Commission staff working document - Annex to the Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Sapard annual Report : year 2007 {COM(2009) 231 final}
Date: 2009-05-20
Institutions: European Commission
Subjects: Central and Eastern Europe, EU aid, activity report, aid to agriculture, rural development

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.5.2009 
SEC(2009) 660 

COMMISSION STAFF WORKING DOCUMENT 

Annex to the 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

SAPARD ANNUAL REPORT – YEAR 2007 

{COM(2009) 231 final} 

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ANNEX A.1 – Financial Execution 

Table 1 – Execution of commitment appropriations available in the 2006 budget 
by 31.12.2006 (million EUR) 

Budget 
lines  

Budget 
2006 

transfers 

total 
available 

executed 

1 

2 

3 

4 

5 

05.050101 

299,8 

299,8 

299,8 

05.050102 

05.010403 

TOTAL  

- 

0,2 

300 

- 

0 

- 

0,2 

300 

- 

0 

299,8 

99,9 

7 

% 

6=5/4 

100 

- 

0 

Table 2 – Execution of payment appropriations available in the 2006 budget 
by 31.12.2006 (million EUR) 

Budget 
lines  

Budget 
2006 

transfers 

total 
available 

executed 

1 

2 

3 

4 

5 

% 

6=5/4 

05.050101 

310,0 

-109,0 

201,0 

201,0 

100,0 

05.050102 

300,0 

-287,0 

13,0 

12,7 

97,7 

05.010403 

0,2 

0,2 

0 

TOTAL  

610,2 

-396,0 

214,2 

213,7 

0 

99,8 

7 

execution of the programmes  
slowed down in RO and BG 
during 2006 

nearly all new Member States 
had reached or were close to 
100% absorption, the programme 
of CZ was closed in 2006 

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ANNEX A.1 – Financial Execution 

Table 3 – Commitments, payments and RAL by 31.12.2006 

Commitments 

Payments from the Commission 

in % of 
available 
funds 

"Reste à liquider" (RAL) 

Country 

Total AFAs 
2000-2006 

Total 
payments 
made 
until 
31.12.2005 

Payments
made 
in 2006 

Payments 
made 
since start 

1 

2 

3 

4 

5=3+4 

Bulgaria 

Romania 

Croatia 

Total 
05.050101 

444.748.370 

158.226.816 

53.826.377 

212.053.193 

1.159.785.692 

385.443.809 

147.193.623 

532.637.432 

25.000.000 

0 

0 

0 

1.629.534.062 

543.670.625 

201.020.000 

744.690.625 

6=5/2 

47,7 

45,9 

0,0 

45,7 

7=2-5 

232.695.177 

627.148.260 

25.000.000 

884.843.437 

Commitments 

Payments from the Commission 

in % of 
available 
funds 

"Reste à liquider" (RAL) 

Country 

Total AFAs 
2000-2003 

Total 
payments 
made 
until 
31.12.2005 

Payments
made 
in 2006 

Payments 
made 
since start 

1 

2 

3 

4 

5=3+4 

Czech Rep. 

92.787.704 

88.148.318 

4.630.161 

92.778.479 

51.043.119 

48.490.963 

0 

48.490.963 

160.039.127 

144.257.080 

7.780.091 

152.037.171 

125.448.234 

119.175.822 

0 

119.175.822 

91.883.502 

86.964.506 

324.820 

87.289.326 

709.409.786 

673.939.295 

Slovenia 

26.650.758 

25.318.219 

76.915.845 

73.070.052 

0 

0 

0 

673.939.295 

25.318.219 

73.070.052 

1.334.178.075 

1.259.364.255 

12.735.072 

1.272.099.327 

Estonia 

Hungary 

Lithuania 

Latvia 

Poland 

Slovakia 
Total 
05.050102 

6=5/2 

100,0 

95,0 

95,0 

95,0 

95,0 

95,0 

95,0 

95,0 

95,3 

7=2-5 

9.225 

2.552.156 

8.001.956 

6.272.412 

4.594.176 

35.470.491 

1.332.539 

3.845.793 

62.078.748 

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ANNEX A.2 – Financial Execution 

Table 1 – Execution of commitment appropriations available in the 2007 budget 
by 31.12.2007 (million EUR) 

Budget 
lines  

1 

05.050101 

05.050102 

05.010403 

TOTAL  

Budget 
2007 

transfers 

total 
available 

executed 

% 

2 

- 

- 

0,5 

0,5 

3 

- 

- 

- 

0 

4 

- 

- 

0,5 

0,5 

5 

- 

- 

0 

0 

6=5/4 

7 

- 

- 

0 

0 

Table 2 – Execution of payment appropriations available in the 2007 budget 
by 31.12.2007 (million EUR) 

Budget 
lines  

Budget 
2007 

transfers 

total 
available 

executed 

% 

1 

2 

3 

4 

5 

6=5/4 

7 

05.050101 

190,4 

+79,5 

269,9 

269,9 

100 

05.050102 

63,0 

-47,8 

15,2 

15,2 

100,0 

05.010403 

0,5 

- 

0,5 

0 

0 

TOTAL  

253,9 

31,7 

285,1 

285,1 

100,0 

execution of the programmes of BG 
and RO showed an above average 
progress rate during 2007. 

programmes of EE, HU, SI and SK 
were closed in 2007 

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ANNEX A.2 – Financial Execution 

Table 3 – Commitments, payments and RAL by 31.12.2007 

Commitments 

Payments from the Commission 

in % of 
available 
funds 

"Reste à liquider" (RAL) 

Country 

Total AFAs 
2000-2006 

Total 
payments 
made 
until 
31.12.2006 

Payments
made 
in 2007 

Payments 
made 
since start 

1 

2 

3 

4 

5=3+4 

Bulgaria 

Romania 

Croatia 

Total 
05.050101 

444.748.370 

212.053.193 

40.024.082 

252.077.275 

1.159.785.692 

532.637.432 

222.417.803 

755.055.235 

25.000.000 

0 

7.418.115 

7.418.115 

1.629.534.062 

744.690.625 

269.860.000  1.014.550.625 

6=5/2 

56,7 

65,1 

29,7 

62,3 

7=2-5 

192.671.095 

404.730.457 

17.581.885 

614.983.437 

Commitments 

Payments from the Commission 

in % of 
available 
funds 

RAL or de-commitment* at 
closure 

Country 

Total AFAs 
2000-2003 

Total 
payments 
made 
until 
31.12.2006 

Payments
made 
in 2007 

Payments 
made 
since start 

1 

2 

3 

Czech Rep. 

92.787.704 

92.778.479 

4 

0 

5=3+4 

92.778.479 

Estonia 

Hungary 

Lithuania 

Latvia 

Poland 

51.043.119 

48.490.963 

2.156.910 

50.647.873 

160.039.127 

152.037.171 

7.925.037 

159.962.208 

125.448.234 

119.175.822 

91.883.502 

87.289.326 

709.409.786 

673.939.295 

0 

0 

0 

119.175.822 

87.289.326 

673.939.295 

Slovenia 

26.650.758 

25.318.219 

1.330.374 

26.648.593 

76.915.845 

73.070.052 

3.834.419 

76.904.471 

6=5/2 

100,0 

99,2 

100,0 

95,0 

95,0 

95,0 

100,0 

100,0 

1.334.178.075 

1.272.099.327 

15.246.740 

1.287.346.067 

96,5 

Slovakia 
Total 
05.050102 

7=2-5 

9.225* 

395.246* 

76.919* 

6.272.412 

4.594.176 

35.470.491 

2.165* 

11.374* 

46.832.008 

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ANNEX B 

Table B.1 – Bulgaria 

Bulgaria - EU Allocation, Contracted and Paid amount to Final Beneficiaries
since the Start of the Programme (Million EUR.  Situation at 31.12.2007)

500

450

400

350

300

250

200

150

100

50

0

s
n
o

i
l
l
i

M

n
o

i
t
u
b
i
r
t
n
o
c
U
E
f
o

t
n
u
o
m
A

31/12/1999

30/04/2000

31/08/2000

31/12/2000

30/04/2001

31/08/2001

31/12/2001

30/04/2002

31/08/2002

31/12/2002

30/04/2003

31/08/2003

31/12/2003

30/04/2004

31/08/2004

31/12/2004

30/04/2005

31/08/2005

31/12/2005

31/04/2006

31/08/2006

31/12/2006

31/04/2007

31/08/2007

31/12/2007

EU funds allocated 

Contracted amount to final beneficiaries

Payments to final beneficiaries

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ANNEX B 

Table B.2 – Romania 

Romania - EU Allocation, Contracted and Paid amount to Final Beneficiaries
 since the Start of the Programme (Million EUR.  Situation at 31.12.2007)

1.200

1.100

1.000

900

800

700

600

500

400

300

200

100

0

s
n
o

i
l
l
i

M

n
o

i
t
u
b
i
r
t
n
o
c
U
E
f
o

t
n
u
o
m
A

31/12/1999

30/04/2000

31/08/2000

31/12/2000

30/04/2001

31/08/2001

31/12/2001

30/04/2002

31/08/2002

31/12/2002

30/04/2003

31/08/2003

31/12/2003

30/04/2004

31/08/2004

31/12/2004

30/04/2005

31/08/2005

31/12/2005

31/04/2006

31/08/2006

31/12/2006

31/04/2007

31/08/2007

31/12/2007

EU funds allocated 

Contracted amount to final beneficiaries

Payments to final beneficiaries

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ANNEX B 

Table B.3 – Contracted projects 

Number of Projects contracted with final 
beneficiaries (all countries)

24.457

25.000

20.000

15.000

10.000

5.000

1.685 1.531

866 1.808

906

562

2.640

3.128

4.582

29

0

CZ EE LT LV SK SI PO HU BG RO HR

Table B.4 – Amounts paid to projects 

Amounts Paid to Projects declared 
to the Commission (all countries 
Million EUR)

770

709

160

125

81

93

51

235

82

27

1

CZ

EE

HU

LV

LT

PO

SK

SL

BG RO

HR

800

700

600

500

400

300

200

100

0

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ANNEX C – Bulgaria, Romania, Croatia 

Table C.1 – Allocations for all countries 

Distribution of Sapard Allocations 
between Measures for all 
Countries (%) 

34%

28%

23%

8%

2%

2%

3%

0%

Table C.2 – Allocations for eight new Member States 

Distribution of Sapard Allocations 
between Measures for 8 New 
Member States (%)  

32%

30%

23%

0%

2%

0%

4%

9%

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35%

30%

25%

20%

15%

10%

5%

0%

35%

30%

25%

20%

15%

10%

5%

0%

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ANNEX C - Bulgaria, Romania, Croatia 

Table C.3 – Allocations for BG, RO, HR 

Distribution of Sapard 
Allocations between Measures 
for Bulgaria, Romania and 
Croatia (%)  

35%

27%

22%

40%

35%

30%

25%

20%

15%

10%

5%

0%

7%

4% 3% 0%

2%

Table C.4.1 – Distribution of funds for BG 

Distribution between measures of 
Funds Allocated to the Programme of 
Bulgaria (2000-2006) (%)

37%

31%

12%

10%

9%

0%

1%

0%

Farm

Pr ocessing and

Diver sif icat ion

Set t ing up

Renovat ion of

Rural

For est ry and

Ot hers

invest ment s

market ing

producer  gr oups

villages

inf r ast ruct ure

Af f orest r at ion

40%

35%

30%

25%

20%

15%

10%

5%

0%

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ANNEX C - Bulgaria, Romania, Croatia 

Table C.4.2 – Measure "Farm investments" for BG 

Amouns Contracted in Bulgaria under 
the Measure "Farm Investments" (%)

Arable Crops
29%

Others
2%

Animal 
Production and 
Products
39%

Wine
13%

Fruit, Vegetables 
and Berries
17%

Table C.4.3 – Measure "Processing and Marketing" for BG 

Amounts Contracted in Bulgaria under 
the Measure "Processing and 
Marketing" (%)

Fishery
4%

Fruit and 
vegetables
31%

Meat Products 
37%

Wine
15%

Milk and dairy 
products
13%

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50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

ANNEX C - Bulgaria, Romania, Croatia 

Table C.5.1 – Distribution of funds for RO 

Distribution between measures of 
Funds Allocated to the Programme of 
Romania (2000-2006) (%)  

45%

25%

17%

5%

0%

5%

3%

Far m

Processing and

Diversif icat ion

Set t ing up of

Rur al

Forest r y and

Ot her s

Invest ment s

mar ket ing

pr oducer groups

inf rast r uct ur e

af f or est rat ion

Table C.5.2 – Measure "Farm investments" for RO 

Amounts Contracted in Romania under 
the Measure "Farm Investments" (%)

Wine
3%

Animal 
Production and 
Products
47%

Arable crops
44%

Fruit and 
vegetables and 
Berries
6%

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ANNEX C - Bulgaria, Romania, Croatia 

Table C.5.3 – Measure "Processing and Marketing" for RO 

Amounts Contracted in Romania under 
the Measure "Processing and 
Marketing" (%)

Arable crops
12%

Textile plants
0%

Fishery
3%

Wine
8%

Fruits and 
vegetables
10%

Meat Products
53%

Milk and dairy 
products
14%

Table C.5.4 – Measure "Rural infrastructure" for RO 

Amounts Contracted in Romania under the 
Measure "Rural Infrasctructure" (%)

Works for floods 
prevention and 
protection
6%

Sewerage in 
centralised 
system in rural 
areas
13%

Drinkable water 
supply in 
centralized 
network in rural 
areas
31%

Roads in rural 
areas
50%

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70%

60%

50%

40%

30%

20%

10%

0%

ANNEX C - Bulgaria, Romania, Croatia 

Table C.6.1 – Distribution of funds for HR 

Distribution between measures of 
Funds Allocated to the Programme of 
Croatia (2006) (%) 

66%

34%

Far m Invest ment s

Processing & Mar ket ing

Table C.6.2 – Measure "Farm investments" for HR 

Amounts Contracted in Croatia 
under the Measure "Farm 
Investments" (%)

Animal 
Production and 
Products
50%

Fruit, 
Vegetables and 
Berries
40%

Arable Crops
10%

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ANNEX C - Bulgaria, Romania, Croatia 

Table C.6.3 – Measure "Processing and Marketing" for HR 

Amounts Contracted in Croatia under the 
Measure "Processing and Marketing" (%)

Fruit and 
Vegetable 
processing plants
21%

Fishery
29%

Meat Products
33%

Milk and Dairy 
Products
17%

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ANNEX D – Modifications of Sapard programmes 

Bulgaria 

20.10.2000

Croatia 
08.02.2006

21.05.2002 

27.05.2003 

19.10.2007 

14.08.2008 

Czech Rep.  Estonia  Hungary 

Latvia 

Lithuania 

Poland 

Romania 

Slovakia 

Slovenia 

26.10.2000 17.11.2000 18.10.2000  25.10.2000 27.11.2000 18.10.2000 12.12.2000 17.11.2000  27.10.2000 

26.02.2002  19.12.2002 26.11.2002  28.11.2001  23.12.2002 22.04.2002 11.07.2002 5.03.2002  24.11.2003 

12.04.2002  13.02.2004 21.08.2003  31.07.2002  09.09.2003 05.12.2002 27.5.2003  31.07.2002  20.7.2005 

23.12.2004 

31.07.2002  12.07.2005 25.02.2004  18.02.2003  27.05.2005 11.07.2003 01.08.2003 20.03.2003 

07.06.2005 

23.12.2002 

19.09.2005  17.07.2003 

01.08.2003 17.09.2004 21.08.2003 

09.09.2005 

14.07.2005 

13.02.2004 

13.02.2004 04.07.2005 13.02.2004 

24.03.2006 

23.12.2005 

14.07.2005 

03.11.2004 11.04.2006 09.09.2005 

05.07.2006 

27.12.2006 

26.06.2008 

21.11.2008 

05.07.2006

27.12.2006

Commission Decision approving the 
Sapard programme on 
1ST  modification  of  the  programme 
adopted by the Commission on 
2ND  modification  of  the  programme 
adopted by the Commission on 
3RD  modification  of  the  programme 
adopted by the Commission on 
4TH  modification  of  the  programme 
adopted by the Commission on 
5TH  modification  of  the  programme 
adopted by the Commission on 
6TH  modification  of  the  programme 
adopted by the Commission on 
7TH  modification  of  the  programme 
adopted by the Commission on 
8TH  modification  of  the  programme 
adopted by the Commission on 
9TH  modification  of  the  programme 
adopted by the Commission on 
10TH modification of the programme 
adopted by the Commission on 

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ANNEX E – Sapard Conferral of Management 

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ANNEX F - Sapard irregularity reports by Member States 

Number of first communications 

Reporting 
Country 

2002-03 

2004

2005

2006

2007 Grand total

Year 

BG 

CZ 

EE 

HU 

LT 

LV 

PL 

RO 

SI 

SK 

Grand Total 

1

3

4

3

1

22

34

18

4

4

8

3   

3

51

69

3

163

42

3

5

2

1

32

56

1

3

145

5

1

1

13

3

7

19

77

5

2

133

15

7

4

24

3

4

24

81

3   

1

166

18 

80

15

15

50

13

15

129

284

31

9

641

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ANNEX G – Implementation of measures of the Sapard programmes of Bulgaria, 
Romania and Croatia. 

Bulgaria1 

In 2006, the EU committed € 82,4 million to  BG under the AFA 2006. This brought the total 
of EU funds committed for BG under the AFAs 2000–2006 up to € 444,7 million. In 2006 the 
EC paid €53,8 million to BG and at 31 December 2006 total EU payments amounted to €212 
million, or 47,7% of the EU funds available to the programme. 

In  2007  the  EC  paid  a  further  €40  million  to  BG,  bringing  total  payments  to  €252  million, 
representing  56,7%  of  the  EU  funds  allocated  to  the  programme.  Despite  efforts  made  to 
improve  absorption  of  funds  under  the  programme,  such  as  extension  of  AFAs  and  re-
allocation  of  funds  over  measures,  an  amount  of  €27,7  million  had  to  be  de-committed 
according to the automatic de-commitment rule “n+3” and was lost for the programme at the 
end of December 2007. This reduced the total committed amount to €417 million. 

Contracting of projects to final beneficiaries stopped on 31 October 2007 and by the end of 
2007 the Sapard Agency had approved 3 128 projects under all measures, accounting for €456 
million  of  EU  contribution  (103%  of  the  AFAs  2000–2006).  Around  600  projects  were 
approved  in  2007  accounting  for  €35  million  of  EU  contribution,  representing  8%  of  the 
initial  EU  allocation  2000–2006.  Contracting  figures  for  2006  accounted  for  respectively 
around  800  projects  and  €178  million.  By  the  end  of  2007,  1 793  projects  have  been 
completed corresponding to 57% of approved projects to that date, of which 209 have been 
completed  during  2006  and  206  in  2007.  The  total  EU  contribution  reimbursed  was  €226,1 
million, corresponding to 51% of the amount committed under the AFAs 2000–2006. 

"Investments  in  agricultural  holdings"  is  the  measure  with  the  highest  allocation.  Of  1 647 
approved projects with €165 million, which is more  than 100% of the available funds under 
the financing plan in force for this measure, 1 251 projects have been completed. Under the 
measure  with  the  second  highest  allocation  "Processing  and  marketing  of  agricultural  and 
fishery products", 311 projects have been approved for €146 million, of which 15 projects for 
the  sub-measure  "Wholesale  markets"  covering  the  funds  available  for this  measure.  240  of 
the projects have been completed. 

Under  "Investments  in  agricultural  holdings"  the  sectors  animal  production  and  products 
(39%)  and  arable  crops  (17%)  have  the  highest  share  of  the  contracted  amount,  with 
respectively 421 and 761 projects, whereas the substantial increase in the projects in the dairy 
sector  is  due  to  improved  procedures  for  applying  under  the  measure.  Monitoring  data 
suggests, that Sapard support to this measure notably in key sectors, such as meat and milk 
and  dairy  products,  has  contributed  to  the  achievement  of  the  measure  and  programme 
objectives,  namely  by  improving  hygienic  conditions  and  animal  welfare,  in  order  to  reach 
EU standards and improvement of production processes. 

Under the measure "Processing and marketing" the highest share of contracted amount was in 
the  sectors  “meat”  (37%)  and  “fruit  and  vegetables”  (31%),  with  respectively  140  and  96 
projects. Main objective of this measure is to facilitate the improvement and restructuring of 
processing and marketing of agricultural and fishery products. Investments should contribute 
to:  the  improvement  of  product  quality,  packaging  and  presentation,  introduction  of 

1 

Annex C.4 gives an overview of the distribution of Sapard funds between measures for BG. 

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environmental  protection  technologies,  achievement  of  EU  quality  and  health  standards, 
better waste recycling, storage capacity and provision of quality raw materials. Support under 
Sapard resulted in improvements to meet European standards in meat, fish, fruit and vegetable 
processing  plants  and  wineries.  Already  completed  projects  have  lead  to  the  quality 
improvement of a considerable part of the processing capacity in these establishments. Data 
also shows that on-going projects should lead to improvement in quality of an increasing part 
of the processing capacity, thus exceeding the levels planned for quality improvement in these 
sectors. 

A total of 7 groups under measure "Setting up producer groups" were approved, representing 
28% of the measure allocation, of which 2 were completed at the end of 2007. 

"Development and diversification of economic activities" measure had 617 projects approved 
for  €57  million,  of  which  235  completed,  coveri ng  the  entire  measure  allocation.  The  key 
activities  under  this  measure  relate  to  rural  tourism,  with  a  share  of  31%  of  the  contracted 
amount (258 projects) and timber carpentry and bio fuels with a 26% share and 155 projects. 

With  regard  to  the  measures  "Development  and  improvement  of  rural  infrastructure"  and 
"Renovation  and  development  of  villages  and  the  protection  and  conservation  of  the  rural 
heritage"  respectively  57  and  221 projects were approved  with  a total value of €83 million, 
which is somewhat more than their measure allocation. Out of these, 16 infrastructure projects 
and 29 projects under "Renovation and development of villages" were completed by the end 
of 2007. Investments under these two measures supported basic infrastructure, such as roads 
and water supply in and between villages. The three last mentioned measures contributed to 
the sustainable development of economic activities and the improvement of the environment 
in the rural areas. This effect will increase when on-going projects have reached the stage of 
completion. 

For "Improvement of vocational training" 3 projects were approved for more than the half of 
its measure allocation. One project was completed. Under the measure "Forestry, afforestation 
of  agricultural  areas,  investment  in  forest  holdings,  processing  and  marketing  of  forestry 
products" 53 projects were approved, with a value higher than the allocation foreseen for this 
measure, of which 10 completed. 

Measure  "Technical  assistance"  had  13  approved  projects,  covering  the  amount  of  the 
measure allocation, of which 9 completed projects. 

Romania2 

In  2006  the  EU  made  the  last  annual  commitment  for  an  amount  of  € 192,4  million  to  RO 
under the AFA 2006, bringing the total of EU funds committed for RO under the AFAs 2000–
2006  up  to  €1,159  million.  In  2006  the  EC  paid   €147,2  million  to  RO,  bringing  total  EU 
payments 2000–2006 to €532,6 million, or 45,9% of EU  funds available to the programme. In 
2007  the  EC  paid  €222,4  million,  bringing  the  total  EU  payments  since  the  start  to  €755 
million, representing 65,1% of allocated EU funds. 

In  2007  the  Sapard  Agency  continued  the  Sapard  2000  –  2006  financial  implementation. 
Contracting of projects to final beneficiaries stopped on 31 July 2007. Of the 4 582 projects 
approved by the Sapard Agency, of which 3 153 completed at the end of 2007, 121 projects 

2 

Annex C.5 gives an overview of the distribution of Sapard funds between measures for RO. 

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concerned  investments  in  areas  affected  by  natural  disasters.  The  acceleration  of  activities 
helped RO to avoid automatic de-commitment of EU funds in 2006 and 2007. 

During  2006  the  last  4  measures  of  the  Sapard  programme  were  accredited,  namely 
"Improving  the  structures  for  quality,  veterinary  and  plant-health  controls,  quality  of  food 
stuffs  and  consumer  protection",  "Agricultural  production  methods  designed  to  protect  the 
environment",  "Setting  up  producer  groups"  and  "Forestry".  The  Commission  Decision  No 
EC/298/2006 of conferring the management of aid for these measures was adopted on 2 April 
2006. 

The implementation of Sapard in RO is characterised by a strong emphasis on rehabilitation 
of rural infrastructure while the acquis related measures have only recently started to absorb 
funds  to  a  larger  extent.  The  largest  share  of  EU  funds  (45%)  has  been  allocated  to  this 
measure. Of the contracted amount of the 766 projects approved, 50% was for roads, 31% for 
drinking  water  facilities,  13%  for  sewerage  systems  and  6%  for  floods  prevention  and 
protection.  595  of  the  approved  projects  have  been  completed  at  the  end  of  2007.  The 
contracted amount at the end of 2007 of €504 milli on represented nearly all funds allocated to 
the measure. 

By  the  end  of  2007  the  level  of  contracting  under  "Diversification  of  Economic  Activities" 
measure reached a committed amount of €58 milli on, representing almost all funds allocated 
to  this  measure,  for  1 145  approved  projects  of  which  613  were  completed.  60%  of  the 
projects relate to rural tourism. In the areas affected by floods 3 projects have been approved. 
Investments  under  these  two  measures  improved  basic  infrastructure  and  supported 
sustainable development of economic activities in the rural areas. 

Considering the scope of damages caused by the floods (estimated at €1,6 billion or 3,4% of 
the 2003 GDP) that affected most regions during April-September 2005, the EC agreed to re-
allocate  in  2005  and  2006  substantial  funds  to  the  measure  "Rural  Infrastructures"  for 
rehabilitation in the affected areas. Moreover, it agreed to use the related provisions of MAFA 
(Multi-annual  Financing  Agreement)  in  case  of  natural  disasters  allowing  to  apply  a  higher 
EU co-financing rate, of 85% instead of 75% and a higher public aid rate, 75% instead of 50% 
for  private  beneficiaries,  under  some  measures.  In  addition,  a  new  sub-measure  for 
investments in flood prevention was created. At the end of 2007 83 projects amounting to € 
53  million  were  contracted  for  measure  2.1  "Development  and  improvement  of  rural 
infrastructure, projects affected by natural disasters". 

Under the measure "Processing and Marketing", which has been allocated the second largest 
share  of  funds  with  25%,  482  projects  have  been  approved,  of  which  310  completed.  The 
level of contracting  almost reached the total funds available for this  measure. At the end of 
2007 the committed amount in euros was 280 million. Approximately 53% of the contracted 
amount of the approved projects concerns meat products and eggs sectors, 14% concern the 
dairy sector, 12% arable crops and 10% the fruit and vegetables sector. Two projects affected 
by  natural  disasters  were  contracted  in  the  cereals  sector  and  another  project  concerned  a 
slaughterhouse.  Investments  were  made  for  construction  of  new  plants  and  improvement  of 
existing ones. The capacities involved in larger sectors, as meat and dairy products, having as 
a result the increase of the quality of the products, especially contribute to the implementation 
of the community acquis. 

"Investments  in  agricultural  holdings"  is  the  third  most  important  measure,  with  a  share  of 
17% of the total amount allocated to the programme. By the end of 2007 1 986 projects have 

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been  approved.  The  committed  amount  of  €190  million  EU  contribution  was  close  to  the 
amount  of  the  measure  allocation  (47%  for  investments  for  animal  production  and  products 
and  44%  for  arable  crops).  1 594  projects  have  been  completed.  In  the  areas  affected  by 
floods  32  projects  have  been  approved.  Investments  in  farms,  as  construction  and 
modernisation of stables, purchase of machinery and equipment and high quality animals, are 
most essential in terms of adoption of the acquis standards. 

Investments in rural infrastructure and diversification of economic activities were in particular 
important  in  RO.  There  were  two  main  reasons  for  this  development.  First  of  all  the 
substantial  need  for  improvements  in  rural  infrastructure  and  economic  activities,  secondly 
the generally weak economic and financial situation in the agricultural sector which resulted 
in  a  lower  level  of  investments  than  anticipated,  in  particular,  in  agricultural  holdings.  The 
Sapard  programme  has  therefore  in  particular  contributed  to  the  objective  concerning  the 
sustainable development of economic activities and the improvement of the environment and 
living  conditions  in  the  rural  areas.  Investments  in  the  agri-food  sectors  were  in  particular 
focussed on investments in animal production and products with a concentration in the meat 
processing sector contributing to the objective of assisting the agri-food sectors in meeting the 
hygiene and health standards. 

Croatia3 

The  HR  Sapard  programme  was  adopted  by  the  Commission  on  8  February  2006.  The 
Conferral  of  management  Decision  for  the  Sapard  Agency  and  measures  "Investments  in 
agricultural  holdings"  and  "Processing  and  marketing  of  agricultural  and  fishery  products" 
was  adopted  on  29  September  2006.  The  HR  MAFA  was  concluded  on  6  April  2006. 
According to the AFA signed on 25.10.2006, the EU committed €25 million to HR. 

In 2007 the EC paid €7,4 million (3 0% of funds available to the programme) to HR, of which 
€7,2 million represents the payment on account. 

By the end of 2007, the Sapard Agency had approved 29 projects, which accounted for 59% 
of the Sapard allocation of the two measures concerned. For the "investments in agricultural 
holdings"  measure,  37  projects  were  submitted  and  17  approved,  of  which  5  beneficiaries 
were young farmers. 

For  the  measure  "Improving  the  processing  and  marketing  of  agricultural  and  fishery 
products" 23 projects were submitted and 12 approved, of which 3 have been completed. 

It is still too early to assess the impact of the Sapard programme of HR. 

3 

Annex C.6 gives an overview of the distribution of Sapard funds between measures for HR. 

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