[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 23.12.2005

SEC(2005)1773

COMMISSION STAFF WORKING DOCUMENT

ANNEXES TO 2004 Report on Phare COUNTRY SECTIONS & ADDITIONAL INFORMATION {COM(2005)701 final}

PART I: COUNTRY SECTION

I.1. Bulgaria 3

I.2. Cyprus 3

I.3. Czech Republic 3

I.4. Estonia 3

I.5. Hungary 3

I.6. Latvia 3

I.7. Lithuania 3

I.8. Malta 3

I.9. Poland 3

I.10. Romania 3

I.11. Slovakia 3

I.12. Slovenia 3

I.13. Turkey 3

PART II: ADDITIONAL INFORMATION ON IMPLEMENTATION AND PROGRAMME MANAGEMENT ISSUE

II.1 Technical and Financial assistance: 3

II.1.1 Information on Twinning and Taiex activities in 2004 3

II.1.2 Information on multi-country and horizontal programmes 3

II.2 Programme Management Issues-Monitoring and Evaluation 3

II.2.1 Monitoring and interim Evaluation 3

II.2.2 Ex-post evaluation 3

II.2.3 Other activities of monitoring and evaluation function 3

III.1 Phare funds by year 1990 – 2004 3

III.2 Phare funds by country 1990 – 2004 3

LIST OF ACRONYMS

AC Acceding Country

BSP Business Support Programme

CAP Common Agricultural Policy

CBC Cross Border Cooperation

CC Candidate Country

CEB European Development Bank

CFCA Central Financing and Contracting Agency

CFCD Central Financing and Contracting Department

CFCU Central Finance and Contracts Unit

CFP Common Forestry Policy

CMO Common Market Organisations

CPER Country Phare Evaluation Review

CPMA Central Programme Management Agency

CSO Civil Society Organisation

DIS Decentralised Implementation System

EAG Evaluation Advisory Group

EAGGF European Agricultural Guidance and Guarantee Fund

EBRD European bank for reconstruction and development

EC European Communities

ECR European Commission Representation

EDIS Extended Decentralised Implementation System

EFTA European Free Trade Association

EIB European Investment Bank

ENPI European Neighbourhood and Partnerships Instrument

ESC Economic and Social Cohesion

ESF European Social Fund

EU European Union

FDI Foreign Direct Investment

FIFG Financial Instrument for Fisheries Guidance

GDP Gross Domestic Product

IA Implementing Agency

IACS Integrated Administration and Control System

IB Institution Building

IFI International Financial Institutions

IPA Instrument for Pre-Accession

IT Information and Telecommunication

JHA Justice and Home Affairs

JMC Joint Monitoring Committee

KIDSF Kozloduy international decommissioning fund

MAP Multi Annual Programming

MEDA Euro-Mediterranean Partnership

NAO National Authorising Officer

NAC National Aid Coordinator

NDP National Development Plan

NF National Fund

NGO Non-Governmental Organisation

NPAA National Programme for the Adoption of the Acquis

NP National Programme

NPP Nuclear Power Plant

OLAF European Antifraud Office

OP Operational Programmes

PAO Programme Authorising Officer

PAP Pre-Accession Programme

PIFCA Public Internal Financial Control Agency

QSG Quality Support Group

REACH Registration, Evaluation and Authorisation of Chemicals

RTA Resident Twinning Advisor

SF Structural Funds

SIGMA Support for Improvement in Governance and Management

SME Small and Medium Sized Enterprises

SMSC Sector Monitoring Sub-Committee

TA Technical Assistance

TAIEX Technical Assistance Information Exchange Unit

TSE Transmissible Spongiform Encephalopathy

UIBE Unallocated Institution-Building Envelope

UNDP United Nations Development Programme

VAT Value Added Tax

I.1. Bulgaria

1.1. The year in review

As noted in the Commission’s latest Regular Report (October 2004), Bulgaria continued to make progress in meeting the accession criteria in 2004.

Political developments

Bulgaria continued to fulfil the political criteria. Tangible progress was made in public administration reform with the adoption of amendments to the Civil service law. The specific structures for co-ordinating European integration continue to function well, and in view of Bulgaria’s aim of building a qualified and efficient civil service by the time of accession this progress needs to spread throughout the public administration. Also, interdepartmental coordination should improve. Attention should be given to the legal framework for local and regional administration, which will play an important role in the implementation of the acquis .

Building on important reforms of the judiciary system achieved in recent years, there have been positive developments with regard to the recruitment and appointment of judges. Still certain key parts of the reform of the judiciary remain to be adopted. The complexity and efficiency of the penal structures, in particular in the pre-trial phase, is a matter of concern. Strong efforts will be necessary to foster Bulgaria’s capacity to prosecute organised crime and corruption, which involves further reforms in the structures of the judiciary and of the police.

Bulgaria has implemented several measures in the fight against corruption, but it remains a problem. Renewed efforts are needed, including tackling high level corruption.

Bulgaria continues to respect human rights and fundamental freedoms. Further progress should be pursued in specific areas to improve their implementation in practice. Comprehensive legislation on anti-discrimination was adopted but the independent body required by the law was not yet established in December 2004. The freedom of expression is ensured by law. However, the legal framework regarding libel and defamation by journalists needs to be revised. Efforts to address inadequate living conditions in certain prisons and problems of ill-treatment in custody need to be sustained. Trafficking in human beings is a serious problem and needs to be addressed. A new law on public health should address most of the issues related to the placement of mentally disabled people. The structures responsible for child welfare and their co-ordination with the relevant ministries need to be reinforced.

Efforts have been made in the past years to develop a framework to tackle the problems faced by minorities, but the situation on the ground has not evolved much. Sustained efforts including allocation of appropriate financial resources will be necessary to effectively implement the intentions and to combat in particular anti-Roma prejudice.

Macroeconomic developments and structural reforms

Bulgaria is a functioning market economy. The continuation of its current reform path should enable Bulgaria to cope with competitive pressure and market forces within the Union.

Bulgaria has maintained a high degree of macroeconomic stability and implemented an adequate macro-economic policy mix enabling sustained economic growth and a continued reduction of unemployment. The currency board arrangement, prudent fiscal policy and economic reforms have contributed to low inflation. The privatisation process is almost complete and the restructuring process in key sectors such as coal, steel and the network industries continues. The banking sector has considerably increased its role in financial intermediation. The quality of infrastructure is slowly increasing. Bulgaria has benefited from strong FDI inflows. The business environment is slowly improving.

However, improvements can be made in sustaining macroeconomic stability and in deepening structural reforms. The current account deficit has widened substantially in 2003 and could, if continuing, warrant a further policy response. The business environment, in particular the efficiency of the administrative and judicial system as well as regulatory procedures, should be further improved to increase Bulgaria’s attractiveness for investment. In spite of significant achievements, privatisation still needs to be completed. While the legal framework is largely in place, the actual restructuring and liberalisation of the network industries need to progress further in order to enhance competition and efficiency. The ongoing reduction in unemployment should be further supported by reducing rigidities in labour market regulation.

Progress in meeting the acquis communautaire

Over the past year, Bulgaria has continued to make good progress in most areas of the acquis and is on track to complete the required legislative transposition before the planned date of accession if the current pace of progress is maintained. Bulgaria needs to continue to make sustained efforts to develop sufficient administrative and judicial capacity to implement and enforce the acquis . As well as continuing judicial reform and the horizontal reform of the public administration, it needs to focus in particular on developing the capacity to be part of the internal market and to apply the acquis in areas such as agriculture, environment and regional policy[1].

1.2. Phare in 2004

Programmes launched

For 2004, Phare allocations for Bulgaria totalled €293.52 million –

- National Programme (€172.52 million)

- Cross-border Co-operation Bulgaria-Greece (€20 million)

- Cross-border Co-operation Bulgaria-Romania (€8 million)

- Cross-border Co-operation Bulgaria-Turkey (€3 million)

- Cross-border Co-operation Bulgaria-FYROM (€2 million)

- Cross-border Co-operation Bulgaria-Serbia & Montenegro (€3 million)

- Nuclear Decommissioning (€85million)

These figures exclude the benefits to Bulgaria from horizontal and multi-country Phare programmes, including those on nuclear safety.

The overall aim of the National Programme (€172.52 million) was to assist Bulgaria’s preparations for EU membership, based on the priorities identified in Bulgaria’s latest Accession Partnership, approved in May2004.

In view of the clear timetable and priorities leading to accession in 2007, together with substantially increased financial resources in the 2004-06 period, the Commission has worked with the Bulgarian authorities to develop an enhanced system of multi-annual planning for the Phare programme for the next three years. This has involved the Bulgarian authorities preparing a Multi-Annual Programming document (MAP) setting out broad Phare priorities for 2004-06 together with indicative financial allocations broken down by sub-sector. The MAP is a Bulgarian owned Plan and is not formally adopted or approved by the Union.

The process of preparing the MAP has helped focus programming on key priorities and led to a better-planned and co-ordinated portfolio of more strategic interventions. In addition to the MAP, the Bulgarian authorities have been encouraged to prepare multi-annual programme or project fiches where these are feasible. These contain firm financial allocations for 2004 and indicative allocations for 2005 and/or 2006. Around 80% of projects selected in 2004 where multi-annual.

The National Programme was designed to meet six main broad objectives, which represented the areas in which the Commission believed that Phare support could most assist Bulgaria to meet the accession criteria.

- Strengthen public administration and the judiciary at all levels

- Improve transparency, financial control and the fight against corruption and fraud

- Promote economic growth, competitiveness and social cohesion

- Integrate minority and vulnerable groups into mainstream society and create a more dynamic and pluralist civil society

- Enhance the administrative and judicial capacity to implement and enforce legislative measures and assume the obligations of EU membership

- Improve the strategic planning and effective utilisation of EU funds and prepare for Structural Funds (including implementation of EDIS)

The authorities agreed that it was important that the Phare 2004 programme was devoted to projects in support of these overarching priorities. The National Aid Co-ordinator (the Minister of Finance) has endorsed these priorities.

Programming has been governed largely by the Road Map, Accession Partnership and Regular Report 2004.

The overall aim of the Cross-border co-operation programme (€ 36 million) was to promote economic co-operation between border regions of Bulgaria and counterpart regions in Greece, Romania, Turkey, FYROM and Serbia/Montenegro and help these regions overcome their specific development problems. The following projects were supported:

- Cross-border co-operation projects with Greece : Railway, road, employment, border safety and water quality projects (€20 million)

- Cross-border co-operation projects with Romania : Road, river, economic development and environmental protection projects (€8 million)

- Cross-border co-operation projects with Turkey : Road, border crossing checkpoint, People to people actions (€3 million)

- Cross-border co-operation projects with FYROM : Nature protection, co-operation among public institutions at regional/local level, implementation of the neighbourhood programme (€2 million)

- Cross-border co-operation projects with Serbia & Montenegro : Local capacity building grant scheme, technical assistance for the implementation of the neighbourhood programme, people to people actions; (€3 million)

Overview of programmes implemented

The Phare programme allocated some €1,703 million between 1992 and 2004. In addition to the National Programmes, Bulgaria has benefited from special assistance for the decommissioning of the Kozloduy nuclear power station, from Cross Border Cooperation programmes and from multi-beneficiary programmes.

The end of 2004 saw the successful closure of most of the projects financed from the 2001 programme, covering a range of sectors. The 2002 National Programme has been contracted and its implementation is under way. Contracting of 2003 National Programmes has started but the contracting rate, however, remained relatively low, as Bulgarian authorities have focused efforts mainly on the implementation of the projects under the National Programme 2002.

Phare management performance

At the end of November 2004 the contracting period for all the projects under the 2001 programmes expired with the exception of two projects worth a total of €7.660 million whose contracting deadline was extended by 7 ½ months (BG 0201.12 Strengthening of the National Conformity Assessment system and BG 0201.04 Improvement of veterinary border control.

The final contracting rate for Phare 2002 reached well over 95.01% (182 contracts). The amount of € 5.214 million (5%) is reported as non-contracted. This positive result was obtained as a result of intensive efforts by the Bulgarian authorities and the EC Delegation.

One Phare 2001 project BG0106.01 Rehabilitation and partial reconstruction of Road II-19 Section Simitli – Razlog (had contracting deadline extended by one year; the deadline expired on 30 November 2004 and was successfully contracted).

NDPs – State of Play

In January 2004, the Council of Ministers established the procedures for drafting the National Development Plan 2007-2013 and the respective Operational Programmes. It was decided that the NDP and the OPs had to be approved by the Council of Ministers but that a Co-ordination Council would be established to ensure the horizontal co-operation. The daily tasks of drafting the NDP and OPs have been delegated to specific working groups. The NDP working group became operational in March 2004, the OP working groups at the end of 2004. The partnership principle is ensured through the representation of socio-economic partners in the working groups and discussion forum events organised at regular interval. The Bulgarian authorities aim at finalising the programming process by the end of 2005.

Institution Building highlights

Most new Phare Institution Building projects are now delivered through Twinning. For Bulgaria a total of ten 2001 projects, sixteen 2002 projects and thirteen out of nineteen 2003 standard twinning projects as well as eleven twinning light projects were under implementation in 2004. In addition, Twinning will contribute to the results of thirty seven twinning projects under the National 2004 Phare Programme for Bulgaria. Some additional acquis related activities have been identified in the framework of the Unallocated Institution Building Envelope for financing year 2003: five twinning light projects and one standard twinning projects.

The Unallocated Institution Building Envelope (UIBE) for covering institution-building needs that might arise between programming exercises has been substantially increased within the multi-annual Programme totalling €5 million a year for 2004-2006.

The selection of Member State partners for the Twinning projects under the Phare 2004 Early FM and 2004 Main FM took place in October and November 2004 respectively and the preparation of the twinning contract started without any delays.

1.3. Results and impact

State of play for JMC/SMSC development

During 2004, Bulgarian authorities continued with their efforts in improving their self-monitoring capacities. Apart from the nine Sectoral Monitoring Sub-committees, operational since 2001, which continued to hold regular sessions twice during 2004, from October 2004 onwards regular Monthly Progress Meetings for all sectors were organized with the participation of all involved parties: Contracting Authorities, Beneficiary Institutions, NAC, NAO and the Delegation. These meetings served to remedy problems occurring prior to procurement and during implementation and to agree on realistic and prompt timetables for upcoming tendering.

The fifth annual meeting of the Joint Monitoring Committee was held on 2 and 3 December 2004 in Sofia. It reviewed the findings of the Phare Sectoral Monitoring Sub-committees, the ISPA Monitoring Committee and the SAPARD Monitoring Committee meetings held in 2004. The Bulgarian National Aid Coordinator services also presented reports on the following issues of overall concern to pre-accession assistance management:

- Interim Evaluation activities in 2004. Assessment and corrective measures

- Lessons learned from previous Phare contracting cycles (incl. General proposals and discussions on the procurement plan/time-line for 2003 and 2004 Phare contracting)

- Preparation of Extended Decentralisation – EDIS

- Developments on 2005 Programming

Corrective measures were agreed on a number of sector specific issues of project management. The conclusions and recommendations from Phare 2002 contracting, completed in November, were highlighted with a view to ensure further improvements in implementation of all ongoing programmes and smoother contracting of Phare 2003 funds. Further efforts need to be devoted to the implementation of the recommendations of the SMSCs.

In addition, it has been decided to enhance JMC’s monitoring by holding a second and more technical JMC in the middle of the year.

M&IE Reports in 2004-Lessons Learned

In 2004, Interim evaluations were carried out by two contractors EMS and ECOTEC. Ten Interim Evaluation reports covering all monitoring sectors in Bulgaria were undertaken as well as a Country Phare Evaluation Review of support allocated in 1998-2002 and implemented until July 2003.

The main findings from the Country Phare Evaluation Review in Bulgaria were that overall, good progress had been made with the harmonisation of Bulgarian legislation with the aquis, although effective implementation of harmonised legislation appears generally to be some way off. Institution building projects had sometime limited success notably due to the absorption capacity of beneficiary institutions. Projects had often been over ambitious. The efficiency, effectiveness and sustainability of much Phare assistance had been negatively affected by continuing high rates of staff turnover in key Phare implementation structures. In particular, there was limited capacity to manage the growing number of Structural Fund type grant schemes in the economic development, social development and regional development sectors. Infrastructure projects suffered from poor planning, which led to implementation delays. Phare assistance will have a positive impact in the longer term. However, it was not possible to assess the extent to which the achievement of wider objectives should be attributed to Phare or other factors.

National Aid Co-ordination responsibility was transferred to the Ministry of Finance in 2002 and the Management of EU Funds Directorate was established specifically for this purpose. Although the full impact of that change may not be apparent until the implementation of Phare 2003 projects, it was clear that positive steps had been taken to improve project design, screening, implementation and monitoring.

Recommendations underlined that the continuing high levels of staff turnover in key, Phare related bodies should be addressed by implementing, on a regular basis, a training programme covering core programme/project design and management skill. In addition the monitoring of preparatory projects should be prioritised to ensure that such projects consistently deliver timely and well designed follow-on projects.

Overall, the impact of Phare programmes in Bulgaria continues to be positive. In view of the target date for accession, further sustained efforts need be taken to ensure the capacity of the Bulgarian administration to absorb EC funds.

Sectors with positive results

In the agriculture sector work continued on improvement of phytosanitary control and plant protection which was delivered through separate twinning light projects, mainly for training of expert on different control mechanisms and methods, on improvement of veterinary control through supporting the alignment of the legislation and of the control systems, including the TSE control and establishment of adequate border veterinary control on the future EU outer borders and on strengthening of the fisheries and aquaculture sector in order to ensure harmonisation of legislation and to introduce key elements of the Common Fisheries Policy. New projects launched include a project for preparing the Ministry of Agriculture and Forestry to implement the second pillar of the EU Common Agricultural Policy – Rural Development, establish its Paying agency and prepare the setting up of IACS in Bulgaria, a project on improvement of the internal market control via variety testing and seed control, improvement of the phytosanitary control and biological testing, and conformity of the animal waste processing system in Bulgaria with the EU requirements, as well as a project for the approximation and implementation of the legislation-CAP and CFP mechanisms – and administrative capacity strengthening of MAF to meet its future responsibilities.

In the Public Finance sector the following major projects were under implementation during 2004: BG2003/004-937.09.03 “Further implementation of the new model of Public Internal Financial Control in Bulgaria” / Twinning (Phare budget: MEUR 1.17) and BG2003/004-937.09.04 “Further Development of the Independent Public External Audit Institution”/Twinning (Phare budget: MEUR 1.3). Both projects could be considered as major tools in providing EU support to the National Audit Office (NAO) and the Public Internal Financial Control Agency (PIFCA) in strengthening the independent internal and external financial control and audit in BG. The implementation of these twinning projects facilitate the on-going process of reforms in the sector through: improvement of the legal framework, strengthening of the administrative capacity and development of modern audit and financial control system on the basis of EU bets practices and international standards.

In the process of preparation of relevant BG authorities for EDIS accreditation, project BG 0103.09 “Improving the management of EU funds” was successfully competed. Stage 1 of EDIS “Gap Assessment” was carried out under the project. The implementation of Stage 2 of EDIS “Gap Plugging” financed under 2002/000-585 “Horizontal Programme Preparing Candidate Countries for EDIS in the Management of Pre-accession Funds in Bulgaria” started in 2004 too. These projects supported NF, Phare IAs, NAC and PIFCA in strengthening their capacity to manage and control EU funds effectively thus preparing them for the future management of the EU structural funds.

In the Environment Sector Phare Programme continued to provide assistance for the Closing of Eleshnitsa Uranium mines, the Rehabilitation and construction of Sofia WWTP has been completed and the taking over certificate was issued. Furthermore a twinning project for implementing the Seveso environment Directive was completed which was aiming to assist the Ministry of Environment and Waters to prevent and minimise the hazards of large industrial accidents by improving the administrative framework and institutional capacities necessary to implement and enforce the Seveso Directive. The project established a registration system for Seveso sites, introduced risk assessment and safety management procedures and provided training.

In the area of nuclear safety , eleven Phare projects worth €12.567 million (Phare budget) are currently under implementation. On the other hand the KIDSF (Kozloduy International Decommissioning Fund managed by EBRD) is also available for implementation of projects dealing with decommissioning projects (nuclear window) and energy efficiency and renewable enegy projects (non-nuclear window) with a total commitment by the end of 2004 of €240 million (€155 million already committed + €85 million approved by the Phare Management Committee by the end of 2004).

The Bulgarian Nuclear Regulatory Authority (NRA) is benefiting from seven projects (€7.45 million) on a wide range of topics such as the decommissioning of Units 1 and 2, the assessment of modernisation of Kozloduy NPP Units 5 and 6, the management of sealed radioactive sources and the licensing-oriented review of severe accident management guidelines (SAMGs) established for the KNPP’s operators through a previous Phare project.

One project (with a Phare budget of €1.037 million), under procurement, will contribute to the innovation of the radiation monitoring system of the IRT research reactor, located in Sofia, of the Institute of Nuclear Research (INRNE), while three more projects are assisting the recently-established “State Enterprise for Radioactive Waste Management” (SERAW) in two main fields: 1) technical design, supply of equipment and works for characterisation and control of institutional radioactive waste at the national repository of Novi Han and 2) for the conceptual design of the national disposal facility for low and intermediate-level short-lived radioactive waste.

In the sector of Regional Development , support continued on the preparation of Bulgaria for the management of Structural Funds (SF) and on the promotion of cross border co-operation (CBC). Support for preparation for SF is provided by IB projects for the line ministries which will be involved in the implementation of SF as future managing authorities of the Sectoral and Regional operational Programmes and by investment projects, mainly grant schemes, which are considered as SF-type projects. In the area of Cross-Border Cooperation , projects in Transport, Environment, Energy and Joint Small Project Funds are under implementation for both CBC Programmes between Bulgaria – Greece (€20 million) and Bulgaria-Romania (€8 million). As a continuation of the External Border Initiative Programme a new CBC Programme has been established with Turkey (€3 million) and new Neighbourhood Programmes with Serbia & Montenegro (€3 million) and Former Yugoslav Republic of Macedonia (€2 million) have been launched.

In the Public Administration Reform sector, the project on the implementation of the Civil Service Reform started in 2003 and was completed successfully in September 2004. The project aimed to strengthen the capacity of the Public administration to implement the Law on Civil Servant and the Law on Administration and to reinforce the control and accountability mechanisms within the administration. It was implemented under a TA contract and a Supply contract. The project contributed to improve the control and accountability of the administration, to develop draft legislation on the provision of public information and to train civil servants in human resource management, evaluation of the functionality and efficiency of the administration, accountability and service delivery procedures.

In the Justice sector the Phare Programme supported the implementation of the Strategy for the Reform of the Judiciary which focuses on the following areas: introduction of European standards and best practices in the judiciary and harmonisation of the Bulgarian legislation with the acquis ; co-operation within the judiciary and functioning of the Supreme Judicial Council; adoption of new procedure laws-administrative, penal and civil procedure codes; improvement of the judiciary structure, and adoption and implementation of judiciary computerisation strategy. In particular, the professional training of magistrates and administrative staff is improved through institutional building of the judiciary training body, the National Institute of Justice. The anti-corruption measures are strengthened by preparing an administrative procedure code to enhance judicial control over the actions and decisions of the administration. The Public Prosecutor’s Office is assisted in the fight against organised and economic crime, and corruption. Phare projects for institutional building aimed also to improve civil and penal procedures and to improve international co-operation in penal and civil matters. Institutional support for the Supreme Judicial Council aims to improve the magistrates’ status. The institution building assistance to the Ministry of Justice intends to improve the provision of security to the judiciary, to strengthen the penitentiary system and to establish a probation system

In addition, Phare projects helped the judiciary with its computerisation through institutional building of the Registry Agency and the Information Service and Technologies Directorate at the Ministry of Justice, the supply of computer and communication equipment, and development of automated systems that will be used by the Supreme Judicial Council, courts, public prosecutors’ offices, prisons, arrests, the Registry Agency, the Ministry of Justice, the National Institute of Justice, and the investigation services.

Success story

BG 0203.02: Implementation of the national anti-corruption strategy. The project, which was implemented as a twinning contract, aimed to enforce the administrative capacity of the Ministry of the Interior (MoI) in order to prevent and counter internal corruption. It focused on the adoption and effective implementation of EU standards and best practices; institutional strengthening of the integrated system of the MoI structural units for countering internal corruption; the development and implementation of a programme for prevention of corrupt behaviour of MoI officers; the design and introduction of an appropriate system for encouraging anti-corrupt conduct among vulnerable groups of MoI officials like police and border police; and the introduction of a training system for promoting a professional culture among MoI officials. Political will, determined leadership and effective project management ensured that all the planned outcomes and guaranteed results were successfully delivered timely according to the required standards and within the available budget. In addition, in terms of sustainability the beneficiary has embarked upon a process of change and improvement that will continue to have a positive impact well beyond the life of the project itself. The following results testify to successful project development: “A much better balance has been achieved between preventive and enforcement measures and in spite of the deeply rooted culture of excessive secrecy, the Ministry has now become the government institution which provides the public with the most detailed information on the implementation of its anti-corruption measures, compared to all other institutions,” ‘Anti-Corruption Reforms in Bulgaria’ Coalition 2000 Report, February 2005. Beneficiary institution received the Bulgarian Council Of Ministers National Award for: ‘The Most Effective Counteraction to Corruption in 2004’ The establishment of a ‘Transparency Advisory Group’, since the start of the project added considerable value at no cost and has been internationally acknowledged as being an example of best practice in the sector. The beneficiary was very active convening regular meetings with representatives from the NGO community, the press and media associations to share common problems and design appropriate solutions, as part of its Public Communication Strategy. Posters in public places, highly visible stickers on the outside of trams and buses, information pamphlets, Internet banners on the Websites of commercial News Agencies with direct links to the beneficiary’s own Internet site, television clips, radio broadcasts and regular newspaper articles all promoted the newly adopted hotline telephone number and Internet site for the receipt of signals from the public. Public awareness that corruption is a shared problem increased and the number of corruption signals soared as the public gained confidence and trust in the determination and ability of the beneficiary to deliver results. The balance between prevention and enforcement was supported by specific activities under the project and as a direct result; awareness training has been introduced in all courses at the National Training Academy and the Regional Training Centres. Particular emphasis has been given to the training of new recruits, senior managers and the 120 full-time Anti-Corruption investigators appointed as a result of the Project. To date, over 2000 officers have benefited from the training. |

Tasks ahead

The challenges for 2005 and subsequent years are to further improve the implementation of Phare, and to implement EDIS for 2006 onward. These are in turn preparations for Bulgaria’s eventual participation in Structural Funds after accession. The immediate priorities are threefold:

- First, there is a need further to strengthen the capacity of the Bulgarian authorities, and Implementing Agencies, to translate the priorities into mature project proposals that can be supported by Phare. Public institutions need to collaborate across ministerial boundaries, work in partnership with business and civil society groups, and co-ordinate donor assistance more effectively.

- Secondly, there is a need to strengthen both financial management systems and project implementation capacity in some areas. This is particularly the case for projects involving investment in ESC and grant schemes, which will account for an increasing proportion of the Phare programme. Efforts are needed to reduce staff turnover and provide adequate resources for the contracting, technical and financial aspects of project implementation.

- Thirdly, the JMC arrangements and evaluation systems must be further strengthened, and in this regard, it has been decided in the December JMC to plan an “intermediate” JMC before summertime, to ensure an enhanced follow-up. The lessons of monitoring and evaluation fed back into the design of new programmes will carefully be taken into account. The Bulgarian Ministries must develop their own monitoring and evaluation systems.

I.2. CYPRUS

2.1. Summary

In 2004, Cyprus became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer of the Republic of Cyprus has submitted to the European Commission on 5 April 2002 a request to waive ex-ante controls on project selection, tendering and contracting for the management of pre-accession aid under Extended Decentralised Implementation System (EDIS).

Through its Decision (C(2004)2614), adopted and notified on 15 July 2004, the European Commission decided to confer the management of pre-accession aid on an extended decentralised (EDIS) basis to the following Cypriot authorities: the Cyprus Police; the State General Laboratory (Ministry of Health); the National Regulatory Authority (Office of the Commissioner of Telecommunications and Postal Regulation), the Department of Electronic Communications (Ministry of Communications and Works); the Department of Customs and Excise (Ministry of Finance); the Department of Agriculture (Ministry of Agriculture, Natural Resources and Environment); the Department of Forests (Ministry of Agriculture, Natural Resources and Environment); the Water Development Department (Ministry of Agriculture, Natural Resources and Environment); the Veterinary Services (Ministry of Agriculture, Natural Resources and Environment); the Planning Bureau; the Department of Merchant Shipping (Ministry of Communications and Works); the Mental Health Services (Ministry of Health); the Statistical Service (Ministry of Finance); the VAT Service (Ministry of Finance); the Cyprus Productivity Centre (Ministry of Labour and Social Insurance); the Ministry of Commerce, Industry and Tourism; the Environment and Management of Municipal Waste Unit (Ministry of Interior); and the Department of Labour Inspection (Ministry of Labour and Social Insurance). Since this date, procurement procedures have been carried out under the responsibility of these authorities and no longer require the ex-ante control of the European Commission services.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transition Facility programmes and monitoring of both pre-accession and Transition Facility programmes. The National Authorizing Officer (NAO) carries out the financial supervision.

2.2. Pre-accession financial and Transition assistance in 2004

i) Programming

For the period 2004-2006, a Transition Facility has been created by Art 34 of the Act of Accession to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds. The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the authorities of the Republic of Cyprus and the European Commission on 26 November 2004.

A total of € 9,000,000 was allocated to Cyprus under the 2004 Transition Facility budget for Cyprus.

Although the most urgent needs as regards acquis implementation have been addressed before accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures on par with those of other Member States.

Additional assistance was also provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee gave a favourable opinion on the Transition Facility 2004 National Programme for Cyprus on 8 October 2004. The programme was then approved by the Commission through its Decision C(2004) 4674 of 9 December 2004, which was notified to the national authorities on the same day.

Transition Facility funds are used to support institution building through twinning, twinning light, technical assistance, and investments to provide the necessary equipment in order to implement the acquis.

The Transition Facility 2004 National Programme for Cyprus provides support for the following projects:

INTERNAL MARKET € 2 million

- Measures to develop the implementation capacity of the Cyprus authorities in applying the European public procurement legislative package

- Capacity building in the field of metrology

ENVIRONMENT € 2.58 million

- Development of integrated water monitoring programmes and tools for cost-effective monitoring and assessment to support sustainability of water resources and the implementation of the Water Framework Directive 2000/60/EC

- Preparation of management plans for NATURA 2000 sites

AGRICULTURE € 1.2 million

- Integrated programme on food safety and risk assessment to fulfil all the requirement of the EU acquis

JUSTICE AND HOME AFFAIRS € 0.37 million

- Enhancement of the administrative structures regarding asylum procedures

ADMINISTRATIVE CAPACITY € 2.85 million

- Interim evaluation of EU funded projects

- Development of a health monitoring system for Cyprus

- Unallocated Institution Building Facility

ii) Implementation

- Pre-accession programme 2001

A total of € 11,500,000 was allocated to Cyprus under the 2001 National Pre-accession programme. For 5 projects, the contracting deadline was extended by 6 months until 21 March 2004. The disbursement period for the 2001 Pre-accession programme expired on 30 September 2004. For 8 projects representing around 60% of the overall 2001 programme, particularly in the field of environment, internal market and employment and social affairs, the disbursement deadline was extended by 12 months until 30 September 2005. For one project, i.e. Reinforcement of the administrative capacity: monitoring and assessment (€ 150,000), the disbursement deadline was extended by 15 months until 31 December 2005. At the end of the contracting deadlines, around 83% of the overall 2001 programme has been contracted.

- Pre-accession programme 2002

The contracting deadline for the 2002 National Pre-accession programme (€ 11,500,000) was 31 July 2004. At that date, 85% of the programme had been contracted. The Cypriot authorities requested no extension for the 2002 programme.

- Institution Building highlights

During the year 2004, a total of around € 6.7 million of pre-accession assistance from national allocation (not including horizontal and multi-country programmes and participation in Community Programmes) has been disbursed from the Commission to Cyprus from the 2001-2003 Pre-accession programmes.

Implementation of pre-accession aid in Cyprus is considered overall satisfactory though in some sectors delays in tendering and contracting have been experienced and remedial actions had to be taken to decrease the risk of loss of EU funding.

As regards twinning, Cyprus has primarily taken advantage of the instrument of Twinning Light, since the Twinning Light has proven a flexible tool for ad-hoc interventions to fill gaps with regard to the implementation of the acquis .

A third of the annual pre-accession aid to Cyprus has been committed for bi-communal projects aiming to contribute to the reconciliation of the two Cypriot communities. Bi-communal projects are in the main managed centrally by the European Commission which has contracted the United Nations Development Programme (UNDP) for its implementation. The main focus of these projects is the rehabilitation of the walled city of Nicosia in accordance with the Nicosia Master Plan and support to SMEs. Apart from the grants given to UNDP, further bi-communal projects have been carried out, on the one hand, for the NGO sector and on the other hand for the trade unions of both sides of the island.

2.3. Results and Impact

i) State of play for JMC / SMSC development

On 1 May 2004, a revised Joint Monitoring Committee (JMC) Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

In 2004, only one JMC meeting took place on 1 November 2004. Given the absence of sub-committees in Cyprus previous to the introduction of the new JMC mandate, the first meeting of the JMC was very important in order to review in detail the implementation of projects funded by pre-accession programme in each sector. The JMC reviews progress of projects which are managed under EDIS by the Cypriot authorities and does not cover projects managed by the European Commission services, e.g. bi-communal projects. In the year 2004, the first meeting of the Sector Monitoring Sub-Committee (SMSC) took place. Due to the small size of the Cyprus pre-accession assistance programme, there is only one SMCS.

ii) Monitoring & and Evaluation Reports in 2004

Overall responsibility for monitoring and interim evaluation of the Pre-accession and Transition Facility programmes in Cyprus lies with the National Aid Co-ordinator services located in the Planning Bureau.

In 2004, a Country Summary Interim Evaluation of Pre-accession assistance to Cyprus by an independent external evaluator, under a centralised contract, was issued on 22 June 2004. It reflects the situation at the end of December 2003. The report is based on monitoring reports, other published documentation and interviews held in the period from December 2003 to February 2004. It focused on on-going projects and therefore did not review projects which had been completed prior to the cut-off date. The overall rating for the assistance was deemed as satisfactory. The report concluded that on the whole the relevance of pre-accession assistance was well established and closely tied to the agreed needs for Cyprus’ accession. A substantial part of the assistance had not started or only very recently in part because of slow contracting under the 2001 programme. Realisation of results has been impeded by very slow contracting, with some contracts signed very close to the contracting deadline. This has meant that some interventions faced compressed implementation periods and have been delivered later than was desirable. However, progress in delivery of results from the assistance once contracted had been good. Attention was drawn to the low efficiency of one project in the 2001 programme, i.e. upgrading of the State Laboratories.

I.3. CZECH REPUBLIC

3.1. Summary

In 2004, the Czech Republic became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer of the Czech Republic has submitted to the European Commission on 23 December 2003 a request to waive ex-ante controls on project selection, tendering and contracting for the management of Phare aid under Extended Decentralised Implementation System (EDIS).

Through its Decision (C(2004) 4649), adopted and notified on 8 December 2004, the European Commission decided to confer the management of Phare aid on an extended decentralised (EDIS) basis to the Central Finance and Contract Unit (CFCU), the Civil Society Development Foundation (NROS), CzechInvest (CI), the National Training Fund (NTF) and the Centre for Regional Development (CRD). Since this date, Phare procurement is carried out under the responsibility of these authorities and no longer requires the ex-ante control of the European Commission Representation in Prague.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transition Facility programmes and monitoring of both Phare and Transition Facility programmes. The National Authorizing Officer (NAO) carries out the financial supervision.

3.2. Phare/pre-accession financial and Transition assistance in 2004

For the period 2004-2006, a Transition Facility has been created by Art 34 of the Act of Accession to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds. The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the Czech authorities and the European Commission on 27 September 2004.

i) Programming

A total of € 17,100,000 was allocated to the Czech Republic under its 2004 Transition Facility National Programme.

Although the most urgent needs as regards acquis implementation have been addressed before Accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures on par with those of other Member States.

Additional assistance was also provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee approved the Transition Facility 2004 National Programme for the Czech Republic in May 2004. The programme was then approved by the Commission through its Decision C(2004)4016 of 21 October 2004, which was notified to the national authorities on the same day.

Transition Facility funds are used to support institution building through twinning, twinning light, technical assistance, and investments to provide the necessary equipment in order to implement the Acquis.

The Transition Facility 2004 National Programme for the Czech Republic provides for:

POLITICAL CRITERIA € 2.70 million

- Improving Efficiency of Civil Society Organizations (CSOs) Working in the Field of Consumer Protection

- Strengthening the role of Advocacy and Monitoring Civil Society Organisations (CSOs)

TRANSPORT € 0.99 million

- Strengthening of the Railway Infrastructure Administration (RIA) Functions

- Assistance to the Civil Aviation Authority (CAA) in Improving Relevant Norms and Co-operation with the European Aviation Safety Agency (EASA)

ENERGY AND NUCLEAR SAFETY € 0.30 million

- Reconstruction of the Hot Cell at the Richard Repository

INTERNAL MARKET € 5.68 million

- Strengthening the Office of the Financial Arbiter – Ombudsman of the Czech Republic

- Financial Stability Issues in the Czech National Bank

- The Construction of the State Treasury System – 1st Phare

- Evaluation of EU-funded Measures (Phase I – Transition Facility)

- Improvement of the Household Surveys Processing

- Assistance to the Office for Personal Data Protection in Exercising Supervision in Personal Data Protection

ENVIRONMENT € 0.25 million

- Implementation of the Protection of the Ozone Layer EC Legislation in the CR

AGRICULTURE € 0.90 million

- Filling Gaps in Food Safety – Improvement of RASFF (Rapid Alert System for Foodstuffs)

JUSTICE AND HOME AFFAIRS € 1.98 million

- Parole Supervision – Enhancement of Effective and Professional Practice Between Judicial Agencies

- Support to Strategy Development of the Dublin Unit

- Assistance to Strengthening the Prevention and Community Policing in the Police Work

EMPLOYMENT, SOCIAL AFFAIRS AND HEALTH € 2.80 million

- Improvement in the Health Care Management System

- Integration of Registers of Healthcare Professionals (RHP)

ADMINISTRATIVE CAPACITY € 1.50 million

- Unallocated Institution Building Facility

ii) Implementation

- Phare 2001 – finalisation of payments

The disbursement period for the 2001 Phare National Programme and the Cross Border Co-operation Programmes expired in 2004. On 31 December 2004, 97.21% of these programmes had been contracted, while 82.50% had been disbursed.

- Phare 2002 – rate of contracting

By 31 December 2004 71.84% of the 2002 Phare National Programme and the Cross Border Co-operation Programmes had been contracted. To ensure maximum impact of Phare assistance some projects under the 2002 programmes had to be extended.

- Institution Building highlights

During the year 2004, a total of around € 380.38 million of pre-accession assistance from national allocation (not including horizontal and multi-country programmes) has been deployed in the Czech Republic from Phare programmes (National Programmes and Cross Border Co-operation Programmes 2000-2003).

Implementation of Phare in the Czech Republic is considered generally successful in areas such as Environment and Justice and Home Affairs.

A sector which remains problematic is Cross Border Co-operation, where remedial actions had to be taken to decrease the negative impact from excessive delays and to avoid the risk of loss of funds.

The Twinning instrument continues to be used successfully in many priority areas and helped the Czech Republic to prepare for the implementation of EU policies and laws.

3.3. Results and Impact

i) State of play for JMC / SMSC development

On 1 May 2004, a revised JMC Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

In 2004, one JMC meeting took place on 10 December 2004. In total twelve SMSC meetings (one per each sector) in the following sectors: Social protection and health, Agriculture, Cross Border Co-operation, Civil Society Development, Environment, Economic and social cohesion, Energy and nuclear safety, Home Affairs, Justice and Public administration, Internal market, Business support, Finance and Banking.

ii) Monitoring and Evaluation Reports in 2004

Overall responsibility for monitoring and interim evaluation of the Phare and Transition Facility programmes in the Czech Republic lies with the Centre for Foreign Assistance at the Ministry of Finance. Throughout 2004, the NAC prepared Action Plans on decentralisation of Monitoring and Evaluation. After a transition period, following the decentralisation of the Interim Evaluation function, the actual decentralised Interim Evaluation operation in the Czech Republic started in April 2004.

In 2004, interim evaluation reports were prepared by an independent external evaluator and were issued by the NAC on the following sectors: Justice and Home Affairs, Internal Market and Civil Society Development.

A Country Phare Evaluation Review for the Czech Republic (CPER) prepared by an independent external evaluator, under a centralised contract, was issued on 10 February 2004. The report provides a consolidated country review of the findings of the findings of the Interim Evaluation Reports that were prepared between August 2001 and July 2003. It concluded that on the whole Phare has been effective as an instrument in supporting the accession process in the Czech Republic. It noted that institution building progressed well in many important acquis areas and the use of twining support was successful. Extensive upgrading and modernisation of administrative and legislative practices and equipment was achieved in the justice and home affairs, environment and financial sectors. Generally, the report noted, however, that most beneficiaries were poorly prepared to absorb the assistance.

I.4. ESTONIA

4.1. Summary

In 2004, Estonia became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer of the Republic of Estonia has submitted to the European Commission on 3 March 2004 a request to waive ex-ante controls on project selection, tendering and contracting for the management of Phare aid under Extended Decentralised Implementation System (EDIS).

Through its Decision (C(2004) 4410), adopted and notified on 29 November 2004, the European Commission decided to confer the management of Phare aid on an extended decentralised (EDIS) basis to Estonian Authorities. From this date onwards, Phare procurement dossiers no longer require the ex-ante control of the European Commission Representation (ECR) in Tallinn. The Ministry of Finance, Central Financing and Contracting Department is now responsible for ex-ante control and twinning. The Ministry of Finance, Central Financing and Contracting Department (CFCD) is now fully responsible for the daily implementation of the projects.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transition Facility programmes and monitoring of both Phare and Transition Facility programmes. The National Authorizing Officer (NAO) carries out the financial supervision. The new NAC and NAO were appointed respectively at the end of October and December 2004 and have been in office since then.

4.2. Phare/pre-accession financial and Transition assistance in 2004

For the period 2004-2006, a Transition Facility has been created by Art 34 of the Act of Accession to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds. The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the Estonian authorities and the European Commission on 10 August 2004.

i) Programming

A total of € 8.400.000 was allocated to Estonia under the 2004 Transition Facility budget for Estonia.

Although the most urgent needs as regards acquis implementation have been addressed before Accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures on par with those of other Member States.

Additional assistance was also provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee approved the Transition Facility 2004 National Programme for Estonia in May 2004. The programme was then approved by the Commission through its Decision C(2004) 3524 of 23 September 2004, which was notified to the national authorities on the same day.

Transition Facility funds are used to support institution building through twinning, twinning light, technical assistance, and investments to provide the necessary equipment in order to implement the Acquis.

The Transition Facility 2004 National Programme for Estonia provides for:

ADMINISTRATIVE CAPACITY € 1.65 million

- Twinning light facility

TRADE-INTERNAL MARKET € 0.85 million

- Strengthening the administrative capacity of the Consumer Protection Board

- Improving implementing capacity in the field of public procurement

TRANSPORT POLICY € 0.25 million

- Creation of Flight Safety Supervision System for Estonian Civil Aviation Administration (ECAA)

JUSTICE AND HOME AFFAIRS € 1.85 million

- Enhancement of administrative capacity of the Estonian Police on fight against drug related crimes

- Drug Prevention in Prisons and rehabilitation of inmates

- Integrated programme to strengthen the capacity of the Estonian anti money laundering institution

- Analysis for improving management decisions in the Estonian Police

SOCIAL POLICIES AND EMPLOYMENT € 0.73 million

- Elaboration of a computerised communicable disease information system

- Promoting the Integration of Persons with Undetermined Citizenship in Estonia

AGRICULTURE € 1.51 million

- Upgrading of Functional Capability on Testing of Harmful Organisms in Estonia

- Molecular genotyping of Estonian farm animals

- Creation of orthophotos for Land Parcel Identification System

- Development of detection systems of veterinary drug residues in live animals, animal products and feeds

ENVIRONMENT € 0.51 million

- Supporting the development of a nationwide packaging waste collection and recovery system

ii) Implementation

- Phare 2001 – finalisation of payments

The disbursement deadline of 2001 Phare programme was set on 31 December 2004. At that date, 94% of the programme had been contracted successfully. 84% of the programme had been disbursed, while two projects of the 2001 Programme have been extended and were ongoing.

- Phare 2002 – rate of contracting

At the end of the contracting period for the 2002 programme on 30 November 2004, 58% of the programme had been contracted. The Estonian Authorities asked for the extension of certain elements of the Phare National Programme for Estonia 2002 – Part II to the European Commission. A total of nine projects received extension and were ongoing.

- Institution Building highlights

During the year 2004, a total of around € 110 million of pre-accession assistance from national allocation (not including horizontal and multi-country programmes) has been deployed in Estonia from Phare programmes (2001-2003) and Transition Facility.

Implementation of Phare in Estonia is considered particularly successful in the areas of Environment, Public Finance and Education, where Phare funds and projects provide real value added to scarce public funds.

Two sectors remain problematic: CBC and Agriculture, and remedial actions had to be taken to decrease the negative impact from excessive delays, avoid the risk of loss of funds and support Estonia’s ability to fulfil the acquis in these areas.

The Twinning instrument continues to be used successfully in many priority areas and helped Estonia to prepare for the implementation of EU policies and laws.

4.3. Results and Impact

i) State of play for JMC / SMSC development

On 1 May 2004, a revised JMC Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

The only Joint Monitoring Committee (JMC) meeting took place on 24 March 2004 and was co-chaired by the EC and the PAO who represented the NAC. The JMC meeting was fruitful ad helped to address the problems concerning implementation of the ongoing programmes, to discuss horizontal/systemic issues and to identify possible solutions. Several immediate actions were agreed upon and deadlines set for their implementation.

In the year 2004, two rounds of Sector Monitoring Sub-Committee (SMSC) meetings have taken place. The first round of SMSC meetings took place in June and second round between November and December. There are eight sectors to be monitored in Estonia: Finance / European Integration, Social Affairs, Justice and Home Affairs, Cross Border Co-operation (CBC), Environment, Education, Agriculture / Fisheries and Internal Market / Transport.

ii) M&E Reports in 2004

Overall responsibility for monitoring and evaluation of the Phare programme in Estonia lies with the Ministry of Finance (MoF). Currently, the Foreign Financing Department provide services to the NAC in the State Budget Department. Throughout 2004, the NAC prepared the Action Plan on decentralisation of monitoring and evaluation that was endorsed by EC in February 2005.

A Country Phare Evaluation Review (CPER) for Estonia prepared by an independent evaluator, under centralised contract, was issued on April 2004. The report provides a consolidated country review of the findings of the Interim Evaluation Reports that were prepared between August 2001 and June 2003. It concluded that on the whole Estonia has performed well in the implementation of Phare assistance, and this assistance has successfully supported the accession process. According to CPER the Phare has made a considerable contribution to the implementation of the acquis in Estonia. Its incorporation into Estonian law as well as the design of procedures and the main principles of the respective policy fields on paper have overall, reached a satisfactory level.

However, what has been missing is a multi-annual strategic outlook identifying when, how and in which order the main issues would be tackled. Despite the existence of framework documents such as the National Programme for Adoption of the Acquis, there seems to have been a lack of vision when it comes to the development of sectors into the direction of EU membership.

I.5. HUNGARY

5.1. Summary

In 2004, Hungary became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer of Hungary submitted to the European Commission on 1 October 2003 a request to waive ex-ante controls on project selection, tendering and contracting for the management of Phare aid under Extended Decentralised Implementation System (EDIS) by the CFCU-Central Finance and Contract Unit, the ESF-European Social Fund Agency and the VATI-Hungarian Public Company for Regional Town Planning.

Through its Decision adopted and notified on 21 June 2004, the European Commission decided to confer the management of Phare aid on an extended decentralised (EDIS) basis to the Hungarian Authorities. From this date Phare procurement dossiers no longer require the ex-ante control of the European Commission Representation (ECR) in Budapest. The CFCU-Central Finance and Contract Unit, the ESF Agency and the VATI are now responsible for ex-ante control and twinning and twinning light.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transitional Facility programmes and monitoring of both Phare and Transition Facility programmes. The National Authorizing Officer (NAO) carries out the financial supervision.

5.2. Phare/pre-accession financial and Transition assistance in 2004

For the period 2004-2006, a Transition Facility has been created by Art 34 of the Act of Accession to fund certain Institution Building actions in the new Member States to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural funds.

The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the Slovenian authorities and the European Commission on 22 June 2004.

i) Programming

A total of € 18,400,000 was allocated to Hungary under the 2004 Transition Facility budget.

Although the most urgent needs as regards acquis implementation have been addressed before Accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures of the new Member States.

Additional assistance has also been provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee approved the Transitional Facility 2004 National Programme for Hungary on 17 June 2004. The programme was then approved by the Commission with Decision C (2004) 3025 of 11 August 2004, which was then notified to the national authorities.

Transition Facility funds are used to support institution building through twinning, twinning light, technical assistance, and investments to provide the necessary equipment in order to implement the acquis .

The Transition Facility 2004 National Programme for Hungary provides for:

AGRICULTURE € 2.57 MILLION

- Agri-Environmental Information and Monitoring System (AIMS)

- Implementation of new regulation – Forest Focus

- Upgrading the Information System of Variety Testing and Seed Certification

ENVIRONMENT € 3.59 MILLION

- Hungarian Nature Conservation Information System

- Noise Centre establishment to noise mapping

- Implementation of the Water Framework Directive (WFD) – Phase II

JUSTICE AND HOME AFFAIRS AND CUSTOMS € 6.58 MILLION

- Facilitating refugee integration in Hungary

- Competence-based, integrated system of human resources’ management at the Ministry of Interior

- Developments in the fields of public security and fight against organised crime

- Strengthening the capacity of the Special Service for National Security of Hungary

- Strengthening the administrative capacity of the HCFG

PUBLIC GOVERNMENT ADMINISTRATION AND CIVIL SOCIETY € 1.4 MILLION

- Improving Public Internal Financial Control System (PIFC), Audit Mechanisms

- Civil society organisations and the implementation of the anti-discrimination law

TRANSPORT POLICY € 2.25 MILLION

- Implementation of EU legislation related to digital tachographs

- Improvement of efficiency of infrastructure railway operation and of rolling stock maintenance operation

- Developing information system (IT) for registering the infrastructure of inland waterways

OTHER INSTITUTION BUILDING ACTIONS € 2 MILLION

- Unallocated IB Envelope

II) IMPLEMENTATION

- Phare 2001 – finalisation of payments

The disbursement deadline of 2001 Phare programme was 30 November 2004. For several projects, in particular those connected with support for the SME sector and with integration of the Roma minority, the disbursement deadline was extended by up to eleven months. On 1 May 2005, 95.25% of the programme had been contracted and 81% had been disbursed.

- Phare 2002 – rate of contracting (EDIS extensions)

The contracting deadline for the 2002 programme Parts I and II was 30 June 2004 for grant schemes, and 30 November 2004 for other projects. The contracting deadline for the grant schemes was extended to 30 September 2004. In addition, the Hungarian authorities were granted five extensions for projects from Part I and Part II of the programme. At the date of 1 May 2005, 91.49% of the funds from Part I and 89.48% of the funds from Part II had been contracted.

- Institution Building highlights

During the year 2004, a total of around € 330 million of pre-accession assistance from national allocation (not including horizontal and multi-country programmes) has been deployed in Hungary from Phare programmes (2001-2003).

2004 saw the completion of many institution-building activities in Hungary, of which the most significant were in the fields of agriculture and preparation for management of Structural Funds.

In agriculture, Phare supported software development for the Integrated Administration and Control System (IACS). Sufficient progress was made for Hungary to receive provisional accreditation for its IACS by the date of accession. Twinning projects provided vital assistance to complete preparation for accession in the fields of disease control (TSE and rabies), certification of feedstuffs and seeds, and setting up common market organisations (CMOs). In the field of food safety and consumer protection, a twinning supported the establishment of a Food Safety Office in Hungary, and IT and laboratory equipment was provided for a National Phytosanitary Diagnostic Control System.

Concerning preparation for management of Structural Funds, 2004 saw the final phase of a twinning supporting the establishment of Managing Authorities, and another twinning assisting the Ministry of Finance to establish appropriate systems of Public Internal Financial Control (PIFC) for Structural and Cohesion Funds. Meanwhile the Phare-funded Project Generation Facility made consultancy advice available for the preparation of high-quality proposals for Structural Funds support.

The Twinning instrument continues to be used successfully in many priority areas and helped Hungary to prepare for the implementation of EU policies and laws.

5.3. Results and Impact

i) State of play for JMC / SMSC development

On 1 May 2004, a revised JMC Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

The JMC meetings took place on 22 April 2004 and 19 October 2004 and were co-chaired by the EC and the NAC. The JMC meetings were fruitful and helped to address the problems concerning implementation of the ongoing programmes, to discuss horizontal/systemic issues and to identify possible solutions. Several immediate actions were agreed upon and deadlines set for their implementation.

ii) M&E Reports in 2004

Overall responsibility for monitoring and evaluation of the Phare programme in Hungary lies with the National Aid Coordinator (NAC)-Minister without portfolio responsible for co-ordination of European integration affairs. The actual decentralised Interim evaluation operation in Hungary started in January 2004 and is co-ordinated and supervised by the NAC, Department for Evaluation and Monitoring Administration.

A synthesis report was completed by the NAC in 2004 on the basis of the findings of the sectoral Interim Evaluation (Political criteria, Justice and Home Affairs, Internal Market, Envrinoment and water Management, Transport, Agriculture, Customs and financial affaris, Health and Social affairs, Regional Development, Cross-border co-operation, Social Cohesion, Small and Medium Sized Entreprises).

A Country Phare Evaluation Review (CPER) for Hungary prepared by an independent external evaluator under a centralised contract was issued in January 2004. The report provides a consolidated country review of the findings of the Interim Evaluation reports that were prepared between August 2001 and July 2003. It concluded that the programmes were in most cases relevant and closely related to meeting acquis requirements and to the introduction of EU compliant practices and procedures. Phare has also been instrumental in building administrative and judicial capacity. According to the report, there are a number of recurring inefficiencies, particularly delays in contracting and tendering, which affected programme implementation schedules. Most programmes are effective in achieving their objectives. The impact of Phare is most visible and direct from works projects and grant programmes. Other sectors bring less direct but equally significant value in terms of legal, health, environmental, economic, social and business impacts. Sustainability will be assured by the Government of Hungary’s commitment to maintaining EU standards.

I.6. LATVIA

6.1. Summary

In 2004, Latvia became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer of the Ministry of Finance of the Republic of Latvia submitted to the European Commission on 12 November 2003 a request to waive ex-ante controls on project selection, tendering and contracting for the management of Phare pre-accession aid under the Extended Decentralised Implementation System (EDIS) by the CFCA-Central Finance and Contract Agency and the SIF-Society Integration Foundation.

Through its Decision (C(2004) 2897), adopted and notified on 30 July 2004, the European Commission decided to confer management of aid provided under Phare to the agency responsible for the implementation of the Phare programmes in Latvia, the Central Finance and Contracting Agency (CFCA) and the Society Integration Foundation (SIF). As a result, procurement is carried out within an extended decentralised implementation system under the responsibility of these implementing agencies, and ex-ante control is no longer performed by the Commission Representation in Riga.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transition Facility programmes and monitoring of both Phare and Transition Facility programmes. The National Authorizing Officer (NAO) carries out the financial supervision.

6.2. Phare/pre-accession financial and Transition assistance in 2004

For the period 2004 – 2006, a Transition Facility has been created by Art 34 of the Act of Accession to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds. The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the Latvian authorities and the European Commission on 13 September 2004.

i) Programming

A total of € 6,679,100 was allocated under the 2004 Transition Facility budget for Latvia.

Although the most urgent needs as regards acquis implementation have been addressed before accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures on par with those of other Member States.

Additional assistance was also provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee approved the Transition Facility 2004 National Programme for Latvia in 17 June 2004. The programme was then approved by the Commission through its Decision C(2004) 3695 of 11 October 2004, which was notified to the national authorities on the same day.

Transition Facility funds are used to support institution building through twinning, twinning light, technical assistance, and investments to provide the necessary equipment in order to implement the Acquis.

The Transition Facility 2004 National Programme for Latvia provides for:

FREE MOVEMENT OF GOODS € 0.92 MILLION

- Strengthening the public procurement system, Food control (Beverages and Specific Foods)

STATISTICS € 0.65 MILLION

- Strengthening capacity in particular subject matter Divisions of the Central Statistical Bureau

SOCIAL POLICY AND EMPLOYMENT € 0.98 MILLION

- Regarding further development of occupational Health and Safety

ENERGY AND ENVIRONMENT € 0.84 MILLION

- Radioactive waste management and reactor decommissioning, strengthening data reporting on acidification, eutrophycation and integrated pollution

JUSTICE AND HOME AFFAIRS € 1.95 MILLION

- To strengthen the capacity of human resources in the Ministry of Justice, to develop dispute resolution systems and training of legal practitioners

ADMINISTRATIVE CAPACITY € 1.3 MILLION

- Institution building facility and evaluation of EU Funded measures

ii) Implementation

- Phare 2001 – finalisation of payments

By the end of 2004, 88% of the 2001 programmes had been contracted and 83% of the programmes had been disbursed.

- Phare 2002 – rate of contracting

By the end of 2004, 63% of the 2002 programmes had been contracted and around 47% disbursed. However, the Latvian authorities asked for extension of some projects.

- Institution building highlights

During the year 2004, a total of around € 116 million of pre-accession assistance from national allocation (not including horizontal and multi-country programmes) has been deployed in Latvia from Phare programmes (2001-2003) and Transition Facility.

In 2004, Twinning continued to remain a successful instrument in Latvia in many areas and has helped the Latvian administration to further strengthen its capacities to implement and enforce EC legislation.

6.3 Results and impact

i) State of play of JMC / SMSC development

On 1 May 2004, a revised JMC Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

For the year 2004, one JMC meeting took place chaired by the Latvian authorities. In this meeting problematic areas regarding project management were discussed and possible remedial actions proposed. Problematic sectors concern the areas of environment and nuclear safety, Justice and to a certain extent also the Social sector where operational efficiency needs to be improved.

ii) M & E Reports in 2004

Overall responsibility for monitoring of the Phare programme in Latvia lies with the Ministry of Finance. Throughout 2004, the NAC prepared Action plan for Monitoring and Evaluation in Latvia. Following the decentralisation of the Interim Evaluation function, the actual decentralised Interim Evaluation operation started in September 2004.

In 2004, interim evaluation reports were prepared by an independent evaluator and issued by NAC for the following sector: Regional Development/CBC, Energy, Market and Anti-trust Surveillance, Statistic, Social Sector, Civil Society, Health and Twinning Light.

A Country Phare Evaluation Review (CPER) for Latvia prepared by an independent evaluator, under the centralised contract, was issued in March 2004. The report provides a consolidated country review of the findings of Interim Evaluation reports that were prepared between August 2001 and July 2003. It concluded that Phare assistance has successfully supported Latvia’s accession process. It has induced institutional change and assisted in the transposition of the acquis into Latvia legislation. Successes were noted particularly where there was a clear national strategy, and the beneficiaries were committed, and well organised. Phare assistance has been largely effective in most sectors.

I.7. LITHUANIA

7.1. Summary

In 2004, Lithuania became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer for Lithuania submitted on 31 October 2003 to the European Commission a request to waive ex-ante controls on project selection, tendering and contracting for the management of Phare aid under Extended Decentralised Implementation System (EDIS) by the CPMA-Central Project Management Authority.

Through its Decision (C(2004) 2901), adopted and notified on 30 July 2004, the European Commission decided to confer management of aid provided under Phare to the agency responsible for the implementation of the Phare programmes in Lithuania, the Central Programme Management Agency (CPMA). As a result, procurement is carried out within an extended decentralised implementation system under the entire responsibility of the CPMA, and ex-ante control is no longer performed by the Commission Representation in Vilnius.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transition Facility programmes and monitoring of both Phare and Transition Facility programmes. The National Authorizing Officer (NAO) carries out the financial supervision.

7.2. Phare/pre-accession financial and Transition assistance in 2004

For the period 2004 – 2006, a Transition Facility has been created by Art 34 of the Act of Accession to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds. The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the Lithuanian authorities and the European Commission on 12 November 2004.

i) Programming

A total of € 22,435,000 million was allocated under the 2004 Transition Facility budget for Lithuania.

Although the most urgent needs as regards acquis implementation have been addressed before accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures on par with those of other Member States.

Additional assistance was also provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee approved the Transition Facility 2004 National Programme for Lithuania in October 2004. The programme was then approved by the Commission through its Decision C(2004) 4620 of 3 December 2004, which was notified to the national authorities on the same day.

The Transition Facility 2004 National Programme for Lithuania provides for:

AGRICULTURE, FISHERIES AND FOOD SAFETY € 7.68 MILLION

Common Agriculture Policy Reform, on control of veterinary medicinal products and feeding stuffs, strengthening the border veterinary control system, control of food safety and residues, common market organisations for fishery products, a control system of plant origin production, biocidal products management as well as control of animal health and food safety through implementation of veterinary information management system

JUSTICE AND HOME AFFAIRS € 5.15 MILLION

Crime prevention and investigation regarding intellectual property rights and cyber-crimes; training and qualification system for police officers; international police co-operation in the fight against organised crime; and on the development of a customs data warehouse

ENVIRONMENT € 1.81 MILLION

Ambient air quality modelling; and raising qualification skills for protected areas managers

ADMINISTRATIVE CAPACITY € 7.78 MILLION

Improvement of public debt and cash management function; development of a risk management system for tax collection; strengthening capacities in railway transport; development of ionising radiation measurement infrastructure; new acquis in statistic; and Nemunas river basin management, Unallocated Institution Building Envelope to provide for twinning light and technical assistance

ii) Implementation

- Phare 2001 – finalisation of payments

By the end of 2004, 88% of the 2001 programmes had been contracted and 90% of the programmes had been disbursed.

- Phare 2002 – rate of contracting

By the end of 2004, 83% of the 2002 programmes had been contracted and around 44% disbursed. However, the Lithuanian authorities asked for extensions of the 2002 programme (part II) and for a project from the 2002 programme (part III). Certain projects received extensions and are thus ongoing.

- Institution building highlights

During the year 2004, a total of around € 111 million of pre-accession assistance from national allocation (not including horizontal, multi-country, and nuclear or Kaliningrad programmes) has been deployed in Lithuania from Phare programmes (2001-2003).

On the whole Lithuania has made good use of Phare assistance to support the accession process. Harmonisation of legislation, institution building and investment with the support of the Phare assistance progressed well.

In 2004, Twinning continued to remain a successful instrument in Lithuania in many areas and has helped the Lithuanian administration to further strengthen its capacities to implement and enforce EC legislation.

7.3 Results and impact

i) State of play of JMC / SMSC development

On 1 May 2004, a revised JMC Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

In 2004, one Joint Monitoring Committee meeting took place in April 2004. At this meeting issues regarding project management were discussed and possible remedial actions proposed to address problems identified. In particular issues were discussed related to projects in the field of Nuclear safety and Environment, Customs, Economic and Social cohesion grant schemes and possible remedial action was proposed.

ii) M & E Reports in 2004

National Aid Coordinator (NAC) has overall responsibility for monitoring and evaluation of Phare programme. In his/her duties it is assisted by the Financial Assistance Department (EU assistance coordination division) of the Ministry of Finance. The NAC prepared Action Plan on decentralisation of monitoring and evaluation in Lithuania in February 2004.

In 2004, interim evaluation reports were prepared by an independent external evaluator and issued by the NAC in the following sectors: Agriculture, Environment, Justice and home affairs, Social affairs and Public administration, Public Finance and Customs.

A Country Phare Evaluation Review (CPER) for Lithuania prepared by an independent evaluator, under a centralised contract, was issued in January 2004. The report provides a consolidated country review of the findings of Interim Evaluation reports that were prepared between August 2001 and July 2003. It concluded that on the whole Lithuania has made good use of Phare assistance to support the accession process. Harmonisation of legislation, institution building and investment with the support of the Phare assistance is progressing well. National Aid Co-ordination structures have been significantly strengthened and as a result project design has been improving. However, because the introduction of Economic and Social Cohesion projects has brought an increase in the number of actors unfamiliar with the requirements of designing Phare projects, further work is needed to support programme and project design.

I.8. MALTA

8.1. Summary

In 2004, Malta became a full member of the European Union. Pre-accession assistance programmed since 2001 continued to be successfully implemented in order to address remaining needs related i.a. to compliance with the acquis requirement and improvement of the administrative capacity. In addition, for the period 2004-2006, a Transition Facility has been created to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds.

In order to manage this assistance, the National Authorising Officer of Malta has submitted to the European Commission on 12 April 2002 and 17 April 2003 requests to waive ex-ante controls on project selection, tendering and contracting for the management of pre-accession aid under Extended Decentralised Implementation System (EDIS)) for the Department of Contracts in the Ministry of Finance.

Through its Decision (C(2004) 2132), adopted and notified on 21 June 2004, the European Commission decided to confer the management of aid on an extended decentralised (EDIS) basis to Malta. From this date, procurement dossiers no longer require the ex-ante control of the European Commission services. The Department of Contacts within the Ministry of Finance is now responsible for ex-ante control, tendering and contacting. The Implementing Agencies are in charge of the technical part of implementation and are now fully responsible for the daily implementation of the projects.

The National Aid Co-ordinator (NAC) exercises the programming function for the Transition Facility programmes and monitoring of both Pre-Accession and Transition Facility programmes. The National Authorizing Officer (NAO) has overall authority and responsibility for the implementation of Pre-Accession and Transition Facility funds.

8.2. Pre-accession financial and Transition assistance in 2004

For the period 2004-2006, a Transition Facility has been created by Art 34 of the Act of Accession to address the continued need for strengthening institutional capacity in certain areas through actions which cannot be financed by the Structural Funds. The implementation of EU assistance available under the Transition Facility is managed by the Memorandum of Understanding on the Implementation of the Transition Facility signed between the Estonian authorities and the European Commission on 10 August 2004.

i) Programming

A total of € 11,800,000 was allocated to Malta under the 2004 Transition Facility budget. Although the most urgent needs as regards acquis implementation have been addressed before Accession, the Transition Facility provides further support in order to consolidate the functioning of administrative structures on par with those of other Member States.

Additional assistance was also provided through Multi-country/Horizontal programmes, Sigma, TAIEX, OLAF, etc.

The Phare Management Committee approved the Transition Facility 2004 National Programme for Malta in July 2004. The programme was then approved by the Commission through its Decision C(2004) 3068 of 12 August 2004, which was notified to the national authorities on the same day.

Transition Facility funds are used to support institution building through twinning, twinning light, technical assistance, and investments to provide the necessary equipment in order to implement the acquis .

The Transition Facility 2004 National Programme for Malta provides for:

TRADE-INTERNAL MARKET € 2.58 million

- Further institutional building, consolidation and strengthening of MSA

- Additional support in specific technical areas for the continued effective implementation and operation of the market surveillance system in Malta

- Upgrading the National Blood Transfusion Service to quality standards as specified in Directive 2002/98/EC

- Strengthening the overall capacity of the Department of Public Health to enforce the control of the foodstuffs acquis

- Intellectual property awareness, training and enforcement

TRANSPORT POLICY € 0.98 million

- Capacity building at the Malta Maritime Authority

JUSTICE AND HOME AFFAIRS € 0.98 million

- Strengthening Malta’s capacity to issue visas

- The development of the border management control in Malta

- Modular training program for the enhancement of the asylum system in Malta

- Capacity building in the justice sector

- Measures to implement a radio network infrastructure for 112 call related emergency service providers in line with EU norms and standards

SOCIAL POLICIES AND EMPLOYMENT € 0.55 million

- Institutional Building of the Occupational Health and Safety Authority

- Capacity strengthening of the Department of Social Security to co-ordinate social security schemes

AGRICULTURE € 1 million

- Capacity building in the Food and Veterinary Regulation Division

ENVIRONMENT € 1.2 million

- Building capacity to implement the air pollution monitoring and mitigation measures required under the Air Quality Framework Directive 96/62/EC

- Building capacity to introduce the polluter pays principle through economic instruments to implement the EU Environmental acquis

- Strengthening institutional capacity for the implementation of the nature protection acquis

- Technical assistance for the development of implementation systems for the producer responsibility directives

ADMINISTRATIVE CAPACITY € 4.48 million

- Institution building facility

- Continuation of the National Statistics Office programme of strengthening its institutional capacity to integrate it into the European Statistical System

- Strengthening of the overall capacity of the VAT Department and the Tax Compliance Unit to adequately implement and control the VAT system and to combat evasion and fraud in the field of VAT

- Measures to assist the Customs Department in ensuring that new areas of work post-accession meet all the requirements

- Capacity building for Malta Enterprise

- Capacity building programme in Information Security

- The development of university-based courses to strengthen Malta’s capacity in the field of translation

- The development of university-based courses to strengthen Malta’s capacity in the field of interpretation

ii) Implementation

- PAP 2001 – finalisation of payments

The disbursement deadline of 2001 Pre-Accession programme was 30 September 2004. At that date, 90.65% of the programme had been contracted successfully. 80.9% of the programme had been disbursed, while three projects of the 2001 Programme had been extended and were ongoing.

- PAP 2002 – rate of contracting

At the end of the contracting period for the 2002 programme on 30 April 2004, 98.89% of the programme had been contracted. The Maltese authorities requested no extensions for the 2002 programme.

- Institution Building highlights

During the year 2004, a total of around € 24.78 million of pre-accession assistance from national allocation (not including horizontal and multi-country programmes) has been deployed in Malta from PAP (2001-2003).

Implementation of PAP in Malta is considered overall satisfactory in the area of Environment, Agriculture and others sectors like JHA, Internal market, etc.

The Twinning instrument continues to be used successfully in many priority areas and helped Malta to prepare for the implementation of EU policies and laws.

8.3. Results and Impact

i) State of play for JMC / SMSC development

On 1 May 2004, a revised JMC Mandate came into effect in the new member states. The new JMC mandate stipulated that the JMC meetings are chaired by the NAC. It also reinforced an integrated monitoring and evaluation system. Above all, an Implementation Status Report was introduced which provides for a consolidation of the findings of sectoral monitoring, financial reporting and evaluation reports.

In 2004, the only Joint Monitoring Committee (JMC) meeting took place on 29-30 March 2004 and was co-chaired by the EC and the NAC. Given the absence of sub-committees in Malta previous to the introduction of the new JMC mandate, this meeting helped to review in detail the implementation of the projects in each sector. In the year 2004, the first round of Sector Monitoring Sub-Committee (SMSC) meetings took place in November. There are three SMSCs and each SMSC is chaired by the NAC and includes the NAO and the Department of Contracts as core members.

ii) M&E Reports in 2004

Overall responsibility for monitoring and interim evaluation of the Pre-Accession and Transition Facility programmes in Malta lies with the NAC services located at the Office of the Prime Minister (OPM).

In 2004, two interim evaluation reports were prepared by an independent external evaluator and issued by the NAC. Due to the small size of the Malta PAP, the analyses looked at the overall programme and not sector by sector.

A Country Summary Evaluation Report (CPER) for Malta prepared by an independent external evaluator, under a centralised contract, was issued on 22 November 2004. The report concluded that all the projects were relevant and have facilitated the adoption of the acquis . Only a