REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE 2010 ANNUAL REPORT ON FINANCIAL ASSISTANCE FOR ENLARGEMENT (IPA, PHARE, CARDS, TURKEY PRE-ACCESSION INSTRUMENT, TRANSITION FACILITY)
Date: 2011-10-11
Institutions: European Commission
Subjects: EU financing, Iceland, Türkiye, Western Balkans, pre-accession aid

EUROPEAN COMMISSION 

Brussels, 11.10.2011 
COM(2011) 647 final 

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

2010 ANNUAL REPORT ON FINANCIAL ASSISTANCE FOR ENLARGEMENT 
(IPA, PHARE, CARDS, TURKEY PRE-ACCESSION INSTRUMENT, TRANSITION 
FACILITY) 

{SEC(2011) 1198 final} 

 
 
 
 
  
 
Summary 

This  report  covers  the  main  strategic  and  operational  developments  that  occurred  in  2010 
regarding  implementation  of  pre-accession  assistance,  including  considerations  on  future 
perspectives. Details of the activities undertaken during the reporting period can be found in 
the technical staff working paper accompanying this report1. For the first time this year, the 
latter  covers  in  one  single  document  both  IPA2  and  the  preceding  instruments  for  pre-
accession  and  for  the  Western  Balkans  (i.e.  PHARE,  CARDS,  Turkey  Pre-accession 
Instrument and the Transition Facility)3.  

Falling at the mid-point of the 2007-2013 financial perspectives, the 2010 Annual Report is an 
opportunity  to  look  back  at  past  successes  and  lessons  learned  and  to  look  forward  to  the 
future. This part of the report briefly sets out the political and economic context in which EU-
funded activities took  place. It covers key events in the year and progress made to improve 
strategic  planning  and  programming  documents.  It  provides  summary  reports  on  project 
implementation  and  results  as  well  as  on  donor  coordination.  Priorities  for  improving  the 
impact of IPA funds are presented. Analysis of past experience, provided by evaluations and 
conclusions  from  the  IPA  2010  Conference,  are  used  to  draw  recommendations  for  further 
improving the impact of IPA funds up to and beyond 2013.  

*** 

1. 

THE YEAR IN REVIEW: THE POLITICAL AND ECONOMIC CONTEXT 

In the last decade the Western Balkans have seen important changes, with the region moving 
towards EU integration. Yet the global financial crisis has had a deep impact on the region in 
2010. Candidate countries4 and potential candidates5 faced challenges of high unemployment, 
increased  poverty  levels,  reduced  capital  investment,  increased  public  deficits  and  uneven 
growth. In response, enlargement countries used IPA support to introduce EU-related reforms 
for  a  better  business  environment  and  so  help  lead  the  way  to  recovery  and  sustainable 
growth.  The  weakest  countries  felt  the  impact  of  the  crisis  most.  They  used  IPA  financial 
assistance to improve conditions for the most vulnerable groups in society, including for the 
social  and  economic  inclusion  of  the  Roma.  Candidate  countries  and  potential  candidates 

1 

2 

3 

4 
5 

Commission  Staff  Working  Paper  –  Background  Document  –  Accompanying  the  document  'Report 
from the Commission to the European Parliament, the Council and the European Economic and Social 
Committee  -  2010  Annual  Report  on  financial  assistance  for  enlargement  (IPA,  PHARE,  CARDS, 
Turkey Pre-accession Instrument and the Transition Facility). 
The Instrument for Pre-Accession Assistance (IPA) has an overall budget of €11.5 billion for the period 
2007-2013.  Beneficiaries  of  IPA  are  Albania,  Bosnia  and Herzegovina, Croatia,  the  former  Yugoslav 
Republic  of  Macedonia,  Montenegro,  Serbia,  Turkey,  Iceland  (as  of  2011)  as  well  as  Kosovo  under 
UNSCR  1244/99.  IPA  supports  reforms  in  the  beneficiary  countries  and  their  progressive  alignment 
with the standards and policies of the European Union and the acquis, with a view to preparing them for 
future EU membership. 
Part  I  of  the  staff  working  paper  covers  IPA  and  preceding  financial  assistance  to  the  current 
enlargement  region,  i.e.  Iceland,  the  Western  Balkans  and  Turkey.  Part  II  covers  pre-  and  post-
accession assistance to the Member States that joined the EU in 2004 and 2007, that was still ongoing in 
2010 or was being phased out. 
Croatia, the former Yugoslav Republic of Macedonia, Iceland, Montenegro and Turkey 
Albania, Bosnia and Herzegovina, Serbia as well as Kosovo under UNSCR 1244/99 

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began to reflect policies of the 'Europe 2020' Strategy6 for sustainable development and smart 
and  inclusive  growth  into  their  own  national  political  priorities  and  actions  at  the  regional 
level.  

In  spite  of  the  difficult  economic  context  there  were  some  notable  milestones  towards  EU 
integration for a number of enlargement countries in 2010 : 

• 

• 

• 

• 

2. 

Croatia is in the final stages of its accession to the EU; 

Montenegro and Iceland were granted candidate status and Iceland opened accession 
negotiations; 

Serbia presented its application for EU membership; 

Visa-free  travel  to  the  Schengen  area  was  extended  to  Albania  and  Bosnia  and 
Herzegovina. 

TOWARDS A MORE EFFICIENT AND EFFECTIVE DELIVERY OF ASSISTANCE: LINKING 
ASSISTANCE  MORE  CLOSELY  TO  THE  ENLARGEMENT  POLICY  PRIORITIES  AND  THE 
SECTOR APPROACH 

A gradual move towards the sector approach 

Following  the  2009  decision  to  move  from  a  predominantly  project-based  approach  under 
Component  I  to  a  more  comprehensive  policy-based  or  sector-based  approach  to  pre-
accession assistance7, in 2010, the Commission delivered training on aid effectiveness and the 
sector  approach  for  operational  staff  in  headquarters  and  EU  Delegations.  The  Commission 
also organised an inclusive and in depth international workshop on sector approaches in the 
context of EU  Enlargement  in  Sarajevo in March 2010. These  events addressed the need to 
share  practical  experiences  of  developing  sector  plans,  linking  sector  approaches  to  EU 
integration  objectives,  improving  country  ownership,  managing  the  governance  of  sector 
approaches and establishing a performance assessment framework to measure results.  

Co-organised  by  the  Commission  and  Bosnia  and  Herzegovina,  the  workshop  enabled 
interactions  in  practical  working  sessions  between  beneficiary  practitioners,  EU  staff  and 
other donors. Sessions demonstrated that sector-based approaches could facilitate cooperation 
among  donors  and  beneficiaries,  where  possible  under  the  lead  of  the  national  authorities. 
With stakeholders focused on the impact of combined efforts, it would be possible to avoid 
the  risk  of  duplication  and  enhance  results-based  management.  Sector  approaches  should 
allow  for  better  identification  of  short  and  longer-term  priorities  and  identification  of  a 
pipeline  of  short  and  medium-term  actions  to  address  needs  for  capacity  building,  technical 
assistance, investments, etc. 

The workshop revealed that EU integration was the main driver for national sector strategies 
and  that  some  of  the  "building  blocks"  for  sector-wide  approaches  -  such  as  a  donor 
coordinating body at the centre of government, a policy framework to link national strategies 

6 
7 

See: http://ec.europa.eu/europe2020/index_en.htm 
Cf.  2009  Annual  Report  on  the  implementation  of  the  instrument  for  Pre-Accession  assistance  (IPA, 
COM(2010) 687 final of 25.11.2010, section 1.2, page 3 

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and EU integration priorities and a programming framework linked to the budgetary process - 
were  in  place  in  many  beneficiary  countries.  There  was  nevertheless  a  need  for  continued 
assistance to prepare nationally-owned sector strategies and make them operational.  

The  challenges  and  lessons  learned  from  the  Sarajevo  workshop  are  described  in 
"Implementing  sector  approaches  in  the  context  of  EU  Enlargement:  A  "How  To"  Note"8 
which provides practical guidance on how to implement the sector-wide approach, aimed at 
EU  staff,  national  government  officials  as  well  as  other  donors  active  in  pre-accession 
countries.  

Revision of Multi-annual Indicative Planning Documents for the period 2011-2013 

The  2011-2013  Multi-annual  Indicative  Planning  Documents  (MIPDs)  prepared  in  2010,  to 
set  the  strategy  for  financial  pre-accession  assistance,  introduced  for  the  first  time  the  shift 
towards a sector approach. Nine reference sectors were identified as being the areas of most 
relevance  to  the  EU  integration  process,  namely:  i)  public  administration  reform;  ii)  justice 
and  home  affairs;  iii)  private  sector  development;  iv)  transport;  v)  energy;  vi)  environment 
and climate change; vii) social development; viii) agriculture and rural development; and ix) 
support and other activities. From these, a lesser number of priority sectors were selected in 
individual MIPDs.  

Prioritising  IPA  assistance  through  selected  sectors  was  a  challenging  task,  especially  when 
beneficiary  countries  faced  a  wide  range  of  difficulties  connected  to  their  path  towards  EU 
membership.  Nonetheless,  this  shift  was  endorsed  by  beneficiary  countries  at  the  Sarajevo 
Workshop  and  during  meetings  with  National  IPA  Coordinators  held  in  Montenegro  in 
September 2010 to prepare the 2010 IPA Conference.  

The Commission led the design process, in consultation with local stakeholders, EU Member 
States and other  donors. The sectors of  intervention were  determined through dialogue with 
the  beneficiary  countries,  based  on  the  needs  expressed  in  national  development  plans  and 
national and sector strategies, in line with the priorities outlined in the Enlargement Strategy 
and  the  Progress  Reports9  and  taking  account  of  complementarities  with  past  or  ongoing 
actions by the EU, other donors and international financial institutions.  

Sectors  linked  to  the  political  criteria,  notably  justice  and  home  affairs  and  public 
administration  reform,  were  selected  in  all  the  MIPDs,  confirming  their  importance  and 
prioritisation. In line with the recommendations of the 2010 Enlargement Strategy, the MIPDs 
confirmed  that  actions  to  address  the  fundamental  rights  or  rights  of  people  belonging  to 
minorities and vulnerable groups will be reflected in all activities programmed under IPA, in 
particular as regards public services, legislative matters and socio-economic development.  

A specific MIPD for cross-border cooperation set out plans for the re-establishment of former 
contacts between bordering regions, interrupted due to the conflicts in the region, which will 

8 

9 

Available at: http://ec.europa.eu/enlargement/projects-in-focus/donor-
coordination/meetings_events_conf_coord_aid_en.htm 
The  2010  Enlargement  Strategy  highlighted  some  common  areas  in  which  pre-accession  countries 
needed to consolidate reforms. These included reform of public administration and of the judiciary, in 
the  fight  against  organised  crime  and  corruption  and  concerning  freedom  of  expression  and  of  the 
media. The Progress Reports highlighted that a number of bilateral issues needed to be solved by the 
parties  concerned,  in  a  good  neighbourly  spirit,  taking  into  account  overall  EU  interests.  Regional 
cooperation was also highlighted as an essential element of the Stabilisation and Association process. 

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be  fundamental  for  future  cooperation  and  improved  neighbourly  relations.  The  Multi-
beneficiary MIPD prioritised support to complete the process of reconciliation in the Western 
Balkans.  It  also  highlighted  support  to  enhance  regional  cooperation  in  the  fight  against 
organised  crime  and  corruption  and  for  IPA  beneficiaries  to  establish  strong  public 
administrations,  notably  through  the  establishment  of  the  Regional  school  for  Public 
Administration (ReSPA) - see box below.  

Regional School of Public Administration 

The  opening  of  the  Regional  School  of  Public  Administration  (ReSPA)  in  Danilovgrad, 
Montenegro 
in  November  2010  allows  for  civil  servants  from  Western  Balkans 
administrations to be trained in line with the principles of the European Administrative Space 
and to improve regional cooperation in the field of public administration reform.  

Facilities  to  house  ReSPA  were  provided  by  the  Montenegrin  authorities  in  Danilovgrad  in 
2009,  for  which  equipment  and  furniture  were  supplied  by  the  EU  in  2010.  Phase  2  of  the 
project  launched  during  the  first  Governing  Board  meeting  on  23  and  24  September  2010 
aims  to  recruit  and  train  the  staff  of  ReSPA  to  deliver  training  and  networking  events  for 
officials  from  the  administrations  of  the  ReSPA  partners,  and  to  enhance  the  visibility  of 
ReSPA and its activities. 

Explicit reference to the need for IPA assistance to support recovery from the economic crisis 
was made in several MIPDs. In addition, the MIPDs underlined that enlargement policy also 
supports the Europe 2020 agenda, which offers beneficiary countries an important inspiration 
for  reforms.  Each  beneficiary  coutnry  was  invited  to  consider  the  priorities  of  the  Europe 
2020  strategy  and  adapt  it  to  their  national  context.  Other  important  sectors  selected  in  the 
MIPDs  were  social  development,  environment  and  climate  change,  agricultural  and  rural 
development, energy and transport.  

The  MIPDs  foresaw  that  IPA  may  finance  actions  which  are  not  sector-specific,  such  as 
project/sector programme identification and preparation, acquis-related actions that need to be 
adopted/implemented according to an established timetable, participation in EU Programmes 
and  Agencies  for  which  the  country  is  eligible  as  well  as  support  measures  for  the 
implementation, monitoring, evaluation and auditing of IPA programmes. 

IPA  responsiveness  in  2010  to  the  priorities  identified  in  the  Progress  Reports  through  the 
multi  annual  strategic  planning  documents  demonstrates  that  it  is  an  integral  part  of 
enlargement  strategy,  not  an  isolated  instrument.  IPA  provides  a  strategic  framework  and 
sequencing from the political monitoring of the regular reports and the partnership documents 
through to the planning and programming of financial assistance.  

Cooperation with the donor community on aid effectiveness  

In  2010  the  Commission  coordinated  action  and  responses  to  two  international  donor 
coordination  surveys  launched  towards  the  end  of  the  year.  The  first  survey,  involving 
Albania, Serbia and the former Yugoslav Republic of Macedonia, concerned implementation 
of  the  EU  Fast  Track  Initiative  on  the  Division  of  Labour.  The  second  survey  aimed  to 

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prepare the 2011 OECD DAC Survey on Aid Effectiveness10 and included Kosovo11, Bosnia 
and  Herzegovina  and  Albania.  Maximizing  aid  effectiveness  is  of  particular  relevance  in 
Kosovo, which is one of the world's most supported beneficiaries of aid12 and also Europe's 
poorest, with a per capita GNI and indicators well below the regional average in areas such as 
health and education13. The authorities in Kosovo have therefore made it a priority to increase 
the impact of external assistance. 

Initial  indications  from  the  latter  survey  (to  be  finalised  in  2011)  are  that  more  needs  to  be 
done  to  strengthen  joint  actions  –  joint  missions,  joint  analytical  work  and  joint  technical 
cooperation.  Engagement  in  these  broader  aid  effectiveness  initiatives  can  provide  a  very 
useful  springboard  for  improving  operations  on  the  ground  in  line  with  recognised 
international best practice, keeping in mind the specificities of the IPA instrument which also 
prepares  operating  structures  compatible  with  the  future  participation  in  internal  policies  of 
the EU. 

Since  2005  the  "European  Consensus  on  Development"14  has  been  the  EU  framework 
document for development cooperation, presenting a common EU vision on development, its 
objectives, values and principles. It highlights the Commission's dual role, i.e. its added value 
as representing the  combined  interest  of all Member States and its role as  donor (managing 
EU  and  EDF  funds).  IPA  is  one  of  a  number  of  financial  instruments  through  which  EU 
development policy is implemented.  

The  Commission  recognises  that  there  are  differentiated  development  needs  across 
enlargement  countries  and  that  IPA  must  be  targeted  towards  preparations  for  accession  for 
beneficiaries  who  are  very  different  in  terms  of  their  socio-economic  development  and  at 
different  stages  of  accession.  In  2010  theCommission  .  It  played  a  role  of  coordinator  in 
support  of  the  EU  enlargement  agenda,  and  promoted  coherence  and  complimentarity 
between  the  different  EU  actors  who  continued  to  provide  bilateral  support  to  the  Western 
Balkans and Turkey. 

10 

11 
12 

Every  two  years  the  OECD  conducts  a  survey  of  the  environment  for  delivering  aid  in  developing 
countries  around  the  world.  The  survey  is  based  on  five  key  principles  which  100  donors  and 
developing countries signed up to in the Paris Declaration on Aid Effectiveness. Those principles are: 1. 
Ownership:  developing  countries  set  their  own  strategies  for  poverty  reduction,  improve  their 
institutions and tackle corruption; 2. Alignment: donor countries align behind these objectives and use 
local systems; 3. Harmonisation: donor countries coordinate, simplify procedures and share information 
to avoid duplication; 4. Results: developing countries and donors shift focus to development results and 
results  get  measured;  5.  Mutual  accountability:  donors  and  partners  are  accountable  for  development 
results. 
under United Nations Security Council Resolution 1244/1999 
ODA per capita and as a proportion of GNI in a selection of countries, 2009  

Afghanistan 
Albania 
Congo, Dem Rep 
Bosnia & Herzegovina 
Ethiopia 
Kosovo 
Macedonia. FYR 
Uganda 

% GNI 
45.7 (2008) 
3 
23.9 
2.4 
13.4 
14 
2.2 
11.4 

US$ per capita 
203.7 
113.4 
35.6 
110.2 
46.1 
436.5 
94.7 
54.6 

13 
14 

Source: World Development Indicators 2010, World Bank 
Source: Kosovo Human Development Report 2010, UNDP 
OJ C 46 of 24.2.2006 

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Given the impact of the global economic crisis, it is particularly important that IPA funding, 
other  grants  and  loans  be  even  better  coordinated  to  foster  recovery  in  the  Enlargement 
countries. The introduction of the sector approach in 2010 was an important step in ensuring 
complementarity. 

Moreover, with the continuing pressure on national budgets, the donor landscape is changing: 
where  EU  Member  States  are  phasing  out  from  the  area,  most  prefer  to  support  the  EU 
integration process  indirectly  through  the  EU  Budget  and  IPA,  recognizing  the  comparative 
advantage of the EU. The World Bank (WB) and other International Financial Organisations 
(IFIs) have also linked their strategies and funding to the EU's priorities in the region. Shortly 
after Montenegro was granted candidate status, the World Bank's Country Strategy Paper for 
2011-14  acknowledged  that  the  "EU’s  presence  can  be  expected  to  become  even  stronger, 
making  it  imperative  that  the  Bank  and  other  donors  coordinate  their  programs  more 
systematically with the EU and the EU accession agenda. ".15 

Work  will  continue  in  2011  to  influence  choices  between  different  modes  of  support  that 
different donors offer and help to rationalise it through an appropriate division of labour. IPA 
funds will also continue to be channelled through multilateral agencies where these agencies 
have a clear added value and where proper arrangements for accountability, sound financial 
management  as  well  as  EU  visibility  are  in  place.  The  sector  approach  helps  to  clarify  a 
government's  accountability  to  donors  and  its  citizens,  and  donor  accountabilities,  and 
therefore to maximize external resources. Clearer objectives, measurable indicators, set jointly 
with  the  beneficiaries  in  performance  assessment  frameworks,  for  a  sector  will  help  ensure 
that  progress  can  be  quantified  and  regular  monitoring  will  help  ensure  that  where  a 
programme is not achieving its objectives, action can be taken to put things back on track. 

2010 IPA Conference  

The 2010 IPA Conference, co-organised by the Commission and the World Bank, took place 
on  6  and  7  December  2010.  It  was  attended  by  some  350  participants,  including 
representatives of EU Member States and other donors, the European Bank for Reconstruction 
and  Development,  the  European  Investment  Bank  and  the  Council  of  Europe  Development 
Bank. The Conference discussed the post-crisis difficulties faced by candidate countries and 
potential candidates and explored how deeper partnerships between the EU, the World Bank 
and the European financial institutions could help meet those challenges. Needs assessments 
by the beneficiaries for meeting EU accession criteria and the conditions necessary for macro-
economic stability and sustainable growth were also discussed.  

The  Conference  confirmed  the  importance  of  investments  and  strengthened  partnerships, 
particularly with the International Financial Institutions to support the beneficiary countries to 
participate  in  the  shared  Europe  2020  vision  of  smart,  sustainable  and  inclusive  growth. 
Complementarity,  blending  and  the  leverage  effect  of  IPA  assistance  for  IFI  support, 
investment and knowledge transfer could enhance the impacts of pre-accession financing. The 
Western  Balkans  Investment  Framework  (WBIF)  was  seen  as  a  good  example  of  pooled 
grants,  loans  and  expertise  from  the  EU,  IFIs  as  well  as  bilateral  donors  for  priority 
investment projects.  

15 

http://siteresources.worldbank.org/INTMONTENEGRO/Resources/110127-MNE-CPS-SECBO.pdf 

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The Western Balkans Investment Framework (WBIF) 
Enhancing the impact of pre-accession financing 

The  WBIF  focuses  on  key  sectors  of  the  Western  Balkan  economies  including  energy, 
environment,  transport,  social  infrastructure  and  private  sector  development.  It  aims  to 
streamline cooperation and increase financing capacity for investments that contribute to the 
socio-economic development and the accession process in the Western Balkans. 

National priorities targeting progress towards EU accession are supported. The National IPA 
Coordinators within each beneficiary country determine national priorities after consultation 
with the relevant ministries. The Commission is consulted to ensure that planned projects are 
consistent with national strategies and are aligned with EU policy. 

The pooling of resources is used to leverage maximum value from grant contributions. Where 
appropriate,  WBIF  contributions  are  combined  with  current  IPA  funding  to  optimise  the 
viability of projects, to streamline project preparation and future lending possibilities. In 2010, 
the EU bridged the project funding gap with grant co-financing investment for 12 projects.  

In the context of preparations for the next EU multi-annual financial framework after 2013, 
the  2010  IPA  Conference  was  the  opportunity  to  launch  a  stakeholder  consultation  on  the 
future of pre-accession assistance16. 

The  Conference  identified  that  greater  ownership  by  the  beneficiaries  combined  with  more 
flexibility  in  the  IPA  instrument  could  improve  the  impact  and  efficiency  of  pre-accession 
assistance.  It  was  acknowledged  that  there  was  scope  for  simplification  or  reducing 
administrative  burdens  relating  to  conferral  of  management  powers.  This  area  for 
improvement  will  be  studied  more  in  2011  as  the  Impact  Assessment  for  a  post-2013 
enlargement instrument is developed. Efforts should also be made in enlargement countries in 
2011-2013,  as  envisaged  in  the  relevant  MIPDs,  to  ensure  greater  coherence  and 
complementarity between the support provided under the various components of IPA.  

The Conference also identified a number of other areas and activities to improve effectiveness 
under the current framework for IPA assistance. Suggestions for the preparation of the future 
pre-accession  instrument  recorded  in  the  Chairman's  Conclusions17  were  that  the  next 
instrument should: 

• 

• 

• 

16 
17 

remain  focused  on  support  that  gives  a  clear  perspective  for  meeting  EU  accession 
requirements and the acquis; 

be aligned with the Europe 2020 strategy and give a clear perspective for longer term 
planning  and  programming  and  enhance  the  build  up  of  a  meaningful  pipeline  of 
realistic and bankable investment projects; 

improve  the  capacity  for  absorption  of  pre-accession  funds  as  well  as  of  structural 
funds becoming available post accession, exploring ways to lessen the gap between 
the volume of those funds;  

http://ec.europa.eu/enlargement/pdf/financial_assistance/phare/evaluation/20110912_final_report.pdf 
The  acts  of  the  Conference  are  available  at:  http://ec.europa.eu/enlargement/projects-in-focus/donor-
coordination/meetings_events_conf_coord_aid_en.htm 

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• 

• 

• 

• 

• 

build  up  the  sustainability  and  continual  improvement  of  administrative  capacity, 
including at the level of strategic planning and programming; 

consider a wider and more strategic use of sector budget support, and multi-annual 
programmes; 

create favourable conditions for IFI lending and for attracting private capital; 

the 
develop  criteria  for  effective  IPA  grant  strategies 
complementarity, blending and leverage effect of the IPA instrument for IFI support, 
investment and knowledge transfer; 

that  will  optimise 

allow for innovative investments and strengthened partnerships, particularly with the 
IFIs, which can support the beneficiary countries to participate in the shared vision of 
smart, sustainable and inclusive growth.  

Consultations with IPA beneficiaries, EU Member States, IFIs, other donors and civil society 
on the future pre-accession assistance post-2013 continued in 2011.  

On  7  December,  a  “Specialist  meeting  on  IPA  Cross–border  Cooperation  (CBC)  between 
Western  Balkans  countries”  brought  together  some  200  participants  from  the  Western 
Balkans,  EU  Member  States  and  EU  institutions.  The  meeting  acknowledged  the  positive 
outcomes  of  CBC  programmes  in  the  region,  including  with  regards  to  the  process  of 
reconciliation,  took  stock  of  milestones  and  achievements  in  the  period  2007-2010  and 
discussed  future  prospects.  The  meeting  also  launched  discussion  with  the  stakeholders  on 
IPA  CBC  post-2013  in  the  Western  Balkans.  The  participants  underlined  their  overall 
satisfaction with CBC programmes, in particular the positive impact on the local population 
(re-establishment  and  consolidation  of  contacts  with  neighbouring  communities, 
implementation of projects bringing people from both sides of the border together, preparation 
for Structural Funds, etc.). The high level of demand on the side of the beneficiaries argued 
for  an  increase  in  funds  for  CBC.  There  was  a  consensus  on  the  need  to  simplify 
implementing rules by means of further harmonisation with those of the EU Structural Funds. 

3. 

HIGHLIGHTS FROM PROGRAMMES IMPLEMENTATION AND COMPLETION IN 2010 

Implementation modalities and structures, contracting and disbursements  

Performance in 2010 showed clear progress over earlier years in most beneficiaries in terms 
of  contracting  and  disbursement  of  the  assistance.  There  was  progress  on  preparation  for 
decentralised  management  of  IPA  assistance,  with  some  differences  between  candidate 
countries and potential candidates.  

Performance in Albania improved significantly in 2010, continuing the positive trend already 
started  in  2009.  Over  EUR  92  million  was  contracted  and  progress  was  reported  in  the 
programming  exercise,  disbursement  rates  and  implementation  of  infrastructure  and 
institution  building  projects.  However,  project  implementation  remains  a  challenge  due  to 
partly weak administrative capacity in line Ministries as well as bureaucratic hurdles, such as 
missing  construction  permits.  In  2010,  Albania  renewed  efforts  to  set  up  the  necessary 
structures  and  build  the  capacity  needed  for  decentralised  management  of  IPA  assistance. 
Significant progress was achieved, especially for the key structures required for Component I 

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and V. The Commission continued preparations for the other IPA Components. The Albanian 
authorities began drafting a Strategic Coherence Framework for Components III and IV and 
dialogue  on  the  document  began  in  autumn.  Discussions  on  the  Albanian  draft  agricultural 
and rural development programme also advanced.  

Bosnia  and  Herzegovina  managed  to  contract  over  EUR  70  million  at  the  end  of  the 
reporting year, with an increase of more than 100% in comparison to 2009, while the payment 
rate  of  EUR  83.31  million  was  three  times  that  of  2009.  In  April  2010,  Bosnia  and 
Herzegovina nominated the Competent Accrediting Officer, the National Authorising Officer 
and  the  National  IPA  Coordinator.  State  and  entity  representatives  were  unable  to  reach 
agreement on the structures to support decentralised implementation of IPA and to prepare for 
the IPA Components III, IV and V. The Commission used different management approaches 
to  effectively  and  efficiently  implement  the  assistance  in  the  country,  with  the  majority  of 
assistance managed through joint and indirect central management. 

In  2010,  Croatia  experienced  some  delays  in  contracting  and  implementation  of  assistance 
under  Components  III  and  V.  This  was  due  to  delays  in  the  conferral  of  decentralised 
management, newly established bodies adding to pressures on the implementation system and 
the complexity of some large infrastructure contracts. IPA performance under Components I 
and IV was good. Together with support from SIGMA and TAIEX, 21 twinning projects were 
under implementation in the areas of public administration reform and the rule of law. There 
was significant progress in preparing accreditation for decentralised management without ex 
ante  controls,  as  shown  by  the  decrease  of  the  rejection  rate  of  files  submitted  to  the  EU 
Delegation for ex ante control. In addition, the country took over full responsibility of interim 
evaluation of assistance under Component I, while in August 2010 the Commission conferred 
the  management  of  cross-border  cooperation  programmes  on  the  Croatian  Agency  for 
Regional Development. 2010 was the first year of effective implementation of the programme 
under  Component  V:  Croatia  received  management  powers  without  ex  ante  controls  by  the 
Commission for the first measures in November 2009. 

The  former  Yugoslav  Republic  of  Macedonia  made  further  improvements  as  regards 
programming  and  obtained  accreditation  for  decentralised  management  of  assistance  under 
Component  I  in  December  2010.  Programme  implementation  accelerated,  with  the 
commitment  of  EUR  35  million  and  the  finalisation  of  88  contracts.  The  country  took 
essential legislative measures to strengthen the structures accredited to manage IPA funds and 
considerable  improvements  were  made  under  Components  I,  IV  and  V.  In  November,  the 
signature of a direct grant to the State Agency for Employment was an important milestone 
for  the  direct  implementation  of  the  Operational  Programme  for  Human  resources 
Development. Decentralised implementation of three Component V measures began. Progress 
under  Components  II  and  III  was,  however,  more  limited.  This  was  mainly  due  to, 
respectively, issues of coordination between the neighbouring authorities and the insufficient 
quality of the technical project pipeline. 

Accession  negotiations  for  Iceland  began  in  June  2010.  A  number  of  TAIEX  events  took 
place in the year and preparations for the 2011-2013 MIPD and the 2011 National Programme 
began  in  autumn.  The  degree  of  alignment  of  the  country  with  EU  legislation  through  the 
European Economic Area Agreement and its level of economic and social development make 
of  Iceland  an  exception  among  candidate  countries.  For  this  reason  it  was  agreed  that  the 
country  would  receive  IPA  assistance  exclusively  under  Component  I,  managed  by  the 
Commission.  Icelandic  authorities  have  demonstrated  high  levels  of  ownership  of  and 

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engagement  as  regards  IPA  assistance.  During  the  year,  the  National  IPA  Coordinator  was 
appointed and took up office in the Ministry for Foreign Affairs. 

Important  milestones  in  Kosovo  included  the  approval  of  cross-border  cooperation 
programmes for the first time with the former Yugoslav Republic of Macedonia and Albania. 
Project implementation began in a number of different fields including for regional economic 
development,  energy  efficiency,  judicial  reform  and  reconciliation,.  Implementation  in 
Kosovo  was  solely  under  centralised  management  by  the  European  Commission  as  Kosovo 
was  still  in  the  early  stage  towards  decentralised  management.  Local  authorities  have, 
nonetheless,  made  significant  efforts  to  increase  ownership,  especially  on  the  drafting  of 
annual programmes, and the Commission has supported this process.  

Montenegro showed positive trends in the implementation of IPA projects and contracts as 
compared to 2009. Indeed, with more than 200 contracts signed, compared to 66 in 2009, and 
81 contracts for a total value of EUR 9 millions were finished. With view to decentralisation 
in  the  management  of  EU  funds,  in  2010  Montenegro  completed  Stage  1  and  progressed  to 
Stage  2  (gap-plugging)  as  regards  Components  I  and  II,  while  for  the  other  Components 
Montenegro remained at Stage 0. Five IPA projects were dedicated to preparing the systems 
for decentralised management. 2010 has shown a progress in strengthening the capacity of the 
National Authorising Officer, the National Fund, the Central Financing and Contracting Unit 
and the Programme Authorising Officer. An Audit Authority was formally established within 
the State Audit Institution as a temporary host until the end of 2011. Following the changes in 
the  Government  at  the  end  of  2010,  a  new  National  IPA  Coordinator  and  Competent 
Accrediting Officer were appointed. 

In  Serbia,  at  the  end  of  the  year,  projects  for  a  value  of  EUR  606  million  were  being 
implemented,  a  43%  increase  over  contracting  performance  in  2009.  External  monitoring 
reports  assessed 
the 
the  average  performance  of  ongoing  projects  as 
implementation  of  both  the  2009  and  2010  programmes  as  'well-timed'.  In  2010,  Serbia 
advanced  towards  decentralised  management  of  IPA  assistance,  reaching  Stage  2  (gap-
plugging)  for  Components  I  to  IV.  With  support  from  a  twinning  project,  it  started 
establishing the structures required for the future management of funds under Component V.  

'good'  and 

In Turkey, delays in implementation continued, but, substantial amounts of IPA funds were 
disbursed from the EU to Turkey in 2010 providing for a good absorption of funds. Moreover, 
a  number  of  important  projects  were  completed  during  the  year  and  the  implementation  of 
IPA projects in areas such as education, entrepreneurship and social inclusion started to show 
significant  results.  Several  crucial  reforms  improved  the  programming,  management  and 
monitoring of EU funds. Progress was made in obtaining the accreditation of the Ministry of 
Environment and Forestry for the tendering, contracting and financial management functions 
for  the  Environmental  Operational  Programme  under  Component  III.  For  Component  V,  a 
Sectoral  Agreement  with  specific  implementation  rules  entered  into  force  in  July  2010 
providing the legal basis for implementing assistance for rural development. Major progress 
was  furthermore  achieved  with  the  submission  of  the  accreditation  package  subsequent  to 
which  the  Commission  could  start  the  preparation  process  for  conferral  of  management. 
Nevertheless, critical weaknesses in both the staffing levels and administrative capacity need 
to be addressed before decentralised implementation can be considered as fully functioning . 

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A results-oriented framework 

The economic and budgetary crisis calls for an increased focus on providing assistance with 
clear  and  measurable  objectives,  so  as  to  be  able  to  track  results  and  demonstrate  that  EU 
taxpayers are getting value for money. A better description of the tangible impacts to citizens 
in the Western Balkans and Turkey will also improve the visibility of IPA assistance and the 
additional loans and guarantees that this assistance can leverage.  

Results-oriented programming relies on clear identification and agreement on objectives and 
measurable  indicators  combined  with  robust  monitoring  procedures.  Various  reviews, 
workshops and the IPA 2010 Conference highlighted the need to further develop strategic and 
results  oriented  programming  with  a  focus  on  sector  wide  approaches,  build  capacity  for 
setting  specific,  measurable,  achievable,  realistic  and  time-bound  (SMART)  objectives  and 
related 
the 
development of baseline statistics and data as is already required for the Component III to V 
programmes.  Steps  were  taken  to  address  these  objectives  in  2010:  systems  are  already 
increasingly  focused  on  results,  and  this  will  be  further  intensified  in  2011  with  reinforced 
monitoring arrangements.  

indicators,  and  develop  appropriate  monitoring  frameworks, 

including 

A  large  number  of  projects  completed  in  2010  delivered  tangible  outcomes  and  results  in 
different sectors in both candidate countries and potential candidates. The results of structural, 
agricultural and infrastructure investments are easier to measure than results in fields related 
to the reform process and institution building. In the latter case setting measurable indicators 
is  more  challenging.  Nevertheless  outputs  and  outcomes  were  realised  through  a  number  of 
technical assistance and twinning activities supporting beneficiaries in making the necessary 
adjustments to comply with the EU acquis and standards.  

Examples in candidate countries 

In Croatia, IPA assistance was designed to respond to the enlargement strategy and address 
Croatia's  remaining  needs  vis-à-vis  EU  membership  obligations.  Under  transition  and 
institution building assistance, support was provided for a project to develop an efficient legal 
framework  aligned  with  EU  requirements  and  help  the  Croatian  Parliament  prepare  for  EU 
accession,  implemented  by  the  Croatian  Parliament  and  the  Hungarian  National  Assembly 
with  input  from  other  Member  States.  SIGMA  provided  input  and  analytical  support  to  a 
number  of  draft  legislative  packages,  including  the  National  Anti-Fraud  Strategy  and  anti-
corruption  law.  It  also  contributed  to  an  operational  programme  for  administrative  capacity 
development.  Also,  a  multi-purpose  Spatial  Information  System  was  completed  and  made 
available to the general public via the internet. All land register records were digitalised and 
organised in a single database,  making  the  Croatian real estate market much more efficient. 
During  2010  a  major  project  to  improve  maritime  safety  developed  a  monitoring  and 
management  system  for  maritime  traffic.  Three  operational  centres  and  ten  radars  were 
constructed  to  cover  the  whole  of  the  Eastern  Adriatic  and  ensure  higher  levels  of 
navigational  safety  and  pollution  prevention.  Concrete  actions  for  improving  economic 
growth  in  Croatia  included  significant  support  for  small  and  medium  sized  enterprises 
(SMEs). Twenty-four grants were awarded to export oriented SMEs to increase the volume of 
exports,  the  competitiveness  and  productivity  of  the  private  sector.  Thirty  grants  totalling 
EUR 4 million were awarded under different Cross Border Cooperation programmes between 
Croatia and Bosnia and Herzegovina, Montenegro and Serbia, to finance projects in the areas 
of environmental protection, natural and cultural heritage, economic development and social 

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cohesion. Achievement of these enlargement strategy objectives will produce benefits for the 
EU as a whole.  

The  former  Yugoslav  Republic  of  Macedonia  made  considerable  progress  towards  the 
professionalisation  of  its  public  administration.  Over  3,000  staff  were  trained  through 
workshops  and  study  visits.  IPA-funded  activities  helped  the  country  implement  a  National 
System  for  Training  Coordination  and  increased  the  practical  know-how  of  officials  in 
priority areas such as procurement, financial management and irregularities. The outcome of 
these  interventions  was  improved  capacity  within  the  Central  Financing  and  Contracting 
Department (CFCD) and the National Fund (NF). However, in 2010 the preparatory measures 
for  the  Lifelong  Learning  and  Youth  in  Action  Programmes  were  suspended  due  to 
irregularities and serious deficiencies in the financial management and control system in the 
country  for  the  implementation  of  those  programmes.  The  focus  on  institutional  reforms, 
improved public finance management, public sector capacity building and sustainability of the 
administrative capacity needed for EU integration will also contribute to the competitiveness 
of the former Yugoslav Republic of Macedonia and will support economic recovery. Progress 
was also made in aligning domestic legislation with the EU acquis in the fields of customs, 
environment  and  criminal  procedure.  In  2010  a  comprehensive  assessment  of  customs 
legislation  was  carried  out  and  a  gap  analysis  identified  the  reforms  needed  to  meet  the 
requirements of the Community Customs Code and related regulations. Technical assistance 
to help draft laws in the area of environmental protection led to tangible results. EU directives 
were fully transposed into national legislation when laws on the Management of Batteries and 
Accumulators  and  noise  protection  in  the  environment  were  adopted.  A  twinning  project 
begun  in  2009  contributed  to  the  successful  adoption  in  2010  of  a  new  law  on  Criminal 
Procedure. 

The  implementation  of  Iceland's  first  IPA  annual  programme  had  not  started  in  2010, 
pending the finalisation of a Framework Agreement between Iceland and the EU, but TAIEX 
assessment missions took place during the year on selected accession chapters to identify the 
gaps  and  needs  of  the  country  to  align  with  EU  standards  and  to  support  accession 
preparations.  Short,  targeted  TAIEX  events  for  Icelandic  authorities  successfully  raised 
awareness on very specific aspects of acquis requirements, for example concerning short term 
business  statistics  and  financial  accounts,  and  on  institutional  requirements  for  managing 
Structural Funds. 

In  Montenegro,  an  IPA-funded  infrastructure  project  to  construct  a  part  of  a  major  road  to 
by-pass  the  centre  of  the  capital  city  Podgorica  was  completed.  This  brought  immediate 
results  by  improving  traffic  flows,  better  integrating  Montenegro  into  tourist  networks  and 
aligning  national  road  safety  measures  to  EU  standards  and  contributing  to  improved 
economic growth. In the field of justice, liberty and security, twinning projects to strengthen 
inter  agency  cooperation  in  the  fight  against  organised  crime  were  completed  and  a 
surveillance  system  to  tackle  organised  crime  and  an  anti-money  laundering  database  was 
created.  Practical  support  through  a  grant  scheme  for  housing,  income  generation  schemes 
and  specialised  training  directly  assisted  over  2,100  refugees  and  displaced  persons  in 
Montenegro. This contributed to the National Strategy objective to find durable solutions for 
the  problems  of  these  vulnerable  groups.  IPA  support  resulted  also  in  the  adoption  of  a 
number of laws and associated capacity building initiatives in priority areas such as education, 
juvenile  justice,  environment  and  economic  development.  Montenegro's  efforts  to  engage 
with wider European education developments were supported through the adoption of a new 
National  Qualification  Framework.  The  framework  for  efficient  implementation  of  Juvenile 
Justice  Policy  objectives  was  strengthened  through  preparation  of  new  legislation  for  the 

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protection  of  youth  rights  and  capacity  building  for  staff  dealing  with  juvenile  justice. 
Technical Assistance to prepare relevant legislation and an action plan on energy and energy 
efficiency meant that Montenegro can implement commitments under the Energy Community 
Treaty. More than  780  public  administration staff  were  trained  in  public  procurement  and  a 
new  Public  Procurement  law  was  drafted.  Prospects  for  sustainable  economic  development 
were  improved  through  a  twinning  project  to  strengthen  the  regulatory  and  supervisory 
capacity of the financial regulators. Although ownership increased with the final beneficiaries 
involved in the preparation of IPA projects, the implementation and absorption capacity were 
sometimes  hindered  by  the  small  size  and  weakness  of  public  administration  and  staff 
working on IPA related issues. 

EU  assistance  in  Turkey  produced  major  results  in  several  fields  listed  among  the  priority 
axis of intervention in the Enlargement strategy and progress reports, notably in the areas of 
fundamental human rights, gender equality and social inclusion. EUR 2 million were provided 
to support local centres for women to help reduce gender inequalities and increase women's 
social,  economic  and  political  status  in  the  least  developed  regions  of  Turkey.  Civil  society 
cohesion  was  addressed  through  the  project  "EU-  Turkey  Civil  Society  Dialogue  -  Cultural 
bridges".  Arts  and  cultural  events  in  18  countries  successfully  promoted  cultural  exchange 
and helped tackle prejudices that exist in Turkish and European societies. This objective was 
pursued  through  the  continuation  of  the  Jean  Monnet  Scholarship  programme:  this 
programme, introduced in Turkey in 1989, has offered young Turkish people an opportunity 
to carry out post-graduate studies in the EU and has enabled more then 1,100 civil servants, 
new graduates, and private sector employees to acquire new knowledge and skills related to 
EU  accession.  A  significant  project  to  support  the  labour  market  ended  in  April  2010.  This 
project  helped  11,000  unemployed  women  and  young  people  from  25  cities  to  find  jobs  by 
providing  vocational  training  opportunities  and  quality  advisory  services.  In  addition,  long 
term  investment  support  to  create  the  conditions  for  sustainable  employment  opportunities 
was  provided  to  small  and  medium  sized  businesses  and  enterprises  (SMEs).  through  the 
Small  Enterprise  Loan  Programs  I  and  II  (SELP).  SMEs  make  up  99%  of  all  enterprises  in 
Turkey  and  are  the  backbone  of  the  economy,  yet  loan  facilities  are  difficult  to  access. 
According to statistical data gathered from the on-lending banks, by the end of 2010, 11,291 
new jobs were created and 34,346 jobs secured in 49 Turkish provinces. SELP will continue 
to ensure strong support for investments and employment through loans and working capital 
until 2012.  

Examples in potential candidates 

80  contracts  were  closed  during  2010  in  Albania  under  CARDS.  Concrete  results  were 
delivered  in  a  number  of  priority  areas  including  justice,  home  affairs  and  the  protection  of 
fundamental rights. A project to support civil service reform resulted in several draft laws to 
modernise the legal framework and a Prime Ministerial Order concerning the management of 
civil  servants  in  line  ministries  and  in  the  Council  of  Ministers.  This  formed  the  basis  for 
setting  clear  rules,  revising  procedures  and  reinforcing  the  management  capacity  of  the 
Albanian Department of Public Administration. A project to prepare Albanian authorities for 
decentralised  management  of  EU  funds  led  to  substantial  progress  in  the  setting  up  of 
operating  structures  and  management  control  systems.  There  were  positive  results  on 
safeguarding  fundamental  rights  through  the  compilation  of  voters'  lists  through  the 
establishment  of  the  National  Register  of  Addresses  and  the  National  Register  for  Civil 
Status. Support for reform of the Albanian State Police was provided by police experts from 
different  Member  States.  Their  interventions  helped  to  improve  understanding  and  the 
capacity  to  treat  prisoners  and  detainees  according  to  EU  standards.  Support  for 

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implementation  of  the  National  Environmental  Strategy  brought  Albania  closer  to  a  proper 
transposition  of  the  environmental  acquis.  This  benefits  Albania  and  its  neighbours  in  the 
Western  Balkans  and  has  an  added  value  also  for  EU  citizens,  as  possible  environmental 
disasters  with  implications  on  neighbouring  EU  countries  will  be  better  contained  and  the 
risks minimized. 

2010  saw  completion  of  almost  all  CARDS  programmes  in  Bosnia  and  Herzegovina.  IPA 
assistance continued  with a  focus on public administration reform,  strengthening the  rule of 
law and aiding recovery from the global economic crisis. A project to enhance transparency 
between  local  government  and  civil  society  organisations  (CSOs)  was  successfully 
implemented  at  municipality  level.  Transparent  mechanisms  for  disbursement  of  municipal 
funds to CSOs were set up and communication and cooperation between authorities and CSOs 
were increased. 67 sub-projects were implemented with a focus on poverty reduction, social 
inclusion,  gender  equality,  human  rights,  environment  and  improving  the  situation  of 
minorities  and  vulnerable  groups.  A  joint  project  for  efficient  prison  management  was 
implemented  by  the  Council  of  Europe.  More  than  420  penitentiary  staff  were  trained  to 
manage the detention of prisoners according to EU standards, 12 staff were trained as trainers, 
legal frameworks were adopted and collaboration between prison staff and ministry officials 
was  reinforced,  an  important  benefit  in  an  administratively  and  politically  fragmented 
situation. Technical assistance was provided to the Central Bank towards compliance with EU 
central  banking  standards.  IT  communication  solutions  recommended  under  the  project 
enabled  the  Central  Bank  to  improve  the  preparation  of  statistical  data  and  information  to 
decision makers and economic analysis on fiscal stability.  

The protection of minorities and vulnerable groups is a serious and urgent issue for Kosovo. 
IPA-funded projects produced achievements in this area in 2010. The Roma Camp in Cesmin 
Lug was closed and 130 refugee families from minority communities were able to return to 
Kosovo,  with  a  comprehensive  package  of  assistance  and  professional  training  aimed  at 
ensuring their resettlement and reintegration. In the field of justice, a project on vetting and 
re-appointment  of  judges  and  prosecutors  reviewed  the  suitability  of  all  applicants  for 
permanent  appointments  as  judges  and  prosecutors  and  led  to  the  appointment  of  well-
qualified  staff  in  many  crucial  judicial  positions.  60%  of  the  appointees  were  new  to  their 
positions, which marks a major rejuvenation of Kosovo's judiciary and prosecution services. 
Support for border and boundary police has offered tailored training to more than 750 police 
officers to improve their ability to prevent illegal border crossings and contraband, to better 
coordinate with neighbouring countries and to move closer to the EU rule of law standards. A 
pilot project on energy efficiency - a top priority of the EU's strategy for the entire Western 
Balkans region – helped reduce energy use and energy demand. Following the establishment 
of a legal framework and national plan on energy efficiency, IPA assisted the implementation 
of  the  plan.  Demonstration  projects  in  schools  and  hospitals  raised  public  awareness. 
Assistance  was  provided  to  local  government  to  improve  capacity  to  estimate  energy 
expenditure and to implement energy audit processes. The existence of a legal and regulatory 
framework encouraged IFIs to provide funds for both the private and public sector to invest in 
energy  efficiency.  For  example,  the  European  Bank  of  Reconstruction  and  Development 
provided small loans to promote energy efficiency in SMEs.  

Serbia  reported  good  results  in  the  field  of  protection  of  people  belonging  to  minorities  or 
vulnerable  groups.  A  grant  project  for  refugees  and  internally  displaced  persons  provided 
accommodation and support for income generating activities and consequently enhanced the 
quality of life of roughly 600 vulnerable families. IPA assisted also the Public Agency for the 
accreditation  of  health  care  institutions  to  provide  a  safer,  more  equitable  and  high 

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performance  oriented  health  care  system,  in  line  with  EU  systems.  Regional  infrastructure 
received  support  through  water  suppy,  wastewater  and  solid  waste  treatment  infrastructure 
projects.  A  project  to  build  the  new  Žeželj  Bridge  in  Novi  Sad,  with  associated  connecting 
infrastructure will have positive impacts also in neighbouring countries and the wider Europe, 
as  Novi  Sad  is  located  on  the  international  'Corridor  X',  which  is  the  transport  artery 
connecting  Central  and  South  East  Europe.  Specific  interventions  related  to  meeting  acquis 
requirements  included  the  full  alignment  of  Serbia  to  EU  air  protection  legislation,  opening 
the way for preparatory works to develop cleaner air plans at municipality level. Orthophoto 
digital  maps  of  the  whole  country  were  prepared  and  the  first  national  campaign  for  oral 
vaccination  of  foxes  against  rabies  took  place,  constributing  to  the  overall  EU  effort  to 
eradicate rabies and swine fever in the Western Balkans.  

4. 

ADDITIONAL LESSONS FOR THE FUTURE  

During  2010  the  Commission  completed  a  number  of  major  evaluations  related  to  pre-
accession assistance18: 

– 

– 

– 

– 

A mid-term meta evaluation of IPA; 

An  evaluation  on  stakeholder  participation  in  programming  and  implementation  of 
pre-accession assistance to Turkey; 

An  evaluation  of  the  relative  costs  and  benefits  of  Twinning  and  Technical 
Assistance; 

An  interim  evaluation  of  cross  border  programmes  (CBC)  between  candidate  and 
potential candidate countries; 

IPA meta evaluation  

The IPA meta evaluation focused mainly on the IPA strategic framework (the MIPDs) and on 
the programming logic, mainly under Component I. It assessed how assistance is planned and 
programmed and its relevance, efficiency, effectiveness, impact and sustainability. 

The  evaluation  concluded  that the MIPDs provided direction and focus to the programming 
process for all IPA components, and were an improvement on the equivalent documents for 
past  pre-accession  assistance  programming.  Donors  in  IPA  beneficiaries  acknowledged  the 
leading role played by the EU, and to varying degrees they used the MIPDs to orientate their 
own  programming.  The  evaluation  found  that  the  mechanisms  for  coordination  and 
harmonisation  of  assistance  were  well  established.  Financial  needs  of  beneficiary  countries, 
particularly  for  infrastructure,  clearly  exceeded  available  IPA  (and  other  donor)  funding. 
Therefore,  a  key  future  challenge  for  IPA  assistance  is  to  support  efficient  use  of  all  donor 
financial  flows  and  to  play  a  leverage  role  for  other  financing  sources.  The  evaluation 
reported good examples of using of IPA to leverage financing from donors/IFIs, particularly 
for infrastructure projects. 

Some efficiency issues in terms of timely implementation were reported for the first year of 
IPA in 2007, but the pace of contracting and implementation had picked up since. The quality 

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of objectives and indicators in both MIPDs and lower level programming documents (Annual 
National Programmes and project fiches) had improved over the 2007-2009 period. Projects 
were generally found to be relevant. Overall, the output in terms of immediate results of IPA 
assistance,  e.g.  number  of  people  trained,  were  delivered.  However,  the  results  at  outcome 
level i.e. the benefits that will be experienced as a result of the training were less explicit. IPA 
effectiveness  was  found  to  be  strongest  in  acquis-related  areas,  but  some  horizontal  areas, 
such as public administration reform, were particularly challenging.  

Further improvements were recommended, including an enhanced the role for the beneficiary 
countries  throughout  the  project  preparation  and  selection  process  A  key  determinant  of 
achieving impact and sustainability was the beneficiaries' ownership of the reform agenda and 
the capacity of their administrations. With this in mind, the evaluators reported some risks for 
impact and sustainability related to adequate staffing levels and the retention of skilled staff. 

Focussing  assistance  on  a  more  limited  number  of  sectors  could  enhance  effectiveness  and 
future  impact.  Adoption  of  a  multi-annual/sector-based  approach  under  Component  I  (as 
already used under other IPA components) should facilitate prioritisation and sequencing of 
assistance, donor coordination and enhance beneficiaries' ownership of assistance. A gradual 
introduction of a sector-based approach, taking into account beneficiaries' capacity to manage 
implementation was recommended. 

Evaluation  on  stakeholder  participation  in  programming  and  implementation  of  pre-
accession assistance to Turkey 

This evaluation assessed stakeholders’ participation in the programming and implementation 
of  IPA  Component  I.  It  recommended  how  this  could  be  deepened,  to  improve  the 
performance of financial assistance. 

Stakeholder participation was generally accepted as a principle and interest in strengthening 
and  broadening  stakeholder  participation  in  programming  was  growing.  Development 
partners  and  EU  organizations  made  up  of  stakeholders  involved  in  the  programming  and 
implementation of IPA (13%), governmental institutions (46%) and civil society organisations 
(41%). External stakeholders were involved in information sharing and consultation processes 
but not so much as partners or in co-decision making. This resulted in limited ownership and 
sense of commitment to the process from their side. 

The  evaluation  found  that  the  development  of  sector  strategies  was  an  important  step  to 
strengthen  effective  stakeholder  participation  but  a  longer  term  perspective  was  necessary. 
The  preparation  and  revision  of  the  MIPD  had  offered  limited  scope  for  wide  stakeholder 
participation.  Inviting  written  comments  on  draft  MIPDs  from  development  partners  and 
CSOs, did not stimulate adequate levels of dialogue in the 2007-2009 period. The preparation 
process  of  the  Annual  National  Programme  under  Component  I  was  found  to  be  the  main 
bottleneck for stakeholder involvement, and the contribution of external stakeholders in this 
phase was limited. Of the different delivery mechanisms, grant schemes were found to offer 
the largest scope for stakeholder participation, for example with final beneficiaries.  

The  evaluation  recommended  a  stakeholder's  assessment  should  be  an  integral  part  of  the 
development of sector strategies. This would help determine the relevant actors in a particular 
field,  their  capacities  and  expected  contribution  to  achieving  the  long-term  strategic 
objectives. Strong leadership would be required from the beneficiary institutions in charge of 

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coordinating  financial  assistance  to  provide  operational  support  and  guidance  across  the 
whole beneficiary administration on this. 

Evaluation of the relative costs and benefits of Twinning and Technical Assistance 

This evaluation was a comparison of two delivery instruments common in the implementation 
of IPA programmes: twinning and technical assistance (TA). The period studied was IPA 2007 
– 2008, PHARE 2005 – 2006, CARDS 2005 – 2006 and the Turkey pre-accession assistance 
instrument 2005 – 2006.  

The evaluation found that in practice the choice of TA or twinning was based on three criteria: 
the  nature  of  the  assignment  (twinning  mainly  for  acquis-related  areas),  the  maturity  of  the 
beneficiary institution, and the capacity of the beneficiary organisation. The final selection of 
the  instrument  was  correctly  made  through  dialogue  between  EU  Delegations,  DG 
Enlargement and the National IPA Coordinator. Although, in general, beneficiaries were found 
to  be  well-placed  to  make  an  informed  choice  of  instrument,  several  beneficiaries  indicated 
that they still had difficulties in making a proper selection between twinning and TA. As part 
of this evaluation, a set of criteria were proposed to help decide when to use twining or TA. 

TA projects significantly exceeded twinning projects in terms of both number of projects and 
financial  resources  (around  four  times  greater),  but  the  share  of  twinning  projects  increased 
over time, and was larger in candidate countries than in potential candidates. No significant 
difference  was  found  in  the  success  of  twinning  versus  TA  projects.  But  twinning  was  the 
preferred option for many because of tangible benefits, not least the establishment of a lasting 
relationship with a comparable organisation in an EU Member State, as well as a change in 
the  working  culture.  On  a  unit  cost  basis,  twinning  was  found  to  be  23%  cheaper  than TA. 
However,  TA  was  perceived  by  beneficiaries  to  be  the  more  flexible  and  easier  to  control 
instrument.  

While indicating that twinning was very much appreciated by all stakeholders, the evaluation 
raised two concerns about the functioning of the instrument: the long lapse of time that often 
separates the gap assessment and the implementation of the project, and lack of flexibility of 
some current implementation procedures, which would be beneficial to adapt the assistance to 
the situation on the ground.  

Interim  evaluation  of  cross  border  programmes  (CBC)  between  candidate  countries  and 
potential candidates 

The  first  report  under  this  evaluation  focussed  on  programming,  governance  structures  and 
processes.  The  second  part  will  be  concluded  in  2011  and  will  focus  on  programme 
implementation. 

The  report  found  that  the  needs  assessment,  the  strategy  and  the  objectives  in  the  CBC 
programmes were in general coherent. However, the future impact of the programmes could 
be improved by increasing stakeholder awareness of CBC's role as a precursor for Structural 
Funds, and by ensuring that local and regional administrations were fully represented on Joint 
Monitoring Committees. 

Stakeholders' perceptions suggested that CBC programmes were delivering results in terms of 
improved  neighbourly  relations  and  re-establishing  pre-conflict  contacts.  The  grant  award 
process was generally well documented and the large number of grant applications submitted 

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indicated a clear interest in the programmes. However, thematic and cross-cutting issues were 
not always well addressed and procedures were found to be cumbersome and time consuming.  

The  report  recommended  that  the  socio-economic  analysis  should  be  strengthened  with  a 
more updated statistical basis, a better explanation of criteria used as well as better alignment 
with statistical areas. The report also recommended that in future final draft programmes were 
made available (through internet or other means) for wide public consultation. Finally, it was 
recommended  that  the  application  package  and  the  evaluation  procedure  should  be 
streamlined and simplified.  

5. 

CONCLUSIONS LOOKING BACK AND INTO THE FUTURE: PRE-ACCESSION ASSISTANCE 
AFTER 2013  

2010  was  a  good  year  for  IPA,  showing  steady  improvement  in  strategic  focus  and  better 
impact. This Report shows how pre-accession funding assisted in building stable institutions, 
strengthening democratic processes and the rule of law, human rights and the respect for and 
protection  of  minorities.  IPA  support  helped  create  the  conditions  for  better  functioning 
market  economies  and  supported  the  development  of  better  skilled,  more  employable  work 
forces  in  a  time  of  economic  difficulty.  It  encouraged  regional  cooperation,  contributed  to 
sustainable development and inclusive growth, in addition to beginning to build awareness of 
the critical challenge of climate change. Candidate countries were also better prepared to take 
on  the  obligations  of  EU  membership.  This  concerned  in  particular  the  preparation  for  the 
implementation  of  future  structural  and  rural  development  policies  and  funds.  Not  only  has 
the  setting-up  of  social,  environmental  and  economic  infrastructures  and  competitive 
agricultural  as  well  as  safe  and  hygienic  food  production  been  supported  but  efficient  and 
effective implementing structures and systems for post-accession funds have continued to be 
built up successfully as well. 

The  closer  partnership  with  the  Western  Balkans  and  Turkey  embodied  in  pre-accession 
assistance  also  offers  benefits  for  EU  Member  States,  such  as  enhanced  security  of  energy 
supply as well as safe and hygienic food imports, more security at the external borders of the 
EU and better prospects for the management of global challenges such as combating climate 
change and pollution.  

The enlargement process has created opportunities for the EU to engage in broader strategic 
actions.  To  this  end  and  with  a  view  to  ensure  policy  coherence,  enlargement  policy  has 
begun  to  dovetail  with  the  Europe  2020  strategy.  In  this  way,  enlargement  policy  generates 
benefits  for  the  EU,  and  for  the  candidate  countries  and  potential  candidates  to  achieve 
strategic objectives for economic recovery and sustainable growth.  

The introduction of the sector approach in the MIPDs for 2011-2013 will lead to a reduction 
of  the  number  of  intervention  fields  in  all  enlargement  countries,  better  prioritisation  and  a 
more definite focus on results. It also helped the beneficiary countries to pay greater attention 
to  the  feasibility,  complementarity  and  coherence  of  IPA  funded  interventions  with  the 
national  sector  plans  and  strategies,  and  the  support  for  these  plans  by  other  donors.  More 
remains  to  be  done  in  2011  and  beyond  to  ensure  more  complete  ownership  at  the  country 
level and to correctly identify and address capacity building needs in the beneficiary countries 
so  as  to  reap  the  full  anticipated  benefits  of  the  sector  approach.  In  areas  that  expose  the 
region to dynamic global challenges, such as climate change, the MIPD 2011-2013 recognizes 
that  efforts  need  to  intensify  at  the  national  and  regional  level  to  prepare  the  countries  to 

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mitigate and adapt to climate change impacts.  The  Commission will  seek  to apply  as  far as 
possible principles of alignment, division of labour and management for development results. 

The  EU  also  explored  how  deeper  partnerships  between  the  EU  and  European  and 
international  financial  institutions  could  help  meet  the  needs  of  the  beneficiaries  through 
enhanced partnerships and new financing mechanisms such as blending.  

2010  saw  increased  ownership  by  beneficiaries  of  IPA,  as  demonstrated  through  increased 
leadership  of  donor  coordination  and  through  carrying  out  their  own  needs  assessments  for 
preparing  for  EU  accession  and  for  achieving  broader  development  aims,  macro-economic 
stability and sustainable growth in preparation for the IPA 2010 Conference. In addition, there 
was  considerable  engagement  from  beneficiaries,  especially  the  National  IPA  Coordinators 
and authorities responsible for European integration in supporting and developing approaches 
to  improve  performance  measurement  and  demonstrate  the  impact  of  IPA  funds  to  their 
citizens. 

Credible prospects of future EU membership remains the strongest driving force for reforms 
and the transformation of the societies in the enlargement countries. The efficient and well-
targeted  use  of  IPA  funds  combined  with  its  power  to  leverage  resources  from  IFIs  should 
contribute to faster progress in the accession process.  

Finally,  2010  opened  a  public  consultation  on  how  the  IPA  instrument  can  be  further 
improved,  under  the  next  multi-annual  financial  framework  of  the  EU,  to  produce  the  most 
positive  impact  on  the  progress  of  the  Western  Balkans,  Turkey  and  Iceland,  which  would 
also bring benefits for the EU and its Member States. 

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