Commission staff working document - Background document to the Report from the Commission to the Council, the European Parliament and the European Economic and Social Committee 2008 - Annual Report on the implementation of the instrument for pre-accession assistance (IPA) {COM(2009)699 final}
Date: 2009-12-23
Institutions: European Commission
Subjects: Central and Eastern Europe, EU financing, Türkiye, accession to the European Union, cross-border cooperation, impact study, institutional reform, pre-accession aid, pre-accession strategy, regional development, report, rural development

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EUROPEAN COMMISSION  

Brussels, 23.12.2009 
SEC(2009)1719 

COMMISSION STAFF WORKING DOCUMENT 

BACKGROUND DOCUMENT TO THE REPORT FROM THE COMMISSION TO 
THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE EUROPEAN 
ECONOMIC AND SOCIAL COMMITTEE 

2008 ANNUAL REPORT ON THE IMPLEMENTATION OF THE INSTRUMENT 
FOR PRE-ACCESSION ASSISTANCE (IPA) 

{COM(2009)699 final} 

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TABLE OF CONTENTS 

PART I: COUNTRY SECTION .............................................................................................. 11 

1. 

ALBANIA.................................................................................................................. 11 

1.1. 

The year in review...................................................................................................... 11 

1.1.1.  Political developments ............................................................................................. 11 

1.1.2.  Macroeconomic developments and structural reforms ........................................ 11 

1.1.3.  Progress in meeting the acquis communautaire.................................................... 11 

1.2. 

IPA in 2008 ................................................................................................................ 12 

1.2.1.  MIPD 2008-2010....................................................................................................... 12 

1.2.2.  Programming exercise ............................................................................................. 13 

1.2.2.1 Component I: Transition assistance and Institution Building                                      13 

1.2.2.2  Component II: Cross-Border Cooperation                                                                  14 

1.2.3. 

Implementation Modalities and Structures ........................................................... 15 

1.2.4.  Overview of IPA programmes implemented ......................................................... 15 

1.2.4.1. Component I Transition Assistance and Institution Building                                      15 

1.2.4.2. Component II: Cross-Border Cooperation                                                                  16 

1.2.5.  Participation in Community Programmes and Agencies ..................................... 16 

1.3. 

Monitoring and Results .............................................................................................. 16 

1.3.1.  Monitoring ................................................................................................................ 16 

1.3.2.  Evaluation results and lessons learned................................................................... 16 

1.3.3.  Sectors with positive results - Success story  ......................................................... 16 

2. 

BOSNIA and HERZEGOVINA ................................................................................ 17 

2.1. 

The year in review...................................................................................................... 17 

2.1.1.  Political developments ............................................................................................. 17 

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2.1.2.  Macroeconomic developments and structural reforms ........................................ 17 

2.1.3.  Progress in meeting the acquis communautaire.................................................... 17 

2.2. 

IPA in 2008 ................................................................................................................ 18 

2.2.1.  MIPD 2008-2010....................................................................................................... 18 

2.2.2.  Programming exercise ............................................................................................. 19 

2.2.2.1. Component I: Transition Assistance and Institution Building                                     20 

2.2.2.2.  Component II: Cross-Border Cooperation                                                                 21 

2.2.3. 

Implementation modalities and Structures ........................................................... 21 

2.2.4.  Overview of IPA programmes implemented ......................................................... 22 

2.2.4.1.  Component I Transition Assistance and Institution Building                                     22 

2.2.4.2.  Component II: Cross-Border Cooperation                                                                 22 

2.2.5.  Participation in Community Programmes and Agencies ..................................... 23 

2.3. 

Monitoring and Results .............................................................................................. 23 

2.3.1.  Monitoring ................................................................................................................ 23 

2.3.2.  Evaluation results and lessons learned................................................................... 23 

2.3.3.  Sectors with positive results - Success story  ......................................................... 23 

3. 

CROATIA .................................................................................................................. 24 

3.1. 

The year in review...................................................................................................... 24 

3.1.1.  Political developments ............................................................................................. 24 

3.1.2.  Macroeconomic developments and structural reforms ........................................ 24 

3.1.3.  Progress in meeting the acquis communautaire.................................................... 24 

3.2. 

IPA in 2008 ................................................................................................................ 25 

3.2.1.  MIPD 2008-2010....................................................................................................... 25 

3.2.2.  Programming exercise ............................................................................................. 26 

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3.2.2.1. Component I: Transition Assistance and Institution Building                                     26 

3.2.2.2. Component II: Cross-Border Cooperation                                                                  28 

3.2.2.3. Components III and IV: Strategic Coherence Framework                                          29 

3.2.2.4. Component III: Regional Development                                                                       29 

3.2.2.5.Component IV: Human Resources Development                                                          30 

3.2.2.6. Component V: Rural Development                                                                              30 

3.2.3. 

Implementation Modalities and Structures ........................................................... 30 

3.2.4.  Overview of IPA programmes implemented ......................................................... 32 

3.2.5.  Participation in Community Programmes and Agencies ..................................... 32 

3.3. 

Monitoring and Results .............................................................................................. 32 

3.3.1.  State of play for IPA Monitoring Committee and Sectoral Monitoring 

Committees ............................................................................................................... 32 

3.3.2.  Annual and final reports on implementation ........................................................ 33 

3.3.3.  Evaluation results and lessons learned................................................................... 34 

3.3.4.  Sectors with positive results- Success story ........................................................... 34 

4. 

FORMER YUGOSLAV REPUBLIC of MACEDONIA .......................................... 35 

4.1. 

The year in review...................................................................................................... 35 

4.1.1.  Political developments ............................................................................................. 35 

4.1.2.  Macroeconomic developments and structural reforms ........................................ 36 

4.1.3.  Progress in meeting the acquis communautaire.................................................... 36 

4.2. 

IPA in 2008 ................................................................................................................ 36 

4.2.1.  MIPD 2008-2010....................................................................................................... 36 

4.2.2.  Programming exercise ............................................................................................. 37 

4.2.2.1.  Component I: Transition Assistance and Institution Building................................... 38 

4.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 39 

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4.2.2.3.  Components III and IV: Strategic Coherence Framework ........................................ 39 

4.2.2.4.  Component III: Regional Development ..................................................................... 40 

4.2.2.5.  Component IV: Human Resources Development....................................................... 40 

4.2.2.6.  Component V: Rural Development ............................................................................ 40 

4.2.3. 

Implementation Modalities and Structures ........................................................... 41 

4.2.4.  Overview of IPA programmes implemented ......................................................... 41 

4.2.4.1.  Component I: Transition Assistance and Institution Building................................... 42 

4.2.4.2.  Component II: Cross-Border Cooperation ................................................................ 42 

4.2.4.3.  Component III: Regional Development ..................................................................... 43 

4.2.4.4.  Component IV: Human Resources Development....................................................... 43 

4.2.4.5.  Component V: Rural Development ............................................................................ 43 

4.2.5.  Participation in Community Programmes and Agencies ..................................... 43 

4.3. 

Monitoring and Results .............................................................................................. 44 

4.3.1.  State of play for IPA Monitoring Committee and Sectoral Monitoring 

Committees ............................................................................................................... 44 

4.3.2. 

IPA Monitoring Committee .................................................................................... 44 

4.3.2.1.  Component I ............................................................................................................... 44 

4.3.2.2.  Component II.............................................................................................................. 44 

4.3.2.3.  Component III ............................................................................................................ 44 

4.3.2.4.  Component IV............................................................................................................. 44 

4.3.2.5.  Component V.............................................................................................................. 45 

4.3.3.  Annual and final reports on implementation ........................................................ 45 

4.3.4.  Evaluation results and lessons learned................................................................... 45 

4.3.5.  Sectors with positive results – Success story.......................................................... 45 

5. 

KOSOVO (under UNSCR 1244/99).......................................................................... 46 

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5.1. 

The year in review...................................................................................................... 46 

5.1.1.  Political developments ............................................................................................. 46 

5.1.2.  Macroeconomic developments and structural reforms ........................................ 46 

5.1.3.  Progress in meeting the acquis communautaire.................................................... 46 

5.2. 

IPA in 2008 ................................................................................................................ 47 

5.2.1.  MIPD 2008-2010....................................................................................................... 47 

5.2.2.  Programming exercise ............................................................................................. 48 

5.2.2.1.  Component I: Transition Assistance and Institution Building................................... 48 

5.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 49 

5.2.3. 

Implementation modalities and structures ............................................................ 49 

5.2.4.  Overview of IPA programmes implemented ......................................................... 49 

5.2.4.1.  Component I: Transition Assistance and Institution Building................................... 50 

5.2.4.2.  Component II: Cross-Border Cooperation ................................................................ 50 

5.2.5.  Participation in Community Programmes and Agencies ..................................... 50 

5.3. 

Monitoring and Results                                                                                               50 

5.3.1.  Monitoring ................................................................................................................ 50 

5.3.2.  Evaluation results and lessons learned................................................................... 50 

5.3.3.  Sectors with positive results- Success story  .......................................................... 50 

6. 

MONTENEGRO........................................................................................................ 52 

6.1. 

The year in review...................................................................................................... 52 

6.1.1.  Political developments ............................................................................................. 52 

6.1.2.  Macroeconomic developments and structural reforms ........................................ 52 

6.1.3.  Progress in meeting the acquis communautaire.................................................... 53 

6.2. 

IPA in 2008 ................................................................................................................ 53 

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6.2.1.  MIPD 2008-2010....................................................................................................... 53 

6.2.2.  Programming exercise ............................................................................................. 54 

6.2.2.1.  Component I: Transition Assistance and Institution Building................................... 54 

6.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 55 

6.2.3. 

Implementation modalities and structures ............................................................ 56 

6.2.4.  Overview of IPA programmes implemented ......................................................... 56 

6.2.5.  Participation in Community Programmes and Agencies ..................................... 56 

6.3. 

Monitoring and Results .............................................................................................. 56 

6.3.1.  Monitoring ................................................................................................................ 56 

6.3.2.  Evaluation results and lessons learned................................................................... 57 

6.3.3.  Sectors with positive results - Success story  ......................................................... 57 

7. 

SERBIA...................................................................................................................... 58 

7.1. 

The year in review...................................................................................................... 58 

7.1.1.  Political developments ............................................................................................. 58 

7.1.2.  Macroeconomic developments and structural reforms ........................................ 58 

7.1.3.  Progress in meeting the acquis communautaire.................................................... 58 

7.2. 

IPA in 2008 ................................................................................................................ 59 

7.2.1.  MIPD 2008-2010....................................................................................................... 59 

7.2.2.  Programming exercise ............................................................................................. 60 

7.2.2.1.  Component I: Transition Assistance and Institution Building................................... 60 

7.2.2.2.  Component II: Cross–Border Cooperation ............................................................... 64 

7.2.3. 

Implementation modalities and structures ............................................................ 64 

7.2.4.  Overview of IPA programmes implemented ......................................................... 64 

7.2.5.  Participation in Community Programmes and Agencies ..................................... 65 

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7.3. 

Monitoring and Results .............................................................................................. 65 

7.3.1.  Monitoring ................................................................................................................ 65 

7.3.2.  Evaluation results and lessons learned................................................................... 66 

7.3.3.  Sectors with positive results - Success story box ................................................... 66 

8. 

TURKEY.................................................................................................................... 67 

8.1. 

The year in review...................................................................................................... 67 

8.1.1.  Political developments ............................................................................................. 67 

8.1.2.  Macroeconomic developments and structural reforms ........................................ 67 

8.1.3.  Progress in meeting the acquis communautaire.................................................... 67 

8.2. 

IPA in 2008 ................................................................................................................ 68 

8.2.1.  MIPD 2008-2010....................................................................................................... 68 

8.2.2.  Programming exercise ............................................................................................. 69 

8.2.2.1.  Component I: Transition Assistance and Institution Building................................... 70 

8.2.2.2.  Component II: Cross-Border Cooperation ................................................................ 71 

8.2.2.3.  Components III and IV: Strategic Coherence Framework ........................................ 71 

8.2.2.4. Component III: Regional Development                                                                       72 

8.2.2.5.  Component IV: Human Resources Development....................................................... 73 

8.2.2.6.  Component V: Rural Development ............................................................................ 73 

8.2.3. 

Implementation modalities and structures ............................................................ 73 

8.2.4.  Overview of IPA programmes implemented ......................................................... 74 

8.2.5.  Participation in Community Programmes and Agencies ..................................... 75 

8.3. 

Monitoring and Results .............................................................................................. 75 

8.3.1.  State of play for IPA Monitoring Committee and Sectoral Monitoring 

Committees ............................................................................................................... 75 

8.3.1.1.  IPA Monitoring Committee ........................................................................................ 75 

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8.3.1.2.  Sectoral Monitoring Committees ............................................................................... 76 

8.3.2.  Annual and Final Reports on Implementation...................................................... 76 

8.3.3.  Evaluation results and lessons learned................................................................... 77 

8.3.4.      Sectors with positive results-Success story………………………………………77 

PART II: MULTI-BENEFICIARY AND REGIONAL PROGRAMMES ............................. 78 

9. 

The year 2008 in review............................................................................................  78 

9.1. 

Overview of IPA Programmes implemented………………………………………..78 

9.1.1.  Addressing the political criteria…………………………………………………  78 

9.1.1.1.  Human Rights and the Protection of Minorities…………………………………… 78 

9.1.2.  Regional issues and international obligations…………………………………..  78 

9.1.2.1.   Regional Cooperation Initiatives……………………………………………………78 

9.1.2.2.   Public Administration (The Regional School for Public Administration (ReSPA)) 79 

9.1.2.3.   Disaster Risk Reduction…………………………………………………………….79 

9.1.2.4.   Civil Society……………………………………………………………………….  79 

9.2. 

Addressing the Economic Criteria ............................................................................. 80 

9.2.1.  Cooperation with International Financial Institutions………………………….80 

9.2.2.  Education and youth………………………………………………………………81 

9.3. 

Ability to assume the obligations of membership and approximation to European 

Standards .................................................................................................................... 82 

9.3.1.  Customs and taxation .............................................................................................. 82 

10. 

IPA in 2008 ................................................................................................................ 82 

10.1.  MIPD 2008-2010 ....................................................................................................... 82 

10.2. 

Programming exercise................................................................................................ 83 

10.3. 

Implementation modalities and structures ................................................................. 84 

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10.4.  Overview of IPA programmes implemented ............................................................. 84 

10.5. 

Participation in Community Programmes and Agencies ........................................... 84 

11. 

Monitoring and Results .............................................................................................. 84 

11.1.  Monitoring.................................................................................................................. 84 

11.2. 

Evaluation results ....................................................................................................... 85 

11.3. 

Sectors with positive results- Success story............................................................... 85 

PART III: TECHNICAL AND FINANCIAL ASSISTANCE ................................................ 87 

1. Twinning .............................................................................................................................. 87 

2. TAIEX.................................................................................................................................. 88 

3. SIGMA ................................................................................................................................. 89 

PART IV: FINANCIAL DATA............................................................................................... 90 

1. IPA funds by year................................................................................................................. 90 

2. IPA funds by country  .........................................................................................................  95 

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PART I: COUNTRY SECTION 

1. 

ALBANIA 

1.1. 

The year in review  

1.1.1.  Political developments 

In 2008, Albania made some progress on democracy and the rule of law and continued to play 
a  constructive  role  in  terms  of  stability  and  good  regional  cooperation.  The  Albanian 
parliament  adopted  major  constitutional  amendments  and  important  legislative  acts  on  the 
organisation of the judiciary. However, it still remained much to be done in order to ensure 
the independence, transparency and efficiency of the judiciary. Improvements are needed to 
establish an independent, efficient and merit-based civil service.  
There  was  some  progress  in  the  fight  against  corruption  and  the  perception  of  corruption 
improved slightly. But further efforts are required as corruption still remained widespread and 
continued to  be  a  serious problem. Fighting  corruption in the judiciary remains a key issue. 
There  was  progress  on  consolidating  property  rights  and  the  legislative  and  institutional 
framework improved in the area of human rights and the protection of minorities, but overall 
progress  remained  limited  as  regards  protection  of  women  and  minorities,  and  anti-
discrimination policy for children. New prisons and pre-trial detention centres were built but 
very poor detention standards remained an issue of serious concern. 
Civil  society  organisations  remained  weak  and  their  participation  in  policy-making  required 
further strengthening.  

1.1.2.  Macroeconomic developments and structural reforms 

In  2008,  the  economy  of  Albania  continued  growing  at  a  relatively  fast  pace.  Inflationary 
pressures  were  contained  and  the  country  progressed  towards  establishing  a  functioning 
market economy. While macroeconomic stability was broadly maintained, risks increased as 
the  current  account  deficit  widened.  The  administration  of  public  finances  improved  and 
State-induced  distortions  of  competition  remained  limited.  The  government  intensified  its 
fight against corruption and tax evasion but the large informal sector remained an important 
challenge.  Privatisation  of  large-scale  state-owned  companies  progressed  and  the  business 
environment improved, but unreliable energy supply, poor infrastructure, as well as weak rule 
of law and contract enforcement continued to hinder economic development.  

1.1.3.  Progress in meeting the acquis communautaire 

Overall,  Albania  made  progress,  albeit  unevenly,  in  aligning  its  legislation,  policies  and 
capacity with European standards and in implementing its Interim Agreement commitments.  
In  some  areas,  such  as  customs  and  competition,  progress  made  in  previous  years  was 
sustained.  There  were  also  positive  developments  on  SME  (Small  and  Medium-sized 
Enterprise)  policy  and  in  the  field  of  electronic  communications.  In  other  areas,  such  as 
energy,  transport  and  intellectual  property  rights,  progress  remained  limited.  The  legal 
framework on food safety, veterinary and phytosanitary policy improved, but compliance with 
EU  standards  remained  poor  hindering  Albania's  capacity  to  export.  Overall,  administrative 
capacity and implementation of legislation remained weak.  
In  the  field  of  justice,  freedom  and  security,  some  progress  was  made  in  most  areas,  but 
further improvements are needed overall. Regarding visas, a reliable civil registry and address 
system  was  set  up  to  improve  document  security.  The  law  on  foreigners  was  adopted.  The 
EC-Albania visa facilitation agreement entered into force and the visa liberalisation dialogue 

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was launched. But distribution of biometric passports needs to be stepped up. The visa regime 
is not yet in line with EU standards. 
Border control improved as a result of a new law on border management, better infrastructure 
and  inter-agency  co-operation.  The  legal  framework  and  co-operation  between  banks  and 
financial institutions on money laundering improved.  However, organised crime remained a 
serious  problem  despite  improvements  in  the  legal  framework  and  better  co-operation  with 
Interpol.  A  strategy  to  combat  trafficking  in  human  beings  has  been  adopted,  but  much 
remains  to  be  done,  as  Albania  remained  a  significant  country  of  origin  for  trafficking  of 
human beings.  

1.2. 

IPA in 2008 

1.2.1.  MIPD 2008-2010 

 As  a  potential  candidate  country,  Albania  benefits  from  the  first  two  Components  of  IPA, 
including Component I for Transition Assistance and Institution Building and Component II 
for  Cross-Border  Cooperation.  During  the  year  2008,  the  Multi-annual  Indicative  Planning 
Document (MIPD) 2008-2010 was adopted, and the MIPD 2009-2011 was prepared. 
The indicative allocations to Albania under the Multi-annual Indicative Financial Framework 
(MIFF) for 2008-2010 amount to €245.1 million, as specified below in Table 1. Assistance is 
in line with the recommendations of the 2007 Enlargement Strategy and Progress Report, the 
European Partnership priorities and will address the requirements under the Stabilisation and 
Association Agreement (SAA). 
The  assistance  to  Albania  in  the  2008-2010  period  addresses  key  issues  such  as  public 
administration reform and rule of law enforcement, in particular as regards good governance 
and anti-corruption measures. This emphasis is reflected in an increase of funds allocated to 
the  area  of  political  requirements.  Strengthening  the  administrative  capacity  in  view  of  the 
implementation  of  the  SAA  is  given  a  high  priority  to  support  the  Albanian  authorities  in 
fulfilling the requirements of the SAA. There is a need to further support structural reforms in 
the  country  and  to  invest  in  related  infrastructure,  in  particular  in  the  area  of  regional 
development and acquis related infrastructure. 
IPA support under the Transition Assistance and Institution Building Component amounts to 
€214.7 million.  
IPA  support  for  Cross-Border  Co-operation  amounts  to  €30.4  million  and  addresses  cross-
border activities between Albania and EU Member States as well as with adjacent Candidate 
and potential Candidate Countries, complementing the above sub-components.  

Table 1: Albania: Multi-annual Indicative Financial Framework in million € 

Component 

2008 

2009 

2010 

2008-2010 

I.  Transition  Assistance 
Institution Building  

and 

II. Cross-Border Cooperation 

Total 

61.1 

9.6 

70.7 

70.9 

10.3 

81.2 

82.7 

10.5 

93.2 

214.7 

30.4 

245.1 

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1.2.2.  Programming exercise 

Table 2: Indicative financial allocation for Albania per component for the year 2008  
(In million €, to nearest €10,000) 
Albania 

2008 

I. Transition Assistance and Institution Building 

Of which: 

National programme 

(Including Kukes region programme, 
i.e. funds transferred from IPA Component II 
to IPA Component I) 

Nuclear Safety Programme 

Tempus Programme 
II. Cross-Border Cooperation1 

Of which : 

CBC Programme Albania -Montenegro 

CBC Albania – the former Yugoslav Republic of Macedonia 

CBC Albania - Greece in ERDF 
CBC Adriatic in ERDF (Decentralised2) 

ERDF (South East Europe programme)  

Total 

62.12   

60.92  

0.20  

1.00 

8.58  

0.75 

0.75 

1.49 

5.39 

0.20 

70.7 

1.2.2.1   Component I: Transition Assistance and Institution Building 

The  IPA  2008  National  Programme  for  Albania  was  adopted  by  the  Commission  on  19 
December  2008.  IPA  2008  for  Albania  addresses  key  issues  such  as  public  administration 
reform  and  rule  of  law  enforcement,  particularly  in  the  fields  of  good  governance  and  anti-
corruption. This reflects the increase of funds allocated to the area of political requirements 
under  MIPD  2008-2010.  Additionally,  the  programme  supports  the  Albanian  authorities  in 
fulfilling  the  requirements  of  the  SAA  by  funding  projects  which  aim  at  strengthening  the 
administrative capacities of the Albanian Institutions. The Programme also reflects the need to 
further  support  structural  reforms  in  the  country  by  investing,  in  particular,  in  the  area  of 
regional development and acquis related infrastructure. 

1 Programmes for component II are adopted for three years. Financial commitments are made annually and 
therefore figures above are just for 2008.  
2  As regards the Cross Border Cooperation IPA project "Adriatic in ERDF" – Shared Management, whose IPA 
allocation for 2008 is EUR 5.4 million, the European Commission's Delegation is not the Contracting Authority. 

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Table 3: Component I - Transition Assistance and Institution  Building 2008 for Albania (in 
million €): 

Priority Axis 
Political Requirements 

Projects 

Budget 

SAA Implementation 
Ministry of Works & Transport 
Civil Service Reform 
Public Procurements 
Treasury System  
Penitentiary Infrastructure 
Customs Procedures 
Against Corruption 
Project Preparation Facility 

Secondary and Local Roads 
Vocational Education & Training 
Kukes Region 

Metrology Infrastructure 
Rural Development 
Competition & State Aid 
Copyright Office 
Central Bank 
Zoonotic Diseases 
Civil Aviation Safety 
Highway Routes 
Maritime Sector 
Control System in Fisheries 
Environmental Monitoring 
Community Programmes 

2.00 
1.00 
1.00 
1.50 
1.50 
5.50 
3.50 
2.00 
1.00 

8.00 
7.00 
1.01 

3.00 
2.00 
1.50 
0.80 
1.00 
5.70 
1.00 
2.50 
3.10 
2.00 
2.00 
1.30 
60.91 

Economic Requirements 

Ability 
to 
obligations 
membership 

assume 
of 

the 
EU 

Total 

1.2.2.2   Component II: Cross-Border Cooperation  

IPA  Component  II  supports  the  participation  of  Albania  in  two  bilateral  cross–border 
programmes with neighbouring candidate/potential candidate countries: Montenegro and the 
former  Yugoslav  Republic  of  Macedonia.  With  regards  to  cross–border  cooperation  with 
Member  States,  IPA  Component  II  finances  a  bilateral  programme  Albania–Greece  and  the 
participation  of  Albania  in  the  multilateral  cross–border  programme  "Adriatic",  where 
Albania,  Bosnia  and  Herzegovina,  Croatia,  Montenegro  and  Serbia  cooperate  with  Greece, 
Italy  and  Slovenia  across  the  Adriatic  Sea.  Moreover,  IPA  Component  II  also  finances  a 
unilateral programme concerning the development of the Kukes region of Albania, bordering 
Kosovo,  as  well  as  the  participation  of  Albania  in  the  ERDF  transnational  programme 
"South–East Europe". 
All  Component  II  programmes  involving  Albania,  except  those  with  Member  States,  were 
presented to the IPA Committee on 29/30 October and were adopted by the Commission on 

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18/20  December.  Although  being  prepared  in  2007,  the  cross–border  programmes  with 
Member States (with Greece and the Adriatic) were adopted in March 2008. To be noted, as a 
condition for its implementation, the CBC programme with Greece – which should be put into 
operation  according  to  the  transitional  arrangements  referred  to  in  Article  99  of  the  IPA 
Implementing  Regulation  No  718/2007  –  required  a  parallel  adoption  decision  covering  the 
Greek side of the border (adopted in September 2008).  

1.2.3. 

Implementation modalities and structures  

All IPA assistance in Albania is carried out under centralised management. The work leading 
to decentralised management with ex ante controls is progressing. The government has set up 
the  basis  for  the  institutions  that  will  be  responsible  for  decentralised  management.  The 
Competent  Accrediting  Officer  (CAO),  the  National  Authorising  Officer  (NAO),  and  the 
Programme Authorising Officer (PAO) were nominated. 
In  2008  the  road  map  for  decentralised  management  was  prepared  but  it  was  only  finalised 
outside the reporting period.  

1.2.4       Overview of IPA programmes implemented 

In 2008, the first IPA 2007 projects were contracted. IPA 2008 was launched, but no projects 
were  contracted.  At  the  end  of  2008,  contracting  rates  for  the  IPA  2007  programmes  had 
reached 15% and 0% for IPA 2008, as shown below in Table 2. 

Table 4: Albania- Status of financial assistance at the end of December 2008 (in million €), 
IPA annual national programmes 

IPA 2007 
IPA 2008 

Allocated  Contracted RAC  % contractedPaid 
1.76 
41.75 
49.27 
0.00 
60.92 
60.92 

15% 
0% 

7.52 
0.00 

RAL  % paid
5.76 
0.00 

4% 
0% 

1.2.4.1.    Component I – Transition Assistance and Institution Building 

In 2008, the following IPA 2007 projects were contracted: 

The  project  'Police  Assistance  Mission  of  the  European  Community  to  Albania  (PAMECA 
III)' was contracted in 2008 and started its activities on 5 May 2008. The Team is composed 
of a group of experts drawn from 3 Member States (United Kingdom, Austria and Sweden) 
and  spams  across  the  entire  spectrum  of  activities  of  the  Albanian  State  Police,  including 
Organised Crime, Terrorism, Integrated Border Management, Human, Financial and Material 
Resources  Management,  Community  Policing  and  others.  The  project  has  proven  so  far 
successful  in  highlighting  areas  needing  further  improvement  towards  building  a  credible 
Police  Force  in  Albania,  and  in  identifying  suitable  strategic  and  tactical  actions  to  achieve 
that goal.  
The project of technical assistance to the Preparation of the Albanian Authorities for the EU 
decentralised management was contracted in December 2008 (amount allocated: €1 million). 
The  overall  objective  of  the  project  is  to  adequately  prepare  the  Albanian  Authorities  for 
absorbing EU financial assistance, putting into place efficient structures and strengthening the 
capacities of key institutions for technical management of decentralised programmes in order 
to ensure sound management of decentralised management.  
A project to the preparation of Terms of Reference for the service tender 'Supporting SMEs to 
become more competitive in the EU Market' has been contracted. 

- 15 - 

 
 
 
  
 
 
 
1.2.4.2.   Component II – Cross Border Cooperation 

In 2008, no projects of IPA 2007 Component II were contracted. The Call for Proposal for the 
ERDF  South-East  Europe  under  IPA  2007  CBC  was  launched  in  2008,  but  not  contracted.. 
No projects of IPA 2008 CBC were launched in 2008. 

1.2.5.     Participation in Community Programmes and Agencies 

A Framework Agreement on the general principles for Albania's participation in Community 
programmes  was  signed  in  November  2004.  In  accordance  with  Articles  2  and  5  of  this 
Framework  Agreement,  Albania  shall  pay  a  financial  contribution  to  the  budget  of  the 
Community  programmes  in  which  it  participates  and  may  request  IPA  assistance  in  this 
regard.  No  funds  were  allocated  for  Community  programmes  under  IPA  2007.  Two 
Community  Programmes  were  planned  under  IPA  2008:  (1)  to  co-finance  the  costs  of  the 
"entry-tickets" which the beneficiary country has to  pay  for  the participation in Community 
programmes, and (2) to strengthen the capacity of the relevant administrative bodies to ensure 
proper  participation  of  the  beneficiary  in  Community  Programmes.  None  of  the  IPA  2008 
Community Programme projects were launched in 2008.  

1.3.  Monitoring and Results 

1.3.1.  Monitoring 

No monitoring of IPA projects was carried out in 2008 as the IPA 2007 and 2008 programmes 
had not started to be implemented. Consequently, the monitoring of these programmes is yet 
to begin.  

1.3.2        Evaluation results and lessons learned  

As  IPA  project  implementation  started  in  2008,  no  evaluations  have  been  yet  carried  out, 
neither for component I nor for component II. 

1.3.3        Sectors with positive results - Success story   

Under  component  I,  the  contribution  of  PAMECA  III  has  so  far  been  found  extremely 
valuable  in  identifying  long  term  challenges  and  sustainability  issues  within  the  Albanian 
State  Police.  The  project  has  also  been  instrumental  in  identifying  ways  forward  and 
encourages continued progress within the Albanian State Police. 

- 16 - 

 
 
 
 
2. 

BOSNIA AND HERZEGOVINA  

2.1. 

The year in review 

2.1.1.  Political developments 

to  make 

Progress  over  2008  was  exceptionally  slow.  Consequently,  there  was  little  advancement  in 
addressing  the  key  European  Partnership  priority,  requesting  Bosnia  and  Herzegovina  to 
establish  more  functional  and  sustainable  institutional  structures.  Bosnia  and  Herzegovina's 
system of governance continued to involve a significant international presence in 2008. Due 
to the concerns over political stability in the country and in the region as a whole, the closure 
the  Office  of  High  Representative  (OHR)  was  further  postponed.  The  Peace 
of 
Implementation  Council  decided 
the  closure  conditional  on  Bosnia  and 
Herzegovina's  progress  on  addressing  five  objectives  and  two  conditions.  One  of  the 
conditions was met in June when the Stabilisation and Association Agreement was signed.  
2008 saw Bosnia and Herzegovina remain in the early phases of public administration reform, 
even if some progress was made. Regarding the judicial system, the adoption of the Strategy 
for  Development  of  the  Justice  Sector  for  2008-2012  was  a  positive  development. 
Nevertheless,  the  disjointed  character  of  the  judicial  system  and  disparities  in  the  legal 
framework constituted barriers to the effective operation of the judiciary. In the fight against 
corruption limited progress was achieved. The National Anti-Corruption Strategy was again 
not properly implemented. 
Little  additional  progress  was  achieved  in  improving  the  implementation  of  international 
human  rights  conventions.  Some  progress  was  made  regarding  the  support  provided  by  the 
authorities to civil society development. Progress in the area of minority rights, cultural rights 
and protection of minorities was limited.  

2.1.2.  Macroeconomic developments and structural reforms 

In  2008  economic  growth  remained  high  and  the  external  balance  improved.  The  currency 
board  arrangement  continued  to  function  smoothly,  despite  a  relative  acceleration  in  the 
growth of domestic lending, and the annual average inflation of the first eight months of 2008 
stood at 8.0% in Bosnia and Herzegovina , after 1.5% in 2007. The increased fiscal revenue 
from the introduction of VAT in 2006 continued in 2008. In the first six months of 2008 net 
Foreign  Direct  Investment  (FDI)  declined  strongly  compared  to  the  same  period  in  the 
previous year and covered only 24% of the current account deficit. Despite robust economic 
growth,  unemployment  remained  very  high.  Public  spending,  and  in  particular  social 
spending,  rose  further,  weakening  the  quality  of  fiscal  adjustment  and  leading  to  liquidity 
problems in May. Slow expansion of productive capacities and structural rigidities hampered 
labour  market  participation.  Progress  in  the  restructuring  and  liquidation  of  State  owned 
enterprises was slow and uneven across the country. The small and medium-sized enterprises 
(SME)  sector  grew,  and  enjoyed  increased  access  to  financing  from  private,  public  or  EU 
funds. However, the informal sector remained large. 

2.1.3.  Progress in meeting the acquis communautaire 

Bosnia  and  Herzegovina's  progress  is  approximating  to  the  acquis  was  limited  overall.  As 
regards  free  movement  of  goods,  there  remained  a  lack  of  proper  conformity  assessment 
infrastructure (testing and calibration laboratories, certification and inspection bodies) and the 
country's  market  surveillance  system  continued  to  be  largely  based  on  mandatory  standards 
and  pre-market  control.  Good  progress  was  made  in  the  field  of  customs  and  taxation.  The 
implementation  of  customs-related  provisions  was  adequate  and  Value  Added  Tax  (VAT) 
collection improved in 2008.  

- 17 - 

 
 
Progress in the field of anti-trust control continued, whereas no progress was made regarding 
State  aid.  There  were  some  improvements  on  public  procurement  however  not  in  terms  of 
legislative  alignment.  Little  progress  was  made  with  regards  to  intellectual,  industrial  and 
commercial  property  rights.  In  the  area  of  employment  and  social  policies,  the  absence  of 
State level competences remained an obstacle to the development of a countrywide strategy 
for  employment.  No  progress  was  made  with  respect  to  social  policies.  Some  progress  was 
made in the  area  of education. Limited progress was  made in  the area of SMEs. The sector 
enjoyed  increased  access  to  financing,  but  no  countrywide  SME  strategy  was  adopted. 
Important  State-level  Laws  on  wine,  agriculture,  food  and  rural  development  were  adopted, 
but there was no progress on the adoption of a State-level agriculture strategy. Some progress 
was  made  on  food  safety  as  implementing  legislation  was  adopted,  but  in  the  field  of 
veterinary and phytosanitary policies progress was limited. As for environment, no progress 
was  made.  Bosnia  and  Herzegovina's  preparations  in  the  transport  sector  were  positive. 
Energy sector reform stalled in 2008. Bosnia and Herzegovina made some progress in the area 
of  information  society  and  media.  In  the  field  of  statistics,  limited  progress  was  made. 
Cooperation between the country's statistics institutions was still insufficient.  
In the area of justice, freedom and security, the Visa Facilitation Agreement entered into force 
in  January  2008.  Some  progress  was  made  in  the  areas  of  asylum  and  migration.  Further 
efforts  remain  necessary  to  tackle  money  laundering.  Some  progress  was  made  as  regards 
police reform through the adoption of two state-level laws. However, the fragmentation of the 
police was not addressed. Action in fighting against organised crime activities was limited.  

2.2. 

IPA in 2008 

2.2.1.  MIPD 2008-2010 

As  a  potential  candidate  country,  Bosnia  and  Herzegovina  benefits  from  the  first  two 
components of IPA, including component I for Transition Assistance and Institution Building 
and component II for Cross-Border Cooperation. 
The  indicative  allocation  to  Bosnia  and  Herzegovina  under  the  Multi-annual  Indicative 
Financial Framework (MIFF) for 2008–2010 amounts to €269.9 million, as specified below in 
table 1. The document was adopted by the Commission on 23 September 2008. 
Through  component  I,  the  Multi-annual  Indicative  Planning  Document  (MIPD)  provides 
support to Bosnia and Herzegovina in the following key reform areas: 
Political  criteria:  In  line  with  the  2007  Enlargement  Strategy,  the  MIPD  2008  –  2010  has 
increased the share of assistance for the support of institution building, better governance and 
civil society. Priority will be given to assistance with the aim of strengthening administrative 
capacity  and  supporting  domestic  efforts  on  constitutional  reform,  ensuring  that  Bosnia  and 
Herzegovina becomes a more democratic, sustainable and functional state. Priority will also 
be  given  to  the  support  of  the  development  of  Bosnia  and  Herzegovina's  civil  society.  IPA 
will support the public administration reform, including support to the customs and taxation 
administration, the reform of the judiciary and of the police with an emphasis on institution 
building. 
Economic  criteria:  IPA  will  assist  Bosnia  and  Herzegovina's  economic  development  by 
supporting  the  establishment  of  regulatory  capacity  and  the  enhancement  of  entrepreneurial 
know-how. Further assistance will support the development of the SME sector, the economic 
development  of  the  regions,  and  will  improve  trade  policies.  The  education  reform  will  be 
advanced  to  promote  the  development  of  economy  and  society  and  active  labour  market 
measures shall assist in combating unemployment. The health sector will be reformed to ease 
the burden on public finances and to deliver adequate health care to citizens. 
Ability to assume the obligations of membership: IPA will assist Bosnia and Herzegovina 
to cope with the requirement to approximate to the European acquis in the areas of internal 

- 18 - 

 
 
 
market, sectoral policies, and justice, freedom and security. The emphasis of the support will 
be  placed  on  supporting  the  development  of  strategies  and  policies  to  establish  sectoral 
policies and a regulatory framework compatible with European standards. 
In its component II, IPA will support Cross-Border Co-operation by proposing joint projects 
at the borders with Croatia, Montenegro and Serbia, with EU Member States through the IPA 
CBC  Adriatic  Programme  and  by  supporting  Bosnia  and  Herzegovina to participate in joint 
projects under the European Regional Development Fund's (ERDF) transnational programmes 
"South-East Europe" (SEE) and "Mediterranean" (MED). 

Table 1: Bosnia and Herzegovina: Multi-annual Indicative Financial Framework (in million 
€)  

Transition  Assistance 
Institution Building 
Cross-border Co-operation 
Total 

and 

2008 
69.9 

4.9 
74.8 

2009 
83.9 

5.2 
89.1 

2010 
100.7 

5.3 
106.0 

Total 
254.5 

15.4 
269.9 

2.2.2.     Programming Exercise  

Table  2:  Indicative  financial  allocation  for  Bosnia  and  Herzegovina  per  component  for  the 
year 2008 (in million €) 

Component  
I. Transition assistance and Institution Building 

(cid:131)  National Programme Part I 

(cid:131)  National Programme Part II 

(cid:131)  Nuclear Safety 

(cid:131)  Education (Tempus) 

II. Cross-border Cooperation 

(cid:131)  CBC  programmes  Bosnia  and  Herzegovina 

– Croatia 

(cid:131)  Bosnia and Herzegovina  - Montenegro 

(cid:131)  Bosnia and Herzegovina - Serbia 

(cid:131)  ERDF 

(cid:131)  Adriatic programme 

2008 
69.9 
12.5 

54.3 

0.7 

2.4 

4.9 
1.0 

0.5 

0.7 

0.5 

2.2 

The  IPA  National  Programme  for  2008  was  divided  into  two  parts.  Part  I  had  a  budget  of 
€12.5  million  and  included  the  projects  which  were  planned  to  be  implemented  with  the 
highest  priority  (police  reform,  state  court,  state  prison,  project  preparation  facility,  EU 
awareness). The Commission adopted the financing decision for part I on 9 October 2008. 
Part  II,  with  a  budget  of  €54.25  million,  included  the  remaining  projects  for  the  2008 
programme. The Commission adopted the financing decision for part II on 5 December 2008.  

- 19 - 

 
 
 
 
 
 
 
 
 
However, because Bosnia and Herzegovina did not sign the financing agreements for the two 
parts  of  the  2008  programme  in  2008,  (not  concluded  at  the  time  of  the  preparation  of  this 
report)  the  benefits  of  an  early  implementation  of  the  priority  projects  in  part  I  of  the 
programme were lost. 
Table  2  provides  the  financial  allocation  for  components  I  and  II  of  the  2008  programme. 
(Please note that the allocation for the component I include an allocation of EUR3.15 million 
to the multi-beneficiary programme 2009.) 

2.2.2.1    Component I: Transition Assistance and Institution Building  

The  IPA  2008  National  Programme  for  Bosnia  and  Herzegovina  was  adopted  by  the 
Commission  on  9  October  2008  for  Part  1  and  on  5  December  2008  for  Part  2.  The 
programme will provide support to the police reform and judiciary institutions. It also aims at 
facilitating  the  country's  progress  towards  the  EU  membership  through  raising  public 
awareness  of  the  EU  integration  process  and  assisting  the  national  authorities  in  planning, 
programming  and  implementing  of  the  Instrument  for  Pre-Accession  Assistance  (IPA)  by 
means of a Project Preparation Facility. Assistance is aimed at supporting the country's efforts 
in  its  transition  from  potential  candidate  to  candidate  status.  Funds  under  IPA  component  I 
aim at providing for Institution Building which is needed to meet this objective. In particular, 
Bosnia and Herzegovina has to approximate to European standards, among other things, in the 
sectors of justice, freedom and security, where sustained efforts remain necessary in order to 
continue to increase the effectiveness of the legislative bodies. 
Table 3 below provides an overview of the planned interventions in the component I of the 
2008 programme. 

Table 3: Component I - Transition Assistance and Institution Building 2008 for Bosnia and 
Herzegovina (in million €): 

Priority axis 
Political Requirements 

Projects 

State Court & Prosecutor's office 
State Prison 
Judicial Institutions 
Police Reform 
Project Preparation Facility 
Decentralised Implementation 
EU Awareness 
Mine Action Activities 
Vulnerable Groups 
Civil Society 

Budget 

               3.00  
               4.00  
               1.40  
               2.00  
               1.50  
               1.50  
               2.00  
               2.20  
               1.90  
               3.50  

Economic Requirements 

 Ability to assume the obligations 
of EU membership 

Health Care System Development 
Education Reform 
Competitive Sectors 

               2.85  
               3.00  
               7.00  

European Common Aviation Area 
Asylum 
Trade and Metrology 
IBM + ITA 
Central Bank 

      1.00 
      1.50 
               4.00  
               3.80  
               1.00  

- 20 - 

 
 
 
 
 
  
 
 
 
 
  
  
  
  
  
  
  
  
 
 
 
  
  
  
  
 
 
  
 
  
Environment 
Community Programmes FP7 
Rural Development &  Agri 
Energy Community 
Citizen Identification Protection 
Statistics (Census) 
Spatial Information  
Animal Health 

               4.00  
               1.35  
               4.00  
               1.75  
               2.00  
               2.00  
               3.00  
      1.50 
             66.75  

2.2.2.2     Component II: Cross-Border Cooperation 

IPA  Component  II  supports  the  participation  of  Bosnia  and  Herzegovina  in  three  bilateral 
cross–border  programmes  with  Croatia,  Montenegro  and  Serbia.  Concerning  CBC  with 
Member  States,  IPA  Component  II  finances  the  participation  of  Bosnia  and  Herzegovina  in 
the  IPA  CBC  Adriatic  programme.  Finally,  in  2008  the  IPA  Component  II  financed  the 
participation of Bosnia and Herzegovina in the ERDF transnational programme "South-East 
Europe".  Component  II  programmes  involving  Bosnia  and  Herzegovina  were  adopted  in 
December  2007,  except  the  IPA  Adriatic  programme,  which  was  prepared  in  2007  but 
adopted in March 2008 

2.2.3.       Implementation Modalities and Structures  

Implementation of Component I and II programmes: 

All programmes under IPA Component I and II are implemented on a centralised basis by the 
European  Commission  Delegation  to  Bosnia  and  Herzegovina  in  accordance  with  Article 
53(a)  of  the  Financial  Regulation  and  the  corresponding  provisions  of  the  Implementing 
Rules. 

Multi-Beneficiary Programmes: 

Bosnia and Herzegovina's participation in horizontal nuclear safety and education (Tempus) 
programmes are funded from the allocation under Component I of IPA but are implemented 
on a centralised basis by the European Commission in Brussels in the framework of the Multi-
Beneficiary Programmes. 

Preparation for decentralised management of IPA: 

its  preparation  for  decentralised 
During  2008,  Bosnia  and  Herzegovina  continued 
management for IPA funds. The Council of Ministers of Bosnia and Herzegovina adopted on 
23  June  2008  the  revised  decentralised  management  Strategy.  In  November  2008,  the 
Minister  of  Finance  and  Treasury  was  appointed  as  National  IPA  Coordinator  (NIPAC).  In 
addition,  an  IPA  Advisory  Board  was  created,  composed  of  the  NIPAC  (president  of  the 
board), the Director of the Directorate for European Integration, the Ministers of Finance of 
the Entities and two other representatives from the Entity Governments. 
The National Authorising Officer (NAO) and the Programme Authorising Officer (PAO) have 
to  be  reappointed  for  IPA  since  their  mandate  was  only  related  to  CARDS.  The  Central 

- 21 - 

 
 
  
  
  
  
  
  
  
 
  
  
 
 
 
 
 
 
 
 
 
Finance and Contracting Unit (CFCU) and the National Fund (NF) are established within the 
Ministry of Finance and Treasury but were not yet completely staffed in 2008.  
An  advisory  mission  of  DG  ENLARGEMENT  (Unit  E4  Operational  Audit  and  Evaluation) 
for  Operational  Audit  was  carried  out  in  July  2008  and  a  first  gap  assessment  of  the 
decentralised  management  structures  was  conducted  in  August  2008.  Technical  assistance 
was in place and also programmed under IPA 2008 to support the authorities in Bosnia and 
Herzegovina to continue the preparations for decentralised management. 

2.2.4.   Overview of IPA programmes implemented  

The IPA Framework Agreement was signed on 20 February 2008 and entered into force on 30 
July  2008  following  the  ratification  by  Bosnia  and  Herzegovina's  Presidency  and  its 
publication  in  the  Official  Gazette  of  Bosnia  and  Herzegovina  on  16  July.  The  delays  were 
mainly  caused  by  lack  of  due  diligence  in  proceeding  with  the  ratification  and  internal 
consultation  procedures  on  the  side  of  Bosnia  and  Herzegovina.  Even  after  the  Framework 
Agreement  entered  into  force,  its  tax  exemption  provisions  were  not  duly  implemented  by 
Bosnia  and  Herzegovina.  Only  on  4  December  2008,  Bosnia  and  Herzegovina's  House  of 
Peoples  adopted  the  amendments  to  the  Law  related  to  the  VAT  exemption  of  IPA  funds 
opening the way to the implementation of the IPA programmes. 

Table  4:  Bosnia  and  Herzegovina-  Status  of  financial  assistance  at  the  end  of  December  2008  (in 
million €) 

Allocated  Contracted RAC 
26.3 
23.4 
49.7 

%Contracted RAL 
44.4 
47.0 

%Paid 
10.7 

66.8 

1.6 

65.2 

2.4 

66.7 

0.1 

IPA 
2007 
IPA 
2008 

2.2.4.1   Component I: Transition Assistance and Institution Building 

The  Financing  Agreement  for  the  IPA  2007  National  Programme  (adopted  by  Commission 
Decision  C(2007)6698  on  19  December  2007)  was  signed  on  31  July  2008  immediately 
following the entering into force of the IPA Framework Agreement. The exchange of letters 
between the European Commission Delegation and the authorities of Bosnia and Herzegovina 
took  place  on  the  same  day.  First  tenders  were  launched  in  August  2008  but  further 
procurement  was  put  on  hold  because  of  the  non-compliance  of  Bosnia  and  Herzegovina's 
legislation  with  the  provisions  of  the  IPA  Framework  Agreement  in  the  field  of  tax 
exemption.  In  2008,  only  six  contribution  agreements  with  international  organisations 
(namely Council of Europe, the International Commission for Missing Persons, UNICEF, the 
United  Nations'  Development  Programme  (UNDP)  and  the  High  Judicial  and  Prosecutorial 
Council) with a total amount of €5.64 million were concluded.  
The  IPA  2008  National  Programmes  part  I  and  II  were  adopted  by  the  Commission  on  9 
October  2008  by  Commission  Decision  C(2008)5659/2  and  on  5  December  2008  by 
Commission  Decision  C(2008)7638.  The  draft  Financing  Agreement  for  part  I  of  the  2008 
programme was transmitted to the authorities of Bosnia and Herzegovina in November 2008 
but not signed since. Therefore, implementation of the two programmes did not start during 
2008. 

2.2.4.2.   Component II: Cross-Border Cooperation 

The Financing Agreements for the 2007 Cross-border Cooperation Programmes with Croatia 
and Serbia were signed on 31 July 2008. The Financing Agreements for the 2007 programmes 

- 22 - 

 
 
 
 
 
 
 
 
 
with  Montenegro  and  the  ERDF  South  East  Europe  programme  were signed  on  30  October 
2008.  Joint  implementation  structures  (Joint  Management  Committees,  Joint  Technical 
Secretariats and antennas) were established and the first meeting of the National Task Force 
for CBC programmes took place on 14 May 2008. The first meetings of the Joint Monitoring 
Committees for the respective programmes took place during November 2008. The Operating 
Structure placed in the Directorate for European Integration remains poorly staffed with only 
two out of six full time civil service positions filled.  
The  Financing  Decisions  for  the  2008  Cross-Border  Cooperation  programmes  with 
Montenegro  (Decision  C(2008)3991  of  31  July  2008),  Serbia  (Decision  C(2008)3708  of  23 
July 2008), Croatia (Decision C(2008)3814 of 25 July 2008), and for the participation in the 
ERDF  programme  (Decision  C(2008)5609  of  7  October  2008)  were  adopted  by  the 
Commission during 2008. However, the related Financing Agreements for those programmes 
were not signed in 2008.  

2.2.5     Participation in Community Programmes and Agencies 

A  Framework  Agreement  on  the  general  principles  for  participation  of  Bosnia  and 
Herzegovina in Community programmes was signed in November 2004. In accordance with 
Articles 2 and 5 of this Framework Agreement, Bosnia and Herzegovina shall pay a financial 
contribution  to  the  budget  of  the  Community  programmes  in  which  it  participates  and  may 
request IPA assistance in this regard.  
In  November  2008  Bosnia  and  Herzegovina  signed  the  Memorandum  of  Understanding 
(MoU)  for  the  7th  Framework  Programme  for  Research  and  Development.  This  is  the  first 
Community Programme in which Bosnia and Herzegovina is fully participating 
€1.350.000  were  allocated  from  IPA  2008  component  Ito  co-finance  the  entry  tickets  for 
participation  of  Bosnia  and  Herzegovina  in  2009  in  the  seventh  Framework  Programme  for 
Research and Competitiveness and Innovation Framework Programme (CIP). 

2.3.  Monitoring and Results 

2.3.1.  Monitoring 

No monitoring of IPA projects was carried out in 2008 as the IPA 2007 and 2008 programmes 
had  not  started  to  be  implemented  yet.  Consequently,  the  monitoring  of  these  programmes 
was yet to begin.  

2.3.2.  Evaluation results and lessons learned  

There  were  no  evaluation  results  of  IPA  programmes  in  2007  and  2008  as  they  have  not 
started  to  be  implemented  yet.  For  the  first  and  second  year  of  IPA  no  lessons  could  be 
identified as the implementation only began in 2008. 

2.3.3.  Sectors with positive results - Success story box  

For the first and second year of IPA, no sectors with positive results could be identified as the 
implementation of IPA programmes only started in 2008. 

- 23 - 

 
 
3. 

CROATIA 

3.1. 

The year in review 

3.1.1.  Political developments 

EU accession negotiations began with Croatia on 3 October 2005 and continued to progress 
well. By the end of December 2008, 22 out of 35 negotiation chapters had been opened. Out 
of  these  chapters,  seven  had  been  provisionally  closed.  Based  on  the  overall  progress  being 
made  by  Croatia  the  Commission  proposed  in  the  enlargement  package  adopted  on  5 
November 2008, an indicative road map for reaching the final stage of accession negotiations 
by the end of 2009, provided Croatia fulfils all the necessary conditions. Croatia continued to 
meet the Copenhagen political criteria. New strategies and action plans as well as legislation 
for reforming the judiciary, the public administration and in fighting corruption were adopted. 
The  anti-corruption  body  USKOK  continued  to  intensify  its  activities.  Croatia  took  some 
steps  to  address  problems  of  minorities,  including  refugee  return.  Croatia  continued  to 
participate  actively  in  regional  cooperation.    However,  considerable  challenges  remained  in 
key areas, such as reform of the still inefficient judicial system and public administration and 
in fighting organised crime and corruption, which remained widespread. Sustained efforts are 
needed  across  the  board,  leading  to  concrete  results.  Further  attention  needs  to  be  paid  to 
minority rights, especially refugee return. The prosecution of war crimes requires continued 
attention.  There  were  problems  of  access  by  the  International  Criminal  Tribunal  for  the 
former  Yugoslavia  (ICTY)  to  certain  documents  in  Croatia.  Regional  cooperation  needs  to 
continue, as do efforts to solve outstanding bilateral problems with neighbours, especially on 
border delimitation.   

3.1.2.  Macroeconomic developments and structural reforms 

The economy of Croatia continued to show a solid performance. Macroeconomic stability was 
preserved. Employment grew and unemployment continued to decline. Business registration 
procedures  improved  further.  However,  inflation  rose  considerably,  largely  due  to  higher 
energy  and  food  prices.  The  current  account  deficit  was  growing.  The  implementation  of 
structural reforms was slow. Significant subsidies to enterprises were not yet used effectively 
for restructuring. Further improvements in the business environment were needed.  

3.1.3.  Progress in meeting the acquis communautaire 

Croatia  improved  its  ability  to  take  on  the  obligations  of  membership.  Preparations  for 
meeting EU requirements moved forward at a steady pace. Significant progress was made in 
economic and monetary policy and information society and media. Good progress was made 
in many chapters, such as public procurement, intellectual property law, customs union, food 
safety and financial services. However, significant efforts lie ahead, in particular in areas such 
as judiciary and fundamental rights, environment, competition policy and agriculture and rural 
development. 

- 24 - 

 
 
 
3.2. 

IPA in 2008 

3.2.1.  MIPD 2008-2010 

The Multi-Annual Indicative Planning Document (MIPD) 2008-2010 for Croatia was adopted 
on 18 September 2008. It is based on an indicative financial envelope of €451.4 million  for 
the period 2008-2010 and describes the objectives under IPA, which are:  
⋅  To assist Croatia  in meeting the accession criteria, i.e. the political and economic criteria, 

as well as the adoption, implementation and enforcement of the acquis ; 

⋅  To  improve co-operation and good neighbourly relations of Croatian regions with the 

neighbouring border areas;  

⋅  To  support  policy  development  as  well  as  preparation  for  the  implementation  of  the 

Community's cohesion and agricultural policies, with a view to EU membership.  

Under IPA Component I, pre-accession assistance to Croatia will inter alia support under the 
political  criteria  public  administration  reform,  judicial  reform,  and  anti-corruption  policy. 
Assistance  under  the  economic  criteria  will  focus  on  structural  reforms  in  public  finance, 
economic  restructuring,  business  environment,  statistics,  land  reform  and  labour  market 
reform.    In  addition,  pre-accession assistance will support institutional capacity building for 
acquis transposition and implementation according to the priorities identified in the Accession 
Partnership, the screening reports and subsequent negotiations in the different chapters of the 
acquis.  Finally,  capacity  building  can  also  be  provided  for  the  management  of  IPA  projects 
and to re-enforce institutional capacity for the management of EU structural funds. Croatia’s 
participation in Community Programmes will also continue to receive financial support under 
Component I. 
Assistance  to  Cross-border  Cooperation  (CBC)  provided  under  Component  II  aims  at 
improving  co-operation  and  good  neighbourly  relations  of  Croatian  regions  with  the 
neighbouring border areas and familiarising Croatia with the rules and procedures governing 
the  European  Territorial  Cooperation  Objective  under  Structural  Funds.  The  MIPD  foresees 
continuing CBC with Hungary, Italy and Slovenia, and developing bilateral CBC programmes 
with Bosnia and Herzegovina, Montenegro, and Serbia.  
Components  III  and  IV  aim  at  supporting  Croatia  in  policy  development  as  well  as 
preparation for the implementation and management of the Community’s cohesion policy, in 
particular  regarding  the  European  Regional  Development  Fund,  the  Cohesion  Fund  and  the 
European  Social  Fund.  In  terms  of  pre-accession  assistance  under  Components  III  and  IV, 
priorities  comprise  acquis-related 
the 
development of a European transport network together with support to the productive sector, 
in  particular  to  Small  and  Medium-sized  Enterprises  (SMEs);  Component  IV  priorities 
comprise investment in employment, education, social inclusion and human capital formation. 
Component V aims at supporting Croatia in policy development as well as preparation for the 
implementation  and  management  of  the  Community’s  common  agricultural  policy.  
Assistance  under  Component  V  will  target  three  main  priority  axes.  The  first  will  provide 
assistance  to  improve  market  efficiency  and  implementation  of  Community  standards.  The 
second aims at preparing Croatia for the implementation of agri-environmental measures and 
local rural development strategies and the third at the development of the rural economy. 
Coherence  and  concentration  of  assistance  will  be  necessary  for  the  effectiveness  of  IPA 
assistance  under  all  components  where  appropriate  effective  coordination  and 
complementarity with other IPA components will be assured. 

in  environmental  protection  and 

investment 

Table 1: Croatia: Multi-annual Indicative Financial framework (in million €) 

- 25 - 

 
 
 
 
Component  
I. 
Transition 
Assistance  and 
Institution 
Building 
II.  Cross-Border 
Cooperation 
III. 
Development 
IV. 
Resources 
Development 
V. 
Development 
Total 

Regional 

Human 

Rural 

2008 

45.4 

14.7 

47.6 

12.7 

25.6 

146.0 

2009 

45.6 

15.9 

49.7 

14.2 

25.8 

151.2 

2010 

39.5 

16.2 

56.8 

15.7 

26.0 

154.2 

2008-2010 

130.5 

46.8 

154.1 

42.6 

77.4 

451.4 

3.2.2.  Programming exercise 

The 2008 IPA allocations for Croatia are broken down as follows: 

Table  2:  Indicative  financial  allocation  for  Croatia  per  component  for  the  year  2008  (in 
million €) 

Croatia 
I Transition Assistance and Institution Building 
II Cross-border cooperation 

of which CBC Croatia-Bosnia and Herzegovina 
of which CBC Croatia-Montenegro 
of which CBC Croatia-Serbia 
of which CBC Adriatic Programme 
of which CBC Hungary-Croatia 
of which CBC Slovenia-Croatia 
of which Participation of Croatia in ERDF programmes 

III Regional Development 

of which Regional Competitiveness Programme 
of which Transport Programme 
of which Environment Programme 

IV Human Resources Development 
V Rural Development 
TOTAL 

2008 
45.4 
14.7 
1.0 
0.4 
0.8 
6.7 
2.4 
2.9 
0.5 
47.6 
11.6 
18.0 
18.0 
12.7 
25.6 
146 

Programmes for components II, III, IV are adopted for three years and for component V for 7 years. Financial 
commitments are made annually and therefore figures above are just for 2008 

3.2.2.1.  Component I: Transition Assistance and Institution Building 

The  IPA  2008  national  programme  for  Croatia  with  an  IPA  contribution  of  €41.37  million 
was  adopted  by  the  Commission  on  5  November  2008.  It  consists  of  17  projects  that  are 
grouped under 4 strategic priority axes (political and economic criteria, ability to assume the 
obligations of membership, supporting programmes).  

- 26 - 

 
 
 
 
 
 
-  Under  the  political  criteria  the  reform  of  the  judiciary  will  be  addressed  by  the  projects 
"Support to the reform of criminal proceedings" and "Development of the probation service". 
The  projects  "Enhancing  the  capacities  of  the  civil  society  sector  for  the  monitoring  of 
implementation of the EU Acquis" and "Support to Romas" will contribute to progress in the 
area of human rights and the protection of minorities. The public administration reform will 
be addressed by the project "Implementation of the General Administrative Procedure Act". 
- Under the economic criteria, and considering the vital role of the development of statistics in 
providing  relevant  and  accurate  information  and  monitoring  the  reforms  in  many  sectors,  a 
project on selected statistical areas will be supported. 
- As concerns the ability to assume the obligations of membership, assistance under IPA 2008 
will be concentrated on areas of activity with a large volume of legislation to be transposed 
and implemented, preparation to structural funds as well as with investments requirements in 
the  acquis.  This  concerns  the  following  chapters:  Food  safety,  veterinary  and  phytosanitary 
policy; Fisheries; Transport policy; Energy; Social policy and Employment; Regional policy 
and coordination of structural instruments; Justice, freedom and security; Environment. 
-  Supporting  programmes  in  2008  will  continue  to  provide  for  administrative  capacity 
building  for  strategy  development,  project  preparation  and  implementation,  institution 
building  support  and  SAA  and  acquis  implementation  through  a  "Facility  for  Project 
Preparation  and  Reinforcement  of  Administrative  Capacity".  "Participation  in  Community 
Programmes and Agencies" will also continue to receive financial support in 2008. 

Table 3:  Component I - Transition Assistance and Institution Building 2008 for Croatia (in 
million €): 

Priority Axis 
political criteria 

Projects 

the 

reform  of 

to 
Support 
criminal proceedings  
Development  of  the  probation 
services in Croatia  
Implementation  of  the  General 
Administrative Procedures Act  
Civil 
- 
Enhancing  the  capacities  of  the 
the 
civil 
monitoring  of  implementation  of 
the EU Acquis  
Roma  Support  Project  –  Phase 
III  

Facility 

Society 

society 

sector 

for 

economic criteria 

assistance 

Technical 
in 
development  of  selected  areas 
of statistics  

ability to assume obligations of membership 

Continued  Support  to  Capacity 
Strengthening of the Veterinary, 
Phytosanitary  and  Sanitary 
Border Inspection  
Support 
control/eradication 
Republic of Croatia  

to  animal  disease 
the 

in 

- 27 - 

Budget 
10.535 

1.900 

1.635 

1.500 

3.000 

2.500 
1.000 

1.000 
20.871 

3.977 

3.135 

 
 
 
 
 
 
 
 
 
 
 
 
1.857 

1.617 

the  Market 
the  Croatian 

Strengthening 
Component  of 
Fisheries Sector  
Efficient  Functioning  of 
the 
Control  System  for  Roadside 
Inspections  and  Checks  of  the 
Driving  Time,  Breaks  and  Rest 
Periods on the Road and in the 
Undertakings  
Monitoring  dependence  and 
vulnerability  of  energy  supply 
system with scope on security of 
supply  
Croatian  Employment  Service 
Labour Market Training Centre  0.800 
Support  to  the  Management, 
Monitoring  and  Evaluation  of 
the  Structural  Instruments  in 
Croatia  
Blue  Border  Surveillance 
Phase II  
Enforcement 
new 
of 
Environmental  Protection  Act 
harmonised with EU legislation 
in  cases  of  criminal  offences 
against the environment  

0.990 

4.000 

3.450 

the 

- 

1.045 
8.968 

Facility for Project Preparation 
and 
of 
Reinforcement 
Administrative Capacity  
in 
Participation  of  Croatia 
Community  Programmes  and 
Agencies  

3.393 

5.575 
41.374 

supporting programmes 

Total 

3.2.2.2.  Component II: Cross-Border Cooperation 

Under  Component  II,  Croatia  participates  in  multi-annual  cross-border  programmes  (CBC) 
with  neighbouring  IPA  countries:  CBC  '"Croatia-Bosnia  and  Herzegovina",  CBC  "Croatia-
Montenegro" and CBC "Croatia-Serbia". Financing decisions allowing the deployment of IPA 
2008  funding  for  these  programmes  were  adopted  respectively  on  25  July,  17  July,  and  29 
August 2008. 
These cross-border programmes aim at encouraging the creation of cross-border networks and 
partnerships  and  developing  joint  cross-border  actions  with  a  view  to  revitalizing  the 
economy,  protecting  the  nature  and  the  environment  and  increasing  social  cohesion  in  the 
programming area. They also include technical assistance. 
A  programme  financing  the  participation  of  Croatia  in  the  ERDF  European  Territorial  Co-
operation  transnational  programmes  "South-East  Europe"  and  "Mediterranean"  was  also 
funded under the IPA 2008 Cross-border Co-operation component and adopted on 7 October 
2008. 

- 28 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
In 2008, the following multi-annual cross-border programmes between Croatia and Member 
States  were  also  adopted:  CBC  "Adriatic",  CBC  "Hungary-Croatia",  and  CBC  "Slovenia-
Croatia", respectively on 25 March, 13 March and 27 February 2008. 

3.2.2.3.  Components III and IV: Strategic Coherence Framework 

In accordance with the provisions of the Article 154 of the Commission Regulation (EC) n° 
718/2007  Croatia  established  the  Strategic  Coherence  Framework  (SCF)  for  2007-2013 
covering  IPA  Components  III  (Regional  Development)  and  IV  (Human  Resources 
Development). 
Within the Strategic Coherence Framework (SCF)the supporting socio-economic analysis and 
subsequent  strategy  identified  the  key  objectives  and  priorities  implemented  through  four 
multi-annual Operational Programmes (three in component III and one in component IV) with 
a  strong  strategic  focus.  IPA  with,  its  similarities  to  the  European  Regional  Development 
Fund  and  Cohesion  fund,  is  a  precursor  of  Structural  Funds.  The  SCF  is  also  considered  as 
"mini NSRF".  
The  preparation  of  the  SCF  in  Croatia  was  coordinated  by  the  Strategic  Coordinator  who 
consulted the Commission throughout the whole process. The Commission services verified 
the content of the SCF and concluded that it contained all the relevant elements. 

3.2.2.4   Component III: Regional Development 

Three  multi-annual  operational  programmes  were  adopted 
"Regional 
Competitiveness  OP"  adopted  on  29  November  2007,  "Transportation  OP"  adopted  on  7 
December  2007  and  "Environmental  OP"  adopted  29  November  2007.  The  IPA  resources 
allocated to each programme are:  

in  2007: 

COMPONENT III PROGRAMMES  
REGIONAL COMPETITIVENESS 
TRANSPORTATION 
ENVIRONMENTAL  

2007 
11.050,250 
17.000,250 
16.999,500 

2008 
11.600,000 
18.000,000 
18.000,000 

2009 
12.699,500 
18.500,250 
18.500,250 

TOTAL 
35.349,750 
53.500,500 
53.499,750 

The  "Regional  Competitiveness"  OP  consists  of  3  priority  axes:  "Improving  development 
potential  of  the  lagging  behind  regions",  "Enhancing  the  competitiveness  of  the  Croatian 
economy", and Technical Assistance. The "Transportation" OP encompasses 3 priority axes: 
"Upgrading  Croatia's  rail  transport  system",  "Upgrading  Croatia's  inland  waterway  system", 
and Technical Assistance. The "Environmental" OP consists of 3 priority axes: "Developing 
Waste Management Infrastructure for Establishing an Integrated Waste Management System 
in  Croatia",  "Protecting  Croatia's  Water  Resources  Through  Improved  Water  Supply  and 
Integrated Wastewater Management Systems", and Technical Assistance. 
The  strategy  under  component  III  foresees  concentration  of  resources  in  the  transport 
(Transportation  OP),  environment  (Environmental  OP)  and  regional  competitiveness 
(Regional Competitiveness OP) sectors. It covers acquis-related investments in environmental 
protection  (waste  water,  drinking  water  and  waste  management)  and  sustainable  transport 
(railways  and  inland  waterways).  Along  with  these  efforts  directed  at  basic  infrastructure, 
further  assistance  is  aimed  at  modernising  and  restructuring  the  productive  capacity  of 
disadvantaged regions in particular by providing services to enterprises, particularly small and 
medium sized.  
Moreover, under the three Operational Programmes resources will be utilised to introduce into 
the  national  framework  the  strategic  planning  and  management  principles  guiding  the 
implementation of EU structural instruments, also via learning by doing process.  

- 29 - 

 
 
 
 
 
 
Within  each  of  the  OP  a  separate  priority  on  Technical  Assistance  has  been  introduced  to 
support the national structures managing IPA as well as ensuring project preparation of high 
standards.  A  comprehensive  institutional  set  up  (Operating  Structure  consisting  of  a  few 
bodies  specific  for  each  OP/priority)  built  for  IPA  will  continue  with  some  modifications 
under the Structural funds regime. 
The implementation of the three OPs started at the end of 2008, following the signature of the 
related Financing Agreements in November 2008 in the aftermath of the related Decisions on 
conferral.  

Work carried out in 2008 concentrated on the preparation and appraisal of projects/operations. 
Six major project applications in the environment and transport sectors were submitted to the 
Commission.  Following  the  appraisal  of  these  project  applications,  revised  versions  were 
resubmitted. No IPA funding decision for any major projects was adopted in 2008.   

3.2.2.5   Component IV: Human Resources Development 

A multi-annual operational programme "Human Resources Development" under Component 
IV for Croatia was adopted on 7 December 2007 and consists of 4 priority axes: "Enhancing 
access  to  employment  and  sustainable  inclusion  in  the  labour  market",  "Reinforcing  social 
inclusion  of  people  at  a  disadvantage",  "Enhancing  human  capital  and  employability",  and 
Technical Assistance. 

COMPONENT IV  
HUMAN 
DEVELOPMENT 

RESOURCES 

2007 
11.4 

2008 
12.7 

2009 
14.2 

TOTAL 
38.3 

3.2.2.6   Component V: Rural Development 

A  multi-annual  "Programme  for  agriculture  and  rural  development"  (IPARD)  under 
Component V for Croatia was adopted by the Commission on  25 February 2008 and consists 
of  3  priority  axes:  "Improving  market  efficiency  and  implementation  of  Community 
standards", "Preparatory actions for implementation of the agri-environmental  measures  and 
local rural development strategies", and "Development of the rural economy". 
The IPARD programme, with its measures similar to those for Member States some of them 
being compulsory after accession, provides a good base for the preparation of the future post 
accession Rural Development programme. 
The amendments to the programme adopted by the Commission decision on 27 October 2008 
were  essentially  of  technical  nature  and  concerned  mainly  the  adaptation  of  the  financial 
tables to take into account the new financial allocation for 2010 (€26.0 million) according to 
the  MIPD  2008-2010,  the  up-date  of  data  included  in  the  programme  and  the  correction  of 
editorial inconsistencies and mistakes.  

Component 
V 
Rural 
Development 

2007 

25.5 

2008 

25.6 

2009 

25.8 

2010 

26.0 

TOTAL 

102.9 

3.2.3. 

Implementation modalities and structures  

The  European  Commission  and  the  Government  of  the  Republic  of  Croatia  signed  on  27 
August  2007  the  framework  agreement  on  the  rules  for  co-operation  concerning  EC  financial 
assistance to Croatia under IPA.  

- 30 - 

 
 
 
 
 
 
The  Sectoral  Agreement  complementing  the  provisions  of  the  Framework  Agreement  for 
component V  was signed  on 13 October  2008.In  April  2008, the Croatian authorities  notified 
the  European  Commission  of  their  accreditation  of  the  operating  structures  in  charge  of  the 
management  and  implementation  of  the  IPA  components  I  to  IV.  Pursuant  to  these 
notifications,  the  European  Commission  reviewed  the  accreditation  packages  as  well  as  the 
procedures  and  structures  of  the  bodies  concerned,  resulting  in  six  Decisions  on  conferral  on 
Croatia of management powers for the decentralised management of IPA components I to IV: 
- 

Conferral  for  IPA  Component  I  Transition  Assistance  and  Institution  Building:   
Commission Decision of 28 October 2008; 
Conferral for IPA Component II Cross-border cooperation: Commission Decision of 14 
November 2008.  
Conferral  for  Operational  Programmes  under  IPA  Component  III:  Regional 
Development.  
Environmental,  Regional  Competitiveness  programmes  respectively:  Commission 
Decisions of 29 October 2008;  
Transportation programme:  Commission Decision of 3 November 2008;   
Conferral  for  IPA  Component  IV:    Human  resources  development:  Commission 
Decision of 1 December 2008. 

- 

- 

- 

These decisions constitute the triggering factor for the deployment of the assistance under the 
IPA components I to IV, starting with the IPA 2007 funding. Indeed the financing agreements 
for  the  related  2007  programmes  that  operate  under  decentralised  management  could  not  be 
signed as long as the Decisions were not adopted. This effectively means that Croatia did not 
deploy  any  IPA  assistance  in  2008.Under  the  arrangements  embedded  in  the  aforementioned 
Decisions and financing agreements, it is the responsibility of Croatia to manage IPA financial 
activities  in  a  decentralised  mode.  It  is  to  be  noted  that  ex  ante  controls  operated  by  the 
Delegation remain an integral part of this decentralised system for these components. 
Moving  to  a  decentralised  system  is  also  as  a  crucial  step  in  the  Croatian  administrations’ 
learning process. This enables them to build in the requirements that they will need to meet in 
order  for  them  to  pass  to  the  next  stage,  that  is  to  say  full  decentralisation  with  only  ex  post 
controls by the Commission. Croatia envisages moving to full decentralisation in 2010.  
The last Decisions that are awaited are on conferral of management powers for the component 
V  (agriculture  and  rural  development)  that  will  require  more  time,  as  in  this  case,  and 
differently  from  the  other  Decisions,  conferral  will  be  ensured  on  the  principle  that  the 
Commission will not operate any more any ex ante control on the transactions. This therefore 
requires  an  even  higher  level  of  accountability  and  preparedness  on  the  side  of  the  Croatian 
administration. The Croatian Authorities have decided to split the 7 measures under the IPARD 
Programme  into  three  different  accreditation  packages.  Therefore,  three  Conferral  Decisions, 
covering  the  various  IPA  component  V  measures,  are  expected  to  be  adopted  respectively  in 
2009 (one decision) and 2010 (two decisions). 
On  12  November  2008  the  Commission  received  its  first  accreditation  package  for  this 
component  and  began  to  review  t  according  to  the  requirements  of  the  accreditation  criteria 
included  in  the  framework  and  Sectoral  Agreement,  with  a  view  to  conferral  decisions.    The 
Conferral  decision  for  the  first  three  measures:  "Investments  in  agricultural  holdings  to 
restructure  and  to  upgrade  to  Community  standards",  "Investments  in  the  processing  and 
marketing of agriculture and fishery products to restructure those activities and to upgrade them 
to  Community  standards"  and  "Improvement  and  development  of  rural  infrastructure"  was 
expected  for  the  beginning  of  the  second  semester  of  2009  and  two  further  decisions  were 
expected in 2010 for four remaining measures. 

- 31 - 

 
 
3.2.4.  Overview of IPA programmes implemented 

The  implementation  of  programmes  effectively  starts  once  the  conferral  of  decentralised 
management  decision  per  component  is  taken  by  the  Commission  and  the  Framework  and 
Financing Agreements have entered into force.  
As  specified  in  section  3.2.3  the  conferral  of  management  powers  for  the  decentralised 
management of IPA components I to IV in Croatia were granted by the respective Commission 
decisions at the end of 2008. These decisions constitute the triggering factor for the deployment 
of the assistance under the IPA components I to IV, starting with the IPA 2007 funding.  Indeed 
the  financing  agreements  for  the  related  2007  programmes  that  operate  under  decentralised 
management  could  not  be  signed  as  long  as  the  Decisions  were  not  adopted.  This  effectively 
means that Croatia only started deploying IPA assistance in the year 2009. 

3.2.5.  Participation in Community Programmes and Agencies 

A  Protocol  to  the  SAA  on  a  Framework  Agreement  on  the  general  principles  for  Croatia’s 
participation in Community Programmes was signed in November 2004. In accordance with 
Articles 2 and 5 of this Framework Agreement, Croatia shall pay a financial contribution to 
the  budget  of  the  Community  programmes  in  which  it  participates  and  may  request  IPA 
assistance in this regard.  
€4.600.000  were  allocated  from  IPA  2007  component  I  to  co-finance  the  participation  of 
Croatia in, inter alia, the following indicative list of Community programmes and Agencies in 
2008 or 2009.-In 2008: CUSTOMS 2013, Fiscalis 2013, Seventh Framework programme for 
Research,  Technological  Development  and  Demonstration  Activities,  Competitiveness  and 
Innovation  Framework  programme  (CIP),  Programme  of  Community  Action  in  the  field  of  
Health, European Monitoring Center for drugs and drug Addiction (EMCDDA).  
-In 2009: Europe for Citizens, PROGRESS, Marco Polo II and Culture. 
€5.575 million were allocated from IPA 2008 Component I to co-finance the participation of 
Croatia in, inter alia, the following indicative list of Community Programmes and Agencies in 
2009:  CUSTOMS  2013,  Fiscalis  2013,  IDABC,  Seventh  Framework  Programme  for 
Research,  Technological  Development  and  Demonstration  Activities,  Competitiveness  and 
Innovation Framework Programme (CIP), Civil Protection Financial Instrument, Media 2007, 
Programme  of  Community  Action  in  the  Field  of  Health,  Framework  Programme 
Fundamental  Rights  and  Justice,  Fundamental  Rights  Agency  (FRA)  and  European 
Environment Agency (EEA). 

3.3.  Monitoring and Results 

3.3.1.  State  of  play  for  IPA  Monitoring  Committee  and  Sectoral  Monitoring 

Committees 

-IPA Monitoring Committee 

The first yearly IPA Monitoring Committee took place on 2 July 2008 and was preceded 
in  May  /  June  by  the  first  sessions  of  the  IPA  sectoral  committees.  In  addition  to  the 
adoption of its rules of procedure, the points on the agenda covered the progress made 
at  that  time  in  the  IPA  accreditation  process  for  all  components,  as  well  as  the 
preparations for the implementation of the IPA programmes. 

-Sectoral Monitoring Committee 

The  IPA  Transition  Assistance  and  Institution  Building  Committee  convened  twice  in 
2008,  on  26  May  and  16  December.  The  first  committee  was  held  before  conferral  on 
Croatia of management powers for IPA component I and focused on the progress made 

- 32 - 

 
 
at that time in the IPA accreditation process for IPA component I, preparations for the 
implementation of the IPA 2007 national programme (component I) and programming 
of IPA 2008 national programme (component I). The  second  committee was held after 
conferral and deliberated on follow up actions needed in order to address Commission's 
findings associated to its decision on conferral, as well as on proposals for some project 
reallocations under IPA 2007 national programme (component I). 

As  regards  IPA  Cross-Border  Cooperation  Component  II,  the  first  Joint  Monitoring 
Committees  were  convened  in  2008  to  prepare  calls  for  proposals  under  the  following 
programmes:  CBC  "Slovenia-Croatia"  (in  May),  CBC  "Hungary-Croatia"  (in  June),  CBC 
"Adriatic" (in July), CBC "Croatia-Bosnia and Herzegovina" (in November), CBC "Croatia-
Montenegro"  (in  November),  CBC  "Croatia-Serbia"  (in  November),  as  well  as  under  the 
ERDF  transnational  programmes  "South-East  Europe"  (in  February  and  September)  and 
"Mediterranean" (in January, October and December). 
In  2008  the  second  and  the  third  round  of  Sectoral  Monitoring  Committees  for  all  three 
operational programmes under component III were held. The Rules of Procedure for the three 
SMCs  were  adopted.  The  discussion  with  the  Operating  Structures  focused  on  the  planning 
and monitoring tools, implementation arrangements and project/operation preparations. 

The Sectoral monitoring Committees under IPA component IV took place on 4 June and 11 
December 2008. 

The Sectoral Monitoring Committees under IPA Component V met twice in 2008 – on 3 June 
2008  and  on  18  November  2008.  During  the  first  meeting  the  rules  of  procedures  were 
adopted. On both committees the preparation and a state of play for accreditation of relevant 
bodies  and  measures  were  presented.  The  implementation  of  monitoring  and  evaluation 
system, communication plan, programme amendments and relevant  measures was  presented 
and discussed. 

3.3.2.  Annual and final reports on implementation  

-Sectoral Annual Reports 

The  first  yearly  report  of  the  Transition  Assistance  and  Institution  Building  (TAIB) 
Committee  was  established  in  June  2008  in  the  aftermath  of  the  IPA  TAIB  sectoral 
committee of 26 May 2008. As the implementation of the IPA programmes had not yet 
started,  the  Croatian  authorities  mainly  referred  in  their  report  on  progress  made  at 
that  time  in  the  IPA  accreditation  process  for  component  I,  as  well  as  on  the 
preparations  for  the  implementation  of  the  IPA  2007  national  programme  and 
programming on IPA 2008 national programme. 

The  first  Sectoral  Annual  Implementation  Reports  covering  2007  activities  in  the  three 
operational  programmes  under  component  III  and  in  the  operational  programme  under 
component IV were submitted in 2008 to the Commission. The content of the reports reflected 
the  activities  of  very  limited  nature  concerning  implementation  (actual  IPA  implementation 
on  the  ground  in  terms  of  project  implementation  did  not  start  in  2008).  The  Commission, 
following  inter-service  consultations,  expressed  a  favourable  opinion  on  the  content  of  the 
reports. 

For  component  V  under  Article  193  of  Regulation  No  718/2007  the  sectoral  annual  report 
shall  be  submitted  within  six  months  of  the  end  of  each  full  calendar  year  of  programme 
implementation. Consequently, in 2008 no report was delivered as the implementation of the 
IPARD programme has not yet started.  

- 33 - 

 
 
-IPA Annual Report 

The  first  IPA  annual  report  was  established  in  August  2008  in  the  aftermath  of  the  IPA 
Monitoring Committee of 2 July 2008. As the implementation of the IPA programmes had not 
yet  started,  the  Croatian  authorities  mainly  referred  in  their  report  on  progress  made  at  that 
time in the IPA accreditation process for all components, as well as on the preparations for the 
implementation of the IPA programmes. 

3.3.3.  Evaluation results and lessons learned  

No IPA evaluation was carried out in 2008, as the first IPA programmes were only adopted in 
the end of 2007 and implementation did not start in 2008. 

3.3.4.  Sectors with positive results- Success story  

No IPA projects were finalised in the course of 2008. 

- 34 - 

 
 
4. 

FORMER YUGOSLAV REPUBLIC OF MACEDONIA 

4.1. 

The year in review 

4.1.1.  Political developments 

The former Yugoslav Republic of Macedonia made some progress in the course of 2008 but 
did not yet meet the political criteria. The parliamentary elections of 2008 did not meet key 
international  standards  and  the  recommendations  of  the  Organisation  for  Security  and 
Cooperation  in  Europe  (OSCE)/Office  for  Democratic  Institutions  and  Human  Rights 
(ODIHR)  need  to  be  fully  addressed.  The  lack  of  constructive  political  dialogue  between 
major  political  parties  and  actors  adversely  affected  the  functioning  of  the  political 
institutions;  increasing  efforts  to  foster  political  dialogue  are  now  being  made.  Steps  have 
been taken to address key Accession Partnership priorities and further efforts are required. 
The implementation of the Ohrid Framework Agreement is contributing to the consolidation 
of democracy and the rule of law. The adoption of a law on languages marked an important 
step  forward  in  relations  among  the  ethnic  communities  of  the  country.  Further  efforts  in  a 
constructive spirit are needed to fulfil the objectives of the Ohrid Agreement. 
The  conduct  of  the  early  parliamentary  elections  of  2008  was  marred  by  violence  and 
irregularities.  The  authorities  began  to  bring  the  perpetrators  to  justice  and  to  address  the 
OSCE/ODIHR  recommendations  on  the  conduct  of  elections,  notably  by  amending  the 
electoral  code.  A  new  government  coalition  of  a  multi-ethnic  character  was  established  in 
July. Opposition parties boycotted the new Parliament for a prolonged period and Parliament 
made  extensive  use  of  emergency  procedure  to  adopt  legislation.  Significant  further  efforts 
are needed to improve and sustain political dialogue. 
As regards public administration reform there has been some progress with the introduction of 
salary incentives and the adoption of a continuous training system, as required by the law on 
the civil service. However, little progress has been made to ensure that senior recruitments are 
based  on  professional  qualifications.  Priority  needs  to  be  given  to  creating  a  stable, 
professional and merit-based civil service. The role of the Civil Servants Agency needs to be 
strengthened  and  the  capacity  of  the  human  resources  units  in  line  ministries  needs  to  be 
increased. Implementation of police reform progressed. The eight new regional commanders 
and  all  38  new  local  commanders  were  appointed  as  required  by  law.  Training  of  police 
officers continued and human resource management improved. However, the politicisation of 
the senior levels of the police in some areas raises serious concerns. 
Good  progress  was  made  on  judicial  reform.  The  new  Court  of  Appeal  and  the  new 
Administrative  Court  and  the  Judicial  Council  were  functioning  and  the  new  Council  of 
Public Prosecutors started to meet. The Academy for training judges and prosecutors was in 
place and new IT systems were introduced into the courts. However, further strengthening of 
the  judiciary  is  required  as  regards  its  independence,  efficiency,  human  resources  and 
budgetary  framework.  The  vacancies  in  the  prosecution  service  need  to  be  filled.  Case 
backlogs  persist  and  a  track  record  of  implementation  of  the  recent  reforms  remains  to  be 
established,  in  particular  as  regards  the  impartiality,  accountability  and  efficiency  of  the 
judiciary. 
Further progress was made in implementing anti-corruption policy. The government's Action 
Plan  was  allocated  a  specific  budget.  Special  investigation  measures  may  be  used  in 
corruption  cases.  An  Action  Plan  against  conflict  of  interest  was  adopted.  There  were 
convictions  in  some  high-profile  cases.  The  perception  of  corruption  somewhat  improved. 
However,  corruption  remained  widespread  and  constituted  a  particularly  serious  problem. 
Further steps are necessary, in particular to strengthen operational coordination amongst law 

- 35 - 

 
 
enforcement  agencies  and  to  implement  provisions  on  financing  of  political  parties  and 
campaign financing 

4.1.2.  Macroeconomic developments and structural reforms 

There has been further progress towards establishing a functioning market economy. It should 
be able to cope with competitive pressures and market forces within the Union in the medium 
term, provided that it vigorously implements its comprehensive reform programme in order to 
reduce  significant  structural  weaknesses.  Despite  the  relative  insulation  of  the  country  from 
the  international  financial  markets,  it  will  not  be  immune  by  the  global  economic  crisis. 
Following the positive economic trends until 2008, the second semester  of the year showed 
the first negative signals and the forecast for 2009 is negative especially concerning growth, 
unemployment  rate  as  well  as  fiscal  and  current  account  deficit.  Despite  this  situation  the 
Government  plans  a  policy  of  further  fiscal  expansion,  which  risks  worsening  the  external 
vulnerabilities.  

4.1.3.  Progress in meeting the acquis communautaire 

The  former  Yugoslav  Republic  of  Macedonia  made  further  efforts  to  improve  its  ability  to 
assume  the  obligations  of  membership.  There  was  some  progress  in  the  fulfilment  of  the 
priorities of the Accession Partnership. However, the country still faced major shortcomings 
in  implementing  and  effectively  enforcing  legislation.  Adequate  human  and  financial 
resources for the full implementation of the acquis were lacking. 

4.2. 

IPA in 2008 

4.2.1.  MIPD 2008-2010 

Based on the assessment of strategic needs and priorities set out in section 1 the pre-accession 
assistance strategy for the period 2008-2010 is concentrated on three areas of activity: 

(1) 

Support to Institution Building 

(2) 

(3) 

Improve cross-border cooperation 

Prepare for participation in the Community's cohesion and rural development policy 

Table  1:  the  former  Yugoslav  Republic  of  Macedonia:  Multi-annual  Indicative  Financial 
Framework (in million €) 

Component 

2008 

2009 

2010 

I.  Transition  Assistance  and 
Institution Building 
II. Cross-Border Cooperation 
III. Regional Development 
IV. 
Human 
Development 
V. Rural Development 
Total  

Resources 

39.9 

5.3 
12.3 

6.0 

6.7 
70.2 

38.1 

5.6 
20.8 

7.1 

10.2 
81.8 

36.3 

5.7 
29.4 

8.4 

12.5 
92.3 

2008-
2010 

114.3 

16.6 
62.5 

21.5 

29.4 
244.3 

- 36 - 

 
 
 
 
 
4.2.2.  Programming exercise 

Table  2:  Indicative  financial  allocation  for  the  former  Yugoslav  Republic  of 
Macedonia per component for the year 2008 (in million €) : 

2008 
41.1 
4.1 
1.23 

1.34 

1  

transferred 

to 
-  1.2 

0.5  
(funds 
Component  1 
million) 
12.3 
9.25 
2.312 
0.738 
6.0 
2.698 
1.8 
1.2 
0.302 
6.7 
5.226 

1.206 

0.268 
70.2 

former  Yugoslav  Republic  of 

former  Yugoslav  Republic  of 

former  Yugoslav  Republic  of 

Former Yugoslav Republic of Macedonia  
Component  
I. Transition Assistance / Institution Building 
II. Cross Border Cooperation  
Of  which  The 
Macedonia/BG 
Of  which  The 
Macedonia/GR 
Of  which  The 
Macedonia/AL 
Of which ERDF programmes – Translational 
Of which The former Yugoslav Republic of Macedonia/ 
northern  border  with  Serbia  and  Kosovo  (UNSCR 
1244) 
III. Regional Development  
Of which Priority 1 - Transport Programme  
Of which Priority 2 - Environment Programme  
Of which Measure 3 - TA 
IV. Human Resources Development  
Of which Priority 1 -  Reducing Unemployment 
Of which Priority 2 -  Education and Training 
Of which Priority 3 - Social Inclusion 
Of which  Measure 4 - TA 
V. Rural Development 
Of  which    Priority  axis  1  –  Market  efficiency  and 
Implementation of Community Standards 
Of  which    Priority  axis  3  –  Development  of  Rural 
Economy 
Of which  Measure 4 - TA 
TOTAL: 

- 37 - 

 
 
 
 
Programmes  for  components  II,  III,  IV  and  V  are  adopted  for  three  years.  Financial 
commitments are made annually and therefore figures above are just for 2008. 

4.2.2.1.  Component I: Transition Assistance and Institution Building 

Table  3:  Component  I  -  Transition  Assistance  and  Institution  Building  2008  for  the  former 
Yugoslav Republic of Macedonia (in million €): 

Priority axis 

Projects 

I Priority axis 1 Political Criteria 

1.1 DIS 

Budget 

14.100.000 

1.600.000 

1.2 Support to fiscal decentralisation 

1.350.000 

1.3 Further support to Judiciary 

1.600.000 

1.4 Integrated Border Management 
1.5  Democracy  and  Fundamental 
Rights 

5.950.000 

2.400.000 

II Priority axis 2 Socio-Economic Development 

1.6 Civil Society 

2.1 MAPAS 

2.2 BAS- TAM 

III Priority Axis 3 ACQUIS 

3.1 Free Movement of Goods 
3.2 Public Procurement 
3.3 Customs 
3.4 Agriculture 
3.5 Veterinary 

3.6 Environment 

1.200.000 
3.100.000 
1.000.000 

2.100.000 

14.900.000 
1.800.000 
1.200.000 
3.500.000 
2.000.000 
3.300.000 

3.100.000 

IV Supporting Programmes  

5.022.001 

4.1  Project  Preparation  and  Support 
Facility  
4.2  Community  Programmes  and 
Agencies 

3.022.000 

2.000.000 

- 38 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL 

37.122.001 

The  National  programme  under  the  IPA  –  Transition  Assistance  and  Institution  Building 
Component  for  the  year  2008  aims  at  providing  assistance  for  political  criteria,  socio-
economic  criteria,  ability  to  assume  the  obligations  of  EU  membership  and  support  to 
programming and participation in Community programmes and Agencies. 
The  relevant  Financing  Agreement  with  the  former  Yugoslav  Republic  of  Macedonia  was 
signed on 23 February 2009.The Framework Agreement between the European Commission 
and  the  former  Yugoslav  Republic  of  Macedonia,  which  gives  the  legal  and  financial 
framework  for  the  implementation  of  all  IPA  programmes  between  2007  and  2013,  was 
signed  on  30  October  2007.  The  necessary  ratification  by  the  Parliament  took  place  on  30 
January 2008. 
Under political criteria the 2008 National programme will provide assistance to contribute to 
strengthen  the  capacity  of  the  institutions  to  manage  and  implement  the  Operational 
Programmes,  support  the  process  of  fiscal  decentralization,  strengthen  an  independent  and 
efficient judicial system and to the development of integrated border management capacities 
in accordance with the European Schengen standards. It will also support the participation of 
the civil sector in the decision making process and in providing social services. Under Socio-
economic Requirements the programme will provide assistance to promote the development 
and sustainability of SMEs in the country and to reinforce the institutional capacity to regulate 
and  supervise  fully  funded  pension  system  institutions.  The  support  under  the  priority  axis 
"ability  to  assume  the  obligations  of  membership"  will  include  among  others  support  to  the 
public  procurement  system,  support  to  the  improvement  of  the  quality  infrastructure  in  the 
areas  of  accreditation,  standardization  and  metrology  as  well  as  the  development  of  the 
administrative  capacity  to  adopt  and  implement  the  acquis  in  the  areas  of  agriculture 
environment  and  veterinary  services.  Additionally  the  programme  supports  the  participation 
of the country in certain Community Programmes. 

4.2.2.2.  Component II: Cross-Border Cooperation 

New financial allocations were approved in 2008 to support three bilateral CBC programmes 
between  the  former  Yugoslav  Republic  of  Macedonia  and  Albania,  and  with  neighbouring 
Member States Bulgaria and Greece. Besides, IPA Component II also continued financing the 
participation  of  the  country  in  the  ERDF  European  Territorial  Co-operation  transnational 
programme "South-East Europe". 

4.2.2.3.  Components III and IV: Strategic Coherence Framework 

As  required  by  Article  154  of  Commission  Regulation  (EC)  N°  718/2007,  the  former 
Yugoslav Republic  of  Macedonia  prepared a Strategic Coherence Framework (SCF) for  the 
period  2007-2013,  covering  IPA  components  III  and  IV.  Its  purpose  is  to  set  the  overall 
strategic framework for programming of resources in the context of the national priorities for 
social and economic development and Community priorities for cohesion, thus constituting a 
key  reference  document  for  programming  IPA  regional  development  and  human  resources 
development components. The SCF is a key document to introduce structural funds strategic 
planning to candidate countries (a "mini NSRF"), reinforcing the role of IPA assistance under 
components  III  and  IV  as  a  precursor  to  structural  funds.  The  preparation  of  the  Strategic 
Coherence  Framework  was  coordinated  by  the  Strategic  Coordinator  for  IPA  regional 
development  and  human  resources  development  components.  Throughout  its  preparation 
extensive coordination has taken place within the national administration, particularly the line 
ministries who will be involved in the implementation of components III and IV programmes. 
Once  finalised,  it  was  transmitted  to  the  Commission  for  information  and  verification  of 
consistency with the requirements of the regulation, but the Strategic Reference Framework 

- 39 - 

 
 
 
 
remains  a  national  document.  Over  the  period  2007-2013,  assistance  under  Component  III 
will be rebalanced from transport sector to environment sector. The percentage of resources 
allocated  to  the  environment  sector  will  be  progressively  aligned  with  other  candidate 
countries,  in  line  with  the  needs  of  the  country,  the  development  of  adequate  strategies  and 
investment planning and the capacity to prepare and implement infrastructure investments in 
the environment sector. 

4.2.2.4.  Component III: Regional Development 

The  multi-annual  Operational  Programme  (OP)  for  Component  III  was  prepared  by  the 
national authorities during the year 2007 in close cooperation with the Commission. The OP 
obtained the favourable opinion of the Coordination Committee of the Structural Funds. The 
Regional Development OP was adopted by Commission Decision on 29 November 2007.  

Component III 
III - Regional Development 

2007 
7.4 

2008 
12.3 

2009 
20.8 

Total 
40.5 

Its  overall  objective  is  to  support  the  sustainable  development  of  the  country  through  the 
improvement  of  transport  and  environment  infrastructure.  Assistance  in  the  transport  sector 
focuses  on  the  continuation  of  the  development  of  the  South  East  Europe  Core  Regional 
Transport  Network  (corridors  VIII  and  X).  This  strategy  is  strongly  supported  by  IFIs  who 
provide  substantial  funding  (namely  the  European  Investment  Bank  (EIB)),  to  permit  the 
completion of strategic transport corridors which will benefit the whole region. The priorities 
shall  be  progressively  shifted  from  corridor  X  to  corridor  VIII  as  well  as  from  road  to  rail. 
Concerning  assistance  in  the  environment  sector,  clearly  targeted  investments  will  focus  on 
waste  water  treatment  and  solid  waste  management  where  the  impact  to  the  population  and 
natural environment is the greatest. Within the operational programme, a separate priority on 
technical  assistance  has  been  introduced,  to  support  national  structures  managing  IPA, 
including  ensuring  project  preparation  of  high  standards  for  current  programmes  and  for 
future programming periods.  
The institutional set-up which has been set in place for the management of IPA component III 
programme concentrates financial management in the Ministry of Finance (Central Financing 
and  Contracting  Department,  National  Fund)  that  delegates  some  technical  tasks  to  the  line 
ministries concerned (transport and environment). 

4.2.2.5.  Component IV: Human Resources Development 

Concerning  Component  IV,  the  OP  "Human  Resources  Development"  was  adopted  on  7 
December 2007. It encompasses three priority axis: "Employment – Attracting and retaining 
more people  in employment",  Education and  Training – Investing in human capital through 
better education and skills", and "Social Inclusion – Promoting an inclusive labour market".  

Component IV 
IV – Human Resources Development 

2007 
3.2 

2008 
6.0 

2009 
7.1 

Total 
16.3 

4.2.2.6.  Component V: Rural Development  

For  Component  V,  a  multi-annual  programme  for  the  Rural  Development  "IPARD 
Programme  for  2007-2013"  was  adopted  in  20083  .    The  IPARD  programme  consists  of  3 
priority  axes:  "Improving  market  efficiency  and  implementation  of  Community  standards", 
"Preparatory  actions  for  implementation  of  the  agri-environmental  measures  and  local  rural 
development strategies" and "Development of the rural economy".  

3     The programme was adopted by the Commission Decision C/2008/677 on 25 February 2008. 

- 40 - 

 
 
 
 
                                                 
It should also be noted that the first modification of the IPARD Programme4 took place during 
2008. The proposed amendments concerned the inclusion of an additional amount for the year 
2010, as well as a number of technical modifications in order to facilitate the implementation 
of the Programme and  the  accreditation of the operating structure. The first modification of 
the IPARD Programme received a positive opinion of the Rural Development Committee in 
September 2008. 

Component V 
V–Rural 
Development 

2007 
2.1 

2008 
6.7 

2009 
10.2 

2010 
12.5 

TOTAL 
31.5 

4.2.3. 

Implementation modalities and structures 

The IPA Regulation stipulates that implementation of Components III, IV and V is subject to 
the conferral of management by the Commission to the beneficiary country. This is expected 
to  take  place  in  the  second  half  of  2009.  For  Components  I  and  II,  direct  centralised 
management – i.e. the Commission (EC Delegation to Skopje) acting as contracting authority 
on behalf of the beneficiary country – is allowed for an initial phase as long as conferral of 
management  power  (decentralised  management)  has  not  been  granted.  In  2008  the 
Commission  supported  through  CARDS  the  national  authorities  in  their  preparation  for 
decentralised  management.  Assistance  was  provided  to  the  structures  and  authorities  as 
defined  in  article  21  of  the  IPA  Implementing  Regulation  to  prepare  for  their  accreditation. 
This is being done via intensive training and hands-on support for the elaboration of manual 
of procedures, programme operational guidelines and implementing agreements amongst the 
different  structures  and  authorities.  After  a  self-assessment  exercise  performed  by  the 
National Authorities during the first quarter of 2008, to verify that the system was complying 
with the IPA Regulation, the compliance assessment phase carried out by an external auditor 
started  in  August  and  was  finalised  in  December  2008.  The  former  Yugoslav  Republic  of 
Macedonia's participation in horizontal nuclear safety, customs and education programmes is 
also  funded  from  its  component  I  envelope.  These  programmes  are  not  included  in  the 
component I national programme as they will are being implemented on a multi-country basis 
and be managed centrally by the European Commission in Brussels.  

4.2.4.  Overview of IPA programmes implemented 

Table 4: The former Yugoslav Republic of Macedonia-Status of financial assistance 
at the end of December 2008 (in million €) 

Allocated  Contracted RAC 
8.681 
34.942 

26.261 

%Contracted RAL 
24.8 % 

32.043 

%Paid 
8.3 % 

4.879 

37.122 

4.076 

0 

0 

0 

4.879 

0 % 

4.879 

0 % 

37.122 

0 % 

37.122 

0 % 

4.076 

0 % 

4.076 

0 % 

IPA 2007 
Comp 1 
IPA 2007  
Comp 2 
IPA 2008 
Comp 1  
IPA 2008 
Comp 2 

4   The first modification of the IPARD Programme was adopted by the Commission decision C/2008/8290 on 

17 December 2008. 

- 41 - 

 
 
 
 
 
 
                                                 
4.2.4.1.  Component I: Transition Assistance and Institution Building 

The year 2008 was a year of preparation for implementation. This refers to both the building-
up of the necessary human resources as well as to the launch of tenders, since the transfer of 
CARDS  files  from  the  European  Agency  for  Reconstruction  to  the  Delegation  occurred  in 
September  2008.  As  for  the  actual  figures  of  Component  I  contracted  and  disbursed  in  the 
period January – December 2008, the situation was as follows: 

The contracted percentage of 25% refers to the "Support to the implementation of the Police 
Reform Strategy" project fiche which started in 2008 and a number of Framework Contracts, 
launched  under  "Project  Preparation  Facility  Support"  fiche,  needed  for  preparation  of  the 
respective terms of reference/twinning fiches and tender dossiers. 
The following Framework Contracts were launched through the Project Preparation Facility:  

Project Preparation Facility 

1.  FWC  to  prepare  ToR  and  Twinning  Light  for  PAR  – 

General Secretariat 

2.  FWC to prepare ToR for PAR – Civil Servants Agency  
3.  FWC to prepare ToR and Twinning for Energy Regulator 
4.  FWC  to  prepare  ToR  and  Twinning  Light  for  Insurance 

Supervisory Agency  

5.  FWC to prepare ToR for the Administrative Court 
6.  FWC  to  prepare  ToR  for  TA  and  Twinning  Light  for 

Taxation Reforms 

Status in 2008 
Contracted  

contracted  
not 

Contracted  
Contracted  
Not 
(ISA 
established yet) 
Contracted 
Contracted  

7.  FWC to prepare ToR for Municipal Awards 
8.  FWC to prepare ToR for TA for Statistics  
9.  FWC to prepare ToR for IPA Training Facility 
10. FWC to prepare ToR and Twinning Light for decentralised 

Contracted 
Contracted  
Contracted  
Not contracted  

management 

11. FWC to prepare ToR for Local Infrastructure 
12. TA for preparation of Investment project for WW collection 

Contracted 
Short listing  

and Treatment in Prilep 

In  the  course  of  2008,  the  EC  Delegation  undertook  all  necessary  measures  to  prepare  the 
tender  dossiers  for  projects  such  as  statistics,  energy  regulator  commission,  taxation, 
administrative  court,  public  administration  reforms,  and  local  infrastructure.  The  respective 
tender  invitations  will  be  launched  in  2009.The  delayed  implementation  of  the  Framework 
Contract  for  drafting  a  Terms  of  Reference  for  a  Technical  Assistance  and  a  fiche  for 
Twinning  Light  in  the  area  of  insurance  supervision  is  due  to  the  fact  that  the  Agency  for 
Supervision  of  Insurance  was  not  yet  set  up.  Another  framework  contract  that  was  not  yet 
launched  is  the  one  for  decentralised  management,  due  to  the  fact  that  the  CARDS  2006 
technical assistance (TA) for setting up the decentralised management system will be ongoing 
until July 2009.  
The  reason  for  not  contracting  the  three  major  projects  in  the  customs  sector  (€2.4  million) 
was  the  repetition  of  the  short  listing  procedure,  which  was  re-completed  only  in  October 
2008, as an earlier draft of the shortlist had been rejected by the EC Delegation. The launch of 
the three tenders is scheduled for the 1st quarter of 2009. 

4.2.4.2.  Component II: Cross-Border Cooperation 

The implementation of all IPA CBC programmes is lagging behind. In spite of the fact that 
the  four  programmes  were  adopted  towards  the  end  of  2007,  and  all  respective  Financial 

- 42 - 

 
 
 
 
 
Agreements were signed in 2008, joint management structures were not in place, therefore no 
call for proposal could yet be launched and contracting deadlines for 2007 funds are getting 
closer. 

The Cross Border Institution Building programme (CBIB) phase II started end of November 
2008. This TA programme aims at improving regional co-operation in the Western Balkans 
by developing institutional and project preparation capacities in relation to IPA Component II. 

4.2.4.3.  Component III: Regional Development 

There  was  no  implementation  of  IPA  projects  under  Component  III  in  2008.  Some 
preparatory activities have however started mainly related to the preparation and submission 
to the EC of the IPA applications for two major projects under the "Regional Development" 
Operational Programme. 

4.2.4.4.  Component IV: Human Resources Development 

There was no implementation of IPA projects under Component IV in 2008 

4.2.4.5.  Component V: Rural Development 

The  year  2008  was  the  year  of  the  preparation  for  accreditation  of  the  IPARD  Operational 
Structure  (Managing  Authority  and  IPARD  Agency).  In  2008  there  was  no  programme 
implementation under Component V, due the fact that the IPARD operational bodies were not 
ready for  conferral  of  management.  Under the  IPA, at the end of 2008,  the  IPARD  was  the 
only component to be implemented on a fully decentralised basis. 

In view of preparation for conferral the management of aid without ex ante control, the audit 
team from the DG AGRI responsible for verification of compliance with accreditation criteria 
made two Advisory Missions to the former Yugoslav Republic of Macedonia during 2008.  

4.2.5.  Participation in Community Programmes and Agencies 

A Protocol to the SAA on a Framework Agreement on the general principles for participation 
in Community Programmes was signed in November 2004. In accordance with Articles 2 and 
5  of  this  Framework  Agreement,  the  former  Yugoslav  Republic  of  Macedonia  shall  pay  a 
financial  contribution  to  the  budget  of  the  Community  programmes  in  which  it  participates 
and may request IPA assistance in this regard. IPA funds may cover up to 90% of the country 
"entry tickets" to a Community programme or Agency. 
€1.800.000 was allocated from IPA 2007 component I to co-finance the participation of the 
former  Yugoslva  Republic  of  Macedonia  in,  inter  alia,  the  following  indicative  list  of 
Community  programmes  and  agencies  in  2008  or  20095:  PROGRESS,  Europe  for  Citizens, 
Media, Culture, life +, Fiscalis 2013, CUSTOMS 2013. 
The  IPA  Programme  2008  foresees  a  Community  contribution  of  €2.000.000  to  the 
participation  of  the  former  Yugoslav  republic  of  Macedonia  in,  inter  alia,  the  following 
indicative  list  of  Community  programmes  and  Agencies  in  2009  or  the  subsequent  years: 
Seventh  Research  Framework  Programme,  CIP-EIP,  ICT,  IEE,  PROGRESS,  Europe  for 
Citizens, Culture, Media, Fiscalis, CUSTOMS, Health, Life-long Learning, Youth in Action, 
European  Monitoring  Centre  for  Drugs  and  Drug  Addiction  (EMCDDA),  European 
Fundamental  rights  Agency  (FRA),  Financial  Instrument  for  Civil  Protection,  European 
Environmental Agency (EEA). 

5 "Entry tickets" for 2008 for the Seventh Framework Research programme and entrepreneurship and Innovation 
of  theCopmpetitiveness  and  Innovation  Framework  Programme  (CIP-EIP)  was  financed  through 
CARDS. 

- 43 - 

 
 
                                                 
.  

4.3.  Monitoring and Results  

4.3.1.  State  of  play  for  IPA  Monitoring  Committee  and  Sectoral  Monitoring 

Committees 

Programme  implementation  under  IPA  shall  be  monitored  through  the  IPA  Monitoring 
Committee  assisted  for  each  component  by  Sectoral  Monitoring  Committees.  Each 
Committee shall satisfy itself as to the effectiveness and quality of the implementation of the 
programmes  and  operations.  They  may  make  proposals  to the  Commission  and the  national 
IPA-coordinator,  with  a  copy  to  the  national  authorising  officer,  for  decisions  on  any 
corrective  measures  to  ensure  the  achievement  of  programme  objectives  and  enhance  the 
efficiency of the assistance provided. 

4.3.2. 

IPA Monitoring Committee 

The I IPA monitoring committee was held on 21 November 2008 in Skopje. The respective 
Rules  of  Procedure  were  adopted  by  consensus.  The  meeting  served  to  review  the  state  of 
play  of  the  different  components,  with  particular  emphasis  on  the  situation  as  regards  the 
accreditation for decentralised management. 

4.3.2.1.  Component I 

The Component I Sectoral Monitoring Committee was held on 17 September in Skopje. The 
respective Rules of Procedure were adopted by consensus. The meeting served to review the 
state of play of the component I for the years 2007 and 2008 as well as the programming for 
IPA  2009.  A  point  on  the  situation  as  regards  the  accreditation  process  for  decentralised 
management with ex ante controls – component I was also made. 

4.3.2.2.  Component II 

The Joint Monitoring Committees (JMC) of the cross–border co-operation programmes with 
Albania and Bulgaria were officially set up in 2008, within three months of the approval of 
the respective programmes. 

4.3.2.3.  Component III 

The  second  and  third  sectoral  Monitoring  Committees  were  held  25  June  and  17  December 
2008 respectively. 

4.3.2.4.  Component IV 

The sectoral monitoring committees for the OP Human Resources Development were held on 
26 February and 12 December 2008. 

- 44 - 

 
 
4.3.2.5.  Component V 

The first and second IPARD Monitoring Committees took place on 27 May and 21 November 
2008 respectively. At the first IPARD Monitoring Committee the members approved the Rules 
of procedure for the IPARD Monitoring Committees. Parallel to this activity the first proposed 
amendments  on  the  IPARD  Programme  2007-2013  were  approved.  For  the  efficiency  and 
correctness  of  co-ordination  and  reporting  on  the  monitoring  and  evaluation  of  the 
Programme,  the  relevant  support  documents  including  the  monitoring  tables  were  presented 
and  approved  in  the  second  IPARD  Monitoring  Committee.  The  national  authorities  also 
informed the IPARD Monitoring Committee about publicity activities to increase the public 
awareness of the programme. 

4.3.3.  Annual and final reports on implementation 

In 2008, the draft IPA Annual report was not yet ready to be sent to the members of the IPA 
Monitoring Committee for its examination 

4.3.4. 

. Evaluation results and Lessons learned 

An  ex  ante  evaluation  was  carried-out  by  independent  experts  for  the  Rural  Development 
programme. The conclusions/recommendations of this report were taken into consideration in 
preparing  the  final  version  of  the  programme.  Additionally,  operational  programmes  under 
components  III  and  IV  were  subject  to  ex  ante  evaluations  carried  out  in  accordance  with 
Structural Funds guidelines and procedures. 
No  additional  IPA  evaluations  were  carried  out,  as  the  first  IPA  programmes  were  only 
adopted at the end of 2007 and implementation was not yet completed. 

4.3.5.  Sectors with positive results – Success story 

No IPA projects have been finalised in the course of 2008. 

- 45 - 

 
 
 
 
5. 

KOSOVO (UNDER UNSCR 1244/99)6 

5.1. 

The year in review  

5.1.1.  Political developments 
On  17  February  2008,  the  assembly  of  Kosovo7  declared  Kosovo  an  independent  and 
sovereign  state.  To  date,  Kosovo's  independence  has  been  recognised  by  56  countries, 
including  22  EU  Member  States.  The  Constitution  of  the  Republic  of  Kosovo  entered  into 
force  on  15  June  2008.  On  8  October,  the  UN  General  Assembly  requested  the  advisory 
opinion  of  the  International  Court  of  Justice  on  the  legality  of  Kosovo’s  declaration  of 
independence.  The  rule  of  law  mission  known  as  "EULEX"  began  on  9  December  2008.  It 
supports Kosovo by mentoring, monitoring and advising the Kosovo authorities in the areas 
of police, customs and justice. 

5.1.2.  Macroeconomic developments and structural reforms 

Shortcomings in statistics continued to hamper a comprehensive assessment of the economic 
situation in Kosovo. Real Gross Domestic Product (GDP) grew by an estimated 5% in 2008. 
Economic  activity  is  increasingly  determined  by  domestic  factors  and  private  sector 
dynamism.  GDP  per  capita  in  2008  stood  at  roughly  €1.80,  or  around  5.5%  of  the  EU-27 
average. The unreliable energy supply, with several and lengthy power cuts a day, remained 
the  single  most  serious  restraint  on  growth.  45%  of  the  population  lived  below  the  poverty 
threshold. The balance of payments was negative; the value of exports was only 10% of that 
of  imports.  There  was  a  trade  deficit  of  over  40%  of  GDP  which  was  partly  financed  by 
financial  inflows  (remittances  and  Foreign  Direct  Investment  (FDI)).  Unemployment  was 
estimated above 40% of the active population, and particularly concerned women and youth. 
However,  in  part  due  to  the  significant  size  of  the  informal  economy,  changes  in  registered 
unemployment  may  not  correctly  reflect  the  actual  dynamics  of  the  economy.  The  average 
annual consumer price inflation rose to 14% mid 2008  

5.1.3. Progress in meeting the acquis.  

In  June  2008,  the  European  Council  recalled  its  willingness  to  assist  the  economic  and 
political  development  of  Kosovo  through  a  clear  European  perspective,  in  line  with  the 
European perspective of the region. Plenary meetings of the SAP Tracking Mechanism (STM) 
were  held  in  May  and  December  2008,  as  well  as  a  number  of  Sectoral  STM  meetings 
throughout the year. The EU sat out reform priorities for the authorities through the European 
Partnership, and a  revised European Partnership for Kosovo was  adopted in February  2008. 
The government approved its European Partnership Action Plan (EPAP) in July 2008. Kosovo 
continued to benefit from the Instrument for Pre-accession (IPA), macro-financial assistance 
(MFA), CARDS, the Instrument for Stability and others. The European Commission's Liaison 
Office  (ECLO)  in  Kosovo  took  over  responsibility  for  projects  financed  under  the  CARDS 
programme from the European Agency for Reconstruction (EAR) in July 2008.  

On  11  July,  the  European  Commission  organised  a  Donors'  Conference  for  Kosovo  in 
Brussels. Participants pledged a total of around €1.2 billion. The combined pledge made by 
the Commission and the EU Member States amounted to nearly €800 million. Following the 
Donors'  Conference,  Kosovo  merged  its  European  Integration  and  Donor  Co-ordination 

6      Under United Nations Security Council Resolution 1244 of 10 June 1999. 
7      Under UNSCR 1244/99. 

- 46 - 

 
 
                                                 
structures  and  agendas  into  a  new  ‘Agency  for  the  Coordination  of  Development  and 
European Integration’ (ACDEI) established in October 2008. 

5.2. 

IPA in 2008 

5.2.1.  MIPD 2008-2010 

On 14 August 2008 The Commission adopted the Multi-annual Indicative Planning Document 
2008-2010 for Kosovo (under UNSCR 1244/99). EC assistance supports institution building 
efforts, and assists economic and political development through a clear European perspective, 
in  line  with  the  European  perspective  of  the  region.  Therefore,  the  major  challenges  for 
Kosovo that are addressed by the Multi-Annual Indicative Planning Document (MIPD) are: 
Political Criteria: EC assistance under this heading should focus in particular on support to 
the development of civil society, the protection of the Serb and other minorities and the rule 
of law in Kosovo. The Commission commissioned a comprehensive sector paper on the Rule 
of Law, including a needs assessment and cost estimate. 
Economic  Criteria:  EC  assistance  should  also  be  used  in  support  of  developing  Kosovo’s 
economy and improving the socio-economic environment of all communities in a sustainable 
way. This should require measures that can catalyse IFI and private sector investment, taking 
due account of the limitations the status issue imposes on such investment. At the same time, 
more efforts should be devoted to help the authorities develop a reform agenda that promotes 
fiscal sustainability, good governance of public expenditure, sound financial management and 
knowledge society. Relevant macro-economic analysis and sector strategies to underpin these 
actions are currently under development or revision, notably as concerns transport, energy and 
education. 
The  European  agenda:  In  addition  to  the  above,  EC  assistance  should  continue  to  support 
Kosovo's European vocation and its integration into the Western Balkans region as a whole. 
Guided  by  European  Partnership  priorities,  a  gradual  approximation  to  EC  legislation  in 
specific sectors, increased attention to the rule of law in the wider sense, and preparations for 
Kosovo's participation in Community programmes should be some salient features. 
The  indicative  funding  available  for  the  period  2008  –  2010  amounts  to  €258.1  million  for 
Component  I  (Transition  Assistance  and  Institution  Building)  and  Component  II  (Cross-
Border  Co-operation).  The  considerable  increase  in  2008-2010  is  due  to  the  additional 
allocation  of  €60  million  to  the  IPA  Component  I  in  2008  to  accompany  the  expected 
challenges resulting from status resolution. 

Table 1: Kosovo: Multi-annual Indicative Financial Framework (in million €): 

Component 
I. 
Transition 
Assistance  and 
Institution 
Building 
II.  Cross-Border 
Cooperation 
Total 

2008 
184.7 

0 

184.7 

2009 
106.1 

0 

106.1 

2010 
64.5 

2.8 

67.3 

2008-2010 
355.3 

2.8 

358.1 

- 47 - 

 
 
 
 
 
5.2.2.  Programming exercise 

Table 2: Indicative financial allocation for Kosovo per component for the year 2008 
(in million €)  

Kosovo (under UNSCR 1244/99) 
I.  Transition  Assistance  and  institution 
Building 
Of which:                        Annual Programme 
Nuclear Safety Programme 
Tempus Programme 
II. Cross-Border Cooperation 
Total 

2008  
184.7 

182.7 
0.2 
1.8 
0 
184.7 

5.2.2.1.  Component I: Transition Assistance and Institution Building 

The allocation for the 2008 Kosovo annual programme part I was €124.7 million, all of which 
will  be  implemented  under  component  I  (including  €2.8  million  originally  allocated  to 
component II). This allocation includes a contribution to two multi-beneficiary  programmes 
(TEMPUS  and  Nuclear  Safety)  amounting  to  €2.0  million.  The  Commission  adopted  this 
programme on 6 October 2008. It contains the following projects: 
Table  3:  Component  I  -  Transition  Assistance  and  Institution  Building  2008  for  Kosovo  (in 
million €): 

Priority Axis 

Projects 

Priority  axis  1  Political 
Criteria (26%) 

Strengthening the Rule of Law 

Priority axis  2 Economic 
Criteria (56%) 

Priority  axis  3  European 
Standards (8%) 

Preserving Cultural Heritage in Kosovo 
Public Finance Administration 
Public Administration Reform (EU Integration) 
Support to Media and Civil Society 
Sustainable Return and Reintegration 
Rural Development System and Pilot Testing 

Support to Energy Efficiency and Transmission 
Support to Privatisation Process 
Support to Mines and Minerals Sector 
Municipal Infrastructure 
Regional Development Structures and Instruments 
Support to Education and Employment 
Improving Environment 
Support to Animal Identification and Registration 

Support to Civil Aviation Regulatory Office 
Support to the Statistical Office of Kosovo 
Support to Health 
Strengthening Customs and Taxation 

- 48 - 

Budget 
(EUR 
million)
13.0 

2.5 
6.0 
4.0 
2.5 
4.0 

4.0 

9.5 
6.0 
1.0 
14.0 
6.6 
10.0 
18.0 

3.02 

1.0 
1.5 
1.5 
3.0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Priority  axis  7  Support 
Activities 
TOTAL 

Reserve and Technical Assistance Facility 

11.58 

122.7 

Furthermore,  on  19  December  2008  the  Commission  adopted  the  2008  Kosovo  annual 
programme part II, financed by an additional allocation of €60 million to Kosovo following 
the  Commission's  pledge  at  the  July  2008  Donors'  Conference.  It  contains  the  following 
projects: 

axis  1  Political 

Priority Axis 
Priority 
Criteria 
Priority  axis  2  Economic 
Criteria 

TOTAL 

Projects 
Upgrade  of  Infrastructure  in 
the Rule of Law Sector 
Infrastructure Project Facility 
– Kosovo Window 
Contribution 
Bank's  Trust  Funds 
Kosovo 

the  Word 
for 

to 

Budget (€ million) 
25.0 

25.0 

10.0 

60.0 

5.2.2.2.  Component II: Cross-Border Cooperation 

Similar to 2007, in 2008 the conditions for programmes under Component II in Kosovo were 
not met. The funds for Component II have thus been transferred to Component I. 

5.2.3. 

Implementation modalities and structures 

The European Commission Liaison Office (ECLO) implements IPA programmes in Kosovo 
under  deconcentrated  centralised  management.  Some  projects  are  implemented  under  joint 
management with international organisations (such as the Council of Europe). 
Kosovo furthermore participates in multi-beneficiary programmes which are funded from its 
component  I  envelope.  These  are  implemented  on  a  multi-country  basis  and  managed 
centrally  by  the  European  Commission  in  Brussels.    The  first  application  for  medium-term 
assistance was presented on 22 May 2008. To date, 26applications have been accepted. These 
applications  relate  notably  to  privatisation,  road  traffic  safety,  civil  aviation,  fisheries,  air 
quality,  and  approximation  of  legislation,  international  agreements,  social  welfare,  cultural 
heritage,  waste  management,  biodiversity,  electricity 
transmission,  private  security 
companies, small arms and light weapons, corporate governance and assistance to the national 
assembly. 
Kosovo  is  at  a  very  early  stage  as  regards  the  establishment  of  a  roadmap  for  the 
decentralisation of the management of EU funds without ex ante controls by the Commission. 
As  a  first  step,  Kosovo  needs  to  officially  appoint  a  National  IPA  Coordinator  (NIPAC). 
Currently  Kosovo's  Deputy  Prime  Minister  often  acts  as  the  NIPAC,  however,  to  date 
financing agreements were signed by the Prime Minister. The EC is in process of supporting 
the Kosovo's authorities to take more ownership of the annual programming process. 

5.2.4.  Overview of IPA programmes implemented 

Table  4:  Kosovo-Status  of  financial  assistance  at  the  end  of  December  2008  (in 
million €) 

IPA 2007  62 
IPA 2008  182.7 

Allocated  Contracted RAC 
32.2 
29.8 
182.7 
0 

%Contracted RAL 
55.9 
48% 
182.7 
0% 

%Paid 
9.8% 
0% 

- 49 - 

 
 
 
 
 
 
 
 
 
5.2.4.1.  Component I: Transition Assistance and Institution Building 

The European Commission Liaison Office (ECLO) took proper action to ensure an effective 
implementation of IPA 2007, and the very ambitious commitment target for 2008 was met. In 
2008 the ECLO committed 50% of the IPA 2007 programme for which it is responsible. 
The 32 projects committed in 2008 under IPA 2007 include 12 contracts awarded following a 
full  tender  evaluation  process,  4  direct  grant  agreements,  1  twinning  contract  and  15 
framework contracts. 

5.2.4.2.  Component II: Cross-Border Cooperation   

The  funds  initially  foreseen  for  component  II  under  the  2007  and  2008  IPA  annual 
programmes were transferred to component I. 

5.2.5.  Participation in Community Programmes and Agencies 

There  is  no  framework  agreement  concerning  participation  of  Kosovo  in  Community 
programmes. Kosovo did not participate in Community Programmes in 2008. 

5.3         Monitoring and Results 

5.3.1.      Monitoring 

Kosovo  is  included  in  the  target  area  of  the  ROM  project  managed  by  DG  Enlargement's 
Regional Programmes Unit. Information on IPA 2007 and 2008 projects to be monitored was 
provided to the contractor of the ROM project. Their work plan includes projects under IPA 
2007 which will be monitored in 2009. No projects were monitored during 2008. 

5.3.2.      Evaluation results and lessons learned  

So  far  there  are  no  evaluation  results  of  IPA  programmes  (2007  and  2008)  in  2008  as 
implementation only started in 2008. 

5.3.3.      Sectors with positive results- Success story  

Given  that  2008  was  the  first  year  of  IPA  programme  implementation  there  has  not  been  a 
strong  impact  of  the  projects  implemented  during  2008.  However,  there  have  been  several 
positive project developments and results: 
The first twinning contract KS 07 IB AG 01 "Meeting EU Standards on Food Safety and 
Veterinary  Services"  (€2.0  million)  was  notified  on  18  December  2008.  This  project  is 
financed under the IPA 2007 annual programme. The Member State twinning partners are the 
Federal Ministry of Agriculture and Consumer Protection of Germany and the State Food and 
Veterinary Agency of Lithuania. Jazz festival in North Mitrovica (5-6 November 2008) - 
The  European  Commission  was  one  of  the  main  sponsors  of  the  sixth  edition  of  the  North 
City  Jazz  and  Blues  Festival  –  an  international  Jazz  and  Blues  Festival  held  in  North 
Mitrovica, 5-6 November 2008. This festival is one of the landmarks of cultural activities in 
Kosovo. In 2008, the festival welcomed six international and regional well known musicians. 
The  festival  also  incorporated  a  workshop  on  playing  piano  and  drums,  attracting  the 
participation of young people from the area. The North City Jazz and Blues Festival promote 
intercultural  dialogue  through  music,  but  also  through  side  activities  as  a  platform  for 
socialising and reviving the cultural scene. 
Fete de la Musique in Pristina (21 June 2008) - Fete de la Musique - “Festa e Muzikës” in 
Pristina,  held  for  the  first  time  in  2008,  became  a  part  of  the  worldwide  celebration  of  this 

- 50 - 

 
 
 
 
 
day. As planned “Festa e Muzikës” was organised in different outdoor and indoor venues in 
the city of Pristina as follows: 

•  Mother Theresa – Stage at the National Theatre 

•  NEWBORN – Piano programme 

•  SHOPPING CENTRE – PALACE of YOUTH – Classical music programme 

•  YOUTH PALACE: Stage in the Parking at ODA Theatre. 

The “Festa e Muzikës” in Pristina is officially registered as a part of the world celebration of 
the “Fête de la Musique” - http://www.fetedelamusique.culture.fr/. Furthermore, it was part of 
the  “Les  Echos  de  la  Fête”  -  a  multimedia  world  tour  of  Fête  de  la  Musique.  On  21  June, 
pictures  from  Pristina  were  transmitted  to  France  and  broadcasted  on  a  website  especially 
dedicated to this project www.echosdelafete.net. During a live show in Paris on 21 June, DJs 
and VJs mixed in sounds and pictures collected. 
Dokufest  (4-10  August  2008)  -  The  European  Commission  Liaison  Office  was  one  of  the 
main  sponsors  of  the  seventh  edition  of  Dokufest  –  an  international  documentary  and  short 
film  festival  in  Prizren,  held  from  4-10  August  2008.  Dokufest  showed  139  films  and 
documentaries from many countries of the world. The festival incorporated parallel activities 
such as volunteerism, camping, photo exhibitions, newspaper edition, workshops, and music 
events, attracting a high number of youth participants from the region and beyond.  Dokufest 
promotes  intercultural  dialogue  through  films  and  documentaries,  but  also  through  side 
activities as a platform for socialising. 
In  2008  the  implementation  of  the  Government's  programme  for  promoting  energy 
efficiency and renewable energy was supported through a feasibility study which identified 
and evaluated a set of energy saving measures in some public buildings in three cities, namely 
Pristina,  Gjakova  and  Gjilan.  The  outcome  of  the  study  was  the  technical  specifications  for 
implementing  the  most  cost-effective  measures  for  reducing  the  energy  consumption  in 
selected buildings. The project for implementing the measures is funded under IPA 2008. 
In late 2008 the ECLO commenced two projects funded under IPA 2007 to support reforms 
in the energy and railways sectors. The goal of this assistance is to create a stable regulatory 
environment for investments in energy and railways, and for improving the quality of services 
for  the  customers.  The  projects  will  contribute  in  the  transition  towards  a  market  based 
railway  transport  and  energy  system,  by  strengthening  the  institutional  capacity  of  the 
regulatory authorities who have a crucial role in establishing transparency and equal treatment 
in the market. 
Moreover, in the framework of the IPA 2008 annual programme, 5 Regional Development 
Agencies were established in December 2008 as municipal associations in Pristina, Mitrovica, 
Peja,  Gjilan  and  Peja  regions.  These  Regional  Development  Agencies  will  encourage  and 
facilitate  cooperation  of  all  regional  stakeholders  in  developing  and  implementing  regional 
strategies. 

- 51 - 

 
 
 
 
6. 

MONTENEGRO 

6.1. 

The year in review  

6.1.1.  Political developments 

Following  the  signature  of  the  Stabilisation  and  Association  Agreement  with  the  EU  in 
October 2007, an Interim Agreement on trade and trade-related matters entered into force in 
January 2008 and was smoothly implemented. The reform process in Montenegro continued 
to  be  monitored  through  the  enhanced  permanent  dialogue  and  through  the  newly  set-up 
institutional framework of the Interim Agreement. 
In 2008 the country enjoyed political stability and continued to play a constructive role in the 
region.  
A political dialogue meeting between the EU (troika) and Montenegro took place in February 
2008. The visa facilitation and readmission agreements are overall smoothly implemented. A 
visa liberalisation dialogue between the EU and Montenegro was launched in February 2008 
and  a  Roadmap,  with  concrete  benchmarks,  was  submitted  by  the  European  Commission  to 
Montenegro.  The  implementation of the "Roadmap"  would  open  the  way  to  visa  free  travel 
for Montenegrin citizens. 
In December 2008 Montenegro submitted an application for EU membership.  

6.1.2.  Macroeconomic developments and structural reforms 

During  2007  and  2008  Montenegro  enjoyed  a  rapid  growth  of  over  7%  p.a.,  supported  by 
inflow  of  foreign  direct  investment  (FDI),  tourism,  financial  intermediation,  real  estate  and 
improved performance of the manufacturing industry. 
A  prudent  fiscal  policy  and  higher  than  expected  tax  revenues  have  led  to  budget  surpluses 
exceeding 3% of GDP and declining public debt to 32% of Gross Domestic Product (GDP) by 
end-2007.  However,  the  very  strong  expansion  of  lending,  rapid  growth  of  asset  prices  and 
rapidly  growing  wages  have  generated  strong  demand  pressures  boosting  consumption  and 
investments  and  inducing  strong  imports  resulting  in  massive  current  account  deficits  over 
40% of GDP in 2007.  
According  to  estimates  of  the  IMF,  the  rapid  expansion  of  the  Montenegrin  economy  will 
slow  down  significantly  in  2009  and  2010  due  to  the  global  credit  crunch,  the  expected 
slowdown of FDI and a significant decrease of real estate sales. An adverse effect on tourism 
revenues is also expected; whereas the fall in aluminium prices have negatively affected the 
already critical situation of the aluminium company KAP (whose sales represented over 40% 
of Montenegro's industrial exports).  
The  authorities  reacted  promptly  on  financial  system  by  fully  guaranteeing  deposits  up  to 
(currently  some  €2 billion),  as  well  as  inter-bank  credits,  and  offering  the  possibility  of 
providing  liquidity  loans  or  recapitalisation  of  domestic  banks.  To  alleviate  the  negative 
impact of the crisis over the real economy, the adopted budged 2009 foresees a significant rise 
of  the  capital  expenditure,  earlier  repayment  of  domestic  debt,  and  the  reduction  of  social 
contribution  tax  rate.  In  addition,  electricity  price  subsidies  for  Small  and  Medium-sized 
Enterprises  (SME)  and  households  were  announced.  Authorities  are  discussing  credit 
agreements  with  the  European  Bank  for  Reconstruction  and  Development  (EBRD),  the 
European Investment Bank (EIB) and the World Bank to support infrastructural projects but, 
despite  availability  in  case  of  a  drastic  deterioration,  the  government  did  not,  by  the  end  of 
2008,  yet  express  interest  to  close  a  stand-by  arrangement  with  the  International  Monetary 
Fund (IMF). 

- 52 - 

 
 
 
6.1.3.  Progress in meeting the acquis communautaire 

In  2008  Montenegro  made  further  progress  in  alignment  with  European  standards.  On  the 
whole, the implementation of obligations under the Interim Agreement since 1 January 2008 
was proceeding smoothly. Interim Agreement bodies were set up. Policy-reform dialogue in 
other areas was taking place in the context of the Enhanced Permanent Dialogue.  
The 2008 progress report highlighted areas where progress was expected, and where further 
efforts were needed. IPA programming took fully into account the outcomes of the report in 
order to address the shortcomings.  

6.2. 

IPA in 2008 

6.2.1.  MIPD 2008-2010 

During  the  year  2008,  the  Multi-annual  Indicative  Planning  Document  (MIPD)  2009-2010 
was  adopted,  and  the  MIPD  2009-2011  was  prepared.  Both  are  in  line  with  the 
recommendations  of  the  Enlargement  Strategy,  the  European  Partnership,  and  the  SAA,  in 
addition to the National Plan for Integration (NPI) prepared by Government. 

In the revised MIPD, IPA Component I will support Montenegro in the following areas: 

–  Political criteria- An increased importance is given to this priority axis which will thus 
focus  on  the  consolidation  of  democratic  institutions,  reform  of  the  judiciary,  public 
administration  reform  including  decentralisation  and  local  government,  fight  against 
corruption  and  organised  crime,  human  rights  and  protection  of  minorities,  anti-
discrimination, as well as the media. Civil society development will be given special 
attention  for  the  promotion  of  dialogue;  small  grants  will  assist  environment,  anti-
discrimination,  gender  equality,  social  inclusion,  health,  business  advocacy,  and 
consumer protection8. 

–  Economic  criteria-  This  priority  axis  will  concentrate  on  employment  generation, 
education, research, social inclusion, health, business environment, budget and fiscal 
management, rural development, food safety, environment, energy, transport, as well 
as  infrastructure  and  other  activities  which  will  prepare  the  country  for  future 
structural funds. 

–  Ability to assume the obligations of membership- IPA will assist the introduction and 
implementation  of  the  acquis  in  all  areas;  the  overall  coordination  of  the  European 
integration process; strengthening Montenegro's administrative capacity to implement 
the SAA; preparing for the decentralised management system with or without ex ante 
controls for EU funds management; and participation in Community Programmes. 

Component  II  will  support  cross-border  cooperation  activities  between  Montenegro  and  EU 
Member  States  as  well  as  with  adjacent  Candidate  and  potential  Candidate  Countries;  in 
complementarity with the above priority axes. 

The  indicative  allocations  to  Montenegro  under  the  Multi-annual  Indicative  Financial 
Framework (MIFF) for 2008-2010 amount to €99.9 million, as specified below in Table 1. 

Table 1: Montenegro: Multi-annual Indicative Financial Framework (in million€) 

8    It will be complementary to the EIDHR programme dealing with democracy and human rights 

- 53 - 

 
 
 
                                                 
Component 
I. Transition assistance and 
Institution Building  
II.Cross-Border 
Cooperation 
Total 

2008 

28.1 

4.5 

32.6 

2009 

28.6 

4.7 

33.3 

2010 

29.2 

4.8 

34.0 

2008-2010 

85.9 

14.0 

99.9 

6.2.2. Programming exercise 

Table  2:  Indicative  financial  allocation  for  Montenegro  per  component  for  the  year 
2008 (in million €): 

MONTENEGRO 

I TRANSITION ASSISTANCE AND INSTITUTION BUILDING 

OF WHICH:  

NATIONAL PROGRAMME 

NUCLEAR SAFETY PROGRAMME 

TEMPUS PROGRAMME 

II CROSS BORDER COOPERATION 

2008 

28.1 

26.8 

0.2 

1.1 

4.5 

OF WHICH:  

CBC ADRIATIC PROGRAMME 

1.25 

CBC MONTENEGRO AND CROATIA 

CBC MONTENEGRO AND BOSNIA & HERZEGOVINA 

CBC MONTENEGRO AND SERBIA 

CBC MONTENEGRO AND ALBANIA 

CBC  PARTICIPATION 
MEDITERRANEAN PROGRAMMES 

IN  ERDF  SE  EUROPE  AND  ERDF 

0.5 

0.6 

0.6 

0.6 

0.95 

Programmes for component II are adopted for three years. Financial commitments are made 
annually and therefore figures above are just for 2008 

6.2.2.1. Component I: Transition Assistance and Institution Building 

The  programming  exercise  for  IPA  2008  was  done  with  the  assistance  of  the  European 
Agency  for  Reconstruction  (EAR),  in  coordination  with  the  National  IPA  Coordinator 
(NIPAC) and the Secretariat for European Integration (SEI); In order to further improve the 
ownership of the programme the EC Delegation organized several seminars in which future 
beneficiaries were trained in writing the log frame, and in preparing the project fiches. Project 
fiches were revised by the EC Delegation during summer 2008. 

The 2008 National Programme (Component I) was adopted on 2 December 2008. 

Under  "Political  criteria",  there  are  three  projects  for  a  total  amount  of  €7.05  million.  The 
projects focus on public administration reform  and more specifically in decentralisation and 
local  government,  sustainable  support  to  refugees  and  displaced  persons  and  media 
(transformation of the Radio television of Montenegro into a public service broadcaster) 

- 54 - 

 
 
 
Under  "Economic  criteria",  there  are  four  projects  for  a  total  amount  of  €7.5million,  the 
projects  concentrate  on  employment  generation  and  improvement  of  the  business 
environment and the support to the development of environmental infrastructure (solid waste 
management in Niksic) and the Environmental Protection Agency.  

Under  "Ability  to  assume  obligations  of  membership",  there  are  six  projects  for  a  total 
amount  of  €10.65  million   The  projects  under  this  axis  assist  in  the  introduction  and 
implementation  of  the  acquis  in  some  areas  including  financial  markets,  rural  development, 
food  safety,  veterinary  services,  customs  administration,  integrated  border  management  and 
migration; 

In  addition,  an  amount  of  €1.6  million   is  foreseen  for  a  project  preparation  facility  and 
technical  assistance  as  well  as  for  support  measures;  while  Tempus  and  Nuclear  assistance 
projects are managed by Headquarters.  

Table 3: Component I-Transition Assistance and Institution Building 2008 for Montengro (in 
million €) 

Priority axes 
Priority axis 1 Political Criteria 
1. Local Government 
2. Refugees and DPs 
3. Public Broadcasting/RTCG 
Priority axis  2 Economic Criteria 
4. Employment 
5. Private Sector / SMEs 
6. Environment Infrastructure 
7. Environment EPA 
Priority axis  3 Ability to assume obligations of membership 

Total IPA (IB and INV) 
7,05 
4,3 
1,5 
1,25 
7,5 
1,8 
1,2 
3,5 
1 
10,65 

8. Financial Markets 
9. Rural Development 
10. Food safety 
11. Animal Disease Control 
12. Customs National AP 
13. Int. Border Management 
14. Migration 
Priority axis: Support measures 
TA & PPF 
Support measures 
TOTAL 

1,2 
1,5 
2 
1,5 
1 
2,45 
1 
1,6 
0,8 
0,8 
26,8 

6.2.2.2. Component II: Cross-Border Cooperation 

IPA Component II encompasses four cross–border programmes between Montenegro and its 
Western Balkan neighbours: Croatia, Bosnia and Herzegovina, Serbia and Albania. Moreover, 
it includes the participation of Montenegro in the IPA Adriatic cross–border programme with 
Member  States.  IPA  Component  II  also  supports  the  participation  of  Montenegro  in  two 
ERDF transnational cooperation programmes: "South–East Europe" and "Mediterranean".  

- 55 - 

 
 
 
IPA CBC combines cohesion and external relation objectives and supports activities such as: 
(1)  development  of  cross-border  economic,  social  and  environmental  activities  of  border 
areas; (2) addressing common challenges in particular in the field of environment and public 
health  and  development;  (3)  promoting  "people  to  people"  type  actions,  including  among 
NGOs and local authorities. 

6.2.3. Implementation modalities and structures  

The  2008  Component  I  National  Programme  will  be  implemented  on  a  centralised  basis  by 
the European Commission in accordance with Article 53a of the Financial Regulation and the 
corresponding provisions of the Implementing Rules. The implementation of the programme 
is delegated to the EC Delegation in Montenegro. 

Montenegro's participation in horizontal nuclear safety, and education programmes (Tempus) 
is  funded  from  its  component  I  envelope.  These  programmes  are  not  included  in  the 
Component I national programme as they will be implemented on a multi-country basis and 
be managed centrally by the European Commission in Brussels.  
Concerning  the  preparations  for  decentralised  management  of  IPA,  the  work  leading  to  a 
decentralised management system with ex ante controls was progressing. The government sat 
up the institutions for the decentralised management system and nominated the heads of the 
functions  and  structures,  namely  the  Competent  Accrediting  Officer  (CAO),  the  National 
Authorizing Officer (NAO), and the PAO (Programme Authorising Officer).  

The Secretariat for European Integration receives EC assistance under CARDS 2006 to take 
forward  the  implementation  of  the  roadmap  for  decentralised  management,  and  to  have  its 
own staff and those of all the related structures, trained. The IPA 2008 programme provides 
further  assistance  by  helping  to  set  up  a  paying  agency  and  managing  authority  for  rural 
development, the operating structure required for the decentralised implementation without ex 
ante control of IPA component V. Advisory missions by DG Enlargement were carried out in 
July and December 2008. 

6.2.4. Overview of IPA programmes implemented  

During  2008,  IPA  programmes  started  to  be  implemented  in  Montenegro.  IPA  2007 
programme was prepared and tendered in all three axes. By the end of the year a major road 
project  and  justice  reform,  as  well  as  capacity  building  assistance  were  contracted. 
Preparatory  activities  for  the  implementation  of  IPA  2008,  as  well  as  the  planning  and 
preparation of IPA 2009 started in 2008.  

6.2.5. Participation in Community Programmes and Agencies 

The Agreement of 15 November 2007 provides for the provisional application of Protocol 8 
to  the  SAA  on  the  general  principles  for  Montenegro's  participation  in  Community 
programmes. In accordance with Articles 2 and 5 of this Framework Agreement, Montenegro 
shall  pay  a  financial  contribution  to  the  budget  of  the  Community  programmes  in  which  it 
participates and may request IPA assistance in this regard.  
On the basis of this Protocol 8, Montenegro is participating in two programmes: the Seventh 
Framework  programme  for  Research,  Technological  Development  and  Demonstration 
Activities and the Entrepreneurship and Innovation programme. 

6.3.  Monitoring and Results 

6.3.1.  Monitoring 

No  monitoring  of  IPA  projects  was  carried  out  in  2008  as  the  IPA  2007  programmes 
implementation only started in 2008. Monitoring of IPA projects starts in 2009. 

- 56 - 

 
 
6.3.2.  Evaluation results and lessons learned  

So far there are no evaluation results of IPA programmes in 2008 as the implementation only 
started in 2008. For the first year of IPA no lessons learned can be identified. Evaluations of 
selected previous CARDS projects are implemented in 2009 

6.3.3.  Sectors with positive results - Success story  

For  the  first  year  of  IPA,  No  sectors  with  positive  results  can  be  identified  as  the 
implementation of IPA programmes only started by the end of 2008. 

- 57 - 

 
 
 
 
 
7. 

 SERBIA 

7.1. 

The year in review  

7.1.1.  Political developments 

Serbia signed the Stabilisation and Association Agreement (SAA) and an Interim Agreement 
covering trade-related matters in April 2008. On 29 April 2008, the Council decided that the 
implementation  of  the  Interim  Agreement  and  the  ratification  of  the  SAA  were  subject  to 
Serbia  fully cooperating  with  the  International Criminal  Tribunal for the former Yugoslavia 
(ICTY).  
Serbia made significant progress on cooperation with ICTY, including the arrests of Radovan 
Karadzic  and  Stojan  Zupljanin.  Parliament  ratified  the  SAA  in  September  2008  and  began 
work on a package of laws. Government and parliament were affected by divisions between 
political  parties  on  key  policy  issues.  Issues  relating  to  Kosovo9  and  EU  integration 
dominated  political  discussions.  After  the  presidential  and  legislative  elections  in  February 
and May 2008 there was increased stability in government and greater consensus on European 
integration. Serbia had good capacity in its public administration.  
Further efforts need to be taken to ensure the independence, accountability and efficiency of 
the judicial system. Corruption remained widespread and constituted a serious problem. Civil 
and political rights in Serbia were generally protected and the overall framework for respect 
of human rights and the protection of minorities in Serbia was in place. Concerning economic 
and social rights, the legal provisions for their protection were largely in place but the legal 
framework needed to be further developed. 
Relations  between  the  EU  and  Serbia  were  affected  by  the  declaration  of  independence  of 
Kosovo.  Serbia  vowed  to  use  only  peaceful,  legal  and  diplomatic  means  and  exercised 
restraint in its response to the declaration. Following a Serbian initiative, a Resolution of the 
UN General Assembly requested to the International Court of Justice an advisory opinion on 
the legality of the Kosovo declaration of the independence.  

7.1.2.  Macroeconomic developments and structural reforms 

The  economy  of  Serbia  continued  to  grow  strongly.  However,  progress  in  macroeconomic 
to 
stabilisation  was  mixed.  The  continuing  reversal  of  fiscal  consolidation  added 
macroeconomic risks. Structural reforms slowed down and the high level of unemployment, 
as well as rising inflationary pressures, remained major challenges. 
As  regards  the  economic  criteria,  Serbia  made  some  progress  towards  establishing  a 
functioning  market  economy.  Financial  intermediation  continued  to  grow  from  a  still 
relatively low level. Significant progress was made with the development of the non-banking 
financial sector. However, external imbalances widened, the quality of financing deteriorated, 
foreign  debt  rose,  and  the  degree  of  macro-vulnerability  increased  also  in  the  light  of  the 
global  financial  crisis.  Despite  high  economic  growth  rates  in  recent  years,  unemployment 
remained a major challenge. There was some progress with regard to the privatisation of state-
owned companies and banks.  

7.1.3.  Progress in meeting the acquis communautaire 

In the area of European Standards, Serbia remained well placed to implement the SAA and 
the  Interim  Agreement,  thanks  to its good administrative capacity. However there were few 
developments in terms of legislative alignment.  

9    Under UNSCR 1244/1999 

- 58 - 

 
 
 
                                                 
As regards sectoral policies, in the areas of industry and Small and Medium-sized Enterprises 
(SMEs)  Serbia  remained  committed  to  the  European  Charter  for  SMEs.  In  the  area  of 
agriculture,  there  were  some  improvements  in  administrative  capacity.  In  the  area  of 
environment, Serbia's preparations remained at a moderately advanced level. Some progress 
was made in the area of transport with Serbia continuing to actively participate in the South 
East  Europe  Transport  Observatory.  There  was  also  some  progress  in  the  area  of  energy. 
Little  progress  was  made  in  the  areas  of  information  society  and  media.  Serbia  was 
moderately advanced in fulfilling the requirements of the SAA and the European Partnership 
in the area of statistics.  
There  was  moderate  progress  in  the  area  of  justice,  freedom  and  security.  The  visa 
facilitation  and  readmission  agreements  between  the  EU  and  Serbia  entered  into  force  in 
January  2008  and  a  visa  liberalisation  dialogue  started.  Following  the  adoption  of  the  new 
legislation  on  asylum,  Serbia  took  over  responsibility  for  handling  asylum  cases  from  the 
United Nations High Commissioner for Refugees (UNHCR). Money laundering continued to 
be  a  serious  problem  and  relevant  legislation  still  had  to  be  adopted.  Drug  trafficking  also 
remained a serious concern. The professional capacities of the police improved as a result of 
additional training activities. The fight against organised crime remained a matter of serious 
concern for Serbia.  

7.2. 

IPA in 2008 

7.2.1.  MIPD 2008-2010 

 The  Serbian  government  played  an  active  role  in  the  preparation  of  the  2008-2010  Multi-
Annual  Indicative  Planning  Document  (MIPD)  which  was  adopted  in  September  2008.  The 
MIPD sets out the priorities for EU financial assistance under IPA for the period 2008-2010.  
Under  political  criteria,  the  main  objective  of  EU  assistance  for  the  period  2008-2010  is  to 
further  strengthen  the  institutional  building  and  the  increase  of  the  absorption  capacity  of 
Serbian institutions, ensuring successful implementation of SAp. This includes the successful 
set up of the decentralised management system framework to enable efficient management of 
EU  funds.  Additionally,  particular  attention  will  be  paid  to  actions  supporting  the 
development  of  civil  society,  the  respect  of  the  rights  of  minorities  and  other  vulnerable 
groups (including anti-discrimination measures) and of equality between women. 
A  considerable  amount  of  funds  will  be  allocated  to  the  second  priority  axis,  economic 
criteria. In this respect the assistance will focus mainly on promotion of economic growth as 
well  as  alleviating  the  social  impacts  of  privatisation  and  enterprise  restructuring. 
Furthermore,  actions  will  be  financed,  targeting  employment  creation  by  strengthening 
vocational  education  and  training  and  the  education  sector  in  general  by  improving  the  link 
between schools/ universities supply and the qualifications demanded on the labour market.  
Particular attention will also be paid to the development and implementation of strategies and 
policies  in  order  to  establish  sectoral  policies  and  a  regulatory  framework  compatible  with 
European standards. Key acquis sectors such as competition policy, enterprise and industrial 
policy,  justice,  freedom  and  security,  social  policy  and  employment,  financial  management, 
product standards will be prioritised.  
IPA  Component  II  will  support  cross–border  programmes  between  Serbia  and  the  adjacent 
Member State (Hungary, Bulgaria, and Romania), candidate (Croatia, fYRoM) and potential 
candidate  countries,  according  to  the  IPA  eligibility  rules  (NUTS  level  III  regions  or 
equivalent  areas).  In  addition,  building  on  the  experience  gained  in  the  context  of  the 
CADSES  programme,  IPA  Component  II  funds  are available, as appropriate, to support  the 
participation  of  Serbia  in  the  relevant  transnational  programmes  under  the  Structural  Funds 

- 59 - 

 
 
 
 
 
where  Serbia  is  eligible  (e.g.  the  "South  –East  Europe  Space"  programme,  the  successor  of 
CADSES).  
The  indicative  allocations  to  Serbia  under  the  Multi-annual  Indicative  Financial  Framework 
(MIFF) 2008-2010 amount to €584.4 million, as specified below in Table 1*. 
Table 1: Serbia: Multi-annual Indicative Financial Framework (in million €) 

Component 
I.  Transition  assistance  and 
Institution Building  
II. Cross-Border Cooperation 
Total 

2008 

179.4 

11.5 
190.9 

2009 

182.6 

12.2 
194.8 

2010 

186.2 

12.5 
198.7 

2008-2010 

548.2 

36.2 
584.4 

7.2.2.  Programming exercise 

National Programme 

Table  2:  Indicative  financial  allocation  for  Serbia  per  component  for  the  year  2008  (in 
million €) 
SERBIA 
I Transition Assistance And Institution Building 
of which:  
Nuclear Safety Programme 
Tempus Programme 
II Cross Border Cooperation 
of which:  
CBC Serbia And Romania 
CBC Serbia And Hungary 
CBC Adriatic Programme 
CBC Serbia And Croatia 
CBC Serbia And Bosnia & Herzegovina 
CBC Serbia And Montenegro 
CBC Participation In ERDF SE Europe Programme 
*Programmes  for  component  II  are  adopted  for  three  years.  Financial  commitments  are  made  annually  and 
therefore figures above are just for 2008 

2008 
 179.6 
168.6 
4.0 
7.0 
11.45 
2.20 
2.70 
2.30 
0.55 
1.00 
1.10 
0.50 
1.10 

CBC Serbia And Bulgaria 

7.2.2.1.  Component I: Transition Assistance and Institution Building 

Table 3: Component I-Transition Assistance and Institution Building 2008 for Serbia 
(in million €) 

Priority Axis 
Political Criteria 

Budget  
2.50 

2.00 

Projects 
Strengthening 
the 
institutional  capacities  of  the 
National Bank of Serbia 
Support  to  the  Development 
of  Public  Internal  Financial 
Control (PIFC) Phase 3 
Support 
IDPs 
Support for media capacity in 
the 
European 
of 
area 
Integration 
Fight against corruption 
2.50 
Harmonization of the Serbian  4.40 

to  Refugees  and 

3.00 

6.00 

- 60 - 

 
 
 
 
 
 
 
 
 
Integration 

Infrastructure 

Customs 
Enforcement 
Division  with  the  standards, 
organization  and  operational 
methodology 
EU 
of 
enforcement agencies 
European 
Scholarships 
Improvement of transparency 
and  efficiency  (prosecutors 
and penal system) 
Education for all - increasing 
the availability and quality of 
education  for  children  from 
marginalized groups 
Social Inclusion 
Support for Civil Society 
Establishment  of  first  level 
control  and  support  for  the 
cross-
implementation 
of 
(CBC) 
border  cooperation 
programmes 
Municipal 
Support Programme (MISP) 
Project preparation Facility 
Implementation  of  Hospital 
Information System 
Quality 
for 
Support 
Assurance within the national 
secondary 
primary 
and 
education 
examination 
system 
Environmental  protection  at 
the  Electric  Power  of  Serbia 
(EPS) company 
Improved 
competitiveness 
innovation 
Employment 
National 
Service's  (NES)  forecasting 
and data management 
Systemic  development  of 
elementary,  practice-  based 
adult  education 
in  Serbia 
(second chance) 
Facilitating 
transport in Serbia 
Harmonization  with  acquis 
communautaire  in  the  Field 
of Transport – Phase II 
TA 
implementation 

support 
of 

SME 
and 

intermodal 

to 

- 61 - 

4.00 

4.50 

3.00 

5.50 
2.50 
1.70 

45.40 

5.00 
7.50 

2.00 

11.00 

3.00 

1.50 

4.50 

2.00 

1.50 

4.00 

Economic Criteria 

Ability 
obligations of membership 

assume 

to 

the 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
to 

the 
for 

of 
System 

infrastructure  projects  in  the 
Republic of Serbia- PIUs 
System  for  the  analysis  of 
track conditions 
Development 
Information 
Border Crossing Control 
Further 
of 
advancement 
conformity  assessment  in  the 
Republic of Serbia 
Control of State Aids 
Assistance 
the  Serbian 
Protection 
Environment 
Agency  as  a  national  focal 
for 
institution 
point 
the 
with 
cooperation 
European 
Environment 
Agency  in  strengthening  the 
EIONET 
Hazardous waste 
Chemicals management 
Treatment  of  the  Healthcare 
waste 
Harmonization  of  national 
legislation 
EU 
legislation  for  placing  on  the 
market  and  control  of  Plant 
Protection  Products 
(PPP) 
and  implementation  of  new 
legal provisions 
for 
Support 
control/eradication 
classical  swine 
rabies in Serbia 
and 
Capacity 
technical  support 
the 
renewal  of  viticulture  zoning 
and  control  of  production  of 
wine  with  Designation  of 
Origin 
Further 
implementation of DIS 
Support  for  participation  in 
Community Programs 
Support Measures Facility 

the 
of 
fever  and 

building 

support 

with 

for 

for 

3.00 

4.00 

1.20 

1.50 
1.60 

1.50 
1.50 
6.00 

1.30 

6.30 

1.20 

2.45 

5.00 

3.09 
168.64 

Support Activities 
Total 

The 2008 National Programme for Serbia under the IPA Transition Assistance and Institution 
Building  Component  was  adopted  by  the  Commission  on  19  December  2008.  It  aims  at 
assisting Serbia to implement the necessary reforms needed to fulfil EU requirements, make 

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progress in the Stabilisation and Association process and  lay the foundations for fulfilling the 
Copenhagen  criteria  as  well  as  to  implement  the  European  Common  Aviation  Area 
Agreement. 
More specifically, the 2008 IPA National Programme with a total budget of around € 168.6 
million comprises 37 projects, including one support measures facility in the amount of € 3.1 
million. 2008 IPA is addressing priorities in the following axes: Political Requirements, with 
a budget allocation of € 92 million; Socio Economic Requirements, with a budget allocation 
of € 29.5 million; and European Approximation of Sectoral Policies, with a budget allocation 
of  €  44  million.  The  2008  IPA  Programme  is  providing  assistance,  amongst  others,  to  the 
following projects: 
The  Support  to  Refugees  and  Internally  Displaced  Persons  (IDP)  project  with  an  IPA 
budget of €6 million  addresses an issue of major importance for Serbia. One programme will 
support  provision  of  housing  solutions  for  refugees;  enhancement  of  IDPs'  housing 
conditions, support to starting up or expanding income-generating activities for refugees and 
IDPs.  The  Legal  assistance  programme  will  improve  the  access  of  IDPs  and  refugees  in 
Serbia to property, health, education, employment and social welfare. 
The  Municipal  Infrastructure  Support  Programme  with  an  IPA  budget  of  €45.4  million 
builds on the strong record under the CARDS programme in supporting the implementation of 
local  government  decentralisation  policy  reforms.  The  overall  objective  of  the  project  is  to 
strengthen the capacity in Serbia, as required by candidates for EU Membership, to improve 
local  governance,  support  better  management  of  municipal  infrastructure  services  and  the 
capacity  of  municipalities  to  programme  and  absorb  EC  investment  funds  for  new  and 
rehabilitated assets. 
The  project Implementation  of  Hospital  Information  System  with  an  IPA  budget  of  €7.5 
million is designed to support the Ministry of Health by continuing the improvement of the 
Electronic  Health  Record  developed  through  the  CARDS  2004  project  “Development  of 
Health Information System for Basic Health and Pharmaceutical Services Republic of Serbia” 
and through the Ministry of Health's “Serbia Health Project”. The project will integrate data 
delivered  by  healthcare  institutions  and  will  produce  an  upgraded  customized  hospital 
information system in 10 hospitals, covering the needs of 30% of the population of Serbia. A 
study shall be launched to analyze the current situation and prepare the Terms of Reference 
and the technical specifications for the supplies to be procured. 
The  Environmental  Protection  at  the  Electric  Power  industry  of  Serbia  (EPS)  with  an 
IPA budget of €11 million 
is a major project for Serbia in order to fulfill its environmental 
obligations  under  the  Energy  Community  Treaty  and  the  Directive  2001/80/EC  for  large 
combustion  plants.  As  such,  polluting  emissions  must  be  reduced  from  Nikola  Tesla  B 
thermal  power  plant  which  requires  the  reconstruction  of  one  electrostatic  precipitator  (air 
filter).  This  project  will  provide  the  technical  assistance  and  works  to  address  this  need.  In 
addition,  equipment  for  continuous  air  emission  measurement  of  harmful  and  hazardous 
substances will be procured and installed at TPPs Nikola Tesla. 
The  project  Systemic  development  of  elementary,  practice-based  adult  education  in 
Serbia (second chance) with an IPA budget of €4.5 million  aims to institutionalise a modern, 
functional  adult  education  system  through  a  three-year  education  cycle  encompassing  the 
elementary  education  during  the  first  two  years,  combined  with  vocational  trainings  in  the 
third year. The system, accessible and adaptable to the need of adult learners, focused on life 
skills and competences will be based upon lifelong learning. 
The  project  Treatment  of  the  Healthcare  waste  with  an  IPA  budget  of  €6  million   will 
support the Ministry of Health to improve the present inadequate and risky procedure for the 
treatment  of  infectious  waste  at  primary  healthcare  level  (public  and  private  sector)  and  to 
reduce  environmental  pollution  in  25  districts  in  the  Republic  of  Serbia.  The  project  is 
expected  to  render  improved  infectious  healthcare  waste  management  in  35  healthcare 
facilities in Serbia (23 Institutes of Public Health and 12 Veterinary Institutes, located in 25 

- 63 - 

 
 
administrative districts in Serbia) and to put in place an effective and efficient system for the 
collection, storage, treatment and disposal of infectious healthcare waste, in accordance with 
Serbian requirements and EU Directives. Two supply contracts will be made for the delivery 
of waste treatment equipment and waste transport vehicles. 
The project for Support for the Control/Eradication of Classical Swine Fever and Rabies 
with  an  IPA  budget  of  €6.3  million  will  assist  Serbia  to  put  under  control  and  eradicate 
classical swine fewer and sylvatic rabies. Both of those diseases present a permanent threat to 
public and animal health and safety of food chain. Serbia needs to align the procedures and 
practices for combating and eradication of classical swine fever with the requirements of the 
acquis  to  become  eligible  for  export  of  pork  meat  to  the  EU.  The  project  consists  of  a 
technical assistance component, procurement of vaccines, and procurement of equipment for 
monitoring of the diseases. 
The  Programming  of  IPA  2009  National  Programme  was  also  initiated  during  2008.  The 
priorities  of  the  programme  are  determined  by  the  Multi-annual  Indicative  Planning 
Document (MIPD) 2009-2011 which was also under preparation in 2008. These priority axes 
are: Political Criteria, Economic Criteria and Ability to assume obligations of membership.  

7.2.2.2.  Component II: Cross–Border Cooperation 

IPA  Component  II  encompasses  three  multi–annual  (2007–2009)  bilateral  cross–border 
programmes  with  neighbouring  candidate/potential  candidate  countries  (Bosnia  and 
Herzegovina,  Croatia  and  Montenegro)  and  three  bilateral  cross–border  programmes  with 
neighbouring  Member  States  (Bulgaria,  Hungary  and  Romania).  The  programmes  aim  at 
promoting  economic,  social  and  environmental  development  of  border  regions,  mainly 
through  activities  involving  local  communities.  Component  II  is  also  financing  the 
participation of Serbia in the ERDF transnational programme "South–East Europe". 
All  of  the  Cross-Border  Co-operation  Programmes  between  Serbia  and  the  neighbouring 
countries  have  started  during  2008.  Programming  meetings  were  organised  and  joint 
structures  were  established.  Cross–border  cooperation  helps  reconciliation  and  good 
neighbourly relations, while also facilitating the integration of the beneficiary countries into 
the EU. 

7.2.3. 

Implementation Modalities and Structures  

Serbia's participation in horizontal nuclear safety, customs and education programmes is also 
funded from its component I envelope. These programmes are not included in the component 
I national programme as they will be implemented on a multi-country basis and be managed 
centrally by the European Commission in Brussels.  
Concerning  the  preparations  for  decentralised  management  of  IPA,  the  Government 
established  a  decentralised  management  system  roadmap  in  January  2008  (up-dated  in 
November 2008), while a respective Strategy for the preparation of the accreditation of this 
system was prepared in April 2008. All key stakeholders regarding decentralised management 
system on the side of the Serbian administration have been appointed (CAO, NIPAC, NAO). 
Some progress was also made in establishing the basis for the "Operating Structures". In line 
with their up-dated roadmap, the Serbian authorities planned to start the activities under stage 
1 "Gap assessment" in 2009.  
A first audit mission by DG Enlargement was organized in July 2008. 

7.2.4.  Overview of IPA programmes implemented  

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Table  4:  Serbia-Status  of  financial  assistance  at  the  end  of  December  2008  (in 
million €) 

IPA 2007  173.3 
IPA 2008  171.1 

Allocated  Contracted RAC 
24.5 
142.9 
n/a 

%Contracted RAL 
171.9 
14% 

%Paid 
1% 

In 2008 about 35 contracts under different IPA 2007 budget lines were signed while several 
other  tenders  under  the  2007  IPA  National  programme  were  prepared.  Given  that  the 
Financing Agreement for the IPA National Programme 2007 was only signed in April 2008 
and  therefore  contracting  of  IPA  projects  only  started  in  the  second  half  of  the  year,  actual 
IPA programme implementation is still to start.  
It should also be noted that over the year a number of changes had to be made to the originally 
approved 2007 IPA National programme. Some of these changes were classified as major and 
hence  required  an  amendment  to  the  original  financing  decision  which  was  only  adopted 
shortly before the end of 2008. 

7.2.5.  Participation in Community Programmes and Agencies 

A Framework Agreement on the general principles for participation of Serbia in Community 
programmes  was  signed  in  November  2004.  In  accordance  with  Articles  2  and  5  of  this 
Framework  Agreement,  Serbia  shall  pay  a  financial  contribution  to  the  budget  of  the 
Community  programmes  in  which  it  participates  and  may  request  IPA  assistance  in  this 
regard.  
For  each  project,  the  "entry  ticket"  to  be  paid  id  specified  in  the  Memorandum  of 
Understanding  establishing  the  terms  and  conditions  for  Serbia's  participation.  The 
Memorandum of Understanding for the Seventh Research framework Programme was signed 
in  2007.  In  2008  Serbia  signed  the  Memoranda  of  Understanding  for  participation  in  the 
Culture Programme and for participation in the Community Programme for Employment and 
Social Solidarity (PROGRESS).  
The  IPA  programme  2007  foresees  a  Community  contribution  of  €2  million  to  support  the 
participation of Serbia in Community Programmes. These funds are to co-finance the "entry 
tickets" for various programmes and agencies.  
On this basis, the Serbian government received € 1410 470 as co-financing of the entry ticket 
for  the  "Seventh  EC  Research  Framework  Programme"  and  €53  500  for  the  Culture 
programme. 
Under  IPA  2008,  €5.000.000  were  allocated  to  co-finance  the  participation  of  Serbia,  inter 
alia, in those programmes for the following year, and also in other Community programmes 
for which Serbia has expressed its interest, such as: CUSTOMS 2013, Fiscalis 2013, Life+, 
Marco Polo, Competitiveness and Innovation Framework Programme (CIP). 

7.3.  Monitoring and Results 

7.3.1.  Monitoring 

No  monitoring  of  IPA  projects was carried out in 2008 as the Financing Agreement  for the 
IPA National Programme 2007 was only signed in April 2008 and consequently the first IPA 
contracts were only signed in the second half of 2008. 

- 65 - 

 
 
 
 
 
 
 
 
 
 
7.3.2.  Evaluation results and Lessons Learned  

In 2008, there were no evaluation results of IPA programmes for the reasons indicated above 
under monitoring. 

7.3.3.  Sectors with positive results – Success story box  

See above under monitoring and evaluation. No sectors with positive results can be identified 
as the implementation of IPA programmes only started in 2008. 

- 66 - 

 
 
 
 
 
8. 

TURKEY 

8.1. 

The year in review 

8.1.1.  Political developments 

Turkey  continued  to  sufficiently  fulfil  the  Copenhagen  political  criteria.  After  averting  a 
constitutional and political crisis in 2008, the Turkish government renewed attention towards 
EU-related  reforms  and  accession  negotiations.  As  concerns  the  political  criteria,  some 
progress  was  achieved  in  the  areas  of  freedom  of  expression,  the  rights  of  non-Muslim 
religious  communities,  and  in  promoting  the  economic  development  of  the  South-East.   
Significant further efforts are still needed on most areas related to the political criteria. 

8.1.2.  Macroeconomic developments and structural reforms 

With  regard  to  the  economic  criteria,  Turkey  is  a  functioning  market  economy  and  will 
remain  so  as  long  as  it  firmly  maintains  its  recent  stabilisation  and  reform  achievements. 
Turkey should be able to cope with competitive pressures and market forces within the Union 
in  the  medium  term,  provided  that  it  continues  to  implement  a  comprehensive  reform 
programme to address structural weaknesses. In the framework of the EU-Turkey relations the 
Commission  is  in  constant  discussion  with  the  Turkish  authorities  and  is  assessing  the 
performance of Turkey in the economic and financial area. This is of paramount importance, 
given the fact that the IMF stand-by agreement expired in May 2008 and a new one is still 
pending.  Turkey  has  been  affected  by  the  global  economic  crisis,  as  many  EU  economies 
have. The Turkish government has taken some measures to alleviate the impact of the crisis. 
The Commission estimates Turkey's GDP growth to have been 1.5% in 2008 as a result of a 
sharp contraction in the fourth quarter of 2008. It is expected that weaker economic growth 
and reduced demand as well as lower international commodity prices will reduce the current-
account deficit and ease the needs for external financing. However, Turkey's heavy reliance 
on short-term capital inflows makes the country vulnerable to global de-leveraging, increased 
risk  aversion  and  external  shocks.  Under  the  current  circumstances,  the  main  challenge  for 
Turkey is the faltering external demand on the Turkish economy and the need to mitigate the 
impact of the deepening global financial and economic crisis. 

8.1.3.  Progress in meeting the acquis communautaire 

Turkey improved its ability to take on the obligations of membership. Progress was made in 
most  areas.  Alignment  is  advanced  in  certain  areas,  such  as  free  movement  of  goods, 
intellectual  property  rights,  anti-trust  policy,  internal  electricity  market,  enterprise  and 
industrial policy, consumer protection, statistics, Trans-European Networks, and science and 
research. However, alignment needs to be pursued, in particular in areas such as environment, 
state  aid,  public  procurement,  social  policy  and  employment,  company  law,  food  safety, 
veterinary and phytosanitary policies and free movement of services. A number of important 
obligations taken on by Turkey as part of its Customs Union with the EU remain unfulfilled. 
The disproportionate use of safeguard measures and longstanding trade irritants are having an 
impact on proper functioning of the Customs Union. Turkey's administrative capacity to cope 
with the acquis needs further improvement. 

- 67 - 

 
 
8.2. 

IPA in 2008 

 The  IPA  Framework  Agreement  between  Turkey  and  European  Commission,  signed  on  11 
July, entered into force on 24 December 2008 upon ratification by the Turkish parliament and 
notification to the Commission.    

8.2.1.  MIPD 2008-2010 

Table 1: Turkey: Multi-annual Indicative Financial Framework (in million €) 

and 

Transition  Assistance 

Component  
I. 
Institution Building 
II. Cross-Border Cooperation 
III. Regional Development 
IV. Human Resources Development 
V. Rural Development 
Total 

2008 

256,1 

2,9 
173,8 
52,9 
53 
538,7 

2009 

233,2 

9,4 
182,7 
55,6 
85,5 
566,4 

2010 

211,3 

9,6 
238,1 
63,4 
131,3 
653,7 

2008-2010 

700,6 

21,9 
594,6 
171,9 
269,8 
1758,8 

The  Multi-annual  Indicative  Planning  Document  (MIPD)  is  the  strategic  programming 
document  for  IPA  in  Turkey.  It  is  established  for  a  three  year  rolling  period,  with  annual 
reviews. The second MIPD for Turkey 2008-2010 was given a favourable opinion by the IPA 
Committee on 19 May 2008 and then adopted through written procedure by the Commission 
on  25  July  2008.  The  2008-2010  MIPD  is  based  on  an  indicative  financial  envelope  of 
€1758.8  million.  The  IPA  instrument  in  Turkey,  as  reflected  in  the  MIPD,  consists  of  five 
components: (IPA-I) the Transition Assistance and Institution Building component; (IPA-II) 
the  Cross-Border  Cooperation  component  which  applies  to  border  regions  between 
beneficiaries from member states, candidate states and countries in pre-accession status; (IPA 
III, IV and V) the Regional, Human Resources and Rural Development components. 
Within the Institution Building component the focus of assistance in the area of the political 
criteria will be on the institutions that are directly concerned by the reforms: the judiciary and 
the  law  enforcement  services.  A  second  priority  will  be  support  for  the  continued 
development of civil society organisations. Among the issues to be addressed, priority will be 
given  to  human  rights  and  fundamental  freedoms;  gender  issues;  and  the  fight  against 
corruption.  As  concerns  the  adoption  and  implementation  of  the  acquis,  the  main  areas  of 
activity, reflecting the volume of legislation to be transposed and implemented as well as the 
investments  required,  will  be:  agriculture  and  food  safety;  justice,  freedom  and  security 
(particularly  border  management;  migration  and  visa  policy;  and  international  cooperation 
among  law  enforcement  agencies);  and  environment.  The  promotion  of  the  Civil  Society 
Dialogue  will  be  implemented  through  grants  supporting  cooperation  between  EU  and 
Turkish  civil  society  organisations  and  by  the  co-financing  of  Turkey's  participation  in 
Community Programmes, notably the education and youth programmes. 
The preparation towards the Territorial Cooperation objective of the EU structural funds will 
be  addressed  by  the  Cross-border  Cooperation  component.  Budgetary  allocations  will  be 
divided between bilateral cross-border programmes with Member States and participation of 
Turkey in the ENPI Black Sea basin programme. 
EU  assistance  shall  also  help  to  prepare  the  beneficiary  country  for  participation  in 
Community's cohesion policy and rural development instruments from day one of accession. 
This objective will be implemented under the three IPA components: regional development, 
human resources development and rural development. In view of the limited funds available, 
sectoral and geographical concentration of funds will be sought. 

- 68 - 

 
 
 
The Regional Development and the Human Resources Development components will pursue 
the  objectives  of  the  revised  Lisbon  Strategy,  while  bearing  in  mind  the  state  of  Turkey's 
economic  development.  This  will  necessitate  focusing  interventions  on  the  provision  of  the 
more fundamental physical, business and human infrastructure, before actions concerned with 
the technological frontier can be addressed. 

The  Regional  Development  component  will  support  3  Operational  Programmes  (OP): 
environment, transport, and regional competitiveness. Within the environment OP, the main 
priorities will be in the water, waste water and solid waste management sectors. Within the 
transport OP, priority will be given to rail, links with TEN and multi-modal transport. Finally, 
within the Regional Competitiveness OP the priorities will be to support business investment, 
to enhance SMEs competitiveness and to upgrade their technological basis.  

The Human Resources Development component supports a single OP addressing three major 
areas  of  intervention:  employment,  education  and  social  inclusion,  which  are  to  be 
implemented  by  four  priority  axes:  attract  and  retain  more  people  in  employment,  enhance 
investment in human capital, increase adaptability of workers and promote an inclusive labour 
market. 
The Rural Development component supports the implementation of a multi-annual IPA Rural 
Development Programme (IPARD) through measures under three priority axes: adaptation of 
the  agricultural  sector  and  implementing  of  Community  standards  in  the  fields  of 
environmental  protection,  public  health,  animal  and  plant  health,  animal  welfare  and 
occupational  safety,  preparatory  actions  for  agri-environment  measures  and  Leader  and 
development of the rural economy. 

8.2.2.  Programming exercise 

Table 2: Indicative financial allocation for Turkey for the year 2008 (in million €) 

Turkey 
I. Transition Assistance and Institution 
Building 
Of which  

•  National Programme 
•  Nuclear Safety 
•  Education (TEMPUS) 
II. Cross-Border Cooperation 
Of which 

•  CBC programmes 
•  ENPI BLACK Sea Basin programme 

III. Regional Development 
Of which 

•  Regional Competitiveness Programme
•  Transport Programme 
•  Environment Programme 

IV. Human Resources Development 
V. Rural Development 
Total 

256.1

256.1
0
0
2.9

1.9
1.0
167.5

43.5
60.8
69.5
52.9
53.0
540.5

Programmes  for  components  II,  III,  IV  and  V  are  adopted  for  three  years.  Financial  commitments  are  made 
annually and therefore figures above are just for 2008 

- 69 - 

 
 
 
 
8.2.2.1.  Component I: Transition Assistance and Institution Building 

The  IPA  2008  component  I  programme  included  33  projects  that  were  selected  among  the 
priorities  identified  in  the  2008-2010  MIPD  after  analysis  of  the  Turkish  authorities  and 
consultation  with  the  European  Commission,  according  to  the  priorities  identified  in  the 
Accession  Partnership,  the  screening  process  and  subsequent  negotiations  in  the  different 
chapters of the acquis. The Commission adopted the programme on 15 December 2008 and it 
will be implemented by means of decentralised management. 

Table  3:  Component  I-Transition  Assistance  and  Institution  Building  2008  for  Turkey  (in 
million €) 

Priority Axis 
1. 
Criteria 

Political 

2. 
communautaire 

Acquis 

Training 

for  Mehmetçik 

Projects 
TR080101  Strengthening  the  Role  of  the  Supreme 
Judicial Authorities in the EU Process 
TR080102  Strengthening  the  Court  Management 
System 
TR080103  Civic 
(Conscripts) 
TR080104  Promoting  Services  for  People  with 
Disabilities 
TR080105 Strengthening Special Education  
TR080106 Strengthening pre-school Education 
TR080107  Participatory  Strategic  Governance  at  the 
Local Level  
TR080108  Civil  Society  Development  for  Active 
Participation 
TR080201  Environment  and  countryside  under 
IPARD 
TR080202 The REACH Chemicals Project 
TR080203 Improving Emissions Control 
TR080204 
Control 
TR080205 Mining Waste Management 
TR080206  Decision  making  &  performance 
management in public finance 
TR080207 Strengthening the Capital Markets Board  
TR080208  Tagging  and  vaccination  of  sheep  and 
goats 
TR080209 
radiations metrology 
TR080210  Action  Plan  on 
Management -Phase 2 
TR080211 Improving the Skills of Forensic Experts 
TR080212  Strengthening  the  Investigation  Capacity 
of Turkish National Police and Gendarmerie Against 
Organised Crime 
TR080213 Training of Border Police 
TR080214  Strengthening  Forensic  Capacity  of 
Turkey 
TR080215 Strengthening the Blood Supply System  

Integrated  Pollution  Prevention  and 

Integrated  Border 

Improving 

chemical 

ionising 

and 

Budget (M €) 
3.0 

5.0 

14.2 

3.8 

6.15 
13.9 
3.0 

3.05 

1.05 

2.25 
1.9 
2.3 

4.0 
2.2 

4.1 
34.5 

3.93 

21.9 

2.0 
6.3 

1.1 
19.9 

2.8 

- 70 - 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
of 

and 

Control 

Surveillance 

TR080216 
Communicable Diseases  
TR080217  Strengthening  Research  &  Development 
capacity 
TR080218  Promoting  gender  equality  in  the  work 
place 
TR080219 Improving data quality in public accounts 
TR080220  Modernisation  of  Turkish  Customs 
Administration V 
TR080301 Parliamentary Exchange and Dialogue 

3.  Civil  Society 
Dialogue 

TR080302 EU-Turkey inter cultural dialogue 

TR080303 Istanbul 2010 
TR080304  Participation 
Programmes and Agencies 
TR080401  Support  Activities  to  Strengthen  the 
European Integration Process 

to  EU  Community 

Supporting 

4. 
Programmes 

4.0 

2.0 

0.9 

1.7 
2.9 

2.2 

3.1 

1.6 
66 

9.0 

8.2.2.2.  Component II: Cross-Border Cooperation 

Under  the  Turkey-Bulgaria  2004-06  cross-border  cooperation  (CBC)  programme,  a  Joint 
Programming Document, the first multi-annual Bulgaria-Turkey CBC programme under IPA 
2007-2009, was adopted by Commission Decision on 21 December 2007. The objective of the 
Turkish-Bulgarian  IPA  CBC  Programme  is  to  help  the  border  region  between  Turkey  and 
Bulgaria  to  overcome  development  problems  resulting  from  its  relative  isolation  and  to 
support the development of co-operative networks on both sides of the border. 

The  ENPI  Black  Sea  Basin  programme  ("Black  Sea  2007-2013")  was  concluded  by  the  10 
participating countries including Turkey and submitted to the Commission, which adopted the 
programme on 27 November 2008. On 14 November 2008, the Commission adopted a second 
annual  programme  on  financing  the  participation  of  Turkey  in  the  ENPI  Black  Sea  Basin 
programme in 2008. 

8.2.2.3.  Components III and IV: Strategic Coherence Framework 

As required by Article 154 of Commission Regulation (EC) N° 718/2007, Turkey prepared a 
Strategic Coherence Framework (SCF) for the period 2007-2013, covering IPA components 
III and IV. Its purpose is to set the overall strategic framework for programming of resources 
in the context of the national priorities for social and economic development and Community 
priorities  for  cohesion,  thus  constituting  a  key  reference  document  for  programming  IPA 
regional  development  and  human  resources  development  components.  The  SCF  is  a  key 
document  to  introduce  structural  funds  strategic  planning  to  candidate  countries  (a  "mini 
NSRF"), reinforcing the role of IPA assistance under components III and IV as a precursor to 
structural funds. 
The preparation of the Strategic Coherence Framework was coordinated by the State Planning 
Organisation,  who performs  the role of Strategic Coordinator  for IPA regional development 
and  human  resources  development  components.  Throughout  its  preparation  extensive 
coordination  has  taken  place  within  the  national  administration,  particularly  the  ministries 
who  will  be  involved  in  the  implementation  of  components  III  and  IV  programmes.  Once 
finalised, it was transmitted to the Commission for information and verification of consistency 

- 71 - 

 
 
 
 
 
 
 
 
 
 
 
 
with  the  requirements  of  the  regulation,  but  the  Strategic  Reference  Framework  remains  a 
national document.  
The social and economic analysis provided by the  Strategic  Coherence  Framework  justified 
the  concentration  of  resources  under  the  regional  competitiveness  and  human  resources 
development  programmes  in  the  12  NUTS  II  regions  with  a  GDP  per  capita  below  75%  of 
Turkish  national  average.  The  strategic  objectives  are  to  upgrade  the  business  environment 
and  to  develop  better  entrepreneurial  capabilities  of  enterprises,  and  to  promote  the 
development  of  human  resources  and  skills.  As  regards  transport  and  environment, 
concentration  is  foreseen  on  a  limited  number  of  projects  which  contribute  to  promote 
interconnectivity with TEN-T network and intermodality, to promote sustainable development 
and approximation with the EU environmental acquis. 

8.2.2.4.  Component III: Regional Development  

Three multi-annual  operational  programmes  were adopted by the Commission in November 
and  December  2007  under  Component  III  for  Turkey:  "Regional  Competitiveness", 
"Environment"  and  "Transport".    The  aim  of  these  programmes  is  to  increase  the 
competitiveness of Turkey, with a particular emphasis on the poorest regions, by supporting 
the  development  of  enterprises  and  investments  in  the  transport  and  environment 
infrastructure.  

The IPA resources allocated to each programme are as follows: 

2007 
PROGRAMMES 
58,600,000 60,800,000 60,300,000 179,700,000 
III – TRANSPORT 
III– ENVIRONMENT 
67,000,000 69,500,000 67,600,000 204,100,000 
III REGIONAL COMPETITIVENESS  41,900,000 43,500,000 54,800,000 140,200,000 

TOTAL 

2008 

2009 

The  overall  objective  of  the  "Transport"  programme  is  to  increase  the  competitiveness  of 
Turkey by supporting investments in transport infrastructure In this framework the scope of 
the  intervention  in  Turkey  will  cover  transport  infrastructure,  including  in  particular 
interconnection,  interoperability  and  intermodality  of  national  networks  and  with  the  trans-
European networks. With regard to freight transportation, efforts should be deployed in order 
to  rebalance  the  modes  of  transportation  in  favour  of  rail  and  maritime  transportation.  The 
TINA  study  (Trans  European  Network  for  Transport)  is  the  key  determinant  for  the 
identification of investment priorities in the transport sector.  

The overall objective of the "Environment" programme is to increase the competitiveness of 
Turkey by supporting investments in environment infrastructure. In this framework the scope 
of  the  intervention  in  Turkey  will  cover  environment  infrastructure,  in  particular  in  water 
supply,  sewerage  and  waste  water  treatment  and  in  integrated  waste  management.  The 
intervention  should  pursuit  a  coherent  strategy  over  medium  to  long  term  and  possibly 
mobilise  additional  financial  sources  from  International  Financial  Institutions  (IFIs)  and 
donors.  The  criteria  for  project  selection  are  the  impact  on  the  population  served,  the  non 
affordability  of  the  construction  of  specific  projects  and  the  sensitivity  of  the  area.  The 
implementation  will  pursuit  the  river  basin  intergraded  approach,  the  sustainability 
development  principles,  the  national  and  regional  waste  management  planning  and  the 
compliance with relevant environmental acquis. 

The  overall  objective  of  the  "Regional  Competitiveness"  programme  is  to  increase  the 
competitiveness  of  the  poorest  regions  of  Turkey  by  supporting  enterprises.  This  objective 
will  be  achieved  through  four  specific  objectives:  enhancement  of  physical  and  financial 

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infrastructure,  increasing  business  stock,  increasing  employment  creation  capacity  of  the 
productive sector and enhancing the added value of the production base.  

Within  each  operational  programme,  a  separate  priority  on  technical  assistance  has  been 
introduced,  to  support  national  structures  managing  IPA,  including  ensuring  project 
preparation  of  high  standards  for  current  programmes  and  for  future  programming  periods. 
The institutional set-up which will be set in place for the management of IPA component III 
programmes  concentrates  financial  management  in  experienced  structures  prepared  under 
previous  assistance  instruments  (Central  Finance  and  contracts  Unit,  National  Fund)  while 
transferring overall management and responsibility for implementation to operating structures 
within line ministries. 

8.2.2.5.   Component IV: Human Resources Development 

The  Human  Resources  Development  Operational  Programme  (HRD  OP)  under  IPA 
Component  IV  was  prepared  by  the  Turkish  authorities  during  the  year  2007  in  close 
cooperation  with  the  Commission.  It  was  adopted  by  Commission  decision  on  7 December 
2007 for a period of 7 years, with a financial envelope specified for the period 2007 – 2009.  

8.2.2.6.  Component V: Rural Development 

improvement  of  EU  acquis  related 

Under  Component  V  a  multi-annual  IPARD  Programme  (Instrument  for  Pre-Accession 
Assistance  to  Rural  Development)  covering  the  period  2007-2013  was  prepared  by  Turkey 
during the course of 2007 and adopted by  Commission decision C52008)691 on 25 February 
2008.  
The  overall  objective  of  the  Programme  is  to  contribute  to  the  sustainable  modernisation  of 
the agricultural sector (including processing) through targeted investments whilst encouraging 
the 
to  food  safety,  veterinary,  phyto-sanitary, 
environmental  or  other  standards  as  specified  in  the  Enlargement  Package.  The  Programme 
should  furthermore  contribute  to  the  sustainable  development  of  rural  areas.  Based  on  this, 
three  priority  axes  and  seven  measures  to  support  the  development  of  the  selected  priority 
sectors have been identified.  
The first of the yearly modifications of the Turkish IPARD Programme was approved by the 
Member  States  in  the  Rural  Development  Committee  on  23  July  2008  subsequent  to  which 
the  Commission  adopted  it  by  Decision  C(2008)6100  on  24  October  2008.  The  financial 
tables included in the Programme were modified, adding the new financial allocation for 2010 
in accordance with the MIPD 2008-2010. Further modifications were of technical nature and 
aimed  at  facilitating  programme  implementation  and  the  accreditation  of  the  implementing 
system. 

8.2.3. 

Implementation Modalities and Structures 

Assistance  under  IPA  component  I-IV  (except  component  II  –  Turkey-Bulgaria  CBC 
programme)  will  be  implemented  through  decentralised  management,  initially  with  ex  ante 
controls  performed  by  the  Commission  on  the  tendering  of  contracts,  launch  of  calls  for 
proposals  and  the  award  of  contracts  and  grants  (the  exact  list  of  ex  ante  controls  will  be 
specified  in  the  Commission  decisions  on  the  conferral  of  management  powers  per 
component). For that purpose, a management and control system for the management of the 
different programmes has to be established and  accredited  by  the Turkish authorities  before 
the  conferral  of  decentralised  management  can  be  requested  from  and  be  given  by  the 
Commission. 
Decentralised management without ex ante controls by the Commission will only be applied 
under IPA component V from the start, while it being an objective for the implementation of 

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assistance  under  IPA  Component  I-IV.  Turkey  is  required  to  provide  a  roadmap  (as  part  of 
Financing Agreements) with indicative benchmarks and time limits to achieve this objective. 
The  minimum  criteria  for  waiving  the  ex  ante  controls  by  the  Commission  include  the 
establishment of a benchmarking system with quantitative and qualitative aspects as well as a 
sustained and noticeable downward trend with regard to the rejection rate due to the ex ante 
controls by the Commission. 
Upon the adoption of the first batch of programmes at the end of 2007, in 2008 the efforts of 
the Turkish authorities concentrated for the most part in completing the internal processes for 
the accreditation for decentralised management. In the case of IPA components I and II these 
processes were facilitated by the fact that decentralised structures and systems existed already 
under  the  pre-IPA  assistance,  thus  Commission  decision  C(2008)6218  of  29  October  2008 
conferred  decentralised  management  powers  for  Component  I  to  the  Turkish  authorities, 
while  decision  C(2008)7407  on  1  December  2008  accomplished  the  equivalent  for 
Component II on Turkey's participation in the ENPI Black Sea Basin programme.  
The decisions require Turkey to submit a roadmap for full decentralisation of the management 
of EC funds without ex ante controls by the Commission, within 3 months after the entry into 
force  of  the  Financing  Agreements  of  components  I  and  II  respectively.  It  should  include 
indicative benchmarks and time limits to achieve full decentralisation to be closely monitored 
by the Commission services, which have the power to suspend the programmes if established 
conditions are not met.  
However,  as  regards  IPA  components  III  and  IV  such  processes  had  to  be  initiated  from 
scratch, leading to the submission of an application for conferral of management in October 
2008. The verification mission carried out by the Commission audit services determined that 
further  actions  should  be  undertaken  by  the  Turkish  authorities.  The  Rural  Development 
programme will be implemented by conferring decentralised management powers without ex 
ante  controls  to  the  Turkish  Republic.  A  Commission  fact  finding  audit  mission  in  October 
2008 showed delays in the accreditation process, as the accreditation criteria and procedural 
requirements  were  not  yet  fulfilled.  It  was  concluded  that  the  deadlines  set  in  the  Turkish 
Action  Plan  were  too  optimistic,  and  the  time  planning  at  the  end  of  2008  foresaw 
accreditation during the second half of 2009, while conferral of management would not likely  
be achieved until 2010.  
The Bulgaria – Turkey Cross-Border cooperation programme under component II is the only 
programme to be implemented under shared management and the Managing Authority is the 
Ministry  of  Regional  Development  and  Public  Works  in  Bulgaria.  The  Joint  Technical 
Secretariat  of  the  Programme  will  be  located  in  Haskovo  City  and  the  procedure  for  staff 
recruiting  is  on-going  in  both  countries.  The  first  level  control  will  be  performed  in  a 
centralised way by Turkey and decentralized by Bulgaria.  

8.2.4.  Overview of IPA programmes implemented 

The  implementation  of  programmes  effectively  starts  once  the  conferral  of  decentralised 
management  decision  per  component  is  taken  by  the  Commission  and  the  Framework  and 
Financing  Agreements  have  entered  into  force.  No  IPA  programmes  were  implemented  in 
2008, as the Framework Agreement was not ratified by the parliament in Turkey and did not 
enter into force until 24 December 2008.  

-Component I 

The  2007  Financing  Agreement  for  Component  I  was  signed  and  entered  into  force  on  24 
December  2008,  thus  starting  the  implementation  of  this  programme.  Entry  into  force  was 
linked to the Commission Decision on conferral of management powers (see 8.2.3) where a 
list of conditions to be met by the Turkish authorities was established (deadlines in the course 
of 2009).  

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               -Component II 

The  2007  Financing  Agreement  for  Component  II  on  Turkey's  participation  in  the  ENPI 
Black  Sea  Basin  programme  was  signed  and  entered  into  force  on  31  December  2008. 
Implementation  was  to  be  linked  to  the  established  conditions  set  in  the  conferral  of 
management  powers  Commission  Decision  in  an  equivalent  way  as  for  component  I  (see 
8.2.3).  
The  final  version  of  the  Financing  Agreement  of  the  Bulgaria-Turkey  Cross-Border 
cooperation  programme  was  agreed  between  the  Commission  services  and  the  Turkish 
Authorities and was expected to be signed by mid 2009. 

                -Component III, IV and V 

As regards the remaining components, actual implementation of programmes has not started 
pending  the  conclusion  of  the  necessary  processes  for  the  conferral  of  decentralised 
management powers.  

8.2.5. Participation in Community Programmes and Agencies 

The  Framework  Agreement  between  Turkey  and  the  European  Community  on  the  General 
Principles  for  the  Participation  of  Turkey  in  Community  Programmes  was  signed  on  26 
February  2002,  and  entered  into  force  on  5  September  2002.  Based  on  this,  Turkey’s 
participation  in  a  number  of  programmes  is  established  through  separate  Memoranda  of 
Understanding. 
The  National  Programme  2008  foresees  Community  financial  support  of  €66  million  for 
Turkey’s  participation,  inter  alia,  in  the  following  programmes  and  agencies  for  the  year 
2009:  Lifelong  Learning  +;  Youth  in  Action;  Culture;  IDABC;  PROGRESS;  CIP/EIP; 
CIP/ICT;  Customs  2013;  7th  Framework  Programme  for  Research;  European  Environment 
Agency (EEA); European Monitoring Centre for Drugs and Drug Addiction. 

8.3.  Monitoring and Results 

8.3.1.  State  of  play  for  IPA  Monitoring  Committee  and  Sectoral  Monitoring 

Committees 

8.3.1.1.  IPA Monitoring Committee 

Programme  implementation  under  IPA  shall  be  monitored  through  the  IPA  monitoring 
committee assisted for each component by Sectoral Monitoring Committees. Each committee 
shall satisfy itself as to the effectiveness and quality of the implementation of the programmes 
and  operations.  They  may  make  proposals  to  the  Commission  and  the  national  IPA  co-
ordinator,  with  a  copy  to  the  national  authorising  officer,  for  decisions  on  any  corrective 
measures to ensure the achievements of programme objectives and enhance the efficiency of 
the assistance provided. 

An IPA Monitoring Committee meeting was held on 1 July 2008, and it was agreed that the 
TAIB Sectoral Committee is to cover also the IPA Component II programmes for which the 
management  responsibility is assigned to Turkey (Turkey's participation in ENPI Black Sea 
basin programme). 

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8.3.1.2.  Sectoral Monitoring Committees 

IPA I Transition Assistance and Institutional Building Sectoral Committees were held on 12 
June 2008 and 28 January 2009. 
IPA II Joint Monitoring Committees on Bulgaria-Turkey IPA CBC Programme were held on 
14 May and 20 October 2008. 
IPA  III  Regional  Development  Sectoral  Committees  for  the  operational  programmes  were 
organised for the three operational programmes: 

•  Environment 6 June 2008 and 22 January 2009 

•  Transport 4 June 2008 and 21 January 2009 

•  Regional Competitiveness 5 June 2008 and 22 January 2009 

IPA  IV  Human  Resource  Development  Sectoral  Committees  were  held  on  17  June  and  13 
November 2008. 
IPA V Rural Development Sectoral Committees were held on 11 June and 3 December 2008. 

As no actual implementation activities took place in 2008 due to the delays of the conferral of 
management  powers  and  late  entry  into  force  of  the  Framework  Agreement,  the  Sectoral 
Monitoring  Committees  covered  essentially  the  review  of  structures  and  processes  for  their 
future  work  as  well  as  the  discussion  and  approval  of  monitoring  tools  and  programming 
procedures (component I and II).  
For component III and IV ongoing preparations of operations and projects for future approval 
under  each  operational  programme  were  communicated  to  the  committees;  and  work  plans 
and  technical  assistance  plans  were  endorsed.  The  strategic  role  of  the  Sectoral  Monitoring 
Committees will increase in 2009, once the conferral of management for all components has 
been achieved and the implementation of component IPA programmes becomes effective.  
During  the  first  meeting  of  the  shadow  Sectoral  Monitoring  Committee  for  component  V, 
draft Rules of Procedure were approved, which ensured active involvement of Turkish NGOs 
in  the  process  of  monitoring  programme  implementation.  Besides  its  monitoring  rule,  the 
Committee's  main  resposibilities  are  to  approve  proposals  for  amending  the  Programme,  to 
approve the annual and final implementation reports before they are sent to the Commission, 
to examine the on-going and interim evaluation of the IPARD Programme and to approve the 
Technical  Assistance  Action  and  Communication  Plan  and  their  updates.  However,  the 
Regulation formally setting up the Committee and nominating its members were not adpted 
by Turkey in the year 2008. 

8.3.2    Annual and final reports on implementation  
Due to the fact that no implementation took place in 2007-2008, the sectoral annual reports 
for 2007 focused on preparatory work for implementation, and the drafting process was done 
with  a  preparatory  approach  for  all  components.  The  Commission  assessed  the  reports  and 
provided guidance and suggestions for improvement for the following years. 

8.3.2.1.   Sectoral annual reports 

-Component I 
The  IPA  Component  I  Sector  Annual  Implementation  Report  was  submitted  to  the 
Commission in view of the IPA component I Sectoral Committee meeting on 12 June 2008. 
-Component II 
As  the  ENPI  Black  Sea  basin  programme  was  not  adopted  until  27  November  2008  by  the 
Commission  it  was  agreed  that  no  sectoral  Annual  Implementation  Report  for  2007  was 

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three  sectoral  annual  reports  covering 

required.  Similarly,  ssince  the  Bulgaria  –  Turkey  IPA  Cross-Border  programme  was  not 
approved  until  21  December2007,  no  progress  on  implementation  during  2008  could  be 
reported. 
-Component III 
The 
the  operational  programmes  "Regional 
Competitiveness",  "Transport"  and  Environment"  were  submitted  to  the  Commission  by  30 
June 2008, following their discussion and endorsement by the respective Sectoral Monitoring 
Committees. A qualitative assessment of the report was carried out by the Commission, after 
which some modifications were proposed to the Operating Structure. 
-Component IV 
On  26  June  2008  the  sectoral  annual  report  2007  on  the  implementation  of  the  Human 
Resources Development Operational Programme in Turkey was sent to the Commission after 
having been examined by the HRD Sectoral Monitoring Committee in its meeting on 17 June 
2008. A qualitative assessment of the report was carried out by the Commission, after which 
some modifications were proposed to the Operating Structure.  

8.3.2.2     IPA Annual Report 

Whilst  no  progress  in  implementing  Community  Assistance  could  be  reported,  the 
Commission based its assessment of IPA as a whole on sectoral annual reports in combination 
with state of play reported at the IPA Monitoring Committee. 

8.3.3.     Evaluation results and Lessons learned  

No IPA evaluation of results was carried out in 2008, as implementation had not yet started. 

8.3.4       Sectors with positive results- Success story 

No  results  and  success  stories  from  IPA  are  available  yet  as  no  programmes  were 
implemented in 2008. 

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PART II: MULTI-BENEFICIARY AND REGIONAL PROGRAMMES  

9. 

THE YEAR 2008 IN REVIEW  

The Western Balkans and Turkey moved closer to the EU during 2008, as the countries made 
progress,  albeit  uneven,  in  reforms  and  in  meeting  established  criteria  and  conditions. 
Stability  was  maintained  in  the  Western  Balkans  and  the  situation  remained  generally  calm 
after  the  declaration  of  independence  and  the  entry  into  force  of  the  constitution  in  Kosovo 
under UNSCR 1244/99. The region continued to enjoy high growth rates, thanks in particular 
to domestic and foreign investments while, in general, reforms progressed and overall living 
standards  improved.  The  Regional  Cooperation  Council  (RCC)  took  over  from  the  Stability 
Pact, strengthening ownership of regional cooperation in South East Europe by the countries 
directly concerned. 

9.1. 

Overview of IPA programmes implemented 

9.1.1.  Addressing the Political Criteria 

9.1.1.1.  Human Rights and the Protection of Minorities 

The Sarajevo Declaration (or “3x4 Initiative”) signed in January 2005 by the governments of 
Bosnia  and  Herzegovina,  Croatia  and  Serbia  and  Montenegro  provided  a  policy  framework 
aimed at bringing about a genuine and successful solution to problems faced by refugees in 
the region. The signatories had agreed to achieve this goal by the end of 2006, but two issues 
had  still  to  be  addressed:  (i)  compensation  claims  for  lost  occupancy  and  tenancy  rights 
(OTRs)  and  (ii) recognition of pensions and  other rights.  Some positive developments were 
registered in the course of 2008, such as the adoption by Croatia in May 2008 of a Rulebook 
on convalidation, Croatia's starting to process claims, and the implementation, albeit slow, of 
its housing care programme. However, the process was not completed in 2008. 
Support  for  the  Sarajevo  process  was  provided  from  the  CARDS  2002  and  2003  regional 
programmes (€0.8 million) and CARDS 2006 (EUR 1.0m). It was renewed under IPA 2008 
(€1 million). 

9.1.2.  Regional Issues and International Obligations 

9.1.2.1.   Regional Cooperation Initiatives 

Transition  from  the  Stability  Pact  to  a  more  regionally-owned  cooperation  framework,  the 
Regional  Cooperation  Council  (RCC),  was  completed.  The  RCC,  which  operates  under  the 
guidance  of  the  South  East  European  Cooperation  Process  (SEECP)  Summit,  was  officially 
launched  on  27  February  2008  in  Sofia  on  the  occasion  of  the  last  meeting  of  the  Stability 
Pact Regional Table and the first official meeting of the RCC Board.  
The RCC is intended to sustain focused regional cooperation in South-East Europe through a 
regionally  owned  and  led  framework  that  also  supports  European  and  Euro-Atlantic 
integration.  The  work  of  the  RCC  focuses  on  six  priority  areas:  economic  and  social 
development,  energy  and  infrastructure,  justice  and  home  affairs,  security  cooperation, 
building human capital, and parliamentary cooperation as an overarching theme. 
The RCC annual meeting on 20 May 2008 in Pomorie, Bulgaria, adopted its Strategic Work 
Programme for 2008-2009. This was subsequently endorsed by the SEECP on 21 May 2008. 
Its staffing had been largely completed by the end of 2008. An agreement between the RCC 
Secretariat and Belgium for the establishment of a liaison office in Brussels was signed on 29 
August 2008. The liaison office was inaugurated on 20 October 2008. In accordance with the 
RCC  Strategic  Work  Programme  2008  –  2009  and  the  Statute  of  the  RCC,  the  Secretariat 

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initiated a process of coordination and streamlining of relevant regional initiatives in the six 
priority areas and undertook several initiatives. 
The Commission, as a member of the RCC and its Board, provides financial support for the 
Secretariat and is continuing to finance some of the initiatives established under the Stability 
Pact. It also plays an active role in donor coordination and is maintaining close contact with 
the RCC Secretary General, Mr. H. Biščević, and the RCC liaison office in Brussels.  In 2008, 
the annual Commission's contribution to the RCC budget was €1 million. 

9.1.2.2.    Public Administration (The Regional School for Public Administration (ReSPA)) 

The Regional School of Public  Administration (ReSPA) was created on the initiative of the 
Commission. It aims to (i) boost regional cooperation in the field of public administration, to 
strengthen administrative capacity and (ii) develop human resources in this field. The Protocol 
establishing  ReSPA  was  signed  in  Brussels  on  2  May  2006  by  the  Beneficiaries  (Albania, 
Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, 
Serbia and UNMIK/Kosovo).  In June 2008, a Letter of Intent to that effect was signed by all 
parties.  The  International  Agreement  which  provides  for  the  establishment  of  the  School  in 
Montenegro was signed on 21 November 2008 in Podgorica.  
The  Commission  cooperates  with  the  Organisation  for  Economic  Cooperation  and 
Development  (OECD)  on  implementing  the  ReSPA  project.  €3  million  was  allocated  under 
IPA  2008  for  ReSPA  activities.  Under  IPA  2009  a  further  €4.4  million  will  be  provided  in 
support of ReSPA activities and for strengthening the capacities of the institution. As of 2009, 
ReSPA  will  operate  with  the  technical  support  of  the  European  Institute  of  Public 
Administration (EIPA, Maastricht).  

9.1.2.3.     Disaster Risk Reduction 

A  Disaster  Risk  Reduction  Initiative,  aimed  at  preparing  a  regional  strategy  and  developing 
the  capacity  of  the  Western  Balkans  for  the  collection,  processing  and  sharing  of  data  was 
adopted by the Commission in 2008. Activities within this framework will start in early 2009 
and  will  be  based  on  the  conclusions  of  an  UN-World  Bank  study.  The  programme  will  be 
implemented in close cooperation with other stakeholders in this field: the World Bank, the 
UN  and  the  Disaster  Preparedness  and  Prevention  Initiative  for  South  East  Europe.  The 
Commission  aims  for  synergy  with  the  World  Bank’s  “Disaster  Risk  Mitigation  and 
Adaptation Initiative” supporting the Western Balkans in building local capacity, developing 
a  monitoring  network  (weather  forecasting  and  early-warning  systems),  investing  in 
infrastructure and disaster mitigation measures and establishing a regional disaster insurance 
scheme.  
€2 million was allocated to this initiative under IPA 2008.  
Concept notes have been received from the two contractors designated to undertake the first 
phase  of  the  disaster  risk  reduction  initiative  (World  Meteorological  Organisation  for  the 
coordination of the hydro meteorological institutes and UNDP for the preparation of national 
strategies  on  Disaster  Preparedness).  At  the  end  of  2008,  contracts  were  being  prepared  for 
finalisation in early 2009. 

9.1.2.4.   Civil Society 

In its November 2007 Strategy Paper, the Commission announced its intention to establish a 
new facility to promote civil society development and dialogue. The facility was launched in 
  
April 2008. The facility covers three areas of activities: 

i.  Support to civic initiatives and capacity-building to reinforce the role of civil society at a 
national level. To this end, technical assistance desks are being established or incorporated 
into existing initiatives in all Beneficiaries. Community support is €8 million under IPA 
2008. 

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ii.  "People  2  People"  Programme  which  supports  visits  to  EU  institutions  and  bodies  to 
exchange  experience,  know-how  and  good  practice  between  Beneficiaries  and  EU  and 
Member  States  Civil  Society  Organisations  (CSOs).  The  "People  2  People"  Programme 
has started and is managed by the TAIEX Unit. From July until December 2008, ten study 
tours and conferences with 240 participants were organised from existing TAIEX funds. 
The  main  topics  covered  were:  the  role  of  civil  society  in  EU  policy  making,  EU 
institutions  and  the  decision  making  process  explained  to  young  branches  of  political 
parties,  women  in  business,  social  dialogue  and  employment  policy.  €4  million  is 
available under IPA 2008 to support "People 2 People" projects.  

iii.  Partnership  Actions  carried  out  between  beneficiary  CSOs  and  the  EU  leading  to  a 
transfer of knowledge and networks as well as trans-national innovative projects. In 2008, 
support  for  these  activities  totaled  €4.5  million  and  focused  on  the  environment,  energy 
efficiency, health and safety at work and the fight against corruption, organized crime and 
trafficking. €0.3 million was transferred to DG Environment by sub-delegation to launch 
procurement in September 2008 to support the Environment Forum and ensure exchange 
of good practice with EU and IPA environment NGOs and alignment to the acquis in the 
sector.  Two  Calls  for  Proposals  were  planned  to  be  launched  in  January  2009: 
“Environment,  energy  efficiency,  health  and  safety  at  work”  and  “Fight  against 
corruption, organised crime and trafficking”. 

9.2. 

Addressing the Economic Criteria 

9.2.1.  Cooperation with International Financial Institutions 

To support investments in potential candidates, a strategy to develop regional initiatives with 
International  Financial  Institutions  (IFIs)  was  agreed  in  2007.    This  strategy  was  defined 
along three main axes: (i) Support to private investments, (ii) Promotion of energy efficiency 
investments  and  (iii)  Support  to  investments  in  infrastructure  remediation  and  upgrading. 
During 2008, significant progress was made in these areas.  
The  Infrastructure  Projects  Facility  which  was  initially  conceived  to  improve  project 
preparation and to promote infrastructure  investments in  transport, energy, and environment 
as well as the social  sector is now complemented  by a Municipal  Window  covering  project 
implementation  by  a  grant  co-financing  mechanism.  The  grants  co-finance  projects  which 
include  national  funds  as  well  as  loans  from  the  European  Investment  Bank  (EIB),  the 
European  Bank  for  Reconstruction  and  Development  (EBRD),  and  the  Council  of  Europe 
Development Bank (CEB) in association with Kreditanstalt for Wiederaufbau (KfW).  
Cooperation  with  the  European  Fund  for  Southeast  Europe  (EFSE)  to  make  loan  facilities 
available  to  micro-enterprises  and  households  also  continued  in  2008,  this  activity  proved 
particularly successful. As an example, the support of EFSE allowed a Kosovan micro finance 
institution – KrK to be put again on the path of growth. In December 2007 an EC funded loan 
to KrK amounting to €5.7 million was transferred to EFSE and restructured into a senior loan, 
a  convertible  loan  and  equity  participation.  As  a  first  step,  this  restructuring  helped  the 
institution to restructure its balance sheet by increasing the capital portion and decreasing its 
liabilities. As a second step, EFSE aimed to attract new additional investors by selling off part 
of its convertible loan to other parties. Together with KrK, EFSE managed to attract further 
international  equity  investors  like  Crédit  Coopératif  and  FMO  (entrepreneurial  development 
bank of the Netherlands). Given this success, the majority of existing shareholders including 
EFSE further increased the capital of KrK. 
The equity of the institution more than tripled within one year after restructuring and achieved 
a  very  solid  level  of  €4.8  million.  With  this  strong  equity  base,  extended  shareholders 
structure  and  solid  corporate  governance  KrK  managed  to  attract  further  debt  providers, 

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upgrade its product range and extend the outreach to new rural areas of Kosovo. Compared to 
late  2007,  the  loan  portfolio  almost  doubled  to  €14  million  with  the  client  base  exceeding 
6,000  borrowers.  One  of  KrK’s  future  scenarios  foresees  its  transformation  into  a  deposit-
taking institution.  
In its response to the global economic crisis, the Commission adopted an Economic Recovery 
Plan on 26 November 2008. In this plan, the Commission committed to continuing to support 
the economic and social consolidation of the candidates and potential candidates in the mutual 
interest  of  the  EU  and  the  region.  To  this  end,  the  Commission  intended  to  allocate  €120 
million  under  IPA  2009  for  the  purpose  of  "Crisis  Response  Package."  The  package  was 
expected to leverage an amount of €500 million in loans from IFIs. 
In  March  2008,  the  Commission  announced  that,  together  with  the  EIB,  the  EBRD  and  the 
CEB, it would establish a comprehensive Western Balkans Investment Framework by 2010. 
Its  goal  is  to  further  enhance  harmonisation  and  cooperation  in  investments  for  socio-
economic  development  in  the  region.  The  ECOFIN  Council  and  the  European  Council 
welcomed the initiative and called for its swift implementation.  At the second meeting of the 
Steering  Group  for  the  Western  Balkan  Investment  Framework  on  22  October  2008,  it  was 
agreed  that  the  European  Commission,  the  EIB,  the  EBRD  and  the  CEB  would  elaborate  a 
concrete proposal for the setting up of a Joint Grant Facility. Important work was carried out 
in  2008  by  the  IFI  partners  and  the  Commission,  concrete  proposals  were  ,  prepared  and 
negotiated between the partners and will be proposed for approval by the 3rd Steering Group 
for the Western Balkan Investment Framework in April 2009  
The IFI advisory group continues to support and to improve overall cooperation between the 
IFIs  and  the  European  Commission.  The  group  was  established  in  2007  with  the  aim  of 
optimizing the coordination of financial  assistance in  the areas  of  regional transport, energy 
and  environmental  projects,  municipalities  and  public-private  partnerships,  as  well  as  social 
issues including health, education, employment, and labour market. At the end of 2008, four 
working  groups  were  operating  on  transport,  energy,  environment  and  social  issues  are  in 
operation.  

9.2.2.  Education and Youth 

Education:  Multi-beneficiary  IPA  assistance  is  provided  in  Education  via  the  established 
Tempus and Erasmus Mundus programmes.  
The Commission offered 100 scholarships for the academic year 2007/2008 to postgraduate 
students  from  the  Western  Balkans  under  the  Erasmus  Mundus  programme.  A  further  500 
scholarships  are  available  for  the  academic  year  2008/2009.  In  March  2008,  following  the 
Council conclusions of January 2008, the Commission decided to double its annual allocation 
for  scholarships  to  the  Western  Balkans,  this  would  enable  several  hundreds  additional 
students  to  receive  a  scholarship.  The  increase  will  be  implemented  gradually  during  the 
academic years 2009/2010 and 2010/2011.   
As from the academic year 2009-2010 (IPA 2008), students from Turkey will also be eligible 
to  this  programme  which  has  been  renamed  "Erasmus  Mundus  Western  Balkans-Turkey 
Window".  
Youth:  The  Western  Balkans  window,  opened  in  2007,  provides  support  for  projects 
submitted  by  young  people,  youth  organisations  and  civil  society  organisations  from  the 
Western Balkans under the Youth in Action programme. Activities include youth exchanges, 
European  Voluntary  Service  projects,  and  training  and  networking  projects.  They  are  based 
on partnerships between organisations from the region and their counterparts from the EU.  
The  European  Community's  support  amounted  to  €1  million  under  IPA  2007.  Additional 
support  of  €1.5  million  is  provided  for  under  IPA  2008.  The  Youth  in  Action  Programme 
functions  on  the  basis  of  permanent  calls  for  proposals.  The  first  deadline  of  the  year  was 

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February  2008  but  as  financing  agreements  were  pending  signature,  the  projects  for  the 
Western Balkan Window were all selected through the deadline of September 2008. A total of 
fifty-five projects were awarded to Western Balkan youth organisations. 

9.3. 

Ability  to  assume  the  obligations  of  Membership  and  approximation  to 
European Standards 

9.3.1.  Customs and Taxation 

From  March  2006  to  February  2008,  the  CAFAO  (Customs  And  Fiscal  Assistance  Office) 
project gave support to Albania, Bosnia and Herzegovina, the former Yugoslav Republic of 
Macedonia, Montenegro, Serbia and Kosovo to increase their authorities' capacity to manage 
border  posts  and  to  increase  customs  revenues  and  excise  duties,  with  a  budget  of  €34.5 
million  (CARDS  and  IPA  2007).  As  of  February  2008,  a  new  Multi-beneficiary  project, 
TACTA  (Technical  Assistance  to  Customs  and  Taxation  Administrations),  is  in  operation 
covering  Albania,  Bosnia  and  Herzegovina,  Montenegro,  Serbia  and  Kosovo.  It  is  funded 
from  the  national  IPA  2007  budgets  of  the  Beneficiaries  for  a  total  of  €7.1  million.  A 
conference  on  Customs  Cooperation  in  South-East  Europe  was  held  in  March  2008.  The 
European  Commission  and  the  Member  States'  customs  administrations  announced  plans  to 
continue to provide expertise and technical assistance to the Western Balkans. 

10. 

IPA IN 2008 

10.1.  MIPD 2008-2010 

 The  Multi-beneficiary  Multi-annual  Indicative  Planning  Document  (MIPD)  2008-2010 
provides  the  strategic  three-year  plan  for  programming  of  the  assistance  to  candidates  and 
potential candidates through regional and horizontal projects: 

-  Regional  projects  aim  to  facilitate  regional  cooperation  between  the  IPA  Beneficiaries. 
These  programmes  endeavour  to  promote  reconciliation,  reconstruction  and  political 
cooperation.  

-  Horizontal projects  address  common needs across several IPA Beneficiaries  and  seek to 

attain efficiencies and economies of scale in implementation.  

IPA  Multi-beneficiary  assistance  focuses  therefore  on  support  that  requires  collaboration 
among the IPA Beneficiaries, such as regional structures, networks of experts or civil servants 
or  to  tackle  needs  or  problems  of  a  cross-border  nature.  Particular  focus  continues  to  be 
placed  on  Civil  Society  Dialogue  and  Development:  the  IPA  Multi-beneficiary  programme 
provides  horizontal  technical  assistance  to  support  actions  in  this  area.  To  facilitate 
coordination, administration and collaboration with International Financial Institutions for the 
joint implementation of finance facilities as well as support for the participation in Tempus, 
Erasmus Mundus or Youth in Action programmes, assistance is channelled through the Multi-
beneficiary programme. 
This MIPD also includes assistance for nuclear safety and radiation protection, the Office of 
the  High  Representative 
Information  and 
Communication, as well as audit, evaluation and monitoring.  
The Multi-beneficiary IPA MIPD 2008-2010 was approved by the IPA committee on 19 May 
2008  and  adopted  by  the  Commission  on  17  July  2008.  The  Multi-beneficiary  2008-2010 
MIPD was based on an indicative financial envelope of €458.4 million. 

in  Bosnia  and  Herzegovina,  TAIEX, 

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10.2. 

Programming exercise 

  Component 
I Transition Assistance and Institution Building 

2008 
€149.6 million10 

Eleven programmes were adopted in 2008: (i) Support to the operational budget of RCC (€1.5 
million); (ii) Contribution to the Energy Community budget (€1.3 million); (iii) Support to the 
operational  budget  for  OHR  June  2008  –  June  2009  (€6  million);  (iv)  IPA  Monitoring 
Programme (€2 million); (v) Multi-beneficiary Programme 111 (€6 million); (vi) Civil Society 
Dialogue  and  Development  (€16.5  million)  (vii)  Nuclear  Safety  and  Radiation  Protection 
(€7.03 million); (viii) Multi-beneficiary programme for support to cooperation with the IFIs 
(€50.2 million); (ix) Multi-beneficiary Programme 2a12  (€32.9 million); (x) Multi-beneficiary 
Programme 2b13  (€24.7 million) and (xi) RCC July 2009-Dec 2010 (€1.5 million).  
The programme to support the participation in the Union for the Mediterranean (€3.2 million) 
and the Cultural heritage programme (€3 million) were carried over for adoption in 2009. 
During  the  programming  exercise  in  2008,  due  account  was  taken  of  the  Accession  and 
European Partnerships as well as the Annual Progress Reports and the Enlargement Strategy 
Paper 2007-200814 which set down the priorities for the programming of assistance under the 
IPA  Multi-beneficiary  Programme  2008-2010  as  well  as  the  Communications  from  the 
Commission on Civil Society Dialogue15 and on the Western Balkans16.  

DG  Enlargement  has  established  a  transparent  consultation  process  for  the  programming  of 
the Multi-beneficiary Programme with EU Member States, Civil Society Organisations, IFIs, 
the Regional Cooperation Council as well as with the Beneficiaries. This process is aimed at 
ensuring  complementarities,  avoiding  overlaps  and  enhancing,  as  far  as  possible,  local 
ownership  of  the  choices,  content  and  design  of  the  programmes.  DG  Enlargement  staff 
responsible  for  the  implementation  of  the  Multi-beneficiary  programmes  also  participate  in 
regional  networks  and  structures  to  facilitate  coordination  amongst  the  stakeholders  and 
donors  active  in  the  region.  Special  importance  is  given  to  the  role  of  the  Regional 
Cooperation  Council  in  which  the  European  Commission  plays  an  active  role,  as  the 
interlocutor  for  the  Beneficiaries  in  particular  for  the  Regional  Cooperation  Process  in  the 
Western Balkans.  

10    This  amount  includes  national  funds  for  Tempus  and  Nuclear  safety  and  radiation  protection,  monitoring, 

interim civilian administrations and the use of carried over assigned revenues. 

11  Multi-beneficiary Programme 1 (EUR 6m) includes projects in the areas of Disaster Risk Reduction in South 
East Europe, Regional School for Public Administration in South East Europe and Refugee Return in 
the Western Balkans 

12 Multi-beneficiary Programme 2a (EUR 32.9m) pertains to projects in the areas of Preparatory measures for 
the participation in the Community Agencies; Social Inclusion; Trade; Education; Youth; Quality Infrastructure; 
Statistics and Environment. The Programme was presented to the IPA Committee on 30 September 2008; the 
Commission adopted the programme on 19 December 2008. A copy of the adopted Multi-beneficiary 
Programme 2a has been sent to EC Delegations and IPA Beneficiaries for endorsement. 
13 Multi-beneficiary Programme 2b (EUR 24.7m) pertains to projects in the areas of Police Cooperation; 
Education and Animal disease eradication. The programme was presented to the IPA Committee on 30 
September 2008; the Commission adopted the programme on 18 December 2008. Financing agreements were 
sent to the IPA Beneficiaries in early 2009. 
14  Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  –  Enlargement  Strategy 

and Main Challenges (COM/2007/663), 6 November 2007 

15 Communication from the Commission to the Council, the European Parliament, the European Economic and 
Social  committee  and  the  Committee  of  the  Regions  -  Civil  Society  Dialogue  between  the  EU  and 
Candidate Countries (COM/2005/0290), 29 June 2005 

16 Communication from the Commission - The Western Balkans on the road to the EU: consolidating stability 
and  raising  prosperity  (COM/2006/0027),  27  January  2006;  Communication  from  the  Commission  - 
Western Balkans: Enhancing the European perspective (COM/2008/127), 5 March 2008 

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10.3. 

Implementation modalities and structures  

Assistance from the IPA Multi-beneficiary programme was in 2008 implemented partly on a 
centralised  basis  by  the  European  Commission,  partly  by  decentralised  management  and 
partly by joint management with international organisations based on Article 53a, c and d of 
the Financial Regulation 

10.4.  Overview of IPA programmes implemented 

€106.4  million  was  allocated  to  the  IPA  Multi-beneficiary  programmes  in  2008,  but  the 
amount finally committed in 2008 was €149.6 million. This amount includes national funds 
for  Tempus  and  Nuclear  Safety  and  Radiation  Protection,  monitoring,  interim  civilian 
administrations  and  the  recuperation  of  some  old  (uncommitted)  administrative  expenditure 
funds.  
Of  the  total  €149.6  million  seven  contracts  were  signed  in  2008.  These  were:  (i)  Regional 
Cooperation Council (€1.5 million), (ii) OHR (€6 million), (iii) Monitoring (€2 million), (iv) 
Refugee  Return  (€1  million);  (v)  ReSPA  (€2  million)  and  (vi)  Civil  Society  Facility  – 
Component "People 2 People" (€4 million). A contribution of €1.3 million was made to the 
budget of the Energy Community. 

10.5. 

Participation in Community Programmes and Agencies 

The Western Balkans can participate in Community agencies on a case-by-case basis and the 
"entry-ticket" to participate in the Agencies is financed through the National Programmes. As 
was the case with previous Enlargements however, the EU supports the Community Agencies 
to prepare their counterparts in the Beneficiaries for participation in the activities of the EU 
Agencies. 
In November 2007, the first IPA programme to prepare Beneficiaries for future participation 
in the Community Agencies was  adopted.  The programme is implemented by the following 
agencies:  (i)  Community  Plant  Variety  Office;  (ii)  European  Aviation  Safety  Agency;  (iii) 
European Centre  for  Disease  Prevention and Control;  (iv)  European  Food  Safety  Authority; 
the  European  Monitoring  Centre  for  Drugs  and  Drug  Addiction;  (v)  European  Maritime 
Safety  Agency;  (vi)  European  Agency  for  Safety  and  Health  at  Work;  (vii)  European 
Foundation  for  the  Improvement  of  Living  and  Working  Conditions;  (viii)  European 
Medicines Agency and (ix) European  Centre for the Development of Vocational Training. 
Typical activities to be implemented by the Agencies are awareness-raising and fact-finding 
missions  to  determine  or  fine-tune  any  gaps.  Since  for  some  Agencies  and  for  some 
Beneficiaries these  needs  are  already clear, preparatory measures such as training activities, 
study visits, workshops, conferences and/or outreach actions as well as drafting/editing (and if 
necessary translation of manuals, guides and/or other relevant documents and reports for the 
benefit of Beneficiaries) are under implementation. 
As  the  Agencies  are  the  only  organisations  that  can  prepare  their  counterparts  for  future 
participation, they hold a de facto monopoly; the Commission therefore awards contracts to 
these Agencies without a call for proposals. 

11.  MONITORING AND RESULTS 

11.1.  Monitoring 

Besides  monitoring  of  projects  done  by  the  Project  Managers,  the  IPA  Multi-beneficiary 
Programmes  are  monitored  by  an  external  company  using  the  Results-Oriented  Monitoring 
(ROM)  method.  The  purpose  of  ROM  is  to  provide  a  clear,  objective,  consistent  and  user-
friendly  overview  on  projects  being  implemented  as  well  as  information  on  best 

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practices/common  mistakes  and  recommendations  for  improvement  to  the  European 
Commission and the Beneficiaries.  
Through  a  consistent  approach,  with  standardised  outputs,  ROM  highlights  strengths  and 
weaknesses  in  the  implementation  of  EC  external  assistance  projects,  by  assessing  the 
projects’ relevance, quality of design, efficiency, impact and sustainability.   
The  average  ratings  for  CARDS  and  IPA  Regional  and  Multi-beneficiary  projects  in  2008 
were: 
Criterion 

Multi-

Regional 
beneficiary  Programmes 

and 

Relevance 

Efficiency 

Effectiveness  

Impact 

Sustainability 

Average17 

2.81 

2.99 

2.82 

2.94 

2.91 

2.89 

11.2.  Evaluation results 

As  project  implementation  commenced  only  in  the  second  half  of  2008,  no  evaluation  was 
completed in 2008. 

11.3. 

Sectors with positive results- Success stories 

-  Regional  Cooperation  Council:  The  transition  from  the  Stability  Pact  to  a  more 
regionally-owned cooperation framework, the Regional Cooperation Council (RCC), was 
completed in 2008.  

-  ReSPA: The signing of the International Agreement which provides for the establishment 
of  the  School  in  Montenegro  was  initiated  on  21  November  2008  in  Podgorica.  It  shall 
enter  into  force  when  five  of  the  seven  signatories  have  deposited  their  instruments  of 
ratification,  acceptance  or  approval  with  the  Depositary,  in  this  case,  the  government  of 
Montenegro. 

-  Civil Society Facility: The Civil Society Facility, which the Commission announced in its 

November 2007 Enlargement Strategy Paper was launched in April 2008.  

-  Western  Balkan  Investment  Framework:  To  further  strengthen  cooperation  between 
the  Commission  and  the  IFIs,  it  was  agreed  to  set  up  a  Western  Balkan  Investment 
Framework  by  2010,  creating  by  the  end  of  2008  the  Western  Balkan  Infrastructure 
Initiative,  pooling  Community  funds,  grant  funds  from  the  IFIs  own  resources  and 
opening  up  for  contributions  from  the  Member  States.  The  IFIs  would  at  the  same  time 

17 Explanation of ROM Ratings:  4 Very Good; 3 Good; 2 Problems and 1 Serious deficiencies 

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create  a  Joint  Lending  Facility.    The  Western  Balkans  Investment  Framework  Steering 
Group with Members from the Commission, the IFIs and the Member States was set up to 
supervise the progress of work. The Steering Group met twice in 2008 and underlined the 
need  to  have  due  stock-taking  and  mapping  of  activities  in  support  of  infrastructure 
investments in the region funded by the European Community, the IFIs, other donors as 
well  as  the  Beneficiaries.  A  report  on  the  progress  of  the  Western  Balkans  Investment 
Framework was presented to the Council at the end of 2008.  

- 

Infrastructure  Projects  Facility:  An  Infrastructure  Projects  Facility  (IPF)  for  the 
Western  Balkans  was  established  in  November  2007  by  the  Commission,  the  EIB,  the 
EBRD  and  the  Council  of  Europe  Development  Bank.  A  steering  committee,  which 
involves the Beneficiaries, the EBRD, the EIB and the CEB, supports the implementation 
of  the  IPF.  A  Memorandum  of  Understanding  was  signed  in  May  2008.  The  facility 
includes  two  windows:  one  for  technical  assistance  (TA)  and  one  municipal  (MW). 
During  2008,  for  the  TA  window,  the  team  of  experts  started  defining  the  type  of 
assistance  required  to  improve  the  preparation  of  an  initial  list  of  eighteen  selected 
infrastructure  projects. By  the  end  of  2008,  three  of  these  projects  were  under 
implementation and a further nine projects were ready for implementation in 2009.  

-  Scholarships:  The  Commission  offered  100  scholarships  for  the  academic  year 
2007/2008 to postgraduate students from the Western Balkans under the Erasmus Mundus 
programme. A further 500 scholarships are available for the academic year 2008/2009. In 
March 2008, following the Council conclusions of January 2008, the Commission decided 
to double its annual allocation for scholarships to the Western Balkans, this would enable 
several  hundreds  additional  students  to  receive  a  scholarship.  The  increase  will  be 
implemented gradually during the academic years 2009/2010 and 2010/2011.   

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PART III: TECHNICAL AND FINANCIAL ASSISTANCE 

1. TWINNING  

Twinning  has  been  designed  and  developed  by  the  Commission  as  the  main  instrument  for 
institution  building.  It  aims  at  helping  candidate  and  potential  candidate  countries  in  their 
development  of  modern  and  efficient  administrations,  with  the  structures,  human  resources 
and  management  skills  needed  to  implement  the  acquis  so  as  to  reach  the  same  standards 
throughout the Union but also to benefit fully from European Union membership.  
This  major  institution  building  initiative  has  managed  to  mobilise  significant  human  and 
financial  resources  of  the  Commission  as  well  as  of  the  Member  States  and  the  beneficiary 
countries  to  achieve  this  administrative  overhaul.  Twinning  projects  are  based  on  the 
secondment of EU public sector experts (Member State officials or mandated body experts), 
known  as  Resident  Twinning  Advisors  (RTAs)  who  are  made  available  to  the  beneficiary 
country  administrations  for  a  period  of  at  least  one-year  in  order  to  assist  these 
administrations to obtain the mandatory result defined for each and any twinning project. To 
that effect, the Resident Twinning Advisors provide technical advice and are in charge of the 
day-to-day implementation of the twinning projects. 
They are supported by a senior project leader in their home administration, who is responsible 
for ensuring the overall thrust of the twinning project implementation and for co-ordinating all 
other  inputs  from  the  Member  State  administration  or  mandated  body  which  provides  the 
twinning  expertise.  In  order  to  achieve  the  aforementioned  mandatory  results,  it  is  indeed 
necessary to combine different means of assistance, including short-term expertise, training, 
and other services (such as translation and interpreting) in addition to the Resident Twinning 
Advisor.  
More  than  1,400  twinning  projects  have  already  been  provided  for  since  twinning  was 
launched in 1998. Each twinning project has an average budget of €1 million. Almost one half 
of  these  projects  concerns  Justice,  Freedom  and  Security  issues,  and  Public  Finance  and 
include  Agriculture  and  Fisheries, 
internal  market  matters.  Other  areas  prioritised 
Environment and Social policy. 
In 2008, 22 IPA Twinning fiches were circulated to the Member States, out of which 2 had 
been  circulated  a  first  time  in  2007  without  having  received  adequate  proposals  from  the 
Member States. Furthermore, 2 contracts for IPA Twinning projects have been approved by 
the  Commission  Steering  Committee  and  notified  in  2008.  The  distribution  of  Twinning 
projects  launched  and  contracted  under  IPA  in  the  Candidate  and  Potential  Candidate 
Countries for 2008 were as follows:  

Number of IPA Twinning Contracts approved 
and notified in 2008 
Montenegro 

1 

Kosovo 

1 

Number  of 
IPA 
circulated in 2008 
Bosnia and Herzegovina 

  project 

Kosovo 

Former  Yugoslav  Republic  of 
Macedonia 

Montenegro 

Serbia 

fiches 

5 

9 

1 

4 

1 

- 87 - 

 
 
 
 
 
 
 
 
 
 
 
Turkey 

Croatia 

Total  

1 

1 

22 

Total 

2 

The  22  IPA  Twinning  fiches  circulated  in  2008  concern  projects  in  the  following  sectors: 
Justice and home affairs (9), Environment (2), Agriculture and Fisheries (2), Public finances 
(5), Social sector (1), Transport (1), Coordination of EU legislation (2).   
Furthermore,  the  new  partner  countries  are  being  offered  the  possibility  of  drawing  on 
twinning expertise through “Twinning Light”, in order to address well-circumscribed projects 
of  limited  scope.  In  2008  this  instrument  has  been  used  extensively  by  the  beneficiary 
administrations.  

2. TAIEX 
TAIEX18 started operations in 1996 as a follow-up to the Commission’s White Paper on the 
preparation of the associated countries for integration into the internal market.  
Since then, TAIEX has evolved into an instrument providing short-term technical assistance 
to facilitate the approximation, implementation and enforcement of EU legislation. 
The TAIEX instrument remained available for the 10 Member States which acceded in 2004 
(until May 2008), to Bulgaria and Romania, to candidate and pre-candidate countries, to the 
Turkish  Cypriot  community,  as  well  as  to  the  countries  covered  by  the  European 
Neighborhood and Partnership Instrument (ENPI). 
TAIEX  organises  workshops,  expert  missions,  study  visits,  peer  assessments  and  training 
programmes designed on the basis of specific requests and needs of beneficiary institutions. 
TAIEX is demand-driven and it delivers services on a "first come, first served" basis. 
TAIEX  also  facilitates  access  to  several  databases  (CCVista,  Progress,  JurisVista,  VetLex, 
PhytoLex and Avis) with translation of legislative texts and information on the alignment of 
legislation. 
Both requests and delivery of TAIEX assistance registered significant increases in 2008. The 
number of incoming applications reached an overall total of 1,697 - 6.7 % up on 2007. The 
phasing out of TAIEX assistance to the 10 new Member States implied a significant reduction 
in the number of requests from these countries, both in absolute terms (from 407 to 157) and 
in percentage (from 26% to 9% of the respective annual totals). 
The  number  of  requests  from  candidate  and  pre-candidate  countries  increased  from  728  in 
2007 (46% of the total) to 948 (56%). 
In  2008,a  total  of  1,543  events  were  organised,  representing  an  increase  of  some  20% 
compared with 2007. IPA funds were used to finance the organisation of 406 events, attended 
by  over  10,000  participants  from  the  pertinent  beneficiary  countries  and  for  a  total  cost  of 
€5.6 million. 
In the framework of the "Civil Society Facility" launched by the EC Communication on the 
Western  Balkans  of  5 March 2008,  TAIEX  implemented  in  2008  the  pilot  phase  of  the 
"People 2 People" Programme (P2P). Participants from 162 organisations attended a total of 
seven P2P study tours, covering topics such as: agriculture and rural development; women in 
business; intercultural dialogue; etc. During the pilot phase, €0.5 million have been used from 
IPA 2008 'Civil Society' budget. Following the successful completion of this pilot phase, it is 
planned to expand the purpose and reach of P2P in the coming years. 
The  positive  results  and  the  increasing  demand  for  assistance  clearly  demonstrate  the 
usefulness of TAIEX as an instrument of know-how transfer and exchange of best practice.  

18 Technical Assistance Information Exchange Instrument 

- 88 - 

 
 
 
 
 
 
                                                 
Globally,  four  Commission  Financing  Decisions  were  adopted  in  2008  to  ensure  the 
continued funding of TAIEX operations. Two of them concerned the allocation of IPA funds: 
€30.9  million  for  the  period  2008-10  and  €4  million  for  the  "People  to  People"  Dialogue 
Programme. 

3. SIGMA  

Since  1992,  this  institution-building  instrument,  providing  assistance  in  horizontal  areas  of 
public management (public service, legal administrative framework, public integrity system, 
policy-making  and  co-ordination,  regulatory  framework,  public  expenditure  management, 
public  internal  financial  control,  external  audit  and  public  procurement),  is  principally 
financed by the EU and implemented by the OECD through contribution agreements between 
the European Commission and the OECD. 
In 2008 SIGMA worked with the two new EU Member States and the three EU candidates as 
well  as  with  potential  candidates  in  the  Western  Balkans.   Under  the  two  contribution 
agreements, work was carried out on a total of 61 projects in 2008: 34 in Bulgaria, Croatia, 
Romania and Turkey and 27 in other Western Balkans' countries.  
In the framework of  the  Instrument  for Pre-Accession Assistance (IPA), SIGMA  work  with 
all  EU  candidates  and  potential  candidates  was  launched  in  January  2009  and  will  continue 
until December 2010 under a new contribution agreement between the Commission and the 
OECD, which provides for a global budget of €10.7 million.   
In the second half of 2008 the scope of SIGMA expanded to include countries benefiting from 
the European Neighbourhood and Partnership Instrument (ENPI). The contribution agreement 
between  the  EC  and  the  OECD,  covering  SIGMA  activities  in  ENPI  beneficiary  countries 
until December 2010, provides for a global budget of €6 million.  

- 89 - 

 
 
 
PART IV: FINANCIAL DATA  

1. BREAKDOWN OF NEW IPA COMMITMENTS IN 2008 IN €

 MILLION 

1.1 COMPONENT I – TRANSITION ASSISTANCE AND INSTITUTION BUILDING PROGRAMMES 

1.1.1 COUNTRY ALLOCATIONS IN 2008 

COUNTRY 

ANNUAL 
PROGRAMME 

NUCLEAR 
SAFETY 

TEMPUS 

TOTAL 

Albania 

Bosnia & 
Herzegovina 

Croatia 

Former 
Yugoslav 
Republic of 
Macedonia 

Kosovo 

Montenegro 

Serbia 

Turkey 

TOTAL 

60.92

66.7519

41.37

37.12

182.70

26.81

168.44

256.13

840.24

0.20

0.70

1.00

0.50

0.20

0.30

4.00

1.00 

2.40 

3.00 

3.50 

1.80 

1.00 

7.00 

- 

- 

6.90

19.70 

62.12

69.85

45.37

41.12

184.7

28.11

179.44

256.13

866.84

19 Was adopted in two parts, part I for €12.5 million and part II for €54.25 million 

- 90 - 

 
 
 
                                                 
1.1.2 MULTI-BENEFICIARY ALLOCATIONS IN 2008 

Multi-beneficiary  Programme  1  (including  disaster  risk  reduction, 
ReSPA, refugee return) 

Multi-beneficiary  Programme  2a  (including  social  inclusion,  trade, 
Erasmus  Mundus,  youth,  Quality 
statistics, 
environment) 

Infrastructure, 

Multi-beneficiary  Programme  2b  (including  police  cooperation  and 
animal disease eradication)  

Support to Cooperation with IFIs 

Civil Society Dialogue and Development 

Nuclear Safety 

TAIEX 

Support to the Regional Cooperation Council 

Contribution to the Energy Community 

Support to the Office of the High Representative 

Information and Communication 

Evaluation  

Monitoring 

TOTAL  

6.00

32.9020

5.0021

50.20

16.50

0.13

12.90

3.00

1.30

6.0022

7.30

5.00

2.00

148.2323

20 Includes €10.73 million recovered from previous programmes.  
21  Funds  for  Tempus,  allocated  by  country  as  shown  in  table  1.1.1  but  implemented  horizontally,  are  also 

included in the same financing decision. Total amount for financing decision MB 2a is €24.7 million.  

22 Includes €2.04 million recovered from previous programmes. 
23 Includes €12.77 million recovered from previous programmes.  

- 91 - 

 
 
 
                                                 
1.2 COMPONENT II – CROSS BORDER COOPERATION PROGRAMMES 

1.2.1 CROSS COUNTRY COOPERATION PROGRAMMES BETWEEN MEMBER STATES  

COUNTRY 

BULGARIA 

GREECE  HUNGARY  ROMANIA 

- 

- 

- 

- 

- 

Albania 

Bosnia & 
Herzegovina 

Croatia 

former 
Yugoslav 
Republic of 
Macedonia 

Kosovo 

Montenegro 

Serbia 

Turkey 

TOTAL 

2.16 

1.87 

5.26 

1.49 

- 

- 

- 

- 

2.40

1.23 

1.34 

- 

- 

- 

- 

- 

- 

- 

2.28

- 

SLOVENIA  ADRIATIC 
PROGRAMME  

TOTAL 

- 

- 

5.39 

6.88

2.24 

2.24

0.00

2.94

6.69 

12.03

- 

- 

- 

2.69

0.00

- 

- 

- 

- 

2.57

0.00

1.24 

1.24

0.54 

7.67

1.87

- 

- 

- 

- 

- 

- 

2.83 

4.68

2.69

2.94

16.10 

34.50

- 92 - 

 
 
 
 
1.2.2  CROSS  COUNTRY  COOPERATION  PROGRAMMES  BETWEEN  IPA  COUNTRIES  AND 
PARTICIPATION IN TRANSNATIONAL PROGRAMMES   

Country 

ALBANIA 

Bosnia & 
Herzegovina 

Croatia 

fYR 
Macedonia 

Montenegro 

Serbia 

ERDF SE 
Europe / 
Med 

ENPI Black 
Sea 

Total 

Albania 

Bosnia & 
Herzegovina 

Croatia 

former 
Yugoslav 
Republic of 
Macedonia 

Kosovo 

- 

- 

- 

1.00 

- 

- 

- 

1.00

- 

- 

Montenegro 

0.60 

Serbia 

Turkey 

TOTAL 

- 

- 

- 

0.75

1.00 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

0.75

0.50

0.40

- 

- 

- 

0.50

- 

- 

0.70

0.80

- 

- 

0.60

- 

- 

0.20 

0.51 

0.51 

0.51 

- 

0.95 

0.99 

- 

0.60

1.10

0.50 

1.00 

- 

- 

1.60 

2.70

2.50 

0.75

2.15

2.10

3.67 

- 

- 

- 

- 

- 

- 

- 

1.00

1.00

1.70

2.71

2.71

1.51

0.00

3.25

3.59

1.00

16.47

1.3 COMPONENT III – REGIONAL DEVELOPMENT PROGRAMMES 

COUNTRY 

REGIONAL 
COMPETITIVENESS 

TRANSPORT  ENVIRONMENT 

TECHNICAL 
ASSISTANCE 

TOTAL 

Croatia 

11.60 

18.00

18.00

former Yugoslav 
Republic of 
Macedonia 

Turkey 

TOTAL 

- 

- 

- 

43.50 

55.10 

60.80

88.05

69.50

89.81

- 

- 

47.60

12.30 

12.30

173.80

0.74 

233.70

- 93 - 

 
 
 
 
1.4 COMPONENT IV – HUMAN RESOURCES DEVELOPMENT PROGRAMMES 

COUNTRY 

REDUCING 
UNEMPLOYMENT 

EDUCATION AND 
TRAINING / 
HUMAN CAPITAL 
INVESTMENT 

SOCIAL 
INCLUSION 

TECHNICAL 
ASSISTANCE / 
ADMINISTRATIVE 
CAPACITY 

TOTAL 

Croatia 

former 
Yugoslav 
Republic of 
Macedonia 

Turkey 

TOTAL 

2.90 

2.69 

34.00 

39.59 

5.00

1.80

13.60

20.40

3.50

1.20

- 

4.70

1.30 

0.30 

5.29 

6.89 

12.70

5.99

52.89

71.58

1.5 COMPONENT V – RURAL DEVELOPMENT PROGRAMMES 

The  table  shows  the  component  V  split  by  country  for  2008,  and  an  indication  of  the 
percentage share by main area of intervention taken from the MIPDs 2008-2010.  

COUNTRY 

COMMUNITY 
STANDARDS 

DEVELOPMENT 
OF RURAL 
ECONOMY 

TECHNICAL 
ASSISTANCE 

TOTAL 

PREPARATORY 
ACTIONS FOR 
AGRI- 
ENVIRONMENTAL 
MEASURES AND 
LEADER 

Croatia 

>60% 

<5%

>20%

- 

25.60

former Yugoslav 
Republic of 
Macedonia 

50%-80% 

0%-3%

- 

20%-50% 

6.70

Turkey 

50%-80% 

- 

20%-50%

- 

53.00

- 94 - 

 
 
 
 
2. STATE OF PLAY OF IMPLEMENTATION OF IPA 2007 NATIONAL PROGRAMMES (COMPONENT I) IN MEUR AS 
AT 31 DECEMBER 2008 

In 2008, implementation was underway for the IPA 2007 programmes. The table provides a 
summary of this implementation. Implementation of 2008 national programmes only began in 
2009.  

Country 

Albania 
Bosnia & 
Herzegovina 
Croatia  
former 
Yugoslav 
Republic of 
Macedonia 
Kosovo 
Montenegro 
Serbia 
Turkey  

Allocated 
49.27 
49.74 

Contracted  % contracted 
15%
47%

7.52
23.40

45.41 
34.94 

62.00 
23.87 
164.84 
256.20 

0.00
8.68

29.80
4.77
24.5
0.00

0%
25%

48%
20%
14%
0%

Paid 

% paid 

1.76 
5.30 

0.00 
2.90 

6.10 
0.95 
1.40 
0.00 

4%
11%

0%
8%

10%
4%
1%
0%

in € million

Implementation of 2007 IPA component I national programmes

Allocated

Contracted

Paid

300

250

200

150

100

50

0

AL

BiH

HR

fYRoM KS

MNE

RS

TK

- 95 -