[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 10.11.2006

SEC(2006)1430

COMMISSION STAFF WORKING DOCUMENT

Accompanying document to theREPORT FROM THE COMMISSIONANNUAL REPORT OF THE INSTRUMENT FOR STRUCTURAL POLICY FOR PRE-ACCESSION (ISPA) 2005{COM(2006)674 final}

TABLE OF CONTENTS

1. New ISPA projects 4

2. Commitments for environment 4

3. Commitments for transport 5

4. Projects funded during 2000-2005 6

5. Payments 7

6. Summary tables 8

7. Forms and delivery of technical assistance 10

8. technical assistance on the initiative of the beneficiary country 10

9. Technical assistance on the initiative of the Commission 12

10. Project monitoring 20

11. Financial management and control, including EDIS 20

12. Risk assessment 22

13. European Court of Auditors findings 23

14. Co-financing partners – EIB, EBRD and KfW 24

15. Public procurement 26

16. Competition policy 26

17. Environment policy 27

18. Transport policy 27

19. Bulgaria 30

20. Romania 35

21. Croatia 40

Introduction

Following the Brussels European Council in June 2004, which awarded c andidate country status to Croatia, this country benefits from ISPA since 1 January 2005. Croatia thus joined Bulgaria and Romania which is receiving ISPA assistance since the instrument was launched in 2000. As a result, this report covers the ISPA activities delivered in these three beneficiary countries.

For all of these countries, the year 2005 entailed various challenges. Whereas for Croatia the major goal was the timely adoption of its first projects, Bulgaria and Romania had to accelerate and improve further the implementation of ISPA funds while at the same time start preparing future projects for the Cohesion and Structural Funds to which they are entitled upon accession. From this point of view, 2005 could be concluded successfully. However, as Bulgaria and Romania continued to face administrative weakness, in key areas of staff and procurement which will still require close monitoring by the Commission.

ISPA budget

In accordance with the Commission’s activity based accounting system, the budget for the ISPA instrument is provided for by two budget lines: the functional budget line B13.01.04.02 and the operational budget line B13.05.01.01. The first line contains the means for covering Technical Assistance (TA) administrative expenses (mainly for reinforcing EC Delegations), whereas the second line encompasses the appropriations made available for the effective implementation and operation of ISPA. Therefore, the latter budget line covers all expenses for co-financing projects (measures) in the beneficiary countries in the environment and transport domains, as well as for TA measures, irrespective whether these are initiated by the beneficiary country or by the Commission.

For 2005, €525.9 million was allocated from the Commission budget to the ISPA instrument. The B13.01.04.02 budget line received €3.7 million and the B13.05.01.01 budget line €521.95 million.

Table 1 : ISPA budget in 2005 – in Euro

Budget line | Commitment appropriations | Commitments implemented | Payments implemented |

Functional budget line B13.01.04.02 | 3 763 290 | 3 251 762 | 1 414 187 |

Operational budget line B13.05.01.01 | 521 950 000 | 521 950 000 | 231 243 551 |

Total | 525 713 290 | 525 201 762 | 232 656 738 |

Project funding

New ISPA projects

In 2005, following a positive opinion of the ISPA Management Committee, the Commission adopted a total of 24 new projects. The ISPA contribution to these projects amounted to more than €493 million, representing 69.9% of a total eligible investment cost of over €704.6 million. The remainder was financed from national, regional or local resources of the beneficiary countries which, for this purpose, had regularly recourse to loan-financing from international financial institutions ( IFIs ). Of these projects, 12 concerned environmental protection -8 combined water and wastewater projects, one water supply project, 2 solid waste projects, as well as one TA measure for the preparation of future Cohesion Fund projects. In the transport sector, one motorway bypass, one rail rehabilitation project, one reconstruction of road and rail infrastructure after floods, and one combined road-rail project received assistance. In addition, 7 sector- or project-related TA measures were approved. Nearly 60.7% of the total ISPA contribution was awarded to the environment sector.

Table 2 : New projects approved in 2005 – in Euro

Transport | 11 | 279.886.500 | 193.850.755 | 69.2 | 116.681.100 |

Horizontal TA | 1 | 20.000 | 20.000 | 100.0 | 10.000 |

Water and/or wastewater incl. treatment | 134.616.565 | 68.8 |

Wastewater treatment plant | 25.422.852 | 13.1 |

Solid waste collection | 26.700.000 | 13.6 |

Horizontal | 8.750.000 | 4.5 |

Total environment sector | 195.489.417 | 100.0 |

COMMITMENTS FOR TRANSPORT

As in the previous years, ISPA assistance in the transport sector in Bulgaria and Romania continued to focus on the extension and improvement of the TINA ( Transport Infrastructure Needs Assessment ) network and its access links with the view to facilitate the connections between the European Union and the candidate countries within the framework of the future trans-European transport network (TEN-T). More than half of the budgetary commitments for transport in 2005 were made in favour of combined road/rail projects, involving reconstruction of road and rail infrastructure damaged by the floods in Romania in the summer of 2005, as well as the construction of a major combined rail/road project. The remaining part of the funds was assigned to a road construction and upgrading project, as well as to a railway rehabilitation and upgrading project on the pan-European transport Corridor X in Croatia.

Table 4 : Commitments in 2005 – Transport by sub-sector[2]

Sub-sector | Euro | % |

Road | 23 825.600 | 20.4 |

Rail | 37.745.600 | 32.4 |

Road and rail | 49.717.500 | 42.6 |

Inland waterways | 1.870.000 | 1.6 |

Horizontal | 3.522.400 | 3.0 |

Total transport sector | 116.681.100 | 100.0 |

PROJECTS FUNDED DURING 2000-2005

BETWEEN 2000 AND 2005, the Commission approved a total of 96 projects on the basis of proposals submitted by Bulgaria, Croatia and Romania. Of these projects, 65 concerned the environment sector, 28 the transport sector, and three TA measures (two for achieving decentralised implementation ( EDIS) and one for the organisation of the statutory monitoring committees). Together, these projects represent a total eligible investment cost of €4.3 billion, of which €2.9 billion or 67% has been financed by ISPA. As a result, given that, by the end of 2005, the Commission had allocated more than 97% of the ISPA funds set aside for the three beneficiary countries covering the period 2000 to 2006, these funds are now almost depleted.

Table 5 : Projects approved in 2000-2005 – in Euro

Transport | 28 | 2.306.715.498 | 1.457.115.989 | 63.2 | 1.189.043.388 |

Horizontal TA | 3 | 1.633.308 | 1.633.308 | 100.0 | 1.492.308 |

Environment | 145.549.014 | 109.694.489 | 255.243.503 |

Transport | 183.364.692 | 119.346.710 | 302.711.402 |

TA | 924.524 | 58.800 | 983.324 |

Total | 329.838.230 | 229.100.000 | 558.938.230 |

SUMMARY TABLES

Tables 7 and 8 presented below provide an overview of the ISPA interventions for the year 2005 and for the period 2000-2005.

Table 7: Projects decided in 2005 – in Euro |

Sub-sector | N° of projects | Eligible cost | ISPA contribution | Commitments | Payments |

Environment |

Water and/or wastewater incl. treatment | 8 | 296.710.000 | 209.362.500 | 134.616.565 | - |

Wastewater treatment plant | 1 | 58.500.000 | 43.875.000. | 25.422.852 | - |

Solid waste | 2 | 44.500.000 | 33.375.000 | 26.700.000 | - |

Horizontal for sector | 1 | 25.000.000 | 12.500.000 | 8.750.000 | - |

Sector total | 12 | 424.710.000 | 299.112.500 | 195.489.417 | - |

Transport |

Road | 3 | 52.335.500 | 40.835.075 | 23.825.600 | - |

Road and rail | 2 | 105.700.000 | 85.050.000 | 49.717.500 | - |

Rail | 4 | 113.181.000 | 60.596.180 | 37.745.600 | - |

Inland waterways | 1 | 2.750.000 | 2.337.500 | 1.870.000 | - |

Horizontal for sector | 1 | 5.920.000 | 5.032.000 | 3.522.400 | - |

Sector total | 11 | 279.886.500 | 193.850.755 | 116.681.100 | - |

TA |

Management Committee | 1 | 20.000 | 20.000 | 10.000 | 8.000 |

TOTAL | 24 | 704.616.500 | 492.983.255 | 312.180.517 | 8.000 |

Table 8 : Projects decided in 2000-2005 – in Euro

Sub-sector | N° of projects | Eligible cost | ISPA contribution | 2005 | 2000 – 2005 |

Water and sewerage | 4 | 159.855.800 | 119.891.850 | - | 16.378.300 | 90.937.665 | 23.391.670 |

Water and/or wastewater incl. treatment | 30 | 1.082.597.492 | 788.440.001 | 180.461.416 | 56.124.274 | 655.611.273 | 142.591.806 |

Wastewater treatment plant | 18 | 434.133.316 | 312.229.868 | 61.041.724 | 16.606.361 | 262.562.690 | 43.587.226 |

Solid waste | 9 | 218.443.775 | 163.832.832 | 29.525.482 | 17.641.357 | 139.887.443 | 34.543.903 |

Air quality | 1 | 72.330.000 | 36.165.000 | 7.233.000 | - | 32.548.500 | 3.616.500 |

Horizontal | 3 | 53.671.000 | 35.341.000 | 11.034.100 | 2.944.198 | 29.306.900 | 7.512.398 |

Sector total | 65 | 2.021.031.383 | 1.455.900.551 | 289.295.722 | 109.694.490 | 1.210.854.471 | 255.243.504 |

Transport |

Road | 12 | 861.444.553 | 642.928.540 | 94.662.267 | 36.659.368 | 533.783.143 | 157.185.857 |

Road and rail | 4 | 337.386.452 | 160.048.000 | 56.325.500 | 7.000.000 | 109.715.900 | 10.998.400 |

Rail | 8 | 962.439.358 | 595.539.949 | 75.885.600 | 59.958.952 | 493.921.945 | 98.491.896 |

Inland waterways | 2 | 4.390.000 | 3.567.500 | 1.870.000 | 384.000 | 3.100.000 | 984.000 |

Airport | 1 | 135.135.135 | 50.000.000 | - | 15.344.390 | 45.000.000 | 35.051.249 |

Horizontal | 1 | 5.920.000 | 5.032.000 | 3.522.400 | - | 3.522.400 | - |

Sector total | 28 | 2.306.715.498 | 1.457.115.989 | 232.265.767 | 119.346.710 | 1.189.043.388 | 302.711.402 |

Horizontal |

EDIS | 2 | 1.613.308 | 1.613.308 | 178.511 | 50.800 | 1.482.308 | 975.324 |

TA | 1 | 20.000 | 20.000 | 10.000 | 8.000 | 10.000 | 8.000 |

Sector Total | 3 | 1.633.308 | 1.633.308 | 188.511 | 58.800 | 1.492.308 | 983.324 |

Water and/or wastewater incl. treatment | 2 | 10.500.000 | 9.625.000 | - | 1.958.784 | 7.700.000 | 4.900.000 |

Wastewater treatment plant | 2 | 3.310.000 | 2.482.500 | 225.000 | 89.492 | 2.211.000 | 1.130.316 |

Horizontal | 3 | 53.671.000 | 35.341.000 | 11.034.100 | 2.944.198 | 29.306.900 | 7.512.398 |

Road | 3 | 30.051.560 | 24.122.120 | 15.303.710 | - | 16.403.255 | 900.000 |

Rail | 4 | 38.220.000 | 32.407.000 | 25.445.600 | 227.625 | 26.024.975 | 287.625,00 |

Road and rail | 1 | 5.880.000 | 4.998.000 | - | - | 3.998.400 | 3.998.400 |

Inland waterways | 2 | 4.390.000 | 3.567.500 | 1.870.000 | 384.000 | 3.100.000 | 984.000 |

Horizontal | 1 | 5.920.000 | 5.032.000 | 3.522.400 | - | 3.522.400 | - |

EDIS | 2 | 1.613.308 | 1.613.308 | 178.511 | 50.800 | 1.482.308 | 975.324 |

Horizontal | 1 | 20.000 | 20.000 | 10.000 | 8.000 | 10.000 | 8.000 |

Kampsax/ Brown&Root | Framework | Transport | 2.000.000 | - | 334.429 | 1.337.681 |

Tractebel/ Halcrow | Framework | Environment | 2.000.000 | - | 210.199 | 1.475.881 |

EIB | Framework | Project appraisal | 210.000 | - | - | 72.164 |

TOTAL | 4.210.000 | - | 544.628 | 2.885.726 |

Table 11 : Budgetary allocation and payments for TA Action Programme 2001 - in Euro

Bulgaria | - Rehabilitation, upgrade/extension of the Sofia wastewater treatment plant water line - Integrated Water Project for the Town of Sliven |

- As regards the EBRD , the Bank can lend directly to municipalities and utility companies without a sovereign guarantee which adds an element of flexibility to the co-operation with ISPA. In 2005, the projects concerned were the following:

Table 15 : Projects co-financed by the EBRD in 2005

Country | Environment |

Bulgaria | - Integrated Water Project Bourgas - Integrated Water Project - Town of Rousse |

Romania | - Galati upgrading of Water and Sewerage Networks-Construction of a new Wastewater - Regional Waste Landfill in Bacau - Integrated Managemant of Solid Waste and Sludge from WWTP in Arges County |

Croatia | - Karlovac Water and Wastewater Programme |

From its side, the Kreditanstalt für Wiederaufbau provided loans for the following projects in Romania.

Table 16 : Projects Financed by the KfW

Country | Environment |

Romania | - Rehabilitation and Upgrading of the Water and Wastewater System in Deva and Hunedoara - Rehabilitation and upgrading of the water supply and wastewater systems in Suceava |

Contribution to Community policies

Public procurement

From the start of ISPA, the fulfilment of legal requirements for sound, fair and transparent public procurement as enshrined in the PRAG has proved to be a major challenge. In many cases, ensuring compliance with EU procurement principles has lead to delays in the implementation of ISPA projects. Commission services -especially the EC Delegations- had to intervene frequently, not only to check that procedures were correctly applied but also to rectify errors, to liaise with dissatisfied bidders, and to explain to implementing agencies how the procedures concerned were to be implemented. Regularly, the quality of the tender documents needed to be enhanced and the evaluation of bids to be repeated, whereas in some instances –in case of irregularities- tenders needed to be cancelled and re-launched.

The ex ante approval by the Commission which governs the tendering and contracting of ISPA projects is, therefore, entirely justified. Under this system of approval, local recipients and final beneficiaries are in the role of Contracting authority responsible for project implementation, whereas the Commission endorses each step of the procurement process. It follows that, although the Commission is not a contracting partner, it bears shared responsibility for the procedural correctness of the procurement process (without the Commission’s approval, contracts concluded between beneficiaries and contractors are not valid). This responsibility is entrusted to the EC Delegations in the beneficiary countries.

Training on specific procurement issues was launched and practical tools (guides) were published with a view to have tendering and contracting carried out in accordance with national law harmonized according to EU standards (e.g. standard clauses for contracts, standardised templates, guidance documents for national implementing bodies tailored to the particular conditions in each country). As a result, in general, tender documents are better drafted, contracts more consistent, and the management and supervision of works during the implementation phase more professional. However, as indicated before, delays and deficiencies continue to subsist and therefore require monitoring and further strengthening of public procurement systems and procedures.

COMPETITION POLICY

As the ISPA assistance is directed primarily to cover public expenditure -or equivalent- concerning utility projects, this does not generally raise problems of incompatibility with the Community rules on competition. Unless the rules on public procurement are infringed, and provided free access to such infrastructure is guaranteed for all operators meeting the necessary technical and legal conditions, such assistance does not confer any special advantage to specific firms.

ENVIRONMENT POLICY

During the year 2005, 12 new ISPA projects for environment were approved, 1 of which concerned a technical assistance measure for the preparation of future Cohesion Fund projects in this domain (integrated water projects, wastewater treatment plants, solid waste projects) in Romania. These projects represented a total grant amount of €299 million, the corresponding assisted investment amounting to €425 million. With a share of nearly 84% of the assistance, it was the water and wastewater sectors that benefited predominantly from ISPA.

By providing direct assistance to priority projects for environment, ISPA also contributes to the implementation of environmental policy and to the compliance with EU standards in the beneficiary countries. Experience gained through project development and implementation reinforces administrative capacity and accelerates sector reform in the environment sector. In particular, administrative capacity has been strengthened in regard to environmental investment planning and prioritization. Steady progress has also been made in proper implementation of the EIA directive, including aspects related to public consultation. Whilst ISPA has in these ways contributed towards significant progress in environmental protection in the candidate countries, there subsists a series of weaknesses which needs to be addressed as a matter of priority by these countries. Indeed, problems still exist in relation to the difficulties of environmental authorities in obtaining adequate funding and staffing -the high turnover of staff annihilates the benefits of provided training and of gained experience- as well as to a persistent lack of co-ordination between policy fields and of strategic planning.

In this respect, it is important to emphasize that, as far as Bulgaria and Romania are concerned, within the perspective of accession, the binding nature of the transition period targets and final deadlines for directives for which transition periods were awarded require from these countries to reserve adequate financial and human resources for implementation at national level, including for monitoring, inspections, permits and reporting. Anticipated financing should therefore also secure loans from international financial institutions, national budgets and private sector investment.

Transport policy

During the year 2005, 11 new ISPA projects in the transport sector representing a total grant amount of €194 million were approved, the corresponding assisted investment amounting to €280 million.

The transport networks in the beneficiary countries, agreed in accordance with TINA (Transport Infrastructure Needs Assessment), were constructed around the framework of pan-European corridors. Several of them include branches running across the territory of Bulgaria, Croatia and/or Romania, i.e. Corridor IV Dresden-Praha-Bratislava/Wien-Budapest-Arad , Corridor V Venezia-Trieste/Koper-Ljubljana-Budapest-Uzgorod-Lviv, incl. branches Va, Vb and V.c, Corridor VII Danube river , Corridor VIII Durres-Tirana-Skopje-Sofija-Varna/Burgas , Corridor IX Helsinki-St.Petersburg-Pskov/Moskva-Kiev-Ljubasevka-Chisinau-Bucuresti-Alexandroupolis and Corridor X Salzburg-Ljubljana-Zagreb-Beograd-Nis-Skopje- Veles-Thessaloniki , including branche X.a. . These networks were used as the planning basis for the national transport strategies for ISPA purposes and, therefore, each ISPA transport project needs to form part of the TINA network, i.e. concern the construction or rehabilitation of a section, nodal point or access relating to the networks. As the acceding countries are concerned, these networks will be used as well for future Cohesion Fund purposes and will fulfil a core function in these countries’ National Strategic Reference Frameworks ( NSRFs ), which will be the planning tool for the future use of the Cohesion and Structural Funds.

Table 17 : ISPA transport investment projects by pan-European transport corridor (2005)

Corridor | ISPA project |

IV Dresden-Praha-Bratislava/Wien-Budapest-Arad | 1. Construction of road and rail to the cross-border road/rail bridge over the Danube river at Vidin-Calafat (Romania) |

2. Construction of Lugoj motorway bypass (Romania) |

IX Helsinki-St.Petersburg-Pskov/Moskva-Kiev-Ljubasevka-Chisinau-Bucuresti-Alexandroupolis | 3. Reconstruction of rail and road infrastructure sections damaged by floods in Summer 2005 |

X Salzburg – Zagreb – Belgrade – Thessalonika | 4. Vinkovci to Tovarnik to State border railway habilitation |

The final TEN-T networks for Bulgaria and Romania are based on the TINA process, and were agreed and included in the Accession Treaty for these countries.

With the adoption in April 2004 of the revised Community guidelines for the development of the trans-European transport network (TEN-T guidelines)by the Council and the Parliament, the Community disposes of a legal framework governing the development of the TEN-T network in the enlarged EU. The guidelines include a list of 30 priority projects which are declared to be of European interest and are to be realised with the horizon of 2020. The list of projects aims at contributing to a modal shift and more sustainable mobility patterns by focussing investments in rail and waterborne transport. Cross-border projects are similarly present as these are typically the most difficult ones to implement. Of these projects, three concern axes including Bulgaria and Romania, i.e. priority project n° 22 the railway axis Athina-Sofia-Budapest-Wien-Praha-Nürnberg/Dresden , project n° 7 the motorway axis Igoumenitsa/Patras-Athina-Sofia-Budapest and project n° 18 the inland waterway axis Rhine/Meuse-Main-Danube, and one including Croatia, i.e. project n° 6 railway axis Lyon-Trieste-Divaca/Koper-Divaca-Ljubljana-Budapest-Ukrainian border.

Table 18 : ISPA transport investment projects relating to the TEN-T priority projects (2005)

Priority project (n°) | ISPA project |

Motorway axis Igoumenitsa/Patras-Athina-Sofia-Budapest (7) | Construction of road and rail to the cross-border road/rail bridge over the Danube river at Vidin-Calafat (Romania) |

Railway axis Athina-Sofia-Budapest-Wien-Praha-Nürnberg/Dresden (22) |

Motorway axis Igoumenitsa/Patras-Athina-Sofia-Budapest (7) | Construction of Lugoj motorway bypass (Romania) |

Co-ordination among pre-accession instruments

As required by the Coordination Regulation[3], the Commission ensures close co-ordination among the three pre-accession instruments, PHARE, SAPARD and ISPA. In line with the provisions of this Regulation, the PHARE Management Committee plays a special role in general co-ordination of the three pre-accession instruments.

Co-ordination with the (PHARE) Joint Monitoring Committee

The Joint Monitoring Committee is responsible for co-ordinating the monitoring of each pre-accession instrument and for assessing the overall progress of EU–funded assistance in the beneficiary countries. The Committee issues recommendations to the ISPA Committee or to the Commission when relevant.

Co-ordination with EC Delegations

Periodic meetings were organised by the Commission services (DGs Enlargement, External Relations and Regional Policy) with the experts in the Delegations responsible for PHARE and ISPA to discuss programming and implementation issues, in particular those related to tendering and contracting.

Country profiles and tables

Bulgaria

IN 200 5, Bulgaria received a total commitment of € 149 million of ISPA assistance. Of the 2005 allocation, €103.168.222 were assigned to environmental projects and €45.788.267 to transport. Of these commitments, technical assistance measures accounted for € 11.576.711. Considering the years 2000–2005, the total amount of grant decisions in Bulgaria corresponds to €867.396.930, from which the amount of commitments to date represents €711.922.613. Thus, virtually the whole of the available ISPA allocations for the period were committed in Bulgaria. These commitments were equally balanced between the environment sector, with 50.7%, and the transport sector, with 49.2%.

Programming

A total of 8 new projects were approved in 2005. In the transport sector, 2 technical assistance projects were adopted, both targeting the railway system: one relating to feasibility studies for the modernization of the Sofia-Vidin railway line, the other for the rehabilitation of the Plovdiv-Burgas and Mezdra-Gorna Oryahovitsa railway lines. In the environment sector, five investment projects were approved. All the projects targeted the sector of water and wastewater management. Four were integrated water projects for the towns of Sliven, Bourgas, Rousse and Kyustendil. The fifth concerned Sofia with the rehabilitation of sewerage and water supply, the extension of the wastewater treatment plant, and the construction of the new drinking water treatment plant. In addition to these projects, there was one technical assistance project supporting the organization of the ISPA Monitoring Committees in Bulgaria.

Implementation

While during 2000-2005 the available ISPA allocations were fully committed to 34 projects, payments up to end 2005 amounted to €176.462.711, representing 25% of total ISPA grant committed. The payments total has increased each year as projects have reached the implementation stage. In 2005, total payments amounted to €74.487.355, representing 42% of the committed amounts of that year.

Although the annual increase in payments reflects some progress in the contracting of works, the overall pace of project implementation remains slow and needs to be increased.

By the end of 2005 four projects, out of 6 approved, had been contracted in the transport sector (Sofia Airport, Danube Bridge TA; Transit Roads III and phase 1 of Plovdiv Svilengrad railway rehabilitation). In the case of the environment sector, five projects out of 19 approved had been contracted (Regional Landfills; Maritsa Basin, Pazardjik, Gorna and Blagoevgrad water projects).

Administrative weakness is the main challenge facing the implementation of ISPA, in particular in procurement and financial and contract management. Even if the outcome of the audit missions undertaken by the Commission in Bulgaria in 2005 showed some progress in ISPA Implementing Agencies, the results achieved in key areas of staff and procurement need to be continuously monitored and enhanced.

Procurement ratio

Calculated as the total contracted amount against the total eligible cost for the period 2000-2005, the procurement ratio amounted to 23%.

Monitoring and Evaluation

In 2005, the ISPA Monitoring Committee met twice, respectively in June and December. Attention of the Bulgarian authorities was drawn to the need to speed up the implementation of all projects. Nearly every project has acquired a delay of several months before contracting the TA preparing the works tenders. Delays for more advanced projects accumulate in several cases to more than 2 years from the initial plans. With regard to the environment sector in particular, it was emphasised that the insufficient involvement of the final beneficiaries additionally hinder the implementation of projects.

Co-financing with IFIs

Co-financing with the IFIs has been an important feature of the ISPA projects in Bulgaria especially in the transport sector. Considering that the investment needs of the country largely exceed the ISPA allocation, it is anticipated that this co-operation will have to continue over the period ahead. Among the projects approved in 2005, IFI co-financing was obtained primarily in the case of the water projects. Accordingly, the integrated water projects in Sofia and Sliven will receive loan-financing from the European Investment Bank, while the water projects in Bourgas and Rousse will benefit from loans from the EBRD.

EDIS

Following delays in contracting the technical assistance measure for EDIS preparation, DG Regional Policy initiated a new drive to accelerate the process in 2005. The consultants undertaking Stage 2 of the EDIS exercise (capacity building measures in the implementing agencies, or “gap plugging”) began their work in September 2005 and were expected to continue into early 2006. The 3rd Stage (“compliance assessment”) was then launched in December 2005 with a view to finalizing a report in April 2006 on the basis of which the Bulgarian authorities planned to submit an application to the Commission for EDIS accreditation of all ISPA bodies. The target set for EDIS accreditation is now the last quarter of 2006. The Commission has emphasised on a number of occasions to the Bulgarian authorities that achieving EDIS accreditation would be a good signal of the preparedness of Bulgaria for the future Structural Funds.

Financial Management and Control

The key elements of the ISPA management and control systems relate to the establishment of internal financial control procedures that can ensure transparent and non discriminatory procurement procedures, the accuracy of declared expenditure, adequate internal audit capability, sufficient audit trail and appropriate treatment of irregularities. Audits of both systems and individual projects have revealed a number of deficiencies which the Bulgarian administration has committed itself to address.

An intensified series of audits was initiated in Bulgaria in accordance with an Action Plan agreed with the Bulgarian authorities in July 2005. The Action Plan concerns the remediation of deficiencies in the set up and functioning of management and control systems, with particular attention to procurement, organisation and human resources, financial management and accounting systems, internal control and assessment of final beneficiaries. The audits in the latter half of the year were targeted in particular at preparing the ground for EDIS accreditation.

Table 19 : Projects decide 2005 Bulgaria – in Euro

Sub-sector | N° of projects | Eligible cost | ISPA contribution | Commitments | Payments |

Environment |

Water and wastewater including treatment | 5 | 168.700.000 | 121.575.000 | 80.316.852 | - |

Transport |

Rail | 2 | 14.520.000 | 12.342.000 | 9.873.600 | - |

Horizontal Support |

TA | 1 | 20.000 | 20.000 | 10.000 | 8.000 |

TOTAL | 8 | 183.240.000 | 133.217.000 | 90.200.452 | 8.000 |

Table 20 : Projects decided 2000-2005 Bulgaria – in Euro

Sub-sector | N° of projects | Eligible cost | ISPA contribution | 2005 | 2000 – 2005 |

Water/ wastewater including treatment | 5 | 135.632.000 | 96.054.000 | 56.801.400 | - | 72.060.600 | 1.907.400 |

Wastewater treatment plant | 15 | 314.343.316 | 233.217.368 | 37.844.222 | 9.566.861 | 195.106.940 | 33.219.560 |

Solid waste | 2 | 75.124.675 | 56.343.507 | - | 14.815.874 | 49.618.118 | 24.993.538 |

Air quality | 1 | 72.330.000 | 36.165.000 | 7.233.000 | - | 32.548.500 | 3.616.500 |

Horizontal for sector | 1 | 15.921.000 | 12.869.000 | 1.289.600 | 2.944.198,15 | 11.606.400 | 5.523.398 |

Sector total | 24 | 613.350.991 | 434.675.875 | 103.168.222 | 27.326.933 | 360.940.558 | 69.260.395 |

Transport |

Road | 2 | 188.450.000 | 141.337.500 | 15.356.667 | 9.457.231 | 116.070.000 | 30.041.145 |

Road & rail | 2 | 231.686.452 | 74.998.000 | 6.608.000 | 7.000.000 | 59.998.400 | 10.998.400 |

Rail | 3 | 354.520.000 | 165.342.000 | 23.823.600 | 15.300.000 | 129.011.100 | 30.600.000 |

Airport | 1 | 135.135.135 | 50.000.000 | 15.344.390 | 45.000.000 | 35.051.249 |

Sector total | 8 | 909.791.587 | 431.677.500 | 45.788.267 | 47.101.621 | 350.079.500 | 106.690.793 |

Horizontal Support |

EDIS | 1 | 1.023.555 | 1.023.555 | 178.511 | 50.800 | 892.555 | 503.522 |

TA | 1 | 20.000 | 20.000 | 10.000 | 8.000 | 10.000 | 8.000 |

Sector Total | 2 | 1.043.555 | 1.043.555 | 188.511 | 58.800,00 | 902.555 | 511.522 |

Water and/or wastewater incl. treatment | 1 | 1.500.000 | 1.125.000 | 225.000 | 89.492 | 1.12.,000 | 53.,492 |

Institutional strengthening/water and waste project preparation. | 1 | 15.921.000 | 12.896.000 | 1.289.600 | 2.944.198 | 11.606.400 | 5.52.,398 |

Sector total | 2 | 17.421.000 | 14.021.000 | 1.514.600 | 3.033.690 | 12.731.400 | 6.062.890 |

Transport |

Road & rail | 1 | 5.880.000 | 4.998.000 | - | - | 3.998.400 | 3.998.400 |

Rail | 2 | 14.520.000 | 12.342.000 | 9.873.600 | - | 9.873.600 | - |

Sector total | 3 | 20.400.000 | 17.340.000 | 9.873.600 | - | 13.872.000 | 3.998.400 |

Horizontal Support |

EDIS | 1 | 1.023.555 | 1.023.555 | 178.511 | 50.800 | 892.555 | 503.522 |

TA | 1 | 20.000 | 20.000 | 10.000 | 8.000 | 10.000 | 8.000 |

Environment |

Water and wastewater | 3 | 150.510.000 | 109.882.500 | 67.422.565 | - |

Solid waste management | 2 | 44.500.000 | 33.375.000 | 26.700.000 | - |

TA | 1 | 25.000.000 | 12.500.000 | 8.750.000 | - |

Sector total | 6 | 220.010.000 | 155.757.500 | 102.872.565 | - |

Transport |

Road & Rail | 2 | 105.700.000 | 85.050.000 | 49.717.500 | - |

Road | 3 | 52.335.500 | 40.835.075 | 23.825.600 | - |

Rail | 1 | 22.900.000 | 19.465000 | 15.572.000 | - |

Inland Waterways | 1 | 2.750.000 | 2.337.500 | 1.870.000 | - |

Horizontal | 1 | 5.920.000 | 5.032.000 | 3.522.400 | - |

Sector total | 8 | 189.605.500 | 152.719.575 | 94.507.500 | - |

TOTAL | 14 | 409.615.500 | 308.477.075 | 197.380.065 | - |

Table 23 : Projects decided 2000-2005 Romania – in Euro

Sub-sector | N° of projects | Eligible cost | ISPA contribution | 2005 | 2000 – 2005 |

Water/wastewater including treatment | 24 | 910.965.492 | 669.886.001 | 111.360.016 | 56.124.273 | 571.250.673 | 140.684.406 |

Water and sewerage | 4 | 159.855.800 | 119.891.850 | - | 16.378.300 | 90.937.665 | 23.391.670 |

Wastewater treatment plant | 3 | 119.790.000 | 79.012.500 | 23.197.502 | 7.039.500 | 67.455.750 | 10.367.667 |

Solid waste | 7 | 143.319.100 | 107.489.325 | 29.525.482 | 2.825.483 | 90.269.325 | 9.550.365 |

Horizontal for sector | 2 | 37.750.000 | 22.445.000 | 9.744.500 | - | 17.700.500 | 1.989.000 |

Sector total | 40 | 1.371.680.392 | 998.724.676 | 173.827.500 | 82.367.556 | 837.613.913 | 185.983.108 |

Transport |

Road | 10 | 672.994.553 | 501.591.040 | 79.305.600 | 27.202.137 | 417.713.143 | 127.144.713 |

Road & rail | 2 | 105.700.000 | 85.050.000 | 49.717.500 | - | 49.717.500 | - |

Rail | 4 | 532.158.358 | 401.408.769 | 39.762.000 | 44.658.952 | 352.610.845 | 67.891.896 |

Inland waterways | 2 | 4.390.000 | 3.567.500 | 1.870.000 | 384.000 | 3.100.000 | 984.000 |

Horizontal for sector | 1 | 5.920.000 | 5.032.000 | 3.522.400 | - | 3.522.400 | - |

Sector total | 19 | 1.321.162.911 | 996.649.309 | 174.177.500 | 72.245.089 | 826.663.888 | 196.020.609 |

EDIS |

EDIS | 1 | 589.753 | 589.753 | - | - | 589.753 | 471.802 |

Water and/or wastewater incl. treatment | 2 | 10.500.000 | 9.625.000 | - | 1.958.784 | 7.700.000 | 4.900.000 |

Waste Water Treatment Plant | 1 | 1.810.000 | 1.357.500 | - | - | 1.086.000 | 590.824 |

Horizontal for sector | 2 | 37.750.000 | 22.445.000 | 9.744.500 | - | 17.700.500 | 1.989.000 |

Sector total | 5 | 50.060.000 | 33.427.500 | 9.744.500 | 1.958.784 | 26.486.500 | 7.479.824 |

Transport |

Road | 3 | 30.051.560 | 24.122.120 | 15.303.710 | - | 16.403.255 | 900.000 |

Rail | 2 | 23.700.000 | 20.065.000 | 15.572.000 | 227.625 | 16.151.375 | 287.625 |

Inland waterway | 2 | 4.390.000 | 3.567.500 | 1.870.000 | 384.000 | 3.100.000 | 984.000 |

Horizontal for sector | 1 | 5.920.000 | 5.032.000 | 3.522.400 | - | 3.522.400 | - |

Sector total | 8 | 64.061.560 | 52.786.620 | 36.268.110 | 611.625 | 39.177.030 | 2.171.625 |

EDIS |

EDIS | 1 | 589.753 | 589.753 | - | - | 589.753 | 471.802 |

Environment |

Wastewater | 1 | 36.000.000 | 22.500,000 | 12.300.000 | - |

Transport |

Rail | 1 | 75.761.000 | 28.789.180 | 12.300,000 | - |

TOTAL | 2 | 111.761.000 | 51.289.180 | 24.600.000 | - |

List of abbreviations

ALAT | Local agent for technical assistance |

CARDS | Community Assistance for Reconstruction, Development and Stabilisation |

CFCU | Central Financial and Control Unit |

EBRD | European Bank for Reconstruction and Development |

EC | European Commission |

EDIS | Extended Decentralised Implementation System |

EIA | Environmental Impact Assessment |

EIB | European Investment Bank |

EU | European Union |

FIDIC | International Confederation of Consulting Engineers |

IFI | International Financial Institution |

ISPA KfW | Instrument for Structural Policy for Pre-Accession Kreditanstalt für Wiederaufbau |

LA | Local Agent |

PHARE | Community programme for assistance for economic restructuring in the countries of Central and Eastern Europe |

PPP | Public Private Partnership |

PRAG | Practical Guide to PHARE, ISPA and SAPARD contract procedures |

SAPARD | Special Accession Programme for Agriculture and Rural Development |

SSTA | Small-scale Technical Assistance |

TEN-T | Trans-European Transport Network |

TINA WFD | Transport Infrastructure Needs Assessment Water Framework Directive |

Useful information sources

ISPA on-line:

http://www.europa.eu.int/comm/regional_policy/funds/ispa/ispa_en.htm

DG Regional Policy on-line:

http://www.europa.eu.int/comm/regional_policy/index_en.htm

Documentation Centre: | The European Commission DG Regional Policy Tervurenlaan 41, B-1040 Brussels Tel: + 32.2.2960634 Fax: + 32.2.2966003 E-mail: regio-info@cec.eu.int |

European Union website: | www.europa.eu.int |

DG Enlargement website: | http://europa.eu.int/comm/enlargement/index.htm |

DG Environment website: | http://europa.eu.int/comm/environment/index_en.htm |

DG Transport and Energy website | http://europa.eu.int/comm/transport/index_en.html |

The EBRD website: | www.ebrd.com |

The EIB website: | www.eib.org |

The KfW website: | www.kfw.de |

Project list

| | | | | 2005 |2000-2005 | | Sub-sector | Reference Number |Project |Eligible cost |ISPA grant |Committed |Paid |Committed |Paid | | | Environment | | | | | | | | | Water and sewerage | 2000RO16PPE008 |Cluj: rehabilitation and modernisation of water supply and sewerage system for this area |46.755.800 |35.066.850 |- |7.895.799,66 |31.560.165 |14.909.170 | | | 2004RO16PPE001 |Botosani Rehabilitation and Modernisation of the Water System |42.500.000 |31.875.000 |- |3.187.500 |22.312.500 |3.187.500 | | | 2004RO16PPE002 |Ramnicu Valcea Rehabilitation of the Water System |29.000.000 |21.750.000 |- |2.175.000 |15.225.000 |2.175.000 | | | 2004RO16PPE008 |Rehabilitation and extension of the water supply and sewerage system in the City of Drobeta |41.600.000 |31.200.000 |- |3.120.000 |21.840.000 |3.120.000 | | |Sub-total |4 |159.855.800 |119891850 |- |16.378.300 |90937665 |23.391.670 | |

| | | | | 2005 |2000-2005 | | Sub-sector | Reference Number |Project |Eligible cost |ISPA grant |Committed |Paid |Committed |Paid | | | Environment | | | | | | | | | Water and wastewater including treatment | 2002BG16PPE016 |Asparuhovo : Waste water treatment plant |25.432.000 |19.074.000 |1.907.400 |- |17.166.600 |1.907.400 | | | 2001RO16PPA003 |Technical Assistance for completion and upgrading the water management facilities in Baia Mare Municipality |3.500.000 |2.625.000 |- |558.784,35 |2.100.000 |2.100.000 | | | 2003RO16PPA012 |Technical assistance for institutional capacity strengthening of ISPA projects in the field of water management |7.000.000 |7.000.000 |- |1.400.000 |5.600.000 |2.800.000 | | | 2000RO16PPE002 |Craiova city, rehabilitation of sewerage network and wastewater treatment facilities to prtotect the River Danube |70.378.000 |52.783.500 |- |- |47505150 |14.451.630 | | | 2000RO16PPE003 |Constanta sewerage and wastewater treatment rehabilitation |86.877.177 |65.157.883 |949138 |15.760.292,98 |57.933.992,00 |36.622.816 | | | 2000RO16PPE004 |Timisoara: Rehabilitation of wastewater treatment technology, drinking water supply and sewerage improvments for the population |45.363.012 |32.207.739 |- |3.413.680 |30.723.120 |6.827.360 | | | 2000RO16PPE005 |Pascani: Upgrading the water and wastewater system |19.053.680 |14.290.260 |1.219.650 |1.219.650 |12.196.500 |2.439.300 | | | 2000RO16PPE006 |Iasi: Upgrading the water and wastewater system |46.240.200 |34.680.150 | |4.007.342,06 |34.680.150 |14.374.985 | | | 2000RO16PPE007 |Brasov:Treatment of drinking water and wastewater and neighbouring localities |52.837.762 |37.514.811 |- |7.946.101,23 |37.514.811 |12.114.413 | | | 2000RO16PPE010 |Municipality Braila: Integrated Sewerage Development and Wastewater Treatment Project |49.104.400 |36.828.300 |3.320.250 |4.490.805 |32.337.495 |8.981.610 | | | 2000RO16PPE011 |Arad City: Rehabilitation of sewerage network and provision of wastewater treatment facilities in order to protect the River Mures |16.374.644 |12.280.983 |1.350.000 |3.242.956,27 |12.150.000 |5.942.956 | | | 2001RO16PPE012 |Focsani City:Rehabilitation of the sewerage network and wastewater treatment plant |15.876.500 |11.748.610 |- |1.746.056,65 |9398888 |4.846.588 | | | 2001RO16PPE013 |Oradea: Rehabilitation of the sewerage network and wastewater treatment plant |22.084.622 |15.459.235 |2.071.875 |1.673.420 |15459235 |3.346.840 | | | 2001RO16PPE015 |Rehabilitation of the drinking water supply and waste water collection and treatment for the City of Targu Mures |27.909.400 |20.932.050 |- |2.093.205 |18.838.845 |4.186.410 | | | 2002RO16PPE018 |Bacau : Rehabilitation of the sewerage network and waste water treatment plant |52.006.000 |39.004.500 |7.800.900 |3.900.450 |35.104.050 |3.900.450 | | | 2002RO16PPE019 |Satu Mare : Improvements to water supply and waste water collection and treatment systems |37.355.000 |26.522.050 |7.485.487 |- |23.869.845 |2.652.205 | | | 2002RO16PPE021 |Buzau: Rehabilitation of the waste water treatment plant, sewerage system and distribution network |35.433.550 |26.220.827 |5.244.165 |- |23.598.744 |2.622.082 | |

| 2002RO16PPE022 |Sibiu : Modernisation of the water supply and sewerage system |37.588.000 |25.559.840 |5.111.968 |- |23.003.856 |2.555.984 | | | 2002RO16PPE023 |Piatra Neamt : Improvement of water supply system, sewerage and waste water treatment |28.594.545 |21.159.963 |4.231.993 |- |19043967 |2.115.996 | | | 2003RO16PPE025 |Bistrita Catchment Areas: Rehabilitation and extension of the water supply and sewerage system |22.500.000 |16.875.000 |- |1.687.500 |13.500.000 |1.687.500 | | | 2003RO16PPE026 |Pitesti: Rehabilitation of the waste water treatment plant, sewerage network and water supply system |41.750.000 |31.312.500 |5.152.025 | - |28.181.250 |3.131.250 | | | 2004RO16PPE004 |Baia Mare rehabilitation and modernisation of water and sewerage public services |42.629.000 |29.840.300 | - |2.984.030 |21.088.210 |2.984.030 | | | 2004RO16PPE005 |Galati upgrading of Water and Sewerage Networks-Construction of a new Wastewater |60.000.000 |42.000.000 |29400000 |- |29400000 |- | | | 2005RO16PPE002 |Rehabilitation and Upgrading of the Water and Wastewater System in Deva and Hunedoara |45.920.000 |34.440.000 |24.108.000 |- |24.108.000 |- | | | 2005RO16PPE004 |Rehabilitation and upgrading of the water supply and wastewater systems in Suceava |44.590.000 |33.442.500 |13.914.565 |- |13.914.565 |- | | | 2005HR16PPE001 |Karlovac Water and Wastewater Programme |36.000.000 |22.500.000 |12.300.000 |- |12.300.000 |- | | | 2005BG16PPE001 |Integrated Water Project for the Town of Sliven |21.200.000 |15.900.000 |12.720.000 |- |12.720.000 |- | | | 2005BG16PPE003 |Integrated Water Project Bourgas |21.000.000 |10.080.000 |8.064.000 |- |8.064.000 | | | | 2005BG16PPE004 |Integrated Water Project - Town of Rousse |46.800.000 |35.100.000 |24.570.000 |- |24.570.000 |- | | | 2005BG16PPE006 |Integrated Water Project - Town of Kyustendil |21.200.000 |15.900.000 |9.540.000 |- |9.540.000 |- | | |Sub-total |30 |1.082.597.492 |788.440.001 |180.461.416 |56.124.273,54 |655.611.273 |142.591.806 | | Wastewater treatment plant | 2000RO16PPA001 |Technical assistance for the completion and upgrading of the Bucharest wastewater treatment plant |1.810.000 |1.357.500 |- |- |1.086.000 |590.824 | | | 2000RO16PPE009 |Danutoni: Wastewater Treatment Plant (Valea Jiului) |9.680.000 |7.260.000 |- |- |6534000 |2.737.343 | | | 2004RO16PPE003 |Bucharest Wastewater Treatment Plant Rehabilitation - Stage I |108.300.000 |70.395.000 |23.197.502 |7.039.500 |59.835.750 |7.039.500 | | | 2000BG16PPE001 |Rehabilitation , upgrade/extension of the Sofia wastewater treatment plant water line |58.500.000 |43.875.000 |25.422.852 |- |25.422.852 |- | | | 2000BG16PPE003 |Construction of Wastewater Treatment Plants for Stara Zagora, Haskovo and Dimitrovgrad |43.399.688 |32.549.766 |- |4.717.747 |29.294.789 |7.972.724 | | | 2001BG16PPE005 |Waste water treatment plant Gorna Oriahovitza, Liaskovetz, Dolna Oriahovitza |16.633.945 |12.475.459 |- |2.321.303 |11.227.913 |6.456.425 | | | 2001BG16PPE006 |Waste water treatment plant Pazardijk |19.110.968 |12.422.129 |- |1.356.389 |11.179.916 |4.091.985 | | | 2001BG16PPE008 |Waste water treatment plant Blagoevgrad |12.580.465 |8.806.326 |- |1.081.930 |7.925.693 |1.962.563 | | | 2002BG16PPE009 |Waste water treatment iplant Bourgas - Meden Rudnik |10.206.220 |7.654.665 |765.467 |- |6.889.199 |765.467 | | | 2002BG16PPE010 |Waste water treatment plant Targovishte |15.235.915 |11.426.936 |1.142.693 |- |10284242 |1.142.694 | | | 2002BG16PPE011 |Waster water treatment plant - Lovech |18.396.575 |13.797.431 |1.379.743 |- |12.417.688 |1.379.743 | | | 2002BG16PPE012 |Waste water treatment plant - Montana |16.741.237 |12.555.928 |1.255.593 |- |11.300.335 |1.255.593 | | | 2002BG16PPE013 |Waste water treatment plant - Smolian |24.471.022 |18.353.266 |1.835.327 |- |16.517.939 |1.835.327 | | | 2002BG16PPE014 |Waste water treatment plant - Sevlievo |13.987.623 |10.490.717 |1.049.072 |- |9.441.646 |1.049.072 | | | 2002BG16PPE015 |Waste water treatment plant - Popovo |11.860.433 |8.895.326 |889.533 |- |8.005.794 |889.533 | | | 2002BG16PPE017 |Balchik : Waste water treatment plant |21.589.225 |16.191.919 |1.619.192 |- |14.572.727 |1.619.192 | | | 2002BG16PPE018 |Shumen : Waste water treatment plant |30.130.000 |22.597.500 |2.259.750 |- |19.501.207 |2.259.750 | | | 2002BG16PPA002 |Technical Assistance for the preparation of a water sector investment project for the Municipality of Sofia |1.500.000 |1.125.000 |225.000 |89.491,50 |1.125.000 |539.492 | | |Sub-total |18 |434.133.316 |312.298.868 |61041724 |16.606.361 |262.562.690 |43.587.226 | |

Solid waste | 2000RO16PPE001 |Piatra-Neamt Waste Management Programme |13.846.000 |10.384.500 |- |- |10.384.500 |2.076.900 | | | 2001RO16PPE014 |Integrated municipal waste management in Ramnicu Valcea |14.673.100 |11.004.825 |1.100.482 |1.100.483 |11.004.825 |2.200.965 | | | 2001RO16PPE017 |Dambovita County: Rehabilitation of solid waste collection, transportation, treatment and landfill |25.894.000 |19.420.500 |- |- |15536400 |1.942.050 | | | 2002RO16PPE024 |Intgrated waste management system in Teleorman Country |21.406.000 |16.054.500 |- |- |12.843.600 |1.605.450 | | | 2003RO16PPE027 |Integrated Waste Management System in Galati and Surroundings |23.000.000 |17.250.000 |1725000 |1.725.000 |13.800.000 |1.725.000 | | | 2004RO16PPE007 |Regional Waste Landfill in Bacau |20.000.000 |15.000.000 |12.000.000 |- |12.000.000 |- | | | 2005RO16PPE001 |Integrated Managemant of Solid Waste and Sludge from WWTP in Arges County |24.500.000 |18.375.000 |14.700.000 |- |14.700.000 |- | | | 2000BG16PPE002 |Set of 6 Regional Waste Disposal Sites (Montana, Ruse, Pernik, Sevlievo, Silistra, Sozopol) |60.577.513 |45.433.135 |- |14.815.874 |40.889.821 |23.902.501 | | | 2003BG16PPE019 |Kardjali: Regional Waste Management Center |14.547.162 |10.910.372 |- |- |8.728.297 |1.091.037 | | |Sub-total |9 |218.443.775 |163.832.832 |29525482 |17.641.357 |139.887.443 |34.543.903 | |

Air quality | 2001BG16PPE004 |Maritsa East 2 TPP-EAD- Construction of flue gas desulphurisation plants for Units 5 & 6 | 72.330.000 |36.165.000 |7.233.000 | |32.548.500 |3.616.500 | | Horizontal | 2003BG16PPA004 |Technical Assistance for institutional strengthening of the Ministry of Environment and Water for the ISPA pipeline management |15.921.000 |12.896.000 |1.289.600 |2.944.198,15 |11.606.400 |5.523.398 | | | 2003RO16PPA013 |Technical assistance for a project preparation in the environment sector |12.750.000 |9.945.000 |994.500 |- |8.950.500 |1.989.000 | | | 2005RO16PPA001 |Technical assistance for project preparation in the environmental sector in Romania |25.000.000 |12.500.000 |8.750.000 |- |8.750.000 |- | | |Sub-total |3 |53.671.000 |35.341.000 |11.034.100 |2.944.198 |29.306.900 |7.512.398 | | |Total Environment |64 |2.021.031.383 |1.455.900.551 |289.295.722 |109.694.490 |1.210.854.471 |255.243.503 | | |Transport | | | | | | | | | Road | 2000RO16PPA002 |Technical assistance for revision of feasibiliy study and preparation of tender documents, technical project, road section Drobeta |1.466.060 |1.099.545 |- |- |1.099.545 |900.000 | | | 2000RO16PPT002 |Widening to 4 lanes of the National road n° 5 Bucharest-Giurgiu |52.648.050 |34.747.713 |- |- |34.747.696 |16.294.878 | | | 2000RO16PPT003 |Construction of the Bucharest-Cernavoda motorway |95.616.000 |71.712.000 |- |15.828.686,54 |49.372.000 |26.928.687 | |

| 2000RO16PPT004 |Rehabilitation of the national road DN6- Section Craiova-Drobeta Turnu Severin |93.442.503 |70.081.877 |- |- |67.270.000 |36.867.773 | | | 2001RO16PPT005 |Construction of the Sibiu Motorway By-Pass |70.261.600 |52.696.200 |- |- |41.730.000 |20.978.763 | | | 2001RO16PPT006 |Rehabilitation of section Drobeta Turnu Severin-Lugoj on the DN 6 road |155.578.840 |116.684.130 |35.480.000 |- |104.100.000 |13.801.162 | | | 2004RO16PPT008 |Construction of the Deva-Orastie Motorway By-pass in Romania |151.646.000 |113.734.500 |20.000.000 |11.373.450 |95.568.302 |11.373.450 | | | 2004RO16PPA002 |Technical Assistance for the preparation of road projects for the Cohesion Fund |15.834.500 |13.459.325 |10.767.460 |- |10.767.460 |- | | | 2005RO16PPA003 |Technical assistance for preparation of road projects for the Structural Funds |12.751.000 |9.563.250 |4.536.250 |- |4.536.250 |- | | | 2005RO16PPT001 |Lugoj By-pass |23.750.000 |17.812.500 |8.521.890 |- |8.521.890 |- | | | 2000BG16PPT001 |Transit roads rehabilitation Project III in Bulgaria |40.000.000 |30.000.000 |3.000.000 |9.457.231,42 |27.000.000 |18.907.395 | | | 2001BG16PPT004 |Construction of Liulin Motorway, Sofia Ring Road - Daskalovo Road junction |148.450.000 |111.337.500 |12.356.667 |- |89.070.000 |11.133.750 | | |Sub-total |12 |861.444.553 |642.928.540 |94.662.267 |36.659.368 |533.783.143 |157.185.857 | |

Rail | 2000RO16PPT001 |Rehabilitation of the section Bucharest-Baneasa-Fetesti of the Bucharest-Constanta railway line |308.972.588 |231.729.441 |24.190.000 |29.469.895 |231.729.441 |52.642.839,37 | | | 2001RO16PPA008 |TA for rehabilitation of the railway HU border-Simeria |800.000 |600.000 |- |227.625 |579.375 |287.625 | | | 2003RO16PPT007 |Rehabilitation of the railway section Campina-Predeal on the Bucharest-Brasov railway line |199.485.770 |149.614.328 |- |14.961.432 |104.730.029 |14.961.432 | | | 2004RO16PPA003 |Technical Assistance for the preparation of rail projects for the Cohesion Fund |22.900.000 |19.465.000 |15.572.000 |- |15.572.000 |- | | | 2001BG16PPT003 |Plovdid-Svilengrad- electrification and upgrading of Corridors Iv and X |340.000.000 |153.000.000 |13.950.000 |15.300.000 |119.137.500 |30.600.000 | | | 2005BG16PPA002 |Technical assistance for modernization of Vidin-Sofia railway line |4.040.000 |3.434.000 |2.747.200 |- |2.747.200 |- | | | 2005BG16PPA004 |Technical assistance for the rehabilitation of railway infrastructure along sections of the Plovdiv-Burgas and Mezdra-Gorna Oryahovitsa railway lines |10.480.000 |8.908.000 |7.126.400 |- |7.126.400 |- | | | 2005HR16PPT001 |Vinkovci to Tovarnik to State Border Railway Rehabilitation |75.761.000 |28.789.180 |12.300.000 |- |12.300.000 |- | | |Sub-total |8 |962.439.358 |595.539.949 |75.885.600 |59.958.952 |493.921.945 |98.491.896,37 | |

Road and rail | 2004RO16PPT009 |Road and rail to the second bridge over Danube at Calafat-Vidin (Romanian side) |47.950.000 |35.962.500 |25.173.750 |- |25.173.750 |- | | | 2005RO16PPT002 |Reconstruction of rail and road infrastructure sections damaged by floods in July and August 2005 |57.750.000 |49.087.500 |24.543.750 |- |24.543.750 |- | | | 2001BG16PPA001 |Danube bridge technical assistance for recruitment of consultants |5.880.000 |4.998.000 |- | - |3.998.400 |3.998.400 | | | 2004BG16PPT005 |Construction:Cross-border,Road/Rail Bridge-Danube River/Vidin-Calafat |225.806.452 |70.000.000 |6.608.000 |7.000.000 |56.000.000 |7.000.000 | | |Sub-total |4 |337.386.452 |160.048.000 |56.325.500 |7.000.000 |109.715.900 |10.998.400 | | Inland waterways | 2002RO16PPA011 |Technical Assistance for the improvement of navigation conditions on the Danube |1.640.000 |1.230.000 |- |384.000 |1.230.000 |984.000 | | | 2005RO16PPA002 |Technical Assistance for the improvement of navigation conditions on the Romanian-Bulgarian common sector of the Danube and accompanying studies |2.750.000 |2.337.500 |1.870.000 |- |1.870.000 |- | | |Sub-total |2 |4390000 |3567500 |1.870.000 |384.000 |3.100.000 |984.000 | |

Airport | 2000BG16PPT002 |Sofia Airport - Lot B1 New Terminal and Related Infrastructure | 135.135.135 |50.000.000 |- |15.344.390,10 |45.000.000 |35.051.249 | | Horizontal | 2004RO16PPA001 |Technical Assistance for the elaboration of the General Transport Master Plan | 5.920.000 |5.032.000 |3.522.400 |- |3.522.400 |- | | |Total Transport |28 |2.306.715.498 |1.457.115.989 |232.265.767 |119.346.710 |1.189.043.388 |302.711.402 | | |Technical assistance | | | | | | | | | EDIS | 2001RO16PPA009 |Titre Technical Assistance to strengthen the capacity of ISPA implementing agencies to implement ISPA measures-Stage I - in |589.753 |589.753 |- |- |589.753 |471.802 | | | 2002BG16PPA003 |Technical assistance for the preparation of EDIS |1.023.555 |1.023.555 |178.511 |50.800 |892.555 |503.522 | | |Sub-total |2 |1.613.308 |1.613.308 |178.511 |50.800 |1.482.308 |975.324 | | Horizontal | 2005BG16PPA001 |Support for the organization of the Monitoring Committees in 2005-2006 | 20.000 |20.000 |10.000 |8.000 |10.000 |8.000 | | |Total Technical Assistance |3 |1.633.308 |1.633.308 |188.511 |58.800 |1.492.308 |983.324 | | |TOTAL |95 |4.329.380.189 |2.914.649.848 |521.750.000 |229.100.000 |2.401.390.167 |558.938.230 | |

[1] This includes commitments for projects decided in 2005 as well as tranches committed for projects decided in previous years.

[2] This includes commitments for projects decided in 2005 as well as tranches committed for projects decided in previous years.

[3] Council Regulation (EC)N° 1266/1999 of 21 June 1999 on co-ordinating aid to the applicant countries in the framework of the pre-accession strategy.