2006/658/EC: Commission Decision of 29 September 2006 conferring management of aid on implementing agencies for pre-accession measures in agriculture and rural development in Croatia in the pre-accession period
Date: 2006-09-29
Institutions: European Commission
Subjects: Croatia, accession to the European Union, aid programme, aid to agriculture, management, rural development

30.9.2006

EN

Official Journal of the European Union

L 271/83

COMMISSION DECISION

of 29 September 2006

conferring management of aid on implementing agencies for pre-accession measures in agriculture
and rural development in Croatia in the pre-accession period

(2006/658/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty
Community,

establishing the European

Having regard to the Council Regulation (EC) No 1266/1999 of
21 June 1999 on co-ordinating aid to the applicant countries in
the framework of
the pre-accession strategy and amending
Regulation (EEC) No 3906/1989 (1), and in particular Article
12(2) thereof,

Having regard to the Council Regulation (EC) No 1268/1999
for pre-accession
of 21 June 1999 on Community support
measures
in the
agriculture
applicant countries of central and eastern Europe in the pre-
accession period (2), and in particular Article 4(5) and (6)
thereof,

and rural development

for

Whereas:

(1)

(2)

(3)

The Rural Development Programme for Croatia was
approved by Commission Decision C(2006) 301 of 8
February 2006, in accordance with Article 4(5) and (6)
of Regulation (EC) No 1268/1999.

the European Community,

The Croatian government and the Commission, acting on
behalf of
signed on 29
December 2005 the Multi-annual Financing Agreement
(hereinafter MAFA) laying down the technical, legal and
administrative framework for the execution of the Sapard
Programme.

The Republic of Croatia notified the Commission of the
completion of all the necessary internal procedures for its
conclusion on 6 April 2006, what is the date of entry
into force of the MAFA.

(1) OJ L 161, 26.6.1999, p. 68.
(2) OJ L 161, 26.6.1999, p. 87. Regulation as last amended by Regu-

lation (EC) No 2112/2005 (OJ L 344, 27.12.2005, p. 23).

Regulation (EC) No 1266/1999 provides that the ex-ante
approval requirement referred to in Article 12(1) of
Regulation (EC) No 1266/1999 may be waived on the
the national and
basis of a case-by-case analysis of
sectorial
capacity,
programme/project management
financial control procedures and structures regarding
(EC) No
public
2222/2000 (3) provides
the
carrying out of the said analysis.

finance. Commission Regulation

for detailed rules

for

The Competent Authority of Croatia has appointed the
Directorate for Market and Structural Support in Agri-
culture, an organisational unit of the Ministry of Agri-
culture, Forestry and Water Management, acting as the
Sapard Agency. It will be responsible for implementing
the following measures: No 1 ‘Investments into Agri-
cultural Holdings’ and No 2 ‘Improving the Processing
and Marketing of Agricultural and Fishery Products’ as
defined in the Rural Development Programme that was
approved by Decision C(2006) 301; whereas
the
National Fund, within the Ministry of Finance, has been
appointed for the financial functions it is due to perform
in the framework of the implementation of the Sapard
Programme.

Pursuant to Regulation (EC) No 1266/1999 and Regu-
lation (EC) No 2222/2000, the Commission analysed the
national and sectorial programme/project management
financial control procedures and structures
capacity,
the
regarding public finance and considers that,
implementation
aforementioned measures,
the
Croatia complies with the provisions of Articles 4 to 6
and of the Annex to the Regulation (EC) No 2222/2000,
with the minimum conditions set out in the Annex to
the Regulation (EC) No 1266/1999.

for

of

In particular, the Sapard Agency has implemented the
following key accreditation criteria satisfactorily: written
procedures, segregation of duties, pre-project approval
and
procedures,
payment
accounting procedures and internal audit.

pre-payment

checks,

On 14 March 2006 the Croatian Authorities provided
the list of eligible expenditure in conformity with
the MAFA. This list was
Article 4(1), Section B of
partially modified by letter of 11 July 2006. The
Commission is called upon to take a decision in this
respect.

(5)

(6)

(7)

(8)

(3) OJ L 253, 7.10.2000, p. 5.

L 271/84

EN

Official Journal of the European Union

30.9.2006

(9)

(10)

The National Fund within the Ministry of Finances has
implemented the following criteria satisfactorily for the
financial functions it is due to perform in the framework
the Sapard programme for
of
receipt of
Croatia: audit
funds, disbursement to the Sapard Agency and internal
audit.

the implementation of

treasury management,

trail,

It is therefore appropriate to waive the ex-ante approval
requirement referred to in Article 12(1) of Regulation
(EC) No 1266/1999 and to confer on the Sapard
Agency and on the National Fund of Croatia the
management of aid on a decentralised basis.

(11) However,

since the verifications carried out by the
Commission for measure No 1 ‘Investments into Agri-
cultural Holdings’ and No 2 ‘Improving the Processing
and Marketing of Agricultural and Fishery Products’ are
based on a system that is not yet fully operating with
regard to all relevant elements, it is therefore appropriate
to confer the management of the Sapard Programme on
the Sapard Agency and on the Ministry of Finances,
National Fund, according to Article 3(2) of Regulation
(EC) No 2222/2000, on a provisional basis.

(12)

(13)

the Sapard is only
Full conferral of management of
envisaged after further verifications,
in order to ensure
that the system operates satisfactorily, have been carried
out and after any recommendations the Commission
may issue, with regard to the conferral of management
of aid on the Sapard Agency, in the subordination of the
Ministry of Agriculture, Forestry and Water Management
and on the Ministry of Finances, National Fund, have
been implemented.

In order to take into account the requirements of Article
8(1)b, Section A of the MAFA, the expenditures pursuant
of
this Decision shall be eligible for Community co-
finance only if incurred by beneficiaries from the date
of this Decision or, if later, the date of the instrument
making them a beneficiary for the project in question,
except that for feasibility and related studies, provided in
all cases it is not paid by the Sapard Agency prior to the
date of this Decision.

HAS DECIDED AS FOLLOWS:

Article 1

The requirement of ex ante approval by the Commission of
project
for measures No 1
contracting
‘Investments into Agricultural Holdings’ and No 2 ‘Improving
the Processing and Marketing of Agricultural and Fishery

selection and

Products’ by Croatia for in Article 12(1) of Regulation (EC)
No 1266/1999 is hereby waived.

Article 2

Management of the Sapard programme is conferred on a provi-
sional basis:

1. Directorate for Market and Structural Support in Agriculture,
an organisational unit of the Ministry of Agriculture, Forestry
and Water Management, acting as the Sapard Agency of
Croatia, Avenija grada Vukovara 269D, 10000 Zagreb, for
the implementation of measures No 1 ‘Investments into
Agricultural Holdings’ and No 2 ‘Improving the Processing
and Marketing of Agricultural and Fishery Products’ as
defined in the Rural Development Programme that was
approved by Decision C(2006) 301.

2. The National Fund within the Ministry of Finances, Katan-
čičeva 5, 10000 Zagreb, for the financial functions it is due
to perform in the framework of the implementation of the
Sapard programme for Croatia.

Article 3

Expenditures pursuant
to this Decision shall be eligible for
Community co-finance only if incurred by beneficiaries from
the date of this Decision or, if later, the date of the instrument
making them a beneficiary for the project in question, except
that for feasibility and related studies, provided in all cases it is
this
not paid by the Sapard Agency prior to the date of
Decision.

Article 4

Without prejudice to any decisions granting aid under the
Sapard programme to individual beneficiaries, the rules for eli-
gibility of expenditure proposed by Croatia by letter No ‘Klasa:
910-01/05–01/8, Urbroj: 513-05-06/06-28’ of 14 March 2006
and registered in the Commission on 21 March 2006 under No
08347, as modified by letter No ‘Klasa: 910-01/06–01/221,
Urbroj: 513-05-06/06-9’ of 23 June 2006 and registered in
the Commission on 11 July 2006 under No 20627, shall apply.

Done at Brussels, 29 September 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission