COMMISSION STAFF WORKING PAPER Background document
Date: 2011-10-11
Institutions: European Commission
Subjects: EU financing, Iceland, Türkiye, Western Balkans, pre-accession aid

EUROPEAN COMMISSION 

Brussels, 11.10.2011 
SEC(2011) 1198 final 

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, Transition Facility 

{COM(2011) 647 final} 

 
 
 
 
  
 
TABLE OF CONTENT 

PART I: FINANCIAL ASSISTANCE TO ICELAND, THE WESTERN BALKANS AND 

TURKEY ..................................................................................................................... 6 
ALBANIA.................................................................................................................... 6 

Summary ...................................................................................................................... 6 

Strategic planning and programming ........................................................................... 6 

1. 

1.1. 

1.2. 

1.2.1.  Multi-annual Indicative Planning Document ............................................................... 6 

1.2.2.  Programming................................................................................................................ 8 

1.3. 

Implementation of assistance ..................................................................................... 13 

1.3.1. 

IPA ............................................................................................................................. 13 

1.3.2.  CARDS ...................................................................................................................... 18 

2. 

2.1. 

2.2. 

BOSNIA AND HERZEGOVINA.............................................................................. 22 

Summary .................................................................................................................... 22 

Strategic planning and programming ......................................................................... 22 

2.2.1.  Multi-annual Indicative Programming Document ..................................................... 22 

2.2.2.  Programming exercise................................................................................................ 24 

2.3. 

Implementation of assistance ..................................................................................... 28 

2.3.1. 

IPA ............................................................................................................................. 28 

2.3.2.  CARDS ...................................................................................................................... 35 

3. 

3.1. 

3.2. 

CROATIA .................................................................................................................. 37 

Summary .................................................................................................................... 37 

Strategic planning and programming ......................................................................... 38 

3.2.1.  Multi-annual Indicative Planning Document ............................................................. 38 

3.2.2.  Programming exercise................................................................................................ 39 

3.3. 

Implementation of assistance ..................................................................................... 42 

3.3.1. 

IPA ............................................................................................................................. 42 

3.3.2.  CARDS and PHARE ................................................................................................. 55 

4. 

4.1. 

4.2. 

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA................................ 60 

Summary .................................................................................................................... 60 

Strategic planning and programming ......................................................................... 60 

2 

 
 
 
4.2.1.  Multi-annual Indicative Planning Document ............................................................. 60 

4.2.2.  Programming exercise................................................................................................ 62 

4.2.3.  Component II ............................................................................................................. 65 

4.3. 

Implementation of assistance ..................................................................................... 66 

4.3.1. 

IPA ............................................................................................................................. 66 

4.3.2.  CARDS ...................................................................................................................... 76 

5. 

5.1. 

5.2. 

ICELAND .................................................................................................................. 78 

Summary .................................................................................................................... 78 

Strategic planning and programming ......................................................................... 78 

5.2.1.  Multi-annual Indicative Planning Document ............................................................. 78 

5.2.2.  Programming exercise................................................................................................ 79 

5.3. 

Implementation of assistance ..................................................................................... 79 

5.3.1. 

IPA ............................................................................................................................. 79 

6. 

6.1. 

6.2. 

KOSOVO ................................................................................................................... 82 

Summary .................................................................................................................... 82 

Strategic planning and programming ......................................................................... 82 

6.2.1.  Multi-annual Indicative Planning Document ............................................................. 82 

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

6.3. 

Implementation of assistance ..................................................................................... 86 

6.3.1. 

IPA ............................................................................................................................. 86 

6.3.2.  CARDS ...................................................................................................................... 92 

7. 

7.1. 

7.2. 

MONTENEGRO........................................................................................................ 94 

Summary .................................................................................................................... 94 

Strategic planning and programming ......................................................................... 94 

7.2.1.  Multi-annual Indicative Planning Document ............................................................. 94 

7.2.2.  Programming exercise................................................................................................ 96 

7.3. 

Implementation of assistance ................................................................................... 101 

7.3.1. 

IPA ........................................................................................................................... 101 

7.3.2.  CARDS .................................................................................................................... 106 

8. 

SERBIA.................................................................................................................... 108 

8.1. 

Summary .................................................................................................................. 108 

3 

 
 
8.2. 

Strategic planning and programming ....................................................................... 108 

8.2.1.  Multi-annual Indicative Planning Document ........................................................... 108 

8.2.2.  Programming exercise.............................................................................................. 109 

8.3. 

Implementation of assistance ................................................................................... 112 

8.3.1. 

IPA ........................................................................................................................... 112 

8.3.2.  CARDS .................................................................................................................... 119 

9. 

9.1. 

9.2. 

TURKEY.................................................................................................................. 122 

Summary .................................................................................................................. 122 

Strategic planning and programming ....................................................................... 122 

9.2.1.  Multi-annual Indicative Planning Document ........................................................... 122 

9.2.2.  Programming exercise.............................................................................................. 125 

9.3. 

Implementation of assistance ................................................................................... 131 

9.3.1. 

IPA ........................................................................................................................... 131 

9.3.2.  Turkish Pre-Accession Instrument (TPA)................................................................ 141 

10. 

MULTI-BENEFICIARY ......................................................................................... 146 

10.1. 

Summary .................................................................................................................. 146 

10.2. 

Strategic planning and programming ....................................................................... 146 

10.2.1.  Multi-annual Indicative Planning Document ........................................................... 146 

10.2.2.  Programming exercise.............................................................................................. 148 

10.3. 

Implementation of assistance ................................................................................... 150 

10.3.1.  IPA ........................................................................................................................... 150 

10.3.2.  CARDS (and PHARE for HR) or TPA.................................................................... 154 

PART II: FINANCIAL ASSISTANCE TO FORMER CANDIDATE COUNTRIES.......... 157 
Summary................................................................................................................. 157 
1. 

2. 

2.1. 

2.2. 

Implementation of PHARE and Transition Facility assistance in 2010............ 157 

Taking stock of pre-accession and post-accession assistance.................................. 157 

Implementation of PHARE and the Transition Facility........................................... 161 

PART III - FINANCIAL DATA............................................................................................ 165 
2010 allocations by beneficiary and by component (in million EUR).................... 165 
1. 

2. 

Breakdown of IPA commitments in 2010 in million EUR ................................. 165 

2.1. 

Component I – Transition Assistance and Institution Building Programmes . 165 

4 

 
 
2.2. 

2.3. 

2.4. 

2.5. 

3. 

4. 

4.1. 

Component II – Cross Border Cooperation Programmes ........................................ 166 

Component III – Regional Development Programmes............................................ 167 

Component IV – Human Resources Development Programmes............................. 167 

Component V – Rural Development Programmes................................................... 167 

Global overview of IPA 2007-2010 amounts committed, contracted and paid as 
at 31 December 2010 per beneficiary, in million EUR ....................................... 168 

PHARE, CARDS, Turkey Pre-Accession and Transition Facility - Financial data at 
31st December 2010................................................................................................. 169 

PHARE, Turkey Pre-Accession and Transition Facility funds implementation by 
country at the end of 2010........................................................................................ 169 

4.2. 

CARDS funds implementation by country at the end of 2010 ................................ 170 

5 

 
 
 
PART I: FINANCIAL ASSISTANCE TO ICELAND, THE 
WESTERN BALKANS AND TURKEY  

1. 

ALBANIA 

1.1. 

Summary  

EU financial assistance to Albania has played an important role during 2010 to further support 
the country on its way towards European integration. Ongoing CARDS and IPA projects in 
the areas of justice and home affairs, public administration reform and fight against corruption 
have  been  further  advanced  and  have  shown  concrete  results.  Furthermore,  there  has  been 
progress  in  infrastructure  projects  in  the  water  and  transport  sectors.  There  have  also  been 
many  technical  assistance  projects  ongoing  in  different  line  Ministries  or  state  institutions, 
and the support to the Ministry of European Integration has had a positive horizontal impact 
on  programming  of  EU  financial  assistance.  Compared  to  the  previous  year,  further 
improvements in the programming exercise have been encountered as the Ministry was in a 
better  position  to  play  its  coordination  role.  This  has  to  be  seen  in  the  context  of  a  more 
streamlined  approach  with  the  relevant  line  Ministries  as  the  previously  installed  Senior 
Programming Officers became more and more operational.  

The  amount  contracted  during  the  reporting  period  under  the  IPA  programmes  2007,  2008 
and  2009  is  EUR  92.31  million,  exceeding  the  new  commitments  (nearly  EUR  87  million) 
under the 2010 IPA Programmes. This continued a positive trend which began in 2009. With 
a view to the preparation for the decentralised management of IPA funds further progress has 
been made with the help of an IPA 2007 technical assistance. Under IPA Component I, key 
structures  have  now  been  established  and  relevant  staff  hired  and  trained.  Work  has  also 
started on IPA Components II-V.  

2010  also  saw  the  preparation  of  the  MIPD  2011-2013,  which  follows  a  sectoral  approach. 
The beneficiary, Member States and other donors have been actively involved and welcomed 
the identified choice of sectors. Overall, there has been good progress in the programming of 
EU  funds,  while  there  are  still  remaining  challenges  concerning  the  implementation  and 
sustainability of projects, also after they have finished. 

1.2. 

Strategic planning and programming  

1.2.1.  Multi-annual Indicative Planning Document  

The following priorities for IPA support have been identified in the Multi-Annual Indicative 
Planning  Document  (MIPD)  2011-2013  in  close  cooperation  with  the  beneficiary,  Member 
States and other donors: 

•  Strengthen  rule  of  law,  ensuring  the  independence,  efficiency  and  accountability  of 

judicial institutions and enhance the fight against organised crime.  

•  Support the public administration reform, with a view to enhancing  professionalism and 
de-politicisation of  public  administration and to strengthening  a transparent, merit-based 
approach to appointments and promotions and strengthen the fight against corruption at all 
levels.  

•  Reinforce the protection of human rights, notably for women, children and Roma, and to 

6 

 
 
effectively implement anti-discrimination policies.  

•  To  support  acquis  related  issues,  in  particular,  administrative  capacity,  adoption  and 
enforcement of legislation and related investments in the transport sector, social sector, as 
well as in the environment, climate change and agriculture sectors. 

To achieve the priorities selected for support in the programming period 2011-2013, in 2010 
the  Commission  identified  primarily  the  following  sectors:  i)  Justice  and  Home  Affairs,  ii) 
Public Administration Reform, iii) Transport, iv) Environment and Climate Change, v) Social 
Development, vi) Agriculture and Rural Development. 

To  increase  the  impact  of  IPA  assistance,  to  give  greater  focus  to  achievable  results  and  to 
strengthen  ownership  by  the  beneficiary  countries,  the  Commission  has  decided  to 
concentrate its efforts on targeted sectors. A sector approach should facilitate cooperation and 
coordination  among  donors  and  beneficiaries.  To  date,  the  number  of  fully-fledged  sector 
programmes  developed  by  Albania  is  limited.  Overall  ownership  on  the  side  of  the 
government to move towards a more sector approach is improving, in particular with a view 
to coordination and monitoring mechanisms at the central level. At the same time, there are 
obvious differences between sectors and linked line Ministries, e.g. there has been no sector 
strategy  adopted  in  the  justice  sector.  On  the  other  hand,  the  agriculture  and  rural 
development  sector  has  been  identified  with  the  beneficiary,  Member  States  and  the 
Commission  as  one  where  a  possible  sector-wide  or  programme-based  approach  could  be 
tested. The sector comprises the main features for such an approach, namely the existence of a 
sector  strategy,  an  action  plan,  multi-annual  budgeting,  donor  coordination  and  a  relatively 
strong capacity (including the political will) of the main beneficiary Ministry.  

The  chosen  sectors  are  in  line  with  the  Enlargement  Strategy  published  in  November  2010 
and  are  designed  to  help  the  EU  to  attain  its  own  objectives  that  include  dealing  with  the 
economic  crisis  and  governance,  restoring  growth  for  jobs  through  the  Europe  2020  reform 
agenda  and  making  the  EU  a  safer  place.  The  strategic  priorities  of  four  of  the  above 
mentioned  sectors  have  been  identified  in  close  cooperation  with  the  various  Commission 
services  responsible  for  the  different  IPA  components.  This  is  a  good  basis  for  the 
implementation  of  the  IPA  programmes  during  the  coming  years  as  well  as  the  strategic 
definition of a future accession instrument.  

Overall, the three-year planning period of the MIPD limits achieving the identified objectives 
according to the many needs in the different sectors. A longer period would probably make it 
more feasible to achieve the intended results and sector objectives, as many of them have to 
be seen in a medium to long-term perspective. This is particularly true as regards reforms in 
the rule of law as well as public administration sectors.  

In  May  and  June  2010,  the  EU  Delegation  undertook  a  review  and  consultation  process  in 
certain sectors in order to assess the existence as well as the quality of various strategies and 
action plans/budget plans. On the basis of this assessment and the needs and priorities in EU 
and  Albanian  Government  strategy  papers  a  first  draft  text  for  the  MIPD  2011-2013  was 
prepared.  During  a  consultation  mission  in  July,  the  first  MIPD  draft  document,  which  has 
been shared beforehand, was discussed with the beneficiary, Member States and other donors. 
This  first  round  of  consultations  confirmed  the  suggested  choice  of  sectors,  on  which  the 
European Commission will focus over the next three years. In particular, the sectors regarding 
the  political  criteria  were  seen  as  very  relevant.  Further  refinements  of  the  draft  have  been 
made, and subsequently, the draft MIPD was consulted with Member States in Tirana, with 
IFIs,  bilateral  and  international  organisations  and  the  Beneficiary  at  the  beginning  of 

7 

 
 
December 2010. The outcome of these consultations led to further adjustments of the MIPD, 
notably in emphasizing that a programme-based approach is also encouraged in other sectors 
under  the  leadership  of  other  donors,  which  could  eventually  be  supported  by  the  EU. 
Furthermore, the division of tasks has been updated and clarified. Finally, it was suggested to 
bring the indicators more in line with the indicators of the NSDI, which are currently being 
revised.    

The findings from an IPA mid-term evaluation, conducted during 2010, partly confirmed this 
and also showed that some of the prerequisites for a sector-based approach exist in Albania. 
However, at present the administrative capacity to adopt a sector-based approach is relatively 
low.  Therefore,  with  sufficiently  well-targeted  assistance  and  continued  effort  to  complete 
ongoing  reforms  (functional  strategies  and  monitoring  system)  the  Albanian  administration 
has  the  potential  to  develop  these  necessary  capacities  in  the  immediate  to  short-term.  The 
evaluation  also  assessed  different  sectors  and  stated  that  the  sector  of  agriculture/rural 
development is one of the most advanced. Furthermore, it stated that synergy between donor 
assistance, national strategy and IPA programming is important if a sector-wide approach is to 
be  applied  in  future  programming.  The  evaluation  concluded  that  programming  takes 
adequate and relevant account of the beneficiary's policies, strategies and reform process.  

These findings have been taken into account in drafting the MIPD 2011-2013 as the document 
was  fully  based  on  the  national  strategic  framework  and  put  future  IPA  intervention  into 
perspective with ongoing donor involvement. 

Table 1: MIFF1 allocations per component, in million EUR 

Component 
I – Transition Assistance and Institution Building 
II – Cross-border cooperation 
TOTAL 

2010 
82.71
9.97
92.68

2011 

84.30
10.13
94.43

2012 
85.99 
10.28 
96.27 

2010-2012 
253.00
30.38
283.38

1.2.2.  Programming  

1.2.2.1.  Component I 

The  IPA  2010  national  programme  was  adopted  on  8  December  2010.  It  focused  on  the 
objectives  identified  in  the  Multi-Annual  Planning  Document  (MIPD)  2009-2011.  The  10 
projects of the programme were grouped under 3 strategic priority axes, addressing key issues 
such  as  police  training  and  rule  of  law  enforcement,  in  particular  as  regards  support  to  the 
penitentiary  infrastructure  and  improvement  of  training  capacities  of  the  Police  Education 
Centre as well as the modernisation of the prosecution system. At the same time, the national 
programme  was  also  designed  to  continue  supporting  the  capacity-building  efforts  of 
Albania's  administration,  in  particular  the  Ministry  of  European  Integration,  the  Ministry  of 
Labour and the Ministry of the Environment. Furthermore, support was planned to be given to 
the Albanian Parliament and to important acquis-related issues such as food safety. Two large 
infrastructure  projects  were  included,  one  in  the  environment  sector  (water  supply  and 
sewerage) and one in the transport sector (local roads). It has been agreed with the Albanian 
Government that the local road project and parts of the water project shall be implemented in 

1 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

8 

 
 
                                                 
cooperation  with  international  financial  institutions  (IFIs).  This  has  to  be  seen  also  in  the 
context  of  the  Commission's  continuous  efforts  to  help  Albania  soften  the  effects  of  the 
financial crisis.  

The  rural  road  project  was  included  as  part  of  a  continuous  effort  in  the  frame  of  a  World 
Bank-coordinated  and  beneficiary-led  multi-donor  programme,  to  which  the  European 
Commission  has  already allocated  funds under IPA 2008 and 2009. The water project is an 
example of continuous EU support over the last years, which has not only an environmental 
aspect,  but  which  improves  also  the  socio-economic  development  of  the  coastal  areas  with 
view to tourism development. Finally, the food safety project has been designed to follow-up 
on an IPA 2009 project. 

Overall,  donor  coordination  in  Albania  has  improved  during  2010.  The  Department  of 
Strategy and Donor Coordination (DSDC) created in 2005 under the Deputy Prime Minister's 
Office  in  the  Council  of  Ministers  of  the  Albanian  Government  is  responsible  for  national, 
sectoral  and  cross-cutting  development  strategy  coordination  as  well  as  for  donor 
coordination.  The  donors  are  organised  via  a  Donor  Technical  Secretariat,  including 
representatives  of  the  European  Commission,  World  Bank,  Organisation  for  Security  and 
Cooperation in Europe (OSCE), UNDP as well as other bilateral donors.  

to 

the  coordination  process 

the  context  of  division  of 

Furthermore, the Fast Track Initiative of Division of Labour in line with the Paris Declaration 
and the Accra Agenda for Action became more and more developed. In Albania, this is led by 
the  Government,  through  the  DSDC.  Fast  Track  Initiative  arrangements  are  open  to  any 
European  donor  willing  to  join  and  other  development  and  integration  partners  that  could 
contribute 
labour  and 
in 
complementarity.  The  Fast  Track  Initiative  of  Division  of  Labour  should  be  seen  as  added 
value  to  the  existing  coordination  mechanisms  established  by  the  Government;  as  such  it  is 
embedded  in  the  national  Harmonisation  Action  Plan.  The  allocation  of  Lead  Donors  to 
specific sectors has been agreed based on expressions of interest from donors and as a result 
of sectoral analysis of donor commitments by DSDC. The Fast Track Initiative is intended to 
support Albania in the process of implementing in-country division of labour. The final goal 
is  to  achieve  better  development  results  through  more  effective  aid  and  to  increase  the 
coherence  of  EU  assistance,  and  ensure  less  overlap,  less  transaction  cost,  etc.  European 
donors  participate  in  the  Fast  Track  Initiative  on  a  voluntary  basis.  A  Memorandum  of 
Understanding has been signed so far between the Albanian Government and some European 
donors (European Commission, Italy, Austria, Switzerland and Sweden) on 31 May 2010. As 
regards  donor  presence,  it  should  be  noted  that  some  bilateral  donors  have  announced  a 
reduction of their foreseen resources and presence.   

Coordination meetings with international financial institutions as well as with EU and non–
EU  donors  have  been  organised  on  a  regular  basis.  They  focus  primarily  on  strategic 
orientations  and  the  regional  dimension  of  IPA  planning  and  programming.  Additionally, 
coordination between the Commission and EU Member States took place on a regular basis in 
the  context  of  the  IPA  Committee.  Meetings  with  the  Embassies  of  EU  Member  States  and 
the  local  branches  of  international  financial  institutions  on  MIPD  or  national  programme 
preparations were organised regularly during programming missions.  

As  mentioned  above,  the  rural  roads  project  is  the  best  example  of  a  donor  and  beneficiary 
coordinated  programme,  where  the  EU  was  able  in  cooperation  with  the  EIB  and  EBRD  to 
trigger a substantive amount of funds due to grants/loan blending with the IPA 2010 project. 
The same was also true for the water project, where through indirect centralised management 

9 

 
 
in  cooperation  with  Germany  (KfW)  and  Austria  (ADA)  significant  funds  have  been 
allocated.  Finally,  it  was  decided  that  a  project  on  human  resource  development  is  best 
implemented  in  joint  management  with  the  International  Labour  Organisation  due  to  its 
experience on the ground. This can be seen as a continuation of using different management 
modes for an efficient and effective programme implementation as done during previous IPA 
programmes. 

Overall, the IPA 2010 programme has been developed in close cooperation and consultation 
with national authorities. The exercise has shown, compared to previous years, improvement 
with a view to ownership by the beneficiary. The Member States, other donors as well as civil 
society have been associated in the process as much as possible.  

Significant efforts have been undertaken to involve Albania's institutions in the planning and 
programming  process  for  EU  assistance.  The  Ministry  for  European  Integration  benefited 
from  substantial  institution  and  capacity-building  support  of  the  last  years.  The  increased 
involvement of the Senior Programme Officers (SPO) within the European Integration units 
in  line  ministries  and  the  leading  role  of  the  Ministry  for  European  Integration  in  the 
programming  process  improved  overall  the  identification  and  programming  of  financial 
assistance. Lessons learned, in particular regarding the maturity, timely planning, better links 
between  EU  assistance  and  sectoral  strategies  as  well  as  sustainability  have  been  taken  into 
account during the programming of IPA 2010.  

Under  the  current  institutional  and  legal  circumstances,  the  different  methods  of  delivering 
EU  financial  assistance  were  adequate.  An  intelligent  mix  out  of  centralised,  indirect 
centralised and joint management, as in recent years, is currently the best way to deliver IPA 
funds for Albania. There is for the foreseeable future no possibility to use other aid delivery 
modes,  such  as  budget  support,  because  the  overall  conditions,  as  laid  down  in  the  IPA 
Regulation, are not yet in place in Albania.  

The programming exercise for IPA 2011 started already early during the reporting year and 
took the six sectors of the foreseen MIPD 2011-2013 fully into account. A first programming 
mission took place in May 2010 and a final one in October, after which the beneficiary started 
to draft the project fiches for the programme for an overall amount of EUR 82 million. In the 
pilot sector "agriculture and rural development", a project  of EUR 10 million is foreseen to 
start investment in farms through rural development component (IPARD)-like measures and 
to  further  develop  the  national  payment  and  management  system  in  preparation  for  IPA 
Component V. 

10 

 
 
Table  2:  Indicative  financial  allocations  for  the  year  2010  per  component,  in  million 
EUR 

ALBANIA 
I. Transition Assistance and Institution Building 
Of which: 

                                                                                  National Programme  
Tempus Programme* 

II. Cross-Border Cooperation 
Of which:                     

                                                              CBC Montenegro-Albania 
                                                                                   CBC the former 
Yugoslav republic of Macedonia-Albania 
                                                                                   CBC Kosovo-Albania 
CBC Greece-Albania 
CBC IPA Adriatic** 
Albania's participation in ERDF transnational programmes  
"South East Europe" and "Mediterranean"** 

2010 
84.202

83.20
1.00
10.483

0.85
0.85

0.60
1.66
6.01
0.51

TOTAL 
* The Tempus Programme is coordinated and implemented under the relevant IPA Multi-beneficiary programme  
**Management  of  the  allocations  for  these  programmes  was  cross-delegated  to  the  DG  Regional  Policy 
(REGIO)  

94.68

Table 3: Indicative financial allocations for the year 2010 under the  National Programme, per 
priority axis and per project, in million EUR 

Priority Axis/Projects 
Political Criteria  

Support to the Penitentiary Infrastructure and the Police Education 
Centre  
Modernisation of the Albanian Justice system 
Support to the EU integration process 
Strengthening the Assembly of Albania 
Project Preparation Facility 

Economic Criteria  

Improvement of rural roads in Albania 
Human Resources Development 

Ability to assume the obligations of membership 

Improvement of Drinking Water Supply and Sewerage Systems 
Support to the Food Safety Infrastructure 
Capacity strengthening of the Ministry of Environment 

TOTAL 

Budget  

26.20
18.20

3.00
2.00
1.50
1.50
23.00
20.00
3.00
34.00
26.00
4.00
4.00
83.20

2  

3  

The difference with Table 1 is explained by the fact that an additional €1.5 million were used from left 
over money (due to urgency measures following severe flooding) 
The  difference  with  Table  1  is  explained  by  the  allocation  for  participation  in  ERDF  transnational 
programmes (EUR 0.51 million) 

11 

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
1.2.2.2.  Components II 

During  2010,  the  cross-border  programmes  between  the  former  Yugoslav  Republic  of 
Macedonia  and  Albania  and  between  Albania  and  Montenegro  were  both  revised  by  the 
national authorities for the period 2007-2011. The revision added mainly the 2010 and 2011 
yearly financial allocations for each partner countries and clerical changes following the entry 
into force of the Lisbon Treaty, but did not touch the substance of the programme. 

The revised cross-border  cooperation  programme between the  former Yugoslav  Republic of 
Macedonia  and  Albania  2007-2011  and  the  multi-annual  Financing  Proposal  for  the  years 
2010 and 2011 were adopted by the Commission  in October 2010. The overall objective of 
the programme is to promote sustainable development in the cross-border area.  

The  revised  cross-border  cooperation  programme  between  Albania  and  Montenegro  2007-
2011 and the multi-annual Financing Proposal for the years 2010 and 2011 were adopted by 
the  Commission  in  July  2010.  The  overall  objective  of  the  programme  is  promotion  of 
regional  cohesion  and  competitiveness 
integrating  economic, 
environmental and social development. 

though  an  approach 

Following  the  October  2009  Commission  Communication  on  Kosovo,  which  recommended 
"progressively  activate  the  IPA  cross  border  cooperation  component  (component  II)  for 
Kosovo"4,  the  first  Albania-Kosovo  cross-border  cooperation  programme  2010-2013  was 
jointly  developed  by  the  Albanian  and  Kosovan  authorities.  The  programme  and  the  multi-
annual Financing Proposal for the years 2010 and 2011 were adopted by the Commission in 
December 2010. The overall objective of the programme is to promote sustainable economic, 
social, cultural and environmental development in the border area. 

The cross-border programme between Greece and Albania 2007-2011 was revised in order to 
include the 2010 and 2011 ERDF and IPA financial allocations. The programme builds on the 
2000-2006  INTERREG  programme  between  the  two  countries.  The  multi-annual  Financing 
Proposal  for  the  years  2010  and  2011  (IPA  funds  part)  was  adopted  by  the  Commission  in 
December  2010.  The  overall  objective  of  the  programme  is  to  increase  living  standards  by 
promoting sustainable local development in the border area.  

Since  2007,  Albania  is  taking  part  in  the IPA Adriatic  cross-border cooperation programme 
together with Italy, Slovenia, Greece, Croatia, Bosnia and Herzegovina, Montenegro and, in 
phasing-out,  Serbia.  This  programme  is  a  continuation  of  the  2004-2006  Italy-Adriatic 
INTERREG  and  Italy-Albania  Neighbourhood  programmes.  The  global  objective  of  the 
programme is to strengthen sustainable development of the Adriatic region.  

Albania  is  also  participating  in  the  ERDF  transnational  programme  "South-East  Europe" 
(SEE) since 2007 and "Mediterranean" (MED) since 2009 under the European Territorial Co-
operation objective of the Structural Funds 2007-2013. 2010 IPA funds were integrated in the 
SEE and MED programmes. They are managed by the Commission's Directorate-General for 
Regional Policy, which is now entirely in charge of the programming and implementation of 
both  ERDF  and  IPA  funds  within  these  programmes.  The  programme  supports  Albania’s 

4 

Communication  from  the  Commission  to  the  European  Parliament  and  the  Council,  Kosovo*  - 
Fulfilling its European Perspective, COM(2009)534 final of 14 October 2009, p.14. 

12 

 
 
 
                                                 
participation  in  joint  transnational  co-operation  activities  with  partners  from  EU  Member 
States  and  familiarises  the  country  with  territorial  co-operation  programmes  under  EU 
Structural Funds. 

1.2.2.3.  Components III, IV and V  

With  a  view  to  preparing  for  decentralised  management  of  IPA  funds,  a  joint  mission  was 
organised  by  the  Commission's  Directorate  Generals  for  Enlargement,  Regional  Policy, 
Employment  and  Social  Affairs,  and  Agriculture  and  Rural  Development,  in  January  2010. 
The aim of this mission was to launch the programming exercise for Components III, IV and 
V with the Albanian authorities. In spring 2010, the Albanian authorities started drafting their 
Strategic  Coherence  Framework  for  IPA  Component  III  and  IV  areas,  i.e.  regional 
development,  competitiveness  and  transport,  as  well  as  education,  employment  and  social 
inclusion. Their first draft was submitted for comments to the Commission in autumn 2010, 
initiating  a  dialogue  on  the  document.  The  first  draft  Operational  Programme  for  IPA 
Component IV was submitted to the European Commission in autumn 2010 and the drafting 
process  of  the  Operational  programme  for  Component  III  started.  With  regards  to  IPA 
Component V programming, there was a dialogue between the Commission services and the 
relevant Albanian authorities on the draft agricultural and rural development programme. 

Establishment of the Albanian financial management and control structures for Component III 
and IV, based on Component I structures, began. In May 2010, DG Enlargement audited the 
basic structures, while in November DG Agriculture and Rural Development audited the IPA 
Component  V  structures  including  the  Paying  and  Managing  Agency.  Both  concluded  that 
while  progress  had  been  achieved,  the  Albanian  authorities  are  still  far  from  being  able  to 
apply for Conferral of Management for IPA funds under Components III, IV and V. Notably, 
the  implementation  of  an  accounting  system  by  the  Albanian  authorities  is  still  needed,    as 
well as the completion of the Audit Authority structure. For Component V, the establishment 
of  a  rural  cadastre  and  farm  register  is  a  crucial  and  challenging  element  for  defining  the 
scope of future rural beneficiaries. 

While the aim is for these programmes to be ready for implementation when Albania becomes 
a  candidate  country,  they  do  not  however  have  a  clear  timeframe  and  remain  flexible 
documents  to  be  adjusted  according  to  the  progress  of  Albania  on  its  European  integration 
agenda. 

1.3. 

Implementation of assistance  

1.3.1. 

IPA 

1.3.1.1.  Success stories   

Support for civil service reform (IPA 2008, EUR 1 million) 

This  project  -  supporting  civil  service  reform  aiming  at  strengthening  the  public  sector 
governance  by  reinforcing  the  management  capacity  of  the  Department  of  Public 
Administration - produced an important result during 2010. Thanks to the project, an Order on 
"Measures  for  improving  the  management  of  the  civil  servants  in  the  line  ministries  and 
Council of Ministers apparatus" was issued by the Albanian Prime Minister in October 2010. 
This  act  set  the  basis  for  clear  rules  and  limitations  with  regards  to  temporary  contracts, 
restructuring  procedures  and  job  descriptions,  as  well  as  specific  requirements  for  working 

13 

 
 
positions. Overall, the project also supported the modernisation of the legal framework for the 
Albanian civil service. New laws were drafted regarding the status of civil servants, general 
administrative  procedures  and  the  organisation  and  functioning  of  the  State  public 
administration. A more effective and efficient public administration is the basis for progress 
in all areas of society and the socio-economic development of Albania.  

Preparation for EU decentralised implementation system of IPA funds (IPA 2007, EUR 
1.13 million) 

The  project  helped  the  Albanian  authorities  to  progress  towards  preparation  for  the 
decentralised  management  of  IPA  funds  for  Component I. It supported the  establishment of 
proper operating structures and of a management control system with strong involvement and 
leadership by the Albanian authorities, notably the Ministry of Finance. Based on the results, 
the Albanian authorities now intend to apply for conferral of management for IPA Component 
I.  In  addition,  as  the  main  structures  for  IPA  components  II,  III  and  IV  are  similar  to 
Component I structures, the success of this IPA 2007 project laid the foundation for setting up 
the  structures  for  components  II,  III  and  IV  programmed  under  an  IPA  2009  national 
programme. Overall, progress in the preparation for decentralised management process adds 
also  to  the  improvement  in  the  country's  public  financial  management  system  in  general, 
which is the basis for the transparent, efficient and legal spending of public funds. 

Support for police reform (IPA 2007, EUR 5.5 million) 

Finally,  the  project  "Support  to  the  Police  Reform  -  PAMECA  III"  has  proven  extremely 
valuable in improving the functioning of the Albanian State Police, in particular regarding its 
structures fighting organised crime and terrorism, the functioning of the Police Academy, the 
functioning of IT systems, the implementation of the Integrated Border Management Strategy 
and  the  Community  Policing  model.  The  project  was  also  instrumental  in  identifying  ways 
forward. It encourages continued progress within the Albanian State Police with regard to the 
respect of human rights, notably as regards the treatment of detainees. It has been a successful 
method  to  use  a  pool  of  police  experts  from  different  Member  States,  who  addressed,  with 
their different backgrounds and specific experience, the complex needs of the Albanian police 
system. 

1.3.1.2.  Overview of IPA implementation in 2010 

2010 has been the best year to date regarding IPA implementation, as regards commitments 
and  disbursements.  A  total  amount  of  EUR  92.34  million  was  contracted:  a  considerable 
increase  compared  with  the  contracting  performance  of  EUR  65.25  million  in  2009.  The 
disbursement of EUR 56.38 million also exceeded the performance in 2009 when EUR 53.54 
million were paid. 

14 

 
 
 
 
 
 
Component I: Transition Assistance and Institution Building 

Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme  

IPA 2007 
IPA 20085 
IPA 2009 
IPA 2010 
TOTAL 

Committed  Contracted % Contracted  Paid  % Paid 
25.07% 
35.32% 
24.48% 
0.00% 
19.55% 

58.58% 12.35 
66.79% 22.62 
47.72% 17.10 
0.00 
0.00%
39.41% 52.07 

49.27 
64.04 
69.86 
83.20 
266.37 

28.86
40.01
33.34
0.00
104.97

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Political criteria 

(of which civil society)

Economic criteria 
Ability to assume membership obligations 
Support programmes 
TOTAL 

TAIEX, Twinning, SIGMA and EU Programmes 

% of 2007-2010 allocations 
31.61%
0.57%
21.72%
45.41%
1.25%
100%

Altogether,  55  TAIEX  events  assisted  Albania's  administration  in  2010.  There  were  several 
positive  outcomes,  where  Albanian  institutions  addressed  problems  in  regard  to  legislation 
approximation,  regulating  internal  inspection  procedures,  implementation  of  legislation  and 
strengthening of administrative capacities. The focus of these events was on several areas of 
the acquis, such as environment, fishery, agriculture and food, consumer protection, transport, 
and competition. They contributed to the preparation of legislation in line with EU standards 
as well as overall improved the administrative capacity of different line Ministries. 

Three  Twinning  projects  were  launched  during  2010,  funded  by  IPA  2009,  in  the  sector  of 
justice  and  home  affairs.  The  projects  dealt  with  penitentiary  reform,  witness  protection  as 
well  as  anti-Money  Laundering  and  Financial  Crime  Investigations.  The  participating 
Member States were the United Kingdom, a consortium between Hungary and Lithuania and 
another  consortium  between  Spain  and  Bulgaria.  The  total  budget  allocated  for  these 
Twinning projects is EUR 3.14 million. 

SIGMA  activities  in  2010  have  revolved  around  the  following  topics:  public  service  and 
administrative  framework  with  a  focus  on  the  Law  on  administrative  procedures  and  civil 
service  reform,  public  expenditure  management  and  assistance  to  develop  the  public 
procurement system. The input of SIGMA for the preparation of the Commission Opinion in 
November 2010 was very useful. 

In  2010,  Albania  participated  in  the  following  EU  programmes:  7th  Research  Framework 
Programme,  Competition  and  Innovation  Framework  Programme  (CIP)  and  Europe  for 

5  

Figure includes the separate Financing Decision "Rehabilitation of Gerdec" of EUR 3.12 million 

15 

 
 
 
 
                                                 
Citizens.  Furthermore,  exploratory  contacts  were  held  with  a  view  to  participation  in  the 
“Culture” Programme. 

Component II: Cross-border Cooperation 

Implementation  of  the  2007–2009  Cross-border  Cooperation  Programmes  with  Albanian 
participation continued in 2010.  

For the programme Albania-Montenegro, 6 cross-borders projects were contracted and began 
at  the  end  of  2010,  from  the  first  call  for  proposals  of  2007  IPA  funds.  Two  projects  were 
selected  for  each  measure  of  the  programme:  economic  development;  environmental 
protection  and  social  cohesion.  The  second  call  for  proposal  including  joint  2008  and  2009 
IPA funds for this programme was launched and closed during 2010 and at the end of 2010 
the proposals were to be evaluated by a set-up Joint Steering Committee with Albanian and 
Montenegrin nationals. During the second semester 2010, the Shkodra-based Joint Technical 
Secretariat of the programme established in 2008 experienced staffing and building issues due 
to internal Albanian financial reasons. During the December 2010 IPA Monitoring meeting, 
the  Commission  raised  the  matter  since  EU  technical  assistance  funds  had  been  paid  under 
this  programme  for  those  purposes,  and  asked  the  Albanian  authorities  to  solve  the  internal 
financial issue as soon as possible and respect their commitment by ensuring an operational 
Joint Technical Secretariat. 

For  the  programme  Albania-the  former  Yugoslav  Republic  of  Macedonia,  17  cross-border 
projects  were  selected  by  the  Joint  steering  Committee  composed  of  Albanian  and 
Macedonian nationals during the autumn 2010, from the first call for proposals on IPA 2007 
funds. The second call for proposals encompassing the remaining 2007 and 2008 funds was 
launched and closed during the first semester 2010 and the evaluation was pending at the end 
of  2010.  In  2010,  the  El-Basan/Albania  antenna  of  the  programme  established  in  2008 
experienced staffing and buildings issues due to internal Albanian financial reasons. Since EU 
technical  assistance  funds  had  been  paid  under  this  programme  for  those  purposes,  the 
Commission strongly encouraged the Albanian authorities to solve the internal financial issue 
as soon as possible and respect their commitment by ensuring an operational antenna. 

For the programme Albania-Greece, one single joint call for proposals encompassing ERDF 
and IPA 2007, 2008 and 2009 funds was prepared during 2010 and launched in November. 
The  call  for  expressions  of  interest  for  the  recruitment  process  of  the  6  members  of  the 
Thessaloniki based Joint-Technical Secretariat started in November 2010, to be composed of 
both Albanian and Greek nationals. 

As regards Albanian participation in the ERDF South East Europe Transnational Programme, 
calls were opened for project proposals in the four following areas: facilitation of innovation 
and  entrepreneurship,  protection  and  improvement  of  the  environment,  improvement  of  the 
accessibility. 

CBC  Programmes  can  make  a  valuable  contribution  to  reconciliation  and  good  neighbourly 
relations, and the beneficiaries have shown high expectations with regards to the results of the 
programmes  of  this  component,  also  in  light  of  the  fact  that  CBC's  'learning-by-doing' 
approach  will  significantly  contribute  to  local  capacity-building.  These  expectations  were 
reflected in the large number of applications received under these calls for proposals, despite 
the almost symbolic amount of available funds.  

16 

 
 
Tables 6: Status of implementation of IPA financial assistance (Component II) as at 31st 
December 2010 (in million EUR) per annual programme6  

IPA 2007-2010 

Committed 
35.57 

Paid  
1.82 

% Paid 
5.12% 

Out of which, the breakdown for the intra-Western Balkans CBC Programmes and the ERDF 
Transnational Programmes (South-East Europe and Mediterranean) is7: 

Committed  Contracted  % Contracted  Paid  % Paid 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

3.52 
3.19 
3.93 
4.47 
15.11 

1.33
0.02
0.00
0.00
1.35

37.78% 1.80 
0.63% 0.02 
0% 0.00 
0% 0.00 
8.93% 1.82 

51.14% 
0.63% 
0% 
0% 
12.05% 

Table 7: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

% of 2007-2010 
allocations  

CBC with Member States 
CBC within Western Balkans 
Participation to ERDF Transnational Programmes 
TOTAL 

41.01%
51.71%
7.28%
100%

1.3.1.3.  Implementation Modalities and Structures  

As a potential candidate country, Albania receives pre-accession financial assistance from the 
Instrument  for  Pre-Accession  Assistance  (IPA)  under  its  first  two  components,  currently 
managed by the EU Delegation in Tirana (EUD).  

The  introduction  of  a  decentralized  implementation  system  for  management  of  IPA  funds 
remains an important objective for Albania. A decentralised management process will enable 
Albania to take responsibility for, and hence increased ownership over, the implementation of 
IPA components and the future management of EU Structural and Cohesion Funds. Albania 
has  taken  a  number  of  steps  towards  achieving decentralised  management  accreditation  and 
continued  working  towards  this  objective  during  2010.  While  progress  was  solid  on  IPA 
components I and V during the year 2010, the process is at an early stage for IPA components 
II, III, IV.  

On  Component  I  (Transition  assistance  and  Institution  Building),  Albania  followed  and 
revised its Roadmap for decentralized management. It set-up the main structure in 2009 (stage 
0), finalised its gap assessment report (stage 1) in May 2010, started the gap plugging phase 
(stage 2) in August 2010 and started undertaking the compliance assessment (stage 3). 

6  
7  

Figures include IPA Adriatic 
Figures  include  also  the  Border  Development  programme  in  the  Kukes  region  (2007)  and  the  CBC 
Albania-Greece, which is not under shared management 

17 

 
 
 
 
 
 
 
                                                 
On  Component  II  (Cross  Border  Cooperation),  the  process  of  decentralised  management 
started in January 2010 and was at stage 1 (gap assessment) at year end. 

On  Components  III  and  IV  (Regional  development  and  human  resources  development), 
Albania started to prepare necessary decentralised management structures, strategic coherence 
framework and operational programmes since January 2010. The Strategic Coordinator is the 
Deputy Minister of European Integration, while the Operating Structure for Component III is 
the Ministry of Transport, Public Works and Telecommunications, and for Component IV, it 
is  the  Ministry  of  Labour,  Social  Affairs  and  Equal  Opportunities.  The  key  challenges  for 
these  components  are  the  strengthening  of  the  structure  and  the  coordination  mechanism  as 
well as the drafting of the Strategic Coherence Framework and the Operational Programmes 
for components III and IV. 

On Component V (Rural development), Albania is trying to use already existing structures in 
order  to  set  up  the  Managing  Agency  and  the  Paying  Agency  for  the  Instrument  for  Pre-
Accession  Assistance  for  Rural  Development.  A  first  draft  programme  for  the  rural 
development component was prepared by the Albanian during 2010 on the basis of sectoral 
analyses  of  priority  sectors  in  agriculture,  aiming  at  identifying  the  current  situation  in  the 
milk and dairy products sector, the meat sectors, the fruit and vegetables sector.  

1.3.1.4.  Monitoring  

IPA  projects  are  amongst  others  monitored  by  a  formalized  Result  Oriented  Monitoring 
(ROM)  mechanism,  outsourced  to  a  specialized  company.  For  2010,  the  EU  Delegation 
adopted a monitoring plan and regularly updated it with the ROM team. In 2010, 32 projects 
were monitored in this way.  

In addition to ROM, regular internal monitoring was conducted by the EU Delegation during 
2010.  Regular  meetings  with  project  teams  and  beneficiaries  were  organised  throughout  the 
year. The EU Delegation in Tirana carried out 114 site visits on 42 IPA and CARDS projects 
representing an amount of EUR 95.3 million. 

Finally,  the  annual  joint  IPA  monitoring  meeting  undertaken  by  the  European  Commission 
with the Albanian authorities took place in December 2010. 

1.3.2.  CARDS 

1.3.2.1.  Sectors with positive results/ Success stories  

Modernisation of the civil registry and address systems (CARDS 2004, EUR 2.5 million) 

This  project  supported  the  strengthening  of  good  governance  and  good  public  services,  as 
well as the protection of fundamental rights in Albania. A functioning address system brings 
important  benefits  to  inhabitants  and  local  governments  alike  for  quality  and  efficiency  of 
health, tax, social security, education, postal, court services, as well as emergency response.  

The  Albanian  authorities  were  assisted  in  the  establishment  of  the  national  register  for  civil 
status and the national register of addresses. The national register for civil status data is used 
for  the  production  of  biometric  identity  documents  as  well  as  for  the  compilation  of  voters' 
lists. The national register of addresses aims at being uploaded with almost 260 digital maps 
and enables providing about 3.8 million registered citizens with an official address. Also with 
the support of the project, street names were chosen and plates installed in all streets of the 

18 

 
 
 
city  of  Saranda,  in  the  south  of  Albania,  benefiting  both  local  residents  and  tourists. 
Furthermore, a data protection law has been drafted with the help of the project and approved. 
The project also supported the establishment of the Data Protection Commission. 

Strengthening public internal financial control system (CARDS 2005, EUR 1 million) 

This  project  to  strengthen  the  control  of  Albanian  public  internal  finances  lasted  two  years 
and  ended  in  July  2010.  The  project  provided  assistance  for  the  further  development  of  the 
public  internal  financial  control  system  in Albania,  in  order  to  bring  it  in  line  with  EU 
standards and best practices. This project focused notably on strengthening the administrative 
capacity for financial management control and internal audit.  

The  twinning  partnership  was  established  between  the  Albanian  Ministry  of  Finance,  the 
National  Audit  Office  of  the  United  Kingdom  and  the  Polish  Ministry  of  Finance,  with  the 
support  of  the  Bulgarian  Ministry  of  Finance.  The  twinning  team  assisted  central 
harmonisation  units  within  the  Ministry  of  Finance  of  Albania  to  develop  new  a  financial 
management  control  law,  instructions  related  to  the  new  law  and  an  internal  audit  law,  in 
accordance with the international standards for internal control and internal audit. In addition, 
two manuals on financial management control and internal audit were developed, as well as a 
number  of  trainings  events  that  were  organised  for  the  high-level  managers,  the  financial 
managers and internal auditors of the public sector.  

The newly developed manual on financial management control was approved by the Albanian 
Minister of Finance in July 2010, while the law on inspection was adopted by parliament in 
July 2010 and the law on internal audit in September 2010. 

These  significant  developments  will  help  the  Albanian  Government  to  manage  the  national 
State  Budget  in  a  more  transparent  way.  They  will  also  serve  as  a  basis  for  the  future 
management  of  EU  funds  when  the  conferral  of  management  of  IPA  funds  is  granted  to 
Albania.  

"EURALIUS II" (CARDS 2006, EUR 4.5 million) 

Support for the judicial system continued despite a national strategy not being ready in 2010. 
Through  the  EURALIUS  II  project,  support  was  provided  to  the  Ministry  of  Justice, 
institutions of the judiciary, penitentiary institutions and to the general prosecutor Office. The 
assistance  focused  on  the  improvement  of  law  drafting  and  legal  approximation  skills  and 
methods  (development  of  a  law  drafting  manual  on  best  practices  and  assessment  of 
approximation  of  laws  in  the  sector),  on  the  introduction  of  a  new  enforcement  of  rulings 
system, on justice organisation and reform (new judicial power law, territorial reorganisation 
of  the  courts,  establishment  of  a  new  evaluation  system  for  judges),  inter-institutional 
dialogue, improvement of the management capacities of the judicial and penitentiary budget 
administration  and  planning,  more  efficient  and  transparent  court  administration  and  case 
management  systems,  improvement  of  legislation  in  civil  matters  (civil  code  and  civil 
procedure  code  review)  and  criminal  justice  (new  "anti-mafia  law",  new  law  on  mediation, 
new judicial police law, new law on international legal mutual assistance, new probation law), 
and  support  to  immovable  property  rights  matters.  Overall,  the  result  has  been  an 
improvement in the quality of fundamental pieces of draft legislation such as administrative 
procedures  and  judicial  review.  Finally,  the  project  helped  to  some  extent  to  increase  the 
professionalism or, as well as accountability within, the judiciary in Albania.  

19 

 
 
1.3.2.2.  Lessons learned  

In 2010 four ex-post evaluations of CARDS projects were carried out: 

-  Assistance  to  the  Justice  System  of  Albania:  EURALIUS  II  (CARDS  2006)  -  rated 
satisfactory; 

−  Assistance to the Ministry of Public Works, Transport and Telecommunications in the field 
of Transport (CARDS 2004) - rated moderately satisfactory; 

− Accreditation,  Standards  and  Certification 
unsatisfactory; 

(CARDS  2006) 

- 

rated  moderately 

− Assistance  to  the  Ministry  of  Environment  and  Institutions  involved  in  Environmental 
Monitoring  aimed  at  Strengthening  of  the  Environmental  Monitoring  System  in  Albania 
(CARDS 2006) - rated moderately unsatisfactory. 

This  exercise  concluded  that  EU  funds  have  significantly  contributed  to  specific  sector 
objectives  in  Albania,  in  particular  with  regard  to  the  reform  of  the  judiciary  system  and 
transport  sector.  Results  in  the  ‘environment’  and  ‘internal  market’  sectors  are  less 
satisfactory, for an array of reasons. Assistance has been less successful in terms of helping 
Albania  meet  obligations  deriving  from  the  Stabilisation  and  Association  Agreement,  as 
projects  are  often  not  really  implemented  from  an  EU  accession  perspective.  Common 
constraints  to  full  project  success  were  limited  ownership  and  commitment  from  the 
beneficiary Albanian authorities, persistence of inadequate institutional structures, programme 
management constraints in the EU Delegation (due to limited human resources available for 
project  monitoring)  and  a  management  style  that  focuses  more  on  outputs  than  on  process 
management.  On  the  basis  of  this  evaluation,  the  Commission  is  insisting  on  a  closer 
involvement of the Albanian administration in the programming, planning, implementation as 
well as post-completion phase.  

1.3.2.3.   Management performance  

Table 8: Status of financial assistance as at the end of December 2010 (in million EUR) – 
CARDS programmes8   

CARDS 2001 
CARDS 2002 
CARDS 2003 
CARDS 2004 
CARDS 2005 
CARDS 2006 
Total 

Allocated  Contracted  % Contracted Paid  % Paid 
31.69  94.60% 
40.90  95.34% 
37.40  97.14% 
52.19  84.18% 
32.21  80.12% 
27.25  64.12% 
221.65  85.38% 

97.55% 
96.48% 
98.26% 
91.08% 
94.48% 
95.84% 
95.18% 

32.68 
41.39 
37.83 
56.47 
37.98 
40.73 
247.08 

33.50 
42.90 
38.50 
62.00 
40.20 
42.50 
259.60 

During the reporting period, the Delegation did not undertake any contracting activity under 

8  

Figures  include  only  Annual  Action  Programmes,  while  not  including  other  programmes  managed 
centrally, such as Customs and Taxation.  

20 

 
 
 
 
                                                 
the  above-mentioned  Annual  Programmes,  as  the  contracting  periods  set  forth  therein  had 
already  expired  (the  last  one  in  August  2009  for  the  CARDS  2006  Annual  Programme). 
However,  in  addition  to  regular  disbursement  activities,  the  Delegation  closed  a  significant 
number of projects implementing the above-mentioned Annual Programmes. Overall, 80 such 
projects were closed during 2010. 

1.3.2.4.  Institution Building highlights  

CARDS  2006  -  Implementation  of  the  National  Plan  for  Approximation  of 
Environmental Legislation (INPAEL) 

The  main  objective  of  the  project  is  the  transposition  and  implementation  of  the  priority 
legislation  as  foreseen  in  the  Stabilisation  and  Association  Agreement  (SAA),  the  National 
Plan for the Implementation of the SAA and the National Environmental Strategy. The main 
beneficiary  is  the  Ministry  of  Environment.  The  approximation  of  EU  legislation  on  the 
environment in Albania is advancing well, with broad public consultation done for each new 
piece of legislation and horizontal line ministries consultation.  

Important results from this project included the cost estimation of the future implementation 
of  EU  Directives  in  environmental  sector,  both  in  terms  of  investments  and  administrative 
costs,  the  Strategy  and  Action  Plan  in  the  waste  sector,  the  Pilot  Water  Basin  Management 
Plan  in  Mati  River  District,  a  National  Compliance  Plan  for  the  Urban  Waste  Water 
Treatment  Directive,  Monitoring  Plan  for  the  Gerdec  area  (affected  by  explosion  of 
ammunition  deposit  in  2008),  as  well  as  public  awareness  campaigns  on  environmental 
protection regarding air, water and waste. 

At  the  end  of  its  implementation,  together  with  past  pre-accession  assistance  (Environment 
Legislation Project in Albania project under CARDS 2004), the most visible impact is that a 
large share of EU legislation in the environment sector was approved by the Albanian Council 
of  Ministers  and  sent  to  parliament.  This  brings  Albania  closer  to  a  proper  acquis 
transposition in that particular field. 

Overall,  the  improvement  of  the  environmental  situation  in  the  Western  Balkan,  and  in 
particular  in  Albania,  has  an  added  value  also  for  EU  citizens,  as  possible  environmental 
disasters with implications on neighbouring EU countries will be better contained and the risk 
minimized. 

1.3.2.5.  Joint Monitoring  

The 2010 joint monitoring meeting undertaken by the European Commission with the Albanian 
authorities  in  December  reviewed  the  implementation  of  the  currently  ongoing  CARDS  and 
IPA projects. Many shortcomings in the implementation of projects were raised, in particular 
retaining  trained  staff  and  providing  maintenance  as  well  as  budgeting  plans  for  finished 
infrastructure projects in order to ensure a stronger impact and sustainability. The outcome of 
the meeting was a list of agreed action points, where the beneficiary committed itself to address 
the identified problems.  

21 

 
 
2. 

BOSNIA AND HERZEGOVINA 

2.1. 

Summary 

EU financial assistance to Bosnia and Herzegovina has played an important role during 2010 
to  further  support  the  country  on  its  way  towards  European  integration.  Whereas  the 
implementation of CARDS was almost completed, IPA continued to offer support for Bosnia 
and Herzegovina to comply with the requirements of the EU accession process and to fulfil its 
obligations  under  the  Stabilisation  and  Association  Agreement  and  the  Interim  Agreement. 
The priorities of the assistance in 2010 were support for the public administration reform, the 
strengthening of the rule of law, including the fight against corruption and organised crime, 
and support for Bosnia and Herzegovina to overcome the consequences of the financial and 
economic  crisis.  Compared  to  the  previous  year,  further  improvements  in  the  programming 
exercise  occurred  as  the  Directorate  for  European  Integration  and  the  Ministry  of  Finance 
organised  sector  support  workshops  in  2010,  to  which  the  European  Commission,  other 
donors and the International Financial Institutions contributed to identify IPA priorities for the 
years  2011  –  2013.  This  was  an  important  step  to  improve  Bosnian  ownership  in  the  IPA 
programming process. 

The  amount  contracted  during  the  reporting  period  under  the  IPA  2007  -  2009  programmes 
was  EUR  70.91  million,  an  increase  of  100  %  compared  to  the  preceding  period  and  a 
continuation of the positive trend which began in 2009. With a view to the preparation for the 
decentralised management of IPA funds, some progress has been made by the nomination of 
the Competent Accrediting Officer (CAO), the National Authorising Officer (NAO), and the 
National  IPA  Coordinator  (NIPAC).  However,  State  and  entity  representatives  could  not 
agree  on  the  structures  to  be  built  to  support  the  decentralised  implementation  of  EU 
assistance, further blocking progress towards decentralisation.  

The  year  2010  has  also  seen  the  preparation  of  the  MIPD  2011  –  2013,  which  follows  a 
sectoral  approach.  The  beneficiary,  Member  States  and  other  donors  have  been  actively 
involved and welcomed the identified sectors.  

2.2. 

Strategic planning and programming 

2.2.1.  Multi-annual Indicative Programming Document 

The  strategic  priorities  identified  in  the  2011-2013  Multi-annual  Indicative  Programming 
Document (MIPD) are strengthening the rule of law, improving the capacity and efficiency of 
the public administration, and supporting social and economic development.  

To achieve the strategic priorities, in 2010 the Commission identified the following sectors of 
intervention and specific objectives: 

- Justice and Home Affairs, with the objectives of supporting the justice sector reform and to 
intensify the fight against corruption and organised crime. 

- Public Administration Reform, with the objective of setting up a professional civil service, 
improving the functioning of the institutions at all levels and adopting the legal framework for 
public financial management, compliant with EU standards. 

22 

 
 
- Private sector, and Transport and Environment sectors, with the objectives of developing the 
SME sector and supporting investments in transport and environment infrastructure. 

-  Social  Development,  with  the  objective  of  alleviating  unemployment  and  reforming  the 
education system. 

The priorities and objectives have been selected because of their remarkable significance for 
the  country's  progress  in  the  pre-accession  process.  Overcoming  the  economic  crisis,  social 
inclusion and strengthening the rule of law and public administration reform were identified 
as  key  challenges  in  the  Enlargement  Strategy  2010–2011.  The  2010  Progress  Report 
concluded  that  Bosnia  and  Herzegovina  has  to  step-up  its  efforts  in  the  areas  of  justice  and 
public administration reform and that despite a moderate economic recovery, unemployment 
remains  high  and  fiscal  adjustment  measures,  as  well  as  economic  reforms,  have  to  be 
pursued with determination to enable the country to recover. In the long-term, these measures 
will allow the country to cope with the competitive pressure and market forces of the EU.  

The Commission decided to concentrate its efforts on a limited number of sectors to increase 
the impact of IPA assistance and to give greater focus to achievable results. A sector approach 
will  facilitate  cooperation  among  donors  and  beneficiaries,  will  eliminate  duplication  of 
efforts and will lead to greater efficiency and effectiveness. Following the philosophy of the 
sector support approach, the priorities identified above support Bosnia and Herzegovina's own 
reform strategies, in particular the Country Development Strategy, the Justice Sector Reform 
Strategy, the Public Administration Reform Strategy and the Social Inclusion Strategy. 

The  Europe  2020  agenda  offers  enlargement  countries  an  important  inspiration  for  reform. 
IPA  supports  Bosnia  and  Herzegovina  in  following  the  priorities  of  the  2020  agenda, 
particularly by supporting the environmental protection, the promotion of social inclusion and 
the fight against poverty. 

The Commission, the Bosnia and Herzegovina Directorate for European Integration and the 
Ministry  of  Finance  and  Treasury  held  a  series  of  consultation  workshops  in  June  2010  to 
facilitate the identification of relevant sectors and to assess how to best move towards a sector 
approach in the different areas concerned. Representatives from line ministries, other relevant 
institutions,  selected  donors  and  civil  society  organisations  were  invited  to  participate. 
Workshops  were  held  in  the  areas  of  social  inclusion,  small  and  medium-sized  enterprises, 
education  and  employment,  civil  society,  judiciary,  law  enforcement,  public  administration 
reform, environment, transport and energy. The aim of the workshops was to identify strategic 
objectives, expected results, benchmarks and indicators for financial assistance in the period 
2011-2013.  The  workshops  helped  to  identify  areas  where  the  support  provided  by  IPA  or 
other donors can be better aligned with the existing strategies so as to gradually move towards 
a  sector  approach.  This  new  approach  considerably  strengthened  Bosnia  and  Herzegovina's 
ownership in the programming process. 

The  relevance  of  the  consultation  process  and  donor  coordination  was  confirmed  by  the 
conclusion of the Mid-term Meta Evaluation of IPA Assistance.  The evaluation, which took 
place  in  2010,  recommended  that  MIPDs  should  concentrate  on  fewer  specific  priorities  in 
line with the beneficiaries' strategic reform framework. 

23 

 
 
Table 1: MIFF9 allocations per component, in million EUR 

Component 
I – Transition Assistance and Institution Building
II – Cross-border cooperation 
TOTAL 

2010
100.69
4.70
105.39

2.2.2.  Programming exercise 

2.2.2.1.  Component I 

2012 

2011
102.68 104.67 
4.80 
107.43 109.47 

4.75

2010-2012
308.04
14.24
322.28

The  IPA  2010  national  programme  has  been  prepared  during  the  reporting  year  and  was 
adopted on 28 July 2010. It focused on the objectives identified in the MIPD 2009 – 2011.  

The 14 projects of the programmes were grouped under 3 strategic priority axes with a focus 
on supporting the justice sector reform. Strengthening the rule of law was an EU enlargement 
strategy priority, in particular to support the fight against organised crime and corruption. The 
projects on "support to the area of law enforcement", (EUR 8.0 million), "implementation of 
the  anti-corruption  strategy  and  action  plan"  (EUR  2.0  million),  "construction  of  a  high 
security  state  prison,  phase  II",  (EUR  5.15  million),  and  strengthening  the  judiciary",  (EUR 
4.0  million)  continued  activities  in  previous  IPA  programmes  and  will  be  followed-up  by 
further assistance to the justice sector in the years 2011 and the following ones. The expected 
results of the projects were improved cooperation and coordination of key institutions in the 
security  sector,  reduction  of  organised  crime,  improved  capacities  of  the  State  Investigation 
and  Protection  Agency,  police  restructuring  and  better  cooperation  between  police  and  the 
judiciary,  improved  border  management,  the  improvement  and  implementation  of  the 
anticorruption strategy, improved capacity building for judicial reform, and the building of the 
high-security state prison.  

The reform of the justice sector is a key component of the EU integration process of Bosnia 
and  Herzegovina.  The  Commission  mandated  a  team  of  Member  State  judicial  experts  to 
identify  priority  areas  for  future  EU  support.  A  fact-finding  mission  was  conducted  in  May 
2010.  The  objectives  of  the  team  were  to  identify  and  analyse  specific  areas  in  the  justice 
sector where the lack of progress is particularly relevant to the European integration process 
and  that  could  therefore  be  considered  for  future  IPA  support.  The  findings  and 
recommendations  of  the  fact  finding  mission  served  as  a  basis  for  the  sectoral  strategy 
planning for the time frame 2011 to 2013.  

Further  assistance  was  directed  at  developing  and  implementing  a  sustainable  strategy  for 
integrated social protection and the inclusion of children and families, to preserve Bosnia and 
Herzegovina's  cultural  heritage,  to  support  the  Public  Administration  Reform  Strategy 
through the development of coordination and policy making capacities, and to provide support 
on  public  financial  management  and  the  improvement  of  information  systems  in  public 
institutions. 

As Bosnia and Herzegovina was severely hit by the global economic crisis, the EU continued 
to provide support for infrastructure investments through the 2010 national programme. The 

9 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

24 

 
 
 
                                                 
EU  cooperated  with  the  World  Bank  on  the  rehabilitation  and  transport  and  navigation 
development of the Sava River to link national with regional core transport networks. It also 
supported  the  rehabilitation  and  construction  of  water,  waste  water  and  solid  waste 
infrastructure together with the European Bank for Reconstruction and Development (EBRD), 
the European Investment Bank (EIB) and the Kreditanstalt für Wiederaufbau (KfW). Grants 
to  the  international  financial  institutions  (IFIs)  and  the  KfW  leveraged  significant  loans  for 
major infrastructure investments and helped Bosnia and Herzegovina to conclude those loan 
agreements. 

The infrastructure projects in this programme were selected because they were well-advanced 
in the preparatory phase, but their timely implementation would have been unlikely without 
EU support. They were a continuation of infrastructure support in 2009. Support for transport 
and environment infrastructure will be continued in future IPA national programmes. Support 
for  infrastructure  created  a  number  of  catalytic  effects,  such  as  providing  employment  and 
income for citizens, protecting public health, fostering industrial and agricultural production, 
trade, and improving environmental conditions. Support for infrastructure was in line with the 
EU  2020  Agenda,  in  particular  where  it  promotes  sustainable  development  and  social 
inclusion, and supported the European Neighbourhood Transport Action Plan. 

In the area of European standards, the programme supported the customs sector through the 
Indirect  Taxation  Authority.    It  also  prepared  rural  development  structures  through  piloting 
IPA  rural  development  type  measures  to  support  the  preparation  of  farmers  towards  the 
implementation  of  a  rural  development  policy  in  a  way  which  is  compatible  with  the  main 
principles of the EU rural development policy. Further assistance was provided to the regional 
animal vaccination programme. 

Donor coordination was ensured throughout the entire project management cycle from project 
design  to  implementation.  As  the  main  donor,  the  EU,  in  cooperation  with  DFID,  was 
involved in setting up an Aid Coordination Committee together with the Ministry of Finance, 
the Directorate for European Integration and the Directorate for Economic Planning.  

Regular  coordination  meetings  on  programming  and  assistance  implementation  were  held 
with EU Member States. The Commission also participated in and provided regular updates 
on  the  IPA  programming  process  to  a  Donor  Coordination  Forum  which  comprised  the 
European  Union  Delegation,  the  EBRD,  the  International  Monetary  Fund  (IMF),  United 
Nations Development Programme (UNDP/United Nations Resident Coordinator (UNRC), the 
KfW, the World Bank and key bilateral donors. 

Improved donor co-ordination resulted in the division of labour in certain areas, in particular 
in infrastructure investments, where member states or other donors are carrying out projects 
which would otherwise not have been considered for financing.  

The  Commission  used  different  management  approaches  to  implement  assistance  under  the 
IPA 2010 programme to ensure adjusted, efficient and effective programme implementation. 
The  predominant  part  of  the  assistance,  which  was  devoted  to  infrastructure  projects,  was 
implemented  by  joint  and  indirect  central  management,  while  other  assistance  was 
implemented as twinning with European member states or technical assistance.  

A lesson confirmed (this is not a new lesson, in BiH or elsewhere) from the implementation of 
assistance in Bosnia and Herzegovina was that lack of ownership and political commitment is 
detrimental to the success of the assistance. In particular, despite the efforts of EU assistance 

25 

 
 
to support key reforms, progress has been rather limited in terms of state building, governance 
and rule of law implementation, as well as in the approximation to European Standards. The 
complex  constitutional  set-up, 
insufficient  political  support  and  an  overall  weak 
administrative  capacity  have  not  been  conducive  to  reform  implementation.  The  workshops 
mentioned  in  section  2.1  aimed  to  include  final  beneficiaries  as  early  as  possible  in  the 
programming  and  project  identification  process  to  encourage  ownership  and  commitment. 
This approach has been confirmed by the recommendation of the Interim/Strategic Evaluation 
of  IPA  Pre-accession  Assistance  to  Bosnia  and  Herzegovina  in  the  year  2010,  which 
recommended  the  securing  of  an  adequate  time  frame  for  consultation  and  sufficient 
participation of all relevant stakeholders. 

In addition, the programme aimed at promoting ownership by ensuring that projects were in 
line with Bosnia and Herzegovina's own reform strategies and development plans, especially 
the public administration reform and the judicial reform strategies. 

The programming exercise for IPA 2011 started officially in November 2010 with a kick-off 
meeting  in  Sarajevo  where  the  beneficiaries  were  asked  to  propose  their  priorities  for  the 
timeframe 2011 – 2013 and to propose projects based on these priorities for the IPA 2011.  

Table 2: Indicative financial allocations for the year 2010 per component, in million EUR 

BOSNIA AND HERZEGOVINA 
I. Transition Assistance and Institution Building 

Of which: 

II. Cross-Border Cooperation 
Of which: 

National Programme 
Tempus Programme* 

CBC Bosnia and Herzegovina – Croatia 
CBC Bosnia and Herzegovina - Montenegro 
CBC Bosnia and Herzegovina - Serbia 
CBC IPA Adriatic 

TOTAL 

* The Tempus Programme is coordinated and implemented in the Multi-beneficiary IPA 2010 

2010
100.69

 98.29
2.40
4.70

1.00
0.50
0.70
2.50
105.39

26 

 
 
 
 
 
 
Table  3:  Indicative  financial  allocations  for  the  year  2010  under  the  National 
Programme, per priority axis and per project, in million EUR 

Priority Axis/Projects
Political Criteria 

Budget

31.90

Enhancing the Social Protection and Inclusion System for vulnerable 
groups – Phase III 
Construction  of  a  High  Security  State  Prison  in  Bosnia  and 
Herzegovina - Phase II   
Strengthening the Judiciary
Support to the Area of Law Enforcement
Implementation of the Anti-Corruption Strategy and Action Plan   

Preservation of Bosnia and Herzegovina’s Cultural Heritage – Phase 
Coordination  of  policy  making  capacities  and  public  financial 
Information Systems in Public Institutions
Support  to  the  Forensic  Science  Department  of  the  International 
Commission on Missing Persons  

Economic Criteria 

Rehabilitation and Development of Transport and Navigation on the 
Sava River Waterway   

Rehabilitation and construction of water, waste water and solid waste 
infrastructure
Rehabilitation  and  construction  of  water  and  waste  water 
infrastructure   

Ability to assume the obligations of membership 

Pilot support to IPA Rural Development measures   

Improvement of animal health control through the vaccination against 
rabies 
Strengthening  the  customs  sector  within  the  Indirect  Taxation 
Authority   
Supporting programmes 

Participation of Bosnia and Herzegovina in Community Programmes   

Project Preparation Facility

TOTAL 

2.2.2.2.  Component II 

1.40

5.15

4.00
8.00
2.00

5.00
3.00
1.35
2.00

51.60

5.60

40.00

6.00

8.31
3.00

3.06

2.25

6.48

1.50

4.98
98.29

The  overall  objective  of  the  cross-border  cooperation  (CBC)  programmes  is  to  promote 
cooperation between people, communities and institutions, aiming at sustainable development 
and stability and prosperity of bordering areas. The CBC programmes should have catalytic 
effects  as  they  should  build  the  capacities  of  local  stakeholders,  municipal,  regional 
institutions  and  civil  society,  continuously  strengthening  their  ability  to  participate  in  cross-
border initiatives. 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The  revised  cross-border  cooperation  programmes  between  Croatia  and  Bosnia  and 
Herzegovina 2007-2011, between Bosnia and Herzegovina and Montenegro 2007-2011, and 
the multi-annual Financing Proposals for the years 2010 and 2011 for these programmes were 
adopted  by  the  Commission  in  August  2010.  The  revised  cross-border  cooperation 
programme  between  Serbia  and  Bosnia  and  Herzegovina  2007-2011  and  the  multi-annual 
Financing Proposal for the years 2010 and 2011 were adopted by the Commission in October 
2010.  The  revisions  mainly  added  the  2010  and  2011  yearly  financial  allocations  for  both 
countries and minor adjustments revising outdated references, but did not affect the substance 
of the programme.  

Since  2007,  Bosnia  and  Herzegovina  is  taking  part  in  the  IPA  Adriatic  cross-border 
cooperation  programme  together  with  Italy,  Slovenia,  Greece,  Albania,  Croatia,  and 
Montenegro  and,  in  phasing-out,  Serbia.  The  global  objective  of  the  programme  is  to 
strengthen the sustainable development of the Adriatic region.  

Bosnia and Herzegovina is also participating in the ERDF transnational programme "South-
East Europe" (SEE) and "Mediterranean" (MED) under the European Territorial Co-operation 
objective of the Structural Funds 2007-2013. 2010 IPA funds were integrated in the SEE and 
MED programmes. They are managed by the Commission's Directorate-General for Regional 
Policies,  which  is  now  entirely  in  charge  of  the  programming  and  implementation  of  both 
ERDF  and  IPA  funds  within  these  programmes.  The  programme  supports  Bosnia  and 
Herzegovina’s  participation  in  joint  transnational  co-operation  activities  with  partners  from 
EU  Member  States  and  familiarises  the  country  with  territorial  co-operation  programmes 
under EU Structural Funds. 

2.3. 

Implementation of assistance 

2.3.1. 

IPA 

2.3.1.1.  Success stories 

Reinforcement of Local Democracy Project, IPA 2007, direct grant to UNDP (EUR 1.5 
million) 

The Reinforcement of Local Democracy Project worked with 14 local governments focusing 
on  strengthening  relations  between  local  governance  and  the  civil  society  sector,  raising 
awareness on the significance of the institutionalisation of these relations and the transparent 
disbursement of funds.  

There are 142 municipalities in Bosnia and Herzegovina, disbursing millions of euro per year 
to  civil  society  organisations  (CSO),  most  of  them  in  a  non-transparent  manner.  The  main 
objective of this project was therefore two-fold: firstly, to introduce transparent mechanisms 
for  disbursement  of  municipal  funds,  and  secondly,  to  improve  the  communication  and 
partnership  between  CSOs  and  municipalities.  For  many  municipalities,  the  project 
represented a first opportunity to learn how to work with CSOs in a transparent corruption-
free  environment,  thus  helping  them  to  learn  how  to  spend  their  financial  resources 
effectively,  efficiently,  and  by  applying  good  financial  management.  The  EU  will  continue 
with a second phase of this project in an effort to establish this culture in a critical amount of 
municipalities  across  BiH  which  would  in  turn  put  pressure  on  the  rest  to  act  in  a  similarly 
transparent manner.  

28 

 
 
The  objectives  to  introduce  transparent  mechanisms  for  disbursement  of  municipal  funds  to 
CSOs  projects,  to  improve  communication  and  partnership  among  CSOs  and  to  strengthen 
local grassroots organisations were met. 

Monitoring mechanisms were developed and monitoring teams were established in 14 partner 
municipalities.  These  activities  improved  trust,  transparency  and  mutual  understanding 
between  the  civil  society  and  local  governance.  In  total,  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 project of this nature needs to be implemented by the EU to send a clear message to local 
governments  and  civil  society  in  Bosnia  and  Herzegovina  that  transparency  is  a  value 
embedded in the European culture.  

Technical Assistance for the Central Bank of Bosnia and Herzegovina, IPA 2008, direct 
agreement with the European Central Bank (ECB), EUR 1.0 million.  

The overall objective of this project was to assist the Central Bank of Bosnia and Herzegovina 
(CBBH) to continue working towards compliance with the EU central banking standards and 
rules  to  be  ready  to  join  the  European  System  of  Central  Banks  (ESCB)  when  Bosnia  and 
Herzegovina joins the European Union.  

The  success  of  this  project  is  highlighted  by  the  proactive  ownership  of  the  beneficiary 
institution,  whose  staff  has  been  capable  of  adopting  more  advanced  project  implementing 
methodologies,  such  as  tailor-made  transfer  of  know-how  through  well-planned  study 
missions,  expert  visits  or  preparation  of  very  particular  training  documents,  manuals, 
guidelines, bridging models, etc.  

This project needed to be implemented by the EU (and not any other donor) as it concerned 
partnership  with  relevant  EU  institutions  such  as  the  European  Central  Bank  and  National 
Banks from the Euro area.  

The project yielded important deliverables in the fields of portfolio and interest rates statistics, 
including  proposal  for  adequate  IT  communication  solutions,  which  enabled  the  CBBH  to 
improve its preparation of statistical data and information to decision makers, and to provide 
recommendations and economic analysis on policy and fiscal stability.  

Efficient  Prison  Management,  IPA  2007,  Contribution  Agreement  with  Council  of 
Europe (CoE)- known as the 'joint programme',  EUR 600,000. 

As  a  transition  country  with  15  prisons  or  detention  centres  spread  throughout  the  country, 
Bosnia  and  Herzegovina  faces  various  policy,  institutional  and  operational  challenges  in 
meeting  European  standards  in  this  area.  The  joint  programme  therefore  was  designed  to 
address  some  of  those  issues,  and  by  doing  so  not  only  improved  aspects  of  the  day-to-day 
operations  of  the  prisons  and  the  treatment  of  inmates,  but  also  supported  the  responsible 
Ministries of Justice and related ministries such as health, in revising parts of their policy and 
legal framework. 

More  specifically  the  objective  of  the  joint  programme  was  to  address  six  key  areas:  
amending  the  strategic  framework  in  the  use  of  alternative  sanctions  and  independent 
inspections, enhancing staff knowledge of European human rights, improving the treatment of 

29 

 
 
vulnerable  groups,  amending  the  legal  framework  on  mental  health  and  proposing 
improvements to the prison databases.  

With a strong track record in prison reform, the CoE was selected as the EU's implementing 
partner.  As  a  member  state  of  the  CoE,  Bosnia  is  already  obliged  to  adhere  to  European 
standards in this field, particularly the European Convention of Human Rights, and European 
Convention  for  the  Prevention  of  Torture.  However,  as  a  potential  candidate  country  to  the 
EU,  whose  requirements  under  Chapter  23  of  the  accession  negotiations  include  the  same 
conventions,  the  EU  added  value  was  clear  and  founded  on  clear  legal  requirements  for 
accession when compared to an EU Member State financing the same support. Equally, in the 
framework  of  EU  requirements  for  justice,  freedom  and  security,  the  EU  has  a  clear 
framework for this area.  

The joint programme adopted an innovative and inclusive methodology in implementing the 
assistance;  namely  to  establish  working  groups  comprising  officials  from  the  Bosnian 
authorities  for  the  6  areas  mentioned  above.    It  also  included  'cascade'  trainings  whereby  a 
group of 12 Bosnian prison related officials were initially trained as trainers on relevant topics 
and  thereafter  provided  the  trainings  to  their  compatriots.  Such  approaches  were  highly 
appreciated  by  all  the  beneficiaries  who  mentioned  throughout  project  implementation  that 
they  considered  the  approach  not  only  relevant  to  the  reality  in  Bosnia  and  Herzegovina  in 
terms  of  substance,  but  also  sustainable  in  terms  of  impact.  The  calibre  of  expertise  was 
highly valued by all stakeholders.  

In  the  course  of  the  activities,  over  420  prison  related  staff  were  trained,  legal  frameworks 
were  amended  and  adopted,  and  collaboration  between  the  prison  related  staff  including 
ministry officials were reinforced, an important benefit in an administratively and politically 
fragmented set up as that of BiH. 

The  CoE  considered  the  project  to  be  such  a  positive  example  of  CoE/EU  impact  that  they 
undertook an evaluation of the joint programme.  The possibility of future benefits of the CoE 
and EU working together in areas of mutual interest should not be underestimated. 

2.3.1.2.  Overview of IPA implementation in 2010 

Component I: Transition Assistance and Institution Building 

The figures in table 5 below confirm that after the slow start of IPA 2007 the implementation 
of IPA gained momentum and contracting and payment rates improved considerably in 2010. 
At  the  end  of  the  year,  EUR  142.88  were  contracted,  an  increase  of  more  than  100  %  in 
comparison  to  the  year  2009,  when  EUR  70.91  million  were  contracted.  Also  the 
disbursement of EUR 83.31 million at the end of the year 2010 triplicated the 2009 figures, 
when EUR 25.16 million was were disbursed. 

30 

 
 
 
 
 
 
Table 4: Status of implementation of IPA financial assistance (Component I) as of 31st 
December 2010 (in million EUR) per annual programme10 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

Committed  Contracted % Contracted Paid  % Paid 
96.80% 28.74  57.78% 
54.26% 15.94  23.88% 
51.65% 22.01  27.34% 
0% 
42.65% 66.69  22.59% 

49.74 
66.75 
80.50 
98.29 
295.95 

48.15
36.22
41.58
0
125.95

0%

0 

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes

% of 2007-2010 allocations 

Political criteria 

(of which civil society)

Economic criteria 
Ability 
to 
Support programmes 
TOTAL 

assume  membership 

29% 
(4%) 
42% 
25% 
4% 
100% 

SIGMA activities were implemented in the frame of 6 active project definition sheets (PDS). 
Most of the work was done in the area of public procurement, with comments on a draft law 
on  public  procurement  and  a  peer  review  that  started  at  the  end  of  2010.  A  workshop  was 
done jointly with a technical assistance project in the area of Public Internal Financial Control 
(PIFC).  Advisory  assistance  to  the  decentralisation  of  assistance  (DIS)  on  the  set  up  of  the 
Audit  Authority  was  suspended,  together  with  other  assistance  to  DIS  due  to  the  lack  of 
progress in nominations and a legal basis for DIS.  

One  continued  activity  was  the  support  to  the  Public  Administration  Reform  (PAR)  and 
especially further work on the Blueprint of the Centres of Government. Another activity was 
in the area of administrative decision-making, procedures and disputes but without follow up 
on  the  side  of  authorities.  SIGMA  assistance  has  in  general  been  timely,  professional  and 
efficient.  

Twinning: 5 twinning projects were launched and a further 5 were under implementation. No 
twinning  light  projects  were  implemented  in  Bosnia  and  Herzegovina.  The  general  problem 
with  twinning  projects  was  the  exceptionally  long  procedure  for  work-plan  preparation  and 
contract  signature  that  created  uncertainty  on  both  Member  State  and  beneficiary  sides  and 
postponed the European Commission's contracting targets and led to the ineligibility of many 
costs  for  the  beneficiary  participants.  With  budget constraints on the side of the beneficiary 
country and the non-adoption of the state budget, the beneficiaries were unable to take part in 
some of the twinning activities which reduced the impact of twinning projects in BiH.  

The TAIEX instrument was largely used by institutions from State and entities (e.g. study 
tour, expert mission to beneficiary country, participation in regional workshops, organisation 
of  a  single-country  seminars,  etc).  TAIEX  assistance  predominantly  was  requested  and 

10 Figures do not include allocations to support the Office of the High Representative in Bosnia and Herzegovina  

31 

 
 
 
 
                                                 
provided  for  the  areas  of  justice  and  home  affairs  and  internal  market.  Out  of  119 
applications, 91 were approved and realised in 2010.   

In  addition  to  classical  TAIEX  assistance,  it’s  the  non-governmental  sector  (civil  society 
organisations)  in  particular  benefited  from  the  European  Union's  People-to-People 
Programme  (P2P),  in  the  form  of  study  tours  to  Brussels,  to  learn  about  EU  policies, 
legislation, and programmes.  22 P2P study tours were organised in 2010. 

154 TAIEX and P2P events involving Bosnia and Herzegovina were organised in 2010, out 
of which 79 were single country events and 75 were multi-country events. 

EU Programmes 

In  2010  Bosnia  and  Herzegovina  participated  in  the  Seventh  Framework  Programme  for 
Research and Technological Development (FP7). The costs for the entry ticket were EUR 1.5 
million, of which 85% were co-financed by IPA. The Ministry of Civil Affairs, in cooperation 
with a network of National Contact Points (NCP), which are based at Universities throughout 
Bosnia and Herzegovina, organised a series of workshops and training session for applicants 
to increase the rate of participation in the programme as well as to improve their capacities in 
submitting good quality project proposals. Bosnia and Herzegovina had 25 approved projects 
with  a  total  amount  of  EUR  2  million.  BiH  research  institutions  also  participated  in  16 
European Cooperation in Science and Technology (COSTS) actions and 2 EUREKA projects. 

During 2010 BiH negotiated the Memorandum of Understanding (MoU) for entering into the 
Culture Programme. The MoU was signed in November 2010, enabling it to take part in the 
programme as of January 2011.  

In the second half of 2010, Bosnia and Herzegovina initiated a series of consultations with the 
different  European  Commission  services  on  the  participation  in  the  Entrepreneurship  and 
Innovation  programme  (EIP),  the,  Media  programme,  and  the  programme  Europe  for 
Citizens.  

Component II: Cross-border Cooperation (CBC) 

The contracting peak for the 2007 and 2008 bilateral CBC programmes was reached towards 
the end of 2010, when the evaluations of the received proposals were completed. The first call 
for proposal for bilateral  programmes demonstrated that that the interest for participation in 
the  programme  exceeded  by  far  the  available  resources.  As  an  example,  the  Commission 
received  more  than  100  applications  for  participation  in  the  CBC  Croatia  –  Bosnia  and 
Herzegovina  programme,  requesting  more  than  Euro  25  million.  Finally,  thirteen  projects 
worth EUR 1.6 million were accepted. 

32 

 
 
Tables  6:  Status  of  implementation  of  IPA  financial  assistance  (Component  II)  as  at 
31st December 2010 (in million EUR) per annual programme11  

IPA 2007-2010 

Committed 
18.82

Paid 

% Paid 

1.59

8.45% 

Out of which, the breakdown for the intra-Western Balkans CBC Programmes and the ERDF 
Transnational Programmes (South-East Europe and Mediterranean) is: 

Committed  Contracted % Contracted Paid  % Paid 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

2.65 
2.71 
2.76 
2.20 
10.32 

1.74
0.65
0.00
0.00
2.39

65.66% 1.19 
23.99% 0.40 
0% 0.00 
0% 0.00 

47% 
14% 
0% 
0% 
23.16% 1.59  15.41% 

Table 7: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

% of 2007-2010 allocations 

CBC with Member States 
CBC within Western Balkans 
Participation to ERDF Transnational 
TOTAL 

2.3.1.3.  Implementation Modalities and Structures 

44%
45%
11%
100%

Implementation of Component I and II programmes: As in the previous reporting year, also 
in 2010 the majority of projects under IPA 2007, 2008 and 2009 Components I and II were 
implemented  on  a  centralised  (devolved)  basis  by  the  EU  Delegation  to  Bosnia  and 
Herzegovina,  in  accordance  with  Article  53(a)  of  the  Financial  Regulation  (FR)  and  the 
corresponding  provisions  of  the  Implementing  Rules  (IR).  Exceptions  are  the  infrastructure 
support  projects  in  the  2009  and  2010  IPA  programmes,  which  were  implemented  by  joint 
management  with  the  European  Bank  for  Reconstruction  and  Development  (EBRD),  the 
European Investment Bank (EIB), and the World Bank (WB) in accordance with FR Article 
53(d)  and  corresponding  IR  provisions,  and  by  indirect  centralised  management  through  a 
delegation agreement with the Kreditanstalt für Wiederaufbau (KfW), in accordance with FR 
Article 54(2)(c) and corresponding IR provisions. 

Multi-Beneficiary programmes: As was the case in the previous reporting year, Bosnia and 
Herzegovina's participation in horizontal nuclear safety and education (Tempus) programmes 
was funded by allocations under Component I of IPA, but was implemented on a centralised 
basis  by  the  European  Commission  in  Brussels  in  the  framework  of  the  Multi-Beneficiary 
Programme. 

Preparation for decentralised management of IPA: In April 2010, the Council of Ministers 
of Bosnia and Herzegovina adopted decisions to nominate the Competent Accrediting Officer 
(CAO), the National Authorising Officer (NAO), and the National IPA Coordinator (NIPAC). 
The  CFCU  (Central  Finance  and  Contracts  Unit)  and  National  Fund  (NF)  are  established 
within the Ministry of Finance and Treasury and are functional although not fully staffed at 

11  

Including IPA Adriatic  

33 

 
 
 
 
 
                                                 
the end of 2010. However, State and entity representatives could not agree on the structures to 
be  built  to  support  the  decentralised  implementation  of  EU  assistance,  further  blocking 
progress towards decentralisation. 

2.3.1.4.  Monitoring 

During  2010,  regular  project  monitoring  was  undertaken  by  EU  Delegation  programme 
managers  on  all  ongoing  contracts  through  participation  in  project  Steering  Committees,  in 
specific project activities and visibility events (conferences, seminars, training sessions, open 
days) and by field visits, including verification of progress of construction works and delivery 
of supplies. The general picture of implementation coming from the monitoring activities was 
rather good; programme managers were in general able to see if the projects are on the track 
and slightly steer them if needed. Visibility events in general received good media coverage. 

71 Result-oriented Monitoring (ROM) missions were undertaken for 63 projects with a total 
value of approximately EUR 78 million. This was an increase of more than 100 % compared 
to the previous year, both in value and in number of monitoring missions. The average score 
of  the  projects  performance  was  2.17  on  the  scale  from  1  -  very  good  to  4  -  serious 
deficiencies. Except for individual projects related to social protection, regional development, 
support  to  rural  development  and  support  to  the  Ministries  of  Justice,  for  which  corrective 
measures were taken, most of the projects received scores ranging from 1 to 3. In general, the 
problematic 
impact  prospects,  potential  sustainability,  and 
effectiveness to date. Relevance and quality of design as well efficiency of implementation to 
date  were  in  general  better  scored.  For  each  project,  key  recommendations  were  proposed 
separately  for  the  contractor  and  for  the  EU  Delegation  in  order  to  move  forward.  The 
implementation of these recommendations generally proved to be successful and the projects 
were able to get back on track.  

included  mainly 

issues 

The  projects  "Bosnian  Kingdom  Trial",  "VRBAS,  Joint  tourism  development  of  the  Vrbas 
valley"  "Building  in  the  Capacity  for  Exports  and  Promote  Export  Base  in  BiH",  "Mine 
Clearance and Technical Assistance", and "Reinforcement of Local Democracy I" as well as 
"Support  to  the  Registry  for  Section  I  for  War  Crime  and  Section  II  for  Organised  Crime" 
were considered as success stories.  

The  findings  of  ROM  reports  in  2010  indicated  that  the  best  performance  of  projects  was 
demonstrated  in  relation  to  relevance  /project  design  quality  and  impact  as  well  as 
sustainability prospects. 

In  terms  of  involvement  of  the  beneficiary  institutions  in  the  monitoring  activity,  their 
representatives participated in project Steering Committees and the above mentioned specific 
project  activities  and  visibility  events  as  it  was  the  practice  in  past  years.  The  step  forward 
was  undertaken  in  summer  2010,  when  the  Monitoring  and  Evaluation  (M&E)  unit  was 
established  within  the  EU  assistance  coordination  sector  of  the  Directorate  for  European 
Integration  (DEI).  Capacity  building  to  the  staff  of  the  M&E  Unit  was  s  provided  by  the 
Commission.  

34 

 
 
2.3.2.  CARDS 

2.3.2.1.  Sectors with positive results/ Success stories 

As  the  implementation  of  CARDS  programme  was  very  successful  in  Bosnia  and 
Herzegovina  and  done  within  a  relevant  timeline,  it  is  almost  completed  and  therefore  no 
noteworthy activities took place in 2010. All the relevant CARDS success stories as well as 
lessons learned were therefore reported in previous Reports. All evaluations were also done 
in the previous period.   

2.3.2.2.  Management performance 

With regards to the closure of CARDS contracts, 111 contracts were closed in 2010 compared 
to 97 closed CARDS contracts in 2009.  

In  2010,  17  recovery  orders  were  issued  in  a  total  value  of  EUR  525,716  of  which  EUR 
478,031 was recovered by the end of the year. This is an increase compared with 2009. Sound 
financial management and the effectiveness and efficiency of the activities were ensured inter 
alia  through  the  recovery  orders.  The  most  common  reasons  for  the  recovery  orders  were 
ineligible  expenses  (identified  either  by  the  EU  Delegation  or  by  external  auditors  in  their 
expenditure verification report), unspent advance payments, and recovery of interest.  

Table 8: Status of financial assistance at the end of December 2010 (in million EUR) – 
CARDS annual programmes12 

Allocated  Contracted % Contracted

Paid 

% Paid 

CARDS 2001 
CARDS 2002 

CARDS 2003 
CARDS 2004 
CARDS 2005 

CARDS 2006 

105.23 
60.50 

50.60 
62.10 
44.00 

43.80 

98.12
56.53

46.09
60.15
42.79

42.30

93.24%
93.44%

91.09%
96.86%
97.25%

96.58%

98.12 
56.53 

46.07 
59.96 
41.95 

40.72 

93.24%
93.44%

91.05%
96.55%
95.34%

92.97%

Total 

366.23 

345.98

94.47%

343.35 

93.75%

2.3.2.3.  Institution Building highlights  

CARDS 2006 "Capacity building and Institutional Strengthening of Science and Research in 
BiH" (Service Contract EUR 477,900) 

The  project  was  completed  successfully.  It  supported  the  re-establishment  of  a  vibrant 
national  research,  technological  development and  innovation  system,  and  further  integration 
of  Bosnia  and  Herzegovina  into  the  European  Research  Area.  It  also  contributed  to  the 

12  

Figures  include  only  Annual  Action  Programmes,  while  not  including  other  programmes  managed 
centrally, such as Customs and Taxation, or assistance to support the budget of the Office of the High 
Representative in Bosnia and Herzegovina   

35 

 
 
 
 
 
                                                 
development  and  strengthening  of  the  national  contact  point  network  for  FP7  and  provided 
support  for  the  Ministry  of  Civil  Affairs  in  promoting  activities  in  the  science  and  research 
sector.  The  project  received  great  support  from  the  Federation  of  Bosnia  and  Herzegovina 
Ministry  of  Education  and  Science  and  the  Republika  Srpska  Ministry  of  Science  and 
Technology. 

36 

 
 
3. 

CROATIA  

3.1. 

Summary  

In  2010  the  European  Union  continued  providing  IPA  support  for  the  accession  process  of 
Croatia. Croatia made good progress in using IPA funds towards completing the preparations 
for accession to the EU and assuming the responsibilities of full membership. 

The  implementation  of  IPA,  as  in  the  previous  reporting  period,  took  place  under  the 
provisions  for  decentralised  management,  through  which  the  management  of  programs  is 
undertaken  by  the  relevant  Croatian  authorities,  subject  to  the  ex  ante  controls  by  the 
European  Commission.  Furthermore,  progress  was  made  by  Croatia  towards  meeting  the 
conditions for the waiver of ex ante controls. 

Programming  and  implementation  of  IPA  was  differentiated  into  five  components  that 
focused  on  particular  strategic  priorities,  as  defined  in  the  Multi-annual  Indicative 
Programming Document (MIPD) for Croatia. 

IPA  Component  I,  Transition  Assistance  and  Institution  Building  (TAIB),  focused  on  the 
remaining  assistance  needs  of  Croatia  relevant  for  assuming  membership  obligations.  The 
TAIB  National  Programme  provided  support  in  particular  for  efforts  to  reform  the  judicial 
system, as well as improve Croatia's capacity of assuming its obligations under the EU acquis.   
Component  II,  Cross-Border  Cooperation  (CBC),  continued  promoting  the  development  of 
good neighbourly relations between Croatia and the EU Member States, as well as the other 
Western  Balkan  countries.  Components  III,  IV  and  V  served  the  dual  role  of,  on  one  hand 
improving the regional competitiveness and development of Croatia, and on the other hand, 
preparing  the  national  authorities  for  the  implementation  of  structural  and  cohesion  funds 
available after the date of accession.  

As regards the performance during the reporting period, Component I was characterised by a 
relatively stable performance in 2010, with 13 twinning and 8 twinning light projects under 
implementation in this period, as well as considerable support provided to Croatia under the 
TAIEX  and  SIGMA  programs.  TAIB  2007  National  Programme  reached  its  contracting 
deadline,  achieving  a  contracting  rate  of  92.22%,  but  the  2008  National  Programme  faced 
delays in contracting. This lead to a situation where Croatia will have to implement various 
programmes under this component simultaneously.  

Component  IV,  Human  Resources  Development,  showed  good  performance,  with  tenders 
launched covering 87% of the 2007-2009 allocation and contracts signed representing 70% of 
the same allocation. The programmes under Components II, III and V showed a slower pace 
of activity compared with Component I and IV. This was due to a number of factors such as 
the addition of new bodies to the implementation system in the case of the Cross-Border Co-
operation Component, the underlying complexity of big infrastructure contracts in the case of 
Component  III,  or  due  to  delays  in  the  conferral  of  management  for  Component  V,  Rural 
Development.  Nevertheless,  addressing  these  delays  in  the  implementation  process  led  to 
important  lessons  for  improving  the  structures  managing  pre-accession  assistance  and 
preparing for managing EU Structural and Cohesion funds.   

37 

 
 
3.2. 

Strategic planning and programming  

3.2.1.  Multi-annual Indicative Planning Document  

The purpose of the MIPD, prepared during 2010, is to set out the EU's priorities for assistance 
to  Croatia  for  the  programming  period  2011-2013.  Croatia  will  receive  an  indicative 
allocation of EUR 479 million, according to the Multi-annual Indicative Financial Framework 
(MIFF)  for  IPA  for  the  years  2011-2013.  The  "Enlargement  Strategy  and  Main  Challenges 
2010—2011"  and  the  2010  Progress  Report13,  identifies  Croatia's  needs  to  consolidate 
reforms in the field of judiciary and fundamental rights and to make further efforts to finalise 
and implement the legal framework for public administration reform.  Further, Croatia needs 
to sustain efforts to fully establish the administrative structures required for the management 
and control of EU funds. 

In  order  to  achieve  these  priorities,  the  Commission  decided  to  focus  assistance  on  the 
following 7 sectors, as detailed in the MIPD:  

- Justice and home affairs and fundamental rights,  

- Public administration reform,  

- Environment and climate change,  

- Transport,  

- Private sector development,  

- Social development,  

- Agriculture / rural development. 

Croatia  has  shown  a  high  degree  of  ownership  during  discussions  on  the  draft  MIPD  and 
raised  a  number  of  questions  related  to  the  presentation  of  assistance  per  "sectors"  (rather 
than,  as  in  the  past,  by  IPA  Components)  and  its  suitability  for  Croatia.  The  Commission 
explained, as agreed in the wider context of the IPA donor coordination conferences, the need 
to  enhance  the  strategic  links  between  membership  preparations,  the  Annual  Enlargement 
Strategy  and  the  Progress  Report  with  financial  assistance.  Evaluations  made  by    external 
parties,  such  as  the  Court  of  Auditors  and  the  European  Parliament,  on  the  effectiveness  of 
financial assistance in Croatia have been carefully taken into consideration. 

13 
http://ec.europa.eu/enlargement/press_corner/key-documents/reports_nov_2010_en.htm 

Enlargement Strategy and Main Challenges 2010-2011, COM(2010) 660 of 9 November 2010, 

38 

 
 
                                                 
Table 1: MIFF14 allocations per component, in million EUR 

Component 
I – Transition Assistance and Institution Building
II – Cross-border cooperation 
III – Regional Development 
IV – Human Resources Development 
V – Rural Development 
TOTAL 

2012 
2011 
2010 
40.87 
39.96
39.48
16.14 
15.87
15.60
59.35 
58.20
56.80
16.04 
16.00
15.70
27.27 
26.50
26.00
153.58 156.53 159.67 

2010-2012
120.31
47.61
174.35
47.74
79.77
469.78

3.2.2.  Programming exercise  

Table  2:  Indicative  financial  allocations  for  the  year  2010  per  component,  in  million 
EUR  

CROATIA 
I. Transition Assistance and Institution Building 
Of which: 

                                                                                  National Programme  
                                                                             Nuclear Safety Programme* 
II. Cross-Border Cooperation 
Of which:                     

                                                        CBC Croatia– Bosnia and Herzegovina 
                                                                          CBC Croatia - Montenegro 
                                                                                   CBC Croatia - Serbia 
CBC Croatia – Slovenia 
CBC Croatia – Hungary 
CBC IPA Adriatic 

III. Regional Development 
Of which: 

Transport 
Environment 
Regional Competitiveness 

IV. Human Resources Development 
V. Rural Development 
TOTAL 

2010 
39.48

38.62
0.86
15.60

1.00
0.40
0.80
3.27
2.67
7.46
56.80

21.30
21.30
14.20
15.70  
26.00
153.58

*The Nuclear Safety Programme is coordinated and implemented under the relevant Multi-beneficiary IPA 2010 
programme. 

3.2.2.1.  Component I: Transition Assistance and Institution Building  

The  IPA  2010  Component  I  programme  for  Croatia  was  adopted  by  the  Commission  on  7 
December  2010,  on  the  basis  of  project  proposals  made  by  the  National  IPA  Coordinator 
(NIPAC) in Croatia and subsequent discussions with the Commission.  

14 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

39 

 
 
                                                 
Given the advanced state of membership preparations, the IPA Component I programme for 
Croatia  focused  on  the  remaining  assistance  needs  relevant  for  assuming  membership 
obligations.    The  13  projects  of  the  IPA  2010  programme  were  grouped  under  the  four 
strategic  priority  axes  defined  in  the  Multi-annual  Indicative  Planning  Document  (MIPD) 
2009-2011 for Croatia: political criteria, economic criteria, ability to assume the obligations 
of membership, and supporting programmes.  

They  were  selected  by  taking  into  account  their  compliance  with  the  Accession  Partnership 
adopted  on  12  February  2008,  as  well  as  the  Enlargement  Strategy  Paper  and  the  Croatia 
Progress Report. They have also been assessed against the background of the 2009 National 
Plan  for  the  integration  of  the  Republic  of  Croatia  into  the  EU,  the  Croatian  strategic 
development framework 2006-2013, as well as sectoral strategies wherever appropriate. 

About two thirds of the IPA funding was delivered through institution-building activities. The 
remaining  third  focused  on  investment.  Under  the  Institution  Building  Component,  the 
twinning instrument continued to be the preferred implementation modality for transposition 
or  legal  approximation-related  projects,  benefiting  from  expertise  from  within  the  Member 
States. Investment projects related to the growing importance of strengthening administrative 
capacity,  complementing  acquis  related  projects  with  an  increased  emphasis  on  post-
accession objectives.  

Lessons learned from previous years were taken  into consideration  when programming  IPA 
2010,  as  described  in  the  thematic  Public  Administration  Reform15  evaluation  and  in  the 
Country Programme Interim Evaluation carried out by the Commission in 2009 (final report 
of March 2010), as well as  the  Country  Programme  Interim  Evaluation 2010 carried  out by 
the Croatian authorities. 

During  the  programming  exercise,  attention  was  paid  especially  to  conditionality  and 
sequencing  by  assessing  the  complementarity  with  past  and  ongoing  projects  so  as  to  avoid 
overlaps. Most IPA projects were to a various degree follow-ups of previous projects under 
CARDS and PHARE or precursors for new projects. Measures were deployed to improve the 
administrative implementability of projects and compress the length of the preparatory phase. 

15 

Supporting Public Administration Reform in Croatia – Thematic Evaluation of EU and other support, 
MWH Consortium, June 2009. 

40 

 
 
                                                 
Table  3:  Indicative  financial  allocations  for  the  year  2010  under  the  National  Programme  for 
Component I, per priority axis and per project, in million EUR  

Priority Axis/Projects 
Political Criteria  

Improvement of the Enforcement system  
Strengthening the efficiency of the judiciary  
Civil Society Facility  
De-mining Programme in War Affected Areas  

Economic Criteria  

Integrated Land Administration System Implementation  

Ability to assume the obligations of membership 

Continued Support to animal disease control/ eradication  
Enhancement of the CTA administrative and institutional capacity  
Integrated Border Management  
Support to the National Visa System  
Development of flood hazard maps and flood risk maps  
Strengthening  capacities  for  Strategic  environmental  assessment  at 
regional and local level  

Supporting programmes  

Flexible Facility for Reinforcement of Administrative Capacity  
Participation in Union Programmes and Agencies  

TOTAL 

3.2.2.2.   Component II: Cross-Border Cooperation  

Budget  
9.2
1.5
2.3
2.4
3.0
5.5
5.5
12.9
3.1
0.8
5.8
1.2
1.0
1.0

11.0
3.6
7.4
38.6

Croatia  participates  in  cross-border  cooperation  (CBC)  programmes  with  neighbouring  IPA 
countries:  Bosnia  and  Herzegovina,  Montenegro  and  Serbia  as  well  as  with  EU  Member 
States,  namely  Slovenia,  Hungary,  as  well  as  Italy  and  Greece.  These  programmes  aim  at 
encouraging  the  creation  of  cross-border  networks  and  partnerships  and  developing  joint 
cross-border actions with a view to revitalising the economy, protecting the environment and 
increasing social cohesion in the programme areas. They also include technical assistance.  

The Financing Decisions allowing for the deployment of IPA 2010 funds regarding CBC with 
Western  Balkan  countries  were  adopted  in  August  and  September  2010,  worth  respectively 
EUR 2 million for CBC with Bosnia and Herzegovina, EUR 0.9 million for the programme 
with  Montenegro  and  EUR  1.8  million  for  cooperation  with  Serbia  (the  amounts  covering 
both sides of the borders). 

Croatia participates also in the following cross-border programmes with Member States: CBC 
Adriatic,  CBC  Hungary-Croatia  and  CBC  Slovenia-Croatia,  which  had  been  adopted  over 
February-March  2008.  Multi-annual  Financing  Decisions  were  adopted  already  in  2008  and 
modified in 2010 to include the allocations for the years 2010-2011. 

The  "IPA  Adriatic  Cross-Border  Programme"  between  Greece,  Italy,  Slovenia,  Albania, 
Bosnia  and  Herzegovina,  Croatia,  Montenegro  and  Serbia  contain  priority  axes  on 
"Economic,  social  and  institutional  cooperation",  "Natural  and  Cultural  Resources  and  Risk 
Prevention",  "Accessibility  and  Networks"  and  "Technical  assistance"  for  a  total  amount  of 
EUR  37.64  million    under  2010  funding,  with  a  IPA  contribution  for  Croatia  of  EUR  7.46 
million.  

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The  Hungary  –  Croatia  IPA  cross-border  programme  contains  priority  axes  on  "Sustainable 
Environment and Tourism", "Co-operative Economy and Intercommunity Human Resources 
Development"  and  "Technical  assistance",  for  a  total  amount  (again  including  the  ERDF 
contribution) of EUR 8.04 million under 2010 funding, with the IPA contribution amounting 
to EUR 2.67 million. 

The Slovenia – Croatia IPA cross-border programme contains priority axes on "Economic and 
social  development",  "Sustainable  management  of  natural  resources"  and  "Technical 
assistance",  for  a  total  amount  of  EUR  6.54  million under  2010  funding  and  an  IPA 
contribution of EUR 3.67 million. 

3.2.2.3.  Components III-V 

As  regards  IPA  Components  III  and  IV,  Regional  Development  and  respectively  Human 
Resources  Development,  the  relevant  Operational  Programmes  were  modified  in  2010.  The 
priorities  and  objectives  of  the  programmes  remained  unchanged;  additional  resources  were 
allocated  to  the  existing  priority  axes  and  the  indicators  have  been  revised  due  to  this 
increased financial allocation. The new commitment of IPA funds for component III amounts 
to EUR 56.8 million for 2010 and EUR 58.2 million for 2011. 

Furthermore,  for  the  Operational  Programme  for  Human  Resources  Development  two 
modifications  were  made  regarding  the  measures.  In  Priority  2  a  new  measure  was 
introduced:  2.3  Development  of  social  services  to  improve  employment  opportunities.  In 
Priority 3 measure 3.3 Supporting the quality and effectiveness of institutions responsible for 
policy  design  and  provision  of  education  and  training  was  extended  by  including  higher 
education. 

As regards Component V, the programme for Agriculture and Rural Development, adopted in 
February  2008,  was  subsequently  modified  in  October  2008,  September  2009,  and  a  third 
time  in  November  2010.  The  last  modification  included  some  technical  modifications  for 
reasons of clarity and easier administration and implementation of the programme. As lessons 
were  learnt  from  results  of  the  first  and  the  second  call  for  applications,  the  new  proposals 
aimed  also  at  broadening  the  access  of  potential  beneficiaries  that  previously  had  not  been 
eligible  due  to  the  size  of  their  establishments  or  the  exclusion  of  their  sector.  Due  to  this 
modification, an increased number of applications have been noted.  

3.3. 

Implementation of assistance 

3.3.1. 

IPA 

3.3.1.1.  Success stories  

Support  to  the  Parliament  of  Croatia  for  the  Preparation  for  EU  Accession;  IPA  2007 
Component I; EUR 240,045 

The project was implemented by the Croatian Parliament in co-operation with the Hungarian 
National  Assembly  with  inputs  from  various  parliaments  of  the  EU  Member  States.  The 
project  implementation  started  in  February  2010  and  included  nineteen  activities  over  six 
months. 

The  overall  objective  of  the  project  was  to  prepare  the  Parliament  of  Croatia  for  EU 
accession. The project resulted in the elaboration of the efficient legal framework required to 

42 

 
 
meet  the  specific  membership  obligations  of  the  Croatian  Parliament  after  EU  accession,  it 
enhanced the knowledge of the parliamentary staff on EU matters and elaborated proposals on 
the means to raise public awareness on the parliamentary activities related to the EU.  

Throughout this project, the Sabor, as the representative body of the Croatian citizens, became 
more intensively involved in raising the interest of the Croatian society in EU-related issues. 
By  improving  the  internal  co-ordination  and  the  external  relationships  with  Governmental 
bodies, the Sabor was able to launch debates and discussions on the EU. 

Capacity  Building  of  the  Croatian  Administration  in  the  Wine  Sector;  IPA  2007 
Component I, Twinning Light project; EUR 248,000 

This project supported the development of Croatian geographical indications for wine and it 
was implemented from January 2010 to July 2010. 

With  the  assistance  of  Austria,  this  "twinning  light"  project  improved  the  expertise  of  the 
Croatian administration staff working in the wine sector. It also developed an EU-compliant 
system of protected denomination of origin (PDO), based on the existing Croatian wine law. 
Furthermore,  professionals  in  the  wine  sector  were  informed  about  the  consequences  of  the 
new legislation. 

After the 2008 reform of the EU Common Wine Market Organisation, Member States have to 
decide  for  their  wines  between  protected  designation  of  origin  (PDO)  and  protected 
geographical  indication  (PGI).  Given  the  importance  of  the  wine  sector  in  Croatia,  the 
establishment of this system constituted a challenge during the pre-accession period. During 
the  implementation  of  the  project,  the  Wine  Department  of  the  Ministry  of  Agriculture, 
Fisheries  and  Rural  Development  was  trained  through  workshops  and  study  visits  in  the 
technical aspects of preparation of the new act and its implementation.  

The new harmonised legislation was drafted and a plan for its implementation was prepared. 
Workshops  were  held  with  120  professionals  (producers,  institutions  working  in  the  wine 
sector and agricultural advisory services) to inform them about obligations and rights arising 
from the new harmonised legislation. The legislation created through this project entered into 
force in December 2010. 

Transnational  Integrated  Management  of  Water  Resources  in  Agriculture  for  the 
European  Water  Emergency  Control;  IPA  2007  Component  II,  Trans-national 
Programme South East Europe, EUR 65,000.  

The  project  has  dealt  with  the  development  of  shared  methodologies  and  the  application  of 
demonstrative  and  innovative  interventions  towards  the  integrated  management  of  water 
resources  in  rural  areas,  to  move  towards  sustainable  development  models  framed  by  EU 
legislation.  The  main  purpose  was  to  give  concrete  answers  to  the  problem  of  water 
consumptions  and  water  contamination  caused  by  the  intensive  exploitation  operated  by 
agriculture in selected rural communities across South East Europe (SEE), where agriculture 
represents the major user of natural resources and supplier of environmental services. 

In particular Eastern and Southern Europe is affected by a chronic lack of water supply, which 
has reached alarming levels in the recent years. This situation arises from several causes, e.g. 
low  efficiency,  pollution  and  lack  of  an  integrated  cycle  in  agricultural,  civil  and  industrial 

43 

 
 
use of water. Furthermore, the scenario of water availability has deteriorated  due to climate 
change and rainfall seasonality variation. 

The project, commonly referred to as EU WATER, was carried out in eight rural study areas 
belonging  to  eight  SEE  countries  (Greece,  Hungary,  Italy,  the  Republic  of  Moldova16, 
Romania,  Serbia,  Ukraine  and  Croatia)  tackles  the  emergency  related  to  water  consumption 
and contamination in Europe, and aims at spreading, at transnational level, best practices in 
integrated  water  resource  management  in  agriculture  based  on  the  optimization  of  water 
consumption and cutback of groundwater pollution.  

The  main  objectives  of  the  project  were  reorganization  of  existing  knowledge  about  water-
sensitive  areas,  application  of  joint  strategy  by  downscaled  local  intervention  plans  toward 
better  water -  agricultural regimes,  development of practical actions  and grants mechanisms 
for  introducing  new  technologies  and  new  productive  systems  in  agriculture  and  improved 
environmental / rural / land use policy planning thanks to broad local partnerships. The main 
result upon completion will be the establishment of a bottom-up integrated water management 
in  agriculture,  involving  directly  at  least  100  pilot  farms,  60  local  authorities  and  80 
technicians, with wide impact on most stakeholders in each concerned region. 

Project  Zagreb  Main  Railway  Station  Signalling  and  Interlocking  System;  IPA 
Component III, Operational Programme Transport 2007-2009; EUR 12.6 million.  

The signalling and interlocking system at the Zagreb Main Railway Station dated back to the 
1930s  and  it  was  technically  and  technologically  outdated  and  unreliable,  with  train  speeds  
being reduced to 30 km/h in the interest of safety.  

The project was aimed at upgrading railway station technical parameters to Trans-European 
Network  requirements.  The  basic  benefit  was  the  removal  of  a  traffic  bottleneck  and  speed 
restrictions  due  to  antiquated  signalling  equipment.  The  project  included  all  necessary 
reconstruction,  installation  and  adjustment  of  the  devices.  The  design  phase  began  in  2010, 
and  the  works  will  be  finalised  in  2012.  Upon  completion,  both  passenger  and  cargo  rail 
traffic will travel faster through Zagreb. 

Time  for  Women  project;  IPA  Component  IV,  Operational  Programme  Human 
Resources  Development  2007  –  2009,  Priority  Axis  2  Reinforcing  Social  Inclusion  of 
People at Disadvantage;  EUR 108,213  

The region of Eastern Croatia, largely rural, was heavily affected by war in the 1990s. Fifteen 
years  after  the  war,  its  effects  on  the  economy  are  still  felt.  The  labour  market  has  been 
strongly affected by the reduction in employment opportunities, especially for women. 

In  order  to  facilitate  the  entry  into  labour  market  of  unemployed  women,  the  project 
established a network of contacts among them, labour market agents and potential employers. 
However,  since  most  of  the  project  beneficiaries  were  older  than  40  and  out  of  the  labour 
market for a long time, this measure alone would not have significant impact, so the project 
trained about 50 women in pepper and vegetable growing. The practical training was done at 
experimental  farms  established  for  that  purpose.  In  addition,  the  project  procured  ten 
greenhouses, 100 square meters each, which were distributed to the selected trainees in order 
to allow them to continue growing vegetables. Other trainees either had their own facilities or 

16  

Hereafter Moldova 

44 

 
 
                                                 
joined  efforts  with  those  ten  receiving  the  greenhouses.  25  more  women  were  trained  in 
nursing, which they could continue practising on a non-professional basis. The training was 
reinforced by workshops in entrepreneurship and psychological assistance. 

IPA Component V, Agriculture and Rural Development programme 2007-2013.  

In 2010 three calls for applications were launched for two conferred measures under Axis I 
"Improving market efficiency and implementation of Community standards". As a result, 28 
improvement  of  market  efficiency  and 
projects  were  contracted  supporting 
implementation  of  EU  standards  in  the  field  of  environmental  protection,  public  health, 
animal welfare and occupational safety.  

the 

Successful examples can be found for instance in the poultry sector, where many farms still 
do  not  comply  with  animal  welfare  and  EU  environmental  standards.  Thanks  to  the  rural 
development  component,  Croatian  poultry  and  egg  producers  have  received  support  for 
investment  in  equipment  for  laying  hens'  housing,  and  equipment  for  manure  management, 
usage  and  transport.  In  that  way,  producers  introduced  new  production  processes  and 
technologies, as well as improving the quality of their products with the primary emphasis on 
reaching  EU  standards. 
to  new  modernised  production 
facilities/technique, companies reduced their production costs and became more competitive 
in local and European markets. 

In  many  cases, 

thanks 

Other  notable  examples  can  be  found  in  the  meat  sector.  Investment  in  slaughterhouses  is 
particularly important due to the large number of establishments still not compliant with EU 
standards. Many old existing slaughterhouses use IPARD programme funds to enter into the 
1st category of facilities, according to the Commission classification – EU compliant. Through 
the modernisation of their production facilities and practices, they not only assured the safety 
of  the  meat  production  according  to  EU  standards,  but  may  also  be  able  to  expand  their 
markets by increased capacity. 

The IPARD-added value is expressed mainly in compliance of Croatian food production with 
EU  standards,  guaranteeing  safe  food  for  local  and  export  markets  together  with  improving 
their competitiveness.  

3.3.1.2.  Overview of IPA implementation in 2010   

Component I: Transition Assistance and Institution Building  

On 17 November 2010, the TAIB 2007 National Programme reached its contracting deadline, 
achieving a contracting level of EUR 36.84 or 92.22% (excluding the nuclear project). At the 
end  of  2010,  five  months  before  the  contracting  deadline  of  05  June  2011,  excluding  the 
Community  Programme  part,  the  contracting  rate  for  IPA  2008  stood  at  12.1%  or  EUR  4.3 
million in absolute terms. An extension of the contracting deadline by one year for IPA 2008 
was requested by the Croatian Government. . 

In 2010, a total of 13 twinning contracts were under implementation. The sectors targeted by 
the    twinnings  and  partner  countries  were  as  follows:  customs  (Austria),  VAT  (Austria), 
maritime  safety  (Finland  with  Italy  and  Sweden),  intellectual  property  (Denmark)  and  air 
quality monitoring (Finland), funded from the Phare 2006 National Programme, Twinnings in 
the  sectors  anti-corruption  (one  with  Germany  and  another  one  with  France  and  Italy), 
competition  and  state  aid  (Italy  with  UK),  personal  data  protection  (Spain),  combating  drug 

45 

 
 
trafficking  (Austria),  capacity  building  of  the  Croatian  Paying  Agency  (Austria),  energy 
administrative  data  management  (Denmark  with  Latvia  and  Slovenia)  and  chemical  safety 
(Sweden with Italy) were funded from the TAIB 2007 National Programme. 

8 twinning light contracts, all funded from the TAIB 2007 National Programme, were under 
implementation  in  2010  in  the  fields  of  public-private  partnership  (2  contracts,  both  with 
Greece),  plant  protection  products  and  pesticide  residues  (UK),  protection  of  EU  financial 
interests (Romania),  own  resources (Poland), wine sector (Austria), public internal financial 
control (UK) and parliament (Hungary). 

The total amount of twinning and twinning light contracts under implementation in 2010 was 
EUR  15.5  million.  The  funding  was  secured  through  the  Phare  2006  and  the  TAIB  2007 
national programmes. For IPA 2007, several Member States applied to the various twinnings 
in  Croatia,  resulting  in  a  wider  spread  of  Member  States  selected  by  Croatian  ministries  to 
implement these contracts. 

Since  January  2010,  and  upon  request  of  the  EUD,  the  CFCA  has  set  up  a  quality  control 
department for twinnings. This important change resulted in considerable improvement of the 
quality of the twinning documentation submitted to the EUD for ex ante approval as well as 
for the monitoring by the Croatian Contracting Authority of the implementation of twinnings 
in Croatia. 

In 2010, the Delegation was consulted on 198 requests for TAIEX assistance. The majority 
of them were related to: Chapter 12 Food safety (74 requests), Chapter 24 Freedom, Security 
and  Justice  (23  requests),  Chapter  27  Environment  (20  requests),  Chapter  28  Health  and 
Consumer Protection (20 requests) and Chapter 23 Judiciary (13 requests). The other requests 
related  to  all  remaining  chapters.  Interventions  funded  by  TAIEX  can  be  extremely  well 
targeted to the needs of the institutions, and were financially not demanding, which justified 
the high number of requests by the Croatian institutions (in average one each working day). 

During 2010 SIGMA support to Croatia covered the following main areas: 

1. Support in public administration reform and the judiciary sector. A comparative study was 
elaborated on the modality, scope and procedure of verification of assets of officials in the EU 
Member States', Austria, France, Italy and Slovenia. Sigma provided comments on the draft 
legislative  package  elaborated  by  the  Croatian  authorities  in  view  of  meeting  the  closing 
benchmarks  on  prevention  of  corruption  under  Chapter  23  of  the  accession  negotiations. 
These  included  in  particular:  the  Law  on  the  Financing  of  Political  Activities  and  Electoral 
Campaigns,  the  Law  on  Prevention  of  Conflict  of  Interest  and  the  Law  on  Access  to 
Information. Sigma further supported the Ministry of Public Administration in the finalisation 
of  the  draft  Operational  Programme  for  Administrative  Capacity  Development.  Several 
workshops were organised by Sigma in order to strengthen the administrative capacities of the 
Ministry of Public Administration.  

2.  Support  to  the  financial  sector,  included  support  in  drafting  and  implementation  of  the 
National  Anti-Fraud  Strategy.  Workshops  and  consultations  were  held  for  strengthening  the 
AFCOS  network.  Workshops  and  consultations  were  organised  on  compliance  assessment; 
capital  budgeting  and  budget  supervision,  internal  control  and  audit  as  well  as  building  up 
capacities of the ARPA (Audit Authority). 

46 

 
 
3. Assistance to the public procurement system. A comparative study was elaborated on the 
alternatives  in  the  new  EU  Member  States  on  public  procurement  systems  and  rules  for 
procurement of EU funds after accession. Discussions were held with the institutions involved 
for setting-up a national legislative framework for EU funding. Workshops and consultations 
were  organised  to  improve  the  remedy  systems  in  Croatia;  a  workshop  on  ‘Centralised 
Purchasing  in  Practice’  was  held.  Assistance  was  also  provided  to  the  Agency  for  Public 
Private  Partnerships  (APPP)    and  the  Ministry  of  Finance  in  the  field  of  concessions  and 
Private  Public  Partnerships.  Several  workshops  were  organised  in  order  to  improve  the 
capacities of MELE I, contracting authorities and economic operators in applying efficiently 
PP procedures. 

4. Support for the Development of Regulatory Impact Assessment (RIA) including assistance 
in the elaboration of the draft RIA Strategy and RIA Law.  A Conference was held on ‘Impact 
Assessment  and  the  Development  of  Policy-Making  Capacities  in  Croatia’.  Several 
consultations  and  workshops  were  held  for  improving  the  capacities  of  the  Government 
Legislation Office (GLO) on RIA.  

In 2010, Croatia participated Croatia participated in the following EU Programmes: 'Seventh 
Research Framework Programme'; 'Competitiveness and Innovation Framework Programme' 
(including  'Entrepreneurship  and  Innovation  Programme',  'Information  Communication 
Technologies  Policy  Support  Programme'  and  'Intelligent  Energy  Europe  Programme'); 
'Progress';  'Culture';  'Europe  for  Citizens';  'Fiscalis  2013';  'Customs  2013';  'Interoperable 
Delivery of European eGovernment Services to public Administrations Business and Citizens' 
(IDABC);  'Civil  Protection  Financial  Instrument';  'MEDIA  2007';  'Community  action  in  the 
field of health'; 'Marco Polo II'; and 'Civil Protection Mechanism'.  

During  2010  Croatia  signed  a  Memorandum  of  Understanding  (MoU)  establishing  its 
participation in the Life-Long Learning Programme (LLP) and Youth in Action Programme 
as of the budget year 2011.  

Depending  on  the  EU  Programme,  the  relevant  Croatian  authorities  continued  to  undertake 
activities  related  to  the  promotion  of  the  opportunities  under  specific  Programmes  for 
institutions  from  Croatia.  The  Office  of  the  National  IPA  Co-ordinator  organized  on  29 
November 2010 a conference "Participation of the Republic of Croatia in Union Programmes: 
Possibilities  and  Results".  The  opportunities  under  all  EU  Programmes  open  to  Croatian 
institutions  were  presented,  as  well  as  the  results  achieved  so  far.  The  successful  applicants 
from Croatian institutions in the following programmes were underlined: Europe for Citizens, 
Culture  2007-2013  and  Seventh  Framework  Programme  for  Research,  Technological 
Development and Demonstration Activities. 

Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme  

Committed  Contracted % Contracted

Paid  % Paid 

41.12
IPA 2007 
9.59
IPA 2008 
4.68
IPA 2009* 
0.00
IPA 2010 
55.39
TOTAL 
*Excluding a EUR 2.5 million programme cross-delegated to DG Education and Culture 

90.55% 21.41 
7.18 
23.18%
4.57 
11.12%
0 
0%
33.07% 33.16 

45.41 
41.37 
42.10 
38.62 
167.50 

47.15% 
17.36% 
10.86% 
0% 
19.80% 

47 

 
 
 
 
Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes  

Political criteria 

(of which civil society)

Economic criteria 
Ability to assume membership obligations 
Support programmes 
TOTAL 

% of 2007-2010 allocations 
20.06 %
4.85 %
6.68 %
48.87 %
24.35 %
100 %

Component II: Cross-border Cooperation  

Whereas  in  2010  the  contracting  of  the  2007  and  2008  allocations  of  the  transnational 
programmes  South  East  Europe  and  Mediterranean  was  completed,  the  contracting  of  the 
same allocations of the bilateral programmes among IPA countries merely started at the end 
of  the  year.  The  delay  is  significant,  bearing  in  mind  that  the  calls  for  proposals  were 
published in Q3 2008. This is due mostly to the complexity of the evaluation procedure and of 
the management structures. 

The evaluation procedure for calls for proposals consists of four stages. The Joint Technical 
Secretariat prepares the proposals and the Joint Monitoring Committee is regularly consulted. 
Next,  the  evaluation  reports  arising  from  each  of  the  stages  are  controlled  either  by  the 
implementing  body  and  EU  Delegation  (Croatia)  or  just  by  the  EU  Delegation  (Bosnia  and 
Herzegovina, Montenegro, and Serbia).  

The  decisions  on  both  sides  of  the  border  covered  by  a  programme  must  always  be 
harmonised in order to allow the awarding of the matching grants, which requires additional 
time. These operating procedures take a lot of time, to the extent that it makes sense to launch 
calls for proposals for the bilateral programmes only every two years. Still, it is a challenge 
for  the  grant  applicants to  stick  to  the  original  project  proposals  for  a  very  long  time,  often 
despite changing circumstances. 

Tables 6: Status of implementation of IPA financial assistance (Component II) as at 31st 
December 2010 (in million EUR) per annual programme17  

IPA 2007-2010 

Committed 
55.92

Paid 

% Paid 

9.72

17.38% 

Out of which, the breakdown for the intra-Western Balkans CBC Programmes and the ERDF 
Transnational Programmes (South-East Europe and Mediterranean) is: 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

Committed  Contracted  % Contracted 
100%
100%
0%
0%
51.94%

2.65 
2.71 
2.76 
2.20 
10.32 

2.65
2.71
0.00
0.00
5.36

Paid 

0.92 
1.06 
0.00 
0.00 
1.98 

% Paid 
34.72%
39.11%
0%
0%
19.19%

17  

Figures include IPA Adriatic and CBC Programmes with EU Member States 

48 

 
 
 
 
 
 
                                                 
Table 7: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

CBC with Member States 
CBC within Western Balkans 
Participation to ERDF Transnational Programmes 
TOTAL 

of 2007-2010 allocations 
81.54%
15.74%
2.72%
100%

Component III: Regional Development  

Progress  on  the  ground  has  been  rather  slow  as  regards  the  Operational  Programme 
"Environment". Two projects (solid waste) initially approved in the beginning of 2009 were 
modified  (change  in  the  physical  object  as  more  works  were  added  and  the  project  costs 
increased).  The  contracting  rate  for  both  projects  stood  at  zero  at  the  end  of  2010.  A  third 
major  project  application  (waste  water)  initially  rejected  in  2009  was  resubmitted  to  the 
Commission services during 2010 for re-evaluation. At the end of 2010, the relevant funding 
decisions had been adopted for the 2007-2011 allocation to the Operational Programme, five 
contracts were signed and EUR 13 million contracted.  

Under  the  "Regional  competitiveness"  Component,  the  implementation  of  eight  capacity-
building  projects  and  two  grant  schemes  covering  the  2007-2009  allocation  of  funds  (EUR 
35.4 million) began. The programming covering the new 2011-2011 allocation was completed 
and the tender process launched. 

Under  the  "Transportation  Operational  Programme,  five  contracts  were  signed  with  an  IPA 
contribution  of  EUR  9.3  million,  including  3  contracts  for  the  major  project  "Zagreb  Main 
Station Signalling and Interlocking System". A further 5 tenders were running at the end of 
2010 with an IPA contribution of EUR 10 million. Programming for the 2010-11 allocations 
was completed. 

For  all  three  Operational  Programmes,  Croatia  has  submitted  expenditure  claims  to  comply 
with the n+3 rule which has been met for the year 2010.  

A follow-up audit on IPA conferral of management confirmed that internal control procedures 
are  broadly  satisfactory.  The  audit  indicates  that  the  internal  control  procedures  for  IPA 
Component III are designed in a manner ensuring that bodies operate satisfactorily in practice 
and  that  the  conditions  included  in  the  Commission  Decisions  on  conferring  management 
powers  are  properly  addressed.  Recommendations  made  have  been  or  are  being  properly 
addressed. 

Table 8: Status of implementation of IPA financial assistance (Component III) as at 31st 
December 2010 (in million EUR)  

IPA 2007-2010 

199.4

47.1

23.62% 

Committed 

Paid 

% Paid 

49 

 
 
 
 
 
 
 
 
 
Table 9: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Transport 
Environment 
Regional Competitiveness 
TOTAL 

Component IV 

% of 2007-2010 allocations 
37.56 %
37.56 %
24,88 % 
100%

As  regards  the  Human  Resources  Development  Operational  Programme,  tenders  of  EUR 
39.28 million were launched (87% of the total 2007-2009 allocation). Contracts were signed 
worth EUR 31.34 million, representing 70% of the total 2007-2009 allocation. The National 
Fund  received  an  advance  payment  of  EUR  11.48  million  and  it  has  submitted  expenditure 
claims to the Commission for EUR 3.52 million. The amount to be consumed by advance or 
interim payments by the end of 2010 was EUR 11.37 million in respect of the n+3 automatic 
de-commitment rule. An automatic de-commitment by the end of 2010 was thus avoided. 

A follow-up audit on IPA conferral of management confirmed that internal control procedures 
are broadly satisfactory. 

Table  10:  Status  of  implementation  of  IPA  financial  assistance  (Component  IV)  as  at 
31st December 2010 (in million EUR)   

IPA 2007-2010 

Committed 

Paid 

% Paid 

53.9

15.00

27.9 % 

Table 11: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Employment 
Social inclusion 
Human capital and employability 
Technical assistance 
TOTAL 

% of 2007-2010 allocations 
24.9%
25.6%
39.75%
9.8%
100%

Up to 31 December 2010 the tenders for all 8 grant schemes were launched and contracts for 
7  grant  schemes  were  signed,  which  was  an  important  step  in  terms  of  preparation  for  the 
European Social Fund. 

Component V: Agriculture and Rural Development 

Since Croatia received the conferral of management powers for the first two measures under 
IPA Rural Development only in November 2009, the effective implementation only started in 
2010.    Three  calls  for  proposals  were  launched  in  2010  for  the  two  accredited  measures, 
namely measure 101 'Investments in agriculture holdings to restructure and to upgrade to EU 
standards' and measure 103 'Investments in the processing and marketing of agricultural and 
fishery products to restructure these activities and to upgrade them to EU standards'. From 
those 3 calls, the implementing body received 76 applications out of which 28 projects were 
contracted. The value of contracted projects in 2010 involved an EU contribution exceeding 
EUR 6 million. 

50 

 
 
 
 
 
 
In 2010 the Croatian rural development programme provided support to agricultural holdings, 
family  farms  and  food  processing  companies  for  relatively  small  projects  aimed  at 
contributing towards achieving of the improvement of market efficiency and implementation 
of  EU  standards  in  the  field  of  environmental  protection,  public  health,  animal  welfare  and 
occupational safety.  

During  2010,  the  Croatian  authorities  were  focused  on  the  preparation  of  procedures  for 
conferral  of  management  powers  for  the  remaining  programme  measures.  National 
accreditation for measure 301 "Improvement and development of rural infrastructure" and for 
measure 302 "Diversification and development of rural economic activities" was expected to 
be received in the beginning of 2011.  

in 

important  progress 

implementation  could  be  observed, 

Although 
in 
implementation  as  well  as  the  small  value  of  the  contracted  projects  under  the  IPA  Rural 
Development  Programme  still  persisted  by  the  end  of  2010  which  put  at  risk  the  funds 
allocated for 2007 and 2008. According to the "n+3"18 budgetary rule, these funds will have to 
be de-committed if not spent by the end of 2011. Therefore, in the future all efforts would be 
oriented towards further conferral of management and calls for applications. 

the  delays 

Table 12: Status of implementation of IPA financial assistance (Component V) as at 31st 
December 2010 (in million EUR)  

IPA 2007-2010 

102.90

11.53

11% 

Committed 

Paid 

% Paid 

Table 13: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Market efficiency and EU standards 
Agri-environmental measures and Leader approach 
Development of rural economy 
Technical assistance 
TOTAL 

% of 2007-2010 allocations 
65.7%
1.3%
29.8%
3.2%
100%

3.3.1.3.  Implementation Modalities and Structures   

IPA develops its full potential when a candidate country decides to entrust management of its 
components, from the outset, to the institutions which will continue to manage post-accession 
instruments. With the Commission decision to confer management, a candidate country better 
manages  the  transition  between  the  IPA  instruments  and  the  structural  funds  by  the  time  of 
accession.  All  IPA  components  in  Croatia  continue  to  be  implemented  on  a  decentralised 
basis,  by  the  system  to  which  management  was  conferred  in  2008  (except  for  the  rural 
development component for which the conferral took place in November 2009). 

The  only  major  change  in  the  administrative  capacity  of  the  structure  managing  IPA 
Component II during 2010 happened in August when the Commission conferred management 
of the programmes with non-Member States to the Agency for Regional Development, which 
was  envisaged  to  continue  to  manage  related  programmes  under  the  ERDF  –  Priority 

18 

As foreseen by Article 166 (3)(a) of Regulation (EC, EURATOM) No 1605/2002 of 25 June 2002. 

51 

 
 
 
 
                                                 
Territorial  Co-operation.  This  ensured  respect  of  the  most  important  principle  of  IPA 
assistance, which was institutional continuity for post-accession assistance. 

Due  to  a  small  number  of  calls  for  proposals  managed  by  the  Agency,  the  question  how  to 
formulate  the  roadmap  for  the  waiver  of  ex  ante  controls  with  meaningful  performance 
benchmarks remained open. That is one of the reasons why the roadmap for IPA Component 
II  was  still  not  agreed  at  end  2010.  Other  reasons  are  weaknesses  in  the  draft,  which  range 
from general reference to training courses to the role of the procurement plan and dilution of 
responsibility for certain measures. 

The Croatian authorities have taken adequate measures to follow up on the recommendations 
of the 2009 Country Programme Interim Evaluation. Additional personnel has been employed 
in  the  institutions  which  lacked  staff,  in  order  to  raise  performance  to  optimum,  meet  the 
criteria  from  the  roadmap  for  ex  ante  controls  and  prepare  for  implementation  of  financial 
instruments post-accession.  

The  screening  of  project  proposals  by  the  NIPAC  in  Component  I  became  stricter  during 
2010,  and  the  margin  of  reserve  project  proposals  decreased  from  300%  of  the  available 
budget in case of TAIB 2008 National Programme to less than 100%. NIPAC has intensified 
the  training  and  advice  to  the  PIUs  in  the  programming  phase,  which  increases 
implementability of the most recent programmes. At the same time, better knowledge of the 
project  cycle  management  and  intensified  controls  has  had  an  impact  on  the  quality  of 
monitoring and evaluation at all levels. 

Croatia has taken over full responsibility of interim evaluations under IPA Component I. The 
first Country Programme interim Evaluation (CPiE) contracted by CODEF was presented in 
December  2010.  Overall,  the  report  indicates  that  performance  is  good,  and  in  most  cases 
Phare/ IPA TAIB are effectively used to support Croatia’s technical preparation for accession. 
However, the report was also clear that further progress was needed to increase the absorption 
rate. 

3.3.1.4.  Monitoring  

The European Union Delegation in Croatia (EUD) continues to carry out monitoring activities 
as follows: 

(1) Formal  monitoring at programme level:  

Active participation in meetings:  

•  Bi-annual Sectoral Monitoring Committees  for  IPA  I, IIIa, IIIb , IIIc and IV, as well as  
bi-annual  sectoral  monitoring  sub-committees  under    IPA  Component  I  (six  sub-
committees);  

•  Joint  Monitoring  Committees  (twice  a  year)  and  Joint  Steering  Committees  (meetings  at 
each step of evaluation process of calls for proposals) for each of IPA IIb (CBC between 
IPA countries) Programmes; 

•  Bi-annual ISPA Monitoring Committees;   
•  Bi-annual SAPARD Monitoring Committees;   
•  Annual IPA Monitoring Committee, as well as the Joint Monitoring Committee for Phare 

and CARDS. 

Review of Reports: 

52 

 
 
•  Review  of  all  sectoral  implementation  reports  produced  in  the  framework  of  these 

Monitoring Committees  

(2) Specific monitoring at priority/measure/project level:  

Active participation in following meetings: 

•  Participation in tender evaluations;  
•  Monthly meeting with the  Ministry responsible for the priority/ measure/  project; 
•  Kick-off meeting at project level; 
•  Ad  hoc  meetings  (at  the  request  of  explain  OS,  or  at  the  Delegation's  request)  related  to  

implementation issues;  

•  Project opening and closing visibility events; 
•  Project Steering Committee at project level. 

Review of following Reports:  

•  Inception report; 
•  Six-monthly progress reports/interim and final reports. 

(3) Follow-up on procurement and financial management at programme level: 

•  Monthly or bi-monthly procurement plan meetings for Phare / IPA I, IIIa, IIIb, IIIc and IV  
(including  as  regards  IPA  III  and  IV  the  monitoring  of  the  absorption  capacity  via  an 
update on LOTHAR and assessment of n+3 risk)  

•  bi-monthly or ad hoc consultations on procedural issues (led by the Delegation's Finance & 

Contracts section) 

(4) In addition to the monitoring instruments mentioned above, the Delegation  performs on 
the spot checks/monitoring visits, typically on grants, supply and works contracts. 

Measures to make monitoring of programming and implementation more effective include a 
revision  of  the  Sectoral  Monitoring  sub-Committees  following  the  recommendations  of  the 
Country Programme interim Evaluation. The number of sub-Committees was expanded from 
five to six, and their coverage has been modified in order to harmonise the  workload under 
each  of 
the  following  sectors:  (1)  public 
administration, public finance and public procurement, (2) energy, transport and environment, 
(3) justice, freedom and security, (4) internal market and economy, (5) regional development 
and cohesion policy and (6) agriculture, fisheries, phytosanitary and veterinary policies. 

them.  The  sub-Committees  now  cover 

In-depth monitoring by the Delegation of Croatia's implementation of IPA assistance has been 
complemented  by  the  Croatia  Unit's  supervision  through,  in  particular,  the  TAIB  Sectoral 
Monitoring  Committee  meetings  on  9  June  and  14  December  2010  (combined  with  Phare 
Joint  Monitoring  Committee).  The  IPA  Monitoring  Committee  (comprising  all  five  IPA 
Components) took place on 8 July 2010. These meetings confirmed that Croatia has further 
strengthened  management  and  control  systems  in  the  IPA  operating  structures  and  that  the 
quality of files submitted for ex ante controls has further increased.  

By  carrying  out  monitoring  activities,  the  Delegation  adhered  to  its  Annual  Assurance 
Strategy  2010.  This  included  a  full  coverage  of  ex  ante  controls,  eight  procurement  plan 
meetings  with  the  national  authorities,  participation  in  monthly  PIU  meetings  involving  the 
beneficiaries,  CFCA  and  CODEF  as  well  as  the  Delegation's  on-the-spot  checks  on  45 
contracts worth EUR 19 Million.  

53 

 
 
There  has  been  no  monitoring  of  individual  grant  contracts  under  the  IPA  Component  II, 
since they were not signed until the end of 2010. JMC meetings happened as foreseen in the 
regulatory  framework  (2  meetings  per  programme  -  there  are  5  CBC/transnational 
programmes)  which  were  mainly  involved  in  proposing  the  list  of  proposals  to  which  the 
grants should be awarded. Monitoring at the programme level has not been performed by the 
JMC.  

In terms of achieving results and objectives of the ELARG assistance (IPA component I), the 
final  report  of  the  Country  Programme  Interim  Evaluation  2010  noted  that  performance 
and  results-oriented  management,  promoting  good  practice,  encouraging  motivation  and 
facilitating  institutional  learning,  should  receive  further  attention.  It  noted  promising  signs 
from  the  beneficiary  institutions  that  a  broader  consensus  is  emerging,  aiming  at  a  stronger 
focus  on  the  performance  of  IPA  TAIB  programmes.  Currently  the  management  of 
programmes is still driven more by the need to spend resources and financial compliance, than 
by  a  focus  on  results  achieved.  It  recommended  that  the  remaining  time  for  IPA  in  Croatia 
should  also  be  used  to  bring  results-oriented  management  principles  closer  to  the  Croatian 
stakeholders.  In  this  respect,  a  broader  supportive  programme  environment  promoting  good 
practice, encouraging motivation and facilitating institutional learning has still not sufficiently 
materialised. 

Phare  /  IPA  TAIB  impacts  are  positive  and  significant,  especially  in  the  area  of  institution 
building. There are good immediate legislative and administrative impacts, particularly setting 
up  of  new  institutions,  alignment  of  legislation,  and  strengthening  of  administrative 
capacities.  The  renewed  assistance  was  influential  in  promoting  and  supporting  institutional 
change. The intermediate impact of institutional building projects was observed in efficiently 
working  institutions.  Socio-economic  impact  was  identifiable  with  regard  to  infrastructure 
investments. 

There  has  been  increased  attention  by  the  European  Parliament's  committees  on  Budgets 
(BUDG)  and  on  Budgetary  Control  (CONT),  as  well  as  the  Court  of  Auditors,  to  Croatia's 
performance under IPA and its preparation for future EU funds. Following a visit to Croatia 
by  European  Parliament  committees  in  June  2010,  a  feedback  report  was  established  and 
discussed in relevant Parliamentary committees in November 2010. The findings of the report 
in  connection  to  the  use  of  IPA  funds  were  largely  positive  but  referred  also  to  the  need  to 
strengthen administrative and absorption capacities.  

The  Court  of  Auditors  embarked  in  2010  on  a  performance  audit  on  Croatia  covering  most 
IPA Components and pre-IPA programmes. The audit is focused on assessing to what degree 
EU pre-accession assistance has been effective in preparing Croatia for managing EU funds 
after accession. 

The  objectives  of  the  audit  were  to  determine  whether:  a)  the  Commission  planning  of  EU 
assistance sufficiently addressed the issue of Croatia’s preparedness to manage the increased 
EU funding after accession; b) the EU-funded projects targeted the development of Croatia’s 
capacity to ensure proper management of EU funds. 

The sample of projects audited includes ten pre-IPA (PHARE, CARDS, ISPA and SAPARD) 
and six IPA projects (financed by IPA components I, III and IV). The publication of the report 
is foreseen for early 2012. 

54 

 
 
3.3.2.  CARDS and PHARE  

3.3.2.1.  Sectors with positive results/ Success stories  

Phare 2006 National Programme, project Support for Increasing the Competitiveness and 
Exports  of  Croatian  SMEs,  EUR  2  million.  A  stronger  presence  in  the  EU  single  market 
and  the  global  market  is  both  a  challenge  and  a  huge  opportunity  for  Croatian  companies, 
especially SMEs. The purpose of the project was to increase the competitiveness, productivity 
and volume of exports of Croatian SMEs and to pilot test programmes and procedures under 
IPA,  thus  strengthening  the  capacities  for  the  structural  instruments  that  would  became 
available upon accession.  

24  grants  to  export-oriented  SMEs  were  awarded  in  this  grant  scheme.  The  SMEs 
strengthened  their  export  capacities  in  such  a  way  that  they  opened  new  markets  (50%  of 
SMEs), found new customers (22% of SMEs) and established links with potential customers 
(28 %). Also, many of grant beneficiaries managed to create innovative and more competitive 
products or to improve the overall quality of their products. 

The analysis  of  delivered results of 21 grant beneficiaries which implemented their projects 
indicates  that  they  successfully  implemented  96%  of  planned  activities  and  utilised  82%  of 
the total original contracted amount. 

Regarding  the  impacts  of  this  project,  it  is  important  to  point  out  that  the  majority  of 
companies successfully managed to annul the recession trends and even raised the number of 
employees. Among other impacts, it is necessary to highlight that the productivity level and 
competiveness  of  the  SMEs  on  the  EU  single  market  has  improved  (through  certification, 
introduction  of  new  technologies  etc.).  Moreover,  export  potentials  of  competitive  products 
have  been  extended  and  co-operation  with  partners  from  the  EU  on  new  projects  has  been 
established.  It  is  realistic  to  expect  that  in  the  future  these  companies  could  contribute  to 
raising  the  volume  of  exports  of  Croatian  SMEs.  Also,  the  grant  beneficiaries’  staff  gained 
priceless knowledge on export initiation, export expansion and dealing with foreign markets. 

As added value to this project, it is also necessary to emphasize that many grant beneficiaries 
participated  in  several  conferences  and  workshops  with  the  objective  of  transferring  the 
acquired  knowledge  and  experiences  to  potential  beneficiaries  of  IPA  and  structural 
instruments. 

The  lessons  learnt  from  this  pilot  grant  scheme  mostly  indicate  that  private  companies 
encountered  difficulties  in  the  preparation  of  their  applications  because  they  were 
inexperienced in the area of project preparation and partly due to the lack of support from the 
regional development agencies and relevant advisory services. Also, as a recommendation for 
the implementation of future grant schemes for the SME sector, there is a need to assist the 
grant beneficiaries in the implementation steps and secondary procurement procedures. 

Project  Maritime  Safety  -  Enforcement  of  Administrative  Capacity  -  Monitoring  and 
Management  of  Vessels,  implemented  in  two  phases  in  Phare  2005  and  2006  National 
programmes,  together  EUR  7,475,000.  The  purpose  of  the  project  was  enhancement  of 
administrative  and  technical  efficiency  of  Maritime  Administration  in  monitoring  and 
management  of  vessels,  implementation  of  the  flag  state  and  evaluation  of  the  port  waste 
reception facilities. 

55 

 
 
As a result of these two projects, vessel traffic monitoring and management system covering 
the  East  Adriatic  area  is  now  fully  operational  and  available  to  the  Croatian  maritime 
administration. Its infrastructure backbone is represented the three operational centres and the 
ten radars, which were all supplied and put in operation by this project. That will ensure the 
required level of the safety of navigation and pollution prevention in the East Adriatic area. 

The level of safety of navigation and pollution prevention will be increased through shortened 
response  time  in  case  of  an  emergency  (accidents,  pollutions)  as  well  as  through  real-time 
traffic data processing (particularly in respect of identification of rogue vessels and tracking 
of  non-SOLAS  ships,  recreational  boats  and  yachts).  Data  exchange  system  was 
interconnected with similar systems in neighbouring countries. Data distribution system was 
capable  to  communicate  with  information  systems  of  relevant  data  users  and  providers 
(governmental bodies and agencies, port authorities, etc). 

Cadastre  and  Land  Registry  Reform,  implemented  through  CARDS  2002,  2003  and 
2004 National programmes, together EUR 11,500,000. The main purpose of these projects 
was  development  of  a  Multi-purpose  Spatial  Information  System  aiming  to  achieve  public 
functionality by becoming available via internet and also enabling distribution of data for final 
users.   

As a result of this project, hand kept cadastre and land register records were digitalised and 
saved in a simple and user-friendly data base  for  the  whole  territory  of  Croatia.  A  complex 
application  of  the  Joint  Cadastre  and  Land  Registry  IT  System  was  developed  and  the  data 
integrated,  which  enables  staff  of  cadastre  offices  and  municipal  court  land  registry 
departments to implement more efficient and consistent record keeping of both registers.  

An  internet  one-stop-shop  for  citizens,  public  authority  bodies  and  businessmen  was  put  in 
operation19  (,  enabling  an  easy  and  quick  insight  into  the  registers'  data  as  well  as  the 
submission  of  requests  for  parcelling  out,  sales  and  purchase  of  land.  In  consequence,  the 
Croatian real estate market has become much more efficient and organised, which serves the 
citizens and the economy alike. In the first four years of operation the system has had over 52 
million inquiries.  

3.3.2.2.  Lessons learned  

Key  success  factors  in  Phare  /  IPA  TAIB  interventions  were  thoroughly  conducted  needs’ 
analyses  and  reviews  of  existing  good  practice.  In  the  case  of  legal  harmonisation  and 
institution building it proved to be very helpful to study the Member State experience and to 
get  acquainted  with  their  systems.  Consequently,  CODEF  should  consider  encouraging 
beneficiary  institutions  to  explore  good  practice  more  systematically  at  the  design  stage  of 
interventions. Lessons learnt from previous interventions and programming campaigns could 
be  widely  reported.  Good  practice  should  be  actively  gathered  from  beneficiaries  and 
disseminated during CODEF training seminars. 

Setting  realistic  preconditions  can  improve  implementation  and  performance.  Putting 
preconditions  in  place  makes  sense  where  they  are  directly  related  to  implementation 
requirements,  in  particular  staffing  and  capacity  issues.  However,  conditionality  involving 

19  

www.uredjenazemlja.hr 

56 

 
 
                                                 
overall political decisions or actions represent a risk factor, as they can introduce significant 
delays in the implementation process.  

Twinning  contracts  should  be  prepared  and  twinning  counterparts  mobilised  more 
rapidly.  There  is  still  potential  to  prepare  twinning  contracts  more  quickly  and  to  receive 
feedback  from  the  twinning  country  more  rapidly.  There  was  still  too  often  the  impression 
that  some  beneficiaries  tend  to  leave  the  actual  preparation  to    the  Member  State  partner. 
Equally,  it  sometimes  happens  that  the  selected  Member  State  is  not  so  reactive  to  the 
initiatives  by  the  CFCA  or  beneficiary  institutions,  extending  the  period  of  contract 
preparations. 

Training on horizontal programme is essential, and it needs to continue to be provided and 
the CFCA and CODEF must ensure that training systems become sustainable. CODEF should 
also consider carrying out a training needs analysis in order to assess the demonstrated need 
and  interest  for  conducting  advanced  training  on  programming  for  those  who  already  have 
experience  and  may  want  to  develop  a  higher  level  of  attainment.  The  central  project 
implementation  units  can  give  additional  support  to  sustainable  training  systems  by 
organizing  short  internal  training  courses  to  transfer  knowledge  gained  at  various 
CODEF/CFCA courses. 

Other lessons learnt and recommendations for the future are laid down in the Croatia Country 
Programme Interim Evaluation 2010. 

3.3.2.3.  Management performance 

In  2010  the  Delegation  received  four  final  declarations,  i.e.  for  the  CARDS  2003  National 
Programme, PHARE 2005 Nuclear Safety, PHARE 2005 CBC Croatia – Italy, and PHARE 
2005 Croatia – Slovenia – Hungary.  

Other controls, including implementation of the Delegation's annual assurance strategy 2010, 
were reported in its Annual Management Report of 14 January 2011. 

Table 14: Status of financial assistance at the end of December 2010 (in million EUR) – 
CARDS (PHARE)/TPA annual programmes  

Allocated  Contracted % Contracted Paid  % Paid 

CARDS 2001 
CARDS 2002 
CARDS 2003 
CARDS 2004 
PHARE 2005 
PHARE 2006 
Total 

54.00 
56.00 
59.00 
77.00 
69.52 
60.47 
375.99 

52.62
51.98
56.68
73.12
66.40
57.29
358.09

97.44% 52.62 
92.82% 51.93 
96.07% 56.68 
94.96% 73.12 
95.51% 66.40 
94.74% 56.18 
95.24% 356.93 

97.44% 
92.73% 
96.07% 
94.96% 
95.51% 
92.91% 
94.93% 

3.3.2.4.  Institution Building highlights  

PHARE 2006 National Programme twinning contract Strengthening and Enhancement 
of  the  Croatian  Tax  Administration  IT  Function  to  Achieve  the  EU  Standards  in  the 
VAT Field, EUR 1 Million, implemented in partnership with Austria.  

57 

 
 
  
 
In the EU two information systems are used in the field of taxation – VIES20 and VES21. . 

This project provided technical support to the Croatian Tax Administration (CTA) with regard 
to IT procedures for enhanced VIES and VES and the preparation of operational manuals and 
guidelines  in  the  field  of  VAT.  The  project  provided  also  comprehensive  staff  training  and 
support to public awareness actions towards Croatian businesses operators. 

The overall objective of the project was to meet the obligations of the EU acquis concerning 
Chapter  16  (Taxation)  in  order  to  successfully  implement  the  transposed  legislation.  The 
project followed a previous one where the CTA had been supported in the preparation of its 
internal management structure. The project was linked with a service contract where a private 
consultant  supported  the  CTA  in  developing  the  software  needed  to  run  VIES  and  VES  in 
Croatia in order to be, in future, interconnected with all other IT systems from EU Member 
States. 

The  project  enhanced  the  institutional  capacity  of  CTA  to  manage  VIES  and  VES  systems 
and  increased  its  capacity  to  combat  tax  fraud.  It  also  prepared  operational  manuals  and 
guidelines in the field of VAT (in legal, administrative and procedural spheres), supported the 
harmonization  of  the  Croatian  VAT  law  with  the  EU  legislation  and  contributed  to  the 
implementation of public awareness actions towards Croatian business operators. 

Phare  2006  National  Programme  twinning  contract  Strengthening  the  Enforcement  of 
Intellectual Property Rights, € 1  Million implemented with Denmark.  

The  objective  of  the  project  was  to  strengthen  the  administrative  capacity  of  the  State 
Intellectual Property Office, Ministry of Justice, Ministry of Interior, Customs Administration 
and the State Inspectorate to enhance the enforcement of intellectual and industrial property 
rights. Enforcement of intellectual property rights (IPR) is a relatively new field of criminal 
and  civil  offence  that  might  involve  significant  health  and  safety  risks  for  consumers  and 
society and is very profitable for organised crime.  

Among  various  training  activities  and  tools  for  the  individual  enforcement  bodies,  the 
project also developed a formalised platform for co-operation. This co-operation, on strategic 
and  operational  levels,  started  under  the  project  and  has  continued  ever  since.  The  co-
operation now also involves various other state bodies and the private sector, and it forms an 
integral part of the national IPR strategy.  

3.3.2.5.  Joint Monitoring Committees / Sector Monitoring Sub-Committees  

In  2010  the  Commission,  under  the  initiative  of  the  national  authorities,  carried  out  12 
meetings of the sectoral monitoring sub-committees (twice per sub-Committee, in April and 
October) and one Joint Monitoring Committee (JMC) in December. All the issues requiring 
follow up related to the control environment. 

The first conclusion was related to the quality of follow up of findings arising from the on-
the-spot checks, which in 2010 was not fully satisfactory, and which was the reason for two 

20 

21 

VAT Information Exchange System, which EU Member States use to exchange information regarding 
VAT transactions between business operators and Tax Administrations 
VAT on e-services - an electronic supplied support to EU consumers regarding VAT issues related to 
non-EU businesses 

58 

 
 
                                                 
Senior Programme Officers to have been invited to the Joint Monitoring Committee to report 
on the follow up in person. It was also concluded that joint on-the-spot checks between the 
CFCA  and  EUD  could  be  organised  in  2011  whenever  possible.  That  will  give  to  the  EU 
Delegation  the  opportunity  to  monitor  on-the-spot  not  only  project  implementation,  but 
monitoring by the implementing body as well. 

There are still some shortcomings in the supervision operated by State Audit Office, acting as 
the  external  audit  body  for  the  DIS  system.  The  Commission  highlighted  the  importance  of 
this problem to the Croatian authorities in the December 2010 JMC and have asked Croatia to 
address  the  issue.  Moreover,  the  Delegation  carried  out  ex  post  audits  before  the  closure  of 
programmes. 

59 

 
 
4. 

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA 

4.1. 

Summary   

EU  financial  assistance  to  the  country  has  played  an  important  role  during  2010  to  further 
support the country on its way towards European integration. Compared to the previous year, 
further  improvements  in  the  programming  exercise  have  been  noticed  as  the  Secretariat  for 
European  Affairs  was  in  a  better  position  to  play  its  coordination  role  and  the  Senior 
Programming Officers became more and more operational. This has to be seen in the context 
of the accreditation for conferral of management powers for Component I, which was granted 
in December 2010. 

At  the  end  of  2010  the  EU  Delegation  was  responsible  for  a  total  budget  of  EUR  113.31 
million,  out  of  which  EUR  35  million  were  committed  during  the  year;  furthermore,  more 
than 114 contracts were ongoing for a total value of EUR 55 million, and 88 contracts were 
closed in 2010 for a total value of EUR10 million. 

A number of completed CARDS and some on-going IPA projects in the areas of justice and 
home  affairs,  public  administration  reform  and  supporting  improvement  of  inter-ethnic 
relations  showed  concrete  results  during  2010.  Several  laws  have  been  adopted  by  the 
Parliament  as  well  as  new  strategies  and  capacity  building  activities  produced  some  good 
impact.  To  mention  some,  the  drafting  of  a  new  law  amending  the  Customs  Code  (further 
aligning  it  with  the  acquis,  amongst  others,  in  the  areas  of  electronic  customs  declarations, 
transit procedure, and customs debt and guarantees) was entirely supported by the IPA 2007. 
A  CARDS  2005  Twinning  project  "Fight  against  Organized  Crime  and  Corruption  Unit  - 
Public Prosecutor's Office" completed in June 2009 contributed substantially to the drafting of 
the  new  Law  on  Criminal  Procedure  which  was  adopted  in  November  2010.  Also,  support 
under IPA 2007 for strengthening the capacity of the General Secretariat of the Government - 
Sector for Policy Analysis and Coordination was crucial for the revision of the 1999 Public 
Administration Reform Strategy, updated in 2010 covering the period 2010-2015. Last but not 
least,  more  than  3000  people  have  been  trained  in  different  subjects,  from  agriculture  to 
internal market, through workshops and study visits under the TAIEX instrument.  

2010 also saw the preparation of the new Multiannual Indicative Planning Document (MIPD- 
2011-2013).  The  beneficiary,  Member  States  and  other  donors  were  actively  involved  and 
welcomed  the  identified  choice  of  sectors.  Overall,  there  was  good  progress  in  the 
programming  of  EU  funds,  while  there  are  still  remaining  challenges  concerning  the 
implementation,  monitoring  and  sustainability  of  projects,  particularly  under  decentralised 
management  

4.2. 

Strategic planning and programming  

4.2.1.  Multi-annual Indicative Planning Document  

The  process  of  drafting  a  new  MIPD  started  in  summer  2010,  shifting  from  centralised 
planning towards more inclusive and decentralised planning  where the beneficiary was asked 
to provide the first choice of priorities and sectors for the new 2011-2013 MIPD. Guidance on 
the content and structure of the new document, as well as the timeline, was provided by the 
Commission  services.    The  draft  followed  the  broad  policy  objective  of  moving  towards  a 
sector-based  approach  engaging  the  existing  national  Programme  Based  Approach  (PBA) 

60 

 
 
working groups.   

Donor coordination and consultation on the part of DG ELARG and the Delegation took place 
not only at the level of annual and multi-annual programming of IPA but also as regards the 
new  MIPD  2011-2013.  The  skeleton  of  the  draft  document  was  presented  to  the  donor 
community and civil society in coordination meetings held in Skopje and in Brussels in the 
course of 2010. Furthermore, IFIs, Member States and civil society organisations were given 
the opportunity to send written comments on the draft MIPD to the Commission. Comments 
were incorporated into the draft MIPD in the most appropriate manner.  

The  following  priorities  for  EU  support  over  the  period  2011-2013  were  identified:  support 
for  the  economic  and  social  development  of  the  country,  improvement  in  good  governance 
and reduction in corruption; and ensuring non-discrimination and respect of human rights. In 
order to achieve these objectives, EU financial assistance would be focused on seven sectors: 
public  administration, 
justice,  home  affairs  and  fundamental  rights,  private  sector 
development, agriculture and rural development, transport, environment and climate change, 
and social development.  

When the 2010 programming exercise started, the MIPD 2009-2011 was still being applied. 
The  strategic  choices  were  concentrated  on  three  areas  of  activity,  namely  supporting 
institution  building,  improving  cross-border  cooperation  and  preparing  the  beneficiary  for 
participation  in  the  Union's  cohesion  policy  and  rural  development  instruments.  An 
assessment  of  the  validity  of  the  document  and  the  outlined  priorities  was  conducted  in  the 
beginning of 2010. On the basis of this needs assessment, the Commission concluded that no 
significant  changes  neither  in  national  policies  nor  in  EU-former  Yugoslav  Republic  of 
Macedonia relations would require a different approach to IPA support and that the strategy in 
the MIPD 2009-2011 was valid and matched the gaps identified in the 2009 Progress Report. 
Therefore it was recommended that the MIPD 2009-2011 should not be revised.   

A  more  in-depth  assessment  of  the  strategic  approach  as  regards  IPA  assistance  was 
undertaken in the context of the preparation for the new MIPD 2011-2013. In agreement with 
the national authorities, a stronger linkage to some strategies were to be pursued in the next 
programming  period:  Public  Administration  reform  Strategy  (2010-15),  Strategy  of  the 
Reform  of  the  Criminal  Legislation  (2007-11);  National  Action  Plan  for  implementation  of 
the  Penitentiary  system  reforms  (2009-14);  the  revised  National  Employment  Strategy, 
National  Transport  Strategy  (2007-17),  National  Strategy  for  Agriculture  and  Rural 
Development 2007-2013 and National Strategy for Sustainable Development (2008-30).  

A  Country  Programme  Interim  Evaluation,  published  in  December  2010  covering  the  2006 
CARDS and the 2007 IPA national programmes, outlined a few key recommendations. With 
regards  to  programming  and  intervention  logic,  it  suggested  the  programming  authorities 
should introduce independent ex ante assessment of the Multi-Annual Indicative Programmes 
and  Annual  National  Programmes  to  improve  the  quality  of  programming,  including  the 
improvement  in  definition  of  indicators  and  determination  of  baseline  data.  It  also 
recommended  focusing  external  assistance  on  only  a  few  key  areas,  identified  in  the  sector 
based approach to programming. Furthermore, it recommended a clear but cautious approach 
to  multi-annual  financing  to  facilitate  planning  and  ensure  results  before  more  funds  are 
allocated. The national authorities should also aim  to  replace  long  term  local  administrative 
support  with  permanent  civil  servants  in  those  institutions  that  have  long  term  European 
Union  fund  management  responsibilities.  The  Commission  noted  that  some  of  them  were 
already being implemented.  

61 

 
 
The  evaluation  recommended  that  funding  should  be  directed  so  as  to  support  existing 
ministerial strategic planning efforts, that the SEA should review the administrative capacity 
in  each  PBA  sector  and  address  any  weaknesses  detected,  while  the  development  of  sector 
programmes  should  be  based  on  existing  national  strategic  plans  in  order  to  increase  local 
ownership of the programmes.  

Another  conclusion  was  that  IPA  should  allow  for  greater  flexibility  in  the  allocation  of 
resources  within  the  multi-annual  envelope  according  to  needs,  between  priorities  and 
components, to better reflect the requirements and capacity of the recipient country and adapt 
better to political circumstances as election years. 

Table 1: MIFF22 allocations per component, in million EUR 

Component 
I – Transition Assistance and Institution Building 
II – Cross-border cooperation 
III – Regional Development 
IV – Human Resources Development 
V – Rural Development 
TOTAL 

2010 
36.32
5.07
29.40
8.40
12.50
91.68

2012 
2011 
28.21 
28.80
5.18 
5.12
42.30 
39.30
10.38 
8.80
16.00
19.00 
98.03 105.07 

2010-2012 
93.33
15.37
111.00
27.58
47.50
294.78

4.2.2.  Programming exercise  

4.2.2.1.  Component I  

The  National  Programme  2010  was  the  second  one  to  be  programmed  following  DIS-rules 
(i.e.  implementation  by  the  beneficiary  under  decentralised  management,  with  ex  ante 
controls  by  the  EU  Delegation);  In  order  to  increase  the  ownership  of  the  programming 
process and to reach better efficiency once the priorities were defined, the process of drafting 
the  National  Programme  2010  project  fiches  was  the  sole  responsibility  of  the  final 
beneficiaries.  Still,  it  was  proven  that  a  number  of  institutions  have  limited  capacities  in 
providing  priorities,  objectives  and  results,  thus  the  EU  Delegation  doubled  its  efforts  and 
supported  the  preparations  of  the  2010  programme,  by  creating  working  groups  on  project 
fiche  basis.  This  facilitated  the  drafting  process  and  allowed  for  timely  submission  of  the 
programmed to the IPA Committee for approval.  

The  Government  submitted  the  official  documents  to  the  EU  services  on  15  January  2010. 
The  National  Programme  IPA  2010  -  Component  I  was  adopted  by  the  Commission  on  25 
August 2010.  

The programme covered the following areas/sectors:  

- Priority Axis 1 - Political criteria: the programme envisaged strengthening the organizational 
and institutional capacity of the public administration and the judicial system, with a strong 
focus on prevention and fight against corruption. It further aimed at providing technical and 
material  assistance  to  prioritised  institutions,  including  the  Ministries  of  Justice,  Interior, 
Local  Self  Government,  and  the  Civil  Servants  Agency,  as  well  as  to  foster  civil  society 

22 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

62 

 
 
                                                 
development  and  better  integration  of  minorities.  The  total  IPA  allocation  was  EUR 
14,884,025. 

-  Priority  Axis  2  -  Socio-economic  criteria:  support  to  further  harmonize  the  legislation  and 
improved capacity building in the field of consumer protection. The total IPA allocation was 
EUR 3,780,000. 

- Priority Axis 3 - Ability to assume the obligations of EU membership:  building institutional 
capacity for transposing, implementing and enforcing the acquis. with a focus on employment 
and social affairs, Agriculture, environment, internal market, Customs, and food safety. The 
IPA allocation was EUR 11,470,600. 

- Priority Axis 4 supported the participation of the country in a series of EU Programmes and 
Agencies  which  are  deemed  essential  for  the  country’s  further  cohesion  process.    The  IPA 
allocation was EUR 6,782,430.  

The IPA 2010 Component I programme included 18 project fiches, which were selected based 
on the following criteria: firstly, priorities identified in the MIPD; secondly, interventions in 
most  cases  build  on  clearly  identified  and  well  developed  national  strategies.  However,  in 
some  cases  these  strategies  will  be  updated  and  improved  through  IPA  assistance;  thirdly, 
possible  follow-up  on  previous  and  ongoing  projects.  Finally,  projects  were  screened  with 
regard to the preparedness of intended beneficiaries to receive and manage the support. 

The Programme included 9 full twinning arrangements in areas such as public administration 
reforms,  anticorruption,  freedom  of  movement  of  workers,  veterinary,  public  revenue, 
customs  and  environment.  Furthermore,  8  service  contracts,  7  supply  contracts,  3  work 
contracts, 1 framework contract and 2 calls for proposals (grant schemes) were foreseen.  

Sequencing  was  a  very  important  element.  A  good  example  is  the  support  given  to  the 
Customs  Administration  where,  with  the  consecutive  support  provided  with  2007-2008 
programmes,  and  the  upcoming  2009/2010  projects,  there  was  a  clear  recognition  that 
harmonised customs procedures and their implementation exert a great impact on trade with 
the EU and the international movement of goods across borders.  

Coordination  of  activities  among  donors  was  reinforced  with  the  introduction  of  the 
Programme Based Approach (PBA) by the national authorities in 2009, and major donors are 
part of the High Level working group; however, the process lost some of its previous drive in 
2010  and  its  input  and  relevance  is  yet  to  be  seen,  given  the  fact  that  many  of  the  bilateral 
assistance is phasing out (e.g.: Austria, Sweden). 

The  programming  exercise  2011  was  conducted  during  2010  in  close  consultation  with  the 
national  authorities,  civil  society  and  other  stakeholders  under  the  coordination  of  the  EU 
Delegation  and  DG  Enlargement.  Two  sets  of  consultations  were  organised  with  Member 
States,  IFIs,  other  donors  and  civil  society  organisations  (CSOs)  in  July  2010  when  the 
projects  were  on  the  level  of  ideas,  and  in  December  2010  when  the  project  fiches  were 
finalised.  In  both  cases,  input  was  received  from  the  UK  and  Dutch  Embassies  in  Skopje. 
Extensive  comments  were  received  also  from  CSOs  in  July  when  the  project  ideas  were 
discussed and most all of them were taken into account when preparing the first versions of 
the fiches.  

63 

 
 
Particular  attention  was  given  to  complementarity  with  projects  financed  under  the  Multi-
Beneficiary IPA programmes and managed by the European Commission, which are linked to 
sectors such as justice, social issues, statistics, environment and refugees.  

Achieving better results through better design and implementation of financial assistance is a 
key  target  for  the  Commission,  even  more  since  conferral  of  management  powers  for 
decentralised implementation of IPA Component I was granted on 13 December 2010. 

Table  2:  Indicative  financial  allocations  for  the  year  2010  per  component,  in  million 
EUR  

THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
I. Transition Assistance and Institution Building* 
Of which: 

                                                                                  National Programme 

II. Cross-Border Cooperation* 
Of which:                     

                                                              CBC  with Albania 
                                                                                   CBC with Bulgaria 
                                                                                   CBC with Greece  
CBC with Kosovo 

III. Regional Development 
Of which: 

2010 

36.91

36.91
4.47

1.00
1.37
1.50
0.60
29.40

IV. Human Resources Development 
V. Rural Development 
TOTAL 
* The difference with Table 1 is explained by a transfer of EUR 0,6 million. from Component II (cross-border 
programme with Serbia, not programmed yet) to the National Programme  

Transport 
Environment 
TA 

19.61
8.51
1.26
8.40
12.50
91.68

64 

 
 
 
Table 3: Indicative financial allocations for the year 2010 under the  National Programme, per 
priority axis and per project, in million EUR  

Priority Axis/Projects 
Political Criteria  

Support  to  institutions  in  implementation  of  policies  relevant  to  non-
majority communities 
Further  support  to  judiciary  and  promotion  of  probation  service  and 
alternative sanctioning 
Further Institution and Capacity Building of the Police Service in the area 
of border management, Union policing and fight against organised crime 
Revitalisation  and  Adaptation  of  Shengjul  (Gjulshen)  Hamam  into  a 
Cultural-Info Centre 
Further strengthening of the organisational and institutional capacities for 
the accession negotiation process  
Sustainable civil society 
Support to efficient prevention and fight against corruption 
Technical assistance to institutions in charge of implementation of the civil 
service and public administration reform 

Economic Criteria  

Capacity  building  to  institutions  involved  in  implementation  of  the 
Industrial Policy 
Legal  harmonisation  and  capacity  building  in  the  field  of  consumer 
protection 

Ability to assume the obligations of membership 

Strengthening the capacities for effective implementation of the acquis in 
the field of freedom of movement for workers 
Further  Harmonisation  with  EU  acquis  in  field  of  Movement  of  Capital 
and Payments and Financial Services 
Strengthening of administrative and institutional capacity of the competent 
authorities regarding food safety, veterinary and phytosanitary policy 
Improving of the Public Revenue Office (PRO) Tax Payers Services 
Strengthening  the  administrative  capacities  at  central  and  local  level  for 
implementation and enforcement of the environmental acquis 
Strengthening the capacity of the Customs Administration 

Supporting programmes  

Participation in Union Programmes and Agencies 
Preparatory  Measures  for  Participation  in  Lifelong  Learning  (LLP)  and 
Youth in Action (YiA) Programmes* 

TOTAL 

* Management of this project was cross-delegated to DG Education and Culture (EAC) 

Budget 
14.80
1.62

3.01

2.51

0.81

1.99

1.42
1.35
2.09

3.87
2.67

1.20

11.46
0.90

1.17

3.64

1.33
2.62

1.80
6.78
4.78
2.00

36 91

4.2.3.  Component II 

Currently, the former Yugoslav Republic of Macedonia participates in four IPA cross-border 
programmes  with  the  neighboring  countries  Albania,  Bulgaria,  Greece  as  well  as  in  the 
transnational South-East Europe programme.  

Besides, a new multiannual Cross–border programme between the former Yugoslav Republic 
of  Macedonia  and  Kosovo  was  prepared  and  submitted  by  the  authorities  to  the  European 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commission  in  May  2010.  It  was  formally  adopted  by  the  Commission  in  December  2010. 
Economic and social development and promotion of natural and cultural resources were identified 
as  priorities  for  the  period  2010-2013.  As  regards  the  2010  funds  in  particular,  a  strategic 
project  (border-crossing  infrastructure)  was  jointly  chosen  by  both  parties  and  tender(s) 
should be launched during the third quarter of 2011.  

The  cross–border  cooperation  programme  2007–2013  with  Albania,  was  originally  adopted 
by  the  Commission  in  December  2007  with  financial  tables  covering  the  2007–2009  period 
only;  at  the  initiative  of  the  Commission,  this  was  revised  to  add  the  2010–2011 
appropriations  in  line  with  the  IPA  Multi–annual  Indicative  Financial  Framework  (MIFF) 
2010–2012. The revised Commission Decision was adopted in October 2010. 

Finally, the Financing agreements for the year 2009 corresponding to the CBC programmes 
with Albania and with Greece, both adopted in August 2009, were signed in December 2010.  

4.2.3.1.  Components III, IV and V 

Component  III  and  IV  Operational  Programmes,  which  were  adopted  in  2007  covering  a 
seven year period, were revised in 2010, and discussions  for the revision of. Component V 
Operational Programme started.   

As  regards  the  Regional  Development  Operational  Programme  under  Component  III,  the 
modification  approved  in  November  2010  concerned  mainly  the  financial  tables,  indicators 
and increased IPA contribution rate23, thus the revisions did not imply changes in the strategy 
and priorities.  

Concerning  the  revision  of  Human  Resources  Development  Operational  Programme  under 
Component  IV,  financial  allocations  for  the  years  2010  and  2011  were  included,  increasing 
the  overall  total  of  IPA  component  IV  contribution  to  more  than  EUR  24  million  for  four 
years. 

4.3. 

Implementation of assistance  

4.3.1. 

IPA 

4.3.1.1.  Success stories  

In the framework of the professionalization of the public administration it is worth mentioning 
a project that ran from October 2009 to February 2011  to support the implementation of the 
National  System  for  Training  Coordination.  Among  the  results  already  achieved:  training 
needs analysis carried out for the Civil Service Agency (CSA), course material developed for 
the  training  council  on  the  National  System  for  Training  Civil  Servants,  and  new  curricula 
developed  for  different  modules  developed  for  CSA  general  staff,  Training  Unit  and  HR 
Management Unit. 

23 

Pursuant  to  the  amendments  introduced  by  Commission  Regulation  (EU)  No  80/2010  of  28  January 
2010  amending  Regulation  (EC)  No  718/2007  implementing  Council  Regulation  (EC)  No  1085/2006 
2006 establishing an instrument for pre-accession assistance (IPA) the co-financing rate in IPA regional 
development programmes is increased to 85% 

66 

 
 
                                                 
Some  good  results  were  achieved  in  further  aligning  the  legislation  with  the  Acquis  in  the 
customs sector, through a Technical Assistance project (EUR 999,900).  With IPA support, a 
thorough  assessment  of  the  situation  in  the  field  of  customs  legislation  was  done  in  2010, 
resulting  in  an  accurate  gap  analysis,  by  comparing  in  detail  the  current  status  with  the 
requirements  of  the  Community  Customs  Code  and  its  implementing  regulations.  A  study 
visit  to  Finland  was  organised  in  June  2010  and  to  the  Czech  Republic  in  December  2010. 
The  project  was  highly  relevant  as  it  addressed  the  most  urgent  priorities  in  the  area  of 
customs as stated in the National Programme for the Adoption of the Acquis (NPAA) and the 
Accession Partnership, as well as in the Customs Administration’s (MCA) Strategic Plan. The 
impact prospects of this project were significant. Legal and procedural basis were created for 
electronic transit, export and import, including newly established security measures, allowing 
for electronic communications between customs and traders.  

In  the  reporting  period,  the  Ministry  of  Environment  and  Physical  Planning  (MEPP) 
successfully  continued  using  TAIEX 
legal  and 
implementation aspects of relevant EU directives in the area of environment. Several seminars 
and  workshops  were  organized  and  all  of  them  were  considered  useful.  In  particular,  the 
following two workshops were considered as very successful: 

technical  assistance  regarding 

the 

1)  A  TAIEX  workshop  on  the  legal  requirements  and  implementation  of  the  Directive  on 
batteries,  accumulators  and  waste  batteries  took  place  in  Skopje  (May  2010)  and 
representatives of MEPP, other ministries and institutions, NGOs, Economic Chamber, public 
enterprises  and  private  companies  participated.  It  was  a  great  opportunity  for  sharing 
experiences  regarding  the  legal  requirements  and  the  implementation  of  the  EU  Directive 
2006/66/EC with EU Member State representatives. This workshop contributed in such a way 
that the gained knowledge was reflected in the national Law on Management of Batteries and 
Accumulators,  Waste  Batteries  and  Accumulators  adopted  in  October  2010  which  also 
transposed provision from the EU Directive 2006/66/EC. 

2) A workshop on the EU Directive on Noise was held in Skopje in June 2010. This workshop 
was  attended  by  representatives  of  several  ministries,  scientific  and  educational  institutions 
and  NGOs  and  it  was  a  good  opportunity  for  sharing  experiences  regarding  the  legal 
requirements  and  the  implementation  of  the  basic  EU  Directive  2002/49/EC  on  noise 
protection  in  environment.  The  knowledge  gained  from  this  seminar  contributed  in  the 
preparation  on  several  sub  laws  regarding  strategic  noise  maps  and  plans,  as  well  as  action 
plans.  By  these  sub-laws,  adopted  in  2010,  Directive  2002/49/EC  became  fully  transposed 
into national legislation. 

4.3.1.2.  Overview of IPA implementation in 2010 

The year 2010 has seen several major achievements under operational aspects: 

•  The contracting of all outstanding projects under IPA 2007- Component I; 
•  The conferral of management for decentralised management (DIS) of Component I to the 
national  authorities  granted  in  December  2010;  followed  by  the  signature  of  IPA 
Component I 2009 Financing agreement; 

•  Payment of a first pre-financing request under DIS for Component I (EUR 16,30 million) 

processed by EU services on 27 December 2010; 

•  Payment of the first direct grant to the Employment State Agency in the frame of measure 
1.3  of  the  Operational  programme  for  Component  IV,  the  flagship  measure  to  address 
unemployment issues; 

67 

 
 
•  New CBC programme between the former Yugoslav Republic of Macedonia and Kosovo 

was adopted in December 2010; 

•  Two calls for proposals under the IPARD Programme were opened in 2010, and in total 
more  than  200  applications  received,  which  demonstrated  high  interest  in  IPARD 
assistance 

The  Delegation  managed  to  contract  the  last  outstanding  Component  I  2007  project 
(Municipal  Infrastructure)  within  the  extended  deadline  (November  2010).  By  this,  all 
projects  foreseen  in  the  2007  Financing  Agreement/Project  Fiches  were  contracted  as 
planned, before end of contracting deadline 19 May 2010.  Due to savings in the procurement 
process,  more  than  90%  of  funds  were  committed.  Furthermore,  IPA  2008,  Component  I 
contracting rate by 31 December 2010 reached 64%.  

Since the IPA Component I Financing Agreement 2009 was only signed in December 2010 
there  was  virtually  no  contracting  in  2010.  Given  the  fact  that  this  programme  will  be 
implemented under DIS by the Central Financing and Contracting Department in the Ministry 
of  Finance,  efforts  were  made  to  assist  the  national  authorities  in  preparation  of  project 
documents  and  proper  procurement  plan,  and  close  follow  up  of  the  medium  term  risks 
identified with the Conferral decision. 

Component I: Transition Assistance and Institution Building  

Overall,  the  relevance  of  EU  assistance  was  largely  satisfactory  and  implementation  under 
IPA  Component  I  particularly  satisfactory  in  2010.  However,  building  on  the  experience 
gained from programming and implementing EU funds in the country, project implementation 
was still regularly hampered by either insufficient staff or financial resources.  

Stronger  conditionalities  were  defined  in  the  2010  project  fiches,  especially  as  regards  the 
tasks of the beneficiary. Very often the beneficiary institutions had difficulties in fulfilling the 
following: 

1)  Endorsement by all key stakeholders of the terms of reference, where there was more then 

one beneficiary;  

2)  Allocation of working space and facilities by the beneficiary for technical assistance before 

the launch of tenders; 

3)  Arrangement of all legal procedures to allow construction, refurbishment activities before 

the launch of tenders; 

4)  Appointing and permitting the relevant staff by the beneficiaries to participate in training 

activities as per work plans; 

Furthermore, in 2010 the preparatory measures for the Lifelong Learning and Youth in Action 
Programmes (for which funds have been allocated under IPA 2007, IPA 2009 and IPA 2010) 
were suspended due to irregularities and serious deficiencies in the financial management and 
control system in the country  

Strong commitment from senior management and various final beneficiaries remained crucial 
for the overall implementation of the project activities. 

68 

 
 
 
 
 
Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme 

Committed 

Contracted  % Contracted 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

34.02 
37.12 
37.06 
36.91 
145.11 

30.71
19.13
0
0
49.84

90.27%
51.54%
0%
0%
34.35%

Paid  % Paid 
18.76 
6.23 
0 
0 
24.99 

55.14%
16.78%
0%
0%
17.22%

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

% of 2007-2010 allocations 

Political criteria 

(of which civil society)

Economic criteria 
Ability to assume membership obligations 
Support programmes 
TOTAL 

31%
3%
15%
40%
14%
100%

During the reporting period, the Delegation conducted 50 evaluations/short-listings, 3 Call for 
Proposals,  plus  15  smaller  evaluations  for  Framework  Contracts  and  4  Direct  Grants.  This 
was  an  average  of  1.4  evaluations/short-listings  per  week  or  6  evaluations/short-listings  per 
month,  so  22%  above  the  average  figures  in  2009.    101  contracts  were  signed  including  15 
Framework  contracts.  This  contracting  is  higher  than  the  figure  of  2009  (64).  The  value  of 
contracts  follow  the  same  trend,  as  all  contracted  in  2010  represents  more  than  twice  the 
amount of 2009 (EUR 35.5 million versus EUR 16.9 million). 

The  Twinning  instrument  was  used  successfully  in  many  priority  areas  and  helped  the 
country  to  further  prepare  for  the  implementation  of  EU  policies.  Up  to  now  a  total  of  15 
fully-fledged twinning projects for a total amount of around EUR 17 million and 3 twinning 
light projects amounting to around EUR 600,000 have been programmed under IPA. 

Of  these,  there  were  five  projects  under  implementation  in  2010,  financed  under  IPA  2007 
and  2008,  with  a  total  budget  amounting  to  EUR  10,699,534:  Institutional  Strengthening  of 
the Energy Regulatory Commission; Support on the preparation of the country to manage the 
European  Social  Fund;  Support  to  the  National  Employment  Policy;  Modernisation  the 
educational  and  training  system;  Strengthening  the  central  and  local  level  capacities  for 
environmental management in the area of air quality; and Support for capacity building of the 
Centre  for  Adult  Education  and  Development  of  programme    for  Adult  Education  and 
programme for literacy and fulfilment of elementary education for exclude persons. 

Institution/capacity building activity under the TAIEX instrument was intense, particularly 
in the fields of agriculture, internal market and justice and home affairs, as can be seen from 
the tables bellow.  There were 184 single country events organised and 3600 participants from 
the former Yugoslav Republic of Macedonia attended TAIEX events in 2010. 

As for participation in Union Programmes, in the course of 2010 the following entry tickets 
were committed: Culture 2009, 2010 and 2011; PROGRESS 2010; Europe for Citizens 2010 

69 

 
 
 
and 2011; CIP24 – EIP 2010 and 2011, FP7 2010 and 2011, Fiscalis 2013, and Customs 2013. 
The interest is very high as it is another way for the country to get closer to EU activities and 
work in different specific fields related to EU policies (research for small and medium sized 
enterprises;  Taxation  and  Customs  Training  Interactive  Campus;  e  pilot  and  market 
replication projects; fight against social exclusion; Information  Society, etc) already together 
with Member States.  

As an example, two projects supported in the former Yugoslav Republic of Macedonia under 
the PROGRESS programme in 2010: the first one named “Open Dialogue on social inclusion 
through  youth  employment  and  youth  labour  rights"  implemented  by  the  Balkan  Children 
Youth  Foundation  in  partnership  with  Federation  of  the  Trade  Unions.  And  the  second  one 
"Introducing  indicators  for  measuring  discrimination  at  local  level  (through  information, 
education and measuring indicators) by the Helsinki Committee for Human Rights.  

Component II: Cross-border Cooperation  

Overall, implementation of the four on-going cross-border programmes in which the country 
participates was not easy in 2010. Long delays in setting the joint management structures and 
lengthy evaluation of applications led to increased risk of losing some funds in 2011.  

The  second  call  of  the  programme  former  Yugoslav  Republic  of  Macedonia-Albania, 
including part of 2007 and all 2008 appropriations (EUR 3.5 million), was launched in April 
2010; more than 80 applications were received and the evaluation was just starting at the end 
of the year. In November 2010 the EU Delegation warned the national authorities about the 
high risk of losing more than one million Euro of IPA funds 2007 unless a revised proposal 
for  the  composition  of  the  Joint  Steering  (evaluation)  Committee  was  immediately  sent  for 
endorsement, allowing in that way the immediate start of the evaluation and a timely signature 
of grant contracts next year.  

The  first  Call  for  proposals  under  the  programme  the  former  Yugoslav  Republic  of 
Macedonia-Greece  was  finally  launched  in  July  and  closed  in  November  2010;  the  high 
expectations were confirmed by the 133 project proposals received. 

As  the  regional  South  East  Europe  Transnational  Programme  is  concerned,  the  selection  of 
the projects for the 2nd call for proposal (2008 and 2009 IPA funds up to EUR 1,015 million) 
was completed in December 2010.   

Tables 6: Status of implementation of IPA financial assistance (Component II) as at 31st 
December 2010 (in million EUR) per annual programme25  

IPA 2007-2010 

Committed 
17.09

Paid 

% Paid 

1.87

10.94 

Out of which, the breakdown for the intra-Western Balkans CBC Programmes and the ERDF 
Transnational Programmes (South-East Europe and Mediterranean) is26: 

24 

25  
26  

CIP has three sub-programmes: 1. Entrepreneurship and Innovation Programme (EIP), 2. Information 
and Communication Technology Programme (ICT) and 3. Intelligent Energy Europe Programme (IEE). 
Participation in EIP in 2007 and 2008 was co-financed with CARDS funds, whereas participation in the 
other two sub-programmes was co-financed with IPA funds. 
Figures include the CBC Programmes with Bulgaria, under shared management 
Figures include also the CBC Programme with Greece, which is not under shared management 

70 

 
 
 
                                                 
IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

Committed  Contracted  % Contracted  Paid 
0.27
0
0
0
0.27

7.85%%
0%
0%
0%
2.17%

3.44 
2.85 
3.03 
3.10 
12.42 

0.22 
0 
0 
0 
0.22 

% Paid 

6.40%
0%
0%
0%
1.77%

Table 7: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

CBC with Member States 
CBC within Western Balkans 
Participation to ERDF Transnational Programmes 
TOTAL 

% of 2007-2010 allocations  
64%
26%
10%
100%

Component III  

Programming under IPA Component III is multi-annual (2007-2013) and sector-based. Due to 
this approach and the long lifecycle of mostly infrastructure projects, operational programmes 
under  Component  III  typically  do  not  register  financial  implementation  in  the  first  years. 
Additionally,  eligibility  of  expenditure  starts  only  after  the  completion  of  a  rigorous 
accreditation  procedure  designed  to  establish  efficient  and  reliable  managing  and  control 
systems in the beneficiary countries. Due to this accreditation procedure, the start of eligibility 
period for expenditure in the country was July 2009.  

Since the conferral of management powers, implementation has unfortunately been very slow 
and the risk of losing funds through de-commitment (at the end of 2011) was very high at the 
end  of  2010,  due  to  the  fact  that  the  greatest  share  of  the  allocations  is  earmarked  for  the 
completion of the Corridor X motorway, which the Commission has, in principle, agreed to 
co-finance and allocate EUR 45 million.  

The  preparation  of  the  two  major  projects  in  the  operational  programme  (completion  of 
Corridor  X  motorway  and  Prilep  wastewater  treatment  plant)  was  considerably  delayed  in 
2010. Finally, another reason for the high risk of losing funds was the insufficiently mature 
project pipeline in the environment sector. 

Table 8: Status of implementation of IPA financial assistance (Component III) as at 31st 
December 2010 (in million EUR)  

IPA 2007-201027 

69.90

12.15

17.4 % 

Committed 

Paid 

% Paid 

27  

to  Commission  decision  C(2007)5721  Operational  Programme 

(OP)  "Regional 
According 
Development"  comprised  allocations  2007-2009  (EUR  40.5  million)  whereas  modifying  decision 
C(2010)7569 extended allocations 2010-1011 to the same OP, bringing total commitments to EUR 109. 
2 million 

71 

 
 
 
 
 
 
 
 
 
 
                                                 
Table 9: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes28 

% of 2007-2009 allocations 

Transport 
Environment 
Technical assistance 
TOTAL 

Component IV  

61.0% 
34.2% 
4.8% 
100% 

The  country  received  conferral  of  management  powers  for  this  IPA  Component  in  October 
2009.  The  signature  in  November  2010  of  the  direct  grant  to  Employment  State  Agency 
(ESA) was the first concrete achievement and an important milestone for the implementation 
of  the  multi-annual  Operational  Programme  for  Human  resources  Development  (OPHRD) 
under IPA IV component. This direct grant to ESA (for an amount of EUR 1.3 million) was 
made  in  the  frame  of  measure  1.3  in  the  OPHRD,  the  flagship  measure  to  address 
unemployment issues. This meant also the starting point for a series of direct grants to ESA 
which  would  allow  for  a  close  link  in  between  IPA  funding  and  Active  Labour  Market 
Policies' schemes, as the main policy tool to tackle unemployment in the country. 

To  speed-up  procurement  the  administrative  capacity  of  IPA  units  in  the  Line  Ministries 
(Ministry  of  Labour  &  Social  Policy  and  Ministry  of  Education  and  Science)  would  be 
reinforced with the contribution of the expertise to be provided by several twinning projects. 
The  first  twinning  contract  for  "Support  to  the  capacity  building  of  the  Centre  for  Adult 
Education and development of programmes for adult education and programmes for literacy 
and fulfilment of elementary education for excluded persons" was signed in December 2010 
with the Finnish administration. 

Table  10:  Status  of  implementation  of  IPA  financial  assistance  (Component  IV)  as  at 
31st December 2010 (in million EUR)  

IPA 2007-2010 

24.70

4.89

20% 

Committed 

Paid 

% Paid 

Table 11: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Employment 
Social inclusion 
Human capital and employability 
Technical assistance 
TOTAL 

% of 2007-2009 allocations 
42% 
30% 
20% 
8% 
100% 

28 

The  Operational  Programme  Regional  Development,"  has  4  axes,  of  which  two  are  dedicated  to 
transport, one to environment, and one to TA. So the entries above for transport show the total of the 
two  transport  axes.  The  amounts  shown  are  those  determined  by  modifying  Decision  C(2010)7569, 
which, however, includes the 2010 and 2011 allocations as well. 

72 

 
 
 
 
 
 
                                                 
Component V  

The  former  Yugoslav  Republic  of  Macedonia  received  conferral  of  management  powers 
under  IPA  Component  V  for  three  measures  (101  "Investments  in  agriculture  holdings  to 
restructure  and  to  upgrade  to  EU  standards",  103  "Investments  in  the  processing  and 
marketing  of  agricultural  and  fishery  products  to  restructure  these  activities  and  to  upgrade 
them  to  EU  standards"  and  302  "  Diversification  and  development  of  rural  economic 
activities")  in  December  2009.  Therefore,  effective  programme  implementation  could  only 
start in 2010. 

The  Financial  Agreement  (FA)  for  this  Component  was  signed  on  19  February  2010  for  an 
amount  of  EUR  31.5  million,  covering  the  period  2007-2010.  The  first  call  for  applications 
under  IPARD  was  announced  in  December  2009,  immediately  after  the  conferral  of 
management was granted. During the call 133 applications were received, demonstrating high 
interest in the IPARD Programme. However, the analysis of the applications done afterwards 
revealed that only 27 of those were eligible. One of the problems was that the bodies/services 
responsible for issuing compliance certificates could not issue them in time or did not issue 
the proper documents, making some applications ineligible. Another was that many buildings 
were  built  illegally  in  the  past  and  could  not  now  be  certified.  Measures  to  overcome  both 
problems  were  taken,  for  example  through  changes  in  the  legal  framework  and  through 
signing memorandums with the technical services responsible for issuing certificates. 

The  majority  of  the  27  projects  finally  contracted  were  under  measures  "Investment  in 
agricultural holdings" and "Investments in processing and marketing". 

In the period September – November 2010 a second call for applications under IPARD was 
organised.  A  total  of  112  applications  were  received.  As  realisation  of  IPARD  projects 
requires some time, no direct payments to beneficiaries were made in 2010. Nevertheless the 
Commission disbursed in 2010 the first part of an advance payment of EUR 2.85 million.  

Although  important  progress  in  the  implementation  of  the  IPARD  Programme  could  be 
observed,  the  late  start  of  activities  as  well  as  the  high  rejection  rate  and  small  value  of 
contracted projects under the Programme in 2010 put at risk the funds allocated for 2007 and 
2008. According to the "n+329" budgetary rule, these funds will have to be de-committed if 
not spent by the end of 2011. An Action Plan, describing the corrective measures to be taken, 
is due to be prepared in 2011 by the NAO at the request of the Commission. 

Table 12: Status of implementation of IPA financial assistance (Component V) as at 31st 
December 2010 (in million EUR)  

IPA 2007-2010 

31.50

2.85

9.05 % 

Committed 

Paid 

% Paid 

29 

As foreseen by Art. 166 (3)(a) of Regulation (EC, Euratom) No 1605/2002 of 25 June 2002. 

73 

 
 
 
 
 
 
 
 
 
 
                                                 
Table 13: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Market efficiency and EU standards 
Agri-environmental measures and Leader 
approach 
Development of rural economy 
Technical assistance 
TOTAL 

% of 2007-2010 allocations 
75% 
3% 

18% 
4% 
100% 

4.3.1.3.  Implementation Modalities and Structures  

Significant  efforts  were  done  during  the  reporting  period  to  ensure  the  readiness  of  all 
national structures to manage IPA funds under decentralised management. 

Indeed,  the  country  took  legislative  measures  to  strengthen  the  accredited  structures  under 
Component I and prepared an Action plan to address the remaining medium risk weaknesses 
identified by the Commission's auditors in the management and control systems. Considerable 
progress  was  evident  in  all  Line  Ministries  and  beneficiary  institutions  regarding  staffing, 
organisational set up of IPA Units, continuous training and awareness rising regarding IPA.  

A full re-assessment by NAO of the readiness of bodies constituting the Operating Structures 
for  IPA  Component  I  took  place,  based  on  the  recommendations  received  from  the 
Commission.  Furthermore, separate laws on State Audit Office and on IPA Audit Authority 
were  prepared,  incorporating  all  relevant  comments  from  the  European  Commission.  This 
Law,  that  provides  for  the  independence  of  the  Audit  Authority  from  all  actors  in  the 
management  and  control  system,  was  approved  in  May  2010.  Also,  all  necessary  additional 
employments for key positions were realized as planned in the Recruitment Plans for 2010. 

In  December  2010,  management  powers  were  finally  granted  to  the  former  Yugoslav 
Republic  of  Macedonia  for  IPA  Component  I,  followed  by  the  signing  of  the  financing 
agreement concerning the National Programme 2009. 

However,  implementation  of  Components  III,  IV  and  V  for  2007  and  2008  funds,  under 
decentralised  management,  was  still  slow  one  year  after  the  respective  conferral  of 
managament  decisions,  and  progress  under  Component  II,  only  one  left  under  centralised 
management, was also limited. 

4.3.1.4.  Monitoring    

Regarding monitoring activities under centralised management, in addition to the ‘shadow’30 
Sectoral Monitoring Committee for Component I held in October in Skopje, and consequently 
a ‘shadow’ Joint Monitoring Committee which took place, as the year before, in December in 
Skopje,  the  Commission  undertook  many  actions  to  monitor  the  programmes  concerned 
during 2010.  

30 

"Shadow"  Sectoral  and  Joint  Monitoring  Committees  were  held  for  IPA  Component  I  because  the 
conferral of management powers for this component was not granted to the national authorities until 13 
December 2010.   

74 

 
 
 
 
                                                 
The EU Delegation conducted monitoring of the ongoing projects on regular quarterly basis in 
the  form  of  Project  Review  meetings  where  different  operational  and  financial  issues  were 
discussed. Besides the monitoring done by the  competent Sectoral committees and the Joint 
IPA  Monitoring  Committee,  a  number  of  projects  under  IPA  2007-Component  I  were 
included in the Result Oriented Monitoring (ROM) which operated on a multi-country basis. 
This tool complemented the internal monitoring activities carried out by the Delegation under 
various  forms  (regular  reporting,  steering  committee  meetings,  project  implementation 
reviews).  

The  Delegation,  as  contracting  authority,  developed  a  draft  monitoring  strategy  for  IPA 
Component  II  under  centralised  management,  a  particularly  challenging  element  given  the 
very  high  number  of  small  projects,  with  a  significant  geographical  dispersion  and  a  great 
thematical  variety.  Annual  monitoring  plans  will  be  elaborated  in  consultation  with  the 
national authorities and implemented as of 2011.  

In addition, following Articles 60, 83 and 84 of the IPA Implementing Regulation, progress in 
the  area  of  monitoring  of  the  IPA  Operational  Programmes  was  attained  by  larger 
involvement  of  the  national  structures.  All  Sectoral  Monitoring  Committees  for  IPA 
components  III,  IV  and  V  were  organised  regularly,  including  the  last  'shadow'  Joint 
Monitoring Committee (JMC) held on 3 December 2010. The general conclusions from that 
meeting were the following:  

Design of the programmes and choice of activities to achieve the stated objectives: 

1.  The  project  design  under  all  Operational/National  Programmes  is  relevant  to  the 

priorities of the country as set in the MIPDs.   

2.  Once the implementation is launched under all components, it will be followed with 
interim  evaluations  under  each  of  them,  thus  offering  solid  base  for  drawing 
conclusions  and  recommendations  vis-à-vis  the  design  of  the  programmes  not 
undermining the specific features of the programmes.      

Management and control systems: 

1.  NAO  is  committed  in  maintaining  and  even  more  in  increasing  the  quality  of  the 
management and control systems installed within each OS by providing regular follow 
up  and  reporting  on  mitigating  the  remaining  medium  risks  deriving  from  the 
Commission's Audit Reports to the Government. 

2.  The  accreditation  of  the  DIS  and  the  conferral  of  management  (in  particular  for 
component I) have the highest priority as it is a precondition for the implementation of 
the programmes under the IPA instrument. 

3.  To reinforce and sustain the cooperation between the Operating structures for efficient 
use of the IPA assistance and to follow and implement the principles of “partnership 
and ownership”. 

Sustainability  or  likely  sustainability  of  the  changes  initiated  with  the  assistance  of  the 
programmes: 

1.  The  JMC  calls  upon  sharing  good  practices  identified  in  the  frame  of  sectoral  and 

future sub-sectoral monitoring committees. 

2.  To avoid overlapping with other bilateral and multilateral assistance. 
3.  Where  necessary,  additional  staff  should  be  recruited  quickly  and  available  training 

possibilities used.   

75 

 
 
The status of all recommendations and conclusions would be reviewed during the next JMC, 
to be scheduled in 2011.  

The  monitoring  capacities  within  NIPAC  Office  and  CFCD  in  producing  Annual 
Implementation  Reports  were  weak,  requiring  preparations  for  all  those  committees  to  be 
supported  by  the  Delegation.  31  In  order  to  help  the  structures  in  performing  this  task,  a 
technical  support  was  foreseen  to  give  assistance  to  the  national  structures  involved  in 
implementation of Operational Programmes, monitoring and evaluation. 

4.3.2.  CARDS  

4.3.2.1.  Sectors with positive results/ Success stories  

The  EU  has  provided  substantial  support  under  CARDS  to  the  police  reform,  with  constant 
attention and effort to sustain the momentum in the country during the last years. In order to 
achieve  high-level  guarantees  of  basic  rights,  the  common  minimum  standards  on  physical 
condition of police stations, both the structure of the actual buildings and the facilities, had to 
be fully in line with international human rights standards.   

Namely,  under  CARDS  2005  programme  a  short  term  project  prepared  the  full  design  and 
technical specifications with the objective of full renovation of the police station Kisela Voda 
in Skopje and the police station in Tetovo. The scope of the activities and the selection of the 
stations were carefully and thoroughly done in continuous cooperation with the Beneficiary.  

Furthermore,  under  CARDS  2006  Programme,  a  project  for  a  value  of  EUR  536,311 
upgraded the working conditions at the police station Kisela Voda in Skopje in accordance to 
the EU standards and the national law on police. The construction phase ended in March 2010 
and provisional Acceptance Certificate was issued in April 2010. 

The upgrade of the police stations not only contributed to raising human rights standards in 
the field of detention to European levels but also will significantly help increasing the citizens' 
confidence in the law enforcement agencies. 

4.3.2.2.  Lessons learned   

A  Country  Programme  Interim  Evaluation,  published  in  December  2010  covering  the  2006 
CARDS  and  the  2007  IPA  national  programmes,  outlined  a  few  key  recommendations  and 
conclusions. CARDS 2006 projects were implemented directly by the European Agency for 
Reconstruction  (EAR),  with  internal  project  monitoring  maintained  by  task  managers  to 
ensure that output targets were achieved. National authorities had no formal involvement in 
this  process  but  were  included  to  various  degrees  as  observers  in  the  project  preparation, 
evaluation  and  implementation  process  including  membership  of  steering  committees.  An 
internal evaluation unit was established within the EAR that produced more than 50 sector or 
thematic evaluations.  Knowledge management of these important learning exercises has been 
poor,  with  the  only  source  of  information  being  a  selection  of  executive  summaries  on  the 
webpage of the EAR.   

As  regards  the  impact  and  sustainability  of  CARDS  projects,  greater  emphasis  should  have 
been placed on the identification and development of ownership of both the programme as a 

31  

Annex with dates of SMC for all IPA Components, Findings and recommendations are also included.  

76 

 
 
                                                 
whole by the central authorities and the individual projects by line ministry stakeholders; staff 
turnover  has  undermined  the  sustainability  of  EU-funded  assistance,  as  well  as  the  frequent 
use of external contractors by the beneficiary institutions to complete their tasks, rather than 
completing  the  work  under  the  supervision  of  the  experts.    Nevertheless,  it  should  also  be 
noted  that  in  some  key  sectors  where  substantial  EU  assistance  has  been  provided,  such  as 
customs and police, real institutional change has been achieved 

4.3.2.3.  Management performance   

All contracts have been completed from the operational point of view already in 2009 with the 
exception  of  the  construction  works  of  the  Veterinary  and  Phytosanitary  Border  Inspection 
facilities at the Border Crossing Point of Tabanovce (CARDS 2006- Contract amount: EUR 
1.22 million) - Provisional acceptance certificate expected to be issued in January 2011 (with 
3 months delay); the contract was in defects liability period and the supervisor will still have 
to inspect the works periodically, and when necessary. 

Only a few final invoices and final acceptance certificates are being processed corresponding 
to the CARDS Programmes 2004 and 2005. 

Table 14: Status of financial assistance at the end of December 2010 (in million EUR) – 
CARDS annual programmes32   

CARDS 2001 
CARDS 2002 
CARDS 2003 
CARDS 2004 
CARDS 2005 
CARDS 2006 
Total 

Allocated 
56.64 
34.50 
33.50 
51.00 
37.50 
32.50 
245.64 

Paid 
Contracted  % contracted 
55.48 
97.95%
34.00 
98.55%
32.22 
96.18%
48.62 
95.43%
35.46 
94.72%
92.52%
29.15 
96.06% 234.93 

55.48
34.00
32.22
48.67
35.52
30.07
235.96

% paid 

97.95%
98.55%
96.18%
95.33%
94.56%
89.69%
95.64%

32  

Figures  include  only  Annual  Action  Programmes,  while  not  including  other  programmes  managed 
centrally, such as Customs, or the running costs for the European Agency for Reconstruction 

77 

 
 
  
 
                                                 
5. 

ICELAND 

5.1. 

Summary  

Following Iceland's application for EU membership on 17 July 2009 and the opening of the 
accession  negotiations  on  17  June  2010,  Council  Regulation  1085/2006  establishing  an 
Instrument  for  Pre-Accession  Assistance  (IPA)  was  amended  to  include  Iceland  as  a 
beneficiary country for EU pre-accession assistance. The amended Regulation33 entered into 
force on 14 July 2010. Due to the country's level of economic and social development and its 
substantial  degree  of  alignment  with  the  EU  legislation,  through  the  EEA  Agreement,  IPA 
financial  support  will  be  exclusively  implemented  under  IPA  Component  I  "Transition 
Assistance  and  Institution  Building"  and  via  direct  centralised  management.  IPA  financial 
assistance  to  Iceland  will  be  channelled  through  three  main  tools:  the  Technical  Assistance 
and  Information  Exchange  (TAIEX)  instrument,  multi-beneficiary  programmes  and  a 
National Programme.  

In  2010,  the  preparations  for  the  programming  of  the  first  ever  National  Programme  for 
Iceland  started.  Until  the  finalisation  of  the  programme,  envisaged  in  late  2011,  TAIEX 
instrument and multi-beneficiary programmes are the sole means of pre-accession assistance 
to Iceland. 

The  Framework  Agreement  that  sets  out  the  rules  for  cooperation  concerning  EU  financial 
assistance  to  Iceland  remains  to  be  agreed  between  the  Commission  and  the  Icelandic 
government.  

5.2. 

Strategic planning and programming  

5.2.1.  Multi-annual Indicative Planning Document  

In 2010 there was no financial framework for Iceland who became a candidate country for the 
accession of European Union in the reporting period.  

The  first  Multi-annual  Indicative  Planning  Document  (MIPD),  that  is  the  key  strategic 
planning document for financial  assistance under IPA in Iceland, was prepared during 2010 
and covers the period 2011-2013.  

The overall objective of pre-accession assistance to Iceland is to support the country's efforts 
to fully comply with the accession criteria by the date of accession. More concretely due to 
Iceland's  existing  level  of  alignment  with  EU  law,  IPA  assistance  specifically  targets 
identified institution-related gaps in all chapters of the acquis, with a strong focus on chapters 
not or only partially covered by the European Economic Area Agreement. Particular emphasis 
is  also  paid  to  the  preparations  for  Iceland's  participation  in  common  EU  policies  and 
implementation  of  Structural  Funds  and  other  EU  funds  following  accession.  EU  assistance 
should therefore also support preparations for the implementation of the EU’s cohesion policy 
by introducing strategic planning and management principles which guide the implementation 
of EU structural instruments. 

33 

Regulation (EU) No 540/2010 of the European Parliament and of the Council of 16 June 2010. 

78 

 
 
                                                 
On  this  basis,  two  strategic  objectives  corresponding  to  the  above  mentioned  areas  of 
intervention are identified in the MIPD: i) to further enhance Iceland's ability to assume the 
obligations  of  membership  by  supporting  the  institutional  capacity  building  of  the  Icelandic 
central  and  local  administration  for  acquis  transposition  and  implementation;  and  ii)  to 
in  and 
reinforce  Iceland's 
implementation of Structural Funds34 and other EU funds35. 

institutional  capacity  while  preparing  for  participation 

The identification of the objectives was done in close contact between Commission services 
and  the  Government  of  Iceland.  Close  contact  is  maintained  throughout  the  programming 
exercise to identify the assistance needs the most relevant to the Iceland's accession process. 
The  Commission  Opinion  on  Iceland's  application  for  membership  of  the  European  Union, 
EU Enlargement Strategy, Progress Reports as well as observations of the screening exercise 
will serve as important pillar in these discussions. 

Table 1: MIFF36 allocations per component, in million EUR 

Component 
I-Transition Assistance and Institution Building 
TOTAL 

2010 
N/A
N/A

2011 
10 
10

2012 

12 
12 

2010-2012 
22
22

5.2.2.  Programming exercise 

5.2.2.1.  Component I 

IPA  financial  assistance  to  Iceland  will  be  implemented  under  IPA  Component  I  and 
channelled  through  the  TAIEX  instrument,  multi-beneficiary  programmes  and  National 
Programme.  Whilst  TAIEX  and  multi-beneficiary  programmes  became  open  to  Iceland  in 
2010, programming and implementation of the National Programme could not happen during 
the reporting period.  

Preparations  for  the first, 2011,  National Programme for  Iceland  started in autumn 2010. In 
December  2010  Icelandic  authorities  submitted  50  project  outlines  for  an  estimated  EU 
contribution ca EUR 96 million. The challenge in 2011 is to prioritise the needs to fit to the 
envelope of EUR 10 million..  

5.3. 

Implementation of assistance  

5.3.1. 

IPA 

5.3.1.1.   Success stories 

Until the start of the implementation of the 1st National Programme for Iceland the assistance 
will be mainly provided through TAIEX instrument. In 2010 TAIEX executed 25 events for 
Iceland  beneficiaries.  Namely  expert  missions  but  also  study  visits  and  workshops.  As  an 

34 
35 
36  

European Regional Development Fund (ERDF), European Social Fund (ESF). 

European Agricultural Fund for Rural Development (EAFRD), European Fisheries Fund (EFF). 
Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2010) 
640 of 10.11.2010. 

79 

 
 
 
                                                 
outcome  of  the  7  assessment  missions  conducted  in  autumn  2010,  Iceland's  needs  for 
technical  assistance  were  identified  in  sectors  considered  as  priority  in  the  Commission 
Opinion on Iceland's application for membership of the European Union: regional policy and 
preparation  for  the  implementation  of  structural  funds;  agriculture  and  rural  development; 
customs;  taxation;  financial  services;  food  safety,  veterinary  and  phytosanitary  policy; 
environment. Mapping of needs and required timeline has facilitated the provision of TAIEX 
assistance as well as programming of the National Programme 2011. 

In addition to the elaborated needs assessment TAIEX activities raised awareness among the 
Icelandic administration on the acquis requirement concerning short term business statistics, 
financial  accounts,  NUTS  classification  and  requirements  to  the  institutional  set  up  of 
Structural Funds. 

5.3.1.2.  Overview of IPA implementation in 2010 

Component I: Transition Assistance and Institution Building 

The first National Programme for Iceland will be the National Programme 2011 that will be 
implemented as of 2012, but activities under TAIEX started in 2010. 

TAIEX assistance for the Icelandic administration is performed through a wide range of short 
term institution building activities as well as through medium term assistance based on action 
plans for particular sectors drafted together with Icelandic administration.  

The  needs  for  technical  assistance  are  identified  in  cooperation  with  the  National  IPA 
Coordinator  in  Iceland  (NIPAC)  who  ensures  that  the  applications  correspond  to  the  actual 
needs  of  the  central  administration  and  that  the  offered  assistance  effectively  supports  the 
process of Iceland's preparations for the accession in the European Union.  

In 2010, TAIEX organised, together with Icelandic authorities, 7 scoping missions to assess 
the  needs  for  technical  assistance  in  the  sectors  identified  as  priorities  in  the  Commission 
Opinion on Iceland's application for membership of the European Union: Fisheries, Regional 
policy  and  coordination  of  structural  funds.  Agriculture  and  Rural  Development, 
Environment, Food safety, veterinary and phytosanitary, Customs and Taxation, and Financial 
services  supervision.  The  assessments  resulted  in  action  plans  for  TAIEX  assistance  over  a 
medium-term perspective.   

The first TAIEX applications from Iceland were received in spring 2010 and the short–term 
technical  assistance  activities  have  since  then  been  organised  in  various  fields  including: 
regional  policy, 
judiciary  and  fundamental  rights,  statistics,  agriculture  and  rural 
development.  

5.3.1.3.  Implementation Modalities and Structures  

In August 2010 Iceland appointed a National IPA Coordinator (NIPAC) to ensure the overall 
coordination  and  implementation  of  assistance  under  IPA  including  TAIEX.  The  NIPAC  is 
placed  in  the  Ministry  for  Foreign  Affairs  and  is  assisted  by  a  staff  of  two  people  and  a 
Coordination team formed of representatives of Ministry for Foreign Affairs, Prime Minister's 
Office and Icelandic Mission to the EU. 

80 

 
 
Iceland  faces  difficulties  in  terms  of  administrative  capacity  to  programme  and  implement 
IPA. Icelandic institutions have already gained some experience in participation in European 
programmes through the EEA agreement however setting up and managing EU pre-accession 
assistance  is  a  new  undertaking  requiring  knowledge  on  strategy  development  and  project 
cycle  management.  Secondly,  Iceland  faces  a  problem  of  capacity,  particularly  in  terms  of 
staff  numbers.  As  a  country  of  318  000  habitants,  the  size  of  the  public  administration  is 
small. The size of the ministries ranges from 26 (Ministry of Economic Affairs) to 214 staff 
(Ministry  for  Foreign  Affairs),  with  an  average  size  of  58  staff  members.  Hence  the 
absorption capacity of the country is limited and will provide a challenge during programming 
as well as implementation of national programmes. Thorough thought needs to be put to the 
choice  of  instruments  used  for  providing  the  assistance.  TAIEX,  facilitating  institution 
building  with  a  relatively  short  notice  and  less  demands  on  the  beneficiary,  is  the  most 
suitable in Icelandic circumstances. 

The structures of NIPAC need to be further strengthened to provide support and guidance to 
the Iceland administrations throughout the cycle of IPA support. 

5.3.1.4.  Monitoring    

No monitoring activities took place in 2010.  

81 

 
 
6. 

KOSOVO 

6.1. 

Summary 

The  European  Commission  Liaison  Office  to  Kosovo  (ECLO)  continued  managing  the 
implementation  of  EU  assistance  to  Kosovo.  The  ECLO  managed  to  exceed  its  financial 
targets, both in terms of contracts and payments.  

The preparations of the 2010 IPA Annual Programme (AP) for Kosovo have been completed. 
Programming  of  the  AP  2011  has  started.  Kosovo  has  started  participating  in  IPA  Cross-
Border  Cooperation  (CBC)  programmes.  Preparations  of  the  CBC-programmes  with  the 
former  Yugoslav  Republic  of  Macedonia  and  with  Albania  have  completed  and  both 
programmes  are  ready  for  implementation.  Programming  for  the  CBC  programme  with 
Montenegro has started. 

In  terms  of  projects,  important  successes  include  the  "Vetting  and  the  Re-Appointment  of 
Judges and Prosecutors" and the closing of the Roma Camp in Cesmin Lug. The inclusion of 
the  new  minority  communities  in  the  EURED-project  was  significant  as  well,  since  it 
provides a platform for regional economic development and reconciliation. The pilot projects 
on energy efficiency have demonstrated a significant impact on energy use and the potential 
for reducing energy demand, which is very relevant in the context of Kosovo. In addition, an 
attractive  legal  and  regulatory  framework  has  been  created  for  investment  in  the  energy 
sector. Finally, important groundwork has been done for the preparation of the 2011 census, 
the first census in Kosovo for more than 30 years. 

6.2. 

Strategic planning and programming  

6.2.1.  Multi-annual Indicative Planning Document 

The  purpose  of  the  Multi-annual  Indicative  Planning  Document  (MIPD),  prepared  during 
2010,  is to set out the EU's priorities for assistance to Kosovo for the programming period 
2011-2013.  

The MIPD is based on the needs identified in the European Partnership of Kosovo as well as 
the latest progress report (adopted on 9 November 2010 as part of the Enlargement Package) 
and  with  Kosovo's  own  strategies.  The  Government  of  Kosovo,  local  stakeholders,  EU 
Member States and other donors have all been consulted in the design of this MIPD.  

In  its  Communication  'Kosovo  –  Fulfilling  its  European  Perspective'  of  October  2009,  the 
Commission identified the key priorities for Kosovo to focus on in its EU reform agenda. The 
Communication  confirmed  that  IPA  resources  will  be  targeted  to  support  the  rule  of  law, 
public  administration  reform  and  efforts  to  improve  Kosovo's  business  environment.  It 
confirmed  that  support  for  infrastructure  will  also  be  considered.  It  specified  that  the 
Commission  will  support  the  initiatives  included  in  the  communication's  recommendations 
through  financial  and  technical  assistance.  These  initiatives  envisaged  the  Commission 
moving  forward  in  the  areas  of  visas,  trade,  economic  and  fiscal  surveillance,  EU 
programmes, the Stabilisation and Association process (SAP) Dialogue and cross-border co-
operation. These areas coincide with Kosovo's own European Agenda. 

82 

 
 
 
To  achieve  the  priorities  selected  for  support  in  the  programming  period  2011-2013,  the 
Commission will focus its assistance primarily on the following sectors:  

•  Justice and Home Affairs (focus on visa liberalisation and the judiciary) 
•  Private Sector Development (focus on trade and business environment) 
•  Public Administration Reform (focus on the functional review) 

The overall objective of EU financial assistance to Kosovo is to support its efforts for reform 
and  towards  compliance  with  EU  standards  and  progress  in  the  implementation  of  its 
European reform agenda. 

The Europe 2020 agenda offers the enlargement countries an anchor for reforms. Kosovo is 
invited  to  follow  the  priorities  of  the  strategy  and  adapt  main  challenges  in  the  Kosovo 
context. Enlargement policy also supports the Europe 2020 strategy by extending the internal 
market and enhancing cooperation in areas where cross border cooperation is key. 

Table 1: MIFF37 allocations per component, in million EUR 

Component 
I – Transition Assistance and Institution Building 
II – Cross-border cooperation 
TOTAL 

2010 
64.5
2.8
67.3

2011 
65.8
2.9
68.7

2012 

67.1 
2.9 
70.0 

2010-2012 
197.4
8.6
206.0

6.2.2.  Programming exercise 

6.2.2.1.  Component I 

The 2010 IPA Annual Programme was presented to the IPA Committee on 8 December 2010.   
The Commission Decision was adopted on 17 December 2010. This annual programme was 
prepared  by  the  ECLO  in  close  coordination  with  all  beneficiaries  and  the  Ministry  of 
European  Integration  (MEI).  Close  involvement  of  beneficiaries  is  to  facilitate  project 
implementation.  The  IPA  committee  also  approved  the  two  CBC  programmes  with  Albania 
and the former Yugoslav Republic of Macedonia on 8 December.  

IPA  2010  is  to  support  the  strengthening  the  rule  of  law,  governance,  public  administration 
reform,  communities  and  education.  It  also  addresses  socio-economic  issues,  such  as  public 
finance,  regional  economic  development,  including  infrastructure,  agriculture  and  rural 
development.  The  programme  also  focuses  on  the  approximation  of  the  legislation  and 
European  standards,  including  on  veterinary  and  food  safety,  energy  sector  reform,  and  the 
environment. 

The government has increased its effort in terms of donor coordination and EU Integration in 
general. The Ministry of European Integration was confirmed as the  main IPA coordination 
body in April 2010. 

At the second High Level Forum held on 16 April 2010, the government reported to the donor 
community on progress in the area of donor coordination. The government presented the new 

37  

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

83 

 
 
 
                                                 
donor  coordination  mechanism,  the  establishment  of  sector  and  sub-sector  working  groups 
and the implementation of the Aid Management Platform (AMP).  

The  platform  is  an  initiative  by  all  donors  in  a  joint  effort  to  support  the  government  to 
improve Aid Management and Coordination. The platform aims to: 

- 

- 

- 
- 

facilitate  the  link  between  donor  assistance  and  the  European  Partnership  Action  Plan 
(EPAP);  
improve  the  alignment  of  EPAP  with  the  Medium  Term  Expenditure  Framework 
(MTEF); 
reduce transaction costs in gathering and reporting on donor assistance;  
improve the alignment of donor assistance with the government’s sector wide strategies; 
and 

-  provide  up-to-date  and  publicly  available  information  on  ongoing  and  planned  aid 

activities. 

The  Aid  Management  Platform  was  successfully  launched  by  the  Minister  of  European 
Integration at the end of June 2010.  

During 2010 the ECLO continued involving beneficiary institutions in implementing projects. 
The IPA assistance is currently providing support for the development of monitoring systems. 

Strong  emphasis  is  made  on  coordination  with  all  other  parties  (bilateral  and  multilateral 
donors)  through  the  regular  monthly  coordination  meetings  chaired  by  the  ECLO.  These 
meetings were originally for Member States only but now also include representatives from 
the US, Switzerland, Norway, Japan, the WB, IMF and the UN. EULEX and the International 
Civilian Office also participate.  

The programming of the IPA 2011 programme started in August 2010. It was agreed that the 
MEI take a more active role in the programming process. MEI therefore organised meetings 
with  the  different  beneficiaries  without  much  involvement  of  ECLO.  The  MEI  submitted  a 
draft list of concept notes for projects proposed for inclusion in the 2011 programme before 
end-2010. The ECLO is currently working with the line ministries and MEI in developing the 
project fiches. The intention is to discuss the IPA 2011 programme in the IPA Committee in 
September 2011.  

84 

 
 
 
 
 
 
 
 
 
2010 

66.10

63.90
2.20
1.20

0.60
0.60
67.30

Table 2: Indicative financial allocations38 for the year per component, in million EUR 

KOSOVO 
I. Transition Assistance and Institution Building 
Of which: 

                                                                                  Annual Programme  
Tempus Programme* 

II. Cross-Border Cooperation 
Of which:                     

                                                              CBC Albania – Kosovo 
                     CBC the former Yugoslav Republic of Macedonia - Kosovo 
TOTAL 
* 
2010 programme.  

The  Tempus  Programme  is  coordinated  and  implemented  under  the  relevant  Multi-beneficiary  IPA 

Table  3:  Indicative  financial  allocations  for  the  year  2010  under  the  Annual  Programme,  per 
priority axis and per project, in million EUR 

Transition Assistance and Institution Building 

Priority Axis/Projects 
Political Criteria  

Strengthening the rule of law 
Governance 
Public administration reform 
Communities and education 

Economic Criteria  

Public finance 
Regional economic development 
Agriculture and rural development 

Ability to assume the obligations of membership 

Veterinary and food safety 
Energy sector reform 
Environment 

Supporting programmes  

General technical assistance and ‘Kosovo Communication’ follow-
up facility 

TOTAL 

6.2.2.2.  Components II 

Budget 

24.80
12.30
2.00
5.50
5.00
21.00
1.50
17.50
2.00
12.00
1.50
2.00
8.50
6.10
6.10

63.90

In 2010, the Commission programmed Cross-Border Cooperation programmes for Kosovo for 
the  first  time.  There  is  a  CBC-programme  with  Albania,  and  with  the  former  Yugoslav 
Republic of Macedonia.  

Project Title: Cross-Border Cooperation Programme – Kosovo-Albania 

38  

Allocations  reflect  MIFF  2011-2013  adopted  by  Decision  COM(2010)640  of  10.11.2010.  The 
difference with Table 1 is explained by the fact that in the course of 2010, allocations for Component II 
for 2010 were reduced to EUR 1.2 million, the remaining funds having been transferred to Component 
I. 

85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Value: EUR 1.2 million (programme 2010-2011) 

Description: The overall objective of this Cross-border Programme is promoting cooperation 
between people, communities and institutions in the bordering areas, fostering the sustainable 
development, stability and prosperity of the cross-border region in the interest of the citizens 
of Kosovo and Albania. 

The programme (2010-2011) will be implemented through call for proposals.  

Status: The Financial Agreements are in the process for signature. The Operating Structure is 
working  on  TA  grant  proposal,  staff  recruitment  for  Joint  Technical  Secretariat,  and  has 
appointed members of Joint Monitoring Committee.     

Project Title: Cross-Border Cooperation Programme – Kosovo-former Yugoslav Republic of 
Macedonia  

Value: EUR 1.2 million (programme 2010-2011) 

Description: The overall objective of this cross-border programme is promoting cooperation 
between people, communities and institutions in the bordering areas, fostering the sustainable 
development, stability and prosperity of the cross-border region in the interest of the citizens 
of Kosovo and the former Yugoslav Republic of Macedonia.  

The  programmes  allocation  for  first  year  (2010)  foresees  strategic  project:  border  crossing 
point while second year (2011) will be implemented through call for proposals.  

Status: The Financial Agreements are in the process for signature. The Operating Structure is 
working  on  TA  grant  proposal,  staff  recruitment  for  Joint  Technical  Secretariat,  and  has 
appointed members of Joint Monitoring Committee.     

Remarks: From the former Yugoslav Republic of Macedonia side, the road (in length around 
15  km)  which  leads  to  the  border  crossing  needs  the  reconstruction.  To  date  no  action  has 
been  taken  by  the  authorities  in  this  regard.  Therefore  the  first  year  implementation  of  this 
strategic project (border crossing point) could fail.  

6.3. 

Implementation of assistance  

6.3.1. 

IPA 

6.3.1.1.  Success stories  

Vetting and Re-appointment of Judges and Prosecutors 

Value: EUR 5 million – Instrument for Stability 2007 

The  Independent  Judicial  and  Prosecutorial Commission  (IJPC),  established  for  the  purpose 
of  conducting  a  one-time,  comprehensive,  Kosovo-wide  review  of  the  suitability  of  all 
applicants  for  permanent  appointments  as  judges  and  prosecutors,  managed  the  complex 
process of developing standards for examination of judicial candidates, conducting the exams, 
the vetting, the interviews of the candidates and their final selection. After the completion of 
the  first  appointments  of  judges  and  prosecutors,  some  of  them  were  appointed  to  join  the 
IJPC  as  Kosovo  members  participating  in  the  further  process.  Working  side  by  side  with 

86 

 
 
 
international  members,  the  joining  of  the  Kosovo  colleagues  has  ensured  the  progressive 
taking over of the entire vetting process.  

Some noteworthy aspects of the appointments made during of the appointment process should 
be mentioned: 

•  Seven  completely  new  members  were  appointed  to  the  Supreme  Court  and  five  of 

them were women.  

•  All  ten  positions  in  the  Office  of  the  Special  Prosecutor  were  filled,  including  one 
person  from  a  non-majority  community.  The  new  Deputy  Head  of  the  Special 
Prosecutor’s Office is a woman.  

•  60% of the appointees are new to their positions which marks a major rejuvenation of 

Kosovo’s judiciary and prosecution service.  

•  28% of all appointees were women. 
•  15 positions were filled by candidates with minority background. 

While 72% of all advertised positions were filled, 28% or 127 positions need yet to be filled. 
This  shortfall  resulted  mainly  from  the  lack  of  well-qualified  candidates,  especially  at  the 
municipal  level.  Due  to  the  limited  number  of  minority  applicants,  the  IJPC  appointment 
process only resulted in the appointment of 15 minority candidates, out of approximately 45 
minority positions in total.   

However,  it  is  expected  that  many  of  these  positions  will  be  filled  by  individuals  who  are 
currently  enrolled  in  the  15  months  long  Initial  Legal  Education  Program  conducted  by  the 
Kosovo Judicial Institute. Entry into this program is highly competitive and it is specifically 
designed to prepare successful applicants to serve as judges and prosecutors.  

Promoting energy efficiency  

Value: EUR 3 million – IPA 2008 

The main objective was to provide support on energy efficiency which was initially focused 
on  establishing  the  legal  framework  and  the  national  plan  on  energy  efficiency.  In  the 
subsequent  phase,  the  implementation  of  this  plan  was  supported  through  specific  and 
targeted  measures,  namely:  implementing  demonstration  projects  in  schools  and  hospitals; 
raising  the  public  awareness;  establishing  the  energy  audit  process,  and  promoting  energy 
efficiency  in  Small  and  Medium  Enterprises  (SMEs)  through  a  loan  scheme  with  the 
European Bank for Reconstruction and Development (EBRD). 

Energy  audits  have  been  very  useful  for  the  efficient  management  of  resources  and  the 
protection of environment in general. Specifically the public buildings, business facilities and 
homes are managed in more efficient way and also remarkable financial resources have been 
released  which  could  be  reprogrammed  to  further  develop  the  economy  and  individuals.  A 
strong  impact  will  also  have  the  very  short  pay-back  period  of  the  most  cost-effective 
investment measure used. 

Furthermore the assistance has had an impact at a local government level by improving their 
capacities  to  forecast  expenditures  for  energy  services  in  their  respective  public  buildings 
(public health houses, schools, kindergartens, etc).  

Another  important  result  is  that  an  attractive  legal  and  regulatory  environment  has  been 
created.  This  has  proven  to  be  conducive  for  interesting  International  Financial  Institutions 

87 

 
 
 
(namely EBRD and KfW) to provide funds for both the private and the public sector to invest 
in energy efficiency. EBRD is planning a loan of € 12 million for SMEs, whereas KfW has 
earmarked a loan of EUR 5 million for energy efficiency measures in municipal buildings.  

Return & Reintegration in Kosovo (phase I)  

Value: EUR 3.3 million – IPA 2007 

(For the actual return of Internally Displaced Persons (IDPs) to Kosovo fostering a sustainable 
multi-ethnic society) 

The  IPA  2007  project  which  was  completed  in  November  2010  aimed  at  fostering  and 
consolidating  sustainable  return  of  minority  communities  to  Kosovo  and  is  implemented 
through a grant contract entailing the various aspects of the comprehensive package delivered 
to returnee families. 

Despite  the  important  shortcomings  experienced  with  UNDP  (direct  grant  agreement) 
throughout  the  implementation  of  this  first  phase,  the  success  of  the  approach  has  been 
demonstrated  and  will  be  continued  through  a  phase  II  (ongoing)  under  IPA  2008  and  an 
upcoming phase III under IPA 2010 – both of these phases being implemented following an 
open Call for Proposals. 

Under  this  project,  130  refugee  families  (or  approximately  520  IDPs)  from  minority 
communities have been able to return to their places of origin in Kosovo: these persons have 
been offered a comprehensive package of assistance to allow their sustainable reintegration. 
Through  this  EU-funded  project,  130  dwellings  (including  related  infrastructure)  were 
reconstructed.  Socio-economic  support  measures  were  also  taken  -  among  other  things  -  to 
prepare them for their own income generation (e.g. by providing gardening tools based on a 
family's  agricultural  skills).  Lastly,  community  development  projects  were  implemented 
(mostly relating to basic infrastructure such as improving of the water supply). Consequently, 
this project is directly contributing to create a climate of reconciliation, inter-ethnic tolerance 
and sustainable multi-ethnicity. 

Food Safety Twinning  

Value: EUR 2 million – IPA 2007 

The  overall  objective  of  the  twinning  project  “Meeting  EU  Standards  Food  Safety  & 
Veterinary  Services”  is  to  develop  and  implement  sectoral  policies  and  strategies  that  are 
compatible  with  European  Standards  (including  gender,  minorities  and  environmental 
standards) for Kosovo’s institutions. The project's purpose is to enhance the commercial and 
export  potential  of  the  agro-business  food  chain  in  Kosovo  through  improving  controls  on 
animal health, food safety and quality, in line with EU standards and technical requirements. 

An immediate impact of this twinning project is that the fragmented food control institutions 
(competences  divided  between  the  Ministry  of  Health,  Ministry  of  Agriculture  and  Local 
Government  administration)  were  brought  together  under  one  umbrella,  i.e.  one  single 
institution  –  Kosovo  Food  and  Veterinary  Agency  (KVFA);  at  the  same  time  since  they  all 
operated  under  different  legal  provisions,  as  a  single  institution  they  reorganised  under  a 
single legal act being EU acquis compliant.  

88 

 
 
Because of the previously fragmented system, each institution had applied different standards 
and  operating  procedures  for  food  safety  control,  causing  overlap  of  competences,  internal 
market  distortion  and  double  standards.  With  the  support  of  the  twinning  project,  single 
operating procedures for the entire food chain are developed and the KVFA staff is trained to 
apply one food safety control standard at food establishments' level.  

The  KVFA  staff  is  trained  in  applying  risk  assessment  methods  in  food  control  system; 
coherent  methodology  and  transparency  for  food  control/inspection  according  to  EU 
standards and acquis.  

Work with Member States' twinning partners enabled the KVFA staff to adopt EU compliant 
norms and educated the local food business operators in the implementation of the upcoming 
strict food safety legal requirements and obligations.  

Support to Border and Boundary Police 

Value: EUR 2 million – IPA 2007 

The  overall  objective  of  this  project  was  to  strengthen  the  rule  of  law  in  Kosovo,  further 
reform  of  the  Kosovo  Police  Service  including  the  border/boundary  police;  fighting 
corruption;  and  furthering  alignment  with  and  implementation  of  the  acquis  in  the  area  of 
justice and home affairs.  

In  particular,  this  project  has  focused  on  ensuring  that  the  concept  of  Integrated  Border 
Management is applied in an effective manner throughout Kosovo's borders. In this sense, the 
coordination with the other state bodies involved on Integrated Border Management has been 
increased.  The  application  of  the  Law  on  Integrated  Border  Management  was  facilitated  by 
the development of secondary legislation (Administrative Instructions), which are an essential 
means  for  border  police  officers  to  perform  more  efficiently  and  effectively.  Efficient 
implementation of an Integrated Border Management will also improve the coordination with 
other neighbouring countries. 

The  ability  of  Kosovo  Border  Police  to  intercept  and  seize  contraband  and  prevent  illegal 
border crossings  has also been improved. Moreover, more than 750 police officers received 
tailored trainings that included a wide range of policing subjects such as basic investigation, 
intelligence management, and trafficking in human beings as well as courses that centred on 
EU Standards for Border Control and Visa Regimes. The project contributed also to the re-
design  of  an  effective  institutional  structure  for  Kosovo  Border  Police,  improving  the 
management and workflow among all the divisions of the Border Police, in particular of those 
responsible for policing the entry/exit points to Kosovo.  Also, a key performance indicator 
framework have been developed by the project and adopted by the Kosovo Border Police as a 
tool to improve the effectiveness. 

Regional Development Agencies 

Value: EUR 6.6 million – IPA 2008 

The  general  aim  of  this  ongoing  project  is  to  enhance  activities  which  foster  regional 
development in Kosovo. Specifically, this programme aims to support: 

• The development of a regional development framework that is line with EU practices; 

89 

 
 
• The  introduction  of  a  Regional  Economic  Development  (RED)  approach  in  at  least  three 
regions  in  Kosovo  to  facilitate  local  and  regional  economic  development  and  consequently 
employment generation; and  

• The  development  of  institutional  capacity  in  these  selected  areas  to  manage  the  process  of 

economic development 

So  far,  five  Regional  Development  Agencies  have  been  established  across  Kosovo  in  the 
respective  economic  regions  of:  Centre  (Pristina),  North  (Mitrovica),  West  (Peja),  South 
(Prizren)  and  East  (Gjilan).  The  agencies  are  fully  staffed  and  functional.  They  serve  as  a 
platform  which  increases  the  ownership  of  the  municipalities  of  their  own  development,  as 
these  municipalities  are  able  to  determine  their  own  needs  by  themselves.  Additionally,  the 
agencies  help  to  increase  mutual  understanding  and  to  bridge  the  cultural  divide,  as  all 
municipalities (including those considered minority municipalities) are encouraged to interact 
and cooperate with each other. Lastly, the foundation of a regional institutional framework has 
been  created  to  incorporate  European  acquis  by  absorbing  EU  structural  funds  which  may 
become available in the future. 

6.3.1.2.  Overview of IPA implementation in 2010 

Component I: Transition Assistance and Institution Building 

Overall,  the  implementation  under  IPA  Component  I  was  highly  satisfactory  in  2010.  The 
remainder of IPA 2007 was contracted, as well as the bulk of IPA 2008. 

The Strategic Interim Evaluation of IPA assistance aimed to carry out an interim evaluation of 
assistance  provided  to  Kosovo  under  the  EU  Instrument  for  Pre-Accession  (IPA). 
Specifically,  it  aimed  to:  (1)  assess  the  intervention  logic  used,  to  date,  in  the  planning, 
programming  and  management  of  IPA  assistance,  and  (2)  to  make  an  overall  judgement  on 
the performance of programming and implementation of IPA assistance.  

The scope of the evaluation was confined to IPA Component I (IPA-TAIB) over the period 
2007-2009. It started with a mission in June 2010, during which several meetings took place 
with representatives from MEI, line-ministries (SPOs), Member States and main donors. 

The evaluation confirmed that "the procurement stage of implementation is well managed in 
Kosovo" (on the basis of contracting and disbursement rates) and that "contract management 
and pay systems are functional and well managed." Of course, several recommendations were 
also formulated, including:  

• 

the  quality  of  the  IPA  intervention  logic  could  be  improved  by  reducing  the  number  of 
(MIPD)-priorities and improving their focus;  

•  multi-annual programming would allow the identification  and preparation of  mature and 

well-sequenced projects; and  

•  quality  and  ownership  can  be  improved  by  greater  involvement  of  beneficiaries  in 

implementation and monitoring;  

90 

 
 
 
 
 
 
 
 
Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme  

Committed  Contracted  %Contracted

Paid  % Paid

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 

TOTAL 

62.00 
182.70 
103.60 
63.90 
412.20 

61.39
146.05
43.82
0.00
251.26

99.02%
79.94%
42.30%
0%

39.86  64.29%
76.03  41.61%
12.88  12.43%
0%
0.00 
60.96% 128.77  31.24%

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 
Political Criteria 
Economic Criteria 
Ability to assume membership obligations  
Support Programmes 
TOTAL 

% of 2007 - 2010 allocations 

35.52% 
47.79% 
11.67% 
5.02% 
100.00% 

Component II: Cross-border Cooperation 

As the programmes were only approved by the end of 2010, no project activities have taken 
place. 

6.3.1.3.  Implementation Modalities and Structures 

IPA programmes in Kosovo are implemented under centralised management by the European 
Commission.  The  programmes  can  also  be  implemented  under  joint  management  with 
international organisations. As any other IPA beneficiary, Kosovo has to establish a roadmap 
for  the  decentralisation  of  management  of  EU  funds.  Kosovo  is  at  very  early  stage.  The 
Commission  is supporting the Kosovo  authorities in efforts to take ownership of the annual 
programming process, inter alia with a Twinning project supporting the Ministry of European 
Integration.  

6.3.1.4.  Monitoring 

In 2010, Kosovo participated in the Results Oriented Monitoring (ROM) project managed by 
DG Enlargement. Accordingly, all contracts with a value exceeding € 1 million were subject 
to  ROM,  providing  the  ECLO  with  an  independent  opinion  on  the  efficiency  of  project 
implementation and its impact. Accordingly, most  ongoing IPA projects were monitored  by 
an independent team of experts. The contractor has been working closely with ECLO to make 
sure that planned monitoring missions are implemented as per the monitoring plan.  

By end -2010, 48 monitoring missions had been conducted. The overall average score of IPA 
projects  in  Kosovo  improved  by  6%,  while  the  share  of  projects  performing  'very  well'  and 
'well'  increased  by  9.5%.  In  general,  IPA  projects  in  Kosovo  improved,  notably  in  terms  of 
effectiveness. A meta-analysis ROM report produced in October 2010 suggests this is due to 

91 

 
 
  
 
 
improved  results  and  better  use  made  by  the  beneficiaries  of  these  results.  The  discussions 
with the new contractor on the monitoring plan for 2011 have started and the first mission is 
planned for April.  

6.3.2.  CARDS  

6.3.2.1.  Sectors with positive results/ Success stories 

During  the  reporting  period  all  CARDS-funded  projects  were  completed.  A  few  projects 
continued under defect liability periods. Projects which are considered a success include: 

Justice and youth: Support to the juvenile justice system 

Value: EUR 1 million - CARDS 2006 

This  project,  implemented  by  UNICEF,  aimed  to  support  the  reform  of  the  juvenile  justice 
system based on the rights of children and adolescents and evidence-based research will offer 
alternatives  to  detention  and  promote  a  juvenile  crime  prevention  programme  and  social 
rehabilitation of juveniles. A main result of this project was the mobilisation of a network of 
child protection service providers and community stakeholders, which laid the foundation for 
future work in establishing a coordinated response in preventing juvenile delinquency, despite 
the challenging political context.  

Economic  development  and  employment:  Promoting  local  enterprise  development  and 
employment  creation 
(FAIR  Grant 
programme) 

the  Mitrovice/a/Zvechan  municipalities 

in 

Value: EUR 3.2 million - CARDS 2004 

The main objective of this project was to support the establishment and expansion of growth 
oriented  enterprises  in  the  agro-processing,  industry  manufacturing  and  service  sectors 
through employment creation and export potential in the north region of Kosovo. Some of the 
project activities were to assess current market needs and priorities, identify points of synergy 
and prevent duplication, evaluate business profiles and award grants to the best ones, conduct 
monitoring  and  inspection  visits,  promote  dialogue  between  government  and  the  business 
community,  conduct  final  evaluation  and  audit  of  supported  enterprises,  analyse  monitoring 
and  inspection  visit  results,  and  conduct  SME  development  workshops.  The  project  was 
completed on 15 September 2009.  In total, over EUR 2.3 million have been awarded to the 
17  beneficiaries  of  the  three  calls  for  proposals.  The  total  combined  investment  mobilised 
through the FAIR project was over EUR 5.3 million. The new business ventures are expected 
to create a total of 295 new jobs.  Supported businesses are in industry sectors ranging from 
food processing (meat and sausage production, industrial production of bread), textiles, wood 
industry (furniture production, and production of semi processed wood for the furniture and 
construction  industry),  recycling  (processing  of  scrap  metal  and  production  of  egg  cartons 
from  recycled  paper,  production  of  plastic  granulate  from  waste  plastic  and  production  of 
water pipes), construction related (production of doors and windows, production of decorative 
features  for  buildings)  and  other  (printing,  production  of  prescription  lenses  for  optical 
glasses, production of motor oil for vehicles).  

6.3.2.2.  Lessons learned 

Some of the main lessons learned in the implementation of CARDS projects in Kosovo are: 

92 

 
 
•  Overall,  CARDS  has  performed  better  in  concrete  and  specific  technical  projects 

rather than in strategic and planning type of projects. 

•  Donor coordination during the implementation of CARDS was generally a weak point; 

it did not function effectively in a majority of the areas subject to the evaluation. 

•  Delays had been registered in the implementation because institutions were being set 

up when the project started and lacked administrative capacity and staff. 

• 

It has been difficult to assess CARDS in relation to national sector strategies as they 
did not exist in most sectors at the time. 

•  Lack  of  developed  sector  strategies  and  prior  needed  assessments  may  have 
contributed to inadequate project design, which has impacted CARDS performance. 

• 

Impact can be noticed in particular at the institutional level in many projects in most of 
sectors  subject  to  the  evaluation;  however,  a  general  concern  is  that  the  lack  of 
institutional capacity did limit the wider impact. 

•  CARDS  assistance  has  focused  on  direct  training  in  a  majority  of  the  projects  more 
than  on  training-of-trainers  and  developing  training  capacity,  and  was  vulnerable  to 
staff turnover and movement. 

•  Many projects have been implemented in a continuously changing environment with 

new staff at all levels. 

6.3.2.3.  Management performance 

Table 6: Status of financial assistance at the end of December 2010 (in million EUR) – 
CARDS annual programmes39   

CARDS 2001 

CARDS 2002 
CARDS 2003 
CARDS 2004 
CARDS 2005 
CARDS 2006 
TOTAL 

Allocated  Contracted  % Contracted
154.95

155.50 

99.65% 154.95 

Paid  % Paid 
99.65%

162.54 
62.28 
72.60 
76.50 
46.50 
575.92 

131.30
58.16
69.29
72.79
44.79
531.28

80.78%
80.78% 131.30 
92.81%
57.80 
93.38%
95.39%
69.25 
95.44%
94.59%
72.36 
95.15%
96.32%
95.29%
44.31 
92.25% 529.97  92.02%

6.3.2.4.  Institution Building highlights 

CARDS projects were completed during the reporting period. No activities took place, except 
for some under the defect liability periods for some works / supply contracts. 

6.3.2.5.  Joint Monitoring Committees / Sector Monitoring Sub-Committees 

 A Joint Monitoring Committee to review IPA implementation in Kosovo took place in early 
July 2010. 

39  

Figures  include  only  Annual  Action  Programmes,  while  not  including  other  programmes  managed 
centrally,  such  as  Customs  and  Taxation,  or  the  running  costs  for  the  European  Agency  for 
Reconstruction and for the EU Pillar of UNMIK 

93 

 
 
  
                                                 
7. 

 MONTENEGRO 

7.1. 

Summary 

2010  has  been  a  successful  year  in  terms  of  contracting  and  implementation  and  the  IPA 
projects  started  to  deliver  results  and  early  impacts.  Several  laws  have  been  adopted  by  the 
Parliament  as  well  as  new  strategies  and capacity building activities produced good  impact. 
To  mention  some,  new  laws  on  Financial  Stability  Council,  on  National  Qualification 
Framework  in  education,  Energy  and  Energy  Efficiency  have  been  supported  by  IPA 
assistance  and  adopted  during  the  year.  The  2.4  km  road  by-pass  of  Podgorica  was  finally 
concluded, more than 780 people have been trained in public procurement, and the national 
Television  has  been  provided  with  digital  computerised  newsroom  which  improved  the 
quality of news broadcasted. Moreover, IPA assisted 2100 refugees and IDPs with appropriate 
houses, income generation packages, special training, and 50 families returned to Kosovo. 

At the end of 2010 projects were ongoing for a total value of EUR 73.6 million, and projects 
were finalised for a total value of EUR 9 million. 

7.2. 

Strategic planning and programming  

7.2.1.  Multi-annual Indicative Planning Document 

On  17  December  2010,  the  European  Council  endorsed  the  Council's  conclusions  of  14 
December  2010  on  enlargement  and  agreed  to  give  Montenegro  the  status  of  candidate 
country.  

In its Opinion on the Montenegrin application for membership, the Commission identified key 
priorities  that  need  to  be  closely  monitored  before  opening  negotiations:  improving  the 
legislative  framework;  completing  public  administration  reform;  strengthening  rule  of  law; 
improving  the  anti-corruption  legal  framework  and  implementing  the  government's  anti-
corruption  strategy  and  action  plan;  strengthening  the  fight  against  organized  crime; 
enhancing media freedom and strengthening cooperation with civil society; implementing the 
legal and policy framework on anti-discrimination; adopting and implementing a sustainable 
strategy for the closure of the Konik camp.  

One of the practical implications for Montenegro of receiving candidate status is the access to 
the  other  three  components  of  IPA,  namely  regional  development;  human  resources 
development; and agriculture and rural development. 

Taking  into  account  that  other  donors  are  also  actively  involved  in  assisting  Montenegro, 
areas where IPA can make a contribution in the future (2011-2013) to further approaching EU 
membership, have the following priorities:  

•  Strengthen  the  Parliament’s  legislative  and  oversight  role;  complete  essential  steps  in 
public  administration  reform;  enhance  media  freedom  and  strengthen  cooperation  with 
civil society;  

•  Strengthen  rule  of  law;  improve  the  anti-corruption  legal  framework  and  strengthen  the 

fight against organised crime; 

94 

 
 
•  Implement  effectively  the  acquis  throughout  the  programme,  and  specifically  through 

strengthening the administration capacity;  

•  Prepare  Montenegro  for  the  management  of  Structural  Funds  for  the  future  EU  cohesion 
policy,  namely  the  European  Regional  Fund  and  Cohesion  Fund  regarding  the 
environmental  and  transport  sectors  (in  the  areas  of  railways  and  maritime)  and  the 
European  Social  Fund  (in  the  areas  of  human  resources  development,  ie.  employment, 
education and social inclusion); 

•  Strengthen  the  environmental  administration  including  for  EIAs,  for  the  management  of 
protected areas, for climate change and to identify sustainable funding for implementation;  

•  Strengthen the administrative capacity in the sector of agriculture and rural development, 
including  food  safety,  veterinary  and  phytosanitary  issues,  and  focus  preparations  on 
setting up basic instruments and institutions for managing the CAP.  

To achieve these priorities in the programming period 2011-2013, the Commission will focus 
its assistance on the following sectors: (1) Justice and home affairs; (2) Public administration 
reform;  (3)  Environment  and  Climate  Change;  (4)  Transport;  (5)  Social  Development;  (6) 
Agriculture and rural development.  

Preparations  for  IPA  Component  III  will  fall  under  the  sectors  environment  and  climate 
change, as well as transport, while for Component IV preparations for the Human Resources 
Development  component  are  under  the  sector  Social  development.  For  Component  V, 
agriculture and rural development, the preparation is carried out with the close involvement of 
AGRI. The joint work of Commission services has been very fruitful and will be a good basis 
for the implementation of the IPA programmes during the next years as well as with view to 
the future strategic definitions in the frame of the next IPA 2014-2020 preparations. 

Other main line DGs which have a link with the national programming are ECFIN, MOVE, 
ENV, CLIMA, INFSO, EAC, HOME and JUST. 

The  progress  report,  the  Commission  Europe  2020  strategy  on  enlargement,  the  European 
Partnership,  the  national  plan  for  integration  to  the  EU,  and  other  national  strategies,  have 
been  the  basis  for  the  programming  exercise.  Ownership  is  progressively  improving, 
alongside the understanding of the EU accession process. In addition, a needs assessment was 
carried out, based on the existing strategies, on the needs expressed by Government, on the 
conclusions of the sub-committees, on the shortcomings mentioned in the progress report and 
in  the  Opinion,  on  the  SWOT  analysis  done  for  the  draft  Strategic  Coherence  Framework 
(SCF), and on the lessons learnt from past and on-going assistance. The EU Delegation also 
carried out a survey to identify the existing strategies or action plans in  view  of  identifying 
priority sectors, as well as of programming IPA assistance for the next three years period. 

Participants at the various donor coordination meetings outlined the sectors which they found 
to be priority areas for future financial assistance, such as environment, good governance or 
assistance  to  EU  accession.  Italy  is  supporting  sustainable  development  and  environment. 
Germany, through GTZ is assisting the employment sector through vocational education and 
economic  development  as  well  as  in  the  tourism  sector,  energy  efficiency,  communal  land 
management. Austria is involved in the education and tourism sector. IPA support will closely 
work with those donors. KfW is the biggest donor in the energy sector, financing investments 
in energy production, transmission and energy efficient measures both on the supply and on 

95 

 
 
the  demand  sides.  Moreover  KfW  is  financing  water  and  waste  water  projects  at  the  coast. 
With the World Bank, areas for potential close cooperation with IPA have been identified in 
the  sectors  of  Agriculture  and  food  safety;  in  energy  efficiency  and  in  education.  EIB  is 
investing  in  environment  Northern  region  and  in  the  railways  sector,  in  close  collaboration 
with IPA also. Donor coordination is crucial for the efficient use of scarce funds. The US and 
other bilateral donors are also closely supporting the CSOs. 

Experience  with  the  implementation  of  the  first  two  components  of  IPA  assistance  and  the 
evaluation  carried  out  for  CARDS  projects  in  the  fields  of  public  administration,  justice, 
liberty and security, and civil society led to strategic and operational recommendations which 
included: the need to better target project objectives; to improve the planning of operations; to 
increase the awareness on sustainability; to conduct functional needs assessments; to improve 
donor coordination; to improve project design and project preparation; to involve civil society 
in  the  programming  steps,  not  only  for  social  matters;  to  increase  the  monitoring  of  project 
implementation;  to  ensure  that  cross-cutting  aspects  lead  to  concrete  impact;  to  ensure 
ownership  by  the  beneficiaries  and  sufficient  absorption  capacity.  Experience  also  showed 
that  in  the  sectors  of  environment  and  transport,  an  adequate  project  pipeline  and  quality 
project  preparation  is  essential  to  success;  that  competent  and  strong  managerial  capacities 
should be in place, at local and national levels. 

In October 2009, the MIFF has been adopted, and these amounts are presented in Table 1. In 
November 2010 the revised MIFF for 2011-2013 was adopted without prejudging whether or 
not the Council would decide to grant candidate status to Montenegro.  

Table 1: MIFF40 allocations per component, in million EUR 

Component 
I – Transition Assistance and Institution Building 
II – Cross-border cooperation 
TOTAL 

2010 
29.24
4.28
33.52

2011 
29.84
4.31
34.15

2012 

30.45 
4.34 
34.79 

2010-2012 
89.53
12.93
102.46

In December 2010, Montenegro became a candidate country, and thus, the MIFF will have to 
be amended to take into account components III to V, however, only after the revision of the 
IPA Regulation allowing Montenegro to be moved from Annex II (pre-candidate countries) to 
Annex I (candidate countries). The amounts presented in Table 1.2 (here below contain slight 
changes. 

7.2.2.  Programming exercise 

7.2.2.1.  Component I  

During the year, IPA 2010 national programme was finalised and adopted on 28 July 2010. It 
focuses on infrastructures (with a leverage effect on EIB loans) (35%), as this helps mitigating 
the  impacts  of  the  financial  crisis  and  provides  employment,  in  addition  to  developing  the 
necessary infrastructure needs, through two large projects on railways rehabilitation and waste 
water treatment as well as grants for municipal small infrastructures. It also includes two new 
projects in the social sector, on gender equality and a large social inclusion one dealing with 

40 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

96 

 
 
                                                 
inclusive education, social welfare reform and child care. There are also several well needed 
projects in the main acquis-related areas.  

No project was foreseen for civil society in 2010, as in 2009, a large programme of support 
for  civil  society  project  was  launched  as  well  as  an  ongoing  one  from  2007  going.  The 
regional multi-country "civil society facility" was in place. 

Per priority axis, the IPA 2010 national programme is clustered as follows: 

−  Political criteria. This includes support for local self government, as a continuation of the 
IPA  2008  project  including  grants  for  infrastructure;  for  strengthening  the  police;  and 
pursues the fight against corruption through developing integrity framework in the public 
administration; in addition to creating the path towards gender equality.  

−  Economic  criteria.  This  axis 

infrastructure  (railways  and 
includes  support  for 
environment);  for  reforms  in  the  social  area  for  an  inclusive  society;  for  environment 
through forestry projects and awareness campaigns; as well as for assisting the ministry of 
Information society.  

−  Ability  to  assume  obligations  of  membership.  This  axis  supports  the  implementation  of 
acquis related activities in the areas of statistics, phytosanitary, construction norms, blood 
transfusion, market surveillance, as well as tax administration 

−  Participation  in  Community  programmes,  IPA  facilitates  the  "entry  ticket"  for  the  7th 
Framework  programme  in  Research;  Entrepreneurship  &  Innovation;  Culture  and 
Customs 2013.  

Montenegro being a small country, coordination among donors is permanent. As presented in 
this report, to the extent possible, projects are designed to be implemented by an EU bilateral 
donor, or a UN agency, or as co-financing with an IFI, mainly EIB for 2010.  

Some sectors are well covered by specific donors such as energy by KfW, private sector and 
education by the World Bank. In addition, most donors are assisting the country in fighting 
corruption  and  organised  crime,  and  in  good  governance.  Caution  was  taken  during 
programming 
is 
counterproductive.  

to  ensure  absorption  capacity,  as 

technical  assistance 

is  excess 

In addition, IPA national programmes take into account IPA multi-beneficiary programmes, 
which  are  also  involved  in  infrastructures,  energy  efficiency,  SMEs  (through  EFSE),  and 
several networking projects in the sectors of JLS, statistics, environment, refugees, etc. 

In Montenegro, the bulk of assistance goes to infrastructures in the environment sector such as 
solid  waste  management  and  waste  water  management.  In  the  sector  of  transport,  the 
assistance  focuses  on  railway  infrastructure.  Both  these  sectors  contribute  directly  to 
achieving  EU  policies  in  terms  of  environment  and  climate  change.  In  addition,  they  are 
complementing EIB loans. 

At  the  start  of  the  programming  process,  all  projects  were,  as  usual,  presented  to  the 
Commission  by  the  beneficiaries  themselves.  During  this  year,  it  was  clear  that  the  needs 
were  well-owned  and  stemmed  from  the  sub-committees,  the  progress  reports  and  other 
specific acquis needs. The Delegation continued to enjoy a very close relationship with civil 
society and NGOs participated in the needs identification for the IPA civil society project. 

97 

 
 
As a result of donor coordination and efficiency of the implementation, in 2010, one project 
(project  10:  Capacity  building  in  the  forestry  sector)  is  set-up  to  be  implemented  under 
Indirect Centralised Management, in accordance with Article 56.1 of the Financial Regulation 
through a delegation agreement with Lux Development. In addition, direct grants (for projects 
4:  Gender  Equality,  8:  Social  welfare  and  child  care  system  reform:  enhancing  social 
inclusion  and  14:  Implementation  of  the  European  Blood  Transfusion  System)  are  to  be 
negotiated with UNDP, UNICEF and WHO (under Article 168.1.c Implementing Rules). 

The programming of IPA 2010 funds took into account whenever possible the lessons learned 
programmes such as an improved use of conditionalities and of functional needs assessments 
of the institutions involved in the projects. However, the implementation of IPA projects was 
sometimes hindered by lack of ownership by the beneficiaries, the limited size and weakness 
of the public administration dealing with IPA related which are recurrent issues. 

Programming  for  IPA  2011  has  started  early  2010,  and  was  fairly  advanced  by  the  end  of 
2010. However, due to the late progress in the MIPDs 2011-2013, the programming was put 
on-hold. In addition, joint programming missions with line DGs to prepare for components III 
and IV were planned for early 2011.  

The total amount allocated to Montenegro in the MIFF is EUR 29.24 million. An additional 
amount  of  EUR 600,000  has  been  added  in  order  to  start  socio-economic  activities  at  the 
border with Kosovo (CBC-type activities) instead of a CBC component II programme.  

Table  2:  Indicative  financial  allocations  for  the  year  2010  per  component,  in  million 
EUR 

MONTENEGRO 
I. Transition Assistance and Institution Building41 
Of which: 

National Programme  
Tempus Programme* 

II. Cross-Border Cooperation42 
Of which:    

CBC Albania Montenegro 
CBC Croatia Montenegro 
CBC Bosnia and Herzegovina Montenegro 
CBC Serbia Montenegro 
CBC with Adriatic Programme 
Participation in ERDF transnational programmes (SEE and MED) 

2010 
29.84

28.64
1.20
4.84

0.60
0.50
0.60
0.60
1.38
1.16
34.68

TOTAL 
*  The  Tempus  Programme  is  coordinated  and  implemented  under  the  relevant  Multi-beneficiary  IPA  2009 
programme.  

41  

42  

The  difference  of  EUR  0.6  million  compared  to  Table  1  is  due  to  a  transfer  from  Component  II 
(originally allocated to a CBC with Kosovo)  
The  difference  of EUR  0.56  million  compared  to  Table  1  is  due  to  additional  transfers   to 
reinforce CBC with Adriatic Programme / Participation in ERDF transnational programmes (SEE and 
MED)  

98 

 
 
 
                                                 
Table 3: Indicative financial allocations for the year 2010 under the  National Programme, per 
priority axis and per project, in million EUR 

Priority axes/projects 
Political criteria 

Strengthening  the  police  directorate  in  integrated  border  management, 
criminal intelligence and the fight against drugs 
Support the implementation of the anti corruption strategy and action plan 
Support to Local Self-Government for implementing the National Training 
Strategy (NTS) and provision of grants to municipalities) 
Gender Equality 

Economic Criteria 

Major  rehabilitation  of  the  main  Railway  line  Bar–Vrbnica    (Miatovo 
Kolo-Mojkovac) section 
Upgrading the Pljevlja waste water treatment system  ) 
Raising environmental awareness  
Social welfare and child care system reform: enhancing social inclusion 

Strengthening administrative capacities in information society 
Support for capacity building in the forestry sector 

Ability to assume obligations of membership 

Improving Statistical information system  
Strengthening of the Phytosanitary Directorate  
Achieving highest safety and technical quality of construction 
Implementation of the European Blood Transfusion System  
Consumer protection and market surveillance 
Upgrading IT capacity of the Tax Administration 

Supporting programmes 

Community programmes 

Support activities 

TA&PPF 
Support Measures Facility (SMF) 

Total 

7.2.2.2.  Component II 

Budget 
6.70

1.80
0.70

3.50
0.70

13.25

5.00
3.50
0.50

3.00
0.50
0.75
5.60
1.20
0.70
0.70
1.80
0.70

0.50

0.32

0.32
2.77
2.02
0.75
28.64

For  programmes  at  borders  with  candidate  countries/potential  candidates,  the  Montenegrin 
Operating  Structures  focused  on  reinforcing  the  capacity  of  their  staff  and  that  of  the  Joint 
Technical  Secretariats  working  for  the  programmes  where  Montenegro  is  a  participating 
country. For this capacity building effort, the assistance of the regional project “CBIB II” was 
instrumental, as well as the signature of four grant contracts (March 2010), directly awarded 
to  the  Ministry  of  European  Integration  as  technical  assistance  for  the  programmes  with  its 
four neighbours (Albania, Bosnia and Herzegovina, Croatia and Serbia.  

The evaluation of the four calls for proposals launched in 2009 under the CBC programmes 
with these neighbours was successfully concluded and most of the contracts were signed by 
the  end  of  2010.  The  last  two  contracts  in  relation  to  the  participation  of  Montenegrin 
operators in the ERDF-SEE transnational programme were concluded by May 2010. 

99 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The  second  call  under  the  CBC  programme  with  Albania  was  published  in  June  2010 
including  the  allocations  2008-2009.  By  the  deadline,  the  number  of  applications  received 
was  a  50%  greater  than  in  the  first  call  published  just  one  year  before,  which  indicates  a 
growing interest in the scheme thanks to the measures taken to promote the visibility of the 
programme and the capacity of the potential applicants under the aforementioned TA contract 
supporting the implementation of this programme. 

Finally, during the fall of 2010, the CBC programme document for the new CBC programme 
Kosovo – Montenegro was drafted and approved by the Operating Structures.  

The  programme  Albania  –  Montenegro  seeks  to  promote  cooperation  between  people, 
communities  and  institutions  on  the  bordering  areas,  aiming  at  sustainable  development, 
stability  and  prosperity  in  the  mutual  interest  of  citizens  of  the  two  countries.  They 
specifically  target  the  promotion  of  economic  development  through  the  improvement  of 
tourism  and  cultural  potentials;  the  advancement  in  the  protection,  promotion  and 
management  of  sensitive  ecosystems  and  sustainable  environmental  development;  and  the 
furtherance of citizens cooperation and partnership building across the border. 

The  main  priority  of  the  programme  Bosnia  &  Herzegovina  –  Montenegro  consists  of 
fostering the sustainable development of the cross-border area, its economic, cultural, natural 
and  human  resources  and  potentials  by  strengthening  the  local  capacities  and  common 
institutional networks among local communities and other relevant actors. 

The overall objective of the Croatia - Montenegro programme is to improve the quality of life 
in  the  cross-border  area  by  (a)  establishing  cooperation  between  institutions  in  charge  of 
environment  protection,  as  well  as  cultural  heritage  protection;  by  (b)  creating  recognizable 
tourist  products  based  on  the  natural  and  cultural  assets  of  the  programme  area  and  re-
establish  social  and  cultural  connections;  and  by  (c)  enhancing  cooperation  between 
institutions,  citizens  and  civic  organizations  in  order  to  boost  community  development  and 
improve neighbourhood relations. 

The  Serbia  –  Montenegro  programme  revolves  around  five  main  priorities,  to  wit:  (a) 
strengthening  the  incentives  for  SME  development  in  the  border  areas;  (b)  development  of 
tourism  as  a  key  sector  of  the  border  economy;  (c)  promotion  of  cross-border  business 
cooperation  and  accessibility  to  markets;  (d)  preservation  of  the  high  quality  of  the  border 
area  environment  as  an  economic  resource;  and  (e)  strengthening  cross-border  ‘people-to-
people’ interaction to reinforce ethnic, educational, cultural and sporting links. 

The regional Adriatic IPA Cross-border programme includes maritime areas in three Member 
States  (Greece,  Italy  and  Slovenia)  and  several  IPA  countries  Croatia  (HR),  Bosnia  & 
Herzegovina (BiH), Montenegro (MNE) & Albania (AL) and seeks to strengthen sustainable 
development  capabilities  of  the  Adriatic  region  through  a  concerted  strategy  of  action 
between  the  partners  of  the  eligible  territories  emphasising  research  and  innovation, 
promotion and protection of natural and cultural resources, and the integration and extension 
of the existing infrastructure network. 

The two ERDF-South East Europe and Mediterranean trans-national programmes enable the 
participation  of  Montenegrin  partners  with  partners  from  many  EU  Member  States  in  joint 
transnational  cooperation  activities  and  make  possible  the  familiarisation  of  Montenegrin 
partners  with  territorial  cooperation  programmes  under  the  EU  structural  funds.  The  main 
areas  of  cooperation  are  innovation,  environment,  accessibility  and  sustainable  urban/rural 

100 

 
 
development. 

7.3. 

Implementation of assistance  

7.3.1. 

IPA 

7.3.1.1.  Success stories 

Construction of Podgorica Eastern by-pass, Section 4 (IPA 2007 EUR 4 million)  

This  project  has  contributed  to  the  economic  growth  of  Montenegro  by  improving  the 
efficiency, effectiveness and safety of its transport network. Rehabilitation of roads is key not 
only to integrating Montenegro into regional trade and tourism networks but also to improve 
traffic  flows  and  safety  measures  in  line  with EU  standards. The  completion in  2010 of the 
construction of Section 4 of the Podgorica by-pass has had a significant impact on passengers 
and  goods  transport  in  Montenegro  by  considerably  reducing  the  time  taken  to  transit  the 
capital city. In addition the new by-pass has led to a significant reduction of circulation and 
pollution in Podgorica itself.  The total construction comprised a length of highway of 2.4 km, 
comprising dual carriageways, central median, pedestrian footpaths, and ancillary works and 
the  provision  of  two  railway  under-passes.  The  main  beneficiary  was  the  Ministry  of 
Transport. 

Juvenile Justice System Reform (IPA 2008 Direct grant to UNICEF EUR 500,000)  

The main achievement of this project has been to harmonise Juvenile Justice Policy and the 
Legislative Framework with internationally recognized standards of protection of the rights of 
children in conflict with law. The Draft Law on Juvenile Justice has now been prepared and is 
in the process of adoption. Under this law, the focus is on education rather than punishment 
for juveniles in conflict with the law with imprisonment used only as a last resort.  Additional 
achievements  included  improvements  to  the  Juvenile  Justice  database  and  capacity  building 
for over 200 professionals, judges, prosecutors, police officers, social workers, psychologists 
and staff within responsible departments to deal with juvenile justice. The main beneficiaries 
were the judiciary and Ministry of Justice. 

National  Qualification  Framework  (NQF)  and  Quality  Assurance  in  Education  (IPA 
2007 EUR 1.5 million)   

This project has helped to further policy and institutional reforms in education and training as 
part  of  Montenegro’s  effort  to  engage  with  the  wider  European  Union  education 
developments. The main achievement included the adoption by the Parliament of Montenegro 
in  December  2010  of  the  Law  on  a  National  Qualification  Framework.  In  September  2010, 
Pilot  Sector  Commissions  for  Qualifications  were  established  for  the  sectors  of  Tourism, 
Trade and Hospitality, Construction and Architecture; Agriculture, Forestry, Food processing 
and  Veterinary.  In  addition  a  Communication  and  Public  Relations  strategy  was  adopted  to 
guide the work on awareness rising on the Montenegrin Qualification Framework over a five 
year period. The main beneficiary was the Ministry of Education and Science. 

Fight against organised crime and corruption (IPA 2008 Twinning EUR 1.2 million)  

The main achievements of this project included strengthened inter-agency cooperation in the 
fight  against  organised  crime,  corruption  and  money  laundering  including  the  establishment 
and implementation of both a surveillance system to obtain evidence on organised crime and 

101 

 
 
an anti-money laundering database. Public campaigns on anti-corruption were organised and 
an integrity plan and website was established for the Directorate for Anti-corruption Initiative 
(DACI)  Main  beneficiaries  of  the  project  were  the  Police  Directorate,  Ministry  of  Interior, 
Police Academy, Administration for the Prevention of Money Laundering and DACI. 

Support to Transformation of Radio and Television of Montenegro into a Public Service 
Broadcaster – supply of digital equipment (IPA 2008 EUR 1.2million)  

This project has contributed to establishing an independent and effective Montenegrin public 
broadcasting  service  as  befits  an  open  and  democratic  society.  The  beneficiary  is  Radio 
Television  of  Montenegro  (RTCG).  The  main  achievements  have  been  the  provision  of  a 
modern computerised newsroom in order to strengthen the independence and effectiveness of 
the  Montenegrin  public  broadcaster  RTCG  to  provide  better  quality  news  and  other  public 
service programming. The project also aimed at enhancing the knowledge and skills of RTCG 
staff  to  effectively  use  the  new  digital  workflow  technology  in  television  programme 
production. The actual benefit to citizens will materialize after the digital switchover.  

Comprehensive  support  to  refugees  and  displaced  persons  (IPA  2008  Grant  EUR  1.5 
million)  

The overall objective of the project was to contribute to resolving the issues of refugees and 
displaced  persons  as  outlined  in  the  Montenegro's  National  Strategy.  Finding  durable 
solutions for refugees and displaced people in Montenegro is also a priority identified by the 
Commission for action before Montenegro can begin accession talks.  The main achievements 
of  this  project,  which  was  implemented  by  the  German  NGO  "HELP",  included  providing 
over 400 people with secure and appropriate housing, supporting over 230 income generation 
schemes, providing 230 people with specialised training, conducting cross border information 
activities with 1159 participants and facilitating return of 50 displaced families to Kosovo. In 
addition to these 2100 direct beneficiaries assisted by the project the institutional beneficiaries 
were  Bureau  for  Care  of  Refugees,  Ministry  of  Social  Welfare,  Local  Governments  and 
communities in Montenegro and Kosovo. 

Institution building highlights 

Strengthening the regulatory and supervisory capacity of the financial regulators (IPA 
2008 Twinning EUR 1.2 million)  

This project has helped to create the conditions for long-term economic stability and growth 
in Montenegro by strengthening the regulatory and supervisory framework of the capital and 
financial markets in line with EU acquis. In this respect, one of the key successes has been the 
adoption by the Parliament of Montenegro in July 2010 of the Law for the Financial Stability 
Council and the approval by the Government of the Law of Prevention of Money Laundering 
and  Financing  of  Terrorism.  A  draft  of  the  Montenegrin  Law  on  Financial  Collateral 
Arrangements has also been prepared and a Plan of Action for the implementation of Basel II 
in the banking sector has been adopted by CBM Governing Board. In addition a Consumers’ 
Awareness and Financial Education Strategy was prepared and adopted by SEC Management 
Board and the capacity of financial institutions has been strengthened through training in EU 
financial stability issues. Three inspection programmes for anti-money laundering and against 
financing  of  terrorism  have  also  been  established.  The  main  beneficiaries  were  the  Central 
Bank  of  Montenegro  (CBM),  Securities  and  Exchange  Commission  (SEC)  and  Insurance 
Supervision Agency (ISA). 

102 

 
 
Further  development  and  strengthening  of  the  public  procurement  system  (IPA2007 
EUR 1.3 million)  

One  of  the  main  achievements  of  this  project  has  been  the  drafting  of  a  New  Public 
Procurement  law  which  is  now  in  the  process  of  adoption  and  will  help  to  ensure  full 
harmonisation  with  the  EU  acquis  and  international  best  practice.  The  project  has  also 
strengthened  the  capacity  of  the  Public  Procurement  Directorate  to  implement  its  functions 
through  training  of  786  procurement  officers  and  through  establishing  an  IT  system  for 
publication of public procurement notices. A public awareness campaign on the benefits and 
principles  of  public  procurement  has  also  been  implemented.  The  main  beneficiary  is  the 
Directorate for Public Procurement 

Technical  Assistance  for  implementation  of  Energy  Community  Treaty  (IPA  2007 
EUR 1.5million)  

This project has helped to develop and implement energy sector policies that will ensure the 
implementation  of  Montenegro's  commitments  under  the  Energy  Community  Treaty, 
including the implementation of the Regional Energy Market. The key achievement has been 
the adoption by the Parliament of Montenegro in April 2010 of the Law on Energy and the 
Law on Energy Efficiency.  A further achievement in December 2010 was the adoption by the 
Government  of  Montenegro  of  their  first  Energy  Efficiency  Action  Plan.    The  main 
beneficiaries  were  the  Ministry  of  Economic  Development  and  the  Energy  Regulatory 
Agency. 

7.3.1.2.  Overview of IPA implementation in 2010 

2010 was successful so far in terms of implementation of IPA projects in Montenegro.  

Year 

2008 
2009 
2010 

Commitments  
(million EUR) 
11.5 
15.6 
39.3 

Disbursements 
 (million EUR) 
3.5 
12.0 
28.4 

In 2010 the EU Delegation committed 2.5 times the amount committed in 2009 and 3.4 times 
the committed amount of 2008. During the same year EU Delegation disbursed 2.4 times the 
amount  paid  in  2009  and  8.1  times  the  amount  disbursed  in  2008.  Overall  the  Delegation 
committed  a  total  of  EUR 39.3 million.  Indeed,  in  2008,  commitments  amounted  to 
EUR 11.5 million, 
respectively 
EUR 15.6 million  and  EUR 12 million,  and  in  2010,  respectively  EUR 39.3 million  and 
EUR 28.4 million. 

and  disbursed  EUR 3.5 million;  while 

in  2009, 

103 

 
 
 
 
 
 
Component I: Transition Assistance and Institution Building  

Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme  

IPA 2007 
IPA 2008 
IPA 2009* 
IPA 2010 
TOTAL 

Committed  Contracted  % Contracted  

23.87
26.80
28.43
28.64
107.74

23.65
23.37
12.56
4.25
63.83

99.08% 
87.20% 
44.18% 
14.84% 
59.24% 

Paid  % Paid 
70.84%
41.72%
16.43%
6.77%
32.21%

16.91 
11.18 
4.67 
1.94 
34.7 

*Including EUR 1.2 million for a separate Rural Roads project 

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Political criteria 

(of which civil society)

Economic criteria 
Ability to assume membership obligations 
Support programmes 
TOTAL 

% of 2007-2010 allocations 
24.49% 
3% 
38.25% 
29.55% 
7.71% 
100% 

Several  contracts  have  been  closed  in  2010:  12  out  of  the  IPA  2007  programme,  3  out  of 
IPA 2008  and  2  out  of  IPA 2009,  for  amounts  of  respectively  EUR 2.18 million,  0 
EUR .12 million, and EUR  0.13 million. 

Component II: Cross-border Cooperation 

The  complex  architecture  (dual  managing  structures;  dual  operational  structures,  Joint 
Monitoring  Committees  (JMC)  and  Joint  Technical  Secretariats)  has  led  to  considerable 
delays in contracting CBC funds. 

Only in the last three months of 2010 was progress made. By the end of 2010 the EUD had 
signed all contracts stemming from the evaluation of the first calls for proposal under priority 
1  (regional  cohesion)  under  the  Albania-Montenegro,  Bosnia  and  Herzegovina-Montenegro, 
Croatia-Montenegro and Serbia-Montenegro CBC programmes respectively. [This represents 
24 contracts under the CBC 2007 allocation, 7 under CBC 2008 allocation, 7 under both CBC 
2007  and  2008  allocation  and  4  under  the  transnational  programmes  allocation  2007.]  The 
2007  allocations  for  Bosnia  and  Herzegovina-Montenegro,  Croatia-Montenegro  and  Serbia-
Montenegro programmes have been fully committed. The Joint Monitoring Committee (JMC) 
of the Albania-Montenegro programme submitted in late December a strategic project for the 
use  of  residual  funds  of  the  2007  Albania-Montenegro  allocation.  The  uncommitted  funds 
from the 2008 allocations for the Bosnia and Herzegovina-Montenegro, Croatia-Montenegro 
and  Serbia-Montenegro  programmes  will  be  used  in  the  second  calls  for  proposals  to  be 
published in Q1 2011. 

104 

 
 
 
 
 
Tables 6: Status of implementation of IPA financial assistance (Component II) as at 31st 
December 2010 (in million EUR) per annual programme43  

IPA 2007-2010 

Committed 
17.91

Paid 

% Paid 

2.13

11.89% 

Out of which, the breakdown for the intra-Western Balkans CBC Programmes and the ERDF 
Transnational Programmes (South-East Europe and Mediterranean) is: 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

Committed  Contracted  % Contracted   Paid 
2.50
0.93
0
0
3.43

78.62%
28.62%
0%
0%
25.98%

3.18 
3.25 
3.31 
3.40 
13.20 

% Paid 
51.26%
15.38%
0%
0%
16.14%

1.63 
0.50 
0 
0 
2.13 

Table 7: and distribution of total committed funds (2007-2010 allocations) 

Priority Axes 

CBC with Member States 
CBC within Western Balkans 
Participation to ERDF Transnational 
Programmes 
TOTAL 

% of 2007-2010 allocations  
-
80.00%
20.00%

100%

7.3.1.3.  Implementation Modalities and Structures 

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 Component I and II 
while  for  the  other  Components  Montenegro  remained  in  Stage  0.  Five  IPA  projects  were 
dedicated to preparing the systems for decentralised management – 1 project for components I 
and II, upon the results of which a bigger project for Components I-IV was launched in Q4 of 
2010, 1 service contract for the preparation of the Operational Programmes and the Strategic 
Coherence Framework for Components III and IV, 1 twinning contract for Component V and 
1 project for the establishment of the Audit Authority. As a consequence, 2010 has shown a 
progress  in  strengthening  the  capacity  of  the  National  Authorising  Officer  (NAO)  and  the 
National  Fund:  a  head  of  the  National  Fund  was  appointed  and  the  staff  was  increased;  the 
NAO has taken over the role of a general manager of the decentralisation process for all five 
components;  the  practice  of  regular  three-monthly  reports  by  the  NAO  to  the  EC  was 
established. The capacity of the Central Financing and Contracting Unit and the Programme 
Authorising Officer were strengthened significantly as well. An Audit Authority was formally 
established  within  the  State  Audit  Institution  as  a  temporary  host  until  the  end  of  2011.  It 
employs  5  persons,  has  its  own  premises  and  relative  budget  independence.  Following  the 
changes  in  the  Government  at  the  end  of  2010,  a  new  National  IPA  Coordinator  and 
Competent Accrediting Officer were appointed. 

43  

Figures include IPA Adriatic 

105 

 
 
 
  
 
 
 
 
                                                 
7.3.2.  CARDS 

7.3.2.1.  Sectors with positive results/ Success stories 

All CARDS projects ended in 2010. 

7.3.2.2.  Management performance 

Table 8: Status of financial assistance at the end of December 2010 (in million EUR) – 
CARDS annual programmes44   

CARDS 2001 
CARDS 2002 
CARDS 2003 
CARDS 2004 
CARDS 2005 
CARDS 2006 
Total 

Paid  % Paid 

Allocated  Contracted % Contracted
100% 
16.30 
100%
95.83% 
11.50 
95.83%
99.08% 
11.89 
99.08%
97.49% 
16.34 
97.49%
87.28% 
20.18 
87.46%
93.67% 
19.40 
93.67%
94.81% 95.61  94.77% 

16.30 
12.00 
12.00 
16.76 
23.12 
20.71 
100.89 

16.30
11.50
11.89
16.34
20.22
19.40
95.65

7.3.2.3.  Joint Monitoring  

The IPA Monitoring Committee took place on 4 June afternoon in Budva. 

The main findings of the meeting can be summarised as follows: 

• 

It was agreed by all participants that the administration lacks absorption capacity; one 
of  the  immediate  solutions  could  be  the  reduction  of  the  number  of  projects  and 
contracts i.e. the financing of large infrastructure projects for IPA 2011 and 2012 

•  Co-financing  is  sometimes  an  issue,  therefore  close  monitoring  by  NIPAC  will  be 

established from June 2010 onwards. 

•  Office space is a main issue; thus each beneficiary with such a problem should find a 
solution, and any potential beneficiary without sufficient office space should refrain to 
request an IPA project. NIPAC shall monitor this closely. 

•  Coordination and communication is an issue when a project has several beneficiaries. 
NIPAC  shall  improve  monitoring  of  projects,  and  efforts  in  inter  ministerial 
coordination should be done.  

•  EU  accession  requires  high  numbers  of  staff,  in  such  a  small  country;  this  is  a  real 
issue  in  the  public  administration  not  only  in  terms  of  number  but  also  in  terms  of 
qualification  and  English  speaking.  Stakeholders  (donors  and  beneficiaries)  shall 
ensure reasonable requirements / recruitment, in terms of staff for project management 
and wise selection. Donor coordination could also contribute to improve this.  

•  The  role  of  twinning  is  sometimes  not  fully  understood  and  should  not  be  under-
estimated.  Indeed,  technical  assistance  is  not  always  the  best  option  for  institution 
building in the fields of the Acquis; in addition, twinning partners should be carefully 

44  

Figures  include  only  Annual  Action  Programmes,  while  not  including  other  programmes  managed 
centrally,  such  as  Customs  and  Taxation,  or  the  running  costs  for  the  European  Agency  for 
Reconstruction 

106 

 
 
 
                                                 
  
selected.  In  the  future  IPA  programmes  will  consider  "twinning-lights"  as  much  as 
possible. 

•  Official donor coordination should imperatively improve and NIPAC or Office of the 

deputy PM will ensure this. 

•  Motivation is sometimes lacking, due to low wages. This is a widespread issue which 

unfortunately this IPA monitoring committee cannot address. 

In  the  course  of  2010,  mitigation  measures  were  established  for  several  of  the  issues 
mentioned; for example, the set-up of a donor coordination office within the Prime minister's 
office. 

107 

 
 
8. 

SERBIA 

8.1. 

Summary 

Programming  of  EU  assistance  during  2010  included  finalisation  and  approval  of  the  IPA 
2010 programme and the start of programming of the IPA 2011 programme. The elaboration 
of the IPA 2010 programme was shorter compared to the previous ones. One key reason was 
the  fact  that  there  was  a  substantial  increase  in  both  ownership  and  capacities  of  national 
bodies  responsible  for  the  IPA  programming  process,  following  the  technical  assistance 
support  provided  by  the  EU  during  the  previous  year.  As  a  consequence  the  Financing 
Decision  for  the  IPA  2010  programme  was  adopted  on  12  April  2010  and  the  Financing 
Agreement between the European Commission and the Republic of Serbia was signed on 25 
May 2010. The gradual move to sector based approach started during 2010 and had an impact 
on programming of IPA 2011. Especially the setting up of sectoral working groups by Serbian 
authorities further improved ownership and coordination both internally and with donors. The 
sectoral working groups will also help to further improve inter-institutional coordination. 

The targets for contracting and disbursement for 2010 were established in December 2009 and 
foresaw  EUR  200  million  for  contracting  and  EUR  184  million  for  disbursement  in  2010. 
These targets for 2010 were exceeded by EUR 2.9 million (1.45%) for contracting and EUR 
4.5 million (2.44%) for disbursement. On average, this performance represents an increase of 
43% in contracting compared with 2009 (excluding budget support).  

In  terms  of  implementation,  the  EU  Delegation  in  Belgrade  was  managing  a  portfolio  of 
ongoing projects amounting to EUR 606 million by the end of 2010, encompassing 7 annual 
programmes.  In  order  to  reach  these  high  contracting  and  disbursement  rates  increased 
cooperation with National Authorities at Central and Municipal level was essential, as was the 
prominent  role  played  by  the  Delegation  in  the  coordination  of  all  donors  and  International 
Financial Institutions (IFIs). Project implementation was assessed through a formal, external 
monitoring mechanism, which complemented the Delegation's internal monitoring of projects. 
During  2010  the  external  monitoring  mechanism  covered  108  projects  for  an  amount  of 
approximately  EUR  243.6  million  and  noting  that  the  average  performance  of  projects  was 
"good" (a rating of 3.04 out of 5). 

8.2. 

Strategic planning and programming  

8.2.1.  Multi-annual Indicative Planning Document  

The Government of Serbia, local stakeholders, the EU Member States, and other donors have 
all been consulted in the design for the Multi-annual Indicative Planning Document (MIPD) 
for  the  period  2011-13.  The  following  priorities,  which  are  in  line  with  the  EU  strategic 
framework  and  the  EU  Enlargement  strategy,  have  been  identified  for  IPA  support:  (1) 
Strengthening the rule of law and public administration; (2) Overcoming the economic crisis 
and improving competitiveness; and, (3) Social inclusion and reconciliation.  

To  achieve  the  priorities  selected  for  support  in  the  programming  period  2011-2013,  the 
European Commission will primarily focus EU assistance on the following sectors:  

(1) Justice and home affairs; 
(2) Public administration reform; 
(3) Social development; 

108 

 
 
(4) Private sector development; 
(5) Transport; 
(6) Environment, climate change and energy; and, 
(7) Agriculture and rural development. 

The consultation and coordination mechanisms that were established at the beginning of 2009 
functioned  well  in  2010  and  were  instrumental  in  planning  the  priority  sectors  for  MIPD 
2011-13.  These  mechanisms  consisted  of  monthly  EU  donor  meetings  and  two-monthly 
Informal Donor Group (IDG) meetings. In the monthly EU-27 assistance meetings chaired by 
the Delegation, information was also shared about the ongoing and planned activities of each 
Member State. In each meeting, a presentation of a specific sector was made, followed by an 
exchange  of  views  and  information  on  the  sector.  IDG  meetings  were  co-chaired  by  the 
Delegation and the World Bank and gathered all the main donors in Serbia in order to share 
information about respective activities and to discuss related issues.  

Table 1: MIFF45 allocations per component, in million EUR 

Component 
I  –  Transition  Assistance  and  Institution 
Building 
II – Cross-border cooperation 
TOTAL 

2010 

2011 

2012 

2010-2012 

186.20

189.96

193.80 

11.75
197.95

11.92
201.88

12.10 
205.90 

569.96

35.77
605.73

8.2.2.  Programming exercise  

8.2.2.1.  Component I 

The  programming  activity  during  2010  included  finalisation  and  approval  of  the  IPA  2010 
programme and start of programming of IPA  2011 programme. The Financing Decision for 
IPA 2010 programme was adopted on 12 April 2010 and the Financing Agreement signed on 
25  May  2010  by  the  European  Commission  and  the  Republic  of  Serbia.  The  2010  IPA 
programme  under  Component  I  included  27  projects  which  were  selected  in  line  with  the 
priorities  identified  in  the  MIPD  for  2009-2011.  The  distribution  under  Component  I  by 
priority  axis  was  the  following:  31%  Political  criteria  (7  projects),  43%  Socio-economic 
criteria (9 projects), 25% Ability to assume obligations of membership (10 projects), and 1% 
Supporting activities (1 project).  

The  programming  of  IPA  2010  took  into  account  the various lessons learned from previous 
CARDS  and  IPA  programming  exercises.  Assistance  had  to  complement  and  be  consistent 
with development and action plans of implementing institutions. Particular attention was paid 
for  the  preparedness  and  maturity  of  the  selected  projects,  absorption  capacity  and  past 
achievement records of implementing institutions. A very important aspect that contributed to 
efficient programming of IPA 2010 programme was a clear increase in ownership of national 
bodies  responsible  for  the  IPA  programming  process,  following  the  technical  assistance 
support provided by the EU during the past year.   

The programming of IPA 2011 started at the beginning of 2010 with a first meeting organised 
by Serbia's National IPA Coordinator (NIPAC), where the objectives for the new programme 

45 

Communication from the Commission to the European Parliament and the Council 'Instrument for Pre-
Accession  Assistance  (IPA)  Revised  Multi-Annual  Indicative  Financial  Framework  for  2011-2013', 
COM(2009) 543 of 14.10.2009  

109 

 
 
                                                 
were identified. As the national programme for IPA 2011 was prepared simultaneously with 
preparation of the MIPD for 2011-2013, the programme fully reflects the sectoral priorities of 
the new MIPD and takes into account the EU Strategy for the Danube Region and the Europe 
2020 Strategy. Several rounds of consultations were organised between the Commission and 
the  Serbian  authorities,  as  well  as  with  the  EU  Member  States,  other  donors  and  local 
stakeholders. 

IPA  2011  programming  was  positively  affected  by  the  gradual  move  to  sector  approach 
during 2010. Under the leadership of the NIPAC office the inter-institutional sectoral working 
groups  were  established.  The  working  groups  started  to  meet  on  a  regular  basis  to  discuss 
programming  and  implementation  of  financial  assistance.  The  preparation  of  the  needs 
assessment document for international financial assistance for 2011-13 and regular meetings 
of  the  sectoral  working  groups  enhanced  ownership  over  IPA  programming.  The  sectoral 
working groups were also a positive step towards better inter-institutional coordination, and is 
expected to positively effect implementation of IPA programmes in the future. Furthermore, 
consultation of civil society organisations and donors are organised for each sectoral working 
group, thus improving the overall strategic and coordinated approach. 

Table  2:  Indicative  financial  allocations  for  the  year  2010  per  component,  in  million 
EUR 

SERBIA 
I. Transition Assistance and Institution Building 
Of which: 

National Programme   
Tempus Programme* 
Nuclear Safety Programme* 

II. Cross-Border Cooperation 
Of which: 

CBC Serbia – Croatia 
CBC Serbia - BiH 
CBC Serbia - Montenegro 
CBC Serbia - Hungary 
CBC Serbia - Romania 
CBC Serbia - Bulgaria 
CBC IPA Adriatic 
Serbia's participation in ERDF transnational Programmes "South East Europe" 
and "Mediterranean"** 

2010 
186.846

174.8
7.0
5.0
12.247

1.0
1.0
0.6
2.5
3.0
2.4
0.6
1.1

TOTAL 
199.00
*  The  Nuclear  Safety  and  Tempus  Programmes  are  coordinated  and  implemented  under  the  relevant  Multi-
beneficiary IPA 2010 programme.  
** Management of the allocations for these programmes was cross-delegated to the Commission's DG Regional 
Policy (REGIO).  

46 

47  

The  difference  with  Table  1  is  explained  by  the  fact  that  EUR  600,000  were  reallocated  from 
Component II to Component I 
As  above.  Moreover,  additional  EUR  1.1  million  were  allocated  to  the  ERDF  transnational 
progreammes 

110 

 
 
                                                 
Table  3:  Indicative  financial  allocations  for  the  year  2010  under  the  National 
Programme, per priority axis and per project, in million EUR 

8.2.2.2.  Component II 

Priority Axis  Projects 
Political Criteria  

Support for the implementation of Public Administration reform process 
Support to the preparation for IPA component III 
Municipal Infrastructure  Support programme MISP 2010  
Support  for  the  Ministry  of  Finance-  treasury  administration  capacity 
building  
Project Against money laundering and terrorism financing in Serbia  
Further  alignment  of 
strengthening alternative sanction system 
Support to Civil society 

the  penal  system  with  EU  standards  and 

Economic Criteria  

Higher Education teaching infrastructure programme 
European South and South west Serbian Support Programme 
Development of palliative care services in the Republic in Serbia 
Implementation  of  strategy  for  fight  against  drugs  –  supply  reduction 
component 
Integrated innovation support programme 
Removal of UXO from Danube river 
Preparation  of  the  necessary  documentation  for  river  training  and 
dredging works on selected locations along the Danube river 
Supervision of road construction works on the corridor X 
Assistance to the digital broadcasting switchover in Serbia 

Ability to assume the obligations of membership 

Capacity  building  of  institutions  involve  in  migration  management  and 
reintegration of returnees in the Republic in Serbia 
Establishment  of  efficient  system  for  prevention  and  suppression  of 
illegal migrations on the territory of the Republic of Serbia 
PF  code  nr  and  project  Title  Strengthening  of  the  Serbian  market 
surveillance system for non-food and food products 
Institutional  and  capacity  building  and  support  to  agriculture  and  rural 
development in Serbia 
Establishment of the Serbian farm accountancy data network 
Equipment  and  courier  service  supply  and  capacity  building  of  Serbian 
National Referent Laboratories in food chain 
Strengthening  the  Serbian  environmental  inspectorate  and  relevant 
stakeholders 
Follow up technical Assistance to Srbijagas 
Construction of substations 400/110Kv Vranje4 and Leskovac2 
Implementation  of  Energy  component  of  the  National  strategy  for 
sustainable development 

Supporting programmes  

Project Preparation facility 

TOTAL 

Budget  
54.1
6.5
5.0
31.1
2.0

2.0
5.5

2.0
75.9
25.0
14.1
3.5
4.0

3.0
3.8
2.0

10.0
10.5
42.8
1.8

5.0

2.5

2.8

2.2
6.5

2.5

1.5
15.5
2.5

2.0
2.0
174.8

111 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Serbia is actively participating in three Cross-Border Cooperation Programmes (CBCs) with 
the  EU  Member  States  Bulgaria,  Hungary  and  Romania,  as  well  as  in  three  CBCs  with 
neighbouring countries Croatia, Bosnia and Herzegovina, and Montenegro.  

The main objectives of  this component were: i) to support cross-border economic, social and 
environmental cooperation; ii) to foster socio-economic development of border regions; iii) to 
address  common  challenges  in  fields  such  as  environment,  natural  and  cultural  heritage; 
iv) public health; v) to prevent of and the fight against organised crime; iv) to promote joint 
small  scale  local  actions  ("people-to-people")  with  a  view  to  encourage  contacts;  vi) 
communication  and  cooperation  between  local  communities  and  institutions  across  the 
borders;  vii)  to  support  accessibility,  networks  as  well  as  emergency  preparedness, 
particularly  in  relation  to  flood  prevention  and  control;  and,  viii)  to  address  cross-border 
pollution, food safety and health issues. 

All mentioned programmes were in an advanced stage of implementation over the reporting 
period. Following the establishment of the appropriate institutional and legal frameworks, all 
authorities  and  bodies  foreseen  by  the  applicable  rules  were  created  and  appropriate 
implementation capacities were developed.  

During  2010,  the  institutional  setup  for  the  management  of  Component  II  was  reorganised 
with  the  aim  of  streamlining  it  in  preparation  for  a  Decentralised  Implementation  System 
(DIS). The body in charge of programming and monitoring; the "CBC Unit", was functionally 
and logistically  separated from the  "implementation body" (whose functions were  attributed 
to the Ministry of Finance's Central Finance and Contracting Unit). 

IPA  Component  II  also  supported  the  participation  of  Serbia  in  two  Transnational  Cross-
Border Programmes: the South East Europe Programme (SEE) and the Adriatic Programme, 
although  participation  in  the  latter  was  on  a  phasing-out  basis,  and  was  limited  to  the 
participation of Serbian research, cultural and university institutions. 

With  a  view  to  integrate  IPA  and  the  ERDF  funds  under  the  direct  responsibility  of  the 
Managing  Authority,  the  SEE  programme  underwent  important  revisions  during  2010. 
Technical  details  on  the  institutional  reshaping  of  the  programme  were  discussed  with  the 
management  structure  of  the  Programme.  The  modified  draft  Operational  Programme  was 
submitted to  the  European Commission in November 2010. The overall management  of  the 
programme should, as a result, be greatly simplified with a corresponding reduction in timings 
and administrative costs. 

8.3. 

Implementation of assistance  

8.3.1. 

IPA 

8.3.1.1.  Success stories  

Environment and Spatial Planning 

Air quality is a problem in Serbia as in many transition economies, having a negative impact 
on  public  health,  flora  and  fauna,  and  even  the  neighboring  countries.  A  twinning  project 
"Strengthening  Administrative  Capacities  for  Implementation  of  Air  Quality  Management 
System" twinning project (IPA 2007, EUR 1 million) with the Czech Republic and Germany 
was  under  implementation  in  2010.  The  project  was  based  on  the  results  of  the  CARDS 
project, which included an investment of nearly EUR 3 million for establishment of a national 

112 

 
 
automatic air quality monitoring network. The project helped Serbia to substantially complete 
the legislative alignment with the EU air protection legislation.  Based on the data generated 
amongst others by the new EU-funded air quality monitoring network, it also  supported with 
Serbia's first preliminary air quality assessment by helping to distinguish between areas where 
air quality is good, where air quality is poor and where measures for air quality improvement 
are required.  

The  twinning  project  has  had  an  impact  on  the  definition  of  concrete  measures  for  the 
improvement  of  air  quality.  The  Serbian  municipal  administrations  are  now  developing  on 
pilot basis Cleaner Air Plans with short-, medium- and long-term measures for Serbia's most 
problematic agglomerations, i.e. Belgrade, Niš and Bor, where a mix between an overegged 
vehicle fleet, poor fuel standards and location specific industries are the principle sources of 
air pollution. The identified measures are various, including for example legislative changes 
and restricted accesses of old vehicles to city centres. Furthermore there is more transparency 
about  air  quality  problems  due  to  the  air  quality  database,  which  is  accessible  to  general 
public.    

Health sector 

In  2010  the  "Support  to  the  Health  Care  Accreditation  Agency"  technical  assistance  project 
(IPA 2007, EUR 1.5 million) provided support both with development of the Public Agency 
for Accreditation of Health Care Institutions and with the design and testing of the Agency's  
accreditation  process  for  Serbian  health  care  institutions.  The  project  has  had  an  impact  on 
Serbia's  health  care  reform  programme  by  improving  the  role  and  the  functioning  of  the 
Agency.  The  Agency  is  now  in  a  position  to  develop  certification  mechanisms,  which  will 
improve  the  overall  healthcare  sector  in  Serbia.  This  project  also  assisted  in  further 
developing and defining the culture of health care quality and the role of patients and medical 
professionals in quality assurance. A wider, long-term impact relates to the increased trust of 
health care service users in quality and patient safety. 

Local government 

In 2010, the 3-year project 'Strengthening Local Self Government in Serbia' (IPA 2007, EUR 
2 million) entered its second phase. The project was implemented by the Council of Europe. It 
supports  Serbia  to  develop  a  legal  framework  for  decentralisation  and  local  government 
capacity building. The second phase built on the achievements of the first phase (completed in 
2008)  and  supported  a  further  elaboration  of  the  decentralisation  strategy  and  the 
implementation of institutional and legal reforms in Serbian local government.  

The  'EXCHANGE  3  programme'  (IPA  2007,  EUR 11,9  million)  supports  local  self-
governments  in  implementing  projects  identified in  their  strategic  plans  and  local  economic 
development  plans.    Exchanges  between  EU  and  Serbian  municipalities  were  financed  on  a 
project basis through two calls for proposals. More than 30 projects were financed in a variety 
of  sectors  such  as  inclusive  governance,  education,  employment,  rural  development, 
economic development, tourism development and environmental protection. The programme 
strengthened  core  financial  management  capacity  in  local  self  governments,  improved  HR 
management for local governments and contributed to the finalisation and implementation of 
the national local self-government training strategy. It also supported the integrated process of 
programming in the area of local government and community development. 

113 

 
 
The  Municipal  Infrastructure  Support  Programme  (MISP)  (EUR 2.4  million)  provided 
technical  assistance  in  three  areas:  the  Public  Utilities  Companies  (PUC)  transformation 
strategy; programming and project preparation; and, to construction implementation through 
supervision  services  and  institutional  building  of  relevant  local  services.  In  addition  to  the 
technical  assistance,  EUR 35  million  has  been  allocated  for  capital  investment  in  municipal 
infrastructure  projects,  of  which  three  started  in  2010,  focusing  on  regional  water  supply 
(EUR 7.2 million),  regional  wastewater 
treatment  (EUR 9  million)  and  solid  waste 
management (EUR 4.5 million).  

Transport and Infrastructure 

In 2010 a number of important projects were implemented in the transport sector. The main 
project  "  Žeželj  Bridge  –  Rebuilding  Serbian  infrastructure"  (IPA  2009,  EUR  30  million) 
started. This is an important project with the purpose to build the new Žeželj Bridge and the 
associated  connecting  infrastructure.  The  project  aims  to  restore  full  road  and  rail  traffic 
across the Danube in Novi Sad and has a wide impact both in Serbia, neighbouring countries 
and  Europe,  as  Novi  Sad  is  located  on  the  international  'Corridor  X',  the  transport  artery 
connecting  Central  and  South  East  Europe.  A  project  "Implementation  of  the  European 
Common  Aviation  Area"  "  (IPA  2007,  EUR  2  million)  with  both  technical  assistance  and 
supply  components,  was  under  implementation  in  2010.  Technical  assistance  provided 
support  in  safety,  security,  air  traffic  management  and  airport  management,  resulting  in 
adoption  of  a  new  Aviation  Law.  The  project  results  include,  among  others  full  opening  of 
Serbian  skies  for  foreign  carriers,  adoption  of  a  State  Safety  Programme  (SSP),  large-scale 
training  programme  of  expert  staff  (1,275  student  days)  and  delivery  of  critical  security 
equipment  for  training  and  for  usage  on  airports.  The  project  has  improved  both  quality  of 
work of air traffic authorities and safety of air travelers. 

8.3.1.2.  Overview of IPA implementation in 2010 

Component I: Transition Assistance and Institution Building  

Table  4:  Status  of  implementation  of  IPA  financial  assistance  (Component  I)  as  of 
31 December 2010 (in million EUR) per annual programme  

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

Paid  % Paid  
Committed  Contracted  % Contracted
49.05%
80.86 
81.01%
22.03%
53.38%
37.15 
60.29%
62.54% 102.83 
2.81%
11.56%
4.92 
33.26%
51.62% 225.76 

164.84 
168.64 
170.55 
174.81 
678.84 

133.53
90.02
106.67
20.21
350.43

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 
Political criteria 
(of which civil society) 
Economic criteria 
Ability to assume membership obligations 
Support programmes 
TOTAL 

114 

% of 2007-2010 allocations 

38% 
1% 
35% 
24% 
3% 
100% 

 
 
 
 
For the IPA 2008, 2009 and 2010 programmes, the deadline for contracting is in the first half 
of  2012.  The  early  signature  of  the  Financing  Agreements  for  the  IPA  2009  and  IPA  2010 
programmes, on 10 February and 25 May 2010 respectively, allowed a timely implementation 
of  both  programmes.  As  a  consequence,  out  of  IPA  2009  and  2010  programmes,  contracts 
worth EUR 97.7 million were signed by the end of 2010. This is an important improvement 
and reduced considerably time between project design and project implementation. 

According to the external monitoring of projects covering 108 projects in 2010 for an amount of 
approximately EUR 243.6 million, the average performance was "good"; a rating 3.04 out of 
5.  This  is  a  weighted  average  of  each  project,  comparing:  relevance  and  quality  of  design, 
efficiency,  effectiveness,  impact  and  sustainability.  This  close  follow-up  and  assessment 
through a formal, external monitoring mechanism has complemented the internal monitoring 
carried out by task managers.  

Over the course of 2010, SIGMA (Support for Improvement in Governance and Management) 
completed  its  assistance  for  the  development  of  a  new  administrative  legal  framework, 
aligned  with  democratic  principles  and  standards,  as  practiced  by  EU  Member  States. 
Furthermore,  the  assistance  to  the  Ministry  of  Finance  in  promoting  and  establishing  a 
Coordination and Harmonisation Unit (CHU) was completed in April 2010. Between March 
and  June,  the  authorities  responsible  for  EU  integration  and  for  public  finance  explored 
together  the  possibilities  of  implementing  cutbacks  while  preserving  priorities  (“rational 
decremental  budgeting”).  Mid-2010,  SIGMA  started  a  mission  on  assistance  in  concession 
and the introduction of Public Private Partnerships in Serbia.  

With regard to TAIEX, there was a further increase in the use of the TAIEX instrument. In 
2010 the Serbian authorities submitted 159 requests for TAIEX support in comparison to 143 
requests  in  2009.  During  2010,  96  events  (either  in  Serbia  or  abroad)  were  organised  with 
Serbia  as  a  single  beneficiary,  representing  7.2%  of  all  classic  TAIEX  events.  Further  60 
events  (either  in  Serbia  or  abroad)  were  organised  with  Serbia  as  one  of  the  beneficiaries. 
Participation  of  Serbians  in  the  TAIEX  events  increased  from  3,241  participants  in  2009  to 
3,550 participants in 2010, representing 10.7% of all participants in the TAIEX events during 
2010. 

Twinning  has  become  recognised  by  the  Serbian  administration  as  an  important  instrument 
supporting  approximation  with  EU  legislation.  Twinning  coordination  continues  to  be 
enhanced  between  the  EU  Delegation  and  the  Serbian  administration,  with  strong  support 
from the Twinning team in DG Enlargement. The Serbian national contact point for Twinning 
is based in Serbia's European Integration Office and plays an active coordinating role between 
the  EU  Delegation  and  beneficiaries  in  the  ministries.  Following  selection  procedures,  nine 
Twinning projects started in 2010: 

•  Strengthening Administrative Capacities to protect Natural Areas; 
•  Strengthening  the  capacities  of  the  Republic  of  Serbia  for  the  absorption  of  EU  Rural 

Development funds in pre-accession period; 

•  Police Reform: Internal Affairs; 
•  Support to the Public Procurement Office; 
•  Harmonization  of  the  Serbian  Customs  Enforcement  Division  with  the  standards, 
organization  and  operational  methodology  of  EU  enforcement  agencies:  Component  3  – 
Risk Analysis and Risk Management and Post Clearance Audit; 
•  Harmonization with EU acquis in the Field of Transport – Phase II; 

115 

 
 
•  Strengthening institutional capacity in Hazardous Waste Management; 
•  Harmonisation  of  national  legislation  with  EU  legislation  for  placing  on  the  market  and 

control of Plant Protection Products and implementation of new legal provisions; 

•  Capacity building within the National Referent Laboratories Directorate. 

During  2010  Serbia  has  participated  in  a  number  of  EU  programmes  under  the  financial 
perspective 2007-13, including the 7th Framework Programme for research and technological 
development,  PROGRESS,  the  Entrepreneurship  and  Innovation  Programme  (EIP),  the  ICT 
Policy  Support  Programme,  the  Culture  Programme,  as  well  as  the  Customs  and  Fiscalis 
programmes.  

Component II: Cross-border Cooperation  

The  implementation  of  Component  II  (Cross-Border  Cooperation,  or  'CBC')  is  done  mainly 
through a bottom-up approach, favoured by Grant schemes based on joint calls for proposals 
fully involving local communities. During 2010 implementation started for grants financed by 
the Programmes between Serbia and Montenegro, Serbia and Bosnia and Herzegovina as well 
as Croatia and Serbia.  

Although  not  being  territorially  eligible  for  the  Programme  (lack  of  costal  area),  but  taking 
into  account  its  previous  eligibility  in  the  Italy–Adriatic  Programme  covering  2004-2006, 
Serbia has been granted a phasing out participation in the IPA Adriatic CBC Programme until 
2012  inclusive.  This  transitional  and  specific  support  allows  the  participation  of  Serbian 
partners  in  institutional  cooperation  activities  between  universities,  cultural  institutions,  and 
research institutes.  

The  first  calls  for  proposals  for  all  programmes,  both  the  programmes  with  Member  States 
and  between  candidate  and  potential  candidate  countries,  were  launched  and  completed  in 
2010. The contracts awarded first were signed at the end of 2010.   

One  important  success  was  an  event  in  November  held  in  Zlatibor  that  celebrated  the 
signature  of  the  first  round  of  grants  awarded  under  the  Programmes  between  Serbia  and 
Bosnia Herzegovina and between Serbia and Montenegro. A total of 25 contracts have been 
signed for a total amount of EUR 4.12 million to fund the activities of 50 applicants from the 
three  countries  involved,  half  of  which  are  from  Serbia.  The  event  saw  the  participation  of 
high level government representatives from all three countries involved, including the deputy 
Prime  Minister  of  Serbia,  achieving  high  resonance  in  regional  and  national  media  and 
drawing  the  public's  attention  to  the  impact  of  EU  funds  on  economic  development  in 
peripheral regions. 

A  few  of  the  more  advanced  programmes  launched  the  second  round  of  calls  for  proposals 
(e.g.  the  SEE  programme,  the  CBC  Hungary-Serbia  and  the  CBC  Romania-Serbia),  while 
preparations are at an advanced stage for the second round of calls for proposals in all other 
programmes. The actual launch is expected to take place during the first semester of 2011. 

Component  II  is  also  financing  the  participation  of  Serbia  in  the  European  Regional 
Development  Fund's  (ERDF)  European  territorial  cooperation  transnational  programme 
"South  East  Europe".  Under  the  first  call  for  proposals,  17  projects  (for  a  total  value  of 
EUR 1.8 million)  with  Serbian  partners  were  selected  for  financing  and  by  the  end  of  2010 
were  in  the  process  of  implementation.  The  selection  process  within  the  second  call  for 
proposals  was  undertaken  in  2010.  By  the  end  of  the  year,  a  total  of  21  applications  were 
provisionally  selected,  9  of  which  included  partners  from  Serbia.  Preparation  of  the  third 

116 

 
 
strategic  call  for  proposals  also  took  place  in  2010.  Selection  priorities  were  defined  and 
relevant stakeholders in all participating countries were identified. 

Tables 6: Status of implementation of IPA financial assistance (Component II) as of 31 
December 2010 (in million EUR) per annual programme48  

IPA 2007-2010 

Committed 
43.96

Paid 

% Paid 

6.24

14.19% 

Out of which, the breakdown for the intra-Western Balkans CBC Programmes and the ERDF 
Transnational Programmes (South-East Europe) is: 

Committed  Contracted  % Contracted 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

3.71 
3.59 
3.86 
3.70 
14.86 

2.67
1.81
0
0
4.48

71.97% 1.68 
50.42% 0.95 
0 
0 
30.15% 2.63 

Paid  % Paid 
45.28%
26.46%
0%
0%
17.70%

0%
0%

Table 7: Distribution of total committed funds (2007-2010 allocations) by programmes 

Programmes 

CBC with Member States 
CBC within Western Balkans 
Participation to ERDF Transnational Programmes 
TOTAL 

% of 2007-2010 allocations  
65%
25%
10%
100%

8.3.1.3.  Implementation Modalities and Structures  

As a potential candidate country, Serbia receives pre-accession financial assistance from the 
Instrument  for  Pre-Accession  Assistance  (IPA)  under  the  first  two  IPA  components 
(Transition  Assistance  &  Institution  Building  and  Cross-border  Cooperation).  The  EU 
Delegation in Belgrade (EUD) is currently responsible for managing these two components.  

Serbia has started preparations for the introduction of a decentralised implementation system 
(DIS)  for  management  of  IPA  funds.  DIS  will  enable  Serbia  to  take  responsibility  for,  and 
hence  increased  ownership  over,  the  implementation  of  IPA  components  and  for  the  future 
management of EU Structural and Cohesion Funds.  

Serbia  has  taken  a  number  of  steps  towards  achieving  DIS  accreditation  in  line  with  the 
Commission's  "  Roadmap  to  decentralised  system  for  IPA",  which  foresees  five  different 
stages  prior  introduction  of  DIS.  During  2010  Serbia  continued  working  towards  this 
objective: 

Components I, II, III and IV: During 2010 Serbia moved from Stage 1 (gap assessment) to 
Stage 2 (gap-plugging). After the first gap assessment in 2009 to determine to what extent the 
conditions for a DIS are in place for Components I and II, a subsequent gap assessment was 
performed  for  Components  III  and  IV  and  the  gap  assessment  report  published  in  March 
2010.  EU-funded  technical  assistance  supporting  relevant  national  authorities  started  for 

48  

Figures include the CBC Programmes with EU Member States and IPA Adriatic 

117 

 
 
 
 
 
                                                 
Components I and II in December 2009 and for Components III and IV in September 2010.  
Implementation  of  these  two  projects  was  ongoing  during  2010.  During  this  gap  plugging 
phase, training is provided to staff of the relevant structures and manuals and procedures are 
drafted. 

Component V: The required structures, i.e. the future paying agency and the future managing 
authority,  were  being  established  during  2010  (and  have  continued  to  be  established  during 
2011)  with  support  of  both  a  twinning  project,  which  started  in  July  2010  and  a  technical 
assistance project, which started in November 2010.  

8.3.1.4.  Monitoring  

A  formalised,  Result  Oriented  Monitoring  (ROM)  mechanism,  outsourced  to  a  specialised 
contractor, has been in place since 2009. For 2010, the Delegation adopted a monitoring plan 
and  regularly  updated  it  with  the  ROM  team.  In  2010,  108  project  monitoring  reports  were 
produced covering approximately EUR 250 million of ongoing assistance. According to  the 
ROM mechanism, monitored projects are classified as A (very good), B (good), C (problems) 
and D (serious deficiencies). The table below shows the frequency of A and B occurrences in 
relation to EU funded projects in Serbia, along with the average score in 2010. 

Criterion 

Relevance/Quality of design 
Efficiency 
Effectiveness 
Impact 
Sustainability 
Average 

Good or Very Good 
(A or B) 
97 % 
84 % 
85 % 
95 % 
95 % 
91% 

Average Score  
(out of 5)  
3.15 
2.98 
3.01 
3.04 
3.01 
3.04 

None of the projects monitored was classified as "D" (having "Serious deficiencies"). Factors 
that contributed to the above results included:  

1)  Involvement of all relevant project stakeholders; 
2)  Ownership and commitment of the beneficiary stakeholders; 
3)  Professional  and  “Final  Beneficiary-Oriented”  project  management,  based  on  a 

bottom-up approach; 

4)  Good adaptation capacity towards changing needs by project teams; and 
5)  Interaction,  supervision  and  coordination  with  the  project  partners  at  project  design 

stage by the EU Delegation;  

In addition to ROM, regular internal monitoring  has been  conducted by the  EU Delegation. 
This has included monthly (minimum) project meetings between the EU Delegation, project 
team  leaders  and  beneficiary  organizations  and  other  stakeholders.  Also,  regular  internal 
meetings  within  the  EU  Delegation  have  been  organized  to  follow  up  on  project 
implementation  and  to  highlight  any  potential  bottlenecks  for  project  implementation. 
Furthermore,  ad  hoc  sectoral  meetings  between  the  EU  Delegation,  beneficiary  institutions 
and  other  stakeholders  (e.g.  donors,  consultants/contractors,  the  Serbian  EU  Integration 
Office,  National  Audit  Coordinators  have  been  organized  on  a  regular  basis.  The  EU 
Delegation  has  also  organized  regular  on-the-spot  monitoring  visits  to  projects.  All  these 

118 

 
 
 
 
various monitoring mechanisms aim to identify any potential problems as early as possible so 
that appropriate corrective measures can be taken to allow proper implementation of projects.   

8.3.2.  CARDS  

8.3.2.1.  Sectors with positive results/ Success stories 

Orthophoto Maps project (CARDS 2005, EUR 2.6 million, technical assistance) 

Implementation of the project activities with the Geodetic Authority of Serbia were completed 
in  December  2010.  The  project  took  several  years  and  entailed  taking  areal  photos  all  over 
Serbia. These photos were then digitised into orthophoto maps. The project helped to improve 
a database, which is necessary for the access to community funding as an EU member state. 
Following the project, the Geodetic Authority now disposes the necessary means to assist the 
transition from landbooks to a modern, reliable and unified real-estate cadastre in Serbia and 
to allow for more efficient spatial management. The good results of this project have also had 
a positive impact on the increase of legal certainty in land and property issues.  

The Geodetic Authority is able to use the digital data for improved cadastre verifications and 
will contribute to a sound tax reviewing facility in this area. The project facilitated the online 
access  to  the  digital  data  production,  which  created  a  wider  understanding  of  mapping 
exercises within the civil society and enabled better institutional coordination.  

Project Preparation facility (PPF) (CARDS 2006, EUR 1.9 million, technical assistance)  

The Project Preparation facility (PPF) project started in 2008 and was finished in July 2010. It 
achieved particularly good results, as it helped substantially to strengthen Serbian ownership 
of  the  programming  process  and  improve  absorption  capacity.  Improvement  of  the 
beneficiaries’  ownership  over  the  programming  process,  i.e.  in  identification,  selection  and 
development  of  projects  would  later  on  ensure  higher  rates  of  absorption  of  funds  and 
enhanced quality of implementation. These results are particularly important considering that 
Serbia  is  preparing  for  the  decentralised  management  of  EU  funds.  More  concretely,  the 
project supported national authorities with: 

(cid:131)  Programming of the IPA 2009 and 2010 programmes, including preparation of Project 
Fiches  under  IPA  component  I,  and  preparation  of  IPA  2009  Budget  support  for 
Serbia; 

(cid:131)  Preparation of a first draft for the IPA 2011 programme; 

(cid:131)  Drafting of supporting documents for the ongoing IPA programmes (ToRs, Twinning 

Fiches, Technical specifications); 

(cid:131)  Provision of training on programming and project preparation; and, 

(cid:131)  Development of an interactive training system for distance learning (also known as a 

'MOODLE'.) 

The  project  was  monitored  by  ROM  and  the  final  monitoring  report  stated  as  follows: 
“Results have been achieved as foreseen and expanded due to the dedication, knowledge and 
commitment  of  the  personnel  involved.  The  accomplished  synergy  between  the  beneficiary 
and project partners is indicating how mutual coordination can serve its purpose, even in the 

119 

 
 
most  difficult  implementing  environment.  This  layout  is  making  the  projects'  added  value 
even higher, due to the gained skills, experience and knowledge by the personnel involved.” 

Support to National Investment Planning and Implementation (CARDS 2006, EUR 1.4 
million, technical assistance) 

This  project  focused  on  improving  capital  expenditure,  the  macro-fiscal  framework, 
macroeconomic policy coordination and budgetary processes. The project contributed to the 
improvement  of  national  strategic  investment  expenditure  priorities  by  developing  and 
detailing categorisation and prioritization methods for investment projects and the necessary 
information  gathering  tools  for  the  tracking  and  monitoring  of  line-ministry  expenditure 
against plans and budgets. The project also improved the capacity of staff of the Ministry of 
Finance and related line-ministries through training, study tours and expert working groups. It 
generally improved the overall policy making system.  

The Project also supported the Treasury with a number of econometric models and tools that 
have been directly embedded into the Treasury system such as the ability to calculate macro-
economic stabilization, the long-term projections of Serbian indicators to 2050, and the ability 
to estimate budget revenues and to forecast these revenues on a daily basis so that spending 
needs and revenues collected can be matched. This last process has been incorporated into the 
Treasury’s newly established dealing room and is used on a daily basis. As a consequence of 
these improvements to the Serbia’s public investment and budgetary planning, a strong impact 
on the socio-economic development of Serbia, in line with EU standards, has been achieved.  

Ministry  of  the  Interior  -  Border  Police  Directorate  (CARDS  2006,  EUR  1.5  million, 
twinning) 

The Serbian Government adopted the Integrated Border Management (IBM) strategy and the 
associated  action  plan  in  2006.  Although  the  Serbian  administrations  were  making  steady 
progress  in  some  important  areas  of  IBM,  a  structured  approach  in  the  implementation 
process  was  missing.  The  overall  objective  of  this  project  was  to  contribute  to  the  “open 
borders” for citizens and goods and at the same time ensure that Serbia’s borders are better 
controlled and secure. The project undertook a review of the legal framework, and provided 
substantial  recommendations  for  updating  existing  laws  and  implementing  regulations. 
Furthermore,  the  IBM  strategy  and  Action  plan  for  all  four  types  of  border  crossing  were 
updated.  Guidelines  describing  the  workflow  at  all  four  types  of  border  crossings  were 
developed as well.  

The main result of the twinning project was the establishment of coordinating structures at all 
levels  that  allow  permanent  communication  and  information  exchange,  especially  on  the 
operational  level  of  the  integrated  management  of  the  borders.  The  project  contributed  to 
efficient and effective border management, which enhances citizens' security and at the same 
time  facilitates  travel  conditions.  The  project  had  an  impact  in  alleviating  threats  related  to 
malfunctioning  border  management  systems,  such  as  smuggling  of  goods  and  trafficking  in 
human beings, drugs and arms, because these threats can be now more effectively addressed 
due to improved communication, exchange of information and overall cooperation among the 
authorities responsible for the management of state borders. The project also contributed for 
facilitation of cross–border trade, which further contributes for economic growth and poverty 
reduction in long-term. Enhanced cross-border flows will also have impact on improvement of 
relations between the neighbouring countries in long-term.  

120 

 
 
8.3.2.2.  Lessons learned 

The final CARDS Evaluation was performed in 2009 and is incorporated in the annual 2009 
report for Serbia.  

8.3.2.3.  Management performance 

In  2010  the  Delegation  continued  to  implement  the  remaining  CARDS  programmes  (33 
projects financed under CARDS are still active from the administrative and implementation 
point  of  view).  As  described  in  the  table  below,  the  overall  contracting  rate  for  CARDS 
projects is over 99%. The disbursement percentage is also extremely high.  

Table 8: Status of financial assistance at the end of December 2010 (in million EUR) – 
CARDS annual programmes49   

Allocated  Contracted  Contracted 

CARDS 2001 
CARDS 2002 
CARDS 2003 
CARDS 2004 
CARDS 2005 
CARDS 2006 
Total 

143.50 
170.70 
220.00 
207.13 
147.17 
157.46 
1045.96 

143.50
164.99
213.76
205.42
144.07
144.08
1015.82

8.3.2.4.  Institution Building highlights 

(%) 

Paid 

100% 143.50 

Paid 
(%) 
100% 
96.65% 164.99  96.65% 
97.16% 213.65  97.11% 
99.17% 203.26  98.13% 
97.89% 140.19  95.26% 
91.50% 129.27  82.10% 
97.12% 994.86  95.11% 

The  programming  exercise  of  CARDS  concentrated  on  institution  building  and  the 
introduction  of  IPA  assistance.  The  priorities  were  strengthening  capacities  of  the 
Government,  economic  development  and  reform  in  line  with  the  European  Partnership 
recommendations, including promoting good governance and the strengthening of rule of law.   

Among  the  remaining  CARDS  project  that  will  be  completed  in  2011  in  the  Infrastructure 
sector  a  programme  implementation  unit  has  been  established  in  the  Serbian  Railway 
Company (ZTP) with the objective to assist the Railway Company in the implementation of 
infrastructure  projects  and  rehabilitation  of  rolling  stock,  as  well  as  to  provide  capacity 
building to the management of the Railway Company. 

In the field of consumer protection, a CARDS project is providing technical assistance to the 
Ministry of Trade and Services, line ministries, law enforcement bodies involved in consumer 
protection and independent consumer organizations. The project contributed to the drafting of 
a new Law on Consumer Protection, which was adopted in October 2010.  

49  

Figures  include  only  Annual  Action  Programmes,  while  not  including  other  programmes  managed 
centrally,  such  as  Customs  and  Taxation,  or  the  running  costs  for  the  European  Agency  for 
Reconstruction 

121 

 
 
 
                                                 
9. 

TURKEY  

9.1. 

Summary 

The year in review has registered positive developments in the management of the financial 
assistance and Turkey is continuously improving the expertise in key institutions in charge of 
programming,  implementation  and  monitoring  of  EU  funds.  Numerous  projects  financed 
under  the  Turkish  pre-Accession  Instrument  (TPA)  have  been  completed  and  the 
implementation  of  IPA  projects  is  now  well  underway  and  is  starting  to  show  a  substantial 
impact.  Positive  results  have  been  achieved  in  several  domains  such  as  social  inclusion, 
education and entrepreneurship.  

Important reforms have been brought under way to improve the programming and monitoring 
of funds. Efforts were made to better focus projects on the political criteria of the accession 
process as well as on aligning them with sector priorities and putting them in a longer term 
perspective.  Particular  emphasis  has  been  given  to  law  enforcements  services  and  human 
rights as well as civil society dialogue development, being fundamental for Turkey's political 
reform process. 

The extension of the coordination groups run by the EU Delegation to other donors beside the 
International Monetary Funds represented an important step to avoid duplications of financial 
assistance  and  generate  added  value  trough  the  support  of  complementary  actions  when 
appropriate. 

The year 2010 has also seen the preparation of the MIPD 2011-2013, which follows a sectoral 
approach. The beneficiary, Member States and other donors have been actively involved and 
welcomed  a  more  consultative  process  in  drafting  the  MIPD,  which  ensures  a  higher 
ownership. The programming of IPA funds now follows a more sector based approach, which 
includes  better  link  of  assistance to  sector  strategies  and  political  priorities,  development  of 
more  measurable  results  and  indicators,  enhanced  donor  coordination  and  improved 
monitoring systems to measure performance.  

9.2. 

Strategic planning and programming   

9.2.1.  Multi-annual Indicative Planning Document  

The  Multi-annual  indicative  planning  document  2009-2010  was  still  being  applied  in  2010. 
An assessment of the validity of the MIPD 2009-2011 has been conducted together with the 
Turkish authorities, and on this basis the strategic approach was considered to be still valid for 
programming in 2010.  

The  new  Multi-Annual  Indicative  Planning  Document  for  Turkey  covering  the  years  2011-
2013 was drafted during 2010 based on the needs identified in the Accession Partnership of 
the country as well as the latest progress report and the country's own strategies. It takes into 
account  the  lessons  learned  outlined  in  the  Commission’s  own  assessment  of  past 
performance and on recent audits and evaluations. The MIPD 2011-2013 was adopted on 28 
June 2011 through Commission Decision C(2011)4490. 

The MIPD 2011-2013 puts the stress on ownership and a more sector based approach and on 
ownership  towards  setting  priorities  for  assistance  as  it  was  drafted  based  on  the  priorities 

122 

 
 
established by Turkish authorities. To support a more effective delivery of IPA and to move 
to  a  more  sector  based  approach  with  more  focus  and  impact,  the  following  strategic 
objectives for the new MIPD have been chosen: 

1. The first priority for Turkey is to make progress in the critical areas of rule of law in order 
to tackle key reforms of the judiciary and fundamental rights.  

2. A second priority is to adopt the acquis in areas where there is complex legislation or costly 
requirements  to  adopt  EU  standards  in  areas  such  as  transport,  agriculture,  food  safety, 
environment, climate change and energy.  

3. A third priority is to support Turkey in its economic and social development and to enhance 
competitiveness.  

4. Horizontal priorities that will be supported as cross-cutting themes are participation of civil 
society,  participation  in  EU  programmes,  a  high  degree  of  protection  of  the  environment, 
mainstreaming  of  climate  change  considerations,  equal  opportunities  for  men  and  women, 
support  to  disadvantaged  and  vulnerable  groups  as  well  as  the  development  of  good 
neighbourly  relations.  These  horizontal  priorities  may  be  supported  in  their  own  right  or  as 
part of programmes and projects in other priority areas.  

In line with these priorities, the choice of sectors in the MIPD has therefore been carried out 
bearing in mind the remaining challenges for Turkey to fully meet the Copenhagen criteria for 
membership  with  particular  focus  on  the  political  criteria.  The  new  MIPD  for  Turkey  for 
2011-2013 focuses EUR 2.56 billion of assistance on 7 sectors: 

- Justice, home affairs and fundamental rights 

- Private sector development 

- Environment and climate change 

- Transport 

- Energy 

- Social development 

- Agriculture and rural development  

The  selection  of  a  limited  number  of  sectors  allows  for  a  targeted  approach  towards  EU 
assistance  that  aims  to  deliver  the  expected  results  and  meet  the  envisaged  objectives  in  a 
sustainable manner. The sectors  and priorities chosen have potential to support the catalytic 
effect  and  additional  EU  support.  Where  linkages  between  sectors  exist,  these  will  be 
explored in order to ensure that assistance provided is mutually reinforcing. This is especially 
the  case  where  there  is  strong  ownership  and  political  commitments  for  the  reforms  on  the 
Turkish side and comprehensive sector strategies either exist or are under way. EU assistance 
will provide value added and often kick start important reform processes that will continue in 
a sustainable manner beyond the duration of the EU programmes. 

The MIPD was drafted by the Commission based on input from sectoral working groups in 
Turkey. National consultation meetings took place in Ankara on 24 and 25 November 2010 

123 

 
 
involving  around  70  participants  from  the  public  administration,  30  participants  from  the 
Embassies of Member States, IFIs, bilateral and international organisations and civil society 
organisations. These constructive discussions were much appreciated by all stakeholders and 
increased ownership of Turkish authorities in the programming of EU funds. 

 Based  on  the  Commission’s  own  assessment  of  past  performance  and  recent  audits  and 
evaluations50  the  following  lessons  learnt  have  been  taken  on  board  while  drafting  in  order 
improve the financial assistance:  

(cid:190)  Given  the  often  insufficient  strategic  underpinning  of  assistance  provided,  the  new 
MIPD for 2011-2013 aims to be a step in the direction of establishing a more strategic 
and focussed programming framework for IPA in particular through the introduction of 
sectors.  A  review  of  the  sectoral  definitions  under  IPA  Component  I  aim  to  ensure  a 
higher degree of consistency and clearer links between the MIPD, annual programmes 
and monitoring committees. 

(cid:190)  Although projects in the past have generally achieved their intended outputs and results 
were likely to be sustainable, the results and impact of assistance has not always been 
measurable. Further efforts are therefore made in the programme and project design to 
have measurable objectives and results and adequate indicators.  

(cid:190) 

Extended use of the twinning instrument is also envisaged to improve the relationship 
between  Turkish  ministries  and  their  counterparts  in  EU  Member  States  and  to  make 
full use of the potential gains from exchange of know-how between the Member States 
and Turkey on the implementation of the acquis.  

(cid:190)  Within  the  field  of  civil  society  efforts  are  focused  on  bringing  together  key 
organisations  in  order  to  develop  a  clear  strategy  for  the  development  of  civil  society 
and to maximize the contribution which civil society can make to Turkey’s preparations 
for EU membership. 

(cid:190)  Considering  the  need  for  enhanced  donor  coordination,  under  the  lead  of  the  EU 
Delegation  in  Turkey,  EU  member  states,  IFIs  and  other  international  and  bilateral 
donors have accepted a systematically enlarged coordination at the level of all relevant 
actors  engaged  in  Turkey  in  financial  and  technical  cooperation.  These  efforts  reflect 
the principles of aid effectiveness laid down in the Paris and Accra summits.  

(cid:190) 

The  evaluation  report  on  Gender  Equality  in  Turkey,  which  was  financed  by  the 
Commission,  emphasised  the  need  to  systematically  carry  out  gender  mainstreaming 
within  the  IPA  structures,  while  the  thematic  report  focusing  political  criteria 
highlighted the need for priority indicators - particularly in the field of gender equality - 
to ensure sufficient prioritisation between projects 

The recommendations of the evaluations which have been finalised during 2010 concerning 
strategic planning have been taken into account in the new 2011-2013 MIPD i.e.  the Country 
Programme  Interim  Evaluation  of  EU  pre-accession  assistance  to  Turkey,  concluded  that 

50  

An  evaluation  on  the  intervention  logic  for  programming  pre-accession  assistance  to  Turkey  under  IPA  was 
completed in September 2009: "Ad Hoc Evaluation of the European Commission’s intervention logic for Financial 
Assistance in candidate countries and key lessons for MIPD 2010-2012 revision A case study – Turkey". A number 
of thematic evaluations were also carried out between 2008 and 2010. A Country Programme Interim Evaluation of 
EU pre-accession assistance to Turkey was finalized in 2010) 

124 

 
 
 
                                                 
MIPD should be a real multi-annual strategic document used by all stakeholders as the main 
reference  of  EU  pre-accession  assistance.  The  evaluation  on  Stakeholder  Participation  in 
Programming and Implementation of Pre-Accession Assistance to Turkey concluded that the 
strategic approach of stakeholder involvement should be reinforced and linkages with the new 
sectoral strategies being put in place.     

As  concerns  a  three-year  planning  period,  considering  the  dynamic  nature  of  accession 
negotiations and EU Turkey relations, although a longer term planning period is desirable a 
three year review is adequate for the planning of assistance. Planning needs to continue to be 
based on the pace of negotiations, Accession Partnership and NPAA (National Programme for 
the Adoption of the acquis) and updates are required in line with the changes of these basic 
documents  and  in  accordance  with  the  development  of  the  acquis.  It  is  also  strongly 
encouraged  to  increase  freedom  to  frontload  or  backload  spending  within  this  multi  annual 
envelop  in  order  to  better  adapt  to  political  circumstances  such  as  political  elections,  slow 
negotiation and absorption of funds.  

Table 1: MIFF51 allocations per component, in million EUR 

Component 
I  –  Transition  Assistance  and  Institution 
Building 
II – Cross-border cooperation 
III – Regional Development 
IV – Human Resources Development 
V – Rural Development 
TOTAL 

2010 
211.31

2011 
228.62

2012 
233.90 

2010-2012 
673.83

9.59
238.10
63.40
131.30
653.70

9.78
293.40
77.60
172.50
781.90

9.97 
367.81 
89.93 
197.89 
899.50 

29.45
899.31
230.93
501.69
2335.10

9.2.2.  Programming exercise  

9.2.2.1.  Component I  

The  2010  programming  exercise  under  Component  I  started  in  2009  and  was  completed  in 
May 2010 when the selection of the projects to be supported was finalised. The programme 
was presented on 27 September 2010 by the Commission to the IPA Management Committee 
who gave its approval. After its adoption on 23 November, the first Financing Agreement was 
signed on 17 December 2010. 

The 2010 National Programme for Turkey under component I included 33 projects selected in 
line  with  the  priorities  identified  in  the  2009-2011  MIPD.  The  projects  have  been  selected 
after analysis of the Turkish authorities and consultation with the Commission, according to 
the  priorities  identified  in  the  Accession  Partnership,  the  screening  process  and  ongoing 
negotiations in the different chapters of the acquis.  

The distribution within IPA 2010 Component I by priority axis was the following: 14.92 % 
Political criteria, 46.54 % acquis harmonisation, 35.46 % Civil Society Dialogue, and 3.08 % 
Supporting Activities.  

51 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

125 

 
 
 
                                                 
As part of the programming process, only projects that have achieved sufficient readiness for 
implementation  have  been  accepted.  Efforts  were  made  to  better  focus  projects  on  the 
political priorities of the accession process as well as on aligning them with sector priorities 
and putting them in a longer term perspective. 

Under the 2010 programme there were 13 projects which focus on judicial reform, support to 
law enforcements services and human rights, being fundamental for Turkey's political reform 
process. Strong emphasis was given on promoting women's and children's rights: for example 
the projects 'Support to the Local Human Rights Boards and Women’s Rights Awareness' (EU 
contribution  EUR  2.3  million  and    'Prevention  of  Domestic  Violence  against  Women'  (EU 
contribution  EUR  2.8  million)  aims  at  improving  human  rights  violation  complaints  and 
investigation mechanisms and to raise awareness among the society on human rights, with a 
special  focus  on  women’s  participation  in  social,  economic  and  cultural  life  as  well  as  to 
prevent  domestic  violence  and  enhance  human  rights  for  women.  The  project  'Improved 
Relations  between  Mass  Media  and  Judiciary'  aims  at  supporting  the  setting  up  of  a 
transparency  and 
spokesperson  system 
communication  on  judicial  cases.  Moreover,  the  project  should  result  in  improved  relations 
between  the  independent  media  and  judiciary  in  terms  of  protecting  fundamental  rights  and 
freedom of expression (EU contribution EUR 1.6 million).  Implementation of these projects 
is expected to start in 2012.  

judiciary,  which  should 

increase 

the 

for 

The  2010  National  Programme  also  addressed  the  need  for  continuation  of  the  EU-Turkey 
civil society dialogue (CSD), i.e. the 2010 project Civil Society Dialogue between the EU and 
Turkey-III  was  built  on  two  previous  projects:  the  2006  project  Promotion  of  Civil  Society 
Dialogue  between  the  European  Union  and  Turkey  and  the  2007  project  “Promotion  of  the 
Civil  Society  Dialogue  between  European  Union  and  Turkey-II”.  The  2006  project 
encompassed four grant schemes amounting to EUR 19,3 million. The aim was to establish a 
framework for cooperation, support the establishment of partnerships, and promote dialogue 
between the following categories of Turkish and EU counterparts. The follow up, project in 
2007 covers three grant schemes amounting to EUR 4.2 million and aims, like its precursor at 
establishing  a  framework  for  cooperation,  supporting  the  establishment  of  partnerships  and 
promoting dialogue between the civil societies of Turkish and EU counterparts. 

The  EUR  9.6  million  project  included  in  the  2010  programme  will  build  on  the  2006  and 
2007  projects  under  CSD.  It  aims  to  establish  strong  links  and  a  high  level  of  cooperation 
between civil society in Turkey and the EU Member States through a concrete civil society 
dialogue on the themes of “political criteria" (40 grants), “media" (20 grants) and “EU policy" 
(40 grants). 

All  three  civil  society  dialogue  projects  have  contributed  to  the  exchange  of  opinions,  to 
sharing experiences and best practice from the EU and candidate countries and to discussing 
perceptions of culture and values. The overarching goal of the projects was to encourage an 
effective civil society and its participation in the political, cultural and economic development 
of Turkey. 

There is continuous information exchange between the EU Delegation in Ankara and donor 
organizations working in Turkey with a view to avoid duplication of financial assistance and 
support complementary actions where appropriate. During 2010 the Commission and the EU 
Delegation  in  Ankara  conducted  several  coordination  meetings  on  the  coordination  of 
financial cooperation in Turkey with other donors.  

126 

 
 
The  EU  Delegation's  proposal  for  a  systematically  enlarged  coordination  at  the  level  of  all 
relevant actors engaged in Turkey in financial and technical cooperation was accepted by EU 
member  states  and  the  coordination  group  was  extended  to  include  different  IFIs  (World 
Bank, AFD, EIB, KFW, JICA, IDB), UN agencies and other bilateral actors such as USA and 
Canada,  beside  the  IMF.  So  as  to  exchange  information  on  sectoral  issues  and  financial 
cooperation  the  following  thematic  working  groups  were  established :  1)  Governance, 
Democracy  and  Human  Rights;  2)  Migration;  3)  Economic  governance;  4)  Regional 
development  (including  private  sector  and  rural  development);  5)  Employment  and  social 
policies;  6)  Environment,  energy  and  sustainable  development;  7)  Transport.  Alongside 
working group meeting the EU Delegation continued to hold ad hoc bilateral meetings with 
representatives of the Member States, IFIs and international organisations on the coordination 
of assistance in specific areas.  

A joint European Commission and World Bank coordination meeting was also organised in 
Brussels  on  7  December,  following  the  2010  IPA  conference,  to  discuss  opportunities  to 
strengthen  operational  coordination  between  the  two  institutions.  The  meeting  intended  to 
strengthen  the  impact  and  sustainability  of  respective  financial  and  technical  programs  with 
Turkey  by  exchanging  views  on  economic,  social  and  administrative  challenges  and 
opportunities  for  Turkey  in  relation  to  its  EU  accession  process;  sharing  information  on 
existing  programs  and  exploring  concrete  opportunities  for  collaboration.  The  Commission 
and  the  World  Bank  agreed  that  the  dialogue  and  exchange  of  information  on  ongoing  and 
planned  assistance 
for  Turkey  will  be  enhanced.  Energy,  Environment,  Skills, 
Competitiveness, Public Administration Reform and Food Safety have been identified by both 
partners as potential priorities for increasing collaboration and impact. The Commission and 
the World Bank are determined to coordinate their future strategies and their implementation 
(CPS  and  MIPD)  in  order  to  explore  further  areas  where  synergy  and  value  added  can  be 
found through a joint approach. Where possible, in such areas the Turkish authorities will be 
approached in a coordinated manner by the two institutions. 

The  2011  Programming  under  IPA  component  I  has been already well advanced and a  first 
part of the programme (consisting of the deferred 2010 projects) was finalised by the end of 
2010.  As  concerns  the  second  package  for  the  2011  programme  the  project  proposals  have 
been assessed by the Commission by the end of 2010. The second part of 2011 programme 
should be presented at the IPA Committee meeting in September 

The National Programme 2011 part I was drafted in the end of 2010 taking into account the 
new MIPD 2011-2013 sectoral approach and consists of three sectors: Justice, Home Affairs 
and Fundamental Rights, Social Development and Transport.  

127 

 
 
 
Table  2:  Indicative  financial  allocations  for  the  year  2010  per  component,  in  million 
EUR   

TURKEY 
I. Transition Assistance and Institution Building 
Of which: 

                                                                                  National Programme  

II. Cross-Border Cooperation 
Of which:                     

                                                              CBC Turkey– Bulgaria 
Turkey's participation in the ENPI Black Sea basin programme 2010 

III. Regional Development 
Of which: 

IV. Human Resources Development 

V. Rural Development 
TOTAL 

Environment 
Transport 
Regional Competitiveness 

HRD OP Turkey 

2010 
217.8152

217.81
3.0953

2.09
1.00
238.10

95.24 
71.43
71.43 
63.40
63.40 
131.30
653.70

Table  3:  Indicative  financial  allocations  for  the  year  2010  under  the  National 
Programme, per priority axis and per project, in million EUR 

Priority Axis/Projects 
Priority 1 Political Criteria  
Public Administration Reform 

Improved Strategic Management Capacity 

Human Rights/Women, rights  

Support  to  the  Local  Human  Rights  Boards  and  Women’s  Rights 
Awareness 
Prevention of Domestic Violence against Women 
Promoting Gender Equality in Education  

Children's rights and social inclusion 

Judiciary 

Increasing Primary School Attendance Rate of Children 
Supporting Social Inclusion through Sports Education 
Fight Against Violence Towards Children 
Justice for Children 

Towards an effective and professional Justice Academy  
Improvement of Enforcement Services in Prisons 
Strengthening witness protection capacities 
Improved Relations Between Mass Media and Judiciary 
Improved Court Expert System 

Budget  

32.50
2.33
2.33
8.28
2.25

2.79
3.24
11.00
2.88
2.07
2.70
3.35
10.91
1.94
4.97
0.95
1.62
1.43

52  

53  

The  difference  with  Table  1  is  explained  by  the  fact  that  EUR  6.5  million  of  unspent  funds  were 
transferred from IPA Component II 
Idem 

128 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Priority 2: Adoption and implementation of the acquis communautaire 
Free movement of goods 

Strengthened Market Surveillance System For ICT sector 
Improving chemical and ionising radiation metrology II 

Information Society/Competition 

Prevention  of  anti-competitive  behaviors 
communications sector 

in 

the  electronic 

Agriculture and Food Safety 

Digitisation of Land Parcel Identification System 
Oral Vaccination Against Rabies 
Control of Foot and Mouth Disease- Phase 2 

Transport and energy 

Improved Maritime Education and Training 
Control of Ship-Sourced Emissions 
Harmonization of Transmission System for Electricity 

Justice Freedom Security – Migration/Asylum 

Establishment of Reception and Removal Centers – phase II 

Environment 

Alignment in Bathing Water Monitoring 
Implementation of by-law on Strategic Environmental Assessment 
Implementation of Persistent Organic Pollutants Regulation 
Better  Air  Quality  By  Transposing  The  Large  Combustion  Plant 
Directive 
Capacity Building to implement the Flood Directive 

Public health 

Recruitment of Future Blood Donors 

Customs 

Modernisation of the Turkish Customs Administration VII 

Priority 3: Promotion of an EU-Turkey Civil Society Dialogue 

Civil Society Dialogue III 
Turkey's Participation in Union Programmes and Agencies 

Priority 4: Support Activities 

Support Activities to Strengthen the European Integration Process 

TOTAL 

9.2.2.2.  Component II 

46.54
4.10
2.50
1.60
0.90
0.90

73.76
39.27
1.87
32.62
4.11
1.24
1.52
1.35
9.78
9.78
5.98
1.43
1.04
0.90
0/90

1/71
2/25
2.25
0/51
0/51
35.46
9.63
67.61
6.71
6.71
217.81

On 4 November 2010 the Commission adopted a fourth annual programme on financing the 
participation of Turkey in the ENPI Black Sea Basin programme54, worth EUR 1 million. The 
multi-annual  Black  Sea  basin  programme  (2007-2013)  aims  at  supporting  stronger  and 
sustainable  economic  and  social  development  of  the  regions  of  the  Black  Sea  basin  and 
enhanced mutual understanding through cross-border partnerships.  

9.2.2.3.  Components III-V   

Component  III  and  Component  IV  programmes  were  adopted  in  2007  and  2008  covering  7 
years programming period.  

54  

C(2010)7470 

129 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
As  concern  revision  of  environment,  regional  competitiveness  and  transport  operational 
programmes  (OPs)  under  IPA  component  III,  the  modifications  concerned  mainly  the 
financial  tables,  indicators  and  increased  IPA  contribution  rate55,  thus  the  revisions  did  not 
imply  changes  in  the  strategy  and  priorities.  In  June  2010  all  3  programmes  were  extended 
and modified in order to adjust the strategy where necessary and to cover additional budget 
years within the current financial perspective.56 For all 3 programmes the respective modified 
Financing Agreements were signed on 11 November 2010 and on 14 December 2010.  

As concern revision of Human Resources Development (HRD) OP under IPA component IV 
it was revised in order to include financial allocations for the years 2010 and 2011, increasing 
the overall total of IPA component IV contribution to EUR 299.7 million for the period 2007 - 
2011.  The  related  result  and  output  indicators  were  adapted  accordingly.  In  addition,  the 
geographic concentration principle is softened to allow for some financial support (up to 20-
25% of total HRD OP funding) to be provided to the Turkish regions with a GDP above 75% 
of the national average. The approach will allow the spread of best practices and the use of 
Community  rules  beyond  the  12  NUTS  II  regions  in  the  East  of  Turkey.  The  priorities  and 
measures remain the same. A specific donor coordination meeting was organised in June 2010 
with the participation of the World Bank, International Labour Organisation and several EU 
member states.   

As  regards  Component  V,  the  IPA  rural  development  (IPARD)  programme  for  2007-2013 
was  modified  a  third  time  in  2010.  Modifications  were  required  to  take  account  of  changes 
required by the conferral exercise which the Commission is expected to adopt in the first half 
of  2011,  and  the  modifications  were  approved  by  the  Sectoral  Monitoring  Committee.  The 
programme  amendments  mainly  concerned  the  fine-tuning  of  the  definition  of  eligibility 
conditions, beneficiaries, the requirements for the implementation of EU standards as well as 
the geographic scope. In order to avoid overlap and develop synergies regarding support for 
rural  development  related  activities  under  IPA  component  V,  a  donor  coordination  working 
group has been set up in 2008 with AGRI, the EUD, World Bank, FAO and UNDP as main 
participants. As a result of this, World Bank has intensified its support for rural development 
capacity building before conferral of management. Moreover, during 2010 it was agreed that 
the  World  Bank  would  support  an  assessment  of  food  processing  enterprises  with  regard  to 
upgrading to EU standards to prepare for the related investments under the component V of 
IPA. 

55  

56  

Pursuant  to  the  amendments  introduced  by  Commission  Regulation  (EU)  No  80/2010  of  28  January 
201055 amending Regulation (EC) No 718/2007 implementing Council Regulation (EC) No 1085/2006 
2006  establishing  an  instrument  for  pre-accession  assistance  (IPA)55  the  co-financing  rate  in  IPA 
regional development programmes is increased to 85% 
Regional  Competitiveness:  Decision  C(2010)3776  of  23  June  2010;  Environment:  Decision  C(2010)3773  of  23 
June 2010; Transport: Decision C(2010)3770 of 22 June 2010 

130 

 
 
                                                 
 
9.3. 

Implementation of assistance  

9.3.1. 

IPA 

9.3.1.1.   Success stories  

Several  twinning  projects  under  IPA  fund  have been  successfully  completed  and  showed  to 
have  significant  impact,  as  was  described  in  the  IPA  Report  2009.  The  following  three 
projects are currently being under implementation: 

EU  support  for  the  empowerment  of  women’s  NGOs  (IPA  Component  I  2007,  EUR  2 
million) 

The  EU  has  financed  several  projects  related  to  the  protection  of  women’s  rights  and  the 
empowerment  of  women’s  NGOs  in  Turkey.  One  of  these  EU-funded  projects  was  the 
Empowerment of Women and Women’s NGOs in the Least Developed Regions of Turkey.  

The project is still under implementation phase and aims to upgrade women’s social, political 
and economic status in the least developed regions of Turkey, taking into account the need for 
reducing  regional  disparities.  The  target  groups  of  the  project  include  the  GAP  Regional 
Development Administration, women and youth NGOs.  

Local Support Centres for Women are focal points of the project. The executive centre of the 
project  is  located  in  Şanlıurfa,  but  there  are  also  local  support  centres  in  Trabzon  and  Van. 
‘Social project experts’ are employed in local centres in Van and Trabzon as representatives 
of the GAP Regional Administration.  

Women’s NGOs that are organised on a local basis meet each other a these centres to discuss 
problem areas and solutions supported by experts.  

EU-Turkey Civil Society Dialogue – Cultural Bridges (IPA Component I 2007, EUR 6.6 
million) 

The project is currently under implementation and aims to combat prejudices in Turkish and 
European  societies  through  cultural  exchanges  and  by  building  lasting  dialogue  between 
cultural actors and civil society through partnerships. The programme brings Turkey and the 
EU closer together through the themes of contemporary arts and culture.  

Consisting of four ongoing projects ("On the road", "kaladeiscoeurope", "My city", "Digital 
Bridges")  undertaken  by  the  cultural  institutes  of  the  EU  Member  States  in  Turkey,  the 
programme  brings  societies  together  through  hundreds  of  arts  and  culture  events.  18 
countries, including Turkey, participate in the programme’s highly visible multi-national and 
multi-cultural  events  across  various  cultural  themes.  Hundreds  of  activities  are  bringing 
thousands of artists together take place both in Turkey and EU countries. The programme also 
contributed to the European Capital of Culture 2010 events, which took place over the same 
period. Cultural Bridges covers all the fields of the contemporary arts (music, performing arts, 
visual arts) and literature.  

Participant testimonials' well underline the positive impact of the projects implemented under 
the "Cultural Bridges" project, describing it as “a courageous and passionate project that goes 
beyond  previous  projects,  showing  its  difference  through  innovation  and  creativity”  and 
“Culture is a significant dimension in Turkey’s EU accession process. The perceptions of both 

131 

 
 
sides need to be altered by demonstrating the similarities in their cultures. For this reason, the 
project aims to establish bridges between Europe and Turkey and try to persuade those who 
don’t believe that Turkey is a part of the European family. Against this background, the artists 
from the many EU countries participating in this project are building intercultural bridges. I 
believe  that  future  generations  will  communicate  more  easily  with  each  other  thanks  to  the 
project and that we can overcome all barriers through culture.” 

Continuation of the Jean Monnet Scholarship Programme for post-graduates in Turkey 
(IPA 2007 Component I, EUR 6.980 millions) 

The  Jean  Monnet  Scholarship  Programme  was introduced  in  1989  to  generate  solid  support 
for Turkey in its efforts towards accession to the European Union. Since then, the JMSP has 
been  running  successfully  as  one  of  Turkey’s  most  long  established  and  prestigious 
scholarships.  

Since  its  inception,  roughly  EUR  27  million  have  been  spent  for  the  programme  enabling 
approximately  1,112  civil  servants,  new  graduates,  as  well  as  private  sector  employees  to 
acquire  new  knowledge  and  skills  related  to  EU  accession.    It  has  included  two  phases 
through  which  931  young  people  completed  their  postgraduate  studies.  The  programme  is 
currently running in its third phase having supported 281 scholarship  holders between  2007 
and 2010.  

By  offering  bright  young  people  an  opportunity  to  carry  out  post-graduate  studies  in  EU 
member  countries,  the  programme  spearheaded  a  very  significant  human  resources 
development in the disciplines related to the EU acquis. It has done so by contributing to the 
professional  and  personal  development  of  the  scholarship  holders  in  general,  and  by 
broadening their perspective and perception of the European integration process in particular. 
It  has  also  provided  opportunities  for  cultural  exchange  and  networking  between  promising 
young  Turkish  professionals  and  young  professionals  in  their  programs  of  study  from  other 
EU  member  states.  As  a  result,  the  first  generation  of  scholars  are  in  decision-making 
positions. These  scholars are leading  EU relations in the public sector, conducting research, 
teaching EU-related subjects in the universities and playing a key role in expanding economic 
growth  in  the  Turkish  private  sector.  Studies  show  that  even  after  their  return,  scholars 
maintain  a  network  with  their  friends  and  colleagues  in  the  EU.  In  other  words,  the  Jean 
Monnet  Scholarship  Programme  also  contributes  to  the  development  of  a  people-to-people 
dialogue  between  Turkey  and  the  European  Union.  This  dialogue  is  essential  to  generate 
mutual  knowledge  and  understanding  between  civil  societies  in  Turkey  and  EU  Member 
States, to dispel ignorance, mutual prejudices and fears.  

In addition to the effectiveness of the programme in achieving objectives and purpose and its 
impact on administrative capacity in Turkey, the overall assessment of the scholarship holders 
of the Programme is very positive.  

Under IPA component III and IV a high number of relevant projects have been approved in 
2010.  Even  if  their  implementation  did  not  start  yet,  their  approval  can  be  considered  as  a 
success as a good project pipeline is an important premise for a full absorption of funds and a 
positive  step  to  reach  the  purpose  to  prepare  Turkey  for  the  management  of  the  Structural 
Funds.  

An  important  achievement  under  the  environment  operational  programme  (IPA  component 
III)  is  an  impressive  IPA  Major  Project  pipeline  put  in  place  by  the  operational  structure 
(Ministry  of  Environment  and  Forestry).  At  the  end  of  2010  the  Commission  in  total  had 

132 

 
 
received  29  applications  for  this  programme  with  an  estimated  total  eligible  public 
expenditure value of over EUR 700 million. In parallel, work continued on the preparation of 
new IPA projects to further strengthen the pipeline. The existence of a long list of available 
projects ready to be implemented is the first precondition for the successful implementation of 
a programme, however real absorption will largely depend on the progress with the tendering 
and contracting.  

Under the regional competitiveness operational programme  the Greater Anatolia Guarantee 
Facility (EUR 500 millions) was approved by the Commission in 2010, less than a year after 
its  submission  showing  the  operation's  high  contribution  to  the  global  purpose  of  this  IPA 
programme.  This  financial  engineering  project  is  an  important  step  for  the  efficient 
implementation  of  IPA  funds  under  component  III  and  has  been  prepared  by  Ministry  of 
Trade  and  Industry  with  the  participation  of  the  European  Investment  Fund  and  the 
Commission. The cooperative spirit of all stakeholders during the preparation phase was an 
important factor behind the success. The facility will support Turkish Small and Medium size 
enterprises (SMEs) with micro-loans and loan counter-guarantees in regions where this type 
of support was never available before. This required the participation of selected banks that 
currently are finalising their contributions. The initial performance of the project is promising 
but the impact is yet to be proven.  

A couple of examples of selected projects under the IPA component IV call for proposals in 
the vocational education and training (VET) field that were contracted in 2010, and now are 
about to start off the ground: 

The Promoting Registered Employment project (EUR 109.962) aims at establishing an active 
employment  strategy  by  involving  all  parties  concerned,  which  will  contribute  to  human 
resource development in Çorum through promoting integrated vocational training. It will also 
provide training and other services to meet the local labour demand with a view to increasing 
transition from unregistered to registered employment under the leadership of social partners. 
The project is expected to lead to increased awareness about the importance of the problem of 
unregistered  employment  in  public;  to  reinforce  social  dialogue,  consolidating  cooperation 
amongst social partners and other relevant institutions; to raise social responsibility awareness 
of employers regarding unregistered employment.  

The  Supply  of  Qualified  Workforce  in  the  Knitting  Sector  project  (EUR  66.456)  aims  to 
provide  qualified  labour  force  for the  enterprises  registered  with  the  Chamber  of  Craftsmen 
and Artisans in Bingöl through training activities in line with the current needs of the labour 
market  as  well  as  of  the  unemployed.  Thirty  women  who  are  registered  to  Turkish 
Employment Organisation in Bingöl are targeted to be trained in textile overlocking, machine 
sewing, and computer design draughtsmanship. 

133 

 
 
 
 
 
 
 
9.3.1.2.  Overview of IPA implementation in 2010 

Component I: Transition Assistance and Institution Building  

Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme  

Committed  Contracted  %Contracted  Paid  % Paid 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

256.20 
256.13 
204.55 
217.81 
934.63 

152.79
118.21
0
0
271.00

59.64% 94.76 
46.15% 83.29 
0 
0 
28.99% 178.05 

0%
0%

36.99% 
32.52% 
0% 
0% 
19.05% 

Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 
Political criteria 
Civil Society dialogue 
Ability to assume membership obligations 
Support programmes 
TOTAL 

% of 2007-2010 allocations 
12,46% 
38,15% 
47,38% 
2,02% 
100% 

EU assistance implementation under component I has significantly improved during the year 
in review and Turkey is positively making up for the  back-log created in the initial years of 
IPA,  and  contracting  of  IPA  2007,  2008  and  2009  is  ongoing  under  component  I.  However 
the  payments  of  the  IPA  programmes  still  remain  low.  This  is  due  to  the  fact  that  they  are 
lagging behind contracting and the final payments are only made on average several months 
after  contracts  are  fully  implemented.  As  concerns  the  2007  programme,  more  than  90%  of 
National Programme 2007 has been contracted by the end of 2010, excluding the projects for 
which  the  contracting  deadline  has  been  extended  by  6  to  12  months.  The  2008  Financing 
Agreement has been amended in 2010 in order to extend the final contracting deadline by 7 
months  (October  2011).  The  2009  National  Programme  was  split  into  two  parts.  Both 
Financing Agreements have been concluded by the end of 2010. 

A first Financing Agreement  for the National Programme for Turkey under IPA Component I 
2010, covering Turkey's participation in Union Programmes and Agencies, has been signed in 
December  2010.  A  second  Financing  Agreement  covers  the  remaining  30  projects  to  be 
implemented through decentralised management.  

The  Twinning  and  Taiex  instruments  have  successfully  been  used  to  develop  capacities  of 
Turkish Institutions. Turkey was encouraged to use twinning as standard tool for public sector 
cooperation,  rather  than  direct  grants  to  international  organisations.  The  2010  programme 
included  10  twinning  projects  for  justice  sector  training,  prison  reform,  witness  protection, 
judiciary-media  relations,  capacity  building  for  court  experts,  ICT  market  surveillance, 
maritime  safety,  reducing  ship  emissions,  improving  water  quality  and  reducing  by  EUR 
11.79  million  the  2007-2009  National  Programme.    For  TAIEX,  234  study  visits,  experts 
missions  and  workshops  took  place  in  Turkey  in  2010,  the  biggest  number  of  events  in  the 
field of international market (90) and justice and home affairs (54). 

134 

 
 
 
 
 
 
Ten  twinning  contracts  for  projects  under  the  national  programmes  2007  and  2008  were 
signed  in  2010  of  a  total  amount  of  EUR  11.79  million.  These  projects  is  expected  to 
contribute  to  significant  impact  in  the  related  fields,  such  as  establishing  systems  for 
management  of  asylum  seekers  and  irregular  migration,  integrated  border  management, 
training of the Turkish police, gender equality and acquis alignment in the environment field. 

Component II: Cross-border Cooperation  

Tables 6: Status of implementation of IPA financial assistance (Component II) as at 31st 
December 2010 (in million EUR)57  

IPA 2007-2010 

Committed 
11.11

Paid 

% Paid 

2.55

22.95% 

Out  of  which,  the  breakdown  for  Turkey's  participation  in  the  ENPI  Black  Sea  Basin 
programme is: 

Committed  Contracted  % Contracted Paid  

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

1.00 
1.00 
1.00 
1.00 
4.00 

0.06
0.00
0.00
0.00
0.06

6%
0%
0%
0%
1.5%

% Paid 
4%
0%
0%
0%
1%

0.04 
0.00 
0.00 
0.00 
0.04 

 Table 7: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

CBC with Bulgaria 
Participation ENPI Black Sea basin programme 
TOTAL 

% of 2007-2010 allocations  
64% 
36 % 
100% 

In 2010 the implementation of the ENPI programme for the Black Sea basin was on-going. 
The first call for proposals that was launched in 2009 materialised in the first grant contracts 
with  Turkish  partners  being  singed  by  the  end  of  2010.  The  second  call  for  proposals  is 
planned to be launched in early 2011.  

As  concerns  the  implementation  of  the  Turkey-Bulgaria  CBC  programme  the  first  call  for 
proposals has been organised and by the end of 2010 the evaluation process was still ongoing.  

In 2010, the hand over process as concerns the National Authority in charge of coordinating 
Turkey's participation in the IPA cross-border programmes has been initiated, i.e. the Turkish 
Cooperation and Development Agency (TIKA) has been replaced by the Secretariat General 
for European Union Affairs (EUSG). In practice, this new impetus has changed the face of the 
cross border programme in a very positive manner and Turkey showed a pro-active attitude. 
As  concerns  the  Turkey  -  Bulgaria  programme,  cooperated  went  smoothly  in  2010  and  the 
delay  accumulated  during  previous  years  was  made  up  for  and  implementation  is  now  well 
underway.   

57  

Figures include the CBC Programmes with Bulgaria 

135 

 
 
 
 
                                                 
Component III   

Table 8: Status of implementation of IPA financial assistance (Component III) as at 31st 
December 2010 (in million EUR)  

IPA 2007-2010 

762.10

213.32

28.00 

Committed 

Paid 

% Paid  

Table 9: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

% of 2007-2009 allocations 

Transport 
Environment 
Regional Competitiveness 
TOTAL 

34,29% 
38,95% 
26,76% 
100% 

The  implementation  of  the  operational  programmes  (OPs)  under  component  III  could  start 
only  following  the  conferral  of  management  powers  and  signature  of  the  Financing 
Agreements  (autumn  2009)  therefore  the  year  2010  was  only  the  second  year  of 
implementation.  Project  preparations  have  been  ongoing  since  the  adoption  of  the 
programmes  but  although  significant  progress  had  been  made  in  the  preparation  of  project 
pipelines  for  the  three  programmes  nevertheless  at  the  end  of  2009  the  preparation  and 
publication of tender documents was still limited, a most critical stage for the implementation 
of projects and absorption of funds. Accordingly, 2010 was an important year to catch up for 
the delays occurred in 2008 and 2009.  

Under the environment OP Turkey submitted 9 new major project (MP) applications and 10 
revised  MP  applications  in  2010.  The  Commission  approved  one  MP  through  a  formal 
decision. This OP has a long list of project applications awaiting approval amounting to more 
than EUR 600 million while the available funds for 2007-2011 are only EUR 416 million. As 
regards the transport OP one of the four major projects approved in 2009 was suspended in 
2010 and two appraised projects (one rail and one port project) were withdrawn by Turkey. 
One MP was adopted in 2010. For the regional competitiveness OP one MP was appraised by 
the Commission, however, formal approval was still outstanding at the end of 2010.  

Component IV  

Table  10:  Status  of  implementation  of  IPA  financial  assistance  (Component  IV)  as  at 
31st December 2010 (in million EUR)  

Committed 

Paid 

% Paid 

IPA 2007-2010 

222.10 

48.08 

21.65  

136 

 
 
 
 
 
 
 
 
 
 
 
 
 
Table 11: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

% of 2007-2009 allocations 

Employment 
Social inclusion 
Human capital and employability 
Technical assistance 
TOTAL 

46.75% 
14.29% 
30.86% 
8.10% 
100% 

The Ministry of Labour and Social Security, appointed as the operating structure for the HRD 
OP, launched the first operations in 2009. The evaluation of the first five calls for proposals 
published  in  2009  was  concluded  in  2010.  Around  450  project  proposals  were  selected  for 
IPA  component  IV  co-financing.  The  related  contracts  were  concluded  between  May  and 
December 2010, amounting to approximately EUR 80 million of IPA contribution. Although 
progress  was  achieved  in  the  signature  of  contracts,  it  was  not  possible  to  avoid  the 
application of the automatic de-commitment rule58 by the end of 2010 for the first time. As a 
consequence an amount of EUR 198,000 had to be de-committed. 

Component V  

Table 12: Status of implementation of IPA financial assistance (Component V) as at 31st 
December 2010 (in million EUR)  

IPA 2007-2010 

290.50

Committed  Paid 

% Paid 
0

0

Table 13: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

% of 2007-2010 allocations 

Axis 1 - Market efficiency and EU standards 
Axis 2 – Preparation for agri-environmental 
measures and Leader 
Axis 3 - Development of the rural economy 
Technical assistance 
TOTAL 

71 % 
3 % 

24 % 
2 % 
100% 

Programme  implementation  under  component  V  could  not  start  in  2010  due  to  the  delays 
regarding the finalisation of the legal framework including the preparatory national legislation 
and  the  signature  and  conclusion  of  the  Sectoral  Agreement  (EU-Turkey  agreement  laying 
down  the  EU  rules  for  decentralised  implementation  of  funds  without  ex-ante  controls)  as 
well as the national accreditation of the Component V implementation system by the Turkish 
authorities. Delays were mainly due to the lengthy process of setting-up and staffing the IPA 
rural  development  (IPARD)  entities,  drafting  and  setting-up  the  legal  framework  and  in 
relation, the very complex and extensive adoption process of the legislation and the IPARD 
related  regulations.  Furthermore,  Turkey  opted  for  an  ambitious  and  complex  rural 
development programme featuring not only many measures and sub-measures, but also a wide 

58  

The Human Resources Development Operational Programme for Turkey under IPA Component IV is subject to the 
application of the n+3 automatic de-commitment rule. This rule foresees that the part of the budget commitment of 
given year will be automatically de-committed by the end of the third year following the year of its commitment, if 
it has not been used for the purpose of pre-financing payments or intermediate payments from the Commission to 
the National Fund 

137 

 
 
 
 
 
 
                                                 
geographical  scope  leading  to  a  high  degree  of  decentralisation  of  the  IPARD  agency's 
controls  to  provincial  level  necessitating  in  turn  a  high  number  of  provincial  co-ordination 
units.  

However, it has to be noted that during 2010 important progress has been achieved with the 
signature and conclusion of the Sectoral Agreement which entered into force on 27 July 2010 
and thus constitutes the specific legal basis for the implementation of component V in Turkey.  

9.3.1.3.  Implementation Modalities and Structures  

Progress  has  been  made  concerning  the  conditions  attached  to  the  conferral  of  management 
decisions under IPA component I. However, a number of outstanding weaknesses remain in 
the  management  and  control  systems  that  have  been  identified  via  monitoring  and  audit 
activities.  These  concern  the  national  authorising  officer  (NAO)  supervision,  monitoring  by 
the national IPA coordinator (NIPAC) and payment related issues. Further critical weaknesses 
also  remain  with  the  current  staffing  of  key  decentralized  management  institutions,  such  as 
the Central Finance and Contracts Unit (CFCU), compared to the workload faced by them and 
in  relation  to  delays  in  the  implementation  of  the  transition  strategy.  The  issues  have  been 
discussed at the monitoring committees to identify corrective actions and national authorities 
have  started  to  work  on  an  action  plan  to  address  these  weaknesses.  In  the  same  time, 
significant steps have been made to improve the staffing levels and capacity improvement of 
the IPA institutions (in 2008, 161 people; in 2010, 296 people). However, further efforts need 
to  be  made  in  this  respect  to  address  the  existing  gaps  and  to  create  adequate  capacity  to 
absorb funds in a speedy manner.  

For Component II the management and control system for the Black Sea Basin programme is 
now in place with few weaknesses remaining, mainly related to the set-up of the monitoring 
system.  Open  issues  also  remain  in  the  process  of  setting  up  the  management  and  control 
structures for the cross-border cooperation programme with Bulgaria. 

For  the  accreditation  of  the  operating  structures  under  component  III  and  IV,  the 
Commission  requested  Turkey  to  meet  a  number  of  specific  criteria  before  the  assigned 
Operating  Structures59  would  be  allowed  to  take  over  the  responsibility  as  contracting 
authorities  for  their  respective  programmes.  These  criteria  concern  the  establishment  of  the 
legal base; developing staff planning, recruitment, training and appraisal management; define 
procedures for procurement and grant calls and setting up internal audit functions.  

During  a  transition  period,  planned  to  run  from  2007  to  2010,  the  operating  structures  for 
implementing  the  operational  programme  under  Component  III  and  IV  delegated  certain 
functions related to the tendering and contracting of projects to the CFCU to give them time 
to  prepare  for  these  tasks.  However,  in  2010,  some  delays  occurred,  mainly  due  to  the 
Ministries' slow acquisition of know how. As a consequence, the transition period had to be 
extended  into  2011,  which  has  stretched  the  capacity  of  the  system  in  terms  of  staffing  in 
tendering  and  monitoring,  which  is  an  important  reason  behind  the  delays  experienced  in 
implementation.  

59  

Ministry  of  Environment  and  Forestry  for  the  Environment  Operational  programme;  Ministry  of 
Industry  and  Trade  for  Regional  Competitiveness;  Ministry  of  Transport  for  Transport  Operational 
programme  and  Ministry  of  Labour  and  Social  Security  for  the  Human  Resources  Development 
Operational programme. 

138 

 
 
                                                 
Regarding Component III, on 11 October 2010 the NAO notified the Commission about the 
accreditation  of  the  Ministry  of  Environment  and  Forestry  (MoEF)  for  the  tendering, 
contracting and financial management functions to the environment programme as established 
criteria  were  met.  Following  a  Commission  audit  in  the  end  of  2010,  a  new  conferral  of 
management Commission decision was adopted on 20 January 2011 transferring the functions 
of the contracting authority for the environment OP from the CFCU to the MoEF.  

The same process is expected to be followed for the transport, regional competitiveness and 
human resources development OPs in the course of 2011.  

Concerning  IPA  component  V,  the  accreditation  package  with  the  request  for  conferral  of 
management was submitted to the Commission in July 2010, thus starting the formal conferral 
of management preparation process. Following the submission, Turkey was asked to prepare 
an  action  plan  to  remedy  the  major  organisational  and  procedural  deficiencies  and  gaps 
identified either by the pre-accession external auditors or by the Commission auditors. During 
the  first  Commission  conferral  mission  carried  out  in  December  2010,  it  was  noted  that  the 
working  arrangements  were  still  undergoing  significant  corrections  for  all  IPARD  entities. 
The de-commitment risk remained very high under IPA component V due to the delays in the 
conferral of management process. 

Turkey  officially  submitted  the  first  version  of  the  roadmaps  for  decentralised  management 
without the ex-ante controls for IPA component I-IV at the end of 2009/beginning of 2010. 
The Commission provided comments and updated roadmaps are expected in 2011.  

As a summary; in 2010 the NAO, the National Fund and the CFCU all made limited progress 
in  establishing  adequate  procedures  and  organisational  structures  as  part  of  an  improved 
supervision  under  the  decentralised  management  system.  However,  some  weaknesses  in  the 
management and  control  systems remained in 2010,  in particular the level of staffing at the 
CFCU.  

9.3.1.4.  Monitoring 

Overall monitoring by the Turkish institutions remained weak in 2010. The practical exercise 
of the NAO's supervision functions and the use of the available tools indicate that there was a 
scope for improvement. Apart from some signs of increased leadership, efforts were required 
especially  to  strengthen  of  overall  monitoring  functions  of  the  Secretariat  General  for  EU 
Affairs (EUSG), CFCU and Senior Programme Officers (SPO). The institutional capacity of 
the  EUSG  were  strengthened  with  the  recruitment  of  91  junior  staff  with  22  persons  being 
allocated to the Financial Cooperation Directorate, including the Director, 11 of which were 
designated with monitoring and evaluation function. In addition, a contract for results oriented 
monitoring (ROM) was signed at the end of December 2010 after considerable delays in the 
tendering  process.  With  the  activities  focusing  of  on  the  job  training  opportunities  for  the 
junior staff members, the ROM contract was considered to provide important assistance to the 
EUSG’s monitoring functions.  

Turkey's institutions rely mainly on CFCU’s functions for ensuring the proper management of 
project  implementation  and  project  monitoring.  The  CFCU  considerably  strengthened  its 
capacity  in  monitoring  of  grant  schemes  and  this  was  reflected  in  the  workload  assessment 
provided  to  the  Commission  auditors  in  January  2010  whereas  their  monitoring  capacity 
concerning other types of procurement was not considered sufficient.  

139 

 
 
 
 
The  IPA  Monitoring  Committee  for  all  five  components  took  place  on  29  June  2010  in 
Ankara discussing progress and challenges in implementation. The main concern raised was 
the  insufficient  capacity  of  the  Turkish  authorities  to  efficiently  and  effectively  manage  the 
IPA  funds  currently  under  implementation  in  the  5  components.  Following  delays  and 
remaining weaknesses in all stages of the project management cycle, a significant backlog in 
implementation exists. The Commission proposed a comprehensive set of measures in order 
to  avoid  loss  of  funds  in  2011.  These  measures  specifically  address  the  need  to  improve 
forecasting,  procurement  planning  and  contracting  performance;  to  enhance  monitoring 
trough the increase of staff capacity and the involvement of a higher level of participation of 
all  stakeholder;  addressing  the  remaining  weakness  in  the  management  and  control  system. 
Other  concerns  were  raised  over  frequent  turn  over  of  staff  in  the  operating  structures,  the 
transition  strategy  and  updated  roadmaps  on  further 
need 
decentralisation,  to  improve  the  irregularity  reporting  and  follow  up  audit  findings  in  a 
systematic way. 

to  provide  an  update 

Two  transition  assistance  and  institutional  building  (TAIB)  sectoral  monitoring  committees 
were  held  on  7  February  and  on  29  June  2010  combined  with  the  meetings  concerning  the 
programme financing Turkey’s participation in the ENPI Black Sea basin programme under 
Component  II.  The  June  Committee  agreed  that  measures  (as  concerns  system  weakness, 
improve  procurement  planning,  budget  execution)  to  improve  the  management  of  funds 
should  be  taken  as  soon  as  possible  in  order  to  avoid  loss  of  funds.  The  Commission 
requested the Turkish authorities to review the existing monitoring system and to make a clear 
definition  of  the  roles  and  responsibilities  in  monitoring  of  each  institution.  Weaknesses 
needed to be addressed at system, programme and project level, including the harmonisation 
of Management Information System (MIS) and reporting systems.  

No  IPA  Joint  Monitoring  Committee  on  Bulgaria-Turkey  IPA  CBC  Programme  under 
Component II was held in 2010.  

Regarding  the  ENPI  Black  Sea  Basin  programme,  Turkey  participated  in  two  Joint 
Monitoring Committees organised by the Joint Managing Authority (Romania) on the 28 June 
and the 3-4 November 2010. On these occasions the guidance and the evaluation process of 
the first call for proposals were discussed in detail.  

In 2010 two rounds of sectoral monitoring committees for all three operational programmes 
under IPA component III and one annual technical meeting took place. The issues discussed 
concerned  the  programme  modification  and  increase  of  the  co-financing  ratio  to  85  %, 
accreditation of the Ministry of Environment and Forestry for the tendering, contracting and 
financial management functions for environment programme, cooperation with the CFCU and 
preparation  for  accreditation  of  the  operating  structures  for  the  transport  and  regional 
competitiveness  programmes,  project  pipelines  and  implementation  progress  for  each  of  the 
programmes, including assessments of progress with tendering.  

The human resource development (component IV) sectoral monitoring committees for Turkey 
were held on 24 June 2010 in Van and on 29 November 2010 in Hatay. Among other things 
the  Committee  was  informed  about  the  revision  of  the  operational  programme  and 
implementation issues, and activities regarding the mid-term evaluation. It was also informed 
about the state of implementation of ongoing operations, the identification of new operations 
implementing  the  programme  and  the  future  actions  to  take  place  in  2011.  In  addition, 
information  was  provided  on  the  accreditation  preparations  for  the  conferral  of  finance  and 
contracting responsibilities from the CFCU to the Ministry of Labour and Social Security. 

140 

 
 
Rural development sectoral committees (component V) were held on 6 May and 9 December 
2010.  The  May  Committee  approved  a  number  of  important  programme  modifications 
relating to eligible beneficiaries, general eligibility conditions as well as the geographic scope 
of  the  programme.  A  number  of  actions  to  improve  access  to  rural  credits  and  to  better 
involve  banks  to  ensure  availability  of  sufficient  co-financing  for  IPA  rural  development 
funds  were  also  discussed  and  approved.  In  the  December  meeting  additional  programme 
amendments were adopted and the communication and publicity action plan for 2011 as well 
as the technical assistance action plan in 2011 were debated and approved. 

9.3.2.  Turkish Pre-Accession Instrument (TPA) 

9.3.2.1.   Sectors with positive results/ Success stories  

When considering the value of EU funding to Turkey under the TPA, the introduction of the 
decentralised implementation system (DIS) in Turkey was an important milestone in the EU 
accession preparations. This allowed Turkey to be well placed to prepare for the conferral of 
management  under  IPA.  Starting  in  2002,  the  DIS  was  subject  to  close  monitoring  by  the 
Commission  and  regular  improvements  were  agreed  with  the  Turkish  authorities  inter  alia 
based on audits and discussions at the biannual Joint Monitoring Committees. Staffing levels 
and  expertise  in  newly  established  institutions  which  are  key  for  management  of  EU  funds, 
such as the Central Finance and Contracting Unit and the Secretariat General for EU Affairs, 
were increasing over time. This was only possible through the adoption of a number of legal 
amendments  and  with  the  help  of  technical  assistance,  guidance  by  the  EU  Delegation  to 
Turkey and the practical experience gained through implementing EU projects in a wide range 
of areas. The professionalism that was built up during the learning period under the Turkish 
Pre-Accession instrument was one of the key reasons why the more rigorous accreditation of 
the  decentralised  management  system  under  IPA  subsequently  could  be  completed  in  2008. 
The existence of the CFCU allowed also to immediately manage IPA component III and IV 
under decentralised management during a transition period. In summary, the management of 
the  TPA  provided  a  crucial  learning  period  for  Turkey  on  the  way  to  the  setting  up  of 
adequate management and control systems for IPA. 

Some  selected  examples  of  successful  projects  funded  under  the  Turkish  Pre-Accession 
Instrument: 

Employment support from the EU (TPA 2006 EUR 20 million) 

The  ‘Active  Labour  Market  Measures  II  Project’,  implemented  with  the  EU’s  financial 
support,  promoted  the  participation  of  unemployed  women  and  young  people  in  the  labour 
market  by  providing  them  with  vocational  training  opportunities.  The  main  purpose  was  to 
improve the existing capacity to design, develop and implement policies and programmes in 
order to  contribute to human resource  development  aligned  with the European Employment 
Strategy in Turkey. The project was finalised in April 2010. 

To this end the project assisted İŞKUR in delivering more efficient employment services by 
improving its institutional capacity, and increased employability of people through 101 grant-
projects  carried  out  in  25  different  cities.  These  projects  reached  approximately  11  000 
unemployed women and young people. The participants received vocational training aimed at 
increased participation in employment, plus advisory services helping them find quality jobs 
corresponding to their skills and professional background.  

141 

 
 
Small Enterprise Loan Program II (SELP II) (TPA 2005 EUR 62.8 million) 

Small  and  Medium  size  enterprises  (SMEs)  represent  more  than  99%  of  all  enterprises  in 
Turkey, and are the backbone of the economy with their flexible and dynamic structure; the 
employment  they  generate;  and  the  contribution  they  make  to  competition  and  growth. 
However, the most crucial obstacle to the development of SMEs is access to financing. Small 
enterprises in particular, i.e. those with less than 50 employees, find it difficult to access long-
term  financing  as  commercial  banks  consider  the  risks  too  high.  Existing  loan  facilities  for 
small enterprises struggle to meet demand.  

In order to contribute to the solution of this problem and to improve the financial environment 
for  SMEs  in  Turkey,  the  European  Union  has  been  supporting  numerous  initiatives  since 
2002;  one  of  them  being  the  Small  Enterprise  Loan  Programme  (SELP).  As  the  first  loan 
programme for small enterprises in Turkey, it fills an important gap by providing enterprises’ 
access to financing in addition to improving the lending services of banks to small enterprises. 
In the first phase of the programme in 2002-2008 which covered an EU support of EUR 20 
million,  loans  of  more  than  EUR  36  million  were  made  available  to  small  enterprises. 
Following  the  successful  completion  of  the  first  phase,  SELP-II  (funded  under  the  TPA 
programme in 2005) was launched in 2008 and will run until November 2012.  

SELP  II  encompasses  all  of  the  49  provinces  falling  under  the  scope  of  Code  No:  5084  on 
promotion of investments and employment, and has created a funding opportunity of nearly 5-
fold of the first phase with a sum of EUR 90 million. The programme offers working capital 
of  up  to  EUR  30  000  and  an  investment  loan  of  up  to  EUR  50  000  to  small  enterprises. 
Applications  can  be  made  via  Akbank,  Garanti  Bank,  T.İş  Bank  and  Şekerbank  in  the  49 
provinces. Since the start of lending activities in January 2009, a total of 12,632 loans worth 
EUR  127,339,807  have  been  provided  to  small  enterprises  in  Turkey.  According  to  the 
statistical data gathered from the on-lending banks, 11,291 new jobs were created and 34,346 
jobs were secured as result of the SELP loans by the end of 2010. 

Thanks  to  SELP-II  loans,  many  small  enterprises  have  developed  innovative  project  ideas. 
One of them is Tokgün Ticaret which operates in Kars. The company partners noticed that the 
agricultural machines they imported and sold were not suitable for the land conditions of the 
region, and those that were convenient were too costly for small land owners. They made use 
of  a  SELP-II  loan  to  conduct  Research  and  Development  with  the  objective  of  developing 
machines  suited  to  the  terrain  in  the  region.  The  company  partners  report  that  sales  and 
turnover have increased significantly and are encouraging other enterprises to apply for loans. 

Expansion  of  the  European  Turkish  Business  Centers  Network  (ABIGEM)  Project 
(TPA 2006, EUR 50 million) 

The  pioneering  of  the  Union  of  Chambers  &  Commodity  Exchanges  of  Turkey  (TOBB)  in 
cooperation  with  the  related  Chambers  of  Commerce  and/or  industry  has  resulted  in  the 
establishment of EU Turkish business centers (ABİGEM) in 15 provinces all around Turkey 
since the year 2002. During the four-year period between 2002 and 2006, the first ABİGEMs, 
which  were  established  thanks  to  EU’s  financial  support  in  an  effort  to  provide  services  to 
SMEs, started operating in Gaziantep, İzmir and Kocaeli. 

ABİGEMs provide professional training, consultancy and information services in the regions 
where  they  are  established  in  order  to  help  SMEs  improve  their  competitiveness  within  the 
national and international markets and increase SMEs’ contribution to both local and national 

142 

 
 
economies.  The  business  centers  also  provide  their  regions  with  services  and  products 
resulting from their “windows project” equipments. These lasts, determined according to the 
specific  needs  of  the  region  with  the  contribution  of  major  local  stakeholders,  include  food 
laboratories,  3D  design  centers,  CNC  milling  machinery,  cheese  and  apricot  packaging 
vehicles, environment and hybrid seed laboratories and non-destructive testing equipment. 

Following the success of the first project, it was agreed to expand the ABİGEM network to 15 
by  establishing  a  further  12  business  centers  throughout  Turkey.  “The  Expansion  of  the 
European  Turkish  Business Centers  Network” project  funded under  the 2006 programme to 
develop  Business  Centers 
in  Adana,  Denizli,  Eskişehir,  Kayseri,  Konya,  Trabzon, 
Afyonkarahisar, Çorum, Erzurum, Malatya, Trakya and Uşak. An ABİGEM coordination unit 
within TOBB was also established. Due to the outstanding success of the first two phases of 
the project, it has been decided that four more Business Centers are to be established in the 
near future in Antakya, Batman, Sivas and Van. 

One of the main results of the project is to develop an efficiently working local consultants 
and  experts  pool  in  Turkey  in  order  to  improve  the  match  between  demand  and  supply. 
Although similar consultancy and business development structures exist in the world, this is 
the  first  time  that  such  business  centers  have  succeeded  in  achieving  self-sustainability 
without receiving any state support. In order to prevent the ABİGEM experts becoming public 
officers  and  let  them  preserve  their  consultant  and  entrepreneur  spirit,  ABİGEMs  are 
established  as  non-profit  joint  stock  companies  that  are  only  supported  during  the  project 
duration and that are expected to ensure their continuity. Nevertheless the support of TOBB 
and the Chambers of Trade and/or industry together with other stakeholders of importance in 
the  region  considerably  facilitates  the  realization  of  the  social  and  economical  tasks  of  the 
ABİGEMs 

Support  to  the  Solution  of  Economic  and  Social  Integration  Problems  in  Diyarbakir, 
Sanliurfa,  Gaziantep  and  Erzurum  as  Major  In-Migrant  Destinations  (IGEP)  (TPA 
2006, EUR 12.9 million) 

The  project  focused  on  the  enhancement  of  the  institutional  capacity  of  four  metropolitan 
municipalities  to  mitigate  problems  arising  from  migration,  as  well  as  to  assist  with  the 
rehabilitation  and  reintegration  of  street  children.  The  project  was  implemented  between 
December 2008 and May 2010. The project aimed to minimise urban disparities by improving 
social and cultural facilities, building on the experience from a previously EY funded project: 
Economic and Social Integration Project in Major In-Migrant Destinations, implemented in 
Diyarbakir, Sanliurfa, Gaziantep and Erzurum Municipalities.  

The IGEP project had two main components: capacity building and social services. Under the 
capacity building component, needs analysis reports were prepared based on replies to 2300 
surveys  at  district  level  and  face-to-face  interviews  with  more  than  250  institutions  in  four 
cities.  Based  on  these  reports  and  with  the  support  of  more  than  20  working  groups,  the 
municipalities  prepared  social  mappings  for  identifying  the  needs  of  each  region.  Strategic 
action  plans  and  relevant  operational  programmes  were  developed  on  the  basis  of  all  these 
practices.  

The  project  responded  to  an  urgency  to  ensure  the  participation  of  the  migrated  population 
into  urban  life,  and  to  reveal  its  links  with  serious  challenges  such  as  alienation  and 
discrimination.  In  the  context  of  this  multidimensional  struggle,  an  unprecedented 
coordination  and  cooperation  model  was  developed  with  the  participation  of  civil  society 
organizations,  public  institutions,  governorships,  local  administrations  which  ensured 

143 

 
 
 
cooperation  between  the  local  authorities.  Consequently  the  project  developed  an  efficient 
model  in  the  field  of  social  policy  and  provided  the  municipalities  with  the  capacity  of 
managing their social responsibilities through a systematic approach. Within a relatively short 
period  of  18  months,  various  activities  were  conducted  in  an  exhaustive  and  sustainable 
manner. In this way, not only the objectives of the project were attained, but also the positive 
impacts of the centres on children’s and young people’s behaviour and expectations were seen 
to  improve  greatly.  This  impact  became  the  most  important  element  of  motivation  for  the 
municipalities in continuing their activities after the completion of the project.  

9.3.2.2.  Lessons learned  

Please  refer  to  section  "2.1  Multi-annual  Indicative  Planning  Document"  above  as  the 
experience  from  the  Turkish  Pre-Accession  has  been  critical  in  the  Commission’s  own 
assessment of past performance and in improving IPA based on lessons learned.  

9.3.2.3.  Management performance  

2010 was mainly about finalising the formal procedures related to the 2005 and 2006 projects 
funded under TPA; 446 decentralised contracts were closed and the Commission completed 
74 recoveries of a total amount of EUR 2.38 million. 

Table 14: Status of financial assistance at the end of December 2010 (in million EUR) –
TPA annual programmes   

TPA 2002 
TPA 2003 
TPA 2004 
TPA 2005 
TPA 2006 
Total 

Allocated 

126.0 
144.0 
235.6 
277.7 
450.0 
1233.3 

Contracted  % Contracted
89.05%
84.72%
82.51%
83.76%
86.42%
85.15%

112.2
122.0
194.4
232.6
388.9
1050.1

Paid 

% Paid 

105 
117 
186 
223 
348 
979 

83.33%
81.25%
78.95%
80.30%
77.33%
79.38%

9.3.2.4.  Institutional building highlights  

Prepared in order to assist Turkey with its efforts in preventing corruption, the EU-financed 
project  Ethics  for  the  Prevention  of  Corruption  in  Turkey  (TPA  2006,  EUR  1.5  million) 
promoted democracy and the rule of law by strengthening and improving ethics in preventing 
corruption  in  Turkey,  in  accordance  with  European  and  international  standards. The  project 
was implemented by the Council of Europe and consisted of activities in order to support the 
implementation  of  the  Regulation  on  Principles  of  Ethical  Behaviour  across  the  public 
administration in line with GRECO recommendations, develop principles of ethical behaviour 
for  other  categories  of  officials  or  holders  of  public  office,  create  systems  to  monitor  the 
effectiveness of anti-corruption measures, ensure coordination of anti-corruption measures. 

Under the project the staff of the Council for Ethics in Public Service was trained on various 
areas  such  as  investigation  of  complaints  and  application  of  principles  of  ethical  behaviour. 
Thanks  to  the  preparation  of  a  training,  110  officers  from  public  administration  received 
training  on  ethics  and  subsequently  becoming  trainers  themselves.  Moreover,  10  academic 
studies  on  topics  such  as  "public  bidding  and  ethics",  "the  shadow  economy  and  ethics", 
"ethics  and  the  customs  services"  were  carried  out.  For  instance  the  studies  determined 

144 

 
 
  
 
corruption  risks  related  to  unethical  behaviour  and  contributed  to  the  development  of  new 
strategies on combating corruption by filling the gap on the issue. Subsequently the Council 
of Ethics presented he results of the studies followed by public debates.  

Effective measures have been carried out to encourage the adoption of a code of conduct in 
line  with  EU  standards,  such  us  the  legislative  ethics  and  judicial  ethics  workshops  on  the 
needs  and  possibilities  of  developing  codes  of  conduct  for  elected  office  holders  and  the 
judiciary.  The  effectiveness  of  codes  of  conduct  and  anti-corruption  legislation  in  Turkey 
(criminal  law  measures,  Public  Information  Act,  Regulation  on  the  Principles  of  Ethical 
Behaviour  etc.)  was  evaluated,  specific  anti-corruption  measures  were  proposed,  national 
conferences on the prevention of corruption were organised, and recommendations for future 
anti-corruption measures to promote ethics were provided. 

The  Chair  of  the  Council  for  Ethics  In  Public  Service)  commented  on  the  outcome  of  the 
project:  "one  of  the  most  important  aspects  of  our  council’s  work  covers  developing  and 
extending  ethical  culture  in  the  public  sphere.  The  project,  which  serves  this  objective,  is 
unique  in  Turkey  in  terms  of  its  objectives  and  activities.  The  academic  studies,  ethics 
leadership  seminars,  conferences  on  ethics  and  combating  corruption,  and  other  efficient 
activities  of  the  project,  beyond  reaching  the  objectives,  form  a  strong  basis  for  future 
projects” 

9.3.2.5.  Joint Monitoring Committees/Sector Monitoring Sub-Committees 

During  the  year  two  Joint  Monitoring  Committee  (JMC)  meetings  were  organised  in 
combination with IPA Transition Assistance and Institution Building Monitoring Committees 
on  7th  of  February  and  on  29th  June  2010.  The  implementation  and  programming  of  the 
financial assistance has been discussed in detail, including specific risky projects, and how to 
sustain the impact of projects in a more general way. Problems of sustainability persisted and 
need  to  be  addressed  during  programming,  implementation  and  ultimately  also  after  project 
completion. The National Aid Coordinator, the Ministry for EU Affairs, undertook to organise 
meetings  to  discuss  how  sustainability  can  be  underpinned  and  checked  through  ex-post 
monitoring. 

145 

 
 
10. 

MULTI-BENEFICIARY  

10.1. 

Summary  

Regional  cooperation  in  South  East  Europe  has  made  important  progress  in  recent  years,  in 
particular in the areas of trade, energy and transport and cooperation in public administration 
reform. However, more efforts are needed to improve the efficiency of regional structures and 
initiatives  and  to  overcome  bilateral  disputes  and  disagreements  which  hinder  the  effective 
functioning of regional organisations.  

Multiple  challenges  still  lie  ahead  for  the  Western  Balkans  to  achieve  the  overall  goal  of 
membership.  In  particular,  political  instability,  the  lack  of  progress  in  the  fight  against 
organised  crime  and  corruption  as  well  as  continuing  investment  shortfalls,  mainly  in 
transport and energy infrastructure, remain major challenges.  

In this light, during programming IPA assistance for 2011- 2013 particular attention has been 
given  to  projects  that  support  the  beneficiaries  to  overcome  the  economic  and  financial 
crisis  and  prepare  for  sound  recovery  by  frontloading  financial  support  for  priority 
investments  in  infrastructure,  in  close  coordination  with  International  Financial  Institutions 
(IFIs),  also  by  supporting  regional 
the  areas  of  public 
initiatives. 
administration,  human  rights  and  minorities,  the  rule  of  law  and  the  fight  against 
organised crime and corruption as well as education and environment have been selected as 
priorities for the next years. 

  Furthermore, 

10.2. 

Strategic planning and programming  

10.2.1.  Multi-annual Indicative Planning Document  

The purpose of the Multi-Annual Indicative Planning Document (MIPD) 2011-2013, prepared 
during 2010,  is to set out the EU's priorities for multi-beneficiary assistance in the candidate 
countries  and  potential  candidates.  Multi-beneficiary  assistance  is  provided  through 
component I of IPA and is delivered through regional and horizontal projects.  

Areas of intervention will only be addressed through multi-beneficiary assistance where there 
is  a  clear  need  for  regional  cooperation  or  horizontal  action,  for  instance  through  tackling 
cross-border  problems  or 
through  establishing  harmonised 
approaches,  leveraging  established  instruments  or  facilitating  networks  of  experts.  In  the 
period 2011-2013, funds available for this will total around EUR 521 million for component I.  

in  obtaining  efficiencies 

The strategic priorities of the MIPD draw from needs identified in the European/ Accession 
Partnerships, as well as the latest progress reports, included in the Enlargement Package. The 
beneficiaries,  local  stakeholders  such  as  the  Regional  Cooperation  Council  (RCC),  civil 
society organisations, EU Member States, other donors and international financial institutions, 
as  well  as  other  Commission  Services  responsible  for  specific  sector  policies  have  been 
consulted in the design of the MIPD.  

The  priorities  selected  for  support  under  the  2011-  2013  multi-beneficiary  MIPD  are 
addressed under the following sectors:  

146 

 
 
1.  Justice  and  Home  Affairs,  including  fundamental  rights  and  vulnerable  groups:  focuses 
on the rule of law and the fight against organised crime and corruption, respect of human 
rights and protection of minorities. 

2.  Public Administration Reform:  the overall objective in this area is to contribute towards 
upgrading  the  operational  capacities  and  professionalism  of  public  administrations  at 
central, regional and down to local level, in the Western Balkans and Turkey, as well as to 
promote  regional  cooperation  through  knowledge  transfer,  networking  and  exchange  of 
experience,  by  using  existing  instruments,  in  particular  SIGMA  and  ReSPA.  The  sector 
also  includes  support  to  statistics  with  the  aim  to  upgrade  and  strengthen  the  statistical 
systems of the Beneficiaries. 

3.  Support to Civil Society: here assistance mainly supports the Civil Society Facility. Media 

freedom and freedom of expression are also mentioned in this context.  

4.  Private  Sector  Development:  support  aims  to  raise  regional  competitiveness,  increase 
competence of human capital, attract investment and provide financing to SME as well as 
help  to  establish  a  business  climate  conducive  to  the  development  of  SMEs  and  to 
facilitate trade.  

5.  Transport and Energy Infrastructure, including Nuclear Safety:  assistance in this sector 
will  increase  the  access  to  finance  for  investments  in  priority  infrastructure  projects, 
including investments in energy efficiency and renewable energy which has emerged as a 
potential key driver of recovery from the economic crisis and sustainable growth.  

6.  Environment  and  Climate  Change:  assistance  in  this  sector  will  focus  on  strengthening 
regional cooperation, mainly through the Regional Environmental Network for Accession 
(RENA), in strategic planning for environmental policy and investments, aligning with the 
EU acquis and developing capacities in the area of disaster risk reduction and adaptation 
to climate change.  

7.  Social Development:  includes the programmes of Erasmus Mundus and Youth in Action 
as  well  as  Tempus.  In  addition,  support  will  be  provided  to  regional  cooperation  in 
cultural heritage and reappraisal of history as a means of dialogue and reconciliation in the 
Western Balkans. 

The  MIPD  builds  upon  experience  from  previous  and  existing  EU  financial  assistance. 
Regarding  the  programming  process,  experience  has  shown  that  regular  and  timely 
communication to facilitate the involvement of beneficiaries and improve ownership of the 
programmes is of paramount importance. Consequently, detailed programme plans, including 
timelines  and  draft  documents  for  comments,  have  been  distributed  to  IPA  beneficiaries. 
Multi-beneficiary  coordination  meetings  take  place  regularly  throughout  the  year  and  allow 
for  discussion  on  the  status  of  current  and  future  programming  as  well  as  project 
implementation.  

Table 1: MIFF60 allocations per component, in million EUR 

Component 

2010 

2011 

2012 

2010-2012 

I – Transition Assistance and Institution 
Building
II – Cross-border co-operation
TOTAL

138.97

173.46

168.86 

4.92
143.89

5.29
178.75

5.67 
174.53 

481.29

15.88
497.17

60 

Communication from the Commission to the Council and the European Parliament 'Instrument for Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', COM(2009) 
543 of 14.10.2009. 

147 

 
 
                                                 
10.2.2.  Programming exercise  

10.2.2.1. Component I   

Table 2: Indicative financial allocations for the year per component, in million EUR 

MULTI-BENEFICIARY 
I. Transition Assistance and Institution Building 

Of which: 

Multi-beneficiary Programme 1 
Multi-beneficiary Programme 2 
Amendments to MBP 1 and 2 2009 
Support to the operational budget of the Office of the High Representative 
(OHR) in Bosnia and Herzegovina 
Support to the Interim Civilian Office Kosovo 
Tempus 
Nuclear safety and radiation protection 
Contribution to the Energy Community Secretariat 
TAIEX 
Information and Communication  
ERDF 
Evaluation, Monitoring and Audit 

TOTAL 

2010 
162.7061

81.02
6.48
6.50
5.30

7.00
13.80
7.07
3.19
17.00
10.00
1.34
4.00
162.70

The  objective  of  the  pre-accession  assistance  provided  under  the  2010  multi-beneficiary 
programmes  was  to  address  the  three  priority  areas  identified  in  the  MIPD  2009-2011, 
namely:  political  and  economic  criteria  as  well  as  the  ability  to  assume  the  obligations  of 
membership and approximation to European standards.  

An assessment of the multi-beneficiary MIPD 2009-2011 was carried out at the beginning of 
2010 with the objective to check its validity in light of developments in the region and main 
challenges ahead. It was concluded that the scope, overall objectives and strategic choices of 
the  2009-2011  MIPD  remained  valid  also  for  2010.  All  stakeholders,  including  the  donors' 
community were informed about the process and conclusions of  this  assessment and agreed 
that a revision of the MIPD was not required at this stage. 

The assessment of the 2009-2011 multi-beneficiary MIPD constituted a stepping stone toward 
an  in-depth  and  comprehensive  revision  of  the  strategy  in  the  2011-2013  multi-beneficiary 
MIPD.  A  number  of  Working  Groups  were  set  up  to  provide  a  framework  for  discussions 
with  beneficiaries,  donors,  civil  society  and  other  stakeholders,  analysing  in  particular  the 
needs for regional cooperation.  

Discussions in those Working Groups provided valuable contributions to the development of 
specific sector plans that in turn fed into the draft MIPD for 2011-2013. This process allowed 

61  

This amount includes national funds for Tempus and Nuclear safety and radiation protection, amounts 
in other budget lines for actions specified in the multi-beneficiary MIPD, as well as the use of carried 
over assigned revenues. 

148 

 
 
 
                                                 
better  tailoring  of  the  new  multi-beneficiary  strategy  according  to  the  needs  of  the 
beneficiaries in the region while at the same time enhancing ownership of the programme and 
complementarity of regional and horizontal programmes with national strategies. 

Two  multi-beneficiary  donor  coordination  meetings  have  been  organised  in  2010  with  EU 
Member  States,  International  Financial  Institutions  (IFI),  the  Regional  Cooperation  Council 
and  other  stakeholders.  IPA  multi-beneficiary  coordination  meetings  with  beneficiaries  are 
held approximately three times a year and regular updates on the outcomes of each step in the 
programming  cycle  are  transmitted  to  stakeholders.  Such  involvement  affords  beneficiaries 
the opportunity to judge their absorption capacity for each project as well as to evaluate how 
each project would fit into the national plans.  

The  2011  programming  exercise  was  initiated  by  mid  2010  while  drawing  on  the  planning 
framework  provided  in  the  various  sector  working  groups  and  aligning  with  the  priorities 
identified in the 2011 – 2013 MIPD.  

Table  3:  Indicative  financial  allocations  for  the  year  2010  under  the  multi-beneficiary 
Programmes, per priority axis and per project, in million EUR 

Priority Axis / Projects 
Political Criteria  

Support  to  the  operational  budget  of  the  Office  of  the  High 
Representative (OHR) in Bosnia-Herzegovina 
Support to the Interim Civilian Office Kosovo 
Support for Improvement in Governance and Management (SIGMA) 

Improving Public Financial Management in the Western Balkans 

Cross-Border Institution Building Phase II  
Regional Initiative for Roma Integration  
Fight  against  organised  crime  and  corruption:  Strengthening  the 
Prosecutors' Network  
Regional Co-operation in Criminal Justice: Strengthening capacities in 
the fight against cybercrime  
Civil Society Facility (CSF)  
INSPIRATION - Spatial Data Infrastructure in the Western Balkans  

Support  to  the  operating  expenditures  of  the  RCC  Secretariat  and 
Strengthening the RCC Secretariat 
Support  to  the  Ljubljana  Process  II  –  Rehabilitating  our  Common 
Heritage 
Support 
implementation by the RCC Secretariat 
Strengthening the Southeast European Joint History Project as a strong 
tool for reconciliation in Southeast Europe 
Amendment MBP 1 2009 – Refugee return 

the  South  East  Europe  Investment  Committee  – 

to 

Economic Criteria  

Implementation  and  follow-up  of  the  Small  Business  Act  in  the 
Western Balkans  
Infrastructure Project Facility – Technical Assistance Window  

Erasmus Mundus Action 1: Western Balkans - Turkey Windows 

149 

Budget  
56.78
5.30

7.00
10.00

1.00

1.50
3.00
5.00

2.50

12.00
1.50

3.20

1.50

0.80

0.98

1.50
58.56
0.30

15.12

8.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Erasmus Mundus – Action 2: Partnerships, Lot - Western Balkans  

Youth in Action Programme – Western Balkans Window  
Western Balkans Regional Strategy on Research and Development for 
Innovation  
EEF (Green for Growth Fund) 
Tempus 
ERDF 

Ability to assume the obligations of membership 

Systematic Electronic Exchange of Data (SEED)  
Statistical Cooperation  
Nuclear Safety 
Energy Community 
TAIEX 

Information and Communication  

Information and Communication  

Supporting programmes  

Strengthening European Integration  
Evaluation, Monitoring and Audit 

TOTAL 

12.00

1.50
1.50

5.00
13.80
1.34
29.56
1.30
1.00
7.07
3.19
17.00
10.00
10.00
7.80
3.80
4.00
162.70

The table above reflects consistency in the distribution of the multi-beneficiary assistance by 
the  different  areas  of  intervention  as  indicated  in  the  multi-beneficiary  MIPD  2009-2011, 
where strong emphasis was given to the area of “addressing the economic criteria” in view of 
helping beneficiaries to tackle the effects of the financial crisis. In accordance with the 2009 
Enlargement paper's strategic orientations, regional co-operation, the  fight against organised 
crime and corruption, good governance as well as support to civil society have been addressed 
under the political criteria in the 2010 multi-beneficiary programmes. 

10.3. 

Implementation of assistance  

10.3.1.  IPA 

10.3.1.1. Success stories  

The Regional School of Public Administration: The formal opening of the Regional School 
of  Public  Administration,  ReSPA,  on  11  November  in  Danilovgrad,  Montenegro  by 
Commissioner  Füle  and  Milo  Djukanovic,  Prime  Minister  of  Montenegro  marked  an 
important deliverable of the Multi-beneficiary IPA assistance. The school's aim is to reinforce 
regional  co-operation  and  strengthen  administrative  capacity  in  the  Western  Balkans.  It 
follows  the  principles  of  the  'European  Administrative  Space'  in  which  public  servants  in 
European countries meet to exchange views and best practices on the implementation of EU 
legislation.  The  EU  has  provided  more  than  EUR  7  million  in  technical  assistance  and 
equipment  and  is  planning  to  finance  another  EUR  7  million  adding  to  the  foreseen 
contributions of national authorities.  

Some of the main activities of the ReSPA project include seminars, conferences and training 
for  public  administration  professionals,  as  well  as  publications,  training  material  and  the 
creation of an electronic library. 

150 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
European Fund for Southeast Europe (EFSE): EFSE is a Public - Private Partnership with 
the aim of attracting private sector capital and thereby leveraging the public donor funds for 
the  development  of  the  private  sector  (SMEs  and  households)  in  the  region.  EFSE  is 
extending  loans  to  partner  lending  institutions  such  as  local  commercial  banks  and  micro 
finance  institutions.  EFSE  invests  in  one  of  the  world's  growing  emerging  markets,  namely 
fourteen  countries  of  the  region  of  Southeast  Europe,  including  the  European  Eastern 
Neighbourhood Region. Currently, EFSE has provided approximately 270,000 sub-borrowers 
with  a  total  amount  of  EUR  1.50  billion.  It  has  thereby  created  280,000  new  jobs,  a 
remarkable social impact. The maximum loan size is EUR 100,000 but the average loan size 
is EUR 4 700. 

EFSE was awarded first prize at the G-20 summit in Seoul, receiving by far most votes in the 
competition  'SME  Finance  Challenge'.  With  this  award,  the  innovative,  crisis-resistant  fund 
model for financing SMEs has received one of the highest credentials possible.  Since 2005, 
the European Commission has contributed with a total amount of EUR 70 million to the Fund. 
The  assets,  represented  via  European  Investment  Fund  (EIF)  were  worth,  at  end  2010, 
approximately EUR 100 million.    

The  Western  Balkans  Investment  Framework  (WBIF):  In  its  first  year  of  existence  the 
implementation of the WBIF has made substantial progress, demonstrating that it is a useful 
and efficient mechanism of financing important investment projects in the Western Balkans. 
The  Joint  Grant  Facility  (JGF)  has  been  very  active  in  meeting  its  main  objective  which  is 
pooling stakeholders’ resources (grants and loans) and expertise together to finance projects, 
as well as strengthening coordination among donors and beneficiaries.  

In  2010,  a  total  of  81  projects  were  approved  and  grants  of  a  total  value  of  EUR  139.20 
million were handed out under the framework. It was decided to provide technical assistance 
to  69  projects  and  12  projects  will  receive  investment  co-financing  under  the  Infrastructure 
Project Facility Municipal Window, altogether corresponding to investments of an estimated 
total value of EUR 6.80 billion. There is a relatively balanced distribution of grants by sector, 
with environment accounting for 49%, followed by transport with 26%, energy with 16% and 
the social sector with 9%. 

The JGF Project Financier's Group (PFG) met four times during the year in order to monitor 
the  implementation  of  the  WBIF  and  discuss  submitted  projects.  The  third  Steering 
Committee  (SC)  of  the  WBIF  took  place  in  London  on  16th  December  2010.  The  meetings 
gathered more than 70 participants representing the donors to the European Western Balkans 
Joint  Fund  (EWBJF),  the  beneficiaries  (NIPACs),  the  IFIs,  the  Commission  and  regional 
organisations.  

During the meeting, the annual report 2010 of the WBIF was presented, the new website of 
the  WBIF  was  formally  launched  (www.wbif.eu)  and  the  work  underway  to  update  and 
upgrade the database on investment flows from the EU, IFIs and bilateral donors to the region 
was previewed. The resources and proposed work programme for 2011 as well as the next call 
for  project  submissions  were  presented.  The  SC  meeting  also  provided  an  opportunity  to 
enhance  further  the  coordination  between  donors,  the  Commission  and  beneficiaries  in  the 
area of policy and strategy.   

Bilateral  donors  have  pledged  new  funding  of  EUR  10.00  million  for  the  WBIF  and  the 
European  Commission  announced  that  EUR  70.00  million  of  the  IPA  multi-beneficiary 
assistance will be channelled into the WBIF in 2011.  

151 

 
 
 
Erasmus Mundus (Action 1 and Action 2):  

Apart  from  scholarships  offered  to  students  from  third  countries,  as  from  2009  additional 
scholarships for students from Western Balkans and Turkey have been made available under 
the so called ”Western Balkans and Turkey Window” of  Erasmus Mundus Action  1. This 
programme supports degree-seeking mobility in the form of joint courses.  In 2010 under this 
window a total of 188 students from the Western Balkans and Turkey were selected for the 
academic year 2010/2011.  

Under  Erasmus  Mundus  Action  2  (aiming  at  promoting  institutional  co-operation  and 
mobility activities) three projects were selected for the Western Balkans Lot in 2010. One is 
coordinated  by  the    Karl-Franzens  University  of  Graz  (also  managing  the  mobility  of  202 
individuals  from  the  Western  Balkans),  one  by  the  University  of  Ghent  (also  managing  the 
mobility  of  230  individuals  from  the  Western  Balkans)  and  one  by  the    City  University 
London also managing the mobility of 184 individuals from the Western Balkans). 

In  2010,  EUR  8  million  were  allocated  for  Action  1  and  EUR  12  million  for  Action  2 
respectively with activities starting in the academic year 2011/2012. It is foreseen that under 
Action 1 approximately 141 scholarships will be financed altogether, out of which those for 
participation in Joint Master Courses amount to 117 and respectively to 24 in Joint Doctorate 
Programmes.   

10.3.1.2. Overview of IPA implementation in 2010 

Component I: Transition Assistance and Institution Building  

Table 4: Status of implementation of IPA financial assistance (Component I) as at 31st 
December 2010 (in million EUR) per annual programme62  

Committed  Contracted  % Contracted  Paid 

% Paid 

IPA 2007 
IPA 2008 
IPA 2009 
IPA 2010 
TOTAL 

153.42 
196.54 
247.92 
162.70 
760.58 

120.07
169.61
192.52
55.93
538.13

78.26% 108.60 
86.30%
90.89 
77.66% 116.66 
34.38%
29.86 
70.75% 346.01 

70.79%
46.25%
47.06%
18.35%
45.49%

62  For  contracted  and  paid  amounts,  only  programmes  managed  centrally  by  DG  ELARG  were  taken  into 
account  (i.e.  no  Erasmus  Mundus,  Youth,  Tempus,  contribution  to  the  Energy  Community  Secretariat  and 
ERDF). Therefore the actual percentages of contracted and paid amounts are higher.  

152 

 
 
 
 
 
 
 
 
                                                 
 
Table 5: Distribution of total committed funds (2007-2010 allocations) by priority axes 

Priority Axes 

Political criteria 
Civil Society 
Support to interim civilian administration 
Economic criteria 
Ability to assume membership obligations 
Regional support programmes 
TAIEX / SIGMA 
TEMPUS/Education/Youth 
Communication 
Nuclear safety 
Technical  Support,  monitoring,  audit  and 
evaluation 
TOTAL 

% of 2007-2010 allocations 
6.61%
5.26%
6.83%
31.79%
7.00%
2.89%
9.03%
18.09%
4.38%
4.03%
4.09%

100%

All  Beneficiaries  can  participate  in  (formerly  Community)  EU  Programmes,  Agencies  and 
Committees on a case-by-case basis and the ticket to participate in those is financed through 
the  National  Programmes.  As  was  the  case  with  previous  Enlargements  however,  the  EU 
supports the Agencies to prepare their counterparts in the Beneficiaries for participation in the 
activities of the EU Agencies either, if permitted, prior to accession or following accession to 
the  EU.  Multi-Beneficiary  assistance  continued  in  2010  to  be  provided  to  the  following 
Agencies: 

•  CPVO (Community Plant Variety Office) – EUR 400 000 

•  EASA (European Aviation Safety Agency) – EUR 700 000 

•  ECDC (European Centre for Disease Prevention and Control) – EUR 400 000 

•  ECHA (European Chemicals Agency) – EUR 200 000 

•  EEA (European Environment Agency) – EUR 1 200 000 

•  EFSA (European Food Safety Authority) - EUR 1 000 000 

•  EMCDDA (European Monitoring  Centre  for Drugs and Drug  Addiction) – EUR 900 

000 

•  EMSA (European Maritime Safety Agency) – EUR 300 000 

•  ERA (European Railway Agency) – EUR 200 000 

•  EU-OSHA (European Agency for Safety and Health at Work) – EUR 900 000 

•  EUROFOUND  (European  Foundation  for  the  Improvement  of  Living  and  Working   

Conditions) – EUR 700 000 

•  EMEA (European Medicines Agency) – EUR 900 000 

153 

 
 
A  new  programme  is  expected  to  be  adopted  in  2011  as  to  continue  the  work  with  these 
Agencies and with the new agency: European Institute for Gender Equality.   

10.3.1.3. Implementation Modalities and Structures  

Multi-beneficiary programmes are implemented by direct centralised management, by indirect 
centralised  management,  by  joint  management  with  an  International  Organisation  based  on 
Article  53a  and  d  of  the  Financial  Regulation,  or  by  decentralised  management  (for  some 
projects  under  the  Nuclear  Safety  and  Radiation  Protection  programmes).  In  some  specific 
cases crossed sub-delegation to other Commission services for the implementation of projects 
under centralised management is also foreseen. 

10.3.1.4. Monitoring 

The  successive  introduction  of  monitoring  maps  for  each  project  has  helped  to  better 
demonstrate  progress  in  implementation  and,  if  necessary,  decide  on  additional  checks  or 
corrective actions whenever required. The monitoring of Multi-beneficiary projects comprises 
also  on  the  spot  verifications  by  Project  Managers,  participation  in  Project  Steering 
Committees, implementation reports as well as the Results Oriented Monitoring (ROM).  

Through  a  consistent  approach,  with  standardised  outputs,  ROM  highlights  strengths  and 
weaknesses  in  the  implementation  of  EU  external  assistance  projects,  by  assessing  each 
project’s  relevance,  quality  of  design,  efficiency,  potential  impact  and  sustainability.  The 
general  principle  and  aim  is  to  monitor  ongoing  projects  of  at  least  EUR  1.00  million  EU 
contribution and a minimum duration of 12 months. The total number of regional/horizontal 
projects  monitored  during  2010  reached  26.  No  reports  flagged  serious  problems  in  the 
project implementation. 

A total number of 68 regional/horizontal projects were monitored during the whole three-year 
period from end November 2007 to end November 2010 by the ROM contractor ICCS-NTUA 
and a total of 440 sets of ROM outputs produced. The projects to be monitored are chosen on 
the  basis  of  the  general  principles  but  are  still  subject  to  discussion  by  the  Unit  with  the 
contractor. A new contract was signed with PARTICIP GMBH for a period of two years as 
from December 2010. 

10.3.2.  CARDS (and PHARE for HR) or TPA 

10.3.2.1. Sectors with positive results/ Success stories  

Under Phare, the implementation of horizontal programmes has offered wide possibilities of 
co-operation  with  the  European  Investment  Bank  (EIB)  and  International  Financial 
Institutions (IFIs) such as the European Bank for Reconstruction and Development (EBRD) 
and  the  Council  of  Europe  Development  Bank  (CEB)  in  association  with  Kreditanstalt  für 
Wiederaufbau (KfW) by allowing the blending of IFI loans with EU grants. These horizontal 
programmes have complemented the investment projects financed by national programmes.  

Four types of programmes have been developed as follows. 

The SME Finance Facility (SMEFF) has been set up to strengthen the capacities of financial 
intermediaries (i.e. banks, leasing companies) in beneficiary countries to expand and sustain 
their financing operations to SMEs. The SMEFF projects include the provision of loans, loan 

154 

 
 
 
 
guarantees, and leases for local financial intermediaries in combination with non-reimbursable 
financial  incentives.  In  turn,  financial  intermediaries  on-lend  or  lease  to  individual  micro-
enterprises  or  SMEs.  Since  2005,  the  only  eligible  countries  have  been  Bulgaria,  Croatia, 
Romania  and  Turkey.  At  the  end  of  December  2010,  the  total  amount  of  EU  incentives 
earmarked for projects increased, in particular in the newly introduced energy efficiency area 
and reached about EUR 320 million. 

Under the Municipal Finance Facility (MFF) local financial intermediaries are supported to 
extend loans to the municipalities. The mechanism of the programme is similar to this one of 
the  SMEFF.  In  2010,  the  pace  of  development  and  signature  of  new  projects  steadily 
accelerated,  mainly  due  to  the  conclusion  of  amendments  to  the  Contribution  Agreements 
extending  the  sub-programme  deadlines.  However,  the  overall  progress  remained  relatively 
slow due to high administrative costs, delays in regulatory reforms in some countries, and the 
inexperience of the  municipalities to  prepare credit files. At the end of December 2010, the 
total amount of EU incentives committed into projects was over EUR 81 million.  

 The  objective  of  the  Municipal  Infrastructure  Facility  (MIF)  is  to  contribute  towards  the 
social and economic development of border regions of the EU-15 Member States. To this end, 
the  MIF  combines  loans  from  EIB  resources  with  non-reimbursable  Phare  support  to 
accelerate the completion of small local infrastructure investments. By the end of 2010, about 
EUR 40 million was disbursed.  

The  Energy  Efficiency  Finance  Facility  (EEFF)  was  launched  in  2006  to  stimulate  energy 
efficiency  investments  in  all  types  of  building  and  in  the  industry  sector  by  making 
appropriate  financing  available  to  the  end-borrowers.  The  overall  results  of  the  programme 
will be savings in energy and a significant reduction of CO2 emissions.  

The  EEFF  combines  IFI  credit  lines  extended  to  financial  intermediaries  with  incentives  to 
improve the cost effectiveness of equipment and make the energy investment more attractive, 
and fees to the benefit of local financial intermediaries to encourage them to onward-lending. 
By  the  end  of  2010,  large  amounts  were  contracted  (EUR  53  million  in  three  Contribution 
Agreements) and an increased number of new projects for a total amount of EUR 35 million 
approved.  

At the end of 2010, four Commission decisions of 2005 and 2006 establishing a Phare Multi-
beneficiary programme on the SME Finance Facility, Municipal Finance Facility and Energy 
Efficiency Finance Facility with the CEB in cooperation with KfW were amended to extend 
the end date for the conclusion of the Project Agreements to allow for proper implementation 
and full utilisation of Phare resources by making them available to the Green for Growth Fund 
(GGF)  and  the  European  Fund  for  South  East  Europe  (EFSE).  Five  other  amendments  to 
Commission decisions regarding the 2006 Facilities with the EIB and the EBRD allowing for 
energy efficiency investments and extension of the end date for the conclusion of the Project 
Agreements  were  under  preparation.  In  addition,  the  Commission  continued  the  reshaping 
process of the Facilities, focusing in particular on energy efficiency measures. 

Under  the  CARDS  Regional  Action  Programme  2005,  the  project  "International  Law 
Enforcement Co-ordination Units ILECUS" has contributes to officially open an ILECU, i.e. 
national platforms for international police co-operation in all the beneficiaries. 

The  project  "Assessment  of  Corruption  in  the  Western  Balkans"  under  CARDS  2006 
produced  a  survey  on  Corruption  in  the  Western  Balkans:  Bribery  as  experienced  by  the 

155 

 
 
population. It captures the actual experience of ordinary citizens and how bribery affects their 
dealings with the public administration. The survey will help in the development of effective 
anti-corruption policies. It also provides a benchmark to assess future progress. 

The  project  "Support  to  the  Prosecutors'  Network"  under  the  CARDS  Regional  Action 
Programme  2006  ended  in  July  2010.  In  all  beneficiaries  the  project  contributed  directly  to 
establishing  and  developing  co-operation  between  the  Prosecutor’s  Offices  in  the  Western 
Balkans. The most significant effect, both in terms of quality and quantity, was produced at 
the  level  of  strengthening  the  human  capacities  of  the  prosecution  services,  ministries  of 
justice  and  other  authorities  targeted  by  the  project  activity.  All  the  beneficiaries  indicated 
that  the  work  on  the  preparation  and  conclusion  of  bilateral  agreements  regulating  either 
specific forms of mutual assistance or direct co-operation between the prosecutors intensified 
in  the  recent  years.  Moreover,  the  revised  Memorandum  of  Understanding  provides  a  solid 
basis to sustain the project impact over the next years, provided that authorities are committed 
to undertake the necessary steps to achieve the goals set out in this document. Contact points 
for  the  Prosecutors’  Network  from  all  the  beneficiaries  recognised  that  the  project  was 
essential for maintaining the Network. 

10.3.2.2. Institution Building highlights  

Under the CARDS regional Action Programme 2006, Technical Assistance has been provided 
to  beneficiaries  to  support  them  in  the  implementation  of  the  European  Common  Civil 
Aviation Area Agreement. The project has been successfully completed during 2010 and the 
national  administrations  had  received  comprehensive  training  and  capacity  building  through 
assignments of long and short term experts, workshops, seminars and study visits in the fields 
of aviation legislation, economic regulation, aviation safety, air traffic management, aviation 
security and airport regulation. 

Under the Phare 2006 Programme on Statistical cooperation for Bulgaria, Croatia, Romania 
and Turkey, Eurostat completed its training activities to upgrade and strengthen the statistical 
systems  in  the  beneficiaries  by  improving  the  availability,  quality,  comparability  and 
timeliness  of  statistical  data  in  particular  in  macro-economic,  price,  external  trade, 
agricultural,  demographic,  social  and  business  statistics.  A  number  of  experts  from  the 
National  Statistical  Institute  of  Bulgaria,  the  Central  bureau  of  Statistics  of  Croatia,  the 
National  Institute  for  Statistics  of  Romania  and  the  Turkish  Statistical  Institute  attended 
workshops or seminars and participated in technical meetings organised by Eurostat and other 
Commission services. 

156 

 
 
 
 
 
 
 
 
 
PART II: FINANCIAL ASSISTANCE TO FORMER 
CANDIDATE COUNTRIES 

1. 

Summary  

Following the end of implementation of the Transition Facility 2006 programme at the end of 
2009  in  the  10  Member  States  that  joined  the  EU  in  2004  (hereinafter,  the  EU  10),  the 
national  authorities  concentrated  in  2010  mainly  on  monitoring  and  evaluation  of  results, 
payments to the beneficiaries and tasks related to the proper closing and phasing out of Phare 
and Transition Facility programmes, including some institutional changes. 

For Bulgaria and Romania the pre-accession assistance has been completed and closed down 
in terms of operational implementation in 2010 with the expiry of the deadline for execution 
of  contracts  under  Phare  2006  and  under  the  Transition  Facility.  The  project  results  and 
objectives  have  been  successfully  achieved  and  no  major  problems  in  the  project 
implementation have been reported.  

2. 

Implementation of PHARE and Transition Facility assistance in 2010  

2.1. 

Taking stock of pre-accession and post-accession assistance  

Bulgaria 

In 2010, thirteen thematic evaluations have been carried out in Bulgaria concerning Phare and 
Transition Facility projects by external experts contracted under TF 2007. Together with the 
results  of  two  national  interim  evaluations,  the  reports  reveal  the  main  strengths  and 
weaknesses  in  the  management  of  EU  assistance  and  provide  useful  advice  for  the  future 
assistance under Operational Programmes: 

1) 
The  EU  assistance  has  proven  to  be  particularly  effective  in  certain  sectors,  such  as 
civil society development and community-based services for vulnerable members of society. 
Thus,  the  main  achievements  of  the  financial  assistance  consisted  in  strengthening  the 
capacity  of  the  NGOs  in  Bulgaria  to  participate  in  the  accession  process;  development  of 
partnerships with public bodies and business; improving the access of vulnerable groups and 
minorities  to  social  services  and  labour  marker;  enhancing  transparency  and  prevention  of 
corruption.  The  assistance  also  significantly  contributed  to  the  upgrading  of  human  capital 
and  enhancing 
implementing 
organisations. 

the  administrative  capacity  and  competences  of 

the 

On the other side, road construction projects under Phare were assessed as less effective, as 
they  suffered from significant delays and exceeded the budget. According to  the evaluator's 
conclusions Phare interventions in this sector have been affected by insufficient project design 
and  planning,  difficult  and  time  consuming  procedures  for  land  acquisition,  insufficient 
performance of some works contractors and insufficient capacity of the managing authorities.   

2) 
As  regards  the  grant  schemes  the  evaluators  recommend  to  establish  a  clear  link 
between  objectives  and  results  and  the  indicators  to  measure  their  achievement  and  include 
target values and baseline data. Moreover, the evaluation on the grant schemes has drawn the 
conclusion  that  complex  grant  schemes  with  several  parallel  objectives  were  difficult  to 

157 

 
 
manage and led to insufficient results. The lessons learnt as regards the large grant schemes 
concern  the  need  for  more  careful  planning  of  interventions  by  defining  clear  and  limited 
number  of  objectives  and  taking  into  account  the  capacity  of  the  beneficiaries,  the  risk  of 
failure of more complex projects and the need of partnerships. 

3) 
In  the  thematic  report  on  twinning  the  main  conclusion  is  that  twinning  has  been  a 
preferred instrument for institution building under Phare in Bulgaria and has been used two 
times more often than Technical Assistance. The reason for the success of twinning is the fact 
that it is much more flexible and hence its project activities could be timely adjusted to the 
current needs of the beneficiary organisation.    

Success Stories 

Civil Society Development Phase 1 (BG 2004/016-711.01.01) and Phase 2 (BG 2005/017-
353.01.01) – Grant Schemes 

The  objective  of  this  multi-annual  project  was  to  support  the  civil  society  and  its  role  in 
strengthening the rule of law and democratisation; increase the capacity of the NGO sector by 
enhancing its participation in the accession process; promote partnerships with public bodies 
and ensure access of minority groups to the public services and the labour market.  

With  a  budget  of  EUR  1.48  million  of  Phare  funds  for  phase  1  and  EUR  2.65  million  for 
phase  2,  more  than  1,300  events  were  organized,  including  workshops,  conferences  and 
seminars,  round  tables,  cultural  events  and  information  services  delivered  in  areas  such  as 
equal  opportunities,  human  rights  and  protection  of  minorities,  regional  development, 
environmental  protection  and  youth  to  the  benefit  of  a  large  number  of  citizens  (about 
20,000). Youth and children, and representatives of vulnerable groups comprised the biggest 
share  of  direct  beneficiaries,  thus  the  individual  grant  contracts  contributed  to  enhancing 
social integration and inclusion.  

The assistance contributed to enhancing the capacity and competences of the NGO sector in 
three directions: project implementation; management, monitoring, evaluation of EU funded 
projects; and work with target groups. Local authorities also gained experience in both project 
implementation and resolving issues of local/social importance. The partnerships developed, 
including  public  private  partnerships,  and  the  networks  created  were  also  valuable.  Another 
important  result  was  the  increased  awareness  and  tolerance  of  the  community  about  the 
specific problems of minorities and vulnerable groups.  

Success Story 2 

Deinstitutionalisation  through  provision  of  community  based  services  for  risk  groups 
Phase 1 (BG 2004/016-711.01.02); phase 2 (BG 2005/017-353.01.02) and 3 (BG 2006/018-
343.01.01) – Grant Schemes 

The  objective  of  this  multi-annual  project  was  to  support  the  development  and  delivery  of 
community-based  services  for  vulnerable  members  of  society,  including  orphans  and 
handicapped  children,  elderly  people  and  mentally  and/or  physically  handicapped  adults.  In 
addition to Phare funds, national co-financing was provided as follows: budget of EUR 3.84 
million  Phare  funds  and  EUR  1.28  million  national  co-financing  under  Phase  1;  EUR  5.00 
million Phare funds and EUR 1.67 million national co-financing under Phase 2; and EUR 6.4 
million and EUR 2.14 million respectively under Phase 3. 

158 

 
 
The  project  was  successful  in  achieving  its  specific  objectives  for  the  creation  and 
development of a network of community-based social and mental health services. Assistance 
developed  and  supported  208  social  and  mental  health  services.  Individual  grants  supported 
nearly  6,000  children  and  3,000  families  at  risk;  2,900  adults  with  disabilities  or  elderly 
people  and  1,500  people  with  psychiatric  disorders/mental  health  problems.  They  also 
contributed to the restructuring of 25 childcare institutions and 10 institutions for adults with 
disabilities or elderly people. 

The assistance made a tangible contribution to the development of community-based services 
for  vulnerable  people  in  Bulgaria.  It  created  about  two-thirds  of  all  Community  Support 
Centres  and  the  transitional  homes  for  children;  more  than  40%  of  the  day  care  centres  for 
elderly people; about 30% of the day care centres for adults with disabilities and the family-
type centres for accommodation of children; one forth of sheltered homes and about one fifth 
of all day care centres for children with disabilities in the country. 

Access to community-based services, as an alternative to institutionalisation, was improved in 
97 out of 264 Bulgarian municipalities, of which 83% did not have any similar services before 
the start of the project. 

The assistance also significantly contributed to the upgrading of human capital and enhancing 
the capacity of the implementing organisations in working with the target groups as most of 
the grant contracts included training of staff and experts, exchange of experience and transfer 
of knowledge on new approaches. 

Romania 

Altogether ten sectoral evaluations and two thematic evaluations were carried out by external 
experts contracted under TF 2007 in the period February 2010 to December 2010. The ratings 
for the 2010 sectoral interim evaluation reports show an improvement compared to the 2007 
and  2008  ratings  with  the  overall  rating  per  sector  shown  as  satisfactory  with  minor 
differences between sectors (i.e. productive sector and environment sector show lower ratings 
for one or both of these indicators: efficiency and sustainability) 

The general conclusions drawn following the aforementioned evaluations are fairly positive: 

1.  The Phare and Transition Facility assistance is a final round of interventions that 
built on many years of effort. The management structures and the PIUs were more 
mature  and  experienced.  Implementation  efficiency  was  generally  good  where 
many Phare 2006 projects needed to be completed in a shortened implementation 
period.  Progress  is  made  in  disbursements  despite  the  problems  faced  by 
contractors  and  twinning  partners  in  meeting  the  extensive  documentation 
requirements. 

2.  The effectiveness of the assistance continued to be strong in terms of the delivery 
of  outputs.  Major  supplies  of  equipment  were  achieved  in  several  sectors.  The 
feedback on the quality of training provided is generally satisfactory. The visible 
perception  of  wider  impact  is  affected  by  the  slow  progress  in  absorbing  the 
structural  and  cohesion  funds  and  the  continuation  of  the  Co-operation  and 
Verification  Mechanism.  Many  of  the  institutional  results  are  already  sustained 
and  the  remaining  uncertainties  opposing  sustainability  have  reduced  in 
comparison with earlier years. 

Overall lessons learned: 

159 

 
 
1.  In  terms  of  the  management  of  a  significant development  programme,  the Phare 
and  Transition  Facility  interventions  established  the  importance  of  a  strategic 
approach  and  the  use  of  a  logical  framework  for  prioritising  the  implementation 
programmes.  The  need  for  a  large  group  of  actors  to  oversee  the  proper 
management  of  the  programme  was  appreciated  as  a  pre-requisite  to  achieving 
(and  measuring)  the  results.    The  substantial  investment  in  training  people 
conveyed  a  fundamental  principle  held  in  the  EU  of  the  value  and  necessity  of 
training for achieving a modern and efficient administration. 

2.  A  lesson specific to the Phare programme  is  the appropriateness of the different 
implementation  instruments  (technical  assistance,  twinning,  supply  and  grant 
schemes)  in  different  circumstances  and  the  need  for  a  variety  of  instruments  to 
secure  impact  in  a  large  and  wide-ranging  development  programme.  This  was 
apparent  from  the  significant  final  use  of  twinning  and  twinning  light 
interventions in the Transition Facility. Also, the ability of the Phare programme 
to  achieve  results  in  Romania  at  the  level  of  the  individual  citizen  and  in  the 
smallest and most remote communities will be one of its most enduring legacies.  

3.  A  final  horizontal  lesson  that  emerged  from  the  Phare  programme  is  the 
recognition  of  the  importance  of  training  and  development  of  public  officials  to 
achieve  development  results.  In  all  sectors,  the  capacity  for  sustainable  training 
was  generously  supported  by  the  programme  resulting  in  a  basic  competence, 
often  through  the  train-the-trainer  approach,  and  is  extending  the  benefits  of  the 
Phare  interventions.  The  national  co-ordination  of  this  training  resource  is  not 
well established and it would be worthwhile to invest in further consolidation of 
this horizontal capacity.   

Evaluation of EU pre-accession assistance to CBC programmes in Bulgaria and Romania 

A  retrospective  evaluation  of  EU  pre-accession  assistance  to  CBC  programmes  in  Bulgaria 
and  Romania  was  also  carried  out  at  the  end  of  2010.  The  main  conclusion  was  that  the 
relevance  and  intervention  logic  of  CBC  programmes  have  been  satisfactory.  However,  in 
terms of efficiency and effectiveness CBC has been rated as only partially satisfactory, as the 
project  implementation  has  been  hampered  by  the  following  problems:  insufficient 
cooperation  between  National  Aid  Coordinators'  services;  insufficient  resources  to  manage 
large  grants;  uncertainties  regarding  transition  from  EU  procurement  rules  to  national 
procurement  rules,  problems  with  delegation  of  responsibilities;  disproportionate  burden  in 
terms of documents to be submitted, etc.  

Programme  and  project  monitoring  has  only  been  partially  adequate.  Indicators  defined  at 
programme  level  have  not  in  all  cases  been  adequate  and  consistent  with  those  defined  at 
project level, and a formal monitoring has not been carried out at programme level, but only 
at  project  level.  The  overall  monitoring  system  and  its  reports  have  focused  on  the 
implementation of the programme (input), with limited focus on results/impacts. 

The evaluators recommend an increase of the level of publicity, improvement of  evaluation 
grids;  differentiation  of  the  grants'  implementation  period;  increased  involvement  of  local 
authorities in the programming stage; submission of an annual report of implementation and 
clear definition of territorial criteria.  

Success Stories 

160 

 
 
Social Sector - Grant scheme for Life Skills (RO2007/19343.03.03): Integration of youth 
from minorities and disadvantaged groups into the Romanian society 

The  objective  of  the  grant  scheme  was  to  enable  NGOs  to  provide  appropriate  services  for 
children  and  youth,  especially  minorities  and  disadvantaged  groups,  to  increase  their 
involvement in the society; to reduce the vulnerability of children and youth and to promote 
equal  opportunities  for  education,  professional  orientation  and  social  inclusion.  The  overall 
budget  was  EUR 2.98  million,  all  funded  through  the  Transition  Facility.  The  technical 
assistance budget for the administration of the grants was EUR 0.43 million, managed by the 
Civil  Society  Development  Foundation.  The  scheme  was  launched  on  27  July  2009.  All 
grants had been awarded by 15 December 2009 and implemented by 15 December 2010. 

The use of grant schemes by the Phare instrument was an efficient way to address multiple 
objectives  and  to  make  Phare  funds  available  to  strengthen  the  capacity  of  the  recipient 
organizations such as NGOs as well as micro-enterprises and individual citizens. The scheme 
has influenced and continues to influence government policy in an area of acute social need. 
The  most  visible  aspect  of  the  success  of  the  scheme  is  the  strong  partnership  relationships 
that emerged between the NGO implementers, the schools and local community (commune) 
centres  and  the  teachers,  parents  and  guardians  of  the  children  that  were  reached  by  the 
scheme. This partnership owes much to the leadership and experience of the CSDF and the 
careful  planning  and  preparation  that  was  made  in  advance  of  the  implementation  of  the 
individual projects. 

National  Customs  Authority 
(NCTS) 
(RO2007/19343.05.01):  Development  and  implementation  of  the  NCTS  security  and 
safety aspects and of the NCT5/TIR at the level of NCTS customs offices 

-  New  Computerised  Transit  System 

The project objective was to support the National Customs Authority for the implementation 
of the "Electronic-Customs" strategy of DG TAXUD through implementation of NCTS/TIR 
and  NCTS  systems.  The  project  budget  was  EUR  0.69  million.  The  project  started  in 
November 2008 and was completed in January 2010. The project's results significantly affect 
the  daily  work  of  trade  and  commerce  in  Romania.  The  project  has  both  EU-wide  and 
national strategic importance. 

The contributing  factors  to  the  project success were the well established track record of  the 
beneficiary  in  managing  information  systems  projects  and  the  availability  at  the  NCA  of  a 
competent IT unit to manage the project. 

2.2. 

Implementation of PHARE and the Transition Facility  

i)  PHARE 2005 – finalisation of payments (EU 2 only)  

By  the  end  of  2010  (also  the  end  of  the  disbursement  period),  the  disbursement  rate  by  the 
Bulgarian  authorities  under  PHARE  2005  reached  98.48%.  For  Romania  the  disbursement 
rate was 90.28%. 

ii)  PHARE 2006 – finalisation of payments (EU 2 only)  

For PHARE 2006 the disbursement was 61.86% of the committed amounts as per Financing 
Agreement  in  Bulgaria  and  85.30%  for  Romania  at  the  end  of  2010.  The  low  rate  of 
disbursement for Bulgaria is the consequence of the withdrawal of EDIS accreditation for two 
Implementing Agencies, which affected the level of contracting of 2006 Phare appropriations. 

161 

 
 
iii) Transition facility 2005 (EU 10 only) 

The disbursement rates for the 10 Member States under Transition Facility 2005 by the end of 
2010 are indicated in the table below: 

In million EUR 

Member State 

Cyprus 
Czech Republic 
Estonia 
Hungary 
Lithuania 
Latvia 
Malta 
Poland 
Slovenia 
Slovakia 

FM 
committed 
6.29
10.21
4.48
9.55
8.47
8.07
5.15
35.15
4.08
8.86

Contracted 

Paid  % of disbursed of 

6.17
9.72
4.21
9.20
7.79
7.27
4.98
32.07
3.81
8.24

6.17
9.72
4.21
9.20
7.79
7.27
4.98
32.07
3.81
8.24

FM committed 
98.06%
95.15%
94.03%
96.30%
92.00%
90.06%
96.62%
91.23%
93.48%
92.94%

*Information from Global Perseus 

iv) Transition facility 2006 (EU 10 only) 

The disbursement rates for the 10 Member States under Transition Facility 2006 by the end of 
2010 are indicated in the table below: 

In million EUR 

Member 
state 

FM 
committed 

Contracted 

Paid 

Cyprus 
Czech 
Republic 
Estonia 
Hungary 
Lithuania 
Latvia 
Malta 
Poland 
Slovenia 
Slovakia 

2.81 

6.45 
3.49 
5.41 
3.98 
4.00 
3.11 
16.93 
2.61 
4.65 

2.81

6.15
3.21
5.41
3.58
3.75
2.97
15.57
2.34
4.57

2.81

6.15
3.21
5.28
3.58
3.75
2.97
15.57
2.34
4.57

% of disbursed 
of FM committed 
99.78%

95.41%
91.97%
97.68%
89.97%
93.82%
95.54%
91.93%
89.43%
98.17%

*Information from Global Perseus 

v)  Transition Facility 2007 (EU 2 only) 

The implementation of Transition Facility has been completed successfully by 15 December 
2010 and the envisaged project results have been broadly achieved.  

162 

 
 
 
 
Bulgaria 

The  Transition  Facility  in  Bulgaria  had  a  budget  amounting  to  EUR  31.49  million,  out  of 
which only 68.8% have been contracted by the contracting deadline 15 December 2009. The 
low contracting rate is due to the withdrawn accreditation of the CFCU resulting in failure to 
contract  13  technical  assistance  contracts,  9  supplies  and  2  Grant  Schemes.  Thus,  only  22 
twinning  and  31  twinning  light  contracts  have  been  contracted  and  implemented  under  the 
Transition  Facility  programme  in  the  sectors  justice  and  home  affairs,  environment, 
agriculture and public finance.   

The  disbursed  funds  under  TF  amounted  to  EUR  17.33  million  by  the  end  of  2010 
representing 80 % of the EU contracted amount. The disbursement deadline of the programme 
expires on 15 December 2011. 

Romania 

Out  of  a  total  allocation  of  EUR  46.5  million  only  EUR  31.6  million  or  67.92%  have  been 
contracted  by  the  deadline  (15  December  2009).  This  is  due  mainly  to  late  contracting, 
difficulties  in  finding  twinning  partners  (with  no  offers  received  after  fiches  had  been 
circulated up to three times in some cases) and/or poor quality of project proposals (especially 
under the Unallocated Envelope component). By the end of 2010, some EUR 26.25 million or 
83.11% of the  total contracted have  been  disbursed. The disbursement period expires on 15 
December 2011. 

2.3 Institution Building highlights  

In the pre-accession and post-accession period the national administrations successfully used 
the twinning instrument under Phare and Transition Facility programmes to further strengthen 
their capacities to adopt and enforce EU legislation. The twinning and twinning light projects 
implemented under the Transition Facility covered a significant number of priority areas such 
as  justice  and  home  affairs,  agriculture,  environment,  public  finance  and  economic 
development.  The  successful  completion  of  the  twinning  and  twinning  light  contracts  under 
TF  contributed  to  the  establishment  of  sustainable  partnerships  with  counterparts  from 
Member  States  and  supported  the  national  institutions  in  fulfilling  their  post-accession 
obligations.  Twinning  projects  proved  to  be  particularly  effective  in  staff  trainings, 
development  of  procedures  and  documents,  establishment  and/or  development  of 
administrative structures and legislative harmonization. 

2.4 Joint Monitoring Committees / Sector Monitoring Sub-Committees  

EU 10  

For  the  10  new  Member  States  the  final  Joint  Monitoring  Committee  meetings  were 
conducted  under  written  procedure  in  January/February  2010  (except  for  Lithuania  and 
Latvia, which had the final JMC meetings at the end of 2009). The correspondence related to 
the  JMC  addressed  the  outstanding  horizontal  and  project  related  issues  under  Transition 
Facility  programmes.  The  Implementation  Status  Reports  were  of  good  quality,  including 
sufficiently  detailed  information  regarding  projects  implementation  and  the  achievement  of 
their intended results. 

In  2010  the  JMC  continued  to  supervise  progress  of  PHARE  and  TF  assistance  in  Bulgaria 
and Romania and provided recommendations on the management of the programmes. 

163 

 
 
Bulgaria 

Two JMC took place, in March (meeting) and July (via written procedure), addressing issues 
such as further improvement of project management and, mainly, monitoring and follow-up 
of the irregularities as well as reporting to the Commission. 

Romania 

Following the JMC meeting in February 2010, it was agreed to continue the JMC by written 
procedure  with  the  next  exercise  taking  place  in  July.  Main  issues  for  follow-up  were: 
submission  of  final  declarations,  irregularities  (reported  by  national  authorities63)  and  the 
findings  of  an  audit  on  twinning  projects  under the Extended  Decentralized Implementation 
System (EDIS) sub-system. 

By the end of 2010, 493 suspected and reported irregularities64 were open in Bulgaria (233) 
and Romania (260), of which most are likely to be subject to recovery. These figures include 
all  cases  reported  by  the  national  authorities  as  well  as  irregularities  identified  through  the 
DG’s internal and external on the spot monitoring, press news, audit findings, etc. 

Out  of  the  total  above,  124  new  irregularities  reported  in  the  period  (for  a  value  of  EUR 
3.5 million) have been reported by the Bulgarian authorities. This can be seen as an indication 
that  the  implementation  of  the  action  plans  agreed  with  the  Bulgarian  authorities  as  a 
condition for lifting the suspension of the payments in 2009 has led to more accurate reporting 
of  irregularities.  Nevertheless,  the  high  value  of  new  irregularities  reported  (roughly  5%  of 
financial  agreements  running  in  Bulgaria)  confirms  that  the  DG’s  reservations  on  the 
management of EU funds under EDIS raised in 2007 were justified.  

Romania also shows a high number of new irregularities (35 by number, for a value of EUR 
4.9  million).  However,  this  represents  less  than  1%  of  the  financing  memoranda  running  in 
the  period.  No  major  frauds  have  been  reported  to  the  Commission;  most  irregularities 
concern  small  contracts  and  incorrect  expenditure,  especially  regarding  grants  at  the  local 
level. The Romanian authorities, in particular the Anti-Fraud Service (DNA), continue to be 
proactive in tackling all irregularities regardless of the amount involved. 

Concerning  Bulgaria,  there  were  16  OLAF  cases  in  various  stages  of  investigation  which 
compares to 30 cases in the previous year. In Romania there were 47 OLAF cases in various 
stages of investigation as opposed to 64 cases in the previous year. 

63  
64  

 Source: AAR2010 
Which may concern contracts from any programme year 

164 

 
 
                                                 
PART III - FINANCIAL DATA 

1. 

2010 ALLOCATIONS BY BENEFICIARY AND BY COMPONENT (IN MILLION EUR) 

IPA BENEFICIARIES/ 
COMPONENTS 

Albania  
Bosnia and Herzegovina  
Croatia  
former Yugoslav 
Republic of Macedonia  
Iceland 
Kosovo 
Montenegro  
Serbia  
Turkey  
Multi-beneficiary  
TOTAL 

I 

84.20  
100.69  
39.48  

II 
10.48  
4.70  
15.60  

III 

IV 

V 

TOTAL 

56.80  

15.70  

26.00  

94.68  
105.39  
153.58  

36.91  

4.47  

29.40  

8.40  

12.50  

91.68  

0.00
66.10  
29.84  
186.80  
217.81  
143.04*  
904.87

1.20  
4.84  
12.20  
3.09  

238.10  

63.40  

131.30  

0.00
67.30  
34.68  
199.00  
653.70  
143.04  

56.58

324.30

87.50

169.80 

1543.08

*  This  figure  excludes  amounts  for  the  Tempus  and  Nuclear  Safety  Programmes  already  included  under  the 
separate national allocations 

2. 

Breakdown of IPA commitments in 2010 in million EUR 

2.1. 

Component I – Transition Assistance and Institution Building Programmes 

COUNTRY ALLOCATIONS  (IN MILLION EUR) 

COUNTRY 

Albania 
Bosnia and Herzegovina 
Croatia 
former Yugoslav Republic of 
Macedonia 
Iceland 
Kosovo 
Montenegro 
Serbia 
Turkey 
TOTAL 

ANNUAL 
PROGRAMME 
83.20
98.29
38.62
36.91

0.00
63.90
28.64
174.80
217.81
742.17

NUCLEAR 
SAFETY 

TEMPUS 

TOTAL 

-
-
0.86
-

-
-
-
5.00
-
5.86

1.00 
2.40 
- 
- 

0.00 
2.20 
1.20 
7.00 
- 
13.80 

84.20
100.69
39.48
36.91

0.00
66.10
29.84
186.80
217.81
761.83

165 

 
 
 
 
 
 
  
 
 
  
 
 
 
  
 
 
  
 
 
  
 
 
 
  
 
 
 
 
 
 
MULTI-BENEFICIARY ALLOCATIONS  (IN MILLION EUR) 

Programme 
Multi-beneficiary Programme I  
Multi-beneficiary Programme II  
Amendments to Multi-beneficiary Programme I and II 
Support to the operational budget of the Office of the High Representative (OHR) in 
Bosnia and Herzegovina 
Support to the Interim Civilian Office in Kosovo 
Contribution to the Energy Community budget 
TAIEX 
Information and Communication 
Monitoring, Evaluation and Audit 
TOTAL  
*Excluding Nuclear Safety, Tempus and ERDF, which are presented under the country allocations table 

Total*
81.02
6.48
6.50
5.30

7.00
3.19
17.00
10.00
4.00
140.49

2.2. 

Component II – Cross Border Cooperation Programmes  

CROSS COUNTRY COOPERATION PROGRAMMES WITH MEMBER STATES (IN MILLION EUR) 

COUNTRY 

Bulgaria  Greece  Hungary  Romania  Slovenia 

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

1.66

1.37 

1.50

2.67

3.27 

7.46

2.40 
2.09 
5.86 

3.16

2.50

5.17

3.0

3.0

1.38
0.60

3.27 

17.95

Adriatic 
Programme 
6.01
2.50

TOTAL

7.67
2.50

13.40
2.87

0
1.38
8.50
2.09
38.41

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

Country 

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

1.00 

0.60 
0.60 

a
i
n
a
b
l
A

Bosnia and 
Herzegovina 

1.00 

former 
Yugoslav 
Republic  
of 
Macedonia
0.85

a
i
t
a
o
r
C

1.00 

Montenegro

o
v
o
s
o
K

  ERDF 
a
i
b
r
e
S

SE 
Europe 
/ Med 

ENPI 
Black 
Sea 

0.85

0.60

0.51 

0.50

0.40

0.70 

0.80 

0.6

0.60

0.60 
1.00 

0.50 
1.00 

0.60

0.60 

1.16 
1.10 

2.30 

2.60 

2.50 

1.45

2.95

1.20 1.50 

2.28 

1.00
1.00

166 

Total

2.81

2.20

2.20

1.60

1.20
3.46
3.70
1.00
17.78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.3. 

Component III – Regional Development Programmes 

COUNTRY 

Croatia 
former 
Yugoslav 
Republic of 
Macedonia 
Turkey 
TOTAL 

REGIONAL 
COMPETITIVENESS 
14.20 

- 

TRANSPORT ENVIRONMENT

21.30
19.61

21.30
8.51

TECHNICAL 
ASSISTANCE 
- 

1.26 

TOTAL 

56.80
29.40

71.43 
86.63 

71.43
112.34

95.24
125.05

- 

1.26 

238.10
324.3

2.4. 

Component IV – Human Resources Development Programmes 

COUNTRY 

REDUCING 
UNEMPLOYMENT 

SOCIAL 
INCLUSION 

Croatia 
former 
Yugoslav 
Republic of 
Macedonia 
Turkey 
TOTAL 

3.93 

3.36 

34.00 
41.29 

4.79

2.10

8.19
15.08

EDUCATION 
AND 
TRAINING / 
HUMAN 
CAPITAL 
INVESTMENT 
5.48

2.44

12.75
20.67

TOTAL 

TECHNICAL 
ASSISTANCE / 
ADMINISTRATIVE 
CAPACITY 

1.50 

15.70

0.50 

8.40

8.46 
10.46 

63.40
87.50

2.5. 

Component V – Rural Development Programmes 

COUNTRY 

Croatia 
former 
Yugoslav 
Republic of 
Macedonia 
Turkey 
TOTAL 

IMPROVING 
MARKET 
EFFICIENCY 
AND 
UPGRADING 
TO EU 
STANDARDS 

PREPARATORY 
ACTIONS FOR 
AGRI- 
ENVIRONMENTAL 
MEASURES AND 
LEADER 

DEVELOPMENT 
OF RURAL 
ECONOMY 

TECHNICAL 
ASSISTANCE 

TOTAL 

7.80

2.10

28.89
38.79

0.52 

26.00

0.45 

12.50

2.63 
3. 60 

131.30
169.80

16.38 

9.05 

91.25 
116.68 

1.30

0.90

8.53
10.73

167 

 
 
 
 
 
 
 
 
 
3. 

Global overview of IPA 2007-2010 amounts committed, contracted and paid as 
at 31 December 2010 per beneficiary, in million EUR  

COMPONENT I (ANNUAL PROGRAMMES) 

IPA 
BENEFICIARIES 

Albania 

Bosnia and 
Herzegovina 
Croatia 

former Yugoslav 
Republic of 
Macedonia 
Kosovo 

Montenegro 

Serbia 

Turkey 

Multi-beneficiary 

COMPONENT II  

COMMITTED 

CONTRACTED  %CONTRACTED 

PAID 

%PAID 

266.37 

295.95 

167.50 

145.11 

412.20 

107.74 

678.84 

934.63 

760.58 

104.97

125.95

55.39

49.84

251.26

63.83

350.43

271.00

538.13

39.41%

52.07 

19.55%

42.65%

33.07%

66.69 

33.16 

22.59%

19.80%

34.35%

60.96%

59.24%

51.62%

28.99%

70.75%

24.99 

128.77 

34.70 

225.76 

178.05 

17.22%

31.24%

32.21%

33.26%

19.05%

346.01 

45.49%

IPA BENEFICIARIES 

COMMITTED 

PAID 

%PAID 

Albania 

Bosnia and Herzegovina 

Croatia 

former Yugoslav 
Republic of Macedonia 

Kosovo 

Montenegro 

Serbia 

Turkey 

COMPONENT III  

14.60

18.82

55.92

17.09

-

17.91

43.96

11.11

1.82

1.59

9.72

1.87

-

2.13

6.24

2.55

5.19%

8.45%

17.38%

10.94%

-

11.89%

14.19%

22.95%

IPA BENEFICIARIES 

COMMITTED 

PAID 

%PAID 

Croatia 

former Yugoslav Republic of 
Macedonia 
Turkey 

199.40

69.90

762.10

47.10 

12.15 

213.32 

23.62%

17.38%

27.99%

168 

 
 
 
 
 
 
 
Component IV  

IPA BENEFICIARIES 

COMMITTED 

PAID 

%PAID 

Croatia 

former Yugoslav Republic of 
Macedonia 

Turkey 

Component V  

53.90

24.70

222.10

15.00 

4.89 

48.08 

27.82%

19.80%

21.65%

IPA beneficiaries 

Committed 

Paid 

%Paid 

102.90

31.50

290.50

11.53 

2.85 

0.00 

11.21%

9.05%

0.00%

PHARE,  CARDS,  Turkey  Pre-Accession  and  Transition  Facility  -  Financial 
data at 31st December 2010 

PHARE,  Turkey  Pre-Accession  and  Transition  Facility  funds  implementation  by 
country at the end of 2010 

Total commitments, contracts and payments, in million EUR65 

Commitments  

Contracts  

Payments  

2,359.63
917.24
144.60
338.01
230.49
34.49
346.84
1,480.06
423.61
810.27
57.11
3,357.05
3,995.99
3,670.00
717.59
360.33
1,861.95
21,105.26

1,862.27  
 835.47 
 118.32 
 297.38 
231.82 
28.86 
 311.62 
 1,363.33 
 382.31 
 752.20 
 48.61 
 2,853.73 
 3,617.83 
 3,200.00 
 653.12 
 333.26 
 1,457.76 
 18,347.21 

 1,852.42 
   835.44
  111.70
   181.32
228.88
28.86
 311.51
 1,363.40
 382.28
 751.88
 48.61
 2,747.90
 3.617.50
 3,100.00
 652.88
 332.75
 1,423.00
 17,970.15

Including assistance to the Turkish Cypriot community 

65  

Instances of contracted amounts being slightly above allocations are due to interest accruing assigned to 
the programmes. Instances of decreasing contracted and paid amounts when compared to last year are 
explained by closures and de-commitments by the local authorities and by the Commission. Payments 
can also decrease due to some local contracts being excluded from the final declarations. 

169 

Croatia 

former Yugoslav Republic of 
Macedonia 

Turkey 

4. 

4.1. 

Partner Country 
Bulgaria 
Czech republic 
Croatia 
Cyprus(*) 
Czechoslovakia 
East Germany 
Estonia 
Hungary 
Latvia 
Lithuania 
Malta 
Multi-country programmes 
Poland 
Romania 
Slovakia 
Slovenia 
Turkey 
Total 
(*)  

 
 
 
 
                                                 
4.2. 

CARDS funds implementation by country at the end of 2010 

Total commitments, contracts and payments, in million EUR66 

Partner Country 
Albania 
Bosnia & Herzegovina 
Croatia 
Former Yugoslav Republic of Macedonia 
Kosovo 
Montenegro 
Serbia68 
Regional Programme69 
Total 

Commitments   Contracts67   Payments  
 253.53
 425.77
 254.80
 294.36
 711.14
 125.17
 1,290.94
 549.81
3905.52

 279.01 
 428.47 
 254.86 
 295.40 
 712.45  
 125.21 
 1,311.90 
 558.46 
3 965.75 

310.03
467.14
276.84
307.87
727.18
127.40
1 396.63
583.36
4 196.45

66  

67  

68 

69 

The difference with the figures available in Part I (Country Section) is explained by the fact that those 
figures  include  only  Annual  Action  Programmes  from  2001,  while  not  including  other  programmes 
managed centrally, such as Customs and Taxation. Amounts allocated to support the running costs of 
the  European  Agency  for  Reconstruction  and of  the  Office  of  the High  Representative  in  Bosnia  and 
Herzegovina  may  also  be  excluded  from  tables  in  Part  I,  as  well  as  amounts  allocated  to  support  the 
operating costs of the EU pillar of UNMIK in Kosovo  
Increased contracting for CARDS in 2009 is explained by the use of N+3 as contracting deadline (“N” 
being the commitment year)  
Includes  Montenegro  in  2000-2001;  includes  assistance  from  the  Regional  Programme  for  Integrated 
Border  Management  destined  for  the  whole  of  FRY/Serbia  and  Montenegro  for  2002-2003  (in  2004, 
this is included in the regional programme); includes EUR 8 million commitments for the Serbia and 
Montenegro State Union (2005) 
Includes EUR 215.8 million commitments for interim civilian administrations 

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