EN - 0 -  EN  
EN - 1   EN  EUROPEAN COMMISSION  
Brussels, 23.12.2009 
SEC(2009)1719 
COMMISSION STAFF WORKING DOCUMENT 
BACKGROUND DOCUMENT  TO THE REPORT FROM  THE COMMISSION TO 
THE COUNCIL, THE EUROPEAN PA RLIAMENT AND THE EUROPEAN 
ECONOMIC AND SOCIAL COMMITTEE 
 
2008 ANNUAL REPORT ON THE IMPLEM ENTATION OF THE INSTRUMENT 
FOR PRE-ACCESSION ASSISTANCE (IPA) 
{COM(2009)699 final} 
 - 2 -  TABLE OF CONTENTS 
PART I: COUNTRY SECTION .............................................................................................. 11 
1. ALBANIA.................................................................................................................. 11 1.1. The year in review...................................................................................................... 11  
1.1.1.  Political developments ............................................................................................. 11 
1.1.2.  Macroeconomic developments and structural reforms ........................................ 11 
1.1.3.  Progress in meeting the acquis communautaire .................................................... 11 
1.2. IPA in 2008 ............................................................................................................... . 12 
1.2.1.  MIPD 2008-2010 ....................................................................................................... 12 
1.2.2.  Programming exercise ............................................................................................. 13 
1.2.2.1 Component I: Transition assistance and Institution Building                                      13 
1.2.2.2  Component II: Cross-Border Cooperation                                                                  14 
1.2.3.  Implementation Modalities and Structures ........................................................... 15 
1.2.4.  Overview of IPA programmes implemented ......................................................... 15 
1.2.4.1. Component I Transition Assistance and Instit ution Building                                      15 
1.2.4.2. Component II: Cross-Border Cooperation                                                                  16 
1.2.5.  Participation in Community  Programmes and Agencies ..................................... 16 
1.3. Monitoring and Results.............................................................................................. 16 1.3.1.  Monitoring ................................................................................................................ 16 
1.3.2.  Evaluation results and lessons learned ................................................................... 16 
1.3.3.  Sectors with positive results - Success story ......................................................... 16 
2. BOSNIA and HERZEGOVINA ................................................................................ 17 2.1. The year in review...................................................................................................... 17  
2.1.1.  Political developments ............................................................................................. 17 
 - 3 -  2.1.2.  Macroeconomic developments and structural reforms ........................................ 17 
2.1.3.  Progress in meeting the acquis communautaire .................................................... 17 
2.2. IPA in 2008 ............................................................................................................... . 18 
2.2.1.  MIPD 2008-2010 ....................................................................................................... 18 
2.2.2.  Programming exercise ............................................................................................. 19 
2.2.2.1. Component I: Transition Assistance and Institut ion Building                                     20 
2.2.2.2.  Component II: Cross-Border Cooperation                                                                 21 
2.2.3.  Implementation modalities and Structures ........................................................... 21 
2.2.4.  Overview of IPA programmes implemented ......................................................... 22 
2.2.4.1.  Component I Transition Assistance and Inst itution Building                                     22 
2.2.4.2.  Component II: Cross-Border Cooperation                                                                 22 
2.2.5.  Participation in Community  Programmes and Agencies ..................................... 23 
2.3. Monitoring and Results.............................................................................................. 23 2.3.1.  Monitoring ................................................................................................................ 23 
2.3.2.  Evaluation results and lessons learned ................................................................... 23 
2.3.3.  Sectors with positive results - Success story ......................................................... 23 
3. CROATIA.................................................................................................................. 24 3.1. The year in review...................................................................................................... 24  
3.1.1.  Political developments ............................................................................................. 24 
3.1.2.  Macroeconomic developments and structural reforms ........................................ 24 
3.1.3.  Progress in meeting the acquis communautaire .................................................... 24 
3.2. IPA in 2008 ............................................................................................................... . 25 
3.2.1.  MIPD 2008-2010 ....................................................................................................... 25 
3.2.2.  Programming exercise ............................................................................................. 26 
 - 4 -  3.2.2.1. Component I: Transition Assistance and Institut ion Building                                     26 
3.2.2.2. Component II: Cross-Border Cooperation                                                                  28 
3.2.2.3. Components III and IV: Strategic Coherence Framework                                          29 
3.2.2.4. Component III: Regional Development                                                                       29 
3.2.2.5.Component IV: Human Resources Development                                                          30 
3.2.2.6. Component V: Rural Development                                                                              30 
3.2.3.  Implementation Modalities and Structures ........................................................... 30 
3.2.4.  Overview of IPA programmes implemented ......................................................... 32 
3.2.5.  Participation in Community  Programmes and Agencies ..................................... 32 
3.3. Monitoring and Results.............................................................................................. 32 
3.3.1.  State of play for IPA Monitoring Committee and Sectoral Monitoring 
Committees ............................................................................................................... 32 
3.3.2.  Annual and final reports on implementation ........................................................ 33 
3.3.3.  Evaluation results and lessons learned ................................................................... 34 
3.3.4.  Sectors with positive results- Success story ........................................................... 34 
4. FORMER YUGOSLAV REPU BLIC of MACEDONIA .......................................... 35 
4.1. The year in review...................................................................................................... 35  
4.1.1.  Political developments ............................................................................................. 35 
4.1.2.  Macroeconomic developments and structural reforms ........................................ 36 
4.1.3.  Progress in meeting the acquis communautaire .................................................... 36 
4.2. IPA in 2008 ............................................................................................................... . 36 
4.2.1.  MIPD 2008-2010 ....................................................................................................... 36 
4.2.2.  Programming exercise ............................................................................................. 37 
4.2.2.1.  Component I: Transition Assistance and Institution Building ................................... 38 
4.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 39 
 - 5 -  4.2.2.3.  Components III and IV: Strategic Coherence Framework ........................................ 39 
4.2.2.4.  Component III: Regional Development ..................................................................... 40 
4.2.2.5.  Component IV: Human Resources Development ....................................................... 40 
4.2.2.6.  Component V: Rural Development ............................................................................ 40 
4.2.3.  Implementation Modalities and Structures ........................................................... 41 
4.2.4.  Overview of IPA programmes implemented ......................................................... 41 
4.2.4.1.  Component I: Transition Assistance and Institution Building ................................... 42 
4.2.4.2.  Component II: Cross-Border Cooperation ................................................................ 42 
4.2.4.3.  Component III: Regional Development ..................................................................... 43 
4.2.4.4.  Component IV: Human Resources Development ....................................................... 43 
4.2.4.5.  Component V: Rural Development ............................................................................ 43 
4.2.5.  Participation in Community  Programmes and Agencies ..................................... 43 
4.3. Monitoring and Results.............................................................................................. 44 
4.3.1.  State of play for IPA Monitoring Committee and Sectoral Monitoring 
Committees ............................................................................................................... 44 
4.3.2.  IPA Monitoring Committee .................................................................................... 44 
4.3.2.1.  Component I ............................................................................................................... 44 
4.3.2.2.  Component II .............................................................................................................. 44 
4.3.2.3.  Component III ............................................................................................................ 44 
4.3.2.4.  Component IV ............................................................................................................. 44 
4.3.2.5.  Component V .............................................................................................................. 45 
4.3.3.  Annual and final reports on implementation ........................................................ 45 
4.3.4.  Evaluation results and lessons learned ................................................................... 45 
4.3.5.  Sectors with positive results – Success story .......................................................... 45 
5. KOSOVO (under UNSCR 1244/99).......................................................................... 46 
 - 6 -  5.1. The year in review...................................................................................................... 46  
5.1.1.  Political developments ............................................................................................. 46 
5.1.2.  Macroeconomic developments and structural reforms ........................................ 46 
5.1.3.  Progress in meeting the acquis communautaire .................................................... 46 
5.2. IPA in 2008 ............................................................................................................... . 47 
5.2.1.  MIPD 2008-2010 ....................................................................................................... 47 
5.2.2.  Programming exercise ............................................................................................. 48 
5.2.2.1.  Component I: Transition Assistance and Institution Building ................................... 48 
5.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 49 
5.2.3.  Implementation modalities and structures ............................................................ 49 
5.2.4.  Overview of IPA programmes implemented ......................................................... 49 
5.2.4.1.  Component I: Transition Assistance and Institution Building ................................... 50 
5.2.4.2.  Component II: Cross-Border Cooperation ................................................................ 50 
5.2.5.  Participation in Community  Programmes and Agencies ..................................... 50 
5.3. Monitoring and Results                                                                                                50 
5.3.1.  Monitoring ................................................................................................................ 50 
5.3.2.  Evaluation results and lessons learned ................................................................... 50 
5.3.3.  Sectors with positive results- Success story .......................................................... 50 
6. MONTENEGRO........................................................................................................ 52 
6.1. The year in review...................................................................................................... 52  
6.1.1.  Political developments ............................................................................................. 52 
6.1.2.  Macroeconomic developments and structural reforms ........................................ 52 
6.1.3.  Progress in meeting the acquis communautaire .................................................... 53 
6.2. IPA in 2008 ............................................................................................................... . 53 
 - 7 -  6.2.1.  MIPD 2008-2010 ....................................................................................................... 53 
6.2.2.  Programming exercise ............................................................................................. 54 
6.2.2.1.  Component I: Transition Assistance and Institution Building ................................... 54 
6.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 55 
6.2.3.  Implementation modalities and structures ............................................................ 56 
6.2.4.  Overview of IPA programmes implemented ......................................................... 56 
6.2.5.  Participation in Community  Programmes and Agencies ..................................... 56 
6.3. Monitoring and Results.............................................................................................. 56 6.3.1.  Monitoring ................................................................................................................ 56 
6.3.2.  Evaluation results and lessons learned ................................................................... 57 
6.3.3.  Sectors with positive results - Success story ......................................................... 57 
7. SERBIA...................................................................................................................... 58 
7.1. The year in review...................................................................................................... 58  
7.1.1.  Political developments ............................................................................................. 58 
7.1.2.  Macroeconomic developments and structural reforms ........................................ 58 
7.1.3.  Progress in meeting the acquis communautaire .................................................... 58 
7.2. IPA in 2008 ............................................................................................................... . 59 
7.2.1.  MIPD 2008-2010 ....................................................................................................... 59 
7.2.2.  Programming exercise ............................................................................................. 60 
7.2.2.1.  Component I: Transition Assistance and Institution Building ................................... 60 
7.2.2.2.  Component II: Cross–Border Cooperation ............................................................... 64 
7.2.3.  Implementation modalities and structures ............................................................ 64 
7.2.4.  Overview of IPA programmes implemented ......................................................... 64 
7.2.5.  Participation in Community  Programmes and Agencies ..................................... 65 
 - 8 -  7.3. Monitoring and Results.............................................................................................. 65 
7.3.1.  Monitoring ................................................................................................................ 65 
7.3.2.  Evaluation results and lessons learned ................................................................... 66 
7.3.3.  Sectors with positive results - Success story box ................................................... 66 
8. TURKEY.................................................................................................................... 67  
8.1. The year in review...................................................................................................... 67  
8.1.1.  Political developments ............................................................................................. 67 
8.1.2.  Macroeconomic developments and structural reforms ........................................ 67 
8.1.3.  Progress in meeting the acquis communautaire .................................................... 67 
8.2. IPA in 2008 ............................................................................................................... . 68 
8.2.1.  MIPD 2008-2010 ....................................................................................................... 68 
8.2.2.  Programming exercise ............................................................................................. 69 
8.2.2.1.  Component I: Transition Assistance and Institution Building ................................... 70 
8.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 71 
8.2.2.3.  Components III and IV: Strategic Coherence Framework ........................................ 71 
8.2.2.4. Component III: Regional Development                                                                       72 
8.2.2.5.  Component IV: Human Resources Development ....................................................... 73 
8.2.2.6.  Component V: Rural Development ............................................................................ 73 
8.2.3.  Implementation modalities and structures ............................................................ 73 
8.2.4.  Overview of IPA programmes implemented ......................................................... 74 
8.2.5.  Participation in Community  Programmes and Agencies ..................................... 75 
8.3. Monitoring and Results.............................................................................................. 75 
8.3.1.  State of play for IPA Monitoring Committee and Sectoral Monitoring 
Committees ............................................................................................................... 75 
8.3.1.1.  IPA Monitoring Committee ........................................................................................ 75 
 - 9 -  8.3.1.2.  Sectoral Monitoring Committees ............................................................................... 76 
8.3.2.  Annual and Final Reports on Implementation ...................................................... 76 
8.3.3.  Evaluation results and lessons learned ................................................................... 77 
8.3.4.      Sectors with positive results-Success story ………………………………………77  
PART II: MULTI-BENEFICIARY  AND REGIONAL PROGRAMMES ............................. 78 
9. The year 2008 in review............................................................................................  78 
9.1. Overview of IPA Programmes implemented………………………………………..78 9.1.1.  Addressing the political criteria …………………………………………………   78 
9.1.1.1.  Human Rights and the Pr otection of Minorities ……………………………………  78 
9.1.2.  Regional issues and international obligations …………………………………..   78 
9.1.2.1.   Regional Cooper ation Initiatives……………………………………………………78 
9.1.2.2.   Public Administration (The Regional School for Public Administration (ReSPA)) 79 
9.1.2.3.   Disaster Risk Reduction…………………………………………………………….79 9.1.2.4.   Civil Society……………………………………………………………………….  79 9.2. Addressing the Economic Criteria ............................................................................. 80 9.2.1.  Cooperation with Internatio nal Financial Institutions ………………………….80 
9.2.2.  Education and youth ………………………………………………………………81 
9.3. Ability to assume the obligations of me mbership and approximation to European 
Standards.................................................................................................................... 82  
9.3.1.  Customs and taxation .............................................................................................. 82 
10. IPA in 2008 ................................................................................................................ 82 
10.1. MIPD 2008-2010 ....................................................................................................... 82 10.2. Programming exercise................................................................................................ 83 10.3. Implementation modalities and structures ................................................................. 84 
 - 10 -   10.4. Overview of IPA programmes implemented ............................................................. 84 
10.5. Participation in Community  Programmes and Agencies ........................................... 84 
11. Monitoring and Results.............................................................................................. 84 11.1. Monitoring............................................................................................................... ... 84 
11.2. Evaluation results....................................................................................................... 85 
11.3. Sectors with positive results- Success story............................................................... 85 
PART III: TECHNICAL AND FI NANCIAL ASSISTANCE ................................................ 87 
1. Twinning .................................................................................................................... .......... 87 
2. TAIEX....................................................................................................................... ........... 88 
3. SIGMA....................................................................................................................... .......... 89 
PART IV: FINANCIAL DATA............................................................................................... 90 
1. IPA funds by year........................................................................................................... ...... 90 
2. IPA funds by country ....................................................................................................... ..  95 
 - 11 -   PART  I: COUNTRY  SECTION 
1. ALBANIA 
1.1. The year in review  
1.1.1.  Political developments 
In 2008, Albania made some progress on democracy and the rule of law a nd continued to play 
a constructive role in terms of stability  and good regional cooperation. The Albanian 
parliament adopted major constitutional amendm ents and important legislative acts on the 
organisation of the judiciary. Howe ver, it still remain ed much to be done in order to ensure 
the independence, transparency and efficiency of the judiciary. Improvements are needed to 
establish an independent, efficien t and merit-based civil service.  
There was some progress in the fight agains t corruption and the perception of corruption 
improved slightly. But further e fforts are required as corruption still remained widespread and 
continued to be a serious problem. Fighting corr uption in the judiciary remains a key issue. 
There was progress on consolid ating property rights and the legislative and institutional 
framework improved in the area of human rights and the protec tion of minorities, but overall 
progress remained limited as regards pr otection of women and minorities, and anti-
discrimination policy for children. New prisons a nd pre-trial detention centres were built but 
very poor detention standards remain ed an issue of serious concern. 
Civil society organisations remained weak a nd their participation in policy-making required 
further strengthening.  
1.1.2.  Macroeconomic developments and structural reforms 
In 2008, the economy of Albania c ontinued growing at a relative ly fast pace. Inflationary 
pressures were contained and the country pr ogressed towards estab lishing a functioning 
market economy. While macroeconomic stability was broadly maintained, risks increased as 
the current account deficit widened. The admi nistration of public finances improved and 
State-induced distortions of competition rema ined limited. The government intensified its 
fight against corruption and tax evasion but the large informal sector remained an important 
challenge. Privatisation of large-scale state- owned companies progressed and the business 
environment improved, but unreliable energy suppl y, poor infrastructure, as well as weak rule 
of law and contract enforcement conti nued to hinder economic development.  
1.1.3.  Progress in meeting the acquis communautaire 
Overall, Albania made progress, albeit uneve nly, in aligning its legi slation, policies and 
capacity with European standards and in impl ementing its Interim Agreement commitments.  
In some areas, such as customs and compet ition, progress made in previous years was 
sustained. There were also positive develo pments on SME (Small and Medium-sized 
Enterprise) policy and in the field of electro nic communications. In other areas, such as 
energy, transport and intellect ual property rights, progress  remained limited. The legal 
framework on food safety, veterinary and phytos anitary policy improved, but compliance with 
EU standards remained poor hindering Albania's capacity to export. Over all, administrative 
capacity and implementation of legislation remained weak.  
In the field of justice, freedom and securit y, some progress was made in most areas, but 
further improvements are needed ov erall. Regarding visas, a relia ble civil registry and address 
system was set up to improve document securi ty. The law on foreigners was adopted. The 
EC-Albania visa facilitation agreement entered into force and the visa liberalisation dialogue 
 - 12 -   was launched. But distribution of biometric passports needs to be stepped up. The visa regime 
is not yet in line with EU standards. Border control improved as a result of a new law on border management, better infrastructure 
and inter-agency co-operation. The legal fr amework and co-operati on between banks and 
financial institutions on money laundering improve d.  However, organised crime remained a 
serious problem despite improvements in the legal framework and better co-operation with 
Interpol. A strategy to combat trafficking in  human beings has been adopted, but much 
remains to be done, as Albania remained a signi ficant country of origin for trafficking of 
human beings.  
 
1.2. IPA in 2008 
1.2.1.  MIPD 2008-2010 
 As a potential candidate countr y, Albania benefits from the first two Components of IPA, 
including Component I for Transition Assistan ce and Institution Building and Component II 
for Cross-Border Cooperation. During the ye ar 2008, the Multi-annual In dicative Planning 
Document (MIPD) 2008-2010 was adopted, and the MIPD 2009-2011 was prepared. 
The indicative allocations to Albania under th e Multi-annual Indicative Financial Framework 
(MIFF) for 2008-2010 amount to €245.1 million, as sp ecified below in Table 1. Assistance is 
in line with the recommendations of the 2007 En largement Strategy and Progress Report, the 
European Partnership priorities and will addr ess the requirements under the Stabilisation and 
Association Agreement (SAA). The assistance to Albania in the 2008-2010 peri od addresses key issues such as public 
administration reform and rule of law enforcement, in particular as regards good governance and anti-corruption measures. This emphasis is re flected in an increase of funds allocated to 
the area of political requirements. Strengthening the administrative capacity in view of the implementation of the SAA is given a high prior ity to support the Albanian authorities in 
fulfilling the requirements of the SAA. There is a need to further support structural reforms in 
the country and to invest in related infrastructure, in particular in the area of regional development and acquis  related infrastructure. 
IPA support under the Transition Assistance and Institution Building Component amounts to 
€214.7 million.  IPA support for Cross-Border Co-operation amounts to €30.4 million and addresses cross-
border activities between Albania and EU Member States as well as with adjacent Candidate 
and potential Candidate C ountries, complementing the above sub-components.  
 
Table 1: Albania: Multi-annual Indica tive Financial Framework in million € 
 
 Component 2008 2009 2010 2008-2010 
I. Transition Assistance and 
Institution Building  61.1 70.9 82.7 214.7 
II. Cross-Border Cooperation 9.6 10.3 10.5 30.4 
Total 70.7 81.2 93.2 245.1 
 - 13 -   1.2.2.  Programming exercise 
Table 2: Indicative financial  allocation for Albania per component for the year 2008  
(In million €, to nearest €10,000) 
Albania 2008 
I. Transition Assistance and Institution Building 62.12   
Of which: National programme 
(Including Kukes region programme, 
i.e. funds transferred from IPA Component II 
to IPA Component I) 60.92  
Nuclear Safety Programme 0.20  
Tempus Programme 1.00 
II. Cross-Border Cooperation1 8.58  
Of which : CBC Programme Albania -Montenegro 0.75 
CBC Albania – the former Yugoslav Republic of Macedonia 0.75 
CBC Albania - Greece in ERDF 1.49 
CBC Adriatic in ERDF (Decentralised2) 5.39 
ERDF (South East Europe programme)  0.20 
  
Total 70.7 
 
 
1.2.2.1   Component I: Transition Assi stance and Institution Building 
 
The IPA 2008 National Programme for Albania  was adopted by the Commission on 19 
December 2008. IPA 2008 for Albania addresses key issues such as public administration 
reform and rule of law enforcement, particul arly in the fields of  good governance and anti-
corruption. This reflects the increase of funds a llocated to the area of political requirements 
under MIPD 2008-2010. Additionally, the programme supports the Albanian authorities in 
fulfilling the requirements of the SAA by fundi ng projects which aim at strengthening the 
administrative capacities of the Albanian Institu tions. The Programme also reflects the need to 
further support structural reforms in the coun try by investing, in par ticular, in the area of 
regional development and acquis related infrastructure. 
  
                                                
 
1 Programmes for component II are adopted for three y ears. Financial commitments are made annually and 
therefore figures abov e are just for 2008.   
2  As regards the Cross Border Cooperation IPA project "Adriatic in ERDF" – Shared Management, whose IPA 
allocation for 2008 is EUR 5.4 million, the European Commission's Delegation is not the Contracting Authority. 
 - 14 -   Table 3: Component I - Transition Assistanc e and Institution Build ing 2008 for Albania (in 
million €):  
Priority Axis Projects Budget 
Political Requirements   
 SAA Implementation 2.00 
 Ministry of Works & Transport 1.00 
 Civil Service Reform 1.00 
 Public Procurements 1.50 
 Treasury System  1.50 
 Penitentiary Infrastructure 5.50 
 Customs Procedures 3.50 
 Against Corruption 2.00 
 Project Preparation Facility 1.00 
Economic Requirements   
 Secondary and Local Roads 8.00 
 Vocational Education & Training 7.00 
 Kukes Region 1.01 
Ability to assume the 
obligations of EU membership   
 Metrology Infrastructure 3.00 
 Rural Development 2.00 
 Competition & State Aid 1.50 
 Copyright Office 0.80 
 Central Bank 1.00 
 Zoonotic Diseases 5.70 
 Civil Aviation Safety 1.00 
 Highway Routes 2.50 
 Maritime Sector 3.10 
 Control System in Fisheries 2.00 
 Environmental Monitoring 2.00 
 Community Programmes 1.30 
Total  60.91 
 
 
1.2.2.2   Component II: Cross-Border Cooperation  
 
IPA Component II supports the participation of Albania in  two bilateral cross–border 
programmes with neighbouring can didate/potential candidate c ountries: Montenegro and the 
former Yugoslav Republic of Macedonia. With  regards to cross–bo rder cooperation with 
Member States, IPA Component II finances a bilateral programme Al bania–Greece and the 
participation of Albania in the multilatera l cross–border programme "Adriatic", where 
Albania, Bosnia and Herzegovi na, Croatia, Montenegro and Se rbia cooperate with Greece, 
Italy and Slovenia across the Adriatic Sea. Moreover, IPA Component II also finances a 
unilateral programme con cerning the development of the Ku kes region of Albania, bordering 
Kosovo, as well as the partic ipation of Albania in the ER DF transnational programme 
"South–East Europe". All Component II programmes involving Albania,  except those with Member States, were 
presented to the IPA Committ ee on 29/30 October and were adopted by the Commission on 
 - 15 -   18/20 December. Although being prepared in  2007, the cross–border programmes with 
Member States (with Greece and the Adriatic) we re adopted in March 2008. To be noted, as a 
condition for its implementation, the CBC progra mme with Greece – which should be put into 
operation according to the tran sitional arrangements referred to in Article 99 of the IPA 
Implementing Regulation No 718/2007 – required a parallel adoption decision covering the 
Greek side of the border (a dopted in September 2008).  
1.2.3.  Implementation modalities and structures  
All IPA assistance in Albania is carried out under centralised management. The work leading 
to decentralised management with ex ante  controls is progressing. The government has set up 
the basis for the institutions that will be re sponsible for decentralised management. The 
Competent Accrediting Officer (CAO), the Na tional Authorising Officer (NAO), and the 
Programme Authorising Offi cer (PAO) were nominated. 
In 2008 the road map for decentralised management was prepared but it was only finalised outside the reporting period.  
1.2.4       Overview of IPA programmes implemented 
In 2008, the first IPA 2007 projects were contra cted. IPA 2008 was launched, but no projects 
were contracted. At the end of 2008, contra cting rates for the IPA 2007 programmes had 
reached 15% and 0% for IPA 2008, as shown below in Table 2.  
  Allocated  Contracted RAC  % contractedPaid  RAL  % paid
 
1.2.4.1.    Component I – Transition A ssistance and Institution Building 
In 2008, the following IPA 2007 projects were contracted: 
The project 'Police Assistance Mission of the European Community to Albania (PAMECA 
III)' was contracted in 2008 and started its activities on 5 May 2008. The Team is composed 
of a group of experts drawn from 3 Member States (United Kingdom, Austria and Sweden) 
and spams across the entire spec trum of activities of the Al banian State Police, including 
Organised Crime, Terrorism, Integrated Border  Management, Human, Financial and Material 
Resources Management, Community Policing and others. The project has proven so far 
successful in highlighting areas needing furt her improvement towards building a credible 
Police Force in Albania, and in identifying suitab le strategic and tactical actions to achieve 
that goal.  The project of technical assistan ce to the Preparation of the Albanian Authorities for the EU 
decentralised management was contracted in  December 2008 (amount allocated: €1 million). 
The overall objective of the project is to adeq uately prepare the Albanian Authorities for 
absorbing EU financial assistance, putting into place efficient structures and strengthening the 
capacities of key institutions for technical mana gement of decentralised programmes in order 
to ensure sound management of  decentralised management.  
A project to the preparation of Terms of Refe rence for the service tender 'Supporting SMEs to 
become more competitive in the EU  Market' has been contracted. 
 Table 4: Albania- Status of financial assi stance at the end of December 2008 (in million €), 
IPA annual national programmes 
 
IPA 2007 49.27 7.52 41.75 15% 1.76 5.76 4% 
IPA 2008 60.92 0.00 60.92 0% 0.00 0.00 0% 
 - 16 -   1.2.4.2.   Component II – Cross Border Cooperation 
In 2008, no projects of IPA 2007 Co mponent II were contracted. The Call for Proposal for the 
ERDF South-East Europe under IPA 2007 CBC wa s launched in 2008, but  not contracted.. 
No projects of IPA 2008 CBC were launched in 2008. 
 
1.2.5.     Participation in Community Programmes and Agencies 
A Framework Agreement on the general principles  for Albania's participation in Community 
programmes was signed in November 2004. In accordance with Articles 2 and 5 of this 
Framework Agreement, Albania shall pay a fi nancial contribution to the budget of the 
Community programmes in which it participates  and may request IPA assistance in this 
regard. No funds were a llocated for Community prog rammes under IPA 2007. Two 
Community Programmes were planned under IPA 2008: (1) to co-finance  the costs of the 
"entry-tickets" which the benefi ciary country has to pay for the participation in Community 
programmes, and (2) to strengthen the capacity of  the relevant administrative bodies to ensure 
proper participation of the be neficiary in Community Progra mmes. None of the IPA 2008 
Community Programme projec ts were launched in 2008.  
1.3. Monitoring and Results 
1.3.1.  Monitoring 
No monitoring of IPA projects was carried out in 2008 as the IPA 2007 and 2008 programmes 
had not started to be implemented. Consequently, the monitoring of these programmes is yet to begin.  
1.3.2        Evaluation results and lessons learned  
As IPA project implementation started in 2008, no evaluations have been yet carried out, 
neither for component I nor for component II. 
1.3.3        Sectors with positive results - Success story   
Under component I, the contribution of PA MECA III has so far been found extremely 
valuable in identifying long term challenges a nd sustainability issues  within the Albanian 
State Police. The project has also been inst rumental in identify ing ways forward and 
encourages continued progress with in the Albanian State Police. 
 
 - 17 -   2. BOSNIA  AND HERZEGOVINA   
2.1. The year in review 
2.1.1.  Political developments 
Progress over 2008 was exceptionally slow. Cons equently, there was little advancement in 
addressing the key European Partnership prio rity, requesting Bosnia  and Herzegovina to 
establish more functional and sustainable institutional structur es. Bosnia and Herzegovina's 
system of governance continued to involve a significant intern ational presence in 2008. Due 
to the concerns over political stability in the co untry and in the region as  a whole, the closure 
of the Office of High Representative  (OHR) was further postponed. The Peace 
Implementation Council decided to make the closure conditional on Bosnia and 
Herzegovina's progress on addressing five objectives and two conditions. One of the 
conditions was met in June when the Stabilis ation and Association Agreement was signed.  
2008 saw Bosnia and Herzegovina remain in the early phases of public administration reform, 
even if some progress was made. Regarding the judicial system, the adoption of the Strategy 
for Development of the Justice Sector for 2008-2012 was a positive development. Nevertheless, the disjointed character of the judicial system and di sparities in the legal 
framework constituted barriers to the effective operation of the judiciary. In the fight against 
corruption limited progress was achieved. The National Anti-Corruption Strategy was again 
not properly implemented. Little additional progress was achieved in im proving the implementation of international 
human rights conventions. Some progress was made regarding the support provided by the 
authorities to civil society development. Progres s in the area of minority rights, cultural rights 
and protection of minorities was limited.  
2.1.2.  Macroeconomic developments and structural reforms 
In 2008 economic growth remained high and th e external balance improved. The currency 
board arrangement continued to function smoot hly, despite a relative acceleration in the 
growth of domestic lending, and the annual averag e inflation of the first eight months of 2008 
stood at 8.0% in Bosnia and Herzegovina , afte r 1.5% in 2007. The increased fiscal revenue 
from the introduction of VAT in 2006 continue d in 2008. In the first six months of 2008 net 
Foreign Direct Investment (FDI) declined st rongly compared to the same period in the 
previous year and covered only 24% of the curre nt account deficit. Despite robust economic 
growth, unemployment remained very high. P ublic spending, and in particular social 
spending, rose further, weakening the quality of  fiscal adjustment a nd leading to liquidity 
problems in May. Slow expansion of productive capacities and stru ctural rigidities hampered 
labour market participation. Progress in the restructuring and liqui dation of State owned 
enterprises was slow and uneven across the coun try. The small and medium-sized enterprises 
(SME) sector grew, and enjoyed increased acce ss to financing from pr ivate, public or EU 
funds. However, the informal sector remained large. 
2.1.3.  Progress in meeting the acquis communautaire  
Bosnia and Herzegovina's progress is approximating to the acquis was limited overall. As 
regards free movement of goods, there remain ed a lack of proper conformity assessment 
infrastructure (testing and calibration laboratories, certification and inspection bodies) and the country's market surveillance system continue d to be largely based on mandatory standards 
and pre-market control. Good progress was made  in the field of customs and taxation. The 
implementation of customs-related provision s was adequate and Value Added Tax (VAT) 
collection improved in 2008.  
 - 18 -   Progress in the field of anti-trust control co ntinued, whereas no progre ss was made regarding 
State aid. There were some improvements on public procurement however not in terms of 
legislative alignment. Little progress was made  with regards to inte llectual, industrial and 
commercial property rights. In the area of empl oyment and social policies, the absence of 
State level competences remained an obstacle to  the development of a countrywide strategy 
for employment. No progress was made with re spect to social policies. Some progress was 
made in the area of education. Limited progress  was made in the area of SMEs. The sector 
enjoyed increased access to financing, but no countrywide SME strategy was adopted. 
Important State-level Laws on wine, agricultu re, food and rural development were adopted, 
but there was no progress on the adoption of a State-level agriculture strategy. Some progress 
was made on food safety as implementing legi slation was adopted, but  in the field of 
veterinary and phytosanitary po licies progress was limited. As fo r environment, no progress 
was made. Bosnia and Herzegovina's preparati ons in the transport sector were positive. 
Energy sector reform stalled in 2008. Bosnia and Herzegovina made some progress in the area 
of information society and media. In the fi eld of statistics, limited progress was made. 
Cooperation between the country's statistics institutions was still insufficient.  
In the area of justice, freedom and security, th e Visa Facilitation Agreement entered into force 
in January 2008. Some progress was made in th e areas of asylum a nd migration. Further 
efforts remain necessary to tackle money laundering. Some progress was made as regards 
police reform through the adoption of two state-le vel laws. However, the fragmentation of the 
police was not addressed. Action in fighting ag ainst organised crime activities was limited.  
 
2.2. IPA in 2008 
2.2.1.  MIPD 2008-2010 
As a potential candidate country, Bosnia and Herzegovina benefits from the first two 
components of IPA, including component I for Transition Assistance an d Institution Building 
and component II for Cross-Border Cooperation. 
The indicative allocation to Bosnia and He rzegovina under the Multi-annual Indicative 
Financial Framework (MIFF) for 2008–2010 amount s to €269.9 million, as specified below in 
table 1. The document was adopted by  the Commission on 23 September 2008. 
Through component I, the Multi-annual Indi cative Planning Document (MIPD) provides 
support to Bosnia and Herzegovina in the following key reform areas: Political criteria : In line with the 2007 Enlargemen t Strategy, the MIPD 2008 – 2010 has 
increased the share of assistance for the support  of institution build ing, better governance and 
civil society. Priority will be given to assist ance with the aim of stre ngthening administrative 
capacity and supporting domestic efforts on constitutional reform, ensuring that Bosnia and Herzegovina becomes a more democratic, sustaina ble and functional state. Priority will also 
be given to the support  of the development of Bosnia an d Herzegovina's ci vil society. IPA 
will support the public administration reform, including support to the customs and taxation 
administration, the reform of the judiciary and of the police with an emphasis on institution 
building. Economic criteria: IPA will assist Bosnia and Herzegovina's economic development by 
supporting the establishment of regulatory capac ity and the enhancement of entrepreneurial 
know-how. Further assistance wi ll support the development of the SME sector, the economic 
development of the regions, and will improve trade policies. The education reform will be 
advanced to promote the development of ec onomy and society and active labour market 
measures shall assist in combating unemployment . The health sector will be reformed to ease 
the burden on public finances and to deliv er adequate health care to citizens. 
Ability to assume the obligations of membership: IPA will assist Bosnia and Herzegovina 
to cope with the requirement to  approximate to the European acquis  in the areas of internal 
 - 19 -   market, sectoral policies, and justice, freedom  and security. The emphasis of the support will 
be placed on supporting the development of st rategies and policies to  establish sectoral 
policies and a regulatory framework comp atible with European standards. 
In its component II, IPA will support Cross- Border Co-operation by proposing joint projects 
at the borders with Croatia, Montenegro and Se rbia, with EU Member States through the IPA 
CBC Adriatic Programme and by supporting Bosnia and Herzegovina to participate in joint 
projects under the European Regional Development Fund's (ERDF) transnational programmes 
"South-East Europe" (SEE) and "Mediterranean" (MED).  
Table 1: Bosnia and Herzegovina: Multi-annua l Indicative Financial Framework (in million 
€)
 
 2008 2009 2010 Total 
Transition Assistance and Institution Building 69.9 83.9 100.7 254.5 
 
Cross-border Co-operation 4.9 5.2 5.3 15.4 
Total 74.8 89.1 106.0 269.9 
 
2.2.2.     Programming Exercise  
 
Table 2: Indicative financial allocation for Bosnia and Herze govina per component for the 
year 2008 (in million €)  
Component  2008 
I. Transition assistance and Institution Building 69.9 
 National Programme Part I 12.5 
 National Programme Part II 54.3 
 Nuclear Safety 0.7 
 Education (Tempus) 2.4 
II. Cross-border Cooperation 4.9 
 CBC programmes Bosnia and Herzegovina 
– Croatia 1.0 
 Bosnia and Herzegovina  - Montenegro 0.5 
 Bosnia and Herzegovina - Serbia 0.7 
 ERDF 0.5 
 Adriatic programme 2.2 
 
The IPA National Programme for 2008 was divide d into two parts. Part I had a budget of 
€12.5 million and included the projects which were planned to be implemented with the highest priority (police reform , state court, state prison, pr oject preparation facility, EU 
awareness). The Commission adopted the fina ncing decision for part I on 9 October 2008. 
Part II, with a budget of €54.25 million, include d the remaining projects for the 2008 
programme. The Commission adopted  the financing decision for part II on 5 December 2008.  
 - 20 -   However, because Bosnia and Herzegovina did not sign the financing agreements for the two 
parts of the 2008 programme in 2008, (not conclude d at the time of the preparation of this 
report) the benefits of an early implementation of the priority projects in part I of the 
programme were lost. Table 2 provides the financia l allocation for components I an d II of the 2008 programme. 
(Please note that the allocation for the compone nt I include an allocation of EUR3.15 million 
to the multi-beneficiary programme 2009.)  
2.2.2.1    Component I: Transition Assi stance and Institution Building  
 
The IPA 2008 National Programme for Bosn ia and Herzegovina was adopted by the 
Commission on 9 October 2008 for Part 1 and on 5 December 2008 for Part 2. The programme will provide support to the police reform  and judiciary institutions. It also aims at 
facilitating the country's pr ogress towards the EU member ship through raising public 
awareness of the EU integration process and a ssisting the national aut horities in planning, 
programming and implementing of the Instrume nt for Pre-Accession Assistance (IPA) by 
means of a Project Preparation Facility. Assistance is aimed at  supporting the country's efforts 
in its transition from potential  candidate to candidate status . Funds under IPA component I 
aim at providing for Institution Building which is n eeded to meet this objective. In particular, 
Bosnia and Herzegovina has to approximate to Eu ropean standards, among other things, in the 
sectors of justice, freedom and security, where sustained efforts remain necessary in order to 
continue to increase the effectiv eness of the legislative bodies. 
Table 3 below provides an overview of the pla nned interventions in the component I of the 
2008 programme.  
Table 3: Component I - Transition Assistanc e and Institutio n Building 2008 for Bosnia and 
Herzegovina (in million €):   
Priority axis Projects Budget 
Political Requirements   
 State Court & Prosecuto r's office                3.00  
 State Prison                4.00  
  Judicial Institutions                1.40  
  Police Reform                2.00  
  Project Preparation Facility                1.50  
  Decentralised Implementation                1.50  
  EU Awareness                2.00  
  Mine Action Activities                2.20  
  Vulnerable Groups                1.90  
  Civil Society                3.50  
Economic Requirements    
 Health Care System Development                2.85  
  Education Reform                3.00  
  Competitive Sectors                7.00  
 Ability to assume the obligations 
of EU membership      
 European Common Aviation Area       1.00 
 Asylum       1.50 
  Trade and Metrology                4.00  
 IBM + ITA                3.80  
  Central Bank                1.00  
 - 21 -     Environment                4.00  
  Community Programmes FP7                1.35  
  Rural Development &  Agri                4.00  
  Energy Community                1.75  
  Citizen Identificati on Protection                2.00  
  Statistics (Census)                2.00  
  Spatial Information                 3.00  
 Animal Health       1.50 
                 66.75  
 
 
2.2.2.2     Component II: Cross-Border Cooperation 
 
IPA Component II supports the pa rticipation of Bosnia and He rzegovina in three bilateral 
cross–border programmes with Croatia, Mont enegro and Serbia. Concerning CBC with 
Member States, IPA Component II finances the participation of Bosnia  and Herzegovina in 
the IPA CBC Adriatic programme. Finally, in  2008 the IPA Componen t II financed the 
participation of Bosnia and Herzegovina in the ERDF transnational programme "South-East 
Europe". Component II programmes involving Bosnia and Herzegovina were adopted in 
December 2007, except the IPA Adriatic progr amme, which was prepared in 2007 but 
adopted in March 2008  
2.2.3.       Implementation Modalities and Structures  
Implementation of Component I and II programmes: 
 
All programmes under IPA Compon ent I and II are implemented on a centralised basis by the 
European Commission Delegation to Bosnia a nd Herzegovina in accordance with Article 
53(a) of the Financial Regul ation and the corresponding pr ovisions of the Implementing 
Rules. 
 
Multi-Beneficiary Programmes: 
 
Bosnia and Herzegovina's participation in hor izontal nuclear safety and education (Tempus) 
programmes are funded from the allocation under  Component I of IPA but are implemented 
on a centralised basis by the European Commission in Brussels in the framework of the Multi-
Beneficiary Programmes. 
 
Preparation for decentralised management of IPA: 
 
During 2008, Bosnia and Herzegovina conti nued its preparation for decentralised 
management for IPA funds. The Council of Mini sters of Bosnia and Herzegovina adopted on 
23 June 2008 the revised decentralised ma nagement Strategy. In November 2008, the 
Minister of Finance and Treas ury was appointed as National IPA Coordinator (NIPAC). In 
addition, an IPA Advisory Board was created, composed of the NIPAC (president of the 
board), the Director of the Directorate for Eur opean Integration, the Ministers of Finance of 
the Entities and two other representatives from the Entity Governments. The National Authorising Officer (NAO) and th e Programme Authorising Officer (PAO) have 
to be reappointed for IPA since their mandate was only related to CARDS. The Central 
 - 22 -   Finance and Contracting Unit (CFCU) and the Na tional Fund (NF) are established within the 
Ministry of Finance and Treasury but we re not yet completely staffed in 2008.  
An advisory mission of DG EN LARGEMENT (Unit E4 Operational Audit and Evaluation) 
for Operational Audit was carri ed out in July 2008 and a fi rst gap assessment of the 
decentralised management structures was c onducted in August 2008. Technical assistance 
was in place and also programmed under IPA 2008 to support the author ities in Bosnia and 
Herzegovina to continue the preparat ions for decentralised management. 
2.2.4.   Overview of IPA programmes implemented  
The IPA Framework Agreement was signed on 20  February 2008 and entered into force on 30 
July 2008 following the ratification by Bosnia  and Herzegovina's Presidency and its 
publication in the Official Gazette of Bosnia and Herzegovina on 16 Ju ly. The delays were 
mainly caused by lack of due diligence in pr oceeding with the ratification and internal 
consultation procedures on the side of Bosnia  and Herzegovina. Even after the Framework 
Agreement entered into force, its tax exemp tion provisions were not duly implemented by 
Bosnia and Herzegovina. Only on 4 Decembe r 2008, Bosnia and Herzegovina's House of 
Peoples adopted the amendments to the Law related to the VAT exemption of IPA funds 
opening the way to the implementation of the IPA programmes. 
 
Table 4: Bosnia and Herzegovina- Status of financ ial assistance at the end of December 2008 (in 
million €) 
 
 Allocated Contracted RAC %Contracted RAL %Paid 
IPA 
2007 49.7 23.4 26.3 47.0 44.4 10.7 
IPA 
2008 66.8 1.6 65.2 2.4 66.7 0.1 
 
2.2.4.1   Component I: Transition Assi stance and Institution Building 
 
The Financing Agreement for the IPA 2007 National Programme (adopted by Commission 
Decision C(2007)6698 on 19 December 2007) wa s signed on 31 July 2008 immediately 
following the entering into force of the IPA Fr amework Agreement. The exchange of letters 
between the European Commission Delegation and the authorities of Bosnia and Herzegovina 
took place on the same day. First tenders were launched in August 2008 but further 
procurement was put on hold because of the non-compliance of Bosnia and Herzegovina's legislation with the provisions of the IPA Framework Agreement in the field of tax 
exemption. In 2008, only six contribution agr eements with interna tional organisations 
(namely Council of Europe, the Internationa l Commission for Missing Persons, UNICEF, the 
United Nations' Development Programme (UNDP)  and the High Judicial and Prosecutorial 
Council) with a total amount of  €5.64 million were concluded.  
The IPA 2008 National Programmes part I an d II were adopted by the Commission on 9 
October 2008 by Commission Decision C(2008)5659/2 and on 5 December 2008 by Commission Decision C(2008)7638. Th e draft Financing Agreemen t for part I of the 2008 
programme was transmitted to th e authorities of Bosnia and Herzegovina in November 2008 
but not signed since. Therefore, implementa tion of the two programmes did not start during 
2008. 
 
2.2.4.2.   Component II: Cross-Border Cooperation 
 
The Financing Agreements for the 2007 Cross- border Cooperation Programmes with Croatia 
and Serbia were signed on 31 July 2008. The Fi nancing Agreements for the 2007 programmes 
 - 23 -   with Montenegro and the ERDF South East Eu rope programme were signed on 30 October 
2008. Joint implementation structures (Joint  Management Committees, Joint Technical 
Secretariats and antennas) were  established and the first meeting of the National Task Force 
for CBC programmes took place on 14 May 2008. Th e first meetings of the Joint Monitoring 
Committees for the respective programmes t ook place during November 2008. The Operating 
Structure placed in the Directorate for European  Integration remains poorly staffed with only 
two out of six full time civil service positions filled.  The Financing Decisions for the 2008 Cro ss-Border Cooperation programmes with 
Montenegro (Decision C(2008)3991 of 31 July 2008), Serbia (Decision C(2008)3708 of 23 
July 2008), Croatia (Decision C( 2008)3814 of 25 July 2008), and fo r the participation in the 
ERDF programme (Decision C(2008)5609 of  7 October 2008) were adopted by the 
Commission during 2008. However, the related Fi nancing Agreements for those programmes 
were not signed in 2008.  
2.2.5     Participation in Community Programmes and Agencies 
A Framework Agreement on the general princi ples for participation of Bosnia and 
Herzegovina in Community programmes was si gned in November 2004. In accordance with 
Articles 2 and 5 of this Framew ork Agreement, Bosnia and Her zegovina shall pay a financial 
contribution to the budget of the Community programmes in which it participates and may 
request IPA assistance in this regard.  In November 2008 Bosnia and Herzegovina signed the Memorandum of Understanding 
(MoU) for the 7
th Framework Programme for Research an d Development. This is the first 
Community Programme in which Bosnia a nd Herzegovina is fully participating 
€1.350.000 were allocated from IPA 2008 component Ito co-finance the entry tickets for 
participation of Bosnia and Herzegovina in 2009 in the seventh Framework Programme for 
Research and Competitiveness and Innovation Framework Programme (CIP). 
2.3. Monitoring and Results 
2.3.1.  Monitoring 
No monitoring of IPA projects was carried out in 2008 as the IPA 2007 and 2008 programmes 
had not started to be implemented yet. Cons equently, the monitoring of these programmes 
was yet to begin.  
2.3.2.  Evaluation results and lessons learned  
There were no evaluation results of IPA pr ogrammes in 2007 and 2008 as they have not 
started to be implemented yet. For the first and second year of IPA no lessons could be 
identified as the implementation only began in 2008. 
2.3.3.  Sectors with positive results - Success story box  
For the first and second year of IPA, no sectors with positive resu lts could be identified as the 
implementation of IPA programmes only started in 2008. 
 - 24 -   3. CROATIA 
3.1. The year in review 
3.1.1.  Political developments 
EU accession negotiations began with Croati a on 3 October 2005 and continued to progress 
well. By the end of December 2008, 22 out of 35 negotiation chapters had been opened. Out 
of these chapters, seven had been provisional ly closed. Based on the overall progress being 
made by Croatia the Commission proposed in the enlargement package adopted on 5 November 2008, an indicative road map for reac hing the final stage of accession negotiations 
by the end of 2009, provided Croatia fulfils all th e necessary conditions. Croatia continued to 
meet the Copenhagen political cr iteria. New strategies and actio n plans as well as legislation 
for reforming the judiciary, the public administ ration and in fighting co rruption were adopted. 
The anti-corruption body USKOK continued to intensify its activities. Croatia took some 
steps to address problems of minorities, in cluding refugee return. Croatia continued to 
participate actively in regional cooperation.  Ho wever, considerable ch allenges remained in 
key areas, such as reform of the still ineffici ent judicial system and public administration and 
in fighting organised crime and corruption, whic h remained widespread. Sustained efforts are 
needed across the board, leading to concrete re sults. Further attention needs to be paid to 
minority rights, especially refugee return. Th e prosecution of war crimes requires continued 
attention. There were problems of access by th e International Criminal Tribunal for the 
former Yugoslavia (ICTY) to certain documents  in Croatia. Regional cooperation needs to 
continue, as do efforts to solve outstanding bila teral problems with neighbours, especially on 
border delimitation.   
3.1.2.  Macroeconomic developments and structural reforms 
The economy of Croatia continued to show a so lid performance. Macroe conomic stability was 
preserved. Employment grew a nd unemployment continued to decline. Business registration 
procedures improved further. However, infla tion rose considerably, largely due to higher 
energy and food prices. The current account deficit was growing. The implementation of 
structural reforms was slow. Significant subsidies to enterprises were not yet used effectively 
for restructuring. Further improvements in the business environment were needed.  
3.1.3.  Progress in meeting the acquis communautaire 
Croatia improved its ability to take on the ob ligations of membership. Preparations for 
meeting EU requirements moved forward at a steady pace. Significant progress was made in 
economic and monetary policy and information society and media. Good progress was made 
in many chapters, such as public procurement,  intellectual property law, customs union, food 
safety and financial services. However, significant efforts lie ahead, in particular in areas such 
as judiciary and fundamental ri ghts, environment, competition policy and agriculture and rural 
development. 
 
 - 25 -   3.2. IPA in 2008 
3.2.1.  MIPD 2008-2010 
The Multi-Annual Indicative Planning Docume nt (MIPD) 2008-2010 for Croatia was adopted 
on 18 September 2008. It is based on an  indicative financial envelope of €451.4 million  for 
the period 2008-2010 and describes the objectives under IPA, which are:  
⋅ To assist Croatia  in meeting the accession criteria, i.e. the political and economic criteria, 
as well as the adoption, implement ation and enforcement of the acquis ; 
⋅ To  improve co-operation and good neighbourly relations of Croatian regions with the 
neighbouring border areas;  
⋅ To support policy development as well as pr eparation for the implementation of the 
Community's cohesion and agri cultural policies, with a vi ew to EU membership.  
Under IPA Component I , pre-accession assistance to Croatia will inter alia support under the 
political criteria public administration reform, judicial reform, and anti-corruption policy. 
Assistance under the economic criteria will focu s on structural reforms in public finance, 
economic restructuring, business environment,  statistics, land reform and labour market 
reform.  In addition, pre-accession assistance will support institutional capacity building for 
acquis transposition and implementation according to the priorities identified in the Accession 
Partnership, the screening reports and subsequent negotiations in the different chapters of the 
acquis.  Finally, capacity building can also be pr ovided for the management of IPA projects 
and to re-enforce institutional cap acity for the management of EU  structural funds. Croatia’s 
participation in Community Programmes will also  continue to receive financial support under 
Component I.  
Assistance to Cross-border Cooperation  (CBC) provided under Component II  aims at 
improving co-operation and good neighbourly re lations of Croatian regions with the 
neighbouring border areas and familiarising Croatia  with the rules and procedures governing 
the European Territorial Coope ration Objective under Structural  Funds. The MIPD foresees 
continuing CBC with Hungary, Italy and Sloveni a, and developing bilateral CBC programmes 
with Bosnia and Herzegovina, Montenegro, and Serbia.  Components III  and IV aim at supporting Croatia in policy development as well as 
preparation for the implementation and manage ment of the Community’s cohesion policy, in 
particular regarding the European Regional Development Fund, the Cohesion Fund and the 
European Social Fund. In terms of pre-acces sion assistance under Components III and IV, 
priorities comprise acquis -related investment in envi ronmental protection and the 
development of a European transport network to gether with support to the productive sector, 
in particular to Small and Medium-sized Enterprises (SMEs); Component IV  priorities 
comprise investment in employment, education, social inclusion and human capital formation. 
Component V  aims at supporting Croatia in policy deve lopment as well as preparation for the 
implementation and management of the Community’s common agricultural policy .  
Assistance under Component V will target three main priority axes. The first will provide 
assistance to improve market efficiency and implementation of Community standards. The 
second aims at preparing Croatia for the impl ementation of agri-environmental measures and 
local rural development strategies and the th ird at the development of the rural economy. 
Coherence and concentration of assistance will  be necessary for the effectiveness of IPA 
assistance under all components where a ppropriate effective coordination and 
complementarity with other IPA components will be assured.   
Table 1: Croatia: Multi-annual Indicative Financial framework (in million €) 
 - 26 -    
Component  2008 2009 2010 2008-2010 
I. Transition 
Assistance and Institution Building 45.4 45.6  
39.5 130.5  
II. Cross-Border 
Cooperation 14.7 15.9 16.2 46.8 
III. Regional Development 47.6 49.7 56.8 154.1  
IV. Human Resources Development 
12.7 14.2 15.7 42.6 
V. Rural Development 25.6 25.8 26.0 77.4 
Total 146.0  151.2  154.2  451.4  
 
3.2.2.  Programming exercise 
The 2008 IPA allocations for Croatia  are broken down as follows: 
Table 2: Indicative financial allocation for Croatia per component for the year 2008 (in 
million €) 
Croatia 2008  
I Transition Assistance and Institution Building 45.4 
II Cross-border cooperation 14.7 
of which CBC Croatia-Bos nia and Herzegovina 1.0 
of which CBC Croatia-Montenegro 0.4 
of which CBC Croatia-Serbia 0.8 
of which CBC Adriatic Programme 6.7 
of which CBC Hungary-Croatia 2.4 
of which CBC Slovenia-Croatia 2.9 
of which Participation of Croatia in ERDF programmes 0.5 
III Regional Development 47.6 
of which Regional Competitiveness Programme 11.6 
of which Transport Programme 18.0 
of which Environment Programme 18.0 
IV Human Resources Development 12.7 
V Rural Development 25.6 
TOTAL 146 
 
Programmes for components II, III, IV  are adopted for three y ears and for component V for 7 years. Financial 
commitments are made annually and ther efore figures above are just for 2008 
3.2.2.1.  Component I: Transition Assistance and Institution Building 
The IPA 2008 national programme for Croatia with an IPA contribution of €41.37 million 
was adopted by the Commission on 5 November 2008.  It consists of 17 projects that are 
grouped under 4 strategic priority axes (political and economic cr iteria, ability to assume the 
obligations of membership, supporting programmes).  
 - 27 -   - Under the political criteria the reform of the judiciary will be addressed by the projects 
"Support to the reform of criminal proceedings " and "Development of the probation service". 
The projects "Enhancing the capacities of the civil society sector for the monitoring of 
implementation of the EU Acquis " and "Support to Romas" will contribute to progress in the 
area of human rights and the protection of minor ities. The public administration reform will 
be addressed by the project "Implementation of  the General Administrative Procedure Act". 
- Under the economic criteria, and considering the vital role of the developm ent of statistics in 
providing relevant and accurate information a nd monitoring the reforms in many sectors, a 
project on selected statisti cal areas will be supported. 
- As concerns the ability to assume the ob ligations of membershi p, assistance under IPA 2008 
will be concentrated on areas of activity with a large volume of legislation to be transposed 
and implemented, preparation to structural funds  as well as with investments requirements in 
the acquis.  This concerns the following chapters: Food safety, veterinary and phytosanitary 
policy; Fisheries; Transport pol icy; Energy; Social policy an d Employment; Regional policy 
and coordination of structural instruments; Justice, freedom  and security; Environment. 
- Supporting programmes in 2008 will continue  to provide for administrative capacity 
building for strategy development, project preparation and implementation, institution 
building support and SAA and acquis  implementation through a "Facility for Project 
Preparation and Reinforcement of Administrati ve Capacity". "Participation in Community 
Programmes and Agencies" will also con tinue to receive financial support in 2008. 
 
Table 3:  Component I - Transition Assistan ce and Institution Building 2008 for Croatia (in 
million €):  
Priority Axis Projects Budget 
political criteria 10.535 
 Support to the reform of 
criminal proceedings  1.900 
 Development of the probation 
services in Croatia  1.635 
 Implementation of the General 
Administrative Procedures Act  1.500 
 Civil Society Facility - 
Enhancing the capacities of the 
civil society sector for the 
monitoring of implementation of 
the EU Acquis  3.000 
 Roma Support Project – Phase 
III  2.500 
economic criteria  1.000 
 Technical assistance in 
development of selected areas of statistics  
1.000 
ability to assume obligations of membership  20.871 
 Continued Support to Capacity 
Strengthening of the Veterinary, Phytosanitary and Sanitary Border Inspection  
3.977 
 Support to animal disease 
control/eradication in the Republic of Croatia  
3.135 
 - 28 -    Strengthening the Market 
Component of the Croatian Fisheries Sector  
1.617 
 Efficient Functioning of the 
Control System for Roadside Inspections and Checks of the Driving Time, Breaks and Rest Periods on the Road and in the Undertakings  
1.857 
 Monitoring dependence and 
vulnerability of energy supply system with scope on security of supply  
0.990 
 Croatian Employment Service 
Labour Market Training Centre 0.800 
 Support to the Management, 
Monitoring and Evaluation of the Structural Instruments in Croatia  
4.000 
 Blue Border Surveillance - 
Phase II  3.450 
 Enforcement of the new 
Environmental Protection Act harmonised with EU legislation in cases of criminal offences against the environment  
1.045 
supporting programmes  8.968 
 Facility for Project Preparation 
and Reinforcement of Administrative Capacity  
3.393 
 Participation of Croatia in 
Community Programmes and Agencies  
5.575 
Total  41.374  
  
3.2.2.2.  Component II: Cross-Border Cooperation 
Under Component II, Croatia participates in  multi-annual cross-border programmes (CBC) 
with neighbouring IPA countri es: CBC '"Croatia-Bosnia an d Herzegovina", CBC "Croatia-
Montenegro" and CBC "Croatia-Serbia". Financi ng decisions allowing the deployment of IPA 
2008 funding for these programmes were adopted  respectively on 25 July, 17 July, and 29 
August 2008. These cross-border programmes aim at encouragi ng the creation of cross-border networks and 
partnerships and developing jo int cross-border actions with a view to revitalizing the 
economy, protecting the nature an d the environment and increas ing social cohesion in the 
programming area. They also include technical assistance. A programme financing the participation of Cr oatia in the ERDF European Territorial Co-
operation transnational programmes "South-East  Europe" and "Mediterranean" was also 
funded under the IPA 2008 Cross-border Co-ope ration component and adopted on 7 October 
2008. 
 - 29 -   In 2008, the following multi-annual cross-border  programmes between Croatia and Member 
States were also adopted: CBC "Adriatic" , CBC "Hungary-Croatia", and CBC "Slovenia-
Croatia", respectively on 25 Marc h, 13 March and 27 February 2008. 
3.2.2.3.  Components III and IV: Strategic Coherence Framework 
In accordance with the provisions of the Artic le 154 of the Commissi on Regulation (EC) n° 
718/2007 Croatia established the Strategi c Coherence Framework (SCF) for 2007-2013 
covering IPA Components III (Regional Development) and IV (Human Resources 
Development). Within the Strategic Coherence Framework (SCF )the supporting socio-economic analysis and 
subsequent strategy identified the key objecti ves and priorities implemented through four 
multi-annual Operational Programmes (three in component III and one in component IV) with 
a strong strategic focus. IPA with, its simila rities to the European Regional Development 
Fund and Cohesion fund, is a precursor of Structur al Funds. The SCF is also considered as 
"mini NSRF".  The preparation of the SCF in Croatia was co ordinated by the Strategic Coordinator who 
consulted the Commission throughout the whole process. The Commissi on services verified 
the content of the SCF and concluded that  it contained all the relevant elements. 
 
3.2.2.4   Component III: Regional Development 
 
Three multi-annual operational programme s were adopted in 2007: "Regional 
Competitiveness OP" adopted on 29 November  2007, "Transportation OP" adopted on 7 
December 2007 and "Environmental OP" adopted 29 November 2007. The IPA resources allocated to each programme are:   
COMPONENT III PROGRAMMES  
2007 2008 2009 TOTAL 
REGIONAL COMPETITIVENESS 11.050,250 11.600,000 12.699,500 35.349,750 
TRANSPORTATION 17.000,250 18.000,000 18.500,250 53.500,500 
ENVIRONMENTAL  16.999,500 18.000,000 18.500,250 53.499,750 
 
The "Regional Competitiveness" OP consists of 3 priority axes: "Improving development potential of the lagging behind regions", "Enhancing the competitiveness of the Croatian economy", and Technical Assistance. The "Trans portation" OP encompa sses 3 priority axes: 
"Upgrading Croatia's rail transp ort system", "Upgrading Croatia's inland waterway system", 
and Technical Assistance. The "Environmental" OP consists of 3 prio rity axes: "Developing 
Waste Management Infrastructure for Establishi ng an Integrated Waste Management System 
in Croatia", "Protecting Croatia's Water Resources Through Impr oved Water Supply and 
Integrated Wastewater Management Systems", and Technical Assistance. 
The strategy under component III foresees  concentration of resources in the transport  
(Transportation OP), environment  (Environmental OP) and regional competitiveness  
(Regional Competitiveness OP) sectors. It covers acquis -related investments in environmental 
protection (waste water, drinking water and waste management) and sustainable transport 
(railways and inland waterways). Along with these efforts direct ed at basic infrastructure, 
further assistance is aimed at modernising and restructur ing the productive capacity of 
disadvantaged regions in particul ar by providing services to ente rprises, particularly small and 
medium sized.  Moreover, under the three Operational Programme s resources will be utilised to introduce into 
the national framework the strategic planni ng and management principles guiding the 
implementation of EU structural instrument s, also via learning by doing process.  
 - 30 -   Within each of the OP a separa te priority on Technical Assi stance has been introduced to 
support the national structures managing IPA as well as ensuri ng project prepar ation of high 
standards. A comprehensive in stitutional set up (Operating St ructure consisting of a few 
bodies specific for each OP/priority) built for IP A will continue with some modifications 
under the Structural funds regime. The implementation of the three OPs started at the end of 2008, following the signature of the 
related Financing Agreements in November 2008 in the aftermath of the related Decisions on 
conferral.  
Work carried out in 2008 concentrated on the prep aration and appraisal of  projects/operations. 
Six major project applications in the environm ent and transport sectors were submitted to the 
Commission. Following the appraisal of these pr oject applications, revised versions were 
resubmitted. No IPA funding decision for any major projects was adopted in 2008.   
3.2.2.5   Component IV: Human Resources Development 
A multi-annual operational programme "Human  Resources Development" under Component 
IV for Croatia was adopted on 7 December 2007 a nd consists of 4 priority axes: "Enhancing 
access to employment and sustainable inclusion in the labour market", "Reinforcing social 
inclusion of people at a disadvantage", "Enha ncing human capital and employability", and 
Technical Assistance.  
COMPONENT IV  2007 2008 2009 TOTAL 
HUMAN RESOURCES 
DEVELOPMENT 11.4 12.7 14.2 38.3 
 
3.2.2.6   Component V: Rural Development 
A multi-annual "Programme for agriculture  and rural development" (IPARD) under 
Component V for Croatia was adopted by the Commission on  25 February 2008 and consists 
of 3 priority axes: "Impr oving market efficiency and implementation of Community 
standards", "Preparatory actions  for implementation of the agri -environmental measures and 
local rural development strategies", a nd "Development of the rural economy". 
The IPARD programme, with its measures similar to those for Member States some of them 
being compulsory after accession, provides a good ba se for the preparation of the future post 
accession Rural Development programme. The amendments to the programme adopted by the Commission decision on 27 October 2008 were essentially of technical nature and con cerned mainly the adaptation of the financial 
tables to take into account the new financial allocation for 2010 (€26.0 million) according to the MIPD 2008-2010, the up-date of data include d in the programme and the correction of 
editorial inconsistencies and mistakes.   
Component  
V 2007 2008 2009 2010 TOTAL 
Rural 
Development 25.5 25.6 25.8 26.0 102.9 
 
3.2.3.  Implementation modalities and structures  
The European Commission and the Government  of the Republic of Croatia signed on 27 
August 2007 the framework agreement on the rule s for co-operation conc erning EC financial 
assistance to Croatia under IPA.  
 - 31 -   The Sectoral Agreement complementing the provisions of the Framework Agreement for 
component V was signed on 13 October 2008.In Apri l 2008, the Croatian authorities notified 
the European Commission of their accreditation of the operating structures in charge of the 
management and implementation of the IPA components I to IV. Pursuant to these notifications, the European Commission reviewed  the accreditation packages as well as the 
procedures and structures of th e bodies concerned, re sulting in six Decisi ons on conferral on 
Croatia of management powers for the decentral ised management of IPA components I to IV: 
- Conferral for IPA Component I Transition Assistance and Institution Building:   
Commission Decision of 28 October 2008; 
- Conferral for IPA Component II Cross-borde r cooperation: Commission Decision of 14 
November 2008.  
- Conferral for Operational Programme s under IPA Component III: Regional 
Development.  Environmental, Regional Competitivene ss programmes respectively: Commission 
Decisions of 29 October 2008;  Transportation programme:  Commission Decision of 3 November 2008;   
- Conferral for IPA Component IV:  Hu man resources development: Commission 
Decision of 1 December 2008. 
These decisions constitute the triggering factor for the deploy ment of the assistance under the 
IPA components I to IV, starting with the IP A 2007 funding. Indeed the financing agreements 
for the related 2007 programmes that operate u nder decentralised management could not be 
signed as long as the Decisions were not adopte d. This effectively means that Croatia did not 
deploy any IPA assistance in 2008.Under the arrangements embedded in the aforementioned 
Decisions and financing agreements , it is the responsibil ity of Croatia to ma nage IPA financial 
activities in a decentralised m ode. It is to be noted that ex ante  controls operated by the 
Delegation remain an integral part of this  decentralised system for these components. 
Moving to a decentralised system is also as a crucial step in the Croatian administrations’ 
learning process. This enables them to build in the requirements that they will need to meet in 
order for them to pass to the next stage, th at is to say full decentralisation with only ex post  
controls by the Commission. Croa tia envisages moving to full decentralisation in 2010.  
The last Decisions that  are awaited are on c onferral of management powers for the component 
V (agriculture and rural development) that will require more time, as in this case, and differently from the other Decisions, conferral will be ensured on the principle that the Commission will not operate any more any ex ante  control on the transactions. This therefore 
requires an even higher level of accountabilit y and preparedness on the side of the Croatian 
administration. The Croatian Authorities have de cided to split the 7 m easures under the IPARD 
Programme into three different accreditation pa ckages. Therefore, three Conferral Decisions, 
covering the various IPA component V measures, are expected to be a dopted respectively in 
2009 (one decision) and 2010 (two decisions). On 12 November 2008 the Commission received its first accreditati on package for this 
component and began to review t according to the requirements of the accreditation criteria 
included in the framework and Sectoral Agreemen t, with a view to conferral decisions.  The 
Conferral decision for the first three measur es: "Investments in agricultural holdings to 
restructure and to upgrade to Community sta ndards", "Investments in the processing and 
marketing of agriculture and fish ery products to restru cture those activities and to upgrade them 
to Community standards" and "Improvement a nd development of rural infrastructure" was 
expected for the beginning of the second seme ster of 2009 and two further decisions were 
expected in 2010 for four remaining measures. 
 - 32 -   3.2.4.  Overview of IPA programmes implemented 
The implementation of programmes effectively starts once the confer ral of decentralised 
management decision per component is take n by the Commission and the Framework and 
Financing Agreements have entered into force.  As specified in section 3.2.3 the conferral of  management powers for the decentralised 
management of IPA components I to IV in Croatia were gr anted by the respective Commission 
decisions at the end of 2008. These decisions cons titute the triggering factor for the deployment 
of the assistance under the IPA components I to IV, starting with the IP A 2007 funding.  Indeed 
the financing agreements for the related 2007 programmes that operate under decentralised 
management could not be signed as long as the Decisions were not adopted. This effectively 
means that Croatia only started depl oying IPA assistance in the year 2009. 
3.2.5.  Participation in Community  Programmes and Agencies 
A Protocol to the SAA on a Framework Agreem ent on the general principles for Croatia’s 
participation in Community Programmes was signed in November 2004. In accordance with 
Articles 2 and 5 of this Framework Agreement, Croatia shall pay a fina ncial contribution to 
the budget of the Community programmes in which it participates and may request IPA 
assistance in this regard.  €4.600.000 were allocated from IPA 2007 component I to co-finance the participation of 
Croatia in, inter alia , the following indicative list of Co mmunity programmes and Agencies in 
2008 or 2009.-In 2008: CUSTOMS 2013, Fiscalis  2013, Seventh Framework programme for 
Research, Technological Development and Dem onstration Activities, Competitiveness and 
Innovation Framework programme (CIP), Programme  of Community Action in the field of  
Health, European Monitoring Center fo r drugs and drug Addiction (EMCDDA).  
-In 2009: Europe for Citizens, PROG RESS, Marco Polo II and Culture. 
€5.575 million were allocated from IPA 2008 Component  I to co-finance the participation of 
Croatia in, inter alia, the follo wing indicative list of Community  Programmes and Agencies in 
2009: CUSTOMS 2013, Fiscalis 2013, IDABC,  Seventh Framework Programme for 
Research, Technological Development and Dem onstration Activities, Competitiveness and 
Innovation Framework Programme (CIP), Civil Protection Financial Instrument, Media 2007, 
Programme of Community Action in the Field of Health, Framework Programme 
Fundamental Rights and Justice, Fundament al Rights Agency (FRA) and European 
Environment Agency (EEA). 
3.3. Monitoring and Results 
3.3.1.  State of play for IPA Monitoring Co mmittee and Sectoral Monitoring 
Committees 
-IPA Monitoring Committee 
The first yearly IPA Monitoring Committee took place on 2 July 2008 and was preceded 
in May / June by the first sessions of the IPA sectoral committees. In addition to the 
adoption of its rules of procedure, the po ints on the agenda covered the progress made 
at that time in the IPA accreditation pr ocess for all components, as well as the 
preparations for the implementa tion of the IPA programmes. 
-Sectoral Monitoring Committee 
The IPA Transition Assistance and Institut ion Building Committee convened twice in 
2008, on 26 May and 16 December. The first co mmittee was held before conferral on 
Croatia of management powers for IPA comp onent I and focused on the progress made 
 - 33 -   at that time in the IPA accreditation proce ss for IPA component I, preparations for the 
implementation of the IPA 2007 national pr ogramme (component I) and programming 
of IPA 2008 national programme (component  I). The second committee was held after 
conferral and deliberated on follow up actions n eeded in order to address Commission's 
findings associated to its decision on conferra l, as well as on proposals for some project 
reallocations under IPA 2007 national programme (component I). 
As regards IPA Cross-Border Cooperation Co mponent II, the firs t Joint Monitoring 
Committees were convened in 2008 to pr epare calls for proposals under the following 
programmes: CBC "Slovenia-Croatia" (in May) , CBC "Hungary-Croatia" (in June), CBC 
"Adriatic" (in July), CBC "Croatia-Bosnia an d Herzegovina" (in Nove mber), CBC "Croatia-
Montenegro" (in November), CBC "Croatia-Serbia" (in Nove mber), as well as under the 
ERDF transnational programmes "South-East  Europe" (in February and September) and 
"Mediterranean" (in January, October and December). In 2008 the second and the third round of Sect oral Monitoring Committees for all three 
operational programmes under component III were held. The Rules of Procedure for the three 
SMCs were adopted. The discussion with the Operating Structures focused on the planning 
and monitoring tools, implementation arrang ements and project/ope ration preparations. 
The Sectoral monitoring Committees under IPA component IV took place on 4 June and 11 
December 2008. 
The Sectoral Monitoring Comm ittees under IPA Component V me t twice in 2008 – on 3 June 
2008 and on 18 November 2008. During the first meeting the rules of procedures were adopted. On both committees the preparation and a state of play for accreditation of relevant 
bodies and measures were presented. The im plementation of monitoring and evaluation 
system, communication plan, programme amendmen ts and relevant measures was presented 
and discussed.  
3.3.2.  Annual and final reports on implementation  
-Sectoral Annual Reports 
The first yearly report of the Transition Assistance and Institution Building (TAIB) 
Committee was established in June 2008 in the aftermath of the IPA TAIB sectoral 
committee of 26 May 2008. As the implementati on of the IPA programmes had not yet 
started, the Croatian authorities mainly ref erred in their report on progress made at 
that time in the IPA accred itation process for component I, as well as on the 
preparations for the implementation of  the IPA 2007 national programme and 
programming on IPA 2008 national programme. 
The first Sectoral Annual Implementation Reports covering 2007 activ ities in the three 
operational programmes under component III and in the operational programme under 
component IV were submitted in 2008 to the Commission. The content of the reports reflected the activities of very limited nature concer ning implementation (actual IPA implementation 
on the ground in terms of proj ect implementation did not star t in 2008). The Commission, 
following inter-service consulta tions, expressed a favourable opi nion on the content of the 
reports. 
For component V under Article 193 of Regul ation No 718/2007 the sectoral annual report 
shall be submitted within six months of the end of each full calendar year of programme 
implementation. Consequently, in  2008 no report was delivered as the implementation of the 
IPARD programme has not yet started.  
 - 34 -   -IPA Annual Report 
The first IPA annual report was established in Augus t 2008 in the aftermath of the IPA 
Monitoring Committee of 2 July 2008. As the imp lementation of the IPA programmes had not 
yet started, the Croatian authorities mainly re ferred in their report on progress made at that 
time in the IPA accreditation process for all compone nts, as well as on the preparations for the 
implementation of the IPA programmes.  
3.3.3.  Evaluation results and lessons learned  
No IPA evaluation was carried out in 2008, as th e first IPA programmes were only adopted in 
the end of 2007 and implemen tation did not start in 2008. 
3.3.4.  Sectors with positive results- Success story  
No IPA projects were finalised in the course of 2008. 
 - 35 -   4. FORMER  YUGOSLAV  REPUBLIC  OF MACEDONIA 
4.1. The year in review 
4.1.1.  Political developments 
The former Yugoslav Republic of Macedonia made  some progress in the course of 2008 but 
did not yet meet the political criteria. The pa rliamentary elections of  2008 did not meet key 
international standards and the recommendati ons of the Organisation for Security and 
Cooperation in Europe (OSCE)/Office for Democratic Institutions and Human Rights (ODIHR) need to be fully addressed. The lack  of constructive political dialogue between 
major political parties and actors adversely affected the functioning of the political 
institutions; increasing efforts to foster political dialogue are now being made. Steps have 
been taken to address key Accession Partnership priorities and further efforts are required. 
The implementation of the Ohrid Framework Agreement is contributing to the consolidation of democracy and the rule of law. The adopti on of a law on languages marked an important 
step forward in relations among the ethnic comm unities of the country. Further efforts in a 
constructive spirit are needed to fulfil the objectives of the Ohrid Agreement. The conduct of the early parl iamentary elections of 200 8 was marred by violence and 
irregularities. The authorities began to bring th e perpetrators to justice and to address the 
OSCE/ODIHR recommendations on the conduc t of elections, notably by amending the 
electoral code. A new government coalition of  a multi-ethnic character was established in 
July. Opposition parties boycotted the new Parlia ment for a prolonged period and Parliament 
made extensive use of emergency procedure to adopt legislation. Signif icant further efforts 
are needed to improve and sustain political dialogue. As regards public administration reform there has been some pr ogress with the introduction of 
salary incentives and the adopt ion of a continuous training sy stem, as required by the law on 
the civil service. However, little progress has been made to ensure that senior recruitments are based on professional qualifications. Priority needs to be given to creating a stable, 
professional and merit-based civil service. The ro le of the Civil Servants Agency needs to be 
strengthened and the capacity of the human res ources units in line ministries needs to be 
increased. Implementation of police reform progressed. The eight new regional commanders 
and all 38 new local commanders  were appointed as required by law. Training of police 
officers continued and human re source management improved. However, the politicisation of 
the senior levels of the police in some areas raises serious concerns. 
Good progress was made on judicial reform . The new Court of Appeal and the new 
Administrative Court and th e Judicial Council were func tioning and the new Council of 
Public Prosecutors started to meet. The Academ y for training judges and prosecutors was in 
place and new IT systems were introduced into the courts. However, further strengthening of 
the judiciary is required as regards its i ndependence, efficiency, human resources and 
budgetary framework. The vacancies in the pros ecution service need to be filled. Case 
backlogs persist and a track r ecord of implementation of the recent reforms remains to be 
established, in particular as regards the impa rtiality, accountability and efficiency of the 
judiciary. Further progress was made in implementing an ti-corruption policy. The government's Action 
Plan was allocated a specific budget. Specia l investigation measures may be used in 
corruption cases. An Action Plan  against conflict of  interest was adopted. There were 
convictions in some high-profile cases. The perception of corrupti on somewhat improved. 
However, corruption remained widespread and constituted a particul arly serious problem. 
Further steps are necessary, in particular to  strengthen operational coordination amongst law 
 - 36 -   enforcement agencies and to implement provi sions on financing of political parties and 
campaign financing 
4.1.2.  Macroeconomic developments and structural reforms 
There has been further progress towards establ ishing a functioning market economy. It should 
be able to cope with competitive pressures and market forces within the Union in the medium 
term, provided that it vigorously implements its  comprehensive reform programme in order to 
reduce significant structural weaknesses. Despite  the relative insulation of the country from 
the international financial mark ets, it will not be immune by the global economic crisis. 
Following the positive economic trends until 2008, the second semester of the year showed 
the first negative signals and the forecast for 2009 is negative especially concerning growth, unemployment rate as well as fiscal and current account deficit. Despite this situation the Government plans a policy of further fiscal expansion, which risks wo rsening the external 
vulnerabilities.  
4.1.3.  Progress in meeting the acquis communautaire  
The former Yugoslav Republic of Macedonia made further efforts to improve its ability to 
assume the obligations of membership. There was some progress in the fulfilment of the 
priorities of the Accession Partnership. However,  the country still faced major shortcomings 
in implementing and effectively enforcing le gislation. Adequate human and financial 
resources for the full implementation of the acquis were lacking. 
4.2. IPA in 2008 
4.2.1.  MIPD 2008-2010 
Based on the assessment of strategic needs and pr iorities set out in se ction 1 the pre-accession 
assistance strategy for the period 2008-2010 is co ncentrated on three areas of activity: 
(1) Support to Institution Building 
(2) Improve cross-border cooperation 
(3) Prepare for participation in the Community 's cohesion and rural development policy 
 
Table 1: the former Yugoslav Republic of Macedonia: Multi-annual Indicative Financial 
Framework (in million €)  
Component 2008 2009 2010 2008-
2010 
I. Transition Assistance and Institution Building 39.9 38.1 36.3 114.3 
II. Cross-Border Cooper ation 5.3 5.6 5.7 16.6 
III. Regional Developm ent 12.3 20.8 29.4 62.5 
IV. Human Resources 
Development 6.0 7.1 8.4 21.5 
V. Rural Development 6.7 10.2 12.5 29.4 
Total  70.2 81.8 92.3 244.3 
 
 - 37 -   4.2.2.  Programming exercise 
Table 2: Indicative financial allocation for the former Yugoslav Republic of 
Macedonia per component for the year 2008 (in million €) : 
 
Former Yugoslav Republic of Macedonia   
Component  2008 
I. Transition Assistance / Institution Building 41.1 
II. Cross Border Cooperation  4.1 
Of which The former Yugoslav Republic of 
Macedonia/BG 1.23 
Of which The former Yugoslav Republic of 
Macedonia/GR 1.34 
Of which The former Yugoslav Republic of 
Macedonia/AL 1  
Of which ERDF programmes – Translational 0.5  
Of which The former Yugoslav Republic of Macedonia/ 
northern border with Serbia and Kosovo (UNSCR 1244) (funds transferred to 
Component 1 - 1.2 million) 
III. Regional Development  12.3 
Of which Priority 1 - Transport Programme  9.25 
Of which Priority 2 - Environment Programme  2.312 
Of which Measure 3 - TA 0.738 
IV. Human Resources Development  6.0 
Of which Priority 1 -  Reducing Unemployment 2.698 
Of which Priority 2 -  Education and Training 1.8 
Of which Priority 3 - Social Inclusion 1.2 
Of which  Measure 4 - TA 0.302 
V. Rural Development 6.7 
Of which  Priority axis 1 – Market efficiency and 
Implementation of Community Standards 5.226 
Of which  Priority axis 3 – Development of Rural 
Economy 1.206 
Of which  Measure 4 - TA 0.268 
TOTAL: 70.2 
 - 38 -   Programmes for components II, III, IV and V are adopted for three years. Financial 
commitments are made annually and ther efore figures above are just for 2008.  
4.2.2.1.  Component I: Transition Assistance and Institution Building 
Table 3: Component I - Trans ition Assistance and Institution Building 2008 for the former 
Yugoslav Republic of Macedonia (in million €): 
 
 
Priority axis Projects Budget 
I Priority axis 1 Political Criteria 14.100.000 
 1.1 DIS 1.600.000 
 1.2 Support to fiscal decentralisation 1.350.000 
 1.3 Further support to  Judiciary 1.600.000 
 1.4 Integrated Border Management 5.950.000 
 1.5 Democracy and Fundamental 
Rights 2.400.000 
 1.6 Civil Society 1.200.000 
II Priority axis 2 Socio-Economic Development 3.100.000 
 2.1 MAPAS 1.000.000 
 2.2 BAS- TAM 2.100.000 
III Priority Axis 3 ACQUIS 14.900.000 
 3.1 Free Movement of Goods 1.800.000 
 3.2 Public Procurement 1.200.000 
 3.3 Customs 3.500.000 
 3.4 Agriculture 2.000.000 
 3.5 Veterinary 3.300.000 
 3.6 Environment 3.100.000 
 IV Supporting Programmes  5.022.001 
 4.1 Project Prepar ation and Support 
Facility  3.022.000 
 4.2 Community Programmes and 
Agencies 2.000.000 
 - 39 -   TOTAL 37.122.001 
 
The National programme under the IPA – Tran sition Assistance and Institution Building 
Component for the year 2008 aims at providi ng assistance for political criteria, socio-
economic criteria, ability to assume the obl igations of EU membership and support to 
programming and participation in Community programmes and Agencies. 
The relevant Financing Agreement with the former Yugoslav Republic of Macedonia was 
signed on 23 February 2009.The Framework Ag reement between the European Commission 
and the former Yugoslav Republic of Macedoni a, which gives the legal and financial 
framework for the implementation of al l IPA programmes betw een 2007 and 2013, was 
signed on 30 October 2007. The necessary ratif ication by the Parliament took place on 30 
January 2008. Under political criteria the 2008 National programme will provide assistance to contribute to 
strengthen the capacity of the institutions to manage and implement the Operational Programmes, support the process of fiscal dece ntralization, strengthen  an independent and 
efficient judicial system and to the development of integrated border management capacities in accordance with the European Schengen standard s. It will also support the participation of 
the civil sector in the decision making process and in providing social services. Under Socio-
economic Requirements the programme will provi de assistance to promote the development 
and sustainability of SMEs in the country and to reinforce the institutional capacity to regulate 
and supervise fully funded pension system inst itutions. The support under the priority axis 
"ability to assume the obliga tions of membership" will incl ude among others support to the 
public procurement system, support to the improve ment of the quality infrastructure in the 
areas of accreditation, standa rdization and metrology as well as the development of the 
administrative capacity to adopt and implement the acquis  in the areas of agriculture 
environment and veterinary services. Additiona lly the programme supports the participation 
of the country in certain Community Programmes. 
 
4.2.2.2.  Component II: Cross-Border Cooperation 
New financial allocations were approved in 2008 to support three bilateral CBC programmes 
between the former Yugoslav Republic of Macedonia and Albania, and with neighbouring 
Member States Bulgaria and Greece. Besides, IPA Component II also continued financing the 
participation of the country in  the ERDF European Territor ial Co-operation transnational 
programme "South-East Europe". 
4.2.2.3.  Components III and IV: Strategic Coherence Framework 
As required by Article 154 of Commission Regulation (EC) N° 718/2007, the former 
Yugoslav Republic of Macedonia prepared a Strategic Coherence Framework (SCF) for the period 2007-2013, covering IPA components III a nd IV. Its purpose is to set the overall 
strategic framework for programming of resources in the context of the national priorities for 
social and economic developmen t and Community priorities fo r cohesion, thus constituting a 
key reference document for programming IPA regional development and human resources 
development components. The SCF is a key docum ent to introduce structural funds strategic 
planning to candidate countries (a "mini NSRF"), reinforcing the role of IPA assistance under 
components III and IV as a precursor to struct ural funds. The prepara tion of the Strategic 
Coherence Framework was coordinated by th e Strategic Coordina tor for IPA regional 
development and human resources developmen t components. Throughout its preparation 
extensive coordination has taken place within the national admini stration, particularly the line 
ministries who will be involved in the implem entation of components III and IV programmes. 
Once finalised, it was transmitted to the Commission for information and verification of consistency with the requirements of the re gulation, but the Strategi c Reference Framework 
 - 40 -   remains a national document. Over the pe riod 2007-2013, assistance under Component III 
will be rebalanced from transport sector to environment sector. The percentage of resources allocated to the environment sector will be  progressively aligned with other candidate 
countries, in line with the needs of the country , the development of adequate strategies and 
investment planning and the capacity to prepare and implement infrastructure investments in 
the environment sector. 
4.2.2.4.  Component III: Regional Development 
The multi-annual Operational Programme (OP)  for Component III was prepared by the 
national authorities during the year 2007 in close cooperation with the Commission. The OP 
obtained the favourable opinion of  the Coordination Committee of the Structural Funds. The 
Regional Development OP was adopted by Commission Decision on 29 November 2007.  
Component III 2007 2008 2009 Total 
III - Regional Developm ent 7.4 12.3 20.8 40.5 
 
Its overall objective is to s upport the sustainable developmen t of the country through the 
improvement of transport and environment infrast ructure. Assistance in the transport sector 
focuses on the continuation of the developmen t of the South East Europe Core Regional 
Transport Network (corridors VIII and X). This strategy is strongly supported by IFIs who provide substantial funding (namely the European Investment Bank (EIB)), to permit the completion of strategic transport corridors whic h will benefit the whole region. The priorities 
shall be progressively shifted from corridor X to  corridor VIII as well as from road to rail. 
Concerning assistance in the environment sector , clearly targeted investments will focus on 
waste water treatment and solid waste manage ment where the impact to the population and 
natural environment is the greatest. Within the operational programme, a separate priority on technical assistance has been introduced, to  support national structures managing IPA, 
including ensuring project preparation of hi gh standards for current programmes and for 
future programming periods.  The institutional set-up which has been set in pl ace for the management of IPA component III 
programme concentrates financial management in  the Ministry of Finance (Central Financing 
and Contracting Department, Natio nal Fund) that delegates some technical tasks to the line 
ministries concerned (transport and environment). 
4.2.2.5.  Component IV: Human Resources Development 
Concerning Component IV, the OP "Human Resources Development" was adopted on 7 
December 2007. It encompasses three priority axis: "Employment – Attracting and retaining 
more people in employment", Education and Training – Investing in human capital through 
better education and skills", a nd "Social Inclusion – Promoting an inclusive labour market".  
 
Component IV 2007 2008 2009 Total 
IV – Human Resources Development 3.2 6.0 7.1 16.3 
4.2.2.6.  Component V: Rural Development  
For Component V, a multi-annual program me for the Rural Development "IPARD 
Programme for 2007-2013" was adopted in 20083 .  The IPARD programme consists of 3 
priority axes: "Improving market efficiency and implementation of Community standards", 
"Preparatory actions for implementation of th e agri-environmental measures and local rural 
development strategies" and "Devel opment of the rural economy".  
                                                 
3     The programme was adopted by the Commission Decision C/2008/677 on 25 February 2008. 
 - 41 -   It should also be noted that the fi rst modification of the IPARD Programme4 took place during 
2008. The proposed amendments concerned the incl usion of an additional amount for the year 
2010, as well as a number of technical modifications in order to facilitate the implementation of the Programme and the accreditation of the ope rating structure. The first modification of 
the IPARD Programme received a positive opini on of the Rural Development Committee in 
September 2008.  
Component V  2007 2008 2009 2010 TOTAL 
V–Rural 
Development  2.1 6.7 10.2 12.5 31.5 
 
4.2.3.  Implementation modalities and structures 
The IPA Regulation stipulates that implementati on of Components III, IV  and V is subject to 
the conferral of management by the Commission to  the beneficiary country. This is expected 
to take place in the second half of 2009. For Components I and II, direct centralised 
management – i.e. the Commission (EC Delegati on to Skopje) acting as contracting authority 
on behalf of the beneficiary count ry – is allowed for an initial phase as long as conferral of 
management power (decentralised management) has not been granted. In 2008 the Commission supported through CARDS the nationa l authorities in th eir preparation for 
decentralised management. Assistance was provi ded to the structures and authorities as 
defined in article 21 of the IPA Implementing Regulation to prepare fo r their accreditation. 
This is being done via intensiv e training and hands-on support for the elaboration of manual 
of procedures, programme operational guideli nes and implementing agreements amongst the 
different structures and authorities. After a self-assessment exercise performed by the 
National Authorities during the fi rst quarter of 2008, to verify th at the system was complying 
with the IPA Regulation, the compliance assessme nt phase carried out by an external auditor 
started in August and was finalised in December 2008. The former Yugoslav Republic of Macedonia's participation in hor izontal nuclear safety, custom s and education programmes is 
also funded from its component I envelope . These programmes are not included in the 
component I national programme as they will are being implemented on a multi-country basis 
and be managed centrally by the European Commission in Brussels.  
4.2.4.  Overview of IPA programmes implemented 
Table 4: The former Yugoslav Republic of  Macedonia-Status of  financial assistance 
at the end of December 2008 (in million €) 
 Allocated Contracted RAC %Contracted RAL %Paid 
IPA 2007 
Comp 1 34.942 8.681 26.261 24.8 % 32.043 8.3 % 
IPA 2007  
Comp 2 4.879 0 4.879 0 % 4.879 0 % 
IPA 2008 
Comp 1  37.122 0 37.122 0 % 37.122 0 % 
IPA 2008 
Comp 2 4.076 0 4.076 0 % 4.076 0 % 
 
                                                 
4   The first modification of the IPARD Programme was adopted by the Commission decision C/2008/8290 on 
17 December 2008. 
 - 42 -   4.2.4.1.  Component I: Transition Assistance and Institution Building 
The year 2008 was a year of preparation for implementation. This refers to both the building-
up of the necessary human resources as well as to  the launch of tenders, since the transfer of 
CARDS files from the European Agency for R econstruction to the Delegation occurred in 
September 2008. As for the actual figures of Co mponent I contracted and disbursed in the 
period January – December 2008, the situation was as follows: 
 
The contracted percentage of 25% refers to the "Support to the implementation of the Police 
Reform Strategy" project fiche which started in 2008 and a numb er of Framework Contracts, 
launched under "Project Preparation Facility S upport" fiche, needed for preparation of the 
respective terms of reference/twi nning fiches and tender dossiers. 
The following Framework Contracts were launche d through the Project Pr eparation Facility:  
 
Project Preparation Facility Status in 2008 
1. FWC to prepare ToR and Twinning Light for PAR – 
General Secretariat Contracted  
2. FWC to prepare ToR for PAR – Civil Servants Agency  Contracted  
3. FWC to prepare ToR and Twinning fo r Energy Regulator Contracted  
4. FWC to prepare ToR and Twinning Light for Insurance 
Supervisory Agency  Not contracted  
(ISA not 
established yet)  
5. FWC to prepare ToR for the Administrative Court Contracted  
6. FWC to prepare ToR for TA and Twinning Light for 
Taxation Reforms Contracted  
7. FWC to prepare ToR for Municipal Awards Contracted 
8. FWC to prepare ToR for TA for Statistics  Contracted  
9. FWC to prepare ToR for IPA Tr aining Facility Contracted  
10. FWC to prepare ToR and Twinning Light for decentralised 
management Not contracted  
11. FWC to prepare ToR for Local Infrastructure Contracted 
12. TA for preparation of Invest ment project for WW collection 
and Treatment in Prilep Short listing  
 
In the course of 2008, the EC Delegation under took all necessary meas ures to prepare the 
tender dossiers for projects such as statis tics, energy regulator  commission, taxation, 
administrative court, public administration refo rms, and local infrastructure. The respective 
tender invitations will be launched in 2009.The  delayed implementation of the Framework 
Contract for drafting a Terms of Reference for a Technical Assistance and a fiche for 
Twinning Light in the area of in surance supervision is due to the fact that the Agency for 
Supervision of Insurance was not yet set up. A nother framework contract that was not yet 
launched is the one for decentralised management, due to the fact that the CARDS 2006 technical assistance (TA) for setting up the decen tralised management system will be ongoing 
until July 2009.  The reason for not contracting the three major pr ojects in the customs sector (€2.4 million) 
was the repetition of the short listing proce dure, which was re-completed only in October 
2008, as an earlier draft of the shortlist had been rejected by the EC Delegation. The launch of 
the three tenders is scheduled for the 1
st quarter of 2009. 
4.2.4.2.  Component II: Cross-Border Cooperation 
The implementation of all IPA CBC programmes is lagging behind. In spite of the fact that 
the four programmes were adopted towards th e end of 2007, and all respective Financial 
 - 43 -   Agreements were signed in 2008, joint management  structures were not in place, therefore no 
call for proposal could yet be launched and c ontracting deadlines fo r 2007 funds are getting 
closer. 
The Cross Border Institution Building programme  (CBIB) phase II started end of November 
2008. This TA programme aims at improving re gional co-operation in the Western Balkans 
by developing institutional and project preparat ion capacities in relation to IPA Component II. 
4.2.4.3.  Component III: Regional Development 
There was no implementation of IPA proj ects under Component III in 2008. Some 
preparatory activities ha ve however started mainly related to the preparation and submission 
to the EC of the IPA applications for two ma jor projects under the "Regional Development" 
Operational Programme. 
4.2.4.4.  Component IV: Human Resources Development 
There was no implementation of IPA pr ojects under Component IV in 2008  
4.2.4.5.  Component V: Rural Development 
The year 2008 was the year of the preparati on for accreditation of the IPARD Operational 
Structure (Managing Authority and IPARD Agency). In 2008 there was no programme 
implementation under Component V, due the fact  that the IPARD operational bodies were not 
ready for conferral of management. Under th e IPA, at the end of 2008, the IPARD was the 
only component to be implemented on a fully decentralised basis. 
In view of preparation for confe rral the management of aid without ex ante  control, the audit 
team from the DG AGRI responsible for verifica tion of compliance with accreditation criteria 
made two Advisory Missions to the former  Yugoslav Republic of Macedonia during 2008.  
4.2.5.  Participation in Community  Programmes and Agencies 
A Protocol to the SAA on a Framework Agreemen t on the general principles for participation 
in Community Programmes was signed in Novemb er 2004. In accordance with Articles 2 and 
5 of this Framework Agreement, the former  Yugoslav Republic of Macedonia shall pay a 
financial contribution to the budg et of the Community programmes  in which it participates 
and may request IPA assistance in  this regard. IPA funds may c over up to 90% of the country 
"entry tickets" to a Comm unity programme or Agency. 
€1.800.000 was allocated from IPA 2007 component I to co-finance the pa rticipation of the 
former Yugoslva Republic of Macedonia in, inter alia,  the following indicative list of 
Community programmes and agencies in 2008 or 20095: PROGRESS, Europe for Citizens, 
Media, Culture, life +, Fiscalis 2013, CUSTOMS 2013. The IPA Programme 2008 foresees a Co mmunity contribution of €2.000.000 to the 
participation of the former Y ugoslav republic of Macedonia in, inter alia, the following 
indicative list of Community programmes and Ag encies in 2009 or the subsequent years: 
Seventh Research Framework Programme, CIP-EIP, ICT, I EE, PROGRESS, Europe for 
Citizens, Culture, Media, Fiscalis, CUSTOMS,  Health, Life-long Lear ning, Youth in Action, 
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), European 
Fundamental rights Agency (FRA), Financial Instrument for Civil Protection, European 
Environmental Agency (EEA). 
                                                
 
5 "Entry tickets" for 2008 for the Seventh Framework Research programme and entrepreneurship and Innovation 
of theCopmpetitiveness and Innovation Framewor k Programme (CIP-EIP) was financed through 
CARDS. 
 - 44 -   .  
4.3. Monitoring and Results  
4.3.1.  State of play for IPA Monitoring Co mmittee and Sectoral Monitoring 
Committees 
Programme implementation under IPA shall be monitored through the IPA Monitoring 
Committee assisted for each component by Sectoral Monitoring Committees. Each 
Committee shall satisfy itself as to the effectiveness and quality of the implementation of the programmes and operations. They may make pr oposals to the Commission and the national 
IPA-coordinator, with a copy to the nationa l authorising officer, for decisions on any 
corrective measures to ensure the achieveme nt of programme objec tives and enhance the 
efficiency of the assistance provided. 
4.3.2.  IPA Monitoring Committee 
The I IPA monitoring committee was held on 21 November 2008 in Skopje. The respective 
Rules of Procedure were adopted by consensus.  The meeting served to review the state of 
play of the different component s, with particular emphasis on the situation as regards the 
accreditation for decentralised management. 
4.3.2.1.  Component I 
The Component I Sectoral Monitoring Committ ee was held on 17 September in Skopje. The 
respective Rules of Procedure we re adopted by consensus. The meeting served to review the 
state of play of the component I for the y ears 2007 and 2008 as well as the programming for 
IPA 2009. A point on the situation as regard s the accreditation proce ss for decentralised 
management with ex ante  controls – component I was also made. 
4.3.2.2.  Component II 
The Joint Monitoring Committees (JMC) of th e cross–border co-operation programmes with 
Albania and Bulgaria were officially set up in  2008, within three months of the approval of 
the respective programmes. 
4.3.2.3.  Component III 
The second and third sectoral Monitoring Comm ittees were held 25 June and 17 December 
2008 respectively. 
4.3.2.4.  Component IV 
The sectoral monitoring committees for the OP Human Resources Development were held on 
26 February and 12 December 2008. 
 - 45 -   4.3.2.5.  Component V 
The first and second IPARD Monitoring Com mittees took place on 27 May and 21 November 
2008 respectively. At the first IPARD M onitoring Committee the members approved the Rules 
of procedure for the IPARD Monitoring Committees. Parallel to this activity the first proposed 
amendments on the IPARD Programme 2007-2013 were approved. For the efficiency and correctness of co-ordination and reporting on the monitoring and evaluation of the 
Programme, the relevant support documents incl uding the monitoring tables were presented 
and approved in the second IPARD Monitoring Committee. The national authorities also 
informed the IPARD Monitoring Committee about  publicity activities to increase the public 
awareness of the programme. 
4.3.3.  Annual and final reports on implementation 
In 2008, the draft IPA Annual report was not yet r eady to be sent to the members of the IPA 
Monitoring Committee for its examination 
4.3.4.  . Evaluation results and Lessons learned 
An ex ante  evaluation was carried-out by independe nt experts for the Rural Development 
programme. The conclusions/recommendations of this  report were taken into consideration in 
preparing the final version of the programme. Additionally , operational programmes under 
components III and IV were subject to ex ante  evaluations carried out in accordance with 
Structural Funds guidelines and procedures. No additional IPA evaluations were carried out, as the first IPA programmes were only adopted at the end of 2007 and implementation was not yet completed. 
4.3.5.  Sectors with positive results – Success story 
No IPA projects have been fi nalised in the course of 2008. 
 
 
 - 46 -   5. KOSOVO  (UNDER UNSCR  1244/99)6 
5.1. The year in review  
5.1.1.  Political developments 
On 17 February 2008, the assembly of Kosovo7 declared Kosovo an independent and 
sovereign state. To date, Kosovo's indepe ndence has been recognised by 56 countries, 
including 22 EU Member States. The Constitu tion of the Republic of Kosovo entered into 
force on 15 June 2008. On 8 October, the UN General Assembly requested the advisory 
opinion of the International Court of Justi ce on the legality of Kosovo’s declaration of 
independence. The rule of law mission know n as "EULEX" began on 9 December 2008. It 
supports Kosovo by mentoring, monitoring and a dvising the Kosovo author ities in the areas 
of police, customs and justice. 
5.1.2.  Macroeconomic developments and structural reforms 
Shortcomings in statistics continued to hamper  a comprehensive assess ment of the economic 
situation in Kosovo. Real Gross Domestic Prod uct (GDP) grew by an estimated 5% in 2008. 
Economic activity is increasing ly determined by domestic factors and private sector 
dynamism. GDP per capita in 2008 stood at roughly €1.80, or around 5.5% of the EU-27 average. The unreliable energy supply, with se veral and lengthy power cuts a day, remained 
the single most serious restra int on growth. 45% of the population lived below the poverty 
threshold. The balance of payments was negative ; the value of exports was only 10% of that 
of imports. There was a trade deficit of ove r 40% of GDP which was partly financed by 
financial inflows (remittances and Foreign Di rect Investment (FDI )). Unemployment was 
estimated above 40% of the ac tive population, and particular ly concerned women and youth. 
However, in part due to the significant size of the informal economy, changes in registered 
unemployment may not correctly  reflect the actual dynamics of the economy. The average 
annual consumer price inflation rose to 14% mid 2008  
5.1.3. Progress in meeting the acquis.  
In June 2008, the European Council recalled its  willingness to assist the economic and 
political development of Kosovo through a clear  European perspective, in line with the 
European perspective of the region. Plenary m eetings of the SAP Tracking Mechanism (STM) 
were held in May and December 2008, as well as a number of Sectoral STM meetings 
throughout the year. The EU sat out reform prior ities for the authorities  through the European 
Partnership, and a revised European Partners hip for Kosovo was adopted in February 2008. 
The government approved its European Partners hip Action Plan (EPAP) in July 2008. Kosovo 
continued to benefit from the Instrument for Pre-accession (IPA), macr o-financial assistance 
(MFA), CARDS, the Instrument for Stability and others. The European Commission's Liaison 
Office (ECLO) in Kosovo took over responsib ility for projects financed under the CARDS 
programme from the European Agency for Reconstruction (EAR) in July 2008.  
On 11 July, the European Commission organised a Donors' Conference for Kosovo in 
Brussels. Participants pledged a total of ar ound €1.2 billion. The combined pledge made by 
the Commission and the EU Member States amounted to nearly €800 million. Following the 
Donors' Conference, Kosovo merged its Euro pean Integration and Donor Co-ordination 
                                                
 
6      Under United Nations Security Council Resolution 1244 of 10 June 1999. 
7      Under UNSCR 1244/99. 
 - 47 -   structures and agendas into a new ‘Agenc y for the Coordination of Development and 
European Integration’ (ACDE I) established in October 2008. 
5.2. IPA in 2008 
5.2.1.  MIPD 2008-2010 
On 14 August 2008 The Commission adopted the Multi-annual Indicative Planning Document 
2008-2010 for Kosovo (under UNSCR 1244/99). EC as sistance supports institution building 
efforts, and assists economic and political deve lopment through a clear Eu ropean perspective, 
in line with the European pe rspective of the region. Theref ore, the major challenges for 
Kosovo that are addressed by the Multi-Annual Indicative Planning Document (MIPD) are: 
Political Criteria:  EC assistance under this heading shoul d focus in particul ar on support to 
the development of civil society, the protection of the Serb and other minorities and the rule of law in Kosovo. The Commission commissioned a comprehensive sector paper on the Rule 
of Law, including a needs assessment and cost estimate. Economic Criteria:  EC assistance should also be us ed in support of developing Kosovo’s 
economy and improving the socio-economic environm ent of all communities in a sustainable 
way. This should require measures that can catalyse IFI and priv ate sector investment, taking 
due account of the limitations the status issue imposes on such investment. At the same time, 
more efforts should be devoted to help the auth orities develop a reform agenda that promotes 
fiscal sustainability, good governance of public  expenditure, sound financial management and 
knowledge society. Relevant macro-economic analys is and sector strategi es to underpin these 
actions are currently under deve lopment or revision, notably as concerns transport, energy and 
education. The European agenda:  In addition to the above, EC assistance should continue to support 
Kosovo's European vocation and its integration into the Western Balkans region as a whole. 
Guided by European Partnership priorities, a gradual approximation to EC legislation in 
specific sectors, increased attenti on to the rule of law in the wi der sense, and preparations for 
Kosovo's participation in Community progr ammes should be some salient features. 
The indicative funding available for the period 2008 – 2010 amounts to €258.1 million for Component I (Transition Assistance and Inst itution Building) and Component II (Cross-
Border Co-operation). The considerable increase in 2008-2010 is due to the additional allocation of €60 million to the IPA Component I in 2008 to accompany the expected challenges resulting from status resolution.  
Table 1: Kosovo: Multi-annual Indicati ve Financial Framework (in million €): 
 
Component 2008 2009 2010 2008-2010 
I. Transition 
Assistance and Institution Building 184.7
 106.1  64.5  355.3  
II. Cross-Border 
Cooperation 0 0  2.8  2.8  
Total 184.7  106.1  67.3  358.1  
 
 - 48 -   5.2.2.  Programming exercise 
Table 2: Indicative financial allocation for Kosovo per component for the year 2008 
(in million €)  
Kosovo (under UNSCR 1244/99) 2008  
I. Transition Assistance and institution 
Building 184.7 
Of which:                        Annual Programme 182.7 
Nuclear Safety Programme 0.2 
Tempus Programme 1.8 
II. Cross-Border Cooperation 0 
Total 184.7 
 
 
5.2.2.1.  Component I: Transition Assistance and Institution Building 
The allocation for the 2008 Kosovo annual prog ramme part I was €124.7 million, all of which 
will be implemented under component I (including €2.8 million originally allocated to component II). This allocation includes a cont ribution to two multi-beneficiary programmes 
(TEMPUS and Nuclear Safety) amounting to €2.0 million. The Commission adopted this 
programme on 6 October 2008. It co ntains the following projects: 
Table 3: 
Component I - Transition Assistance and In stitution Building 2008 for Kosovo (in 
million €):  
Priority Axis Projects Budget 
(EUR million)
Priority axis 1 Political 
Criteria (26%)  Strengthening the Rule of Law  13.0 
 Preserving Cultural Heritage in Kosovo  2.5 
 Public Finance Administration  6.0 
 Public Administration Reform (EU Integration)  4.0 
 Support to Media and Civil Society  2.5 
 Sustainable Return and Reintegration  4.0 
Priority axis 2 Economic 
Criteria (56%)  Rural Development System and Pilot Testing  4.0 
 Support to Energy Efficiency and Transmission  9.5 
 Support to Privatisation Process  6.0 
 Support to Mines and Minerals Sector  1.0 
 Municipal Infrastructure  14.0 
 Regional Development Structures and Instruments  6.6 
 Support to Education and Employment 10.0 
 Improving Environment 18.0 
Priority axis 3 European 
Standards (8%)  Support to Animal Identif ication and Registration 3.02 
 Support to Civil Aviation Regulatory Office 1.0 
 Support to the Statistical Office of Kosovo 1.5 
 Support to Health 1.5 
 Strengthening Customs and Taxation 3.0 
 - 49 -   Priority axis 7 Support 
Activities  Reserve and Technical Assistance Facility 11.58 
TOTAL   122.7 
 
Furthermore, on 19 December 2008 the Co mmission adopted the 2008 Kosovo annual 
programme part II, financed by an additiona l allocation of €60 million to Kosovo following 
the Commission's pledge at the July 2008 Donor s' Conference. It contains the following 
projects:  
Priority Axis Projects Budget (€ million) 
Priority axis 1 Political 
Criteria Upgrade of Infrastructure in 
the Rule of Law Sector 25.0 
Priority axis 2 Economic 
Criteria Infrastructure Project Facility 
– Kosovo Window 25.0 
 Contribution to the Word 
Bank's Trust Funds for Kosovo 10.0 
TOTAL  60.0 
 
5.2.2.2.  Component II: Cross-Border Cooperation 
Similar to 2007, in 2008 the conditions for pr ogrammes under Component II in Kosovo were 
not met. The funds for Component II have thus been transferred to Component I. 
5.2.3.  Implementation modalities and structures 
The European Commission Liaison Office (ECL O) implements IPA programmes in Kosovo 
under deconcentrated centralised  management. Some projects are implemented under joint 
management with international organisati ons (such as the Council of Europe). 
Kosovo furthermore participates in multi-bene ficiary programmes which are funded from its 
component I envelope. These are implemen ted on a multi-country basis and managed 
centrally by the European Commission in Brus sels.  The first application for medium-term 
assistance was presented on 22 May 2008. To date , 26applications have been accepted. These 
applications relate notably to privatisation, road traffic safe ty, civil aviation, fisheries, air 
quality, and approximation of legislation, inte rnational agreements, so cial welfare, cultural 
heritage, waste management, biodiversity, el ectricity transmissi on, private security 
companies, small arms and light weapons, corpor ate governance and assistance to the national 
assembly. Kosovo is at a very early stage as regard s the establishment of a roadmap for the 
decentralisation of the manage ment of EU funds without ex ante  controls by the Commission. 
As a first step, Kosovo needs to officially  appoint a National IPA Coordinator (NIPAC). 
Currently Kosovo's Deputy Prime Minister of ten acts as the NIPAC, however, to date 
financing agreements were signed by the Prime Minister. The EC is in process of supporting 
the Kosovo's authorities to take more ow nership of the annual programming process. 
5.2.4.  Overview of IPA programmes implemented 
Table 4: Kosovo-Status of financial assistance at the end of December 2008 (in 
million €) 
 Allocated Contracted RAC %Contracted RAL %Paid 
IPA 2007 62 29.8 32.2 48% 55.9 9.8% 
IPA 2008 182.7 0 182.7 0% 182.7 0% 
 - 50 -    
5.2.4.1.  Component I: Transition Assistance and Institution Building 
The European Commission Liaiso n Office (ECLO) took proper action to ensure an effective 
implementation of IPA 2007, and the very amb itious commitment target for 2008 was met. In 
2008 the ECLO committed 50% of the IPA 2007 pr ogramme for which it is responsible. 
The 32 projects committed in 2008 under IPA 2007 include 12 contracts awarded following a 
full tender evaluation process, 4 direct gran t agreements, 1 twinning contract and 15 
framework contracts. 
 
5.2.4.2.  Component II: Cross-Border Cooperation  
The funds initially foreseen for com ponent II under the 2007 and 2008 IPA annual 
programmes were transferred to component I. 
5.2.5.  Participation in Community  Programmes and Agencies 
There is no framework agreement concerni ng participation of Kosovo in Community 
programmes. Kosovo did not participat e in Community Programmes in 2008. 
 
5.3         Monitoring and Results 
5.3.1.      Monitoring 
Kosovo is included in the target area of th e ROM project managed by DG Enlargement's 
Regional Programmes Unit. Information on IP A 2007 and 2008 projects to be monitored was 
provided to the contractor of the ROM project. Their work plan includes projects under IPA 
2007 which will be monitored in 2009. No projects were monitored during 2008. 
5.3.2.      Evaluation results and lessons learned  
So far there are no evaluation results of  IPA programmes (2007 and 2008) in 2008 as 
implementation only started in 2008. 
5.3.3.      Sectors with positive results- Success story  
Given that 2008 was the first year of IPA pr ogramme implementation there has not been a 
strong impact of the projects implemented during 2008. However, there have been several positive project developments and results: The first twinning contract KS 07 IB AG 01 "Meeting EU Standards on Food Safety and 
Veterinary Services"  (€2.0 million) was notified on 18 December 2008. This project is 
financed under the IPA 2007 annual programme. Th e Member State twinni ng partners are the 
Federal Ministry of Agriculture and Consumer  Protection of Germany and the State Food and 
Veterinary Agency of Lithuania. Jazz festival in North Mi trovica (5-6 November 2008) - 
The European Commission was one of the main  sponsors of the sixth edition of the North 
City Jazz and Blues Festival – an international Jazz and Blues Festival held in North Mitrovica, 5-6 November 2008. This festival is one of the landmarks of cultural activities in 
Kosovo. In 2008, the festival welcomed six inte rnational and regional well known musicians. 
The festival also incorporated a workshop on playing piano and drums, attracting the 
participation of young people from the area. The North City Jazz and Blues Festival promote 
intercultural dialogue through music, but also  through side activities as a platform for 
socialising and revivi ng the cultural scene. 
Fete de la Musique in Pr istina (21 June 2008) - Fete de la Musique - “ Festa e Muzikës ” in 
Pristina, held for the first time in 2008, became a part of the worldwide celebration of this 
 - 51 -   day. As planned “Festa e Muzikës” was organi sed in different outdoor  and indoor venues in 
the city of Pristina as follows: 
• Mother Theresa – Stage at the National Theatre 
• NEWBORN – Piano programme  
• SHOPPING CENTRE – PALACE of Y OUTH – Classical music programme  
• YOUTH PALACE: Stage in the Parking at ODA Theatre. 
The “Festa e Muzikës” in Pristina  is officially registered as a part of the world celebration of 
the “Fête de la Musique” - http://www.fetedelamusique.culture.fr/ . Furthermore, it was part of 
the “ Les Echos de la Fête” - a multimedia world tour of Fête de la Musique. On 21 June, 
pictures from Pristina were transmitted to Fr ance and broadcasted on a website especially 
dedicated to this project www.echosdelafete.net . During a live show in Paris on 21 June, DJs 
and VJs mixed in sounds and pictures collected. Dokufest (4-10 August 2008) - The European Commission Liai son Office was one of the 
main sponsors of the seventh edition of Dokufe st – an international documentary and short 
film festival in Prizren, held from 4-10 August 2008. Dokufest showed 139 films and 
documentaries from many countries of the world.  The festival incorpor ated paralle l activities 
such as volunteerism, camping, photo exhibitions , newspaper edition, workshops, and music 
events, attracting a high number  of youth participants from the region and beyond.  Dokufest 
promotes intercultural dial ogue through films and documenta ries, but also through side 
activities as a platform for socialising. In 2008 the implementation of th e Government's programme for promoting energy 
efficiency and renewable energy  was supported through a feasibility study which identified 
and evaluated a set of energy savi ng measures in some public buildings in three cities, namely 
Pristina, Gjakova and Gjilan. Th e outcome of the study was th e technical specifications for 
implementing the most cost-effective measur es for reducing the energy consumption in 
selected buildings. The project for implementing the measures is funded under IPA 2008. In late 2008 the ECLO commenced two projects funded under IPA 2007 to support reforms 
in the energy and railways sectors . The goal of this a ssistance is to create  a stable regulatory 
environment for investments in energy and railways, and for improving the quality of services for the customers. The projects will contribute in the transition towards a market based 
railway transport and energy system, by stre ngthening the institutional capacity of the 
regulatory authorities who have a crucial role in establishing transparency and equal treatment 
in the market. Moreover, in the framework of the IPA 2008 annual programme, 5 Regional Development 
Agencies  were established in Decembe r 2008 as municipal associati ons in Pristina, Mitrovica, 
Peja, Gjilan and Peja regions. These Regional Development Agencies will encourage and 
facilitate cooperation of all regional stakehol ders in developing a nd implementing regional 
strategies.  
 
 
 - 52 -   6. MONTENEGRO 
6.1. The year in review  
6.1.1.  Political developments 
Following the signature of the Stabilisation a nd Association Agreement with the EU in 
October 2007, an Interim Agreement on trade and trade-related matters entered into force in January 2008 and was smoothly implemented. The reform process in Montenegro continued 
to be monitored through the enhanced perm anent dialogue and through the newly set-up 
institutional framework of the Interim Agreement. In 2008 the country enjoyed political stability  and continued to play a constructive role in the 
region.  A political dialogue meeting between the EU (tro ika) and Montenegro took place in February 
2008. The visa facilitation and readmission agreem ents are overall smoothly implemented. A 
visa liberalisation dialogue be tween the EU and Montenegro was launched in February 2008 
and a Roadmap, with concrete benchmarks, was submitted by the European Commission to Montenegro. The implementation of the "Roadm ap" would open the way to visa free travel 
for Montenegrin citizens. In December 2008 Montenegro submitted an  application for EU membership.  
6.1.2.  Macroeconomic developments and structural reforms 
During 2007 and 2008 Montenegro enjoyed a ra pid growth of over 7% p.a., supported by 
inflow of foreign direct  investment (FDI), tourism, financ ial intermediation, real estate and 
improved performance of the manufacturing industry. A prudent fiscal policy and higher than expect ed tax revenues have led to budget surpluses 
exceeding 3% of GDP and declining public debt to 32% of Gross Domestic Product (GDP) by 
end-2007. However, the very str ong expansion of lending, rapid growth of asset prices and 
rapidly growing wages have generated str ong demand pressures boosting consumption and 
investments and inducing strong imports resulti ng in massive current account deficits over 
40% of GDP in 2007.  
According to estimates of the IMF, the rapid expansion of the Montenegrin economy will slow down significantly in 2009 and 2010 due to the global credit crunch, the expected 
slowdown of FDI and a significant d ecrease of real estate sales. An adverse effect on tourism 
revenues is also expected; whereas the fall in aluminium prices have negatively affected the 
already critical situation of the aluminium company KAP (whose sales represented over 40% 
of Montenegro's industrial exports).  The authorities reacted promptly on financia l system by fully guaranteeing deposits up to 
(currently some €2 billion), as well as inter-bank credits, and offering the possibility of providing liquidity loans or recapitalisation of  domestic banks. To alleviate the negative 
impact of the crisis over the real economy, th e adopted budged 2009 foresees  a significant rise 
of the capital expenditure , earlier repayment of domestic debt, and the reduction of social 
contribution tax rate. In addi tion, electricity price subsidie s for Small and Medium-sized 
Enterprises (SME) and households were announ ced. Authorities are discussing credit 
agreements with the European Bank for R econstruction and Development (EBRD), the 
European Investment Bank (EIB) and the Worl d Bank to support infrastructural projects but, 
despite availability in case of a drastic deterioration, the government did not, by the end of 2008, yet express interest to cl ose a stand-by arrangement with  the International Monetary 
Fund (IMF). 
 
 - 53 -   6.1.3.  Progress in meeting the acquis communautaire 
In 2008 Montenegro made furthe r progress in alignment with European standards. On the 
whole, the implementation of obligations unde r the Interim Agreement since 1 January 2008 
was proceeding smoothly. Interim Agreement bodi es were set up. Policy-reform dialogue in 
other areas was taking place in the contex t of the Enhanced Permanent Dialogue.  
The 2008 progress report highlight ed areas where progress was expected, and where further 
efforts were needed. IPA programming took fully  into account the outcomes of the report in 
order to address the shortcomings.  
 
6.2. IPA in 2008 
6.2.1.  MIPD 2008-2010 
During the year 2008, the Multi-annual Indica tive Planning Document (MIPD) 2009-2010 
was adopted, and the MIPD 2009-2011 was pr epared. Both are in line with the 
recommendations of the Enlargement Strategy, the European Partnership, and the SAA, in 
addition to the National Plan for Integr ation (NPI) prepared by Government. 
In the revised MIPD, IPA Component I will support Montenegro in the following areas: 
– Political criteria- An increased importance is given to this priority axis which will thus 
focus on the consolidation of democratic in stitutions, reform of the judiciary, public 
administration reform including decentralis ation and local govern ment, fight against 
corruption and organised crime, human ri ghts and protection of minorities, anti-
discrimination, as well as the media. Civil society development will be given special 
attention for the promotion of dialogue; sm all grants will assist environment, anti-
discrimination, gender equality, social inclusion, health, business advocacy, and 
consumer protection8. 
– Economic criteria- This priority axis w ill concentrate on employment generation, 
education, research, social inclusion, hea lth, business environment, budget and fiscal 
management, rural development, food safet y, environment, energy, transport, as well 
as infrastructure and other activities wh ich will prepare the country for future 
structural funds. 
– Ability to assume the obligations of member ship- IPA will assist the introduction and 
implementation of the acquis  in all areas; the overall coordination of the European 
integration process; strengthe ning Montenegro's administ rative capacity to implement 
the SAA; preparing for the decentralised  management system with or without ex ante  
controls for EU funds management; and participation in Community Programmes. 
Component II will support cross-border cooper ation activities between  Montenegro and EU 
Member States as well as with adjacent Candidate and potential Candidate Countries; in 
complementarity with th e above priority axes. 
The indicative allocations to Montenegro under the Multi-annual Indicative Financial 
Framework (MIFF) for 2008-2010 amount to €99.9 million, as specified below in Table 1. 
Table 1: Montenegro: Multi-annual Indi cative Financial Framework (in million€) 
                                                 
8    It will be complementary to the EIDHR pr ogramme dealing with democracy and human rights 
 - 54 -    
6.2.2. Programming exercise 
Table 2: Indicative financial allocation fo r Montenegro per com ponent for the year 
2008 (in million €):  
MONTENEGRO 2008 
I TRANSITION ASSISTANCE AND INSTITUTION BUILDING 28.1 
OF WHICH:  NATIONAL PROGRAMME  26.8 
NUCLEAR SAFETY PROGRAMME 0.2 
TEMPUS PROGRAMME 1.1 
II CROSS BORDER COOPERATION 4.5 
OF WHICH:  CBC ADRIATIC PROGRAMME  1.25 
CBC MONTENEGRO AND CROATIA 0.5 
CBC MONTENEGRO AND BO SNIA & HERZEGOVINA 0.6 
CBC MONTENEGRO AND SERBIA 0.6 
CBC MONTENEGRO AND ALBANIA 0.6 
CBC PARTICIPATION IN ERDF SE EUROPE AND ERDF 
MEDITERRANEAN PROGRAMMES 0.95 
Programmes for component II are adopted for th ree years. Financial commitments are made 
annually and therefore figur es above are just for 2008 
6.2.2.1. Component I: Transition Assist ance and Institution Building 
The programming exercise for IPA 2008 was done  with the assistance of the European 
Agency for Reconstruction (EAR), in coor dination with the Nati onal IPA Coordinator 
(NIPAC) and the Secretariat for European Integr ation (SEI); In order to further improve the 
ownership of the programme the EC Delegation organized several seminars in which future 
beneficiaries were trained in wr iting the log frame, and in prep aring the project fiches. Project 
fiches were revised by the EC Delegation during summer 2008. 
The 2008 National Programme (Component  I) was adopted on 2 December 2008. 
Under "Political criteria", there are three projects for a total amount of €7.05 million. The 
projects focus on public administration reform and more specifically in decentralisation and 
local government, sustainable support to re fugees and displaced persons and media 
(transformation of the Radio television of M ontenegro into a public service broadcaster)  Component 2008 2009 2010 2008-2010 
I. Transition assistance and 
Institution Building  28.1 28.6 29.2  85.9 
II.Cross-Border 
Cooperation 4.5 4.7 4.8  14.0 
Total 32.6 33.3 34.0 99.9 
 - 55 -   Under "Economic criteria", there are four projects for a total amount of €7.5million, the 
projects concentrate on employment generation and im provement of the business 
environment and the support to the development of  environmental infrastructure (solid waste 
management in Niksic) and the Environmental Protection Agency.  
Under "Ability to assume obligations of membersh ip", there are six projects for a total 
amount of €10.65 million  The projects under this axis assist in the introduction and 
implementation of the acquis  in some areas including financia l markets, rural development, 
food safety, veterinary services, customs admi nistration, integrated border management and 
migration; 
In addition, an amount of €1.6 million  is foreseen for a project preparation facility and 
technical assistance as well as for support measures; while Tempus and Nuclear assistance 
projects are managed by Headquarters.  
Table 3: Component I-Transition Assistance and  Institution Building 2008 for Montengro (in 
million €) 
Priority axes  Total IPA (IB and INV) 
Priority axis 1 Political Criteria 7,05 
1. Local Government 4,3 
2. Refugees and DPs 1,5 
3. Public Broadcasting/RTCG 1,25 
Priority axis  2 Economic Criteria 7,5 
4. Employment 1,8 
5. Private Sector / SMEs 1,2 
6. Environment Infrastructure 3,5 
7. Environment EPA 1 
Priority axis  3 Ability to assume obligations of membership 10,65 
8. Financial Markets 1,2 
9. Rural Development 1,5 
10. Food safety 2 
11. Animal Disease Control 1,5 
12. Customs National AP 1 
13. Int. Border Management 2,45 
14. Migration 1 
Priority axis: Support measures 1,6 
TA & PPF 0,8 
Support measures 0,8 
TOTAL 26,8 
 
6.2.2.2. Component II: Cross-Border Cooperation 
IPA Component II encompasses four cross–bord er programmes between Montenegro and its 
Western Balkan neighbours: Croa tia, Bosnia and Herzegovina, Se rbia and Albania. Moreover, 
it includes the participation of Montenegro in the IPA Adriatic  cross–border programme with 
Member States. IPA Component II  also supports the particip ation of Montenegro in two 
ERDF transnational cooperation programmes: "South–East Europe" and "Mediterranean".  
 - 56 -   IPA CBC combines cohesion and external relation objectives and supports activities such as: 
(1) development of cross-border economic, so cial and environmental activities of border 
areas; (2) addressing common challenges in partic ular in the field of environment and public 
health and development; (3) promoting "peopl e to people" type actions, including among 
NGOs and local authorities. 
6.2.3. Implementation modalities and structures  
The 2008 Component I National Programme will be  implemented on a centralised basis by 
the European Commission in accordance with Arti cle 53a of the Financial Regulation and the 
corresponding provisions of the Implementing Ru les. The implementation of the programme 
is delegated to the EC Delegation in Montenegro.  
Montenegro's participation in horizontal nucl ear safety, and educati on programmes (Tempus) 
is funded from its component I envelope. These programmes are not included in the 
Component I national programme as they will be implemented on a multi-country basis and 
be managed centrally by the Eur opean Commission in Brussels.  
Concerning the preparations for de centralised management of IPA,  the work leading to a 
decentralised management system with ex ante  controls was progressi ng. The government sat 
up the institutions for the decentralised manage ment system and nominated the heads of the 
functions and structures, namely the Comp etent Accrediting Officer (CAO), the National 
Authorizing Officer (NAO), and the PAO (Programme Authorising Officer).  
The Secretariat for European Integration rece ives EC assistance under CARDS 2006 to take 
forward the implementation of the roadmap for decentralised management, and to have its 
own staff and those of all th e related structures, trained.  The IPA 2008 programme provides 
further assistance by helping to set up a payi ng agency and managing authority for rural 
development, the operating stru cture required for the decentra lised implementation without ex 
ante control of IPA component V. Advisory mi ssions by DG Enlargement were carried out in 
July and December 2008. 
6.2.4. Overview of IPA programmes implemented  
During 2008, IPA programmes started to be  implemented in Montenegro. IPA 2007 
programme was prepared and tendered in all three axes. By the end of the year a major road 
project and justice reform, as well as capac ity building assistance were contracted. 
Preparatory activities for the implementati on of IPA 2008, as well as the planning and 
preparation of IPA 2009  started in 2008.  
6.2.5. Participation in Community Programmes and Agencies 
The Agreement of 15 November 2007 provides for the provisional application of Protocol 8 
to the SAA on the general principles for Montenegro's participation in Community 
programmes. In accordance with Articles 2 and 5 of this Framework Agreement, Montenegro shall pay a financial contribu tion to the budget of the Community programmes in which it 
participates and may request IP A assistance in this regard.  
On the basis of this Protocol 8, Montenegro is  participating in two programmes: the Seventh 
Framework programme for Research, Tech nological Development and Demonstration 
Activities and the En trepreneurship and Innovation programme. 
6.3. Monitoring and Results 
6.3.1.  Monitoring 
No monitoring of IPA projects was carri ed out in 2008 as the IPA 2007 programmes 
implementation only started in 2008. Mon itoring of IPA projects starts in 2009. 
 - 57 -   6.3.2.  Evaluation results and lessons learned  
So far there are no evaluation results of IP A programmes in 2008 as the implementation only 
started in 2008. For the first year  of IPA no lessons learned can be identified. Evaluations of 
selected previous CARDS projects are implemented in 2009 
6.3.3.  Sectors with positive results - Success story  
For the first year of IPA, No sectors with  positive results can be identified as the 
implementation of IPA programme s only started by the end of 2008. 
 
 
 
 - 58 -   7.  SERBIA 
7.1. The year in review  
7.1.1.  Political developments 
Serbia signed the Stabilisation and Associat ion Agreement (SAA) and an Interim Agreement 
covering trade-related matters in April 2008. On 29 April 2008, the Council decided that the implementation of the Interim Agreement and the ratification of the SAA were subject to Serbia fully cooperating with the Internationa l Criminal Tribunal for the former Yugoslavia 
(ICTY).  Serbia made significant progres s on cooperation with ICTY, incl uding the arre sts of Radovan 
Karadzic and Stojan Zupljanin. Parliament ratified the SAA in September 2008 and began 
work on a package of laws. Government and pa rliament were affected by divisions between 
political parties on key policy is sues. Issues relating to Kosovo
9 and EU integration 
dominated political discussions. After the presidential and legislative elections in February 
and May 2008 there was increased stability in government and greater consensus on European 
integration. Serbia had good capacity  in its public administration.  
Further efforts need to be taken to ensure th e independence, accountabili ty and efficiency of 
the judicial system. Corruption remained widespread and constituted a serious problem. Civil and political rights in Serbia were generally protected and th e overall framework for respect 
of human rights and the protection of minorities  in Serbia was in place. Concerning economic 
and social rights,  the legal provisions for their protection were largely in place but the legal 
framework needed to be further developed. Relations between the EU and Serbia were a ffected by the declaration of independence of 
Kosovo. Serbia vowed to use only peaceful, legal and diplomatic means and exercised restraint in its response to the declaration. Fo llowing a Serbian initiativ e, a Resolution of the 
UN General Assembly requested to the Internat ional Court of Justice an advisory opinion on 
the legality of the Kosovo declaration of the independence.  
 
7.1.2.  Macroeconomic developments and structural reforms 
The economy of Serbia continued to grow strongl y. However, progress in macroeconomic 
stabilisation was mixed. The continuing reve rsal of fiscal consolidation added to 
macroeconomic risks. Structural reforms slowed down and the high level of unemployment, as well as rising inflationary pres sures, remained major challenges. 
As regards the economic criteria , Serbia made some progr ess towards establishing a 
functioning market economy. Financial intermediation continued to grow from a still relatively low level. Significant progress was ma de with the development of the non-banking 
financial sector. However, external imbalances widened, the quality of financing deteriorated, 
foreign debt rose, and the degree of macro-vulne rability increased also in the light of the 
global financial crisis. Despite high economic growth rates in recent years, unemployment 
remained a major challenge. There was some progre ss with regard to the privatisation of state-
owned companies and banks.  
7.1.3.  Progress in meeting the acquis communautaire  
In the area of European Standards , Serbia remained well placed to implement the SAA and 
the Interim Agreement, thanks to  its good administrative capacity.  However there were few 
developments in terms of legislative alignment.  
                                                
 
9    Under UNSCR 1244/1999 
 - 59 -   As regards sectoral policies , in the areas of industry and Small and Medium-sized Enterprises 
(SMEs) Serbia remained committed to the European Charter for SMEs. In the area of agriculture , there were some improvements in ad ministrative capacity. In the area of 
environment, Serbia's preparations remained at a m oderately advanced level. Some progress 
was made in the area of transport  with Serbia continuing to actively participate in the South 
East Europe Transport Observatory. Ther e was also some progress in the area of energy . 
Little progress was made in the areas of information society and media . Serbia was 
moderately advanced in fulfilling the requireme nts of the SAA and the European Partnership 
in the area of statistics.  
There was moderate progress in the area of justice, freedom and security . The visa 
facilitation and readmission agreements between the EU and Serbia entered into force in 
January 2008 and a visa liberalisation dialogue  started. Following th e adoption of the new 
legislation on asylum , Serbia took over responsibility fo r handling asylum cases from the 
United Nations High Commissioner for Refugees (UNHCR). Money laundering continued to 
be a serious problem and relevant legislation still had to be adopted. Drug trafficking  also 
remained a serious concern. The professional capacities of the police  improved as a result of 
additional training activities. The fight against organised crime remained a matter of serious 
concern for Serbia.     
7.2. IPA in 2008 
7.2.1.  MIPD 2008-2010 
 The Serbian government played an active role  in the preparation of the 2008-2010 Multi-
Annual Indicative Planning Document (MIPD)  which was adopted in September 2008. The 
MIPD sets out the priorities for EU financ ial assistance under IPA for the period 2008-2010.  
Under political criteria,  the main objective of EU assist ance for the period 2008-2010 is to 
further strengthen the institutional building an d the increase of the absorption capacity of 
Serbian institutions, ensuring successful implem entation of SAp. This includes the successful 
set up of the decentralised management system framework to enable efficient management of 
EU funds. Additionally, partic ular attention will be paid  to actions supporting the 
development of civil society, the respect of the rights of minorities and other vulnerable 
groups (including anti-discr imination measures) and of  equality between women. 
A considerable amount of funds will be allocat ed to the second priority axis, economic 
criteria. In this respect the assistance will fo cus mainly on promotion of economic growth as 
well as alleviating the social impacts of pr ivatisation and enterp rise restructuring. 
Furthermore, actions will be financed, targeting employment creation by strengthening vocational education and training  and the education sector in  general by improving the link 
between schools/ universities supply and the qualif ications demanded on the labour market.  
Particular attention will also be paid to the development and implementation of strategies and 
policies  
in order to establish sectoral policies a nd a regulatory framework compatible with 
European standards. Key acquis  sectors such as competition policy, enterprise and industrial 
policy, justice, freedom and security, social policy and employment, financial management, 
product standards will be prioritised.  IPA Component II will support cross–border pr ogrammes between Serbia and the adjacent 
Member State (Hungary, Bulgaria, and Romania) , candidate (Croatia, fYRoM) and potential 
candidate countries, according to the IPA eligibility rules (NUTS level III regions or 
equivalent areas). In additi on, building on the experience ga ined in the context of the 
CADSES programme, IPA Component II funds are available, as appropriate, to support the 
participation of Serbia in th e relevant transnational programmes under the Structural Funds 
 - 60 -   where Serbia is eligible (e.g. the "South –Eas t Europe Space" programme, the successor of 
CADSES).  The indicative allocations to  Serbia under the Mu lti-annual Indicative Fi nancial Framework 
(MIFF) 2008-2010 amount to €584.4 milli on, as specified below in Table 1
*. 
Table 1: Serbia: Multi-a nnual Indicative Financial Fr amework (in million €) 
 
7.2.2.  Programming exercise 
Table 2: Indicative financial allocation fo r Serbia per component for the year 2008 (in 
million €) 
SERBIA 2008 
I Transition Assistance And Institution Building  179.6 
of which:  National Programme 168.6 
Nuclear Safety Programme 4.0 
Tempus Programme 7.0 
II Cross Border Cooperation 11.45 
of which:  CBC Serbia And Bulgaria 2.20 
CBC Serbia And Romania 2.70 
CBC Serbia And Hungary 2.30 
CBC Adriatic Programme 0.55 
CBC Serbia And Croatia 1.00 
CBC Serbia And Bosnia & Herzegovina 1.10 
CBC Serbia And Montenegro 0.50 
CBC Participation In ERDF SE Europe Programme 1.10 
*Programmes for component II are adopted for three years. Financial commitments are made annually and 
therefore figures above are just for 2008  
 
7.2.2.1.  Component I: Transition Assistance and Institution Building 
Table 3: Component I-Transition Assistance and Institution Building 2008 for Serbia 
(in million €) 
Priority Axis Projects Budget  
Political Criteria  Strengthening the 
institutional capacities of the National Bank of Serbia 2.50 
 Support to the Development 
of Public Internal Financial Control (PIFC) Phase 3 2.00 
 Support to Refugees and 
IDPs 6.00 
 Support for media capacity in 
the area of European Integration 3.00 
 Fight against corruption 2.50 
 Harmonization of the Serbian 4.40 Component 2008 2009 2010 2008-2010 
I. Transition assistance and 
Institution Building  179.4 182.6 186.2 548.2 
II. Cross-Border Cooperation 11.5 12.2 12.5 36.2 
Total 190.9 194.8 198.7  584.4 
 - 61 -   Customs Enforcement 
Division with the standards, organization and operational methodology of EU enforcement agencies 
 European Integration 
Scholarships 4.00 
 Improvement of transparency 
and efficiency (prosecutors 
and penal system) 4.50 
 Education for all - increasing 
the availability and quality of education for children from marginalized groups 3.00 
 Social Inclusion 5.50 
 Support for Civil Society 2.50 
 Establishment of first level 
control and support for the implementation of cross-border cooperation (CBC) programmes 1.70 
 Municipal Infrastructure 
Support Programme (MISP) 45.40 
 Project preparation Facility 5.00 
Economic Criteria  Implementation of Hospital 
Information System 7.50 
 Support for Quality 
Assurance within the national primary and secondary education examination system 2.00 
 Environmental protection at 
the Electric Power of Serbia (EPS) company 11.00 
 Improved SME 
competitiveness and innovation 3.00 
 National Employment 
Service's (NES) forecasting and data management 1.50 
 Systemic development of 
elementary, practice- based adult education in Serbia (second chance) 4.50 
Ability to assume the 
obligations of membership  Facilitating intermodal 
transport in Serbia 2.00 
 Harmonization with acquis 
communautaire in the Field 
of Transport – Phase II 1.50 
 TA to support 
implementation of 4.00 
 - 62 -   infrastructure projects in the 
Republic of Serbia- PIUs 
 System for the analysis of 
track conditions 3.00 
 Development of the 
Information System for Border Crossing Control 4.00 
 Further advancement of 
conformity assessment in the Republic of Serbia 1.20 
 Control of State Aids 1.50 
 Assistance to the Serbian 
Environment Protection Agency as a national focal point institution for cooperation with the European Environment Agency in strengthening the EIONET 1.60 
 Hazardous waste 1.50 
 Chemicals management 1.50 
 Treatment of the Healthcare 
waste 6.00 
 Harmonization of national 
legislation with EU legislation for placing on the 
market and control of Plant 
Protection Products (PPP) and implementation of new legal provisions 1.30 
 Support for the 
control/eradication of classical swine fever and rabies in Serbia 6.30 
 Capacity building and 
technical support for the renewal of viti culture zoning 
and control of production of wine with Designation of Origin 1.20 
 Further support for 
implementation of DIS 2.45 
 Support for participation in 
Community Programs 5.00 
Support Activities  Support Measures Facility 3.09 
Total  168.64  
 
The 2008 National Programme for Serbia under th e IPA Transition Assistance and Institution 
Building Component was adopted by the Co mmission on 19 December 2008. It aims at 
assisting Serbia to implement the necessary reforms needed to fulfil EU requirements, make 
 - 63 -   progress in the  Stabilisation and Association process a nd  lay the foundations  for fulfilling the 
Copenhagen criteria as well as to impl ement the European Common Aviation Area 
Agreement. More specifically, the 2008 IP A National Programme with a total budget of around € 168.6 
million comprises 37 projects, including one suppor t measures facility in the amount of € 3.1 
million. 2008 IPA is addressing priorities in th e following axes: Political Requirements, with 
a budget allocation of € 92 million; Socio Econo mic Requirements, with a budget allocation 
of € 29.5 million; and European Approximation of  Sectoral Policies, with a budget allocation 
of € 44 million. The 2008 IPA Programme is providing assistance, amongst others, to the 
following projects: The Support to Refugees and Internally  Displaced Persons (IDP) project with an IPA 
budget of  €6 million addresses an issue of major importance for Serbia.  One programme will 
support provision of housing solutions for refugees; e nhancement of IDPs' housing 
conditions, support to starting up or expanding income-generating activities for refugees and 
IDPs. The Legal assistance programme will imp rove the access of IDPs and refugees in 
Serbia to property, health, education,  employment and social welfare. 
The Municipal Infrastructure Support Programme with an IPA budget of  €45.4 million 
builds on the strong record under the CARDS pr ogramme in supporting the implementation of 
local government decentralisation policy reforms.  The overall objective of the project is to 
strengthen the capacity in Serbia, as required by candidates for EU Membership, to improve 
local governance, support better management of  municipal infrastructure services and the 
capacity of municipalities to programme a nd absorb EC investment funds for new and 
rehabilitated assets. The project Implementation of Hospital Information System  with an IPA budget of €7.5 
million  is designed to support the Mi nistry of Health by conti nuing the improvement of the 
Electronic Health Record developed thr ough the CARDS 2004 project “Development of 
Health Information System for Basic Health an d Pharmaceutical Services Republic of Serbia” 
and through the Ministry of Health's “Serbia H ealth Project”. The projec t will integrate data 
delivered by healthcare institutions and will produce an upgraded customized hospital 
information system in 10 hospitals, covering th e needs of 30% of the population of Serbia. A 
study shall be launched to analyze the current situation and prepare th e Terms of Reference 
and the technical specifications fo r the supplies to be procured. 
The Environmental Protection at the Elect ric Power industry of Serbia (EPS)  with an 
IPA budget of  €11 million is a major project for Serbia in order to fulfill its environmental 
obligations under the Energy Community Trea ty and the Directive 2001/80/EC for large 
combustion plants. As such, polluting emissi ons must be reduced from Nikola Tesla B 
thermal power plant which require s the reconstruction of  one electrostatic precipitator (air 
filter). This project will provide the technical assistance and works to address this need. In 
addition, equipment for continuous air emissi on measurement of harmful and hazardous 
substances will be procured and installed at TPPs Nikola Tesla. The project Systemic development of elementary, practice-based adult education in 
Serbia (second chance)  with an IPA budget of €4.5 million  aims to institutionalise a modern, 
functional adult education syst em through a three-year edu cation cycle encompassing the 
elementary education during the first two years,  combined with vocational trainings in the 
third year. The system, accessible and adaptable to the need of adult learners, focused on life 
skills and competences will be  based upon lifelong learning. 
The project Treatment of the Healthcare waste  with an IPA budget of €6 million  will 
support the Ministry of Health to improve the present inadequate and risky procedure for the 
treatment of infectious waste at primary hea lthcare level (public and private sector) and to 
reduce environmental pollution in 25 districts in the Republic of Se rbia. The project is 
expected to render improved infectious heal thcare waste management in 35 healthcare 
facilities in Serbia (23 Institutes of Public He alth and 12 Veterinary Institutes, located in 25 
 - 64 -   administrative districts in Serbia) and to put in  place an effective and efficient system for the 
collection, storage, treatment a nd disposal of infectious healthcare waste, in accordance with 
Serbian requirements and EU Directives. Two s upply contracts will be made for the delivery 
of waste treatment equipment and waste transport vehicles. The project for Support for the Control/Eradication of Classical Swine Fever and Rabies 
with an IPA budget of €6.3 million will assist Serbia to put under control and eradicate 
classical swine fewer and sylvatic rabies. Both of  those diseases present a permanent threat to 
public and animal health and safety of food ch ain. Serbia needs to align the procedures and 
practices for combating and eradication of cla ssical swine fever with the requirements of the 
acquis  to become eligible for export of pork m eat to the EU. The pr oject consists of a 
technical assistance component, procurement of vaccines, and procurement of equipment for 
monitoring of the diseases. The Programming of IPA 2009 National Progra mme was also initiated during 2008. The 
priorities of the programme are determ ined by the Multi-annual Indicative Planning 
Document (MIPD) 2009-2011 which was also unde r preparation in 2008. These priority axes 
are: Political Criteria, Economic Criteria and Ab ility to assume obligations of membership.  
7.2.2.2.  Component II: Cross–Border Cooperation 
IPA Component II encompasses three mu lti–annual (2007–2009) bila teral cross–border 
programmes with neighbouring candidate/poten tial candidate countries (Bosnia and 
Herzegovina, Croatia and Mont enegro) and three bilateral cross–border programmes with 
neighbouring Member States (B ulgaria, Hungary and Romania). The programmes aim at 
promoting economic, social and environmental development of border regions, mainly 
through activities involving local communiti es. Component II is also financing the 
participation of Serbia in the ERDF tr ansnational programme "South–East Europe". 
All of the Cross-Border Co-operation Progr ammes between Serbia and the neighbouring 
countries have started duri ng 2008. Programming meetings were organised and joint 
structures were established. Cross–borde r cooperation helps re conciliation and good 
neighbourly relations, while also facilitating the integr ation of the beneficiary countries into 
the EU. 
7.2.3.  Implementation Modalities and Structures  
Serbia's participation in horizontal nuclear sa fety, customs and educa tion programmes is also 
funded from its component I envelope. These pr ogrammes are not included in the component 
I national programme as they will be implem ented on a multi-country basis and be managed 
centrally by the European Commission in Brussels.  Concerning the preparations for decentralised management of IPA, the Government established a decentralised management system roadmap in January 2008 (up-dated in November 2008), while a respective Strategy for the preparation of the accreditation of this 
system was prepared in April 2008. All key stakeholders regard ing decentralised management 
system on the side of the Serb ian administration have been appointed (CAO, NIPAC, NAO). 
Some progress was also made in establishing th e basis for the "Operating Structures". In line 
with their up-dated roadmap, the Serbian authoriti es planned to start the activities under stage 
1 "Gap assessment" in 2009.  A first audit mission by DG Enlargement was organized in July 2008. 
7.2.4.  Overview of IPA programmes implemented  
 
 
 - 65 -   Table 4: Serbia-Status of financial a ssistance at the end of December 2008 (in 
million €) 
 Allocated Contracted RAC %Contracted RAL %Paid 
IPA 2007 173.3 24.5 142.9 14% 171.9 1% 
IPA 2008 171.1 n/a     
 
In 2008 about 35 contracts under different IP A 2007 budget lines were signed while several 
other tenders under the 2007 IPA National progr amme were prepared. Given that the 
Financing Agreement for the IPA National Programme 2007 was only signed in April 2008 
and therefore contracting of IP A projects only started in the s econd half of the year, actual 
IPA programme implementation is still to start.  It should also be noted that over the year a numbe r of changes had to be made to the originally 
approved 2007 IPA National progra mme. Some of these changes were classified as major and 
hence required an amendment to  the original financing deci sion which was only adopted 
shortly before the end of 2008. 
7.2.5.  Participation in Community  Programmes and Agencies 
A Framework Agreement on the general principles  for participation of Serbia in Community 
programmes was signed in November 2004. In accordance with Articles 2 and 5 of this Framework Agreement, Serbia shall pay a fi nancial contribution to  the budget of the 
Community programmes in which it participates  and may request IPA assistance in this 
regard.  For each project, the "entry ticket" to be paid id specified in the Memorandum of 
Understanding establishing the terms and c onditions for Serbia's participation. The 
Memorandum of Understanding for the Seventh Research framework Programme was signed 
in 2007. In 2008 Serbia signed the Memoranda of  Understanding for participation in the 
Culture  Programme and for participation in the Community Programme for Employment and 
Social Solidarity ( PROGRESS ).  
The IPA programme 2007 foresees a Community  contribution of €2 million to support the 
participation of Serbia in Community Programme s. These funds are to co-finance the "entry 
tickets" for various programmes and agencies.  On this basis, the Serbian government received  € 1410 470 as co-financing of the entry ticket 
for the " Seventh EC Research Framework Programme " and €53 500 for the Culture 
programme. Under IPA 2008, €5.000.000 were allocated to co-f inance the particip ation of Serbia, inter 
alia, in those programmes for the following year, and also in other Community programmes 
for which Serbia has expresse d its interest, such as: CUST OMS 2013, Fiscalis 2013, Life+, 
Marco Polo, Competitiveness and Innovation Framework Programme (CIP).  
 
7.3. Monitoring and Results 
7.3.1.  Monitoring 
No monitoring of IPA projects  was carried out in 2008 as th e Financing Agreement for the 
IPA National Programme 2007 was only signed in April 2008 and consequently the first IPA 
contracts were only signed in the second half of 2008. 
 - 66 -   7.3.2.  Evaluation results and Lessons Learned  
In 2008, there were no evaluation results of IP A programmes for the reasons indicated above 
under monitoring. 
7.3.3.  Sectors with positive results – Success story box  
See above under monitoring and evaluation. No s ectors with positive resu lts can be identified 
as the implementation of IPA programmes only started in 2008. 
  
 
 - 67 -   8. TURKEY 
8.1. The year in review 
8.1.1.  Political developments 
Turkey continued to sufficiently fulfil the Copenhagen political criteria. After averting a 
constitutional and political cr isis in 2008, the Turk ish government renewe d attention towards 
EU-related reforms and accession negotiations. As  concerns the politic al criteria, some 
progress was achieved in the areas of free dom of expression, the rights of non-Muslim 
religious communities, and in promoting the economic development of the South-East.   
Significant further efforts are still needed on mo st areas related to the political criteria. 
8.1.2.  Macroeconomic developments and structural reforms 
With regard to the economic criteria, Turkey is a functio ning market economy and will 
remain so as long as it firmly maintains it s recent stabilisation a nd reform achievements. 
Turkey should be able to cope with competitive pressures and market forces within the Union 
in the medium term, provided that it continues to implement a comprehensive reform programme to address structural weaknesses. In  the framework of the EU-Turkey relations the 
Commission is in constant discussion with the Turkish authorities and is assessing the performance of Turkey in the economic and fina ncial area. This is of paramount importance, 
given the fact that the IMF stand-by agreem ent expired in May 2008 and a new one is still 
pending. Turkey has been affected by the gl obal economic crisis, as many EU economies 
have. The Turkish government has taken some meas ures to alleviate the impact of the crisis. 
The Commission estimates Turkey's GDP growth to have been 1.5% in 2008 as a result of a sharp contraction in the fourth  quarter of 2008. It is expected  that weaker economic growth 
and reduced demand as well as lower internatio nal commodity prices will reduce the current-
account deficit and ease the needs for external financing. However, Turkey's heavy reliance 
on short-term capital inflows makes the country vulnerable to global de -leveraging, increased 
risk aversion and external s hocks. Under the current circumst ances, the main challenge for 
Turkey is the faltering external demand on the Turkish economy and the need to mitigate the 
impact of the deepening global financial and economic crisis. 
8.1.3.  Progress in meeting the acquis communautaire  
Turkey improved its ability to take on the oblig ations of membership. Progress was made in 
most areas. Alignment is adva nced in certain areas, such  as free movement of goods, 
intellectual property rights, anti -trust policy, internal electri city market, enterprise and 
industrial policy, consumer protection, statistics , Trans-European Networks, and science and 
research. However, alignment needs to be pursued, in particular in areas such as environment, 
state aid, public procurement, social polic y and employment, company law, food safety, 
veterinary and phytosanitary polic ies and free movement of serv ices. A number of important 
obligations taken on by Turkey as part of its Customs Union with the EU remain unfulfilled. 
The disproportionate use of safeguard measures  and longstanding trade irritants are having an 
impact on proper functioning of the Customs Uni on. Turkey's administrative capacity to cope 
with the acquis needs further improvement. 
 - 68 -   8.2. IPA in 2008 
 The IPA Framework Agreement between Turk ey and European Commission, signed on 11 
July, entered into force on 24 December 2008 upon ratification by the Turk ish parliament and 
notification to the Commission.    
8.2.1.  MIPD 2008-2010 
Table 1: Turkey: Multi-annual Indicative Financial Framework (in million €) 
Component  2008 2009 2010 2008-2010 
I. Transition Assistance and 
Institution Building 256,1 233,2 211,3 700,6  
II. Cross-Border Cooperation 2,9 9,4 9,6 21,9 
III. Regional Development 173,8 182,7 238,1 594,6  
IV. Human Resources Development 52,9 55,6 63,4 171,9  
V. Rural Development 53 85,5 131,3 269,8  
Total 538,7  566,4  653,7  1758,8  
 
The Multi-annual Indicative Planning  Document  (MIPD) is the strategic programming 
document for IPA in Turkey. It is established for a three year rolling period, with annual 
reviews. The second MIPD for Turkey 2008-201 0 was given a favourable opinion by the IPA 
Committee on 19 May 2008 and then adopted th rough written procedure by the Commission 
on 25 July 2008. The 2008-2010 MIPD is based on an indicative financial envelope of 
€1758.8 million. The IPA instrument in Turkey, as reflected in the MIPD, consists of five 
components: (IPA-I) the Transi tion Assistance and Institutio n Building component; (IPA-II) 
the Cross-Border Cooperati on component which applies to border regions between 
beneficiaries from member states , candidate states and countrie s in pre-accession status; (IPA 
III, IV and V) the Regional, Human Res ources and Rural Development components. 
Within the Institution Building component the focus of assistan ce in the area of the political 
criteria will be on the institutions that are dire ctly concerned by the reforms: the judiciary and 
the law enforcement services. A second prio rity will be support for the continued 
development of civil society organisations. Among the issues to be addressed, priority will be given to human rights and fundamental freed oms; gender issues; and the fight against 
corruption. As concerns the adop tion and implementation of the acquis , the main areas of 
activity, reflecting the volume of legislation to be transposed and implemented as well as the 
investments required, will be: agriculture and food safety; justice, freedom and security 
(particularly border management; migration and visa policy; and international cooperation 
among law enforcement agencies); and environm ent. The promotion of the Civil Society 
Dialogue will be implemented through grants supporting cooperation between EU and Turkish civil society organisations and by the co-financing of Turkey's participation in 
Community Programmes, notably th e education and youth programmes. 
The preparation towards the Territorial Coopera tion objective of the EU structural funds will 
be addressed by the Cross-border Cooperation  component. Budgetary allocations will be 
divided between bilateral cross-border programme s with Member States and participation of 
Turkey in the ENPI Black Sea basin programme. EU assistance shall also help to prepare the beneficiary country for  participation in  
Community's cohesion policy and rural development instruments  from day one of accession. 
This objective will be implemented under the three IPA components: regional development, 
human resources development and rural developmen t. In view of the limited funds available, 
sectoral and geographical concentr ation of funds will be sought. 
 - 69 -   The Regional Development and the Human Resources Development components will pursue 
the objectives of the revised Lisbon Strategy, while bearing in mind the state of Turkey's 
economic development. This will necessitate focusing interventions on the provision of the more fundamental physical, business and human in frastructure, before actions concerned with 
the technological frontier can be addressed. 
The Regional Development  component will support 3 Op erational Programmes (OP): 
environment, transport, and regional competitiveness. Within the environment OP, the main priorities will be in the water, waste water a nd solid waste management sectors. Within the 
transport OP, priority will be given to rail, links with TEN and multi-modal transport. Finally, 
within the Regional Competitiveness OP the priori ties will be to support business investment, 
to enhance SMEs competitiveness and to upgrade their technological basis.  
The Human Resources Development  component supports a single OP addressing three major 
areas of intervention: employment, educatio n and social inclusion, which are to be 
implemented by four priority ax es: attract and retain more people in employment, enhance 
investment in human capital, increase adaptabili ty of workers and promote an inclusive labour 
market. The Rural Development  component supports the implementation of a multi-annual IPA Rural 
Development Programme (IPARD) through measures  under three priority  axes: adaptation of 
the agricultural sector and implementing of  Community standards in the fields of 
environmental protection, public  health, animal and plant health, animal welfare and 
occupational safety, preparator y actions for agri-environment measures and Leader and 
development of the rural economy. 
8.2.2.  Programming exercise 
Table 2: Indicative financial  allocation for Turkey for the year 2008 (in million €) 
Turkey  
I. Transition Assistance and Institution 
Building 256.1
Of which  
• National Programme 256.1
• Nuclear Safety 0
• Education (TEMPUS) 0
II. Cross-Border Cooperation 2.9
Of which 
• CBC programmes  1.9
• ENPI BLACK Sea Basin programme  1.0
III. Regional Development 167.5
Of which 
• Regional Competitiveness Programme 43.5
• Transport Programme 60.8
• Environment Programme 69.5
IV. Human Resources Development 52.9
V. Rural Development 53.0
Total 540.5
 
Programmes for components II, III, IV and V are adopted for three years. Financial commitments are made 
annually and therefore figure s above are just for 2008 
 - 70 -   8.2.2.1.  Component I: Transition Assistance and Institution Building 
The IPA 2008 component I programme included 33 projects that were selected among the 
priorities identified in the 2008-2010 MIPD after analysis of  the Turkish authorities and 
consultation with the European Commission, accord ing to the priorities identified in the 
Accession Partnership, the scr eening process and subsequent negotiations in the different 
chapters of the  acquis . The Commission adopted the pr ogramme on 15 December 2008 and it 
will be implemented by means of  decentralised management. 
Table 3: Component I-Transition Assistance and Institution Building 2008 for Turkey (in 
million €) 
Priority Axis Projects Budget (M €) 
1. Political 
Criteria TR080101 Strengthening the Role of the Supreme 
Judicial Authorities in the EU Process 3.0 
 TR080102 Strengthening the Court Management 
System 5.0 
 TR080103 Civic Traini ng for Mehmetçik 
(Conscripts) 14.2 
 TR080104 Promoting Services for People with 
Disabilities 3.8 
 TR080105 Strengthening Special Education  6.15 
 TR080106 Strengthening pre-school Education 13.9 
 TR080107 Participatory Strate gic Governance at the 
Local Level  3.0 
 TR080108 Civil Society Development for Active 
Participation 3.05 
2. Acquis 
communautaire  TR080201 Environment and countryside under 
IPARD 1.05 
 TR080202 The REACH Chemicals Project 2.25 
 TR080203 Improving Emissions Control 1.9 
 TR080204 Integrated Pollution Prevention and 
Control 2.3 
 TR080205 Mining Waste Management 4.0 
 TR080206 Decision making & performance 
management in public finance 2.2 
 TR080207 Strengthening the Capital Markets Board  4.1 
 TR080208 Tagging and vaccination of sheep and 
goats 34.5 
 TR080209 Improving chemical and ionising 
radiations metrology 3.93 
 TR080210 Action Plan on Integrated Border 
Management -Phase 2 21.9 
 TR080211 Improving the Skills of Forensic Experts 2.0 
 TR080212 Strengthening the I nvestigation Capacity 
of Turkish National Police and Gendarmerie Against Organised Crime 6.3 
 TR080213 Training of Border Police 1.1 
 TR080214 Strengthening Forensic Capacity of 
Turkey 19.9 
 TR080215 Strengthening the Blood Supply System  2.8 
 - 71 -    TR080216 Surveillance and Control of 
Communicable Diseases  4.0 
 TR080217 Strengthening Res earch & Development 
capacity 2.0 
 TR080218 Promoting gender equality in the work 
place 0.9 
 TR080219 Improving data quality  in public accounts 1.7 
 TR080220 Modernisation of Turkish Customs 
Administration V 2.9 
3. Civil Society 
Dialogue TR080301 Parliamentary Exchange and Dialogue 2.2 
 TR080302 EU-Turkey inter cultural dialogue 3.1 
 
 TR080303 Istanbul 2010 1.6 
 TR080304 Participation to EU Community 
Programmes and Agencies 66 
4. Supporting 
Programmes TR080401  Support Activities to Strengthen the 
European Integration Process 9.0 
 
8.2.2.2.  Component II: Cross-Border Cooperation 
Under the Turkey-Bulgaria 2004 -06 cross-border cooperati on (CBC) programme, a Joint 
Programming Document, the first multi-annua l Bulgaria-Turkey CBC programme under IPA 
2007-2009, was adopted by Commission Decision on 21 December 2007. The objective of the 
Turkish-Bulgarian IPA CBC Programme is to he lp the border region between Turkey and 
Bulgaria to overcome development problems re sulting from its relati ve isolation and to 
support the development of co-operative networks on both sides of the border. 
The ENPI Black Sea Basin programme ("Bl ack Sea 2007-2013") was concluded by the 10 
participating countries including Turkey and submitted to the Commission, which adopted the 
programme on 27 November 2008. On 14 Novemb er 2008, the Commission adopted a second 
annual programme on financing the participatio n of Turkey in the ENPI Black Sea Basin 
programme in 2008. 
8.2.2.3.  Components III and IV: Strategic Coherence Framework 
As required by Article 154 of Commission Regulation (EC) N°  718/2007, Turkey prepared a 
Strategic Coherence Framework (SCF) for the period 2007-2013, covering IPA components 
III and IV. Its purpose is to set the overall st rategic framework for programming of resources 
in the context of the national priorities for social and economic development and Community 
priorities for cohesion, thus constituting a key reference document for programming IPA 
regional development and human resources de velopment components. The SCF is a key 
document to introduce structural funds strategi c planning to candidate countries (a "mini 
NSRF"), reinforcing the role of IPA assistance u nder components III and IV as a precursor to 
structural funds. The preparation of the Strategic Coherence Fr amework was coordinated by the State Planning 
Organisation, who performs the role of Stra tegic Coordinator for IP A regional development 
and human resources development componen ts. Throughout its preparation extensive 
coordination has taken place with in the national administration, particularly the ministries 
who will be involved in the implementation of components III and IV programmes. Once finalised, it was transmitted to the Commission fo r information and verification of consistency 
 - 72 -   with the requirements of the regulation, but the Strategic Reference Framework remains a 
national document.  The social and economic analysis provided by the Strategic Coherence Framework justified 
the concentration of resources under the re gional competitiveness and human resources 
development programmes in the 12 NUTS II re gions with a GDP per capita below 75% of 
Turkish national average. The strategic objectiv es are to upgrade the business environment 
and to develop better entrepreneurial capabilities of enterprises, and to promote the development of human resources and skills . As regards transport and environment, 
concentration is foreseen on a limited number of projects which contribute to promote 
interconnectivity with TEN-T network and inte rmodality, to promote sustainable development 
and approximation with the EU environmental acquis.  
8.2.2.4.  Component III: Regional Development  
Three multi-annual operational programmes we re adopted by the Commission in November 
and December 2007 under Component III for Turkey: "Regional Competitiveness", 
"Environment" and "Transport".  The aim of these programmes is to increase the 
competitiveness of Turkey, with a particul ar emphasis on the poorest regions, by supporting 
the development of enterpri ses and investments in the transport and environment 
infrastructure.  
The IPA resources allocated to each programme are as follows: 
 
PROGRAMMES 2007 2008 2009 TOTAL 
III – TRANSPORT 58,600,000 60, 800,000 60,300,000 179,700,000 
III– ENVIRONMENT 67,000,000 69, 500,000 67,600,000 204,100,000 
III REGIONAL COMPETITIVENESS 41,900, 000 43,500,000 54,800,000 140,200,000 
 
The overall objective of the "Transport" programme is to increase the competitiveness of 
Turkey by supporting investments in transport infr astructure In this framework the scope of 
the intervention in Turkey will cover transport infrastructure, including in particular interconnection, interoperability and intermodality  of national networks and with the trans-
European networks. With regard to freight transportation, effort s should be deployed in order 
to rebalance the modes of transportation in favour of rail and maritime transportation. The 
TINA study (Trans European Network for Transport)  is the key determinant for the 
identification of investment prio rities in the transport sector.   
The overall objective of the "Environment" progra mme is to increase the competitiveness of 
Turkey by supporting investments in environment infrastructure. In this framework the scope 
of the intervention in Turkey will cover envir onment infrastructure, in particular in water 
supply, sewerage and waste water treatment and in integrated waste management. The 
intervention should pursuit a co herent strategy over medium to long term and possibly 
mobilise additional financial so urces from Inte rnational Financial Ins titutions (IFIs) and 
donors. The criteria for project selection ar e the impact on the population served, the non 
affordability of the construction of specific projects and the sensitivity of the area. The implementation will pursuit the river basin intergraded approach, the sustainability development principles, the national and re gional waste management planning and the 
compliance with relevant environmental acquis. 
The overall objective of the "Regional Compet itiveness" programme is to increase the 
competitiveness of the poorest regions of Turk ey by supporting enterprises. This objective 
will be achieved through four specific objectives: enhancement of physical and financial 
 - 73 -   infrastructure, increasing business stock, incr easing employment creation capacity of the 
productive sector and enhancing the added value of the production base.  
Within each operational programme, a separate pr iority on technical assistance has been 
introduced, to support national structures managing IPA, including ensuring project 
preparation of high standards for current programmes and fo r future programming periods. 
The institutional set- up which will be set in place for the management of IPA component III 
programmes concentrates financial management  in experienced structures prepared under 
previous assistance instruments (Central Fina nce and contracts Unit, National Fund) while 
transferring overall management and responsibi lity for implementation to operating structures 
within line ministries. 
8.2.2.5.   Component IV: Human Resources Development 
The Human Resources Development Opera tional Programme (HRD OP) under IPA 
Component IV was prepared by the Turkish authorities during the year 2007 in close 
cooperation with the Commission. It was a dopted by Commission decision on 7 December 
2007 for a period of 7 years, with a financia l envelope specified for the period 2007 – 2009.  
8.2.2.6.  Component V: Rural Development 
Under Component V a multi-annual IPARD Programme (Instrument for Pre-Accession 
Assistance to Rural Development) coveri ng the period 2007-2013 was prepared by Turkey 
during the course of 2007 and adopted by  Commission decision C52008)691 on 25 February 
2008.  The overall objective of the Programme is to c ontribute to the sustai nable modernisation of 
the agricultural sector (includi ng processing) through targeted investments whilst encouraging 
the improvement of EU acquis  related to food safety, veterinary, phyto-sanitary, 
environmental or other standard s as specified in the Enlarg ement Package. The Programme 
should furthermore contribute to the sustainabl e development of rura l areas. Based on this, 
three priority axes and seven measures to sup port the development of the selected priority 
sectors have been identified.  
The first of the yearly modifications of th e Turkish IPARD Programme was approved by the 
Member States in the Rural Development Committee on 23 July 2008 subsequent to which the Commission adopted it by Decision C( 2008)6100 on 24 October 2008. The financial 
tables included in the Programme were modi fied, adding the new financial allocation for 2010 
in accordance with the MIPD 2008-2010. Further modi fications were of technical nature and 
aimed at facilitating programme implementa tion and the accreditation of the implementing 
system. 
8.2.3.  Implementation Modalities and Structures 
Assistance under IPA component I-IV (exc ept component II – Turkey-Bulgaria CBC 
programme) will be implemented through dece ntralised management, initially with ex ante  
controls performed by the Commission on the te ndering of contracts,  launch of calls for 
proposals and the award of contract s and grants (the exact list of ex ante  controls will be 
specified in the Commission decisions on the conferral of management powers per 
component). For that purpose, a management a nd control system for the management of the 
different programmes has to be established and accredited by the Turkish authorities before the conferral of decentralised management can be requested from and be given by the 
Commission. Decentralised management without ex ante  controls by the Commi ssion will only be applied 
under IPA component V from the start, while it being an objective for the implementation of 
 - 74 -   assistance under IPA Component I-IV. Turkey is  required to provide a roadmap (as part of 
Financing Agreements) with indicative benchmarks  and time limits to achieve this objective. 
The minimum criteria for waiving the ex ante  controls by the Commission include the 
establishment of a benchmarking system with quantitative and qualitative aspects as well as a 
sustained and noticeable downward trend with regard to the rejection rate due to the ex ante  
controls by the Commission. Upon the adoption of the first batch of programmes at the e nd of 2007, in 2008 the efforts of 
the Turkish authorities concentrat ed for the most part in completing the internal processes for 
the accreditation for decentralised management. In the case of IPA components I and II these 
processes were facilitated by the fact that decentralised structures and systems existed already 
under the pre-IPA assistance,  thus Commission decisi on C(2008)6218 of 29 October 2008 
conferred decentralised management powers fo r Component I to the Turkish authorities, 
while decision C(2008)7407 on 1 December 2008 accomplished the equivalent for 
Component II on Turkey's participation in the ENPI Black Sea Basin programme.  
The decisions require Turkey to submit a roadma p for full decentralisation of the management 
of EC funds without ex ante  controls by the Commission, within 3 months after the entry into 
force of the Financing Agreemen ts of components I and II re spectively. It s hould include 
indicative benchmarks and time limits to achieve  full decentralisation to be closely monitored 
by the Commission services, which have the power  to suspend the programmes if established 
conditions are not met.   
However, as regards IPA components III and IV  such processes had to be initiated from 
scratch, leading to the submission of an applic ation for conferral of management in October 
2008. The verification mission carried out by the Co mmission audit services determined that 
further actions should be undert aken by the Turkish authorit ies. The Rural Development 
programme will be implemented by conferring decentralised management powers without ex 
ante controls to the Turkish Republic. A Comm ission fact finding audit mission in October 
2008 showed delays in the accreditation process, as the accreditation criteria and procedural 
requirements were not yet fulfilled. It was conc luded that the deadlines set in the Turkish 
Action Plan were too optimistic, and the time planning at the end of 2008 foresaw 
accreditation during the second half  of 2009, while conferral of ma nagement would not likely  
be achieved until 2010.  The Bulgaria – Turkey Cross-Border cooperati on programme under com ponent II is the only 
programme to be implemented under shared ma nagement and the Managing Authority is the 
Ministry of Regional Developm ent and Public Works in Bulgaria. The Joint Technical 
Secretariat of the Programme will be located in Haskovo City and the procedure for staff 
recruiting is on-going in both co untries. The first level cont rol will be performed in a 
centralised way by Turkey and decentralized by Bulgaria.  
8.2.4.  Overview of IPA programmes implemented 
The implementation of programmes effectively starts once the confer ral of decentralised 
management decision per component is take n by the Commission and the Framework and 
Financing Agreements have entered into forc e. No IPA programmes were implemented in 
2008, as the Framework Agreement was not ratifie d by the parliament in Turkey and did not 
enter into force until 24 December 2008.  
-Component I 
The 2007 Financing Agreement for Component I was signed and entered into force on 24 
December 2008, thus starting the implementation of this programme. Entry into force was 
linked to the Commission Deci sion on conferral of manage ment powers (see 8.2.3) where a 
list of conditions to be met by the Turkish auth orities was established (deadlines in the course 
of 2009).   
 - 75 -                  -Component II 
 The 2007 Financing Agreement for Component II on Turkey's participation in the ENPI 
Black Sea Basin programme was signed and entered into force on 31 December 2008. 
Implementation was to be linked to the established conditions set in the conferral of management powers Commission Decision in an equivalent way as for component I (see 
8.2.3).  The final version of the Financing Agreem ent of the Bulgaria-Turkey Cross-Border 
cooperation programme was agreed between the Commission services and the Turkish 
Authorities and was expect ed to be signed by mid 2009. 
                 -Component III, IV and V  As regards the remaining components, actual implementation of programmes has not started 
pending the conclusion of the necessary pro cesses for the conferra l of decentralised 
management powers.   
8.2.5. Participation in Community Programmes and Agencies 
 
The Framework Agreement between Turkey and the European Community on the General Principles for the Participation of Turkey  in Community Programmes was signed on 26 
February 2002, and entered into force on 5 September 2002. Based on this, Turkey’s 
participation in a number of programmes is established through separate Memoranda of 
Understanding. The National Programme 2008 foresees Commun ity financial support of €66 million for 
Turkey’s participation, inter alia,  in the following programmes and agencies for the year 
2009: Lifelong Learning +; Youth in Action ; Culture; IDABC; PROGRESS; CIP/EIP; 
CIP/ICT;  Customs 2013; 7
th Framework Programme for Res earch; European Environment 
Agency (EEA); European Monitoring Centre for Drugs and Drug Addiction. 
8.3. Monitoring and Results 
8.3.1.  State of play for IPA Monitoring Co mmittee and Sectoral Monitoring 
Committees 
8.3.1.1.  IPA Monitoring Committee 
Programme implementation under IPA shall be monitored through  the IPA monitoring 
committee assisted for each component by Sectoral Monitoring Committees. Each committee shall satisfy itself as to the effectiveness and quality of the implementation of the programmes 
and operations. They may make proposals to the Commission and the national IPA co-
ordinator, with a copy to th e national authorising officer, for decisions on any corrective 
measures to ensure the achievements of progra mme objectives and enhance the efficiency of 
the assistance provided. 
An IPA Monitoring Committee meeting was held  on 1 July 2008, and it was agreed that the 
TAIB Sectoral Committee is to cover also th e IPA Component II pr ogrammes for which the 
management responsibility is assigned to Turkey  (Turkey's participation in ENPI Black Sea 
basin programme). 
 - 76 -   8.3.1.2.  Sectoral Monitoring Committees 
IPA I Transition Assistance and Institutional Bu ilding Sectoral Committees were held on 12 
June 2008 and 28 January 2009. IPA II Joint Monitoring Committees on Bulgar ia-Turkey IPA CBC Programme were held on 
14 May and 20 October 2008. IPA III Regional Development Sectoral Committees for the operational programmes were organised for the three operational programmes: 
• Environment 6 June 2008 and 22 January 2009 
• Transport 4 June 2008 and 21 January 2009 
• Regional Competitiveness 5 June 2008 and 22 January 2009 
IPA IV Human Resource Development Sectoral  Committees were held on 17 June and 13 
November 2008. IPA V Rural Development Sect oral Committees were held on 11 June and 3 December 2008. 
 
As no actual implementation activities took place in  2008 due to the delays of the conferral of 
management powers and late entry into force of the Framework Agreement, the Sectoral 
Monitoring Committees covered essentially the re view of structures and processes for their 
future work as well as the discussion and approval of monitoring tools and programming 
procedures (component I and II).  For component III and IV ongoing preparations of  operations and projects for future approval 
under each operational programme were communi cated to the committees; and work plans 
and technical assistance plans we re endorsed. The strategic role  of the Sectoral Monitoring 
Committees will increase in 2009, once the confe rral of management for all components has 
been achieved and the implementation of comp onent IPA programmes becomes effective.  
During the first meeting of th e shadow Sectoral Monitori ng Committee for component V, 
draft Rules of Procedure were  approved, which ensured active  involvement of Turkish NGOs 
in the process of monitoring programme impl ementation. Besides its monitoring rule, the 
Committee's main resposibilities are to appr ove proposals for amending the Programme, to 
approve the annual and final impl ementation reports before they are sent to the Commission, 
to examine the on-going and interim evaluation of the IPARD Programme and to approve the 
Technical Assistance Action and Communication Plan and th eir updates. However, the 
Regulation formally setting up the Committee a nd nominating its members were not adpted 
by Turkey in the year 2008.  
8.3.2    Annual and final reports on implementation  
Due to the fact that no implementation took place in 2007-2008, the sectoral annual reports 
for 2007 focused on preparatory work for impl ementation, and the drafting process was done 
with a preparatory approach for all compone nts. The Commission assessed the reports and 
provided guidance and suggestions for improvement for the following years. 
8.3.2.1.   Sectoral annual reports 
-Component I 
The IPA Component I Sector Annual Impl ementation Report was submitted to the 
Commission in view of the IPA component I Sectoral Committee meeting on 12 June 2008. 
-Component II As the ENPI Black Sea basin programme wa s not adopted until 27 November 2008 by the 
Commission it was agreed that no sectoral  Annual Implementation Report for 2007 was 
 - 77 -   required. Similarly, ssince the Bulgaria – Tu rkey IPA Cross-Border programme was not 
approved until 21 December2007, no progress on implementation during 2008 could be 
reported. -Component III The three sectoral annual reports coveri ng the operational programmes "Regional 
Competitiveness", "Transport" and Environmen t" were submitted to the Commission by 30 
June 2008, following their discussion and endors ement by the respective Sectoral Monitoring 
Committees. A qualitative assessment of the repor t was carried out by the Commission, after 
which some modifications were prop osed to the Operating Structure. 
-Component IV On 26 June 2008 the sectoral annual report  2007 on the implementation of the Human 
Resources Development Operati onal Programme in Turkey was sent to the Commission after 
having been examined by the HRD Sectoral Monitoring Committee in its meeting on 17 June 2008. A qualitative assessmen t of the report was carried out by the Commission, after which 
some modifications were proposed to the Operating Structure.  
 
8.3.2.2     IPA Annual Report 
 
Whilst no progress in implementing Commun ity Assistance could be reported, the 
Commission based its assessment of IPA as a wh ole on sectoral annual reports in combination 
with state of play reported at the IPA Monitoring Committee. 
8.3.3.     Evaluation results and Lessons learned  
No IPA evaluation of results was carried out in 2008, as implementation had not yet started. 
8.3.4       Sectors with positive results- Success story 
No results and success stories from IPA are available yet as no programmes were 
implemented in 2008. 
 - 78 -   PART  II: MULTI-BENEFICIARY  AND  REGIONAL  PROGRAMMES   
9. THE YEAR 2008  IN REVIEW  
The Western Balkans and Turkey moved closer to the EU during 2008, as  the countries made 
progress, albeit uneven, in reforms and in meeting established criteria and conditions. 
Stability was maintained in the Western Balkans and the situation remained generally calm after the declaration of indepe ndence and the entry into force of the constitution in Kosovo 
under UNSCR 1244/99. The region conti nued to enjoy high growth ra tes, thanks in particular 
to domestic and foreign investments while, in  general, reforms progressed and overall living 
standards improved. The Regional Cooperation Council (RCC) took over from the Stability 
Pact, strengthening ownership of regional cooperation in South East Europe by the countries 
directly concerned. 
9.1. Overview of IPA programmes implemented 
9.1.1.  Addressing the Political Criteria 
9.1.1.1.  Human Rights and the Pr otection of Minorities 
The Sarajevo Declaration (or “3x4 Initiative”) signe d in January 2005 by the governments of 
Bosnia and Herzegovina, Croatia and Serbia and Montenegro provided a policy framework 
aimed at bringing about a genuine and successful  solution to problems faced by refugees in 
the region. The signatories had agreed to achieve  this goal by the end of 2006, but two issues 
had still to be addressed: (i) compensation cl aims for lost occupancy and tenancy rights 
(OTRs) and (ii) recognition of pensions and other rights. Some positive developments were 
registered in the course of 2008, such as th e adoption by Croatia in May 2008 of a Rulebook 
on convalidation, Croatia's starti ng to process claims, and the im plementation, albeit slow, of 
its housing care programme. However, the process was not completed in 2008. 
Support for the Sarajevo process was provi ded from the CARDS 2002 and 2003 regional 
programmes (€0.8 million) and CARDS 2006 (EUR 1.0m). It was renewed under IPA 2008 (€1 million). 
9.1.2.  Regional Issues and In ternational Obligations 
9.1.2.1.   Regional Cooperation Initiatives 
Transition from the Stability Pact to a mo re regionally-owned cooperation framework, the 
Regional Cooperation Council (RCC), was comp leted. The RCC, which operates under the 
guidance of the South East European Coopera tion Process (SEECP) Summit, was officially 
launched on 27 February 2008 in Sofia on the occasion of the last meeting of the Stability Pact Regional Table and the first official meeting of the RCC Board.  
The RCC is intended to sustain focused regiona l cooperation in South- East Europe through a 
regionally owned and led framework that al so supports European and Euro-Atlantic 
integration. The work of the RCC focuses on six priority areas: economic and social 
development, energy and infrastructure, justic e and home affairs, security cooperation, 
building human capital, and parliamentary cooperation as an overarching theme. 
The RCC annual meeting on 20 May 2008 in Pomorie,  Bulgaria, adopted its Strategic Work 
Programme for 2008-2009. This was subsequently endorsed by the SEECP on 21 May 2008. Its staffing had been largely completed by th e end of 2008. An agreement between the RCC 
Secretariat and Belgium for the establishment of a liaison office in Brussels was signed on 29 
August 2008. The liaison office was inaugurat ed on 20 October 2008. In accordance with the 
RCC Strategic Work Programme 2008 – 2009 and the Statute of  the RCC, the Secretariat 
 - 79 -   initiated a process of coordination and streamlini ng of relevant regional initiatives in the six 
priority areas and undert ook several initiatives. 
The Commission, as a member of the RCC and its  Board, provides financ ial support for the 
Secretariat and is continuing to finance some of  the initiatives estab lished under the Stability 
Pact. It also plays an active ro le in donor coordinati on and is maintaining close contact with 
the RCC Secretary General, Mr. H. Biš čević, and the RCC liaison office in Brussels.  In 2008, 
the annual Commission's contribution to the RCC budget was €1 million. 
9.1.2.2.    Public Administration (The Regional  School for Public Administration (ReSPA)) 
The Regional School of Public Administration (R eSPA) was created on th e initiative of the 
Commission. It aims to (i) boost regional coopera tion in the field of public administration, to 
strengthen administrative capacity and (ii) devel op human resources in th is field. The Protocol 
establishing ReSPA was signed in Brussels on 2 May 2006 by the Be neficiaries (Albania, 
Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, 
Serbia and UNMIK/Kosovo).  In Ju ne 2008, a Letter of Intent to th at effect was signed by all 
parties. The International Agreement which pr ovides for the establishment of the School in 
Montenegro was signed on 21 November 2008 in Podgorica.  The Commission cooperates with the Or ganisation for Economic Cooperation and 
Development (OECD) on implementing the Re SPA project. €3 million was allocated under 
IPA 2008 for ReSPA activities. Under IPA 2009 a further €4.4 million will be provided in support of ReSPA activities and for strengthenin g the capacities of the institution. As of 2009, 
ReSPA will operate with the technical suppor t of the European Institute of Public 
Administration (EIPA, Maastricht).  
9.1.2.3.     Disaster Risk Reduction 
A Disaster Risk Reduction Initia tive, aimed at preparing a re gional strategy and developing 
the capacity of the Western Ba lkans for the collection, processing and sharing of data was 
adopted by the Commission in 2008. Activities w ithin this framework will start in early 2009 
and will be based on the conclusions of an  UN-World Bank study. The programme will be 
implemented in close cooperation with other stak eholders in this field: the World Bank, the 
UN and the Disaster Preparedness and Preven tion Initiative for South East Europe. The 
Commission aims for synergy with the Wo rld Bank’s “Disaster Risk Mitigation and 
Adaptation Initiative” supporting the Western Balk ans in building local capacity, developing 
a monitoring network (weather forecasting and early-warning systems), investing in 
infrastructure and disaster mitigation measures and establishing a regional disaster insurance scheme.  €2 million was allocated to th is initiative under IPA 2008.  
Concept notes have been received from the tw o contractors designated to undertake the first 
phase of the disaster risk reduction initiative (World Meteorological Organisation for the 
coordination of the hydro meteor ological institutes and UNDP for the preparation of national 
strategies on Disaster Preparedness). At the e nd of 2008, contracts were  being prepared for 
finalisation in early 2009. 
9.1.2.4.   Civil Society 
In its November 2007 Strategy Paper, the Commi ssion announced its intention to establish a 
new facility to promote civil society developmen t and dialogue. The facility was launched in 
April 2008. The facility covers three areas of  activities:   
i. 
Support to civic initiativ es and capacity-building to reinforce the role of civil society at a 
national level. To this end, technical assistance desks are being established or incorporated 
into existing initiatives in all Beneficiaries. Community support is €8 million under IPA 
2008. 
 - 80 -   ii. "People 2 People" Programme which supports visits to EU institutions and bodies to 
exchange experience, know-how and good pr actice between Beneficiaries and EU and 
Member States Civil Society Organisations  (CSOs). The "People 2 People" Programme 
has started and is managed by the TAIEX Unit. From July until December 2008, ten study 
tours and conferences with 240 participants were organised from existing TAIEX funds. 
The main topics covered were: the role of civil society in EU policy making, EU 
institutions and the decision  making process explained to  young branches of political 
parties, women in business, social dialogue and employment policy. €4 million is available under IPA 2008 to support "People 2 People" projects.  
iii. Partnership Actions carried out between be neficiary CSOs and the EU leading to a 
transfer of knowledge and networks as well as trans-national innova tive projects. In 2008, 
support for these activities totaled €4.5 million and focused on the environment, energy efficiency, health and safety at work and th e fight against corruption, organized crime and 
trafficking. €0.3 million was transferred to DG Environment by sub-delegation to launch 
procurement in September 2008 to support the Environment Forum and ensure exchange of good practice with EU and IPA envi ronment NGOs and alignment to the acquis  in the 
sector. Two Calls for Proposals were pl anned to be launched in January 2009: 
“Environment, energy efficiency, health and safety at work” and “Fight against corruption, organised crime and trafficking”. 
9.2. Addressing the Economic Criteria 
9.2.1.  Cooperation with Internatio nal Financial Institutions 
To support investments in potential candidates, a strategy to develop regional initiatives with 
International Financial Institutions (IFIs) wa s agreed in 2007.  This strategy was defined 
along three main axes: (i) Support to private investments, (ii) Promotion of energy efficiency 
investments and (iii) Support to investments in infrastructure remediation and upgrading. 
During 2008, significant progress was made in these areas.  
The Infrastructure Projects Facility which was initially conceive d to improve project 
preparation and to promote infra structure investments in tran sport, energy, and environment 
as well as the social sector is now compleme nted by a Municipal Window covering project 
implementation by a grant co-financing mechanis m. The grants co-finance projects which 
include national funds as well as loans from the European Investment Bank (EIB), the 
European Bank for Reconstruction and Develo pment (EBRD), and the Council of Europe 
Development Bank (CEB) in association with Kreditanstalt for Wiederaufbau (KfW).  
Cooperation with the European Fund for South east Europe (EFSE) to make loan facilities 
available to micro-enterprises and households also continued in 2008, this activity proved 
particularly successful. As an example, the support of EFSE allowed a Kosovan micro finance 
institution – KrK to be put again on the path of  growth. In December 2007 an EC funded loan 
to KrK amounting to €5.7 million was transferred to  EFSE and restructured into a senior loan, 
a convertible loan and equity participation. As  a first step, this restructuring helped the 
institution to restructure its balance sheet by increasing the cap ital portion and decreasing its 
liabilities. As a second step, EFSE aimed to attr act new additional investors by selling off part 
of its convertible loan to other parties. Togeth er with KrK, EFSE managed to attract further 
international equity investors like Crédit C oopératif and FMO (entrepreneurial development 
bank of the Netherlands). Given this success, the majority of existing shareholders including 
EFSE further increased the capital of KrK. 
The equity of the institution more than tripled wi thin one year after restructuring and achieved 
a very solid level of €4.8 million. With this strong equity base, extended shareholders 
structure and solid corporate governance KrK ma naged to attract further debt providers, 
 - 81 -   upgrade its product range and extend the outreach to new rural areas of Kosovo. Compared to 
late 2007, the loan portfolio almost doubled to €14 million with the client base exceeding 
6,000 borrowers. One of KrK’s future scenarios foresees its transformation into a deposit-
taking institution.  
In its response to the global economic crisis , the Commission adopted an Economic Recovery 
Plan on 26 November 2008. In this plan, the Commission committed to continuing to support 
the economic and social consolid ation of the candidate s and potential candidates in the mutual 
interest of the EU and the region. To this e nd, the Commission intend ed to allocate €120 
million under IPA 2009 for the purpose of "C risis Response Package." The package was 
expected to leverage an amount of  €500 million in loans from IFIs. 
In March 2008, the Commission announced that, t ogether with the EIB,  the EBRD and the 
CEB, it would establish a comprehensive We stern Balkans Investment Framework by 2010. 
Its goal is to further enhance harmonisati on and cooperation in investments for socio-
economic development in the region. The EC OFIN Council and the European Council 
welcomed the initiative and calle d for its swift implementation.  At the second meeting of the 
Steering Group for the Western Balkan Inve stment Framework on 22 October 2008, it was 
agreed that the European Commission, the EI B, the EBRD and the CEB would elaborate a 
concrete proposal for the setting up of a Joint Grant Facility. Important work was carried out 
in 2008 by the IFI partners and the Commissi on, concrete proposals were , prepared and 
negotiated between the partners and will be proposed for approval by the 3rd Steering Group for the Western Balkan Invest ment Framework in April 2009  
The IFI advisory group continues to support and to improve overall cooperation between the 
IFIs and the European Commission. The group was established in 2007 with the aim of 
optimizing the coordination of financial assistan ce in the areas of regional transport, energy 
and environmental projects, municipalities and pub lic-private partnerships , as well as social 
issues including health, educat ion, employment, and labour mark et. At the end of 2008, four 
working groups were operating on transport, energy, environment and social issues are in 
operation.  
 
9.2.2.  Education and Youth 
Education: Multi-beneficiary IPA assistance is  provided in Education via the established 
Tempus and Erasmus Mundus programmes.  The Commission offered 100 scholarships for the academic year 2007/2008 to postgraduate students from the Western Ba lkans under the Erasmus Mundus  programme. A further 500 
scholarships are available for the academic year 2008/2009. In March 2008, following the Council conclusions of January 2008, the Comm ission decided to double its annual allocation 
for scholarships to the Western Balkans, th is would enable several hundreds additional 
students to receive a scholarship. The increas e will be implemented gradually during the 
academic years 2009/2010 and 2010/2011.   As from the academic year 2009-2010 (IPA 2008), st udents from Turkey will also be eligible 
to this programme which has been rename d "Erasmus Mundus Western Balkans-Turkey 
Window".  Youth: The Western Balkans window, opene d in 2007, provides support for projects 
submitted by young people, youth organisations a nd civil society organisations from the 
Western Balkans under the Youth in Action prog ramme. Activities include youth exchanges, 
European Voluntary Service projects, and trai ning and networking projects. They are based 
on partnerships between organisations from the region and their counterparts from the EU.  
The European Community's support amounted to €1 million under IPA 2007. Additional support of €1.5 million is provided for under IPA 2008. The Youth in Action Programme functions on the basis of permanent calls for proposals. The first deadline of the year was 
 - 82 -   February 2008 but as financing agreements we re pending signature, the projects for the 
Western Balkan Window were all selected th rough the deadline of September 2008. A total of 
fifty-five projects were awarded to  Western Balkan youth organisations. 
9.3. Ability to assume the obligations of Membership and approximation to 
European Standards 
9.3.1.  Customs and Taxation 
From March 2006 to February 2008, the CAFAO (Customs And Fiscal Assistance Office) 
project gave support to Albania, Bosnia and Herzegovina, the former Yugoslav Republic of 
Macedonia, Montenegro, Serbia and Kosovo to in crease their authorities'  capacity to manage 
border posts and to increase customs revenues and excise  duties, with  a budget of €34.5 
million (CARDS and IPA 2007). As of Februa ry 2008, a new Multi-beneficiary project, 
TACTA (Technical Assistance to Customs and Taxation Administrations), is in operation 
covering Albania, Bosnia and Herzegovina, Montenegro, Serbia and Kosovo. It is funded 
from the national IPA 2007 budgets of the Be neficiaries for a total of €7.1 million. A 
conference  on Customs Cooperation in South-East Europe was held in March 2008. The 
European Commission and the Member States' customs administrations announced plans to 
continue to provide expertise and techni cal assistance to the Western Balkans. 
10. IPA  IN 2008 
10.1. MIPD 2008-2010 
 The Multi-beneficiary Multi-annual Indi cative Planning Do cument (MIPD) 2008-2010 
provides the strategic three-year  plan for programming of the assistance to candidates and 
potential candidates through regi onal and horizontal projects: 
- Regional projects aim to facilitate regional cooperation between the IPA Beneficiaries. 
These programmes endeavour to promote rec onciliation, reconstruction and political 
cooperation.  
- Horizontal projects address common needs acr oss several IPA Beneficiaries and seek to 
attain efficiencies and economies  of scale in implementation.  
IPA Multi-beneficiary assistance focuses th erefore on support that requires collaboration 
among the IPA Beneficiaries, such as regional stru ctures, networks of expe rts or civil servants 
or to tackle needs or problem s of a cross-border nature. Part icular focus continues to be 
placed on Civil Society Dialogue and Developm ent: the IPA Multi-beneficiary programme 
provides horizontal technical assistance to su pport actions in this area. To facilitate 
coordination, administration and co llaboration with International Financial Institutions for the 
joint implementation of finance facilities as we ll as support for the pa rticipation in Tempus, 
Erasmus Mundus or Youth in Action programmes,  assistance is channe lled through the Multi-
beneficiary programme. This MIPD also includes assistance for nuclear safety and radiation pr otection, the Office of 
the High Representative in Bosnia and Herzegovina, TAIEX, Information and Communication, as well as audit,  evaluation and monitoring.  
The Multi-beneficiary IPA MIPD 2008-2010 was approved by the IPA committee on 19 May 
2008 and adopted by the Commission on 17 July 2008. The Multi-beneficiary 2008-2010 MIPD was based on an indicative financial envelope of €458.4 million. 
 
 - 83 -   10.2. Programming exercise 
 Component 2008 
I Transition Assistance and Institution Building €149.6 million10 
 
Eleven programmes were adopted in 2008: (i ) Support to the operati onal budget of RCC (€1.5 
million); (ii) Contribution to the Energy Comm unity budget (€1.3 million); (iii) Support to the 
operational budget for OHR June 2008 – June 2009 (€6 million); (iv) IPA Monitoring 
Programme (€2 million); (v) Multi-beneficiary Programme 111 (€6 million); (vi) Civil Society 
Dialogue and Development (€16.5 million) (vii)  Nuclear Safety and Radiation Protection 
(€7.03 million); (viii) Multi-benef iciary programme for support to cooperation with the IFIs 
(€50.2 million); (ix) Multi-b eneficiary Programme 2a12  (€32.9 million); (x) Multi-beneficiary 
Programme 2b13  (€24.7 million) and (xi) RCC July 2009-Dec 2010 (€1.5 million).  
The programme to support the participation in the Union for the Medite rranean (€3.2 million) 
and the Cultural heritage pr ogramme (€3 million) were carried over for adoption in 2009. 
During the programming exercise in 2008, due  account was taken of the Accession and 
European Partnerships as well as the Annual Progress Reports and the Enlargement Strategy 
Paper 2007-200814 which set down the priorities for the programming of assi stance under the 
IPA Multi-beneficiary Programme 2008-2010 as  well as the Communications from the 
Commission on Civil Society Dialogue15 and on the Western Balkans16.  
DG Enlargement has established a transparent consultation process for the programming of 
the Multi-beneficiary Programme with EU Memb er States, Civil Society Organisations, IFIs, 
the Regional Cooperation Council as well as with the Beneficiaries. This process is aimed at 
ensuring complementarities, avoiding overlaps and enhancing, as far as possible, local ownership of the choices, content and design  of the programmes. DG Enlargement staff 
responsible for the implementation of the Multi -beneficiary programmes also participate in 
regional networks and structures to facilita te coordination amongst the stakeholders and 
donors active in the region. Special importance is given to the role of the Regional 
Cooperation Council in which the European Commission plays an active role, as the 
interlocutor for the Beneficiaries in particul ar for the Regional Cooperation Process in the 
Western Balkans.  
                                                
 
10  This amount includes national funds for Tempus and Nuclear safety and radiation protection, monitoring, 
interim civilian administrations and the use of carried over assigned revenues. 
11  Multi-beneficiary Programme 1 (EUR 6m) includes projec ts in the areas of Disaster Risk Reduction in South 
East Europe, Regional School for Public Administration in South East Europe and Refugee Return in the Western Balkans 
12 Multi-beneficiary Programme 2a (EUR 32.9m) pertains to  projects in the areas of Preparatory measures for 
the participation in the Community Agencies; Social Inclus ion; Trade; Education; Youth; Quality Infrastructure; 
Statistics and Environment. The Programme was presented to the IPA Committee on 30 September 2008; the Commission adopted the pr ogramme on 19 December 2008. A copy of the adopted Multi-beneficiary 
Programme 2a has been sent to EC Delegations and IPA Beneficiaries for endorsement. 
13 Multi-beneficiary Programme 2b (EUR 24.7m) pertai ns to projects in the areas of Police Cooperation; 
Education and Animal disease eradication. The pr ogramme was presented to the IPA Committee on 30 
September 2008; the Commission adopted the programme on 18 December 2008. Fina ncing agreements were 
sent to the IPA Beneficiaries in early 2009. 
14 Communication from the Commission to the Council and the European Parliament – Enlargement Strategy 
and Main Challenges (COM/2007/663), 6 November 2007 
15 Communication from the Commission to the Council, the European Parliament, the European Economic and 
Social committee and th e Committee of the Regions - Civil So ciety Dialogue between the EU and 
Candidate Countries (COM/2005/0290), 29 June 2005 
16 Communication from the Commission - The Western Balkans on the road to the EU: consolidating stability 
and raising prosperity (COM/2006/0027), 27 January 2006; Communication from the Commission - 
Western Balkans: Enhancing the European perspective (COM/2008/127), 5 March 2008 
 - 84 -   10.3. Implementation modalities and structures  
Assistance from the IPA Multi-beneficiary pr ogramme was in 2008 implemented partly on a 
centralised basis by the European Commission, partly by decentralised management and 
partly by joint management with international organisations based on Article 53a, c and d of 
the Financial Regulation 
 
10.4. Overview of IPA programmes implemented 
€106.4 million was allocated to the IPA Multi -beneficiary programmes in 2008, but the 
amount finally committed in 2008 was €149.6 million. This amount includes national funds for Tempus and Nuclear Safety and Radiat ion Protection, monitori ng, interim civilian 
administrations and the recuperation of some old (uncommitted) administrative expenditure 
funds.  Of the total €149.6 million seven contracts we re signed in 2008. These were: (i) Regional 
Cooperation Council (€1.5 million), (ii) OHR (€ 6 million), (iii) Monito ring (€2 million), (iv) 
Refugee Return (€1 million); (v) ReSPA (€2 m illion) and (vi) Civil Society Facility – 
Component "People 2 People" (€4 million). A c ontribution of €1.3 million was made to the 
budget of the Energy Community. 
10.5. Participation in Community  Programmes and Agencies 
The Western Balkans can participate in Comm unity agencies on a case-by-case basis and the 
"entry-ticket" to participate in  the Agencies is financed th rough the National Programmes. As 
was the case with previous En largements however, the EU su pports the Community Agencies 
to prepare their counterparts in the Beneficiarie s for participation in th e activities of the EU 
Agencies. In November 2007, the first IPA programme to pr epare Beneficiaries for future participation 
in the Community Agencies was adopted. The programme is implemented by the following 
agencies: (i) Community Plant Variety Office; (ii) European Aviation Safety Agency; (iii) 
European Centre for Disease Prevention and C ontrol; (iv) European Food Safety Authority; 
the European Monitoring Centre for Drugs and Drug Addiction; (v ) European Maritime 
Safety Agency; (vi) European Agency for Sa fety and Health at Work; (vii) European 
Foundation for the Improvement of Living and Working Conditions ; (viii) European 
Medicines Agency and (ix) European  Centre  for the Development of Vocational Training. 
Typical activities to be implemented by the Ag encies are awareness-raising and fact-finding 
missions to determine or fine-tune any gaps . Since for some Agencies and for some 
Beneficiaries these needs are already clear, prep aratory measures such as training activities, 
study visits, workshops, conferences  and/or outreach actions as we ll as drafting/editing (and if 
necessary translation of manuals, guides and/or other relevant documents and reports for the 
benefit of Beneficiaries) are under implementation. As the Agencies are the only organisations th at can prepare their counterparts for future 
participation, they hold a de facto monopoly; the Commission th erefore awards contracts to 
these Agencies without a call for proposals. 
11. MONITORING AND RESULTS  
11.1. Monitoring 
Besides monitoring of projects done by the Project Managers, the IPA Multi-beneficiary 
Programmes are monitored by an external comp any using the Results-Oriented Monitoring 
(ROM) method. The purpose of RO M is to provide a clear, objective, consistent and user-
friendly overview on projec ts being implemented as well as information on best 
 - 85 -   practices/common mistakes and recommenda tions for improvement to the European 
Commission and the Beneficiaries.  Through a consistent approach, with standard ised outputs, ROM highlights strengths and 
weaknesses in the implementation of EC ex ternal assistance projects, by assessing the 
projects’ relevance, quality of design, efficiency, imp act and sustainability.   
The average ratings for CARDS and IPA Regiona l and Multi-beneficiary projects in 2008 
were: 
Criterion Regional and Multi-
beneficiary  Programmes 
Relevance 2.81 
Efficiency 2.99 
Effectiveness  2.82 
Impact 2.94 
Sustainability 2.91 
Average17 2.89 
 
11.2. Evaluation results 
As project implementation commenced only in  the second half of 2008, no evaluation was 
completed in 2008. 
11.3. Sectors with positive results- Success stories 
- Regional Cooperation Council:  The transition from the St ability Pact to a more 
regionally-owned cooperation framework, th e Regional Cooperation Council (RCC), was 
completed in 2008.  
- ReSPA: The signing of the International Agreemen t which provides for the establishment 
of the School in Montenegro was initiated  on 21 November 2008 in Podgorica. It shall 
enter into force when five of the seven signa tories have deposited their instruments of 
ratification, acceptance or approval with the De positary, in this case, the government of 
Montenegro.  
- Civil Society Facility: The Civil Society Facility, whic h the Commission announced in its 
November 2007 Enlargement Strategy Paper was launched in April 2008.  
- Western Balkan Investment Framework:  To further strengthen cooperation between 
the Commission and the IFIs, it was agreed to set up a Western Balkan Investment 
Framework by 2010, creating by the end of 2008 the Western Balkan Infrastructure 
Initiative, pooling Community funds, grant funds from the IFIs own resources and 
opening up for contributions from the Member  States. The IFIs w ould at the same time 
                                                 
17 Explanation of ROM Ratings:  4 Very Good; 3 Good; 2 Problems and 1 Serious deficiencies 
  
 
 - 86 -   create a Joint Lending Facility.  The West ern Balkans Investment Framework Steering 
Group with Members from the Commission, the IF Is and the Member States was set up to 
supervise the progress of wo rk. The Steering Group met twice in 2008 and underlined the 
need to have due stock-taking and mapping of  activities in support of infrastructure 
investments in the region funded by the Eu ropean Community, the IFIs, other donors as 
well as the Beneficiaries. A report on the progress of the Western Balkans Investment Framework was presented to the Council at the end of 2008.  
- Infrastructure Projects Facility:  An Infrastructure Project s Facility (IPF) for the 
Western Balkans was established in Nove mber 2007 by the Commission, the EIB, the 
EBRD and the Council of Europe Devel opment Bank. A steering committee, which 
involves the Beneficiaries, the EBRD, the EI B and the CEB, supports the implementation 
of the IPF. A Memorandum of Understand ing was signed in Ma y 2008. The facility 
includes two windows: one for technical a ssistance (TA) and one municipal (MW). 
During 2008, for the TA window, the team of experts started defining the type of 
assistance required to improve the preparatio n of an initial list of eighteen selected 
infrastructure projects. By the end of 2008, three of these projects were under 
implementation and a further nine projects were ready for implementation in 2009.  
- Scholarships:  The Commission offered 100 scholarships for the academic year 
2007/2008 to postgraduate students from the Western Balkans under the Erasmus Mundus 
programme. A further 500 scholarships are av ailable for the academic year 2008/2009. In 
March 2008, following the Council conclusions of January 2008, the Commission decided to double its annual allocation for scholarships to  the Western Balkans, this would enable 
several hundreds additional students to receiv e a scholarship. The increase will be 
implemented gradually during the a cademic years 2009/2010 and 2010/2011.   
 
 - 87 -   PART  III:  TECHNICAL  AND  FINANCIAL  ASSISTANCE  
1. TWINNING  
Twinning has been designed and developed by th e Commission as the main instrument for 
institution building. It aims at helping candida te and potential candidate countries in their 
development of modern and efficient administ rations, with the structures, human resources 
and management skills needed to implement the acquis so as to reach the same standards 
throughout the Union but also to benefit fully from European Union membership.  
This major institution building initiative ha s managed to mobilise significant human and 
financial resources of the Comm ission as well as of the Member States and the beneficiary 
countries to achieve this administrative overhaul. Twinning projects are based on the 
secondment of EU public sector experts (Mem ber State officials or mandated body experts), 
known as Resident Twinning Advisors (RTAs) who are made available to the beneficiary 
country administrations for a period of at least one-year in order to assist these 
administrations to obtain the mandatory result de fined for each and any twinning project. To 
that effect, the Resident Twinni ng Advisors provide technical advi ce and are in charge of the 
day-to-day implementation of the twinning projects. 
They are supported by a senior pr oject leader in their home admi nistration, who is responsible 
for ensuring the overall thrust of  the twinning project implementa tion and for co-ordinating all 
other inputs from the Member State administ ration or mandated body which provides the 
twinning expertise. In order to achieve the aforementioned mandatory results, it is indeed 
necessary to combine different means of assistan ce, including short-term  expertise, training, 
and other services (such as translation and inte rpreting) in addition to  the Resident Twinning 
Advisor.  More than 1,400 twinning projects have alr eady been provided for since twinning was 
launched in 1998. Each twinning project has an average budget of €1 million. Almost one half 
of these projects concerns Justice, Freedom and Security issues, and Public Finance and 
internal market matters. Other areas prioritised include Agriculture and Fisheries, Environment and Social policy. In 2008, 22 IPA Twinning fiches we re circulated to the Member  States, out of which 2 had 
been circulated a first time in 2007 without  having received adequate proposals from the 
Member States. Furthermore, 2 contracts for IPA Twinning projects have been approved by 
the Commission Steering Committee and notif ied in 2008. The distribution of Twinning 
projects launched and contracted under IPA in the Candidate and Potential Candidate 
Countries for 2008 were as follows:   
Number of IPA  project fiches 
circulated in 2008 Number of IPA Twinning Contracts approved 
and notified in 2008 
Bosnia and Herzegovina  5 Montenegro 1 
Kosovo 
 9 Kosovo 1 
Former Yugoslav Republic of 
Macedonia 
 1 
Montenegro 
 4 
 
Serbia  1  
 
 - 88 -   Turkey 
 1 
Croatia 
 1 Total 2 
Total  22  
 
The 22 IPA Twinning fiches circul ated in 2008 concern projects  in the following sectors: 
Justice and home affairs (9), Environment (2), Agriculture and Fisheries (2), Public finances 
(5), Social sector (1), Transport (1), Coordination of EU legislation (2).   
Furthermore, the new partner countries are be ing offered the possib ility of drawing on 
twinning expertise throu gh “Twinning Light”, in order to ad dress well-circumscribed projects 
of limited scope. In 2008 this instrument has been used extensively by the beneficiary 
administrations.  
2. TAIEX 
TAIEX18 started operations in 1996 as a follow-up  to the Commission’s White Paper on the 
preparation of the associated countries fo r integration into the internal market.  
Since then, TAIEX has evolved in to an instrument providing s hort-term technical assistance 
to facilitate the approximation, implementa tion and enforcement of EU legislation.  
The TAIEX instrument remained available for the 10 Member States which acceded in 2004 (until May 2008), to Bulgaria a nd Romania, to candidate and pr e-candidate countries, to the 
Turkish Cypriot community, as well as to  the countries cove red by the European 
Neighborhood and Partnership Instrument (ENPI). TAIEX organises workshops, expert missions, st udy visits, peer assessments and training 
programmes designed on the basis of specific re quests and needs of beneficiary institutions. 
TAIEX is demand-driven and it delivers servic es on a "first come, first served" basis. 
TAIEX also facilitates access to  several databases (CCVista, Progress, JurisVista, VetLex, 
PhytoLex and Avis) with translation of legisl ative texts and information on the alignment of 
legislation. Both requests and delivery of TAIEX assistan ce registered significant increases in 2008. The 
number of incoming applications reached an  overall total of 1,697 - 6.7 % up on 2007. The 
phasing out of TAIEX assistance to the 10 new Member States implied a significant reduction 
in the number of requests from these countries, both in absolute terms (from 407 to 157) and 
in percentage (from 26% to 9% of the respective annual totals). 
The number of requests from candidate and pr e-candidate countries increased from 728 in 
2007 (46% of the total) to 948 (56%). In 2008,a total of 1,543 events were organise d, representing an increase of some 20% 
compared with 2007. IPA funds were used to fi nance the organisation of  406 events, attended 
by over 10,000 participants from th e pertinent beneficiary countri es and for a total cost of 
€5.6 million. In the framework of the "Civil Society Fac ility" launched by the EC Communication on the 
Western Balkans of 5 March 2008, TAIEX implemented in 2008 the pilot phase of the "People 2 People" Programme (P2P). Participants  from 162 organisations attended a total of 
seven P2P study tours, covering topics such as : agriculture and rural development; women in 
business; intercultural dialogue; etc. During the pilot phase, €0.5 million have been used from 
IPA 2008 'Civil Society' budget. Following the successf ul completion of this pilot phase, it is 
planned to expand the purpose and reach of P2P in the coming years. The positive results and the increasing dema nd for assistance clearly demonstrate the 
usefulness of TAIEX as an instru ment of know-how transfer and exchange of best practice.  
                                                
 
18 Technical Assistance Information Exchange Instrument  
 - 89 -   Globally, four Commission Fina ncing Decisions were adopted in 2008 to ensure the 
continued funding of TAIEX operations. Two of them concerned the allocation of IPA funds: 
€30.9 million for the period 2008-10 and €4 milli on for the "People to People" Dialogue 
Programme. 
3. SIGMA   
Since 1992, this institution-building instrument , providing assistance in  horizontal areas of 
public management (public service, legal admi nistrative framework, public integrity system, 
policy-making and co-ordination, regulatory framework, public expenditure management, 
public internal financial control, external audit and public procurement), is principally 
financed by the EU and implemented by the OE CD through contribution agreements between 
the European Commission and the OECD. In 2008 SIGMA worked with the two new EU Memb er States and the three EU candidates as 
well as with potential candidates in the We stern Balkans.  Under the two contribution 
agreements, work was carried out on a total of  61 projects in 2008: 34 in Bulgaria, Croatia, 
Romania and Turkey and 27 in othe r Western Balkans' countries.  
In the framework of the Instrument for Pre-Accession Assistance (IPA), SIGMA work with all EU candidates and potential candidates wa s launched in January 200 9 and will continue 
until December 2010 under a new contribution ag reement between the Commission and the 
OECD, which provides for a global budget of €10.7 million.   
In the second half of 2008 the scope of SIGMA expanded to incl ude countries benefiting from 
the European Neighbourhood and Partnership Inst rument (ENPI). The c ontribution agreement 
between the EC and the OECD, covering SIGMA activities in ENPI be neficiary countries 
until December 2010, provides for a global budget of €6 million.  
 
 - 90 -   PART  IV: FINANCIAL  DATA   
1. BREAKDOWN OF NEW IPA  COMMITMENTS IN 2008  IN € MILLION  
1.1 COMPONENT I – TRANSITION ASSISTANCE AND INSTITUTION BUILDING PROGRAMMES  
1.1.1  COUNTRY ALLOCATIONS IN 2008 
COUNTRY  A NNUAL 
PROGRAMME  NUCLEAR 
SAFETY  TEMPUS  T OTAL  
Albania 60.92 0.20 1.00 62.12
Bosnia & 
Herzegovina 66.75190.70 2.40 69.85
Croatia 41.37 1.00 3.00 45.37
Former 
Yugoslav Republic of Macedonia 37.12 0.50 3.50 41.12
Kosovo 182.70 0.20 1.80 184.7
Montenegro 26.81 0.30 1.00 28.11
Serbia 168.44 4.00 7.00 179.44
Turkey 256.13 - - 256.13
TOTAL 840.24 6.90 19.70 866.84
 
                                                 
19 Was adopted in two parts, part I for €12.5 million and part II for €54.25 million 
 - 91 -   1.1.2  MULTI -BENEFICIARY ALLOCATIONS IN 2008 
Multi-beneficiary Programme 1 (inc luding disaster risk reduction, 
ReSPA, refugee return) 6.00
Multi-beneficiary Programme 2a (i ncluding social in clusion, trade, 
Erasmus Mundus, youth, Quality In frastructure, statistics, 
environment) 32.9020
Multi-beneficiary Programme 2b (including police cooperation and 
animal disease eradication)  5.0021
Support to Cooperation with IFIs 50.20
Civil Society Dialogue and Development 16.50
Nuclear Safety 0.13
TAIEX 12.90
Support to the Regional Cooperation Council 3.00
Contribution to the Energy Community 1.30
Support to the Office of the High Representative 6.0022
Information and Communication 7.30
Evaluation  5.00
Monitoring 2.00
TOTAL  148.2323
 
                                                 
20 Includes €10.73 million recovered from previous programmes.  
21 Funds for Tempus, allocated by country as shown in table 1.1.1 but implemented horizontally, are also 
included in the same financing deci sion. Total amount for financing deci sion MB 2a is €24.7 million.  
22 Includes €2.04 million recovered from previous programmes. 
23 Includes €12.77 million recovered from previous programmes.  
 - 92 -    
1.2 COMPONENT II – CROSS BORDER COOPERATION PROGRAMMES  
1.2.1  CROSS COUNTRY COOPERATION PROGRAMMES BETWEEN MEMBER STATES  
COUNTRY  B ULGARIA  G REECE  H UNGARY  R OMANIA  S LOVENIA  A DRIATIC 
PROGRAMME   TOTAL  
Albania - 1.49 - - - 5.39 6.88
Bosnia & 
Herzegovina - - - - - 2.24 2.24
Croatia - - 2.40 0.00 2.94 6.69 12.03
former 
Yugoslav Republic of 
Macedonia 1.23 1.34 - - - - 2.57
Kosovo - - - - - - 0.00
Montenegro - - - - - 1.24 1.24
Serbia 2.16 - 2.28 2.69 0.00 0.54 7.67
Turkey 1.87 - - - - - 1.87
TOTAL 5.26 2.83 4.68 2.69 2.94 16.10 34.50
 
 - 93 -   1.2.2  CROSS COUNTRY COOPERATION PROGRAMMES BETWEEN IPA  COUNTRIES AND 
PARTICIPATION IN TRANSNATIONAL PROGRAMMES   
Country ALBANIA Bosnia & 
Herzegovina Croatia fYR 
Macedonia Montenegro Serbia ERDF SE 
Europe / 
Med ENPI Black 
Sea Total 
Albania - - - 0.75 0.75 - 0.20 - 1.70
Bosnia & 
Herzegovina - - 1.00 - 0.50 0.70 0.51 - 2.71
Croatia - 1.00 - - 0.40 0.80 0.51 - 2.71
former 
Yugoslav 
Republic of Macedonia 1.00 - - - - - 0.51 - 1.51
Kosovo - - - - - - - - 0.00
Montenegro 0.60 0.60 0.50 - - 0.60 0.95 - 3.25
Serbia - 1.10 1.00 - 0.50 - 0.99 - 3.59
Turkey - - - - - - - 1.00 1.00
TOTAL 1.60 2.70 2.50 0.75 2.15 2.10 3.67 1.00 16.47
 
1.3 COMPONENT III – REGIONAL DEVELOPMENT PROGRAMMES  
COUNTRY  R EGIONAL 
COMPETITIVENESS  TRANSPORT  E NVIRONMENT  T ECHNICAL 
ASSISTANCE  TOTAL  
Croatia 11.60 18.00 18.00 - 47.60
former Yugoslav 
Republic of 
Macedonia - - - 12.30 12.30
Turkey 43.50 60.80 69.50 - 173.80
TOTAL 55.10 88.05 89.81 0.74 233.70
 
 - 94 -   1.4 COMPONENT IV – HUMAN RESOURCES DEVELOPMENT PROGRAMMES  
COUNTRY  R EDUCING 
UNEMPLOYMENT  EDUCATION AND 
TRAINING / 
HUMAN CAPITAL 
INVESTMENT  SOCIAL 
INCLUSION  TECHNICAL 
ASSISTANCE / 
ADMINISTRATIVE 
CAPACITY  TOTAL  
Croatia 2.90 5.00 3.50 1.30 12.70
former 
Yugoslav 
Republic of 
Macedonia 2.69 1.80 1.20 0.30 5.99
Turkey 34.00 13.60 - 5.29 52.89
TOTAL 39.59 20.40 4.70 6.89 71.58
 
1.5 COMPONENT V – RURAL DEVELOPMENT PROGRAMMES  
The table shows the component V split by country for 2008, and an indication of the 
percentage share by main area of int ervention taken from the MIPDs 2008-2010.  
COUNTRY  C OMMUNITY 
STANDARDS  PREPARATORY 
ACTIONS FOR 
AGRI- 
ENVIRONMENTAL 
MEASURES AND 
LEADER  DEVELOPMENT 
OF RURAL 
ECONOMY  TECHNICAL 
ASSISTANCE  TOTAL  
Croatia >60% <5% >20% - 25.60
former Yugoslav 
Republic of 
Macedonia 50%-80% 0%-3% - 20%-50% 6.70
Turkey 50%-80% - 20%-50% - 53.00
 
 - 95 -   2. STATE OF PLAY OF IMPLEMENTATION OF IPA  2007  NATIONAL PROGRAMMES (COMPONENT I) IN MEUR AS 
AT 31 DECEMBER 2008 
In 2008, implementation was underway for the IPA 2007 programmes. The table provides a 
summary of this implementation. Implementa tion of 2008 national prog rammes only began in 
2009.   
Country Allocated Contracted % contracted Paid % paid 
Albania 49.27 7.52 15% 1.76 4%
Bosnia & 
Herzegovina 49.74 23.40 47% 5.30 11%
Croatia  45.41 0.00 0% 0.00 0%
former 
Yugoslav Republic of Macedonia 34.94 8.68 25% 2.90 8%
Kosovo 62.00 29.80 48% 6.10 10%
Montenegro 23.87 4.77 20% 0.95 4%
Serbia 164.84 24.5 14% 1.40 1%
Turkey  256.20 0.00 0% 0.00 0%
 
  
Implementation of 2007 IPA component I national programmes
050100150200250300
AL BiH HR fYRoM KS MNE RS TKin € million
Allocated
Contracted
Paid