inspectorate is
    improved

25
Operational Programmes Implementation (2007-
2013) May 2009
26
RURAL DEVELOPMENT PROGRAMME (RDP) AS OF MAY 2008
  • RDP (2007-2013) was approved on 19 February
    2008 by European Commission Decision No. 755.
  • As of May 2008 8 measures out of 22 in total
    have been launched.
  • The RDP budget for 2007 and 2008 amounts to EUR
    722,713,481 which have to be paid by the end
    2010.
  • The amount paid as of May 2009 is EUR 56 million.

27
RURAL DEVELOPMENT PROGRAMME (RDP) - M?? 2009
  • 20 ordinances for implementation of the RDP, out
    of 22, were published. The remaining two measures
    are scheduled to be launched by the end of 2009.
    20 measure have been launched.
  • Regulatory amendments were made for streamlining
    of procedures of applying for, approval, and
    funding of projects reduced number of required
    documents, ex officio provision of some of them,
    and shorter time frames. These amendments will
    come into effect from 1 June 2009.
  • With Decree No. 53 of 4 March 2009 of the
    Council of Ministers the reimbursement of VAT
    expenses of public beneficiaries under RDP
    projects was approved for 2009.
  • With regard to the measures related to
    compensatory payments for underprivileged
    regions, a total of 67756 applications were
    accepted for the 2007 and 2008 campaigns, and
    1462 applications under the measure of
    agro-ecological payments.
  • As of 11 May 2009, a total of BGN 345.618 million
    were paid to the farmers, which is 24. 8 of the
    budget (BGN 1,414 million) which is to be paid
    out by the end of 2010.
  • Interface with UMIS is under construction

28
RURAL DEVELOPMENT PROGRAMME (RDP) - M?? 2009
Data not included in Total
29
Funds paid under the RDP - M?? 2009
30
DIRECT PAYMENTS, MARKET MECHANISMS AND TECHNICAL
INSPECTORATE OF THE PAYING AGENCY MAY 2008
  • Direct payments are received under an upward
    scheme expressed in of the level applied to
    such payments in EU15
  • 25 - 2007 40 - 2010 70 - 2013
    100 - 2016
  • 30 - 2008 50 - 2011 80 - 2014
  • 35 - 2009 60 - 2012 90 - 2015
  • Payment per hectare EUR 53.1 for 2007 and EUR
    65.38 for 2008
  • As of May 2008 73,792 producers received
    direct payments to the amount of BGN 321,287
    million (EUR 164,271 million)
  • The on the spot checks performed by the
    Technical Inspectorate are on track.
  • The schemes under the market mechanisms are
    functioning.
  • The 2008 Single Area Payment Scheme (direct
    payments) budget amounts to EUR 240 million from
    the European Agricultural Guarantee Fund. The
    national co-financing budget is EUR 140 million
    of which EUR 75 from RDP and EUR 75 million from
    the national budget.
  • The Paying Agency is in a probation period.

31
DIRECT PAYMENTS, MARKET MECHANISMS AND TECHNICAL
INSPECTORATE OF THE PAYING AGENCY MAY 2009
  • Under the Single Area Payment Scheme, the
    National Co-Financing Scheme and the measures for
    the disadvantaged regions the total budget
    amounts to 428 714 055 EUR. By 30 April 2009 the
    resources paid under this budget for the campaign
    2008 amount to 668 345 722.51 BGN (341 719 528
    EUR)
  • The sums paid under SAPS for the period from 1
    December 2008 to 30 April 2009 under the campaign
    2008 in EUR amount to 199 266 055.00 (389 730
    527.66 BGN) or 85,4 of the annual budget, and
    those under NCFS - 129 371 146.00 EUR (253 027
    968.04 BGN) or 91,84 of the 2008 budget

32
OPERATIONAL PROGRAMME FISHERIES SECTOR
DEVELOPMENT
  • OP Fisheries Sector Development (2007-2013)
    provides funding for measures for adaptation of
    the Bulgarian fishing fleet, developing of
    aquacultures, inland fishing, processing and
    marketing of fishery and aquaculture products,
    sustainable development of fisheries areas,
    technical assistance.
  • Total budget EUR 107 million (EU funding EUR
    80 million national co-financing EUR 27
    million)
  • Managing Authority National Executive Agency of
    Fisheries and Aquaculture (NAFA)
  • Intermediate Body State Fund Agriculture as a
    Paying Agency

33
OPERATIONAL PROGRAMME FISHERIES SECTOR
DEVELOPMENT May 2008
  • The Programme was approved on 14.12.2007
  • Managing Authority appointed
  • Communication Strategy prepared
  • No launched procedures.
  • No legislation (ordinances) on the terms and
    procedure for extending grants under the
    measures.
  • No project selection criteria endorsed.
  • National Agency of Fisheries and Aquaculture
    units not adequately staffed.

34
OPERATIONAL PROGRAMME FISHERIES SECTOR
DEVELOPMENT ??? 2009
  • On 6 December 2008, the call of project proposals
    was launched under
  • Measure 1.3 Investments on Board Fishing
    Vessels and Selectivity in the amount of EUR 1,2
    million, of which EUR 0,9 million from ?FF.
  • Measure 2.1 Productive Investment in Aquaculture
    in the amount of EUR 6.3 million, of which EUR
    4.725 million from EFF
  • 9 project proposals under measure 2.1 were
    submitted
  • Ordinances on the implementation of 7 measures
    under this OP were published, the remaining ones
    are in the process of approval by the MAF
  • Activities started on Priority Axis Technical
    Assistance for a total value of EUR 5.334
    million, of which EUR 4 million from the EFF
  • On 8 May 2009, the European Commission approved
    the Audit Strategy for OP Fisheries Sector
    Development
  • A new website www.oprsr.government.bg is in
    operation. There is an effective electronic data
    exchange agreement with UMIS and IACS
  • The communication plan and the publicity
    campaign are actively implemented

35
OPERATIONAL PROGRAMME "TRANSPORT"
GENERAL INFORMATION
  • OP Transport (2007-2013) finances large-scale
    infrastructure projects
  • Total budget EUR 2,003 million, of which EUR
    1,624 million EU funds and EUR 379 million
    national co-financing.
  • Managing authority Programme and Project
    Coordination Directorate at the Ministry of
    Transport.
  • Beneficiaries National Railway Infrastructure
    Company, National Road Infrastructure Agency,
    Executive Agency for Exploration and Maintenance
    of the Danube River Maritime Administration
    Executive Agency, Metropoliten EAD

36
OPERATIONAL PROGRAMME TRANSPORT
CURRENT STATUS
  • As of May 2008
  • A contract was concluded for a grant at total
    value of BGN 7,027,200 (EUR 3,592,950)
  • As of May 2009
  • 19 contracts were concluded for grants totalling
    approx. BGN 601,112,943 (EUR 307,344,168)
  • 5 operating agreements were concluded for the
    preparation, selection, management,
    implementation, monitoring and control of
    projects/operations funded under OPT with all
    beneficiaries under the programme

37
OPERATIONAL PROGRAMME TRANSPORT
  • Contracts were concluded between Metropoliten
    EAD, Metro Trace" Consortium and Dogus Insaat ve
    Ticaret A.S. for the construction of the Sofia
    Metro extension along the route Nadezhda
    Interchange Central Railway Station St.
    Nedelya Square - NDK Cherni Vrah blvd.
  • A tender procedure for selection of a contractor
    for design and construction of the railway
    section Svilengrad Turkish Border is underway.
    The deadline for the evaluation committee to
    complete the evaluation is 22 May 2009
  • The National Road Infrastructure Agency, as the
    beneficiary under Priority Axis 2 of OP
    Transport, was completely restructured and its
    administrative capacity was strengthened
  • The National Road Infrastructure Agency concluded
    an operating agreement with the Managing
    Authority at the Ministry of Transport, thus
    ensuring better control over the implementation
    of the projects

38
OPERATIONAL PROGRAMME ENVIRONMENT
GENERAL INFORMATION
  • OP Environment (2007-2013) provides the funding
    for the preparation and construction of
    infrastructure projects for treatment of wastes,
    drinking and waste water projects for
    preservation and restoration of biodiversity.
  • Total budget EUR 1,800 million or BGN 3,520
    million (EU financing EUR 1,466 million
    national co-financing EUR 334 million)
  • Managing Authority Cohesion Policy for
    Environment Directorate at the MOEW
  • Intermediate Body EU Funds for Environment
    Directorate at the MOEW
  • Beneficiaries municipalities water companies
    basin directorates regional associations
    regional MOEW structures and the State Forestry
    Agency administrations managing NATURA 2000
    NGOs

39
OPERATIONAL PROGRAMME ENVIRONMENT
PROGRESS OF IMPLEMENTATION OF OP "ENVIRONMENT" AS
OF MAY 2008
  • As of May 2008, 3 procedures were opened for
    providing grants under OPE
  • 2 procedures under Priority 1 - Waters a
    procedure for Technical Assistance for
    Preparation of Investment Projects and a
    procedure for Improvement and Development of
    Drinking and Waste Water Infrastructure
  • 1 procedure under Priority 2 Wastes
    Management a procedure for Technical Assistance
    for Preparation of Investment Projects

40
OPERATIONAL PROGRAMME ENVIRONMENT
PROGRESS OF IMPLEMENTATION OF OP "ENVIRONMENT"
(MAY 2008 - MAY 2009) I
  • As of May 2009, a total of 252 contracts were
    concluded under the programme for a total value
    of BGN 734,671,429 (EUR 375,631,537).
  • Priority Axis 1 - Waters
  • Under a procedure of Technical Assistance for
    Preparation of Investment Projects 157 contracts
    were signed at a total value of approx. BGN 154
    million
  • Under a procedure of Improvement and Development
    of Drinking and Waste Water Infrastructure 32
    projects were approved at a total value of
    approx. BGN 586 million, and 29 contracts were
    concluded at a total value of approx. BGN 536
    million. Two major projects of the Vratsa and
    Gabrovo municipalities were approved at a total
    value of BGN 260 million
  • 2 new procedures were announced for selection of
    investment projects for agglomeration communities
    with more than 10,000 equivalent inhabitants and
    agglomeration communities with 2,000 to 10,000
    equivalent inhabitants. The procedures are at the
    stage of evaluation of the proposals submitted
  • Under a direct provision procedure for
    Development of River Basin Management Plans a
    decision was issued for a grant of BGN 36
    million.

41
OPERATIONAL PROGRAMME ENVIRONMENT
PROGRESS OF IMPLEMENTATION OF OP "ENVIRONMENT"
(MAY 2008 - MAY 2009) II
  • Priority Axis 2 Wastes Management
  • Under a procedure of Technical Assistance for
    Preparation of Investment Projects 35 contracts
    were concluded at a total value of approx. BGN 25
    million.
  • At an extraordinary session on 24 March 2009, the
    OPE Monitoring Committee approved by a consensus
    a concept of direct provision of funding by a
    grant under this priority axis.
  • Priority Axis 3 Preservation and Restoration of
    Biodiversity 24 projects approved for 18 BGN
    million.
  • Priority Axis 4 Technical Assistance
  • 30 orders were issued under a direct provision
    procedure at a total value of BGN 8,056 million.

42
OPERATIONAL PROGRAMME ENVIRONMENT
Legislative Amendments
  • MOEW has prepared and submitted to the Parliament
    a proposal for amendment of the Environmental
    Protection Act aiming at establishing a legal
    ground for repeated procedures for preparation of
    environmental impact assessment of road projects
  • A National position for the water sector is
    prepared
  • Amendments to the existing legislation in
    relation to the water supply sector reform were
    submitted to the Parliament and their adoption
    at second reading is pending.

43
OPERATIONAL PROGRAMME COMPETITIVENESS
GENERAL INFORMATION
  • OP Competitiveness (2007-2013) provides funding
    in support of innovations, assists Bulgarian
    companies, improves the conditions for the
    development of business, provides funding
    opportunities, strengthens the position of the
    Bulgarian economy in the international market.
  • Total budget EUR 1,162 million, of which EU
    funding of EUR 988 million and national
    co-financing of EUR 174 million.
  • Managing Authority
  • European Funds for Competitiveness
    Directorate at the MEE
  • Intermediate Body
  • Executive Agency for Encouragement of SMEs.
  • Beneficiaries small and medium enterprises,
    large companies, universities, scientific and
    research centres, NGOs, etc.

44
OPERATIONAL PROGRAMME COMPETITIVENESS
CURRENT STATUS
  • As of May 2008, a serious delay was reported in
    the implementation of the Operational Programme,
    as a total of 0 projects at a value of BGN 0 were
    approved. Significant delay was also reported in
    the organisation of the evaluation committees.
  • As of May 2009, a total of 341 projects were
    approved, and 327 contracts at a total value of
    BGN 246,303,865.33 were concluded, and
  • Three procedures are in the process of
    implementation
  • 2007BG161PO003/1.1.1-01/2007 Support for the
    Creation and Development of Innovative Start-up
    Companies
  • 2007BG161PO003/2.1.1-01/2007 Upgrade of
    Technologies in Enterprises
  • 2007BG161PO003/2.1.2-01/2007 Achieving
    Compliance with Internationally Recognized
    Standards
  • In May 2009, four evaluation committees completed
    their work on the following procedures
  • BG161PO003-1.1.02 Support for Commercialization
    of Innovative Products, Processes and Services
  • BG161PO003-2.1.03 Achieving Compliance with
    Internationally Recognized Standards
  • BG161PO003-2.1.04 Upgrade of Technologies in
    SMEs
  • BG161PO003-2.1.05 Upgrade of Technologies in
    Large Enterprises
  • The approval of the evaluation reports by the
    Managing Authority is pending.

45
OPERATIONAL PROGRAMME COMPETITIVENESS
THE JEREMIE INITIATIVE
  • Operations under Priority axis 3 of the
    Operational Programme will be implemented by
    establishing a Holding Fund to be managed by the
    European Investment Fund (EIF) in accordance with
    the JEREMIE Initiative. The Holding Fund will be
    registered in Bulgaria as a Special Purpose
    Vehicle (SPV). The budget allocated under this
    priority axis for the programme period amounts to
    BGN 391,166,000.
  • The Framework and the Funding Agreements under
    the JEREMIE Initiative should be signed on 27 May
    2009 in Sofia. The ratification of the agreements
    by the Parliament of the Republic of Bulgaria is
    pending in due time.

46
OPERATIONAL PROGRAMME HUMAN RESOURCES
GENERAL INFORMATION
  • OPHuman Resources (2007-2013) is aimed at
    improving the quality of life of people in
    Bulgaria through improving the human capital,
    achieving high levels of employment, increasing
    productivity, access to high quality education
    and life-long learning, and strengthening of
    social inclusion.
  • Total budget EUR 1,213,869,575
  • Managing Authority
  • General Directorate European Funds,
    International Programmes and Projects at the
    Ministry of Labour and Social Policy
  • Intermediate Bodies
  • Ministry of Education and Science,
    Employment Agency, Social Assistance Agency
  • Beneficiaries municipalities, NGOs, government
    institutions, social enterprises, representatives
    of various communities, educational, training and
    research institutions, scientific organisations,
    employers, industry and sectoral organisations,
    etc.

47
OPERATIONAL PROGRAMME HUMAN RESOURCES
  • As of May 2008, 6 procedures were opened for
    provision of grants at a total value of BGN
    87,718,976 (EUR 44,850,000)
  • As of May 2009, 39 procedures were opened for
    provision of grants at a total value of approx.
    BGN 660 million (EUR 337.4 million)
  • The Monitoring Committee of the Operational
    Programme has approved selection criteria for 57
    operations in the amount of BGN 1.314 billion.
    (EUR 0.672 million)

48
OPERATIONAL PROGRAMME HUMAN RESOURCES
  • As of May 2009, a total of 797 contracts
    amounting to BGN 254.4 million (EUR 130.07
    million) are concluded.
  • Funding is provided for the following
  • 84 municipal projects
  • 180 NGO projects
  • 203 projects in high schools
  • 37 projects in higher education establishments
  • 6 projects in extra-curricular educational
    establishments
  • 14 projects in institutes of the Bulgarian
    Academy of Sciences
  • 16 projects in government institutions
  • 255 projects in companies of various sectors and
    industries.
  • In 2008 only, about 100,000 people benefited from
    various activities funded under the programme.
  • The health programme for 76 mln EURO has started
    and will be implemented by the Ministry of
    Health

49

OPERATIONAL PROGRAMME REGIONAL DEVELOPMENT
2007-2013
GENERAL INFORMATION
  • OP Regional Development (2007-2013) provides
    funding for infrastructure projects for
    integrated urban development regional and local
    infrastructure, including health infrastructure
    sustainable development of tourism regional and
    local cooperation networks.
  • Total budget EUR 2,601million, of which EU
    funding - EUR 1.361 billion and national
    co-financing EUR 240 million
  • Managing Authority General Directorate
    Programming of Regional Development at the
    MRDPW, which has 6 divisions in the planning
    regions
  • Beneficiaries municipalities, municipal
    companies, associations of municipalities,
    locally represented NGOs, individual
    beneficiaries

50

OPERATIONAL PROGRAMME REGIONAL DEVELOPMENT
2007-2013
  • As of May 2008
  • There were no concluded contracts
  • As of May 2009
  • There are 236 concluded contracts amounting to
  • BGN 472,483,184 (EUR 241,576,816)
  • Paid out funds are
  • BGN 13,792,558.60 (EUR 7,052 023)

51
OPERATIONAL PROGRAMME REGIONAL DEVELOPMENT
2007-2013
  • CONTRACTS CONCLUDED WITH BENEFICIARIES BY
    PLANNING REGION AND MUNICIPALITY - ?AY 2009

52
FORECAST OF PAYMENTS IN 2009 UNDER OP REGIONAL
DEVELOPMENT BY PRIORITY AXIS AND A REPORT ON THE
I-ST QUARTER OF 2009
OPERATIONAL PROGRAMME REGIONAL DEVELOPMENT
2007-2013
53
OPERATION OF FLAG
OPERATIONAL PROGRAMME REGIONAL DEVELOPMENT
2007-2013
APPROVED APPLICATIONS FOR LOANS FROM THE FLAG
FUND FOR IMPLEMENTATION OF PROJECTS UNDER OPRD
May 2009
54
OPERATION OF FLAG (2)
OPERATIONAL PROGRAMME REGIONAL DEVELOPMENT
2007-2013
APPROVED APPLICATIONS FOR LOANS FROM THE FLAG
FUND FOR IMPLEMENTATION OF PROJECTS UNDER OPRD
May 2009
55
OPERATIONAL PROGRAMME ADMINISTRATIVE CAPACITY
GENERAL INFORMATION
OP Administrative Capacity provides funding in
support of good governance, development of human
resources in the government administration
structures, the judiciary, and the civil society,
improving the quality of administrative services
and development of electronic government. Total
budget (2007-2013) EUR 181 million, of which EU
funding EUR 154 million and national
co-financing EUR 27 million. Beneficiaries
public administration, the judiciary, civil
society. Managing Authority Projects and
Programmes Management Directorate, MSAAR.
???? ??????????
56
OPERATIONAL PROGRAMME ADMINISTRATIVE CAPACITY

CURRENT STATUS
  • As of May 2009
  • A total of 25 procedures opened
  • 202 approved projects for BGN 108,266,404 (EUR
    55,355,734)
  • 181 beneficiaries under the programme
  • 197 concluded contracts for BGN 105,088,673 (EUR
    53,730,985)
  • 591 applications for payment considered
  • BGN 43,149,647 (EUR 22,062,064) actually
    disbursed funds, or 100 of the 2007 funds and
    46.31 of the 2008 funds

56
57
Operational Programme Technical Assistance
  • Subject The programme provides funding for
    strengthening the capacity of the EU funds
    management structures on national level
    setting-up of UMIS enhancing awareness of the EU
    cohesion policy.
  • Total budget EUR 56,8 million, of which EU funds
    amounting to EUR 48,3 million, and national
    co-financing amounting to EUR 8,5 million.
  • Managing Authority Department Operational
    Programme Technical Assistance in the MoF
    Management of EU Funds Directorate.
  • Beneficiaries specific beneficiaries the
    entities under the MoF and the entities under the
    Council of Ministers Administration

58
Operational Programme Technical Assistance
CURRENT STATUS
  • As of May 2008, 11 contracts were concluded at a
    total value of BGN 13,302,020.
  • As of May 2009, 21 contracts were concluded at a
    total value of BGN 25,914,612, as payments amount
    to a total of BGN 2,381,735.
  • In the third quarter of 2009 the approval of a
    project currently under development for
    setting-up of information centres for publicity
    of the EU cohesion policy is forthcoming.

59
AUDIT AUTHORITY
  • To strengthen the independence of the Audit
    Authority, Council of Ministers Decree No. 305
    of 11 December 2008 transformed the Audit of EU
    Funds Directorate into an Audit of EU Funds
    Executive Agency reporting to the Minister of
    Finance, as of 1 January 2009
  • Council of Ministers Decree No. 346 of 30
    December 2008 approved the Rules and Regulations
    of the Audit of EU Funds Executive Agency. The
    Rules and Regulations envisage the setting up of
    an Audit Committee with the Agency to act as the
    Agencys specialized support body for monitoring
    and advisory purposes. The Audit Committee was
    appointed by an order of the Minister of Finance
    of 30 January 2009 and is made up of three
    members, one of whom is the chair
  • To strengthen the capacity of the Audit Authority
    and to improve its functions, in January 2009
    contracts were signed with the international
    audit companies Pricewaterhouse Coopers,
    Deloitte, Ernst Young and KPMG. The contracts
    were designed to support the audit approach and
    methods to conduct qualification and
    requalification training for the audit authority
    staff in accordance with the European and
    national legislation and with the international
    standards and best practices to guarantee the
    hiring of international experts on the joint
    audit teams for audits of the Structural and
    Cohesion Funds organized jointly with the Audit
    Authority

?????????? ???????? ???????? ????, ?????????? ?
??????????
59
60
AUDIT AUTHORITY
  • The revised audit strategies of the Operational
    Programmes were sent to the European Commission
    in April 2009 via the SFC 2007 system.
  • The process of updating the description of
    management and control systems, of the conformity
    assessment reports and of the opinions under the
    seven OPs is still under way. The updated
    documents will be presented to the EC by the end
    of May and beginning of June 2009

?????????? ???????? ???????? ????, ?????????? ?
??????????
60
61
Unified Management Information System
  • The UMIS functional capabilities, which comply
    with the requirements of Regulation 1083/2006 and
    Regulation 1828/2006, were developed and put into
    operation. They include the following modules
  • Registration
  • Evaluation of project proposals
  • Contracts
  • Project management
  • Financial module, the component Payment Request
    and Financial Report (on the contract level)
  • Inspections and Management of Irregularities,
    the component On-the Spot Inspection and
    Suspected Irregularities
  • Monitoring.
  • The Council of Ministers adopted Decree
    322/6.1.2009, which provides the conditions,
    process and mechanism of operation of the UMIS in
    Bulgaria
  • On 21 January 2009 a Help Desk was opened, which
    gives assistance on work with the UMIS

?????????? ???????? ???????? ????, ?????????? ?
??????????
61
62
Unified Management Information System
  • Tests were successfully completed and on 6 April
    2009, the interface between the Unified
    Management Information System (for monitoring and
    control of funds from the EU Structural and
    Cohesion Funds) and the SAP/R3 system was put in
    operation
  • In accordance with Art. 10, par. 1 of the
    Council of Ministers Decree No. 322 of 19
    December 2008 on the Conditions, Procedures and
    Mechanism of IMUS Operation, an Agreement on the
    electronic exchange of data between the UMIS, the
    Integrated Administration and Control System
    (IACS) under the Rural Development Program and
    the Project Monitoring System under the Fisheries
    OP (Axter Popeye) was drafted and signed by the
    Minister of Finance and the Minister of
    Agriculture and Foods
  • The authorized personnel at the managing
    authorities and the intermediate bodies is still
    feeding information into the UMIS. As at 22 April
    2009 there were 1,701 contracts, 6,494
    applicants, 1,869 beneficiaries and 117 grant
    procedures registered in the system.

?????????? ???????? ???????? ????, ?????????? ?
??????????
62
63
LOTAR
  • An Excel-based system was developed in
    cooperation with the EC for the elaboration of
    financial forecasts about the absorption of funds
    from the Structural instruments
  • An Operational Programme Financial Implementation
    Forecast Tracking Mechanism was developed and put
    in place
  • The LOTAR implementation has given results which
    reflect progress on the OP financial
    implementation
  •  The results achieved and the reported progress
    have been forwarded to the EC.

?????????? ???????? ???????? ????, ?????????? ?
??????????
63
64
REGULATORY FRAMEWORK (1)
  • Law on Amendment and Supplementation of the
    Public Procurement Act, passed by the National
    Assembly on 16 October 2008.
  • Takes into account the Action Plan as per Annex
    1 to the EC Decision (? 2008) 3937/2 of 23 July
    2008 concerning the measures with respect to
    financial control structures and procedures
  • Creates registers of persons, who by an
    effective court ruling have been found guilty of
    default on contract under an OP creates a
    central data-base of applicants or participants
    in tender procedures in accordance with Art. 95
    of the EU Council Regulation (?C, Euratom) No.
    1605 of 25 June 2002.
  • Law on the Prevention and Detection of Conflicts
    of Interest, passed by the National Assembly on
    16 October 2008.
  • Main objectives to guarantee the government and
    public interest to prevent the actions of
    persons in a managing position being influenced
    by their personal interests or by the interests
    of other related persons to create conditions
    for the prevention and curbing of corruption
  • Limitations and bans on participation in OP
    procedures or in procedures related to the
    provision of EU funds.

64
65
REGULATORY FRAMEWORK (2)
  • Law on Amendment and Supplementation of the
    State Financial Inspectorate Act, passed by the
    National Assembly in November 2008
  • Stepping up control over the absorption of
    funds, provided out of the EU budget
  • Improving communication and cooperation with EU
    institutions and authorities.
  • Creating a regime and procedures for the
    application of the respective provisions of
    Council Regulation ? 2185/96 (Euratom, ?C) of 11
    November 1996 concerning control and inspections
    on site, performed by EC controllers.
  • Ordinance on preliminary control over public
    procurement procedures, financed in full or in
    part out of European funds, adopted by the
    Council of Ministers on 23 April 2009.
  • Preliminary control main objectives to ensure
    the legality of public procurement, financed out
    of European funds.

65
66
REGUALTORY FRAMEWORK (3)
  • CM Decree No. 197 of 5 August 2008 on the
    provision of material incentives to employees,
    which perform functions related to the
    utilization of structural funds and of funding
    under the EU pre-accession programmes
  • CM Decree No. 224 of 10 September 2008 on the
    creation of a Council for Coordination and
    Operational Monitoring of EU Funding
  • CM Decision No. 319 of 7 May 2009 approving the
    Report on the Implementation of the JASPERS
    (Joint Assistance to Support Projects in European
    Regions) Action Plan in the Republic of Bulgaria
    in 2008 and the Implementation of the JASPERS
    Action Plan in the Republic of Bulgaria in 2009.

66
67
AFCOS AND COMMISSION FOR PREVENTING AND
COUNTERING CORRUPTION
  • Transferring AFCOS from the Ministry of Interior
    to the Council of Ministers
  • Amendments to Decree of the Council of Ministers
    N 18/ 2003 adopted by the Council of Ministers on
    April 30th 2009
  • New members of AFCOS
  • New mechanism for reporting irregularities to
    OLAF in force as of October 1st 2009
  • Executing administrative control and checks by
    AFCOS Directorate in force as of October 1st
    2009
  • The AFCOS Directorate will be the national
    liaison body in compliance with Regulation /EC,
    Euroatom/ N 1302/2008 of the Commission, dated
    December 17th 2008 referring to the central data
    base on elimination.
  • With Decree 145/12.03.2009 of the Council of
    Ministers the Deputy Prime Minister Mrs. M.
    Plugtschieva became the head of the Commission
    for Preventing and Countering Corruption.
  • OLAF missions since June 2008.

68
VI. Transparency and public awareness May 2008
May 2009
  • 295 Information days dedicated to the
    Operational Programs
  • 62 discussions with beneficiaries
  • 6 public awareness campaigns with more than 17
    thousand participants
  • 29 press conferences on the Operational programs
  • 42 workshops
  • 6 polls

69
Transparency and public awareness May 2008
May 2009
  • Public Council to the Deputy Prime Minister
    consisting of employers, trade unions, media and
    NGOs discusses on a monthly basis the most
    important topics in the EU funds management
    agenda
  • Open door days at all Operational programs
    facilitated the access to the state experts
  • Mobile teams explained the measures within the
    framework of the Rural Development Program
    regions
  • Hot line to the Deputy Prime Minister answers all
    questions, signals and complaints related to the
    use of EU funds
  • New web sites of the Operational Programs provide
    more information and transparency

70
Transparency and publicit awareness May 2008
May 2009
  • Public presentations of the communication plans
    of the Operational Programs
  • Consultations office on the OPs opened in the
    National Association of the Municipalities in
    Bulgaria
  • Public awareness campaigns together with the
    BNTv, BNR, Darik Radio, BTA presenting the good
    pre-accession programs practices
  • Regular press conferences of the Deputy Prime
    Minister reporting on the current problems and
    progress achieved
  • Monthly information bulletin presenting Bulgaria
    in the EU
  • A national campaign is being launched to make
    the public aware of EU Structural instruments in
    Bulgaria
  • JASPERS office opened in Sofia

71
Measures in response to the global economic and
financial crisis
  • FLAG FUND
  • Signing of JEREMIE and JESSICA on 27.05.2009
  • Credit agreement with the EIB for 700 mln. ????
  • Bridging financing facility for the
    beneficiaries
  • Bulgaria received from the EC around 88 million
    Euros additional advance payments for the OP for
    2009 as an anti-crisis measure. 64 million Euro
    out of this sum were provided by the European
    Regional Development Fund while 23 709 197 Euro
    come from the European Social Fund within the
    framework of the cohesion package for 2007-2013.
    The additional advance resources envisaged for
    Bulgaria make up 2. The total amount received by
    the country under the form of advance payments is
    547 million Euro.
  • By Decree of the Council of Ministers 143/2009
    the advance payments for projects and activities
    of beneficiaries of OP Regional Development and
    OP Environment were increased. The
    municipalities receive advance payments that
    amount up to 20 of the EU financial support as
    well as national co-financing for infrastructure
    projects to the amount of 1 million and more and
    up to 30 of the EU financial support as well as
    national co-funding for all other operations they
    are beneficiaries of. The NRIA (National Road
    Infrastructure Agency) receives advance payments
    that amount up to 20 of the EU financial support
    and national co-financing for projects it is a
    beneficiary of.
  • 28 million Euro were provided within the
    framework of Rural Development Program (RDP) as
    an additional package for the funding of
    renewable energy sources
  • Reduced deadline for the interim payments (15
    days).

72
USE AND CONTROL OF EUROFUNDS HIGHLIGHTS FOR 2009
  • Infrastructure development transportation,
    environment, regional development
  • Support for small and medium size enterprises in
    a global economic crisis environment
  • Speeding up the project implementations and
    achieving synergy effect in the OPs.
  • Guaranteeing of transparency and effective
    control
  • Achieving positive Compliance assessment of the
    management and control systems of the OP

73
European funds
74
  • Not that is difficult we do not try,
  • it is difficult because
  • we do not try
  • SENECA
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